Latest News
-
Southwest Airlines requires that mobility devices be de-batterized before boarding.
Southwest Airlines announced on Friday that it would require its passengers to remove the lithium batteries from their powered wheelchairs or scooters prior to boarding. The airline cited fire hazards as a reason. Southwest will introduce new lithium battery size limits in January. The new rules go into effect on September 25. The Federal Aviation Administration sent out a safety warning to airlines on Tuesday about the risks of lithium batteries inside aircraft passenger compartments. "Lithium battery fires and smoke incidents are becoming more common on airplanes." Southwest stated in an employee note that while these incidents are rare, visibility and quick access are essential to keep everyone safe onboard. Southwest Airlines will become the first U.S. carrier to adopt higher standards by taking proactive measures now. The FAA recommended Tuesday that airlines adopt risk-mitigation strategies. This includes clear messaging addressing potential fire risks related to lithium batteries carried in the luggage of passengers and crew, and reviewing firefighting training and procedures. The FAA reported that 50 incidents of lithium-ion batteries causing extreme heat, smoke or fire have occurred in the U.S. this year. Some of these have caused accidents or injuries. Southwest announced that all batteries will have to be less than 300 watt hours as of January 11, 2019. The company said it understands the importance of mobility devices for many customers. The airline stated that the update was designed to prioritize travel safety without causing unnecessary obstacles.
-
Union Pacific CEO talks to Trump about $85 billion plan for Norfolk
Union Pacific Corp CEO Jim Vena and U.S. president Donald Trump met in the Oval Office on Friday to discuss the railroad’s proposed $85billion buyout of Norfolk Southern Corp, according to the company. The company is seeking regulatory approval for the largest U.S. railway merger in decades. The announcement in July of a merger between two major U.S. railroad operators shocked a market that was already very concentrated. Under the Biden administration's aggressive antitrust policies, such a proposal was unthinkable. The White House didn't immediately respond to an inquiry for comment. Trump's backing could speed up the review process in an agreement that is facing opposition from rivals, and pushback by shippers who are concerned about reduced competition. If approved, the deal could transform the U.S. rail freight industry, creating the first coast to coast single-line network. It would streamline operations and eliminate interchange delays at key hubs such as Chicago. Vena and Trump discussed in the White House meeting "how creating an American Transcontinental Railroad is a victory for U.S. Competition, Consumers, and the Unionized Workers whose Jobs will be Protected when the Merger is Approved," according to a company statement. Vena told a Morgan Stanley Conference on Wednesday that the day before he met with "very senior officials in the administration", without naming any names. They get it. "They get it. Vena stated during the conference that they thought it was a win-win situation for the country. People briefed about the talks say that Union Pacific asked for input from the administration before launching its bid and received support to move ahead. Trump stated on Fox News on Friday that he had met Vena CEO to discuss the merger. RIVALS BOXED IN Union Pacific is the dominant freight rail carrier in western United States. Norfolk Southern, on the other hand, is the leading carrier in eastern United States. Together they make up two of the major U.S. class I railroads along with BNSF Railway, CSX Corp, and BNSF. The industry was expecting the remaining regional rivals of Union Pacific and Norfolk to rush to merge forces in order to compete with a continental giant. Last month, Warren Buffett sent a clear message against any further consolidation. He said he wasn't interested in purchasing another railroad. BNSF has recently increased commercial agreements with CSX rather than pursuing a merge. CSX is under pressure from activist shareholders to make strategic adjustments, which could include M&A. Before making any decisions, both companies closely monitor how regulators react to the Union Pacific and Norfolk merger. Buffett's strategy could change if he sees signs of White House support. BNSF and CSX are the two major U.S. railroads that do not operate a transcontinental network. The White House announced on Thursday that it would nominate Surface Transportation Board Member Michelle Schultz to a second term, and Richard Kloster, the head of a private consulting firm in transportation, for an open seat within the agency. Last month, the White House fired Surface Transportation Board Member Robert Primus. Primus was appointed by former President Joe Biden. A person familiar with the transaction stated that the dismissal was the best possible sign of White House backing for the deal.
