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Trump withholds $40,6 million from California due to truck driver English rules
The Trump administration announced on Wednesday that it would withhold $40.6 million in federal transportation funds from California for failure to comply with rules governing truck driver English proficiency. In August, the U.S. Transportation Department warned California and Washington states that they might lose their funding if they don't adopt English proficiency standards for commercial truckers. Sean Duffy, U.S. Secretary of Transportation, said that California is the only state to refuse to make sure big rig drivers are able read road signs and can communicate with police. In response to the Transportation Department's request, a spokesperson for California Governor Gavin Newsom stated that the state's laws, regulations and standards were identical or had the same effects as federal safety requirements including English language proficiency. The spokesperson stated that California enforces its requirements through the commercial driver's licensing procedures. They also noted that the fatal accident rate for California license holders was nearly 40% less than the national average. The funds withheld were for roadside inspections and traffic enforcement, audits of trucking firms, public education campaigns, and safety audits. The U.S. administration of President Donald Trump has taken several steps to address concerns regarding foreign truckers who don't speak English. In August, Secretary Marco Rubio announced that the United States would immediately suspend the issuance all worker visas to commercial truck drivers. After a fatal accident in Florida and an audit by the government, the Transportation Department released emergency rules last month to restrict commercial drivers licenses for non-U.S. Citizens. In April, Trump issued an executive order that directed enforcement of a rule that required commercial drivers to meet English proficiency requirements in the U.S. The English proficiency standard for truckers is already a long-standing U.S. Law. However, the order reverses 2016 guidance that inspectors shouldn't remove commercial drivers from service if the only infraction was a lack of English. In 2023, FMCSA reported that approximately 16% of U.S. drivers are born outside of the United States. Duffy announced last month that he would launch a separate enforcement against California and require it to stop issuing certain commercial driver's licenses to citizens of other countries. California has 30 calendar days to comply, or the Trump Administration will begin withholding federal highway funds. The first year the Trump administration withholds nearly $160 million and then doubles it. (Reporting and editing by Nia Freed and Jamie Freed; Reporting by David Shepardson)
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J.B. Hunt reports a 12% increase in its quarterly profit due to cost savings
J.B. Hunt Transport Services, a U.S. trucking company, reported on Wednesday a 12% increase in its third-quarter profits. This was due to ongoing cost-cutting initiatives taken in response a downturn in freight in the industry. After-market trading saw a 11% increase in the shares of the company. Since 2022, the trucking industry is in decline, due to excess capacity, declining freight rates and a modest increase in shipment volume. Experts predict that the recession will continue, and that tariffs imposed on U.S. President Donald Trump by Trump's administration will add pressure to the situation. This could delay recovery. The Arkansas-based firm reported net earnings for the third quarter of $170.9 million, or 1.76 cents per share. This is up from $1.49 cents per share a year earlier. According to LSEG, it reported revenues of $3.05billion, which is slightly less than the $3.07billion in the previous quarter but higher than analysts' estimates of $3.03billion. The company reported that the revenue performance was driven by the 1% and the 4% decreases in gross revenue per truckload in the intermodal segment and the truckload segment, respectively. J.B. Hunt reported a 8% drop in load volume in its Integrated Capacity Solutions and Dedicated Contract Services segments, as well as a 1% decrease in its Final Mile Services. Reporting by Abhinav Paramar and Aatreyee dasgupta from Bengaluru, editing by Shailesh Kumar
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Brazil Postal Service Correios wants a $3.7 billion Treasury-backed Loan from banks
The Brazilian state-run Correios postal service is in discussions with a group of banks to obtain a loan worth about 20 billion reals ($3.67 billion), according to its chief executive. This comes as the company looks to improve short-term liquidity. CEO Emmanoel Rondon who assumed the role at the end of September said that the loan was part of a restructuring program which also included a voluntary dismissal plan, the renegotiation with suppliers, and actions to diversify the company's revenue. Why it's important Rondon said at a press briefing that the talks were about a guarantee loan from the Brazilian Treasury. KEY QUOTES "The logistics industry, where Correios is the leading player in Brazil and operates, has undergone a large transformation," Rondon said. He cited a more competitive environment because of the growth of the ecommerce segment, particularly since the COVID-19 epidemic. He added, "Our company didn't adapt quickly to the new reality. This lack of adaptation led to us struggling in terms of results and cash generation, as well as our operation." CONTEXT In the second quarter of 2018, the company reported a net loss amounting to 2.64 billion reais (US$483.4 million), nearly five times higher than its loss in the previous year. This was due to lower revenue, as well as increased administrative and financial costs. ($1 = $5.4612 reais). (Reporting and editing by Matthew Lewis. Additional reporting by Marcela ayres, Brasilia.
