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Embraer CEO: US tariffs may have pandemic effect on the planemaker.
According to its CEO, the 50% tariff that U.S. president Donald Trump intends to impose starting in August on Brazilian exports could have a similar impact on revenues as the COVID-19 epidemic. The Chief Executive Francisco Gomes Neto said to reporters that tariffs may lead to order cancellations, delayed deliveries, reduced investments, and job cuts. They could also generate an additional cost of $9 million for each airplane exported to the U.S. Embraer is the third largest planemaker in the world after Airbus. The U.S. accounts for 45% of commercial jet exports, and 70% of executive jet exports. Gomes Neto stated that "given the importance of this market, if we continue to implement this (tariff plan), we will see a similar impact as COVID-19, in terms of a decline in revenue for the company." He said that a 50% tariff on commercial jets would be like a trade embargo, particularly for Embraer’s E1 narrow body aircraft, which would make shipments to U.S. carriers "unfeasible." The executive insisted that no orders had been cancelled so far. Embraer shares listed in Sao Paulo, which had been up around 3% in the morning, were volatile after Gomes Neto made his remarks. The gains were erased, and then the stock ticked back up by 1%. (Reporting and writing by Gabriel Araujo, editing by Brad Haynes and Kylie Madry; Andre Romani is the writer; Brad Haynes is the editor)
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Air India resumes international flights after the June crash
Air India announced on Tuesday that it will partially restore the international flight schedule which was reduced following the crash of its flight last month, in which 260 people were killed. Air India, as part of its restoration program, will begin a three-times weekly service between Ahmedabad (India) and London Heathrow (England) from August 1, replacing the current five-times a week flights between Ahmedabad (India), and London Gatwick. The Boeing 787 Dreamliner, which was bound for London via Ahmedabad in India, began to lose thrust shortly after takeoff and crashed on June 12, 2012. The plane crashed on June 12 after losing thrust. All but one person on board, and 19 people on the ground, were killed. Air India reduced certain international flights after the crash, as part of a'safety pause' that allowed the carrier to conduct additional precautionary inspections on its Boeing 787 planes. Air India announced that partial service will be restored starting August 1 and full service is planned to resume on October 1, 2025. Air India reduced its flights to certain destinations in Europe and North America as part of a partial resume. Air India has reduced the frequency of flights from Delhi to Paris, which was previously 12 times per week. This reduction took effect on August 1, 2009. The number of flights on the Delhi-Milan routes has been reduced from four to three per week. According to the airline, flights between Mumbai and Delhi have been reduced to six weekly departures from seven previously. (Reporting and editing by Nishit Navigation; Pooja Deai)
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Portugal expects that large non-EU carriers will also show an interest in TAP
Luis Montenegro, the Prime Minister of Portugal, said that Portugal expects to attract large airlines from both within the European Union as well as outside the bloc due to its untapped potential. Portugal has relaunched its long-delayed TAP privatisation on Thursday. The aim is to sell a stake of 44.9% to a company that can bring scale and global competitiveness to the airline, while also offering an additional 5% for TAP staff. In the last year, three major European airlines, Lufthansa and Air France-KLM as well as British Airways owner IAG have met with the government to discuss TAP. Air France-KLM confirmed its interest in the process after Thursday's announcement. It said it "will take part once all details have been released". Montenegro also said that he expected non-EU carriers would express interest. However, he did name any potential bidders. He said at a press conference that TAP integrating "into larger group with greater capacity to create synergies has untapped potential which is very positive, appealing and valuable". The Portuguese flag carrier’s sale model allows an airline to partner up with private investors or investment funds, and then submit a bid together. The government is keen to keep and even expand its links with Brazil, Portuguese-speaking African nations, and the United States, as well as its hub in Lisbon. Montenegro stated that Portugal also wishes to increase the airport capacity of the cities of Porto and Faro as well as the autonomous regions Madeira and Azores.
