China’s largest trade fair, held twice a year, opened on Wednesday in the southern city of Guangzhou, where more than 32,000 exhibitors are showcasing products over an area larger than 200 football fields.

Held from April 15 to May 5 in three phases, the fair provides a barometer of trade in China.

It is being held after data showed China’s export engine slowed sharply in March as war in the Middle East triggered shocks to energy and transportation, hurting global demand and exposing the risks in Beijing’s strategy of leaning on manufacturing to support growth.

The conflict has disrupted global growth, leaving China vulnerable as it has relied on foreign demand to offset a prolonged inability to revive consumption at home.

To accommodate buyers facing travel constraints, the fair is holding online events and livestreaming, organisers said.

The expo’s first phase includes electronics, manufacturing and new energy vehicles. The second phase offers housewares, building materials and furniture while the third phase features toys, fashion, home textiles and stationery.

The previous fair drew more than 310,000 overseas buyers from 223 countries and regions, according to its website.

From DFS to Avolta, duty-free stores selling premium perfumes and spirits to big spenders are feeling the pinch as conflict in the Middle East shuts airports and curbs travel to the region, a setback likely to become more acute as the war drags on.

The disruption now in its sixth week exposes a vulnerability for luxury and beauty groups that have relied on airport shopping and Gulf hubs among their highest-margin channels – to offset weaker demand in China and Europe, making even short-term airport closure a potential drag on quarterly profit.

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Analysts have said a prolonged slump in Middle East air traffic could compound pressure on a travel-retail industry still recovering from the COVID-19 pandemic, squeezing underperforming businesses such as LVMH’s DFS and weighing on prestige beauty and luxury firms including Estee Lauder, Puig and L’Oreal.

International flights to and from the Middle East plummeted in the first half of March. While some airlines in the UAE are slowly restarting, flights remain well below normal levels.

Flight cancellations from the Middle East, excluding Turkey, decreased from their peak of 65 per cent on March 3 to 13 per cent on March 27, showed data from Cirium, but the number of flights scheduled has also fallen.

DFS “is costing two (percentage) points of growth” for its selective retailing division, which includes beauty brand Sephora, LVMH CFO Cecile Cabanis told analysts this week.

The conflict shaved at least 1 per cent off group ​sales in the latest quarter due to lower spending in the Gulf region, LVMH said.

“What we see today is still that demand is very much down,” Cabanis said.

Drone strikes shutter gulf hubs

Companies that operate in the $74bn travel-retail industry have been shifting inventories and temporarily closing airport stores in the region. Normalcy for luxury airport shops may take time, analysts said.

Dubai International Airport, whose retail outlets include L’Oreal’s Aesop, Kering’s Gucci and Estee’s Jo Malone, is operating a reduced number of terminals after a drone attack forced the hub to temporarily close. Kuwait International Airport has been shut due to repeated drone strikes, halting sales for airport outlets owned by Avolta and Boots.

Avolta, which earns 3 per cent of revenue from the Middle East, is moving inventory from locations with slower sales to those with more foot traffic, CFO Yves Gerster told Reuters. Still, partly shuttered airports in some instances were leading to strong sales of food and other items for stranded travelers, for instance at Dubai airport, Gerster said.

Kering CFO Armelle Poulou told Reuters after the company’s first-quarter earnings report that travel retail was slightly down compared with last year, and that “performance with local customers has been more resilient than tourism-related demand.”

The conflict shaved 3 per cent off overall Kering sales in March, or 1 per cent for the quarter, with a similar effect at Gucci in particular, Poulou said.

Investors will keenly watch out for Estee’s quarterly results on May 1, as the firm explores a $40bn acquisition of Spanish competitor Puig, which derives a tenth of sales from travel retail. That makes it one of the more exposed beauty companies to swings in airport shopping and international travel, analysts said.

L’Oreal, whose travel-retail business in Asia accounted for less than 4 per cent of the company’s $44bn in 2025 sales, is scheduled to report quarterly results on April 22. The company does not provide total travel-retail sales, although analysts said Asia accounts for the largest share.