-
Union Pacific CEO talks to Trump about $85 billion plan for Norfolk
Union Pacific Corp CEO Jim Vena and U.S. president Donald Trump met in the Oval Office on Friday to discuss the railroad’s proposed $85billion buyout of Norfolk Southern Corp, according to the company. The company is seeking regulatory approval for the largest U.S. railway merger in decades. The announcement in July of a merger between two major U.S. railroad operators shocked a market that was already very concentrated. Under the Biden administration's aggressive antitrust policies, such a proposal was unthinkable. The White House didn't immediately respond to an inquiry for comment. Trump's backing could speed up the review process in an agreement that is facing opposition from rivals, and pushback by shippers who are concerned about reduced competition. If approved, the deal could transform the U.S. rail freight industry, creating the first coast to coast single-line network. It would streamline operations and eliminate interchange delays at key hubs such as Chicago. Vena and Trump discussed in the White House meeting "how creating a transcontinental railroad for the United States is a win-win situation for the U.S. consumers and unionized workers, whose jobs would be protected if the merger was approved," according to a company statement. Vena told a Morgan Stanley Conference on Wednesday that the day before he met with "very senior officials in the administration", without naming any names. They get it. "They get it. Vena stated during the conference that they thought it was a win-win situation for the country. People briefed about the talks say that Union Pacific asked for input from the administration before launching its bid and received support to move ahead. Trump stated on Fox News on Friday that he had met Vena CEO to discuss the merger. RIVALS BOXED IN Union Pacific is the dominant freight rail carrier in western United States. Norfolk Southern, on the other hand, is the leading carrier in eastern United States. Together they make up two of the major U.S. class I railroads along with BNSF Railway, CSX Corp, and BNSF. The industry was expecting the remaining regional rivals of Union Pacific and Norfolk to rush to merge forces in order to compete with a continental giant. Last month, Warren Buffett sent a clear message against any further consolidation. He said he wasn't interested in purchasing another railroad. BNSF has recently increased commercial agreements with CSX rather than pursuing a merge. CSX is under pressure from activist shareholders to make strategic adjustments, which could include M&A. Before making any decisions, both companies closely monitor how regulators react to the Union Pacific and Norfolk merger. Buffett's strategy could change if he sees signs of White House support. BNSF and CSX are the two major U.S. railroads that do not operate a transcontinental network. The White House announced on Thursday that it would nominate Surface Transportation Board Member Michelle Schultz to a second term, and Richard Kloster, the head of a private consulting firm in transportation, for an open seat within the agency. Last month, the White House fired Surface Transportation Board Member Robert Primus. Primus was appointed by former President Joe Biden. A person familiar with the transaction stated that the dismissal was the best possible sign of White House backing for the deal.
-
Thales, Airbus, Leonardo eye initial agreement on 10 bln-euro satellite JV, sources say
Sources close to the situation said that Europe's aerospace companies Leonardo, Thales, and Airbus are redoubling their efforts to combine satellite businesses in a 10 billion euro ($11.7 billion) joint venture with a French headquarters. They hope to reach an agreement within weeks. The three companies have set up "Project Bromo" to create a satellite manufacturer to compete against rivals in China and the U.S. Three sources reported that the talks have gained momentum following a difficult summer period when the parties were unable to agree on governance and valuation. This stalled an agreement. According to another source, the talks appeared to be at risk of collapsing. Sources said that a memorandum could be signed as soon as the end of September. However, timing could change. Three sources stated that while the political signals have been encouraging so far, details about ownership and governance still need to be signed by all nations involved. Three sources said that the venture will include entities dedicated to protecting sensitive national interests. Sources warn that an agreement is not guaranteed and that talks may still fail. Sources said that the exact ownership stakes in the new space venture were still being negotiated. They added that the ownership stakes could be divided roughly into three equal parts. Two sources stated that the new satellite venture's value of 10 billion euros is based on the combined revenue of the units of 6 to 6.5 billion euros, and the sector peers which trade at 1.5 to 3 times revenue. Leonardo has declined to comment. Airbus made reference to the comments of CEO Guillaume Faury who stated earlier this week that companies were working towards a deal, and speaking with European governments. He told reporters in Washington that "we are on our way". Faury said, "We are currently in the process of obtaining anti-trust approval and have begun to communicate with stakeholders." Thales stated: "At this stage, no agreement has been reached." We continue our work. "Any further comment is premature." The preliminary attempts to create an European satellite champion over the last decade failed partly due to antitrust concerns and rivalries between nationalities. The dramatic growth of Starlink, and the shift to cheaper satellites in low orbits has increased the pressure on Europe's top satellite manufacturers to either combine their assets or face being pushed off the market. The European Union is trying to increase its sovereign capability as tensions in the geopolitical arena have increased and U.S. policy has changed. Analysts say that all three companies are owned by minority governments and any agreement involving sensitive technology or assets would require political approval. The final details of the deal are still being negotiated, but a person with knowledge of the matter stated that the venture would likely be based at Airbus' Toulouse facility. In Europe's fragmented aeronautics sector, decisions on the location of corporate power centers are often sensitive. The Italian industry ministry did not respond to a request for comment. The German defense ministry has not responded immediately. APE, France's state-owned shareholding agency, declined to comment. A potential deal could create a European satellite champion based on the missile manufacturer MBDA owned by Airbus Leonardo and BAE Systems. MBDA is a company that was formed in 2001 by the merger of Anglo French Matra BAe Dynamics and France's Aerospatiale Matra Missiles, as well as missile activities of Anglo Italian Alenia Marconi Systems. Sources said that the new venture, like MBDA's, will combine a mix of unified activities across borders with separate entities to protect sensitive interests.