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Steyr Automotive, Austrian company, wins order for large electric trucks from Chinese firm
Steyr Automotive, Austria's electric truck manufacturer, announced on Tuesday that it has received an order from China's SuperPanther to produce electric trucks in Europe for its sale. Chinese automakers are expanding in Europe. They are betting on their low prices and advanced technology, to penetrate a market that is traditionally dominated only by European and American brands. This expansion has stoked tensions in trade between Brussels and Beijing. There is also a dispute over EU tariffs imposed on EVs made in China to protect European producers. China can avoid tariffs on its models if they are manufactured in Europe. Steyr and SuperPanther have signed a production agreement for electric trucks. No financial details have been disclosed. Oberösterreichische Nachrichten, a local newspaper, reported that Steyr could be producing thousands of electric trucks on the European market by 2021 after it was purchased from Germany's MAN. Steyr said that the tractor units would be produced with two axles as it is in Europe. This contrasts the three-axle SuperPanther model manufactured in China. The Austrian company said that SuperPanther will sell up to 16,00 electric trucks in Europe before 2030, and that production of the vehicle will begin next year. SuperPanther didn't immediately respond to a request from for comment. Reporting by Alexandra Schwarz Goerlich and Paolo Laudani, editing by Barbara Lewis
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Tesla's robotaxi service expands as Alphabet Waymo gains speed
Alphabet Waymo robotaxis drove more than 100,000,000 miles without a driver, and doubled the mileage in just six months. The company is accelerating deployment in U.S. Cities amid increasing competition. Waymo is expanding its service as Tesla expands their self-driving cab service. This follows a recent small test with a few Model Y SUVs on a restricted area in Austin, Texas. Tesla CEO Elon Musk has stated that Tesla will launch the service in several U.S. Cities by the end 2025. However, Waymo has been slowly expanding its service with around 1,500 cars for many years. The service is available in San Francisco, Phoenix, Austin, Atlanta, Los Angeles and other Bay Area cities. Saswat Pantigrahi, Waymo’s chief product officer said, "Reaching the 100 million fully automated miles represents years' worth of methodical progress that is now accelerating to rapid, responsible scale-up." As we continue to expand our service, we will face new challenges. Waymo has logged 71 million miles of autonomous driving as of March. This is up from 50 millions miles at the end 2024, and 25 million during July 2024. It completed its first mile in January 2023. The commercialization of autonomous vehicles is more difficult than expected. High costs, strict regulations, and federal investigations have forced many to close down, including General Motors Cruise. Amazon's Zoox is one of the few remaining competitors. It tests a vehicle that does not have manual controls, such as a pedal or steering wheel, and it plans to launch its commercial services this year in Las Vegas. Waymo, the U.S. company that operated unmanned taxis for paying passengers before Tesla launched its robotaxi last month was the only one. After collisions, federal agencies have launched investigations into Waymo and Tesla as well as recalling Zoox and other vehicles. Musk, despite multiple traffic problems and driving errors as Tesla teetered into the robotaxi industry after years of broken promises, expanded the service area to Austin and announced last week that it will roll out its services in the San Francisco Bay Area in two months. Waymo announced in March that it plans to launch a fully autonomous ride-hailing service in Washington, D.C., next year. It has applied to operate autonomous vehicles with a trained specialist at the wheel in Manhattan. Robotaxis, which began as a small Google project for self-driving cars in 2009, and were spun off seven years later, cover over two million miles a week. By May, the company had completed more than 10 millions autonomous trips. This is up from the 5 million trips it was expected to complete by the end of 2024. (Reporting and editing by Himani Sarkar in San Francisco, with Abhirup Roy reporting from San Francisco)
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Trump's threat of sanctions looms on Russian oil exports towards China, India and Turkey
U.S. president Donald Trump has threatened to impose sanctions on buyers of Russian products unless Russia agrees to a peace agreement over the conflict in Ukraine. This could complicate Moscow's oil exports to China, India, and Turkey. RUSSIA'S GRADES AND PORTS OF OIL According to the International Energy Agency (IEA), Russia's revenues from crude oil and petroleum products sales in June fell by nearly 14% compared to a year ago, to $13.57 Billion. The IEA reported that Russia's crude production remained stable last month at 9.2 millions barrels per daily (bpd), and crude loadings stayed at 4.68million bpd. The IEA reported that its exports of oil and petroleum products fell by 110,000 barrels per day (bpd) to 2.55million bpd. Russia exports Urals oil, Siberian Light oil and CPC Blend oil grades through its western ports such as Primorsk Ust-Luga, and Novorossiisk. The port in Murmansk, located in northern Russia, also loads smaller quantities of Arctic oil and ARCO grades as well as Novy port grades. Russia exports the ESPO Blend and the Sokol & Sakhalin Blend, both from Sakhalin Island in the Pacific. Pipelines connect Russian oilfields with China and European nations. Only Hungary and Slovakia still buy oil from Russia as part of the exception to European Union sanction. Russia provides its oil pipeline network to transit oil from Kazakhstan to its ports, and via the Druzhba pipeline to Germany. Russia exports oil to Belarus, which is home to two major refineries. MAIN BUYERS China is the biggest buyer of Russian crude