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Aircraft lessor AerCap raises profit guidance on record asset sales
AerCap, world's biggest aircraft lessor, increased its earnings guidance for the full year on Wednesday, after recording record gains in the third quarter from aircraft sales amid continued shortages of jets. The Dublin-based firm's revenue and adjusted earnings per share (EPS) also exceeded analyst expectations. This, the company said, is indicative of a continuing favourable leasing and sales environment. AerCap anticipates a full-year adjusted earning per share (EPS), of around $13,70. This includes gains from the sale of aircrafts, engines, and helicopters during the first nine months, but not any additional gains that may occur in the fourth quarter. It forecast adjusted EPS at the end June of $11.60 before selling 32 assets for $1.5 Billion, which resulted in gains of $332 Million, its highest quarterly gain ever. This compares to $102 million in 2024 for the same time period, which was based on 22 assets that were sold for $479 millions. AerCap increased its portfolio, which includes aircraft, helicopters, engines, and managed assets, to 3,536 by the end of September, up from just under 3,500 a year earlier. (Reporting and editing by David Holmes; Padraic Holpin)
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Boeing suffers a near $5 billion loss on the 777X program
Boeing reported on Wednesday a charge of almost $5 billion for delays in the 777X jet programme, but its loss quarter was narrowed due to improved production and delivery of commercial aircraft. Despite making progress with the 737 MAX program, the planemaker is still facing setbacks in its 777X project. The company announced on Wednesday that the 777X's first delivery has been delayed to 2027. This is a further delay from the original 2026 launch date. When the program began in 2013, it was initially planned that the aircraft would be delivered in 2020. Last month, Kelly Ortberg, the CEO of the company, said that the jet certification was behind schedule and a "mountain" of work needed to be completed. However, he said that no new technical issues had been detected. Boeing has taken charges totaling $15 billion for the 777X project, including charges announced on Wednesday. Boeing has increased its monthly production in 2025 after years of struggling with quality issues and delays on the flagship 737 MAX. The U.S. Federal Aviation Administration approved the increase in 737 MAX production from 38 to 42 per month earlier this month. This is a significant change to the previous cap of only 38 jets that was in place since January 2024. This cap was implemented after a panel blew out mid-air on a near new aircraft. The planemaker reported a net loss for the quarter ending September of $5.34billion, or $7.14 a share. This compares to a loss last year of $6.17billion, or $9.97 a share. Boeing delivered 55 jets to customers in September. This was its best performance since 2018. The 55 deliveries in September marked a dramatic increase from the 33 deliveries made a year ago, when a strike by 33,000 workers at a factory in the Pacific Northwest halted production. Wall Street closely monitors deliveries, since planemakers receive most of their revenue when they hand over the jets. This makes deliveries an important indicator of cash flow and revenue. (Reporting and editing by Sriraj Kalluvila in Bengaluru.
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New sanctions have yet to impact on Russia's oil exports.
According to LSEG and market sources, the new sanctions imposed by the U.S. and EU against Russia and its oil giants Rosneft Lukoil and Lukoil are yet to affect physical crude shipments out of Russia's western ports. LSEG data and sources indicate that despite weather-related restrictions and sanctions pressure, October exports of Primorsk and Novorossiisk ports in western Russia are expected to be around 2.33 million barrels a day (bpd), which is in line with Russia’s revised monthly program. Sources say that new U.S. restrictions are putting pressure on Russia's oil exports to the west. Urals oil is being purchased from ports by India and Turkey, who are expected by the West to adhere with their new restrictions. The U.S. has set a deadline of November 21 to end all business with Rosneft, Lukoil and other Russian oil companies. Due to the approximately four-week journey from Baltic ports to Indian refining plants, shipments loaded today may arrive at buyers after the deadline, increasing logistical and financial risk. One source said that everything loaded in Primorsk will arrive in India by November 21. He said that banks may have problems with payments, as Russian oil suppliers don't like to be paid in Indian rupees. Indian refiners are still deciding what to do with their Russian oil purchases. Reliance Industries in India, a major Rosneft client, has said that it is assessing how the sanctions will affect its crude supply contracts. Sources expect that Russian oil sales will be passed on to trading firms and intermediaries, which may increase the costs for sellers while shielding buyers from sanctions related risks. Reporting by Elaine Hardcastle; Editing by Elaine Hardcastle
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Italy Court of Auditors weighs the approval of Sicily Bridge project