-
Via, a transit technology company, is valued at $3.5 Billion as its shares drop in the NYSE debut
Via Transportation, a transit technology company, was valued at $3.5 Billion on Friday following its shares' 4.4% decline in their NYSE debut. The stock opened at $44, which is below the $46 offered price. Shareholders can be sold via the internet Sell 493 Million Dollars to raise $493 Million 10,7 millions shares priced above the range of $40-$44. Investors are reviving the U.S. IPO Market as easing tensions in trade and expectations of lower interest rates have boosted investor appetite. This has led to the busiest U.S. IPO week since 2021. Via, unlike traditional ride-hailing services, works in conjunction with public transportation networks. New York-based company offers software and operational services for cities, transit agencies and schools. It combines on-demand ride-sharing with intelligent routing in order to optimize public transportation. It is growing, but the business remains unprofitable. Via reported a revenue of $107.1m and a loss of $21.2m for the three-month period ending June 30. The model Via provides has its own challenges, including lower margins, slower scale across jurisdictions, dependence on local relationships, and compliance with regulatory requirements, said Kat Liu. Vice president of IPOX research, she noted that the exposure to public sector budgets and complexity in regulatory issues continues to be a risk. Globally, the need to improve public transportation systems is becoming more important due to climate change, increasing congestion and rapid urbanization. The performance of "tech" IPOs has also varied. While tech IPOs were the most popular this year, standout performers mainly came from AI and FinTech. Edward Best, partner of Willkie Farr and Gallagher, said that other tech segments had mixed but generally positive results. Via is one of the biggest transportation-related tech IPOs in the U.S., according to data from Dealogic.
-
Thales, Airbus, Leonardo eye initial agreement on 10 bln-euro satellite JV, sources say
Sources close to the situation have told us that Leonardo, Thales, and Airbus, three European aerospace companies, have intensified their efforts to merge their satellite businesses and aim to reach an agreement within weeks. The three companies will create a satellite manufacturer under "Project Bromo", named after a volcano in Indonesia. This company will compete against rivals such as Elon Musk's Starlink, which is based in the U.S. and China. Three sources claim that the talks have gained momentum following a difficult summer, when the parties were unable to reach an agreement on governance and valuation. According to another source, the talks appeared to be at risk of collapsing. Sources said that a memorandum could be signed as soon as the end of September. However, timing may slip. Three sources stated that while the political signals have been encouraging so far, details about ownership and governance still need to be signed by all nations involved. Three sources said that the venture will include entities dedicated to protecting sensitive national interests. Sources warn that an agreement is not guaranteed and that talks may still break down. Sources said that the exact ownership stakes in the new space venture were still being negotiated. They added that the venture's ownership could be divided roughly into three equal parts. Two sources stated that the new satellite venture's value of 10 billion euros is based on the combined revenue of the units of 6 to 6.5 billion euros, and the sector peers which trade at 1.5 to 3 times revenue. Leonardo's spokesperson declined to comment. Airbus made reference to the comments of CEO Guillaume Faury who stated earlier this week that the companies were working towards a deal, and had been in contact with European governments about the venture. He told reporters in Washington that "we are on our way". Faury said, "We are currently in the process of obtaining anti-trust approval and have begun to communicate with stakeholders." Thales stated: "At this stage, no agreement has been reached." We continue our work. "Any further comment is premature." The preliminary attempts to create an European satellite champion over the last decade failed partly due to anti-trust concerns as well as national rivalries. The dramatic rise of Starlink, and the shift to cheaper low-orbit satellites has increased the pressure on Europe's major suppliers to either combine assets or face being pushed off the market. The talks to reshape industry structure are part of an effort by Europe to increase sovereign