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United Airlines expects strong profits in Q4 driven by premium travel demand
United Airlines forecast on Wednesday a profit higher than expected in the fourth quarter, thanks to a robust demand for premium travel as well as improved pricing power. Chicago-based airline American Airlines expects a profit adjusted in the range between $3.00 and $3.50 a share for the quarter ending December. According to LSEG, the midpoint of forecast is $3.25 a share. This compares with an average analyst estimate of $2.86. United's adjusted third-quarter profit was $2.78 per share, exceeding analysts' expectations of just $2.63. The earnings report is released just a week following the rival Delta Air Lines' forecast of record earnings for the December quarter. Since the pandemic, United and Delta consistently outperformed other airlines by focusing on revenue streams with high margins that take advantage of the financial strength and loyalty of corporate and international travelers, as well as premium and corporate passengers. The earnings of U.S. carriers are now more divided. While Delta and United generate most of the profits for the industry, other budget carriers and domestic carriers are struggling with lower demand and increased pricing pressure. United's revenue for the third quarter was $15.2 billion, a 2.6% increase from a year earlier. Premium revenue grew by 6% and loyalty revenue by 9%. (Reporting and editing by Chris Reese; Rajesh Kumar Singh)
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US airline group calls for an end to the government shutdown citing aviation safety risks
The head of an airline trade group in the United States called for an end to the government shutdown after expressing concern about increasing pressure on air traffic controllers who are working without pay. In an interview, Chris Sununu said, "It has to stop now. Every day, the pressures, and risks, get higher." Sununu is the CEO of Airlines for America. The group represents American Airlines, Delta Air Lines, and United Airlines. "You are getting closer to the day when air traffic controllers will only feel financial pressure." The aviation industry is growing increasingly concerned about the impact of a prolonged government shutdown. Since the shutdown began, thousands of delays have been caused by the mounting number of sick calls made by controllers. The Air Line Pilots Association National Air Traffic Controllers Both associations have called for an end to the shutdown as soon as possible. In recent days, more than 13,000 air-traffic controllers and 50,000 Transportation Security Administration (TSA) officers received partial paychecks. They will not be paid the rest of this month if there is no resolution to the standoff. Sununu said that things could get worse. Sununu stated, "I believe it will really hit ahead in about a week-and-a-half, when the first zero paycheck arrives." "Most people are able to survive for a few weeks but after three, it puts a real strain on the system." Sununu is in favor of a continuing resolution that would reopen government, but he acknowledged the Democrats' desire for a healthcare discussion. "I'm not interested in politics." Sununu stated that he was only concerned with the easiest method to ensure the system's resilience. "If for some reason the system grinds to a halt, it's felt worldwide." "Hopefully, they'll see it before we reach that point." During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed paychecks. This led to longer waits at checkpoints. The Federal Aviation Administration had to slow down air traffic in New York to put pressure on legislators to end the standoff. Reporting by David Shepardson, Editing by Mark Porter & David Gregorio
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California Governor vetoes Bill that would have Limited Air Quality Regulation
California Governor Gavin Newsom vetoed this week a bill that would have restricted the regulatory powers for air quality agencies in the ports of Los Angeles and Long Beach - the two busiest ports complexes in the country - which are the main sources of local air pollution. California Senate Bill No. 34 prohibited the South Coast Air Quality Management District, located in the logistic hub counties of Los Angeles Orange Riverside and San Bernardino, from taking any actions that would, for example, impose a limit on the cargo throughput at ports or the number of cruise ship passengers. Newsom, in a Monday veto declaration, said: "With the federal administration directly undermining state and local air pollution reduction strategies and encouraging cooperative action at all level to avoid the worst climate and health impacts."