The Italian Court of Auditors discussed on Wednesday a landmark project of the government for a new bridge that would connect the island of Sicily with the mainland after raising doubts about the decision to revive a decades-old plan. The right-wing government of Prime Minister Giorgia Mello has allocated 13.5 billion euro ($15.7 billion), a project Italy dropped in 2012 because it was too expensive. Matteo Salvini - the Infrastructure Minister and leader of far-right League – put a lot of pressure on the government to approve the construction of the link between Messina, a city in Sicily, and the nearby Calabria mainland. The project financing is subject to scrutiny The initial inspection by the Court of Auditors, which was to determine if it complied with budget and law rules, revealed that there were many obstacles. "Our assessment... is especially rigorous because it's public money." "We need to make sure the project is funded properly and that it won't require any interruptions later, which would be extremely damaging", Carmela Mirabella, a councillor at the Court of Auditors in Rome said on Wednesday during an hearing. Sources at the court have said that a decision regarding the validity of the project is expected in the next 24 to 48 hours. BRIDGE HAS DIVISED OPINION The project would not be stopped definitively if the court rejected the case, but it would be a major blow to the government after Salvini had promised to start the construction this year. Depending on how the court rules, the cabinet may vote to override objections to the plan and force judges to approve it "with reservations." The project could face more obstacles if the court does not approve it. There is a sharp divide in opinion about the bridge. Critics say it's unnecessary and damaging to the environment, especially for a region that has been devastated by earthquakes. Supporters claim that a rapid rail and road link would boost development in Sicily, Calabria and other regions of southern Italy. Salvini stated this week that he refused to believe anyone would stop a plan to elevate our country up to the level with the major players in the world. Eurolink won the contract to build the bridge over the Strait of Messina after an international bid. The consortium is led by Italy's Webuild and includes the Spanish group Sacyr, as well as Japan's IHI. The Court expressed doubts over the total cost of the bridge, and stated that the government had not included a mandatory technical evaluation from a consulting agency. The judges also questioned if the project was compliant with EU competition laws, referring specifically to the sharp increase in costs from the original 3.8-billion-euro bid awarded to Webuild (known at the time as Salini Impregilo) in 2005. Reporting by Angelo Amante Editing Keith Weir
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Air India CEO promises improvements in first public remarks after deadly crash
Air India's CEO pledged on Wednesday to improve its internal practices following a plane crash that killed 260 people in June. In his first public remarks about the accident, he stated that it would lead to a challenging year for the airline. Since the crash, the Tata Group's airline has faced intense scrutiny. From warnings about running planes before checking emergency equipment, to failing to change engine parts on time, to falsifying records and other lapses relating to crew fatigue management. Campbell Wilson, CEO of Aviation India in India's capital, said: "We are always looking for ways to improve." This was the first public statement made by Wilson since the Boeing Dreamliner crash in Ahmedabad. He added, "This year is going to be challenging for business. We are also working with investigators." AIRSPACE CONSTRAINTS In an interim report published earlier this year, India's air accident investigating agency stated that the fuel engine switches on the plane had been switched from run to off almost simultaneously just after takeoff. Air India is also facing delayed jet deliveries, and closures of airspace due to geopolitical conflicts. This has weighed down on its performance while it tries to recover from the accident. In May, India and Pakistan engaged in their most intense military conflict for decades. The conflict was sparked off by a terrorist attack in Indian Kashmir on Hindu tourists that left 26 dead. New Delhi claimed Islamabad supported the attack. Pakistan denied this. Since then, the two nuclear-armed neighbors have closed their airspace to each other. Wilson stated that "Airspace restrictions are a challenge for on-time performance." Reporting by Abhijith Gaparavam. Writing by Hritam Mukherjee. Aditya K. Kalra, Mark Potter and Aditya K. Kalra edited the book.
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Russia allows state-owned firms to purchase stocks and bonds in order to boost the market
The Russian government allowed state companies like nuclear monopoly Rosatom and Russian Railways to purchase shares and bonds with their surplus cash on the market, in an effort seen as a boost to the stock market after the latest round U.S. sanction. According to the data provided by the exchange, the MOEX index for Russia will be down 12.5% by 2025 due to the high interest rates that increase the appeal of deposits in banks, and the pressures from Western trade measures. The Finance Ministry stated in a press release that "the implementation of the resolution" will increase the participation of state-owned corporations and state corporations to invest in the Russian Stock Market. Retail investors dominate the market The Russian stock market is dominated by retail investors since the exodus from foreign investors that followed Russia's "special military operations" in Ukraine. Meanwhile, the Moscow Stock Exchange has been subject to Western sanctions. The President Vladimir Putin has ordered the authorities to increase the capitalisation of stock markets to 66% of GDP by 2024, from 27%. However, companies are reluctant to buy shares because they believe the market is still too small. Data on the website of the exchange showed that the stock market index increased by 1.2% on Tuesday. Analysts said this may encourage companies to raise equity funding, though some stressed that bank deposits still looked more attractive in the short-term. In a research report, analysts at IFK Solid said that this was a long-awaited event for the Russian financial market. It could change the balance and allow smart money to dominate retail investors. (Reporting and writing by Elena Fabrichnaya, Editing by David Holmes).