capabilities, as geopolitical conflicts have increased and U.S. policy has shifted. Analysts say that all three companies are owned by minority governments and any agreement involving sensitive technology or assets would require political approval. The Italian industry ministry did not respond to a request for comment. The German defense ministry didn't immediately respond. APE, France's public shareholding agency, declined to comment. A possible deal would create a European satellite champion based on MBDA missile maker, which is owned by Airbus Leonardo and BAE Systems. MBDA, founded in 2001 by the merger of Anglo French Matra BAe Dynamics and France's Aerospatiale Matra Missiles with missile activities from Anglo Italian Alenia Marconi Systems, was formed through a merger of Anglo French Matra BAe Dynamics. In June, it was reported that Thales Alenia space and Telespazio, which are currently joint ventures between Leonardo and Thales, would be part of the new structure.
-
Union Pacific CEO talks to Trump about $85 billion plan for Norfolk
Union Pacific Corp CEO Jim Vena and U.S. president Donald Trump met in the Oval Office on Friday to discuss the railroad’s proposed $85 Billion buyout of Norfolk Southern Corp. The company is awaiting regulatory approval as it waits for what could become the U.S. rail freight industry's largest consolidation in decades. White House support may accelerate the lengthy review despite opposition from competitors and concerns from shippers about reduced competition. The White House didn't immediately respond to an inquiry for comment. If approved, the merger could transform the U.S. rail freight industry, creating the first coast to coast single-line network. It would streamline operations and eliminate interchange delays at key hubs such as Chicago. A company statement said that Trump and Vena "discussed how creating an American Transcontinental Railroad is a win-win for U.S. consumers and unionized workers, whose jobs would be protected if the merger was approved." Vena, at a Morgan Stanley event on Wednesday, said that he met with senior officials of the administration, but did not name them. "They understand the strategic value of what we are proposing." He said, "It's a win for the nation."
-
Whaleboat sinks into river in Congo, killing at least 107 people
According to a government internal report viewed by us on Friday, at least 107 people died when a whaleboat caught blaze in the west of Democratic Republic of Congo. In a memo, the Ministry of Social Affairs stated that 146 people were missing after the boat, which was a narrow double-ended open vessel, caught fire near Malange Village in Lukolela Territory on Thursday night. The note stated that rescue teams recovered 209 survivors after the vessel burnt and drifted downriver. The fire destroyed the cargo and 15 riverside houses. The search operations continued Friday, with community volunteers and naval personnel combing the banks. Authorities pledged to provide medical care to the injured and assistance to the bereaved. They also promised to repatriate survivors back to their origins and destinations. The river is the lifeline of the vast rainforests of the Congo, where wooden boats are the primary means of transport. However, accidents are common due to overloading and poor maintenance, as well as the use of nighttime riverboats. State media reported that eight people were pulled from the water by local residents. The accident occurred just days after 86 people drowned in a separate shipwreck at the confluence between the Nsolo River and the Great Maringa River in Basankusu Territory, northeast of Malange. Akula Mboyo, a civil society activist, said that the motorised canoe "sank because of blatant overloading and night navigation which is officially prohibited." Rescue operations can be hampered due to limited resources or remote locations. The death toll at Basankusu could not be independently verified and the officials who were contacted for comment could not be reached immediately. Reporting by Ange Kaongo, Congo Newsroom; Writing by Ayen deng Bior; Editing and proofreading by Portia Crowe & David Gregorio
Japan considers Alaska LNG Pipeline pledge to win Trump’s favour
Three officials with knowledge of the situation say that Japan may offer support for a $44billion gas pipeline in Alaska to appease U.S. president Donald Trump and avoid potential trade friction. Sources said that officials in Tokyo believe Trump will bring up the project, which is a key part of the U.S. security and prosperity, at his first meeting with Japanese Prime Minister Shigeru ishiba in Washington, as early as next week.