Estee Lauder and L’Oreal declined to comment. Puig was not immediately available for comment.

The US said on Wednesday its military had completely halted trade going in and out of Iran by sea, even though President Donald Trump said talks with Tehran on ending the war could resume this week.

Trump said negotiations between US and Iranian officials could resume in Pakistan in the next two days and Vice President JD Vance, who led weekend talks that ended without a breakthrough, said he felt positive about where things stood.

“I think you’re going to be watching an amazing two days ahead,” Trump told ABC News reporter Jonathan Karl, adding he did not think it would be necessary to extend a two-week ceasefire that ends on April 21.

“It could end either way, but I think a deal is preferable because then they can rebuild,” Trump said, according to a post by Karl on X.

“They really do have a different regime now. No matter what, we took out the radicals.”

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Officials from Pakistan, Iran and the Gulf also said negotiating teams from the US and Iran could return to Pakistan later this week, although one senior Iranian source said no date had been set.

Despite the optimistic note, more vessels were being turned back under the US blockade on Iranian ports, including a US-sanctioned and Chinese-owned tanker Rich Starry that was making its way back to the Strait of Hormuz on Wednesday after exiting the Persian Gulf.

Admiral Brad Cooper, the head of the US Central Command, said American forces had completely halted economic trade going in and out of Iran by sea, which he said fuels 90 per cent of Iran’s economy.

“In less than 36 hours since the blockade was implemented, US forces have completely halted economic trade going into and out of Iran by sea,” Cooper said in a post on X.

Earlier the US military said it had intercepted eight Iran-linked oil tankers since the start of the blockade on Monday, according to the Wall Street Journal.

Return to Islamabad

Trump, speaking to the New York Post on Tuesday, said his negotiators are likely to be back, thanks largely to the “great job” Pakistan’s army chief, Field Marshal Asim Munir, was doing to moderate the talks.

Later on Tuesday, at an event in Georgia, US Vice President JD Vance said Trump wanted to make a “grand bargain” with Iran but there was a lot of mistrust between the two countries.

“You are not going to solve that problem overnight,” he said.

The signs of diplomatic engagement to end the conflict that began on February 28 helped calm oil markets, pressing benchmark prices down for a second day on Wednesday. Asian stocks rose while the safe-haven dollar stabilised after falling for a seventh straight session overnight.

The war has prompted Iran to effectively shut the Strait of Hormuz, a crucial global waterway for crude and gas transport and cut shipments from the Gulf to global buyers, particularly in Asia and Europe.

About 5,000 people have died in the hostilities, including about 3,000 in Iran and 2,000 in Lebanon.

Sticking points

Iran’s nuclear ambitions were a key sticking point at the weekend talks. The US had proposed a 20-year suspension of all nuclear activity by Iran, while Tehran had suggested a halt of three to five years, according to people familiar with the proposals.

Speaking in Seoul, the head of the International Atomic Energy Agency (IAEA), Rafael Grossi, said the length of any moratorium on Iranian uranium enrichment was a political decision and it was possible Tehran might accept a compromise as a confidence-building act.

The US has also pressed for any enriched nuclear material to be removed from Iran, while Tehran has demanded that international sanctions against it be removed.

One source involved in the negotiations in Pakistan said back-channel talks since the weekend had produced progress in closing that gap, bringing the two sides closer to a deal that could be put forward at a new round of talks.

However, in a major complication for peace prospects, Israel has continued to attack Lebanon as it targets Hezbollah, an Iran-backed militant group. Israel and the U.S. say that campaign is not covered by the ceasefire, while Iran insists it is.

On Tuesday, the UK, Canada, Japan and seven other countries condemned the killings of UN peacekeepers in Lebanon and called for “an urgent end to hostilities”.

The statement comes after the deaths of three Indonesian peacekeepers last month. The countries welcomed the ceasefire agreed between the US, Israel and Iran.

Sharjah will begin a phased return to in-person early childhood education from April 16, as authorities move to restore on-site learning following weeks of disruption.