oil. This is mainly due to the direct pipeline connections with Russian fields: the Skovorodino Mohe oil pipeline and Kazakhstan's Atasu Alashankou oil pipe enter the country, while the remaining oil purchased by Chinese refineries via sea. China imports about 2 million bpd from Russia – mainly ESPO Blend and Sokol Blend as well as some Urals, Arctic and Arctic oil. According to calculations, that's around $130,000,000 per day. Energy companies CNPC and Sinopec as well as independent refining units are the main buyers. India is Russia's second largest oil buyer and its main buyer of Urals oil. India also buys ESPO Blend, Sokol, and Arctic grades of oil from Russia. According to Kpler ship tracking data, India imports about 1.8 millions bpd of Russian oil. Russian oil is used by most Indian refiners including Reliance Industries which owns the largest refinery in the world. The oil is also sent to Nayara Energy - a private refiner in which Rosneft, a Russian company, has a stake - as well as Indian Oil, ONGC and Indian Oil. According to LSEG, the third largest importer of Russian crude oil, Turkey, increased its purchases in June to a record annual level of 400,000 bpd. Turkey's increased purchases of Russian crude oil was due to the price drop of the Russian grade. Since April 1, Urals Oil has consistently traded below the $60 price cap per barrel. Turkey's STAR Refinery, controlled SOCAR in Azerbaijan, is the largest buyer of Russian crude oil, and another refiner, Tupras also purchases Urals-grade oil. OIL PRODUCTS Russia exports around 2.5 million bpd fuel products including diesel, gasoline, naphtha and fuel oil. Since 2023, Russia also has diverted its oil product sales from Europe to Asia. Moscow is the largest diesel supplier in Brazil and Turkey. It also supplies large volumes of fuels to African nations such as Ghana, Egypt and Morocco. OTHERS Moscow also exports oil and other products to countries that it calls "friendly", i.e., those with which it has continued to do business. Syria is among the buyers, along with countries like Pakistan, Cuba, and Sri Lanka. (Reporting and Editing by Sharon Singleton).
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Namib Minerals to invest $300 million in restarting Zimbabwe mines
Ibrahima Tall, the chief executive of Namib Minerals, said on Tuesday that it plans to invest $300 million in order to restart two of its gold mines which were mothballed in Zimbabwe. Namib Minerals is the owner of three gold mines, including How Mine, currently in operation. Tall said that the funds will be used to restart production at the Mazowe and Redwing mining operations, which were halted due to economic conditions in 2018 and 2019. Namib Minerals debuted in the Nasdaq market on June 1. It was formed by merging assets owned by Metallon Corporation with Red Rock Acquisition Corporation (formerly Hennessy Capital Investment Corp.) from the United States. Tall said that production at the two mines suspended could resume in 18-24 months after Namib Minerals secures financing for their relaunch. He added that the firm was exploring different options to raise the capital required. In an interview with Harare, the capital of Zimbabwe, he stated that "interest from investors has been very high." Mazowe is located north of Harare and contains 1.2 million ounces gold with an average of 8.4 grams of gold per metric ton. Redwing, which is near the border of Mozambique has 2.5 million ounces with a 3.07 gram grade. Namib Minerals How Mine in Bulawayo produced 37, 000 ounces gold in 2024. This is a 9% rise on the output of the previous year. Zimbabwe's gold mining industry, which has been struggling for years due to currency and policy volatility is now expanding production in response to the record high gold prices, and relative stability of political and economic conditions. Caledonia Mining Corp., which owns Blanket Mine in Zimbabwe, is exploring ways to raise $250 million for the construction of what could be Zimbabwe’s largest gold mine. (Reporting and editing by Nelson Banya, Joe Bavier, and CHRIS TAKUDZWA-MURONZI)
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Israeli airline Israir purchases 20% stake in credit cards company
Israir, the Israeli airline, announced on Tuesday that it would buy 20% of a local card company for 12 million dollars. The move is part of an effort to increase its passenger base. Israir is buying the stakes from Rami Levy, a retailer and Isracard, a credit card company. SuperFly, a new credit-card from the flag carrier El Al Israel Airlines will compete with FlyCard. Israir stated that the SuperFly card would allow them to develop a deeper relationship with their Israeli customers beyond just the flight ticket. This is a strategic decision that will change the way customers view airlines. Israir has stated that it plans to issue 300,000 cards by the end 2026. "This will turn the card into an engine of growth for its larger target of flying 2,5 million passengers in the year 2026." It is a smaller competitor to El Al, and it flies mostly domestic routes as well as to Europe.
New horizons however same old problems for LME warehousing: Andy Home
The London Metal Exchange ( LME) has actually just listed the Saudi Arabian port of Jeddah as a great delivery area for copper and zinc. This addition to the LME's global delivery network, which ends up being reliable three months after the approval of the very first warehouse, is the first new listing considering that Amsterdam in 2018. The exchange is likewise checking out the possibility of including Hong Kong to the list, no doubt hoping that its owner Hong Kong Exchanges and Cleaning (HKEx) can assist overcome the Chinese authorities' historic resistance to LME warehouses.
New areas might provide a booster for a warehouse network that has seen capacity contract and the variety of operators decline over the last ten years.
Nevertheless, old issues continue.
There was a 253-day line to load aluminium out of LME warehouses in Malaysia's Port Klang at the end of June, the longest waiting time considering that November 2016.