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India considers $12 billion plan to bailout state power distributors
India is considering a rescue package of more than 1 trillion rupees (12 billion dollars) for state-run companies that are heavily indebted. According to three Indian government officials, and a document describing the plan developed by the Indian Ministry of Power, in order to receive bailout money, states must privatise and transfer their electric utilities, and either keep managerial control, or transfer it, but list them at a stock market. The plan is the most ambitious reform effort yet by Prime Minister Narendra Modi to revamp the inefficient and chronically underperforming state-run electric distribution companies. These are seen as the weakest links in India's entire energy chain. Two government sources said that the Power Ministry and Ministry of Finance were discussing the final details of bailout. An announcement is expected to be made in the budget for February. The Ministries did not immediately reply to requests for comments. According to the Power Ministry's presentation, the proposal requires that private companies meet at least 20% total state power consumption and the states assume a portion of the retailer's liability. Two options are available to the states to choose from to access loans for existing debt repayment. The presentation explained that the states could create a new company for distribution, divest 51 percent of their equity and then access an interest-free 50-year loan to pay off the debts of the privatised companies, as well as low-interest federal loans over a five-year period. It showed that the second option would allow states to privatise as much as 26% of equity in an existing state-owned electricity distribution company, in exchange for low-interest loans for five years from the federal government. States that decide not to privatise their utilities must list them on a recognized stock exchange in three years. The presentation indicated that states who choose to list will receive low-interest federal loans for infrastructure management. DEBT AND LOSSES Documents show that the state power retailers had accumulated losses totaling 7.08 trillion rupees (equal to $80.6 billion), and outstanding debts of 7.42 trillion rupiae ($84.4 billion), as of March 2024. State-run electricity distributors are still struggling financially, due to the deeply subsided tariffs, despite three bailouts from the federal government worth billions over a period of two decades. Reforms are expected to bring benefits to private companies like Adani Power and Reliance Power. They are also likely to get stakes in state-owned companies. Employees and opposition parties have resisted past efforts to privatise India’s state-run energy distribution companies, which has slowed down reforms. Privatisation is needed for many power distribution companies to improve their financial and operational metrics. This move may face resistance, and it will take strong political will," Debabrat Ghosh said, Head of India for Aurora Energy. Privatisation is limited to a few distribution zones, including the national capital Delhi as well as industrial states such Maharashtra and Gujarat. In the next session of parliament, the government will amend the law to allow private companies to use the existing state-run network.
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Turkey's Eurofighter Typhoon jet deal includes weapons package, source says
A person with knowledge of the deal said that it also included a comprehensive package of weapons, including MBDA Meteor ground attack missiles and Brimstone air-to-air MBDA missiles. NATO allies Turkey, Britain and France signed the agreement at a ceremony held in Ankara Monday. The deal was signed to strengthen bilateral relations and boost Turkish air defenses. Ankara said that it also wanted 24 jets from Qatar and Oman, even if they were lightly used. Analysts have called the deal costly, even though details are not yet officially disclosed by either party. The person said that the deal included a comprehensive package of weapons, including the MBDA Meteor air-to air missile with a beyond-visual range, the advanced short-range missile air-to air, and the Brimstone ground attack missile. The deal is being made as Turkey, enjoying its most warm ties with Western countries in many years, seeks the advantage of advanced warplanes, to gain ground on regional rivals like Israel, who has launched strikes throughout the Middle East during this year. The British government and Prime Minister Keir starmer have stated that Turkey will receive the first 20 Typhoons by 2030. They also said the deal was a multi-year agreement, with talks beginning in 2023. (Reporting and writing by Jonathan Spicer, Tuvan Gumrukcu, Editing by Frances Kerry).
Brazil to host soy and corn OTC market
Brazil could have its BAB overthecounter (OTC) market for soy and corn in place previously the end of the year, the new market's CEO stated on Friday.
BAB has been given the green light from Brazil's securities commission, CEO Eric Cardoni told press reporters.
Backed by regional train operator Rumo, BAB was developed to enable hedging by regional traders and farmers to better reflect Brazilian market prices, Cardoni said.
Grain costs in Brazil, the world's top soy manufacturer and one of the biggest corn farmers, frequently diverge from those sold Chicago since of various crop durations and logistics costs.
Cardoni said the OTC market, in which securities trade without a centralized exchange, will trade agreements in Brazilian reais and might attain trade equivalent to 24 million metric tons of grains by the end of its third year.
The quantity would represent nearly half of the anticipated soy output in Brazil's top grain-producing state, Mato Grosso, in 2024/25.
Cardoni added that 15 business, the majority of them grain traders, were looking for approval to trade on BAB.
(source: Reuters)