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Canada's transport safety agency raises alarm over a record number of runway incidents
MONTREAL - October 15, The Transportation Safety Board of Canada raised new concerns on Wednesday about near-misses after the number of cases of runway incursions reached a record in Canada last year. This was despite there being no actual collisions. In its annual watchlist, the transport safety agency calls for better use of technology and infrastructure. Data from the air traffic service provider NAV Canada shows that runway incursions increased to 639 in 2018 from 566 by 2023. This is the highest number recorded in the 15-year period for which data is available. When an aircraft or vehicle lands or takes off on a runway that is not intended for it, this is called a runway incursion. In the past few years, several near-misses have raised concerns about aviation safety, especially in the United States, where the understaffed air traffic controls are a concern. Southwest Airlines was only 200 feet behind the business jet in February when the pilot of the commercial airline aborted his landing to avoid a collision. Recent high-profile runway accidents are increasing pressure on aviation authorities, who want to mandate cockpit alert systems that prevent incursions.
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Ardian and Finint Infrastrutture agree to jointly buy Venice's airport operator
Ardian, an investment firm, and Finint Infrastrutture, a company that manages assets in Italy, have agreed to acquire Milione Spa together, which is the holding company of Save, which operates several airports, including Venice Marco Polo. According to a source familiar with the transaction, the equity value for the company is approximately 1.2 billion euro ($1.4 billion). The value of the company increases to 2.1 billion euro when debt is included. Milione is controlled by DWS Infrastructure & Infravia Capital Partners. The two companies announced their partnership on Wednesday. It was "designed to support the growth of Save and (Italian North-East Airport System) as well as establish a strategic operator who would pursue new acquisitions in order to achieve an external growth strategy." Save operates a network including Venice, Verona and Treviso in northern Italy. It also holds a stake at Charleroi Airport in Belgium. Banca Finint, Goldman Sachs and Mediobanca acted as advisors for Ardian. Rothschild, Morgan Stanley and Infravia assisted DWS and Infravia.
Japan's major firms have agreed to large wage increases for the third consecutive year
Many of Japan’s largest companies, from Toyota to the tech conglomerates, have responded to union demands for wage increases for a third year in a row. They are trying to help employees cope with inflation while retaining staff due to labour shortages.
On Wednesday, as annual "shunto", or "spring labor offensive" negotiations concluded at top firms, Hitachi Electronics said that it had agreed to an unprecedented 6.2% increase in wages per month in accordance with union demands.
Toyota, Japan's largest carmaker, and the leading manufacturer in the country, has agreed to raises up to 24,450 Japanese yen ($165), as well as bonuses equivalent to 7,6 months of salary.
The company did not reveal a percentage for the increase, but stated that the total pay increase for all employees will be the same as last year's which was the highest since 1999.
A weaker yen and record corporate profits also helped to support the decision to raise pay this year. Economists predict that the average pay increase will be similar to the 5.1% increase last year, which was the largest increase in 33-years and allowed the central bank's super-loose policy to end.
Mitsubishi Heavy Industries, NEC and other electronics companies also fully responded to the union's demands.
Prior to 2023, the annual wage increases in Japan were only 1-2%. As a result, Japan is still well below the average of the OECD rich country group.
Rengo, Japan’s largest umbrella group of labour unions with 7 million members said last week that its unions wanted an average increase of 6.09%. This was up from 5.85% the previous year, and marked the first time in more than 32 years when a higher rate had been requested.
The "shunto", or "pay-increase" talks, this year are largely focused on whether small and medium sized companies which employ 70% of Japan's workers will also see strong increases in pay.
Toyota plans to increase its payments for domestic components in order to fund the pay increases of suppliers.
The Bank of Japan is expected to raise its policy rate to 0.5% from the current very low level.
The government of Prime Minister Shigeru Shiba also wants to increase wages to stimulate consumer spending, as rising food prices and other essentials have kept inflation-adjusted wage growth at around zero.
In January, the consumer inflation rate, which is used to calculate real salaries, including fresh food but excluding rent costs, increased to 4.7% on an annual basis. This was the highest reading for two years.
Kazutaka M. Maeda is an economist with the Meiji Yasuda Research Institute. He said that a 5-5.5% pay increase this year "would just offset inflation, and not drive consumers spending."
($1 = 147.8900 yen) (Reporting by Makiko Yamazaki; Additional reporting by Ritsuko Shimizu, Tetsushi Kajimoto, Kentaro Okasaka and Kathleen Benoza; Editing by Edwina Gibbs) The annual salary talks are a defining feature of Japanese business. Relations between management and labour tend to be closer than in other countries. ($1 = 147.8900yen) (Reporting and editing by Edwina G. Gibbs; Additional reporting from Makiko Yamazaki, Ritsuko Shiraki Tetsushi Kajmoto Kentaro Okasaka Kathleen Benoza)
(source: Reuters)