Southwest Airlines plans to operate only one-third of its regular schedule this week. The airline canceled more than 60% of its scheduled flights since Thursday due to the winter storm. Southwest has had the highest number of cancelations among major U.S. airlines. More: - According to FlightAware, Southwest has canceled about 8,000 flights since Thursday.
- During an interview on Monday evening, CEO Bob Jordan said this was the largest-scale event he had ever witnessed at the helm of the airline.
- The Transportation Department called Southwest’s rate of cancellations “disproportionate and unacceptable.”
- The regulator said it would examine if Southwest’s cancellations were controllable and if the airline is complying with its customer service plan.
- Southwest’s cancellations were a combination of multiple factors, including the location of the storm, the airline’s flight routes, and the crew-scheduling system.
- Southwest shares fell more than 6% during afternoon trading on Tuesday.
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In an interview with the Financial Times, Mario Greco, CEO of insurer Zurich, warned that soon coverage for cyber-attacks and hacks would no longer exist. Following recent attacks that have disrupted hospitals and shut down pipelines, Greco warns that such attacks will soon become uninsurable. More: - Significant cyber losses in recent years have prompted many insurers to limit their exposure.
- Many insurers have raised prices to mitigate losses, and some have updated their policies so clients retain a larger share of the losses.
- In 2019, Zurich denied a $100M claim from food company Mondelez from the NotPetya cyber-attack, citing that its policy excludes “warlike action.”
- Both firms later settled.
- The U.K.-based insurer Lloyd’s of London recently defended its policy update, which excludes state-backed attacks.
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The Kremlin has banned the sale of Russian oil and oil products to countries that adhere to the price cap. The export restriction will begin on Feb. 1 and run through at least July 2023. The presidential decree noted that the ban is in effect at all transaction stages up to the final buyer. More: - Earlier this month, the EU and the U.K. banned the import of seaborne Russian oil.
- The Group of Seven nations (G7), which includes Canada, France, Germany, Italy, Japan, the U.K., and the U.S., placed a $60 price ceiling on Russian oil.
- The price cap bars Western companies from insuring, financing, or shipping Russian crude oil above the $60 a barrel set price.
- Russian oil is currently trading below the $ 60-a-barrel price cap, meaning most transactions could proceed regardless of the announced restriction.
- According to sources, Russia plans to observe the developments in the global oil market in Q1 2023 to see the impact of the price cap before deciding whether to take any further retaliatory measures.
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Japanese regulators have asked insurers to continue providing marine war insurance for liquefied natural gas (LNG) shippers in Russian waters. The move comes after insurers – Tokio Marine & Nichido Fire Insurance, Sompo Japan Insurance, and Mitsui Sumitomo Insurance – announced on Friday that they would stop offering marine war insurance starting Jan. 1. More: - The insurance covers damage to ships stemming from war while in Russian waters.
- Japan’s Financial Services Agency (FSA) and Agency for Natural Resources and Energy (ANRE) made the request in a joint letter to the nation’s general insurance association.
- The Japanese government aims to continue importing LNG from the Sakhalin-2 project in Russia.
- Japan considers the transport of LNG from Sakhalin-2 critical to its energy security.
- Sakhalin-2 accounts for about 9% of Japan’s LNG imports.
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Samsung plans to expand its P3 chip factory in Pyeongtaek, South Korea. The tech giant plans to add 12-inch wafer capacity for DRAM memory chips and additional capacity for 4-nanometre chips. P3 is Samsung's largest chip manufacturing facility. More: - Samsung also plans to add at least 10 extreme ultraviolet machines at P3 in 2023.
- The expansion moves are in contrast to memory chip rival Micron Technology's plans to cut down its investments.
- Micron plans to lower its investments in fiscal 2023 to between $7B and $7.5B from $12B invested in fiscal 2022.
- Micron also plans to make more cuts in fiscal 2024.
- In October, Taiwan Semiconductor Manufacturing Company (TSMC) cut its 2022 annual investment budget by about 10%.
- The company voiced concerns about future chip demand.
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Chinese EV maker Nio has lowered its delivery guidance for Q4 citing COVID-19-related supply chain disruptions. The company now expects to deliver between 38,500 to 39,500 vehicles, down from 43,000 to 48,000 previously stated. More: - Nio said COVID-19 outbreaks in major Chinese cities slowed operations in December.
- Many customers faced delivery delays and registration issues.
- On Christmas Eve, Nio unveiled two new electric SUV models, the EC7 and the ES8.
- The company expects to start shipping the new models in May and June 2023.
- Nio's ADRs fell more than 7% during afternoon trading on Tuesday.
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- Taiwan plans to extend its mandatory military service for male citizens from four months to one full year starting in 2024. The move comes amid growing concerns about a Chinese attack. Taiwanese President Tsai Ing-wen said the decision to extend the service was extremely difficult, noting that peace depends on national defense, and national security depends on the entire population.
- U.S. federal prosecutors are investigating the disappearance of more than $370M from FTX hours after the crypto exchange filed for bankruptcy. According to sources, the DOJ's criminal probe into the stolen assets is separate from the fraud case against FTX co-founder Sam Bankman-Fried.
- Adam Aron, CEO of AMC Entertainment Holdings, has asked the company's board to freeze his compensation next year due to a sharp decline in the company's shares. In a series of tweets, Aron said he didn't want more compensation when the company's shareholders were hurting.
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 |  | Vanessa Omeokachie is a writer for Inside.com; she writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring. Connect with her on Twitter @VanessaOmeo or on LinkedIn. |   | | Editor | Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords. | |
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