The LME storage organization likewise remains extremely concentrated with 4 dominant operators, a prospective problem when among them is dealing with an unsure future.
SHRINKING SPACE
Total LME signed up storage capability at the end of June was 3.3 million square metres, down from 4.3 million three years ago.
The pace of net shrinking slowed to 44,000 square metres over the last year and the downtrend shows indications of bottoming out. The number of registered storage facilities grew by 15 units to 468 after being up to a multi-year low in June 2023.
The three-year decline in registered capacity reflected a. duration of low exchange stocks as combined called for and shadow. off-warrant stock fell below one million metric tons over. the second half of 2022.
Stocks have considering that increased to 2.3 million since completion of May,. although inflows have actually been securely concentrated on simply a. handful of places. Russian aluminium has built up in the South Korean port of. Gwangyang, while non-Russian aluminium has been dumped in Port. Klang. This year's heavy inflows of both lead and zinc have. mostly ended up at Singapore warehouses.
All 3 places have bucked the trend of declining. storage capacity over the in 2015 and ISTIM UK Ltd's. extra 11 warehouse systems at Port Klang were the single. biggest part of the wider year-on-year increase.
SIGN UP WITH THE QUEUE
Rent-sharing is the common measure behind this year's. big deliveries of metal into the LME system. Such offers enable. the entity that calls for the metal to make a piece of the future. rental earnings.
The purchaser of that metal might be naturally hesitant to. pay rent to a prospective competitor but the only method to leave. the contract is to physically fill the metal out and provide it. to another warehouse business.
The bigger the initial warranting, the higher the. potential for a line. ISTIM warehouses in Port Klang received. 652,525 tons of aluminium in May. The cancellations started practically. instantly as buyers looked to move their metal. ISTIM had. 505,050 tons awaiting physical load-out by the end of June.
It's an echo of the 2010s, when the LME's load-out issues. triggered user outrage and drew the unwelcome attention of U.S. regulators, who would like to know why it would take 702 days to. take physical delivery from LME warehouses in Detroit.
Subsequent reforms to the LME system imply that such. self-perpetuating super-queues are no longer possible. What we. get now are what the exchange calls functional lines.
Which might not be much convenience for those late to the. aluminium logjam in Malaysia. They're not likely to see their. metal up until this time next year.
DOMINANT FOUR
ISTIM's capability to draw in such big tonnages to its. warehouses has actually made it a dominant presence in the LME delivery. system. The company was keeping 55% of all necessitated LME stocks. at the end of June.
The other 3 major gamers are Access World, C. Steinweg. and the Pacorini Group. In between them they were saving 92% of. total stock at the end of June and they presently account. for 344 of the overall 468 systems listed internationally.
This is likewise a throw-back to the last decade, when Metro. International, then owned by Goldman Sachs,. industrialised the queue model and constructed a dominant LME storage. position in Detroit.
Access World, gotten by Glencore in 2010, did the. exact same in the Dutch port of Vlissingen, creating a load-out. line of 771 days at one phase.
Smaller sized operators struggled to contend then, and clearly. they still do. Numerous who signed up with the LME warehouse company in. hope of getting a piece of the line action in the 2010s have. considering that withdrawn.
The variety of LME-registered warehouse operators has. declined from 36 to 25 over the last five years and that. consists of 9 that use LME services in a single location.
STORAGE FACILITY FOR (RE) SALE
The unsure status of Access World highlights the problems. that can be caused when LME stocks are focused in such a. small swimming pool of warehouse operators.
Glencore believed it had actually offered the business to Global Capital. Merchants (GCM), a company registered in the British Virgin. Islands, in 2022. Nevertheless, Access World is back on the sales block after the. purchasers stopped working to make full payment and Glencore is reportedly. hunting for new prospective owners.
Gain access to World warehouses held practically 12% of LME on-warrant. stocks at the end of June.
A DECADE OF REFORM
The LME, to its credit, has invested a great deal of time and effort. attempting to ravel the numerous wrinkles in its delivery system,. which - like whatever else on the 147-year-old exchange - is. rather unique from what you would discover in any other futures. market.
The queues have actually never ever truly disappeared however several tweaks. of the rule-book have at least constrained them and the amount. of cash that can be made from them.
The exchange has actually likewise massively boosted transparency around. its delivery network. A day-to-day registered stocks report has been. supplemented with month-to-month updates on off-warrant stocks, stocks. by warehouse operator and, obviously, queue length. This column. has actually drawn heavily on all of them.
Yet, simply just how much more efficient is the LME's shipment. network after a decade of reform?
A restricted number of operators still appear to control the. on-warrant storage service and 253 days is still a long time to. wait to get your metal.
The viewpoints expressed here are those of the author, a. columnist
(source: Reuters)