The overall cost of gas is causing Japan to doubt the viability the 800-mile pipeline that would link fields in Alaska to a southern port where the gas could be liquefied before being shipped to Asian consumers. Officials said that Japan is willing to look into a possible deal, if requested.
One person said that Tokyo could include this commitment along with other concessions such as increasing defense spending and manufacturing investments in the U.S. to reduce the $56 Billion bilateral trade deficit, and stave off tariffs.
The White House didn't immediately respond to an inquiry about the meeting. The Japanese foreign ministry stated that it was too early to talk about the issue.
No details of Japan's potential interest in the Alaska Project have been reported previously. They spoke under the condition of anonymity as they were not authorized to speak to the media. One of the executive orders Trump issued when he assumed office on January 20 promised to unlock Alaska's potential resource, including "the sale and transportation Alaskan LNG to other areas of the United States or allied nations in the Pacific region". Trump has presented the project as a win-win for Alaska and U.S. ally nations in Asia who are looking for a reliable source of energy. Japan has plenty of access to LNG and its companies have traded more than half the country's domestic consumption last year. The Alaska pipeline can still help Japan diversify its supply away from more risky sources such as Russia and the Middle East, which account for around one-tenth (10) of its gas imports.
Ishiba stated in the parliament on Friday, that although Japan must reduce its reliance on fossil-fuels, there are "things that we should ask from the U.S. regarding stable energy supply". Ishiba did not mention Alaska or give any specifics.
Officials warned that Ishiba would not be able make any firm commitments regarding LNG, such as investing in the Alaska Project, when he met Trump. A fourth official stated that any deal must offer flexibility and reasonable pricing, as well as allowing Japanese buyers the option to resell LNG purchased.
Trump has threatened to impose tariffs on a variety of foreign goods, but has revealed little since his return to office about his policy towards economic and security relations with Japan. The topic has dominated the political discourse in Japan. A key U.S. ally and major foreign investor, Japan was shaken by Trump's tariffs on imports of steel and his demand that Tokyo pay more for hosting American troops during his first term.
The media in Tokyo is focusing on whether Ishiba can recreate the bond between Trump and former Japanese Prime Minister Shinzo Abe during Trump's first term.
Abe was the first foreign president to meet Trump following his election victory in 2016. The pair became close friends and played golf together.
Ishiba’s administration sought advice from U.S. policy experts and lawmakers with connections to Japan and Trump, as it did not have such intimate knowledge of Trump’s inner circle. These include former U.S. Ambassador to Tokyo Bill Hagerty, who is a Tennessee Senator, and Kenneth Weinstein from the Hudson Institute.
Weinstein said he encouraged Japan to strengthen energy partnerships with the U.S., and that the Alaska Project deserved serious consideration. Hagerty’s office didn't respond to any questions.
Ado Machida is a Tokyo-based entrepreneur who was on Trump's team of transition after his election win in 2016. He said that an offer from Japan to purchase more LNG and to support the Alaska LNG Pipeline would "probably be the easiest" way for Trump to accept.
Machida said that Trump would want to know the Japanese government's response to his proposal. He added that he spoke to Japanese officials about it.
One of the officials stated that state banks, such as the Japan Bank for International Cooperation, could finance the Alaska project for trading firms like Mitsubishi Corp and Mitsui & Co. Japan relies on these companies to secure its oil, gas, and coal reserves abroad.
Mitsubishi has reached an agreement in 2022 with Alaska Gasline Development Corporation, the state-owned company that oversees the LNG proposal to evaluate the feasibility of ammonia production. Mitsubishi hasn't committed to the project past an assessment. Mitsubishi and Mitsui refused to comment on possible investments and discussions regarding the Alaska LNG Project. JBIC stated that it would provide support on a case by case basis, taking factors such as the involvement of Japanese companies into consideration.
A spokesperson for AGDC stated in a press release that it had spoken with Japanese leaders of the energy industry about the project. However, they did not provide any specifics.
Despite opposition from environmentalists, the project was first approved under Trump's previous term. In 2020, it received final legal approval and in 2022 Federal Energy Regulatory Commission authorization. AGDC announced this month that it has entered into an agreement to advance the pipeline with Glenfarne.
(source: Reuters)