The Sharjah Private Education Authority (SPEA) said late on Tuesday that nurseries located in government facilities and commercial buildings will reopen to children from Thursday, subject to the completion of mandatory staff training on emergency and crisis protocols.

Administrative and teaching staff across private schools and nurseries in Sharjah have already been instructed to return to campuses from Wednesday, April 15, according to reports. The authority said the early return is aimed at ensuring institutions are fully prepared, including the rollout of training programmes designed to strengthen emergency response capabilities.

“This is subject to the completion of training for nursery administrative and teaching staff on emergency and crisis protocols, to ensure the children return to a safe and supportive environment,” SPEA said.

The decision follows guidance from the Education, Human Development and Community Development Council, which earlier confirmed that nurseries across the UAE would reopen in phases.

Sharjah’s move aligns with similar steps in Dubai, where the Knowledge and Human Development Authority (KHDA) has also confirmed a gradual return for early childhood centres from April 16.

Qatar Airways has announced a new travel flexibility initiative aimed at giving passengers greater convenience and reassurance when planning their journeys.

The airline has introduced complimentary changes until October 31, 2026, offering customers more destinations and more flexibility across its network.

Customers with a confirmed booking on Qatar Airways operated flights for travel until June 15, 2026 are eligible for complimentary date changes up to October 31, 2026, an Instagram story on the entity’s Instagram story. The policy is designed to support travellers whose plans may shift due to changing circumstances or disruptions.

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Importantly, if a rebooked flight is impacted again, passengers will remain eligible for further fee-free changes until October 31, 2026. (*subject to availability and fare seasonality).

The update forms part of the airline’s broader effort to provide more adaptable booking conditions and improve customer confidence in travel planning.

Saudia and Saudi Arabia Railways launch integrated air-rail ticketing

Saudia, the national flag carrier of Saudi Arabia, has signed a major agreement with Saudi Arabia Railways (SAR) to integrate their digital systems, allowing passengers to issue boarding passes for both air and rail journeys in a single transaction. The agreement was formalised during the Umrah and Ziyarah Forum 2026 in Madinah.

The agreement was signed by Essam Akhonbay, Vice President of Marketing at Saudia, and Engr. Ibrahim AlNoaman, Commercial Director of the Haramain High-Speed Railway (HHR) and Masar Makkah Master Plan (MMMP). The collaboration is aimed at strengthening connectivity between air and rail services and simplifying travel procedures for guests.

Through this integration, both organisations will deliver enhanced digital services designed to reduce travel time and effort while improving the overall passenger experience. The initiative also builds on previous joint efforts, including special fares for train travel to Makkah and Madinah as part of an expanding transport ecosystem.

Akhonbay said: “This agreement reflects Saudia’s commitment to advancing a more seamless and integrated travel experience through digital innovation. Our digital infrastructure is designed to support the continuous introduction of new services with high efficiency and reliability.”

Saudia continues to invest in improving the passenger journey through advanced digital platforms powered by artificial intelligence, enabling more personalised travel experiences. These developments extend to ground and inflight services, including upgraded entertainment systems and high-speed connectivity to ensure a smoother journey.

The Haramain High-Speed Railway, one of the fastest rail systems in the world, operates at speeds of up to 300 km/h and connects Makkah and Madinah via five main stations, including King Abdulaziz International Airport station, one of the largest airport-linked railway stations globally. The integration is expected to further strengthen mobility and streamline multi-modal transport across the Kingdom.

Oman Air operations continue amid regional airspace disruptions

Oman Air has confirmed that its flights are continuing to operate as normal, with additional services being deployed across its network. However, the airline noted that ongoing regional airspace closures have led to temporary disruptions on selected routes.

As a result, flights to and from Dubai (DXB), Bahrain (BAH), Doha (DOH), Kuwait (KWI), Copenhagen (CPH), Baghdad (BGW), and Khasab (KHS) are cancelled until 30 April 2026.

Guests affected by the changes are advised to manage their bookings via the airline’s website or mobile application.

The airline added: “We sincerely apologise for any inconvenience and thank you for your understanding,” a notice on the airline’s website said.