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Judge prevents Trump administration from withholding funding for EV charger infrastructure
On Tuesday, a U.S. court temporarily prevented President Donald Trump from withholding funds that were awarded to 14 States for the installation of electric vehicle chargers. U.S. District Court Judge Tana Lin ruled in Seattle, Washington that the states are likely to win a lawsuit alleging the federal government illegally withheld billions of dollars from states to build EV charging station. In February, the U.S. Transportation Department suspended its EV charging program. It also revoked state plans pending a thorough review. Lin's decision did not apply District of Columbia and Minnesota, who also sued the Transportation Department over the revocation of funding, but failed to provide any evidence that the Transportation Department's decision would cause them immediate harm. Lin's decision will come into effect in seven business days. This will give the Trump Administration time to appeal her ruling and ask an appellate Court to block its effect. (Reporting and editing by Sandra Maler, Jamie Freed and Kanishka Singh)
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FedEx's profit forecast is below analyst target; shares fall 5% after-hours
FedEx's forecast for the current period fell short of the analysts' expectations, sending the shares down by more than 5% after-hours. According to LSEG data, the Memphis-based firm forecasts a fiscal first quarter adjusted loss of $3.40 to $ 4 per share. This is below analyst estimates of $4.06 a share. The firm's better-than expected results for the fiscal quarter ending May 31 were overshadowed by the outlook. Cost cuts and increased export volumes drove operating margins up. The adjusted profit for the fourth quarter fiscal ended May 31 was $1.46billion, or $6.07 a share. This is up from $1.34billion, or $5.41 a share, one year ago. The revenue was only up 0.5% at $22.2 billion. According to LSEG, analysts expected an average earnings per share of $5.81 on revenues of $21.79 billion. FedEx and United Parcel Service, a rival company, are considered economic bellwethers. They work with almost every type of business around the world and can spot trends in business before they become widespread. Businesses around the world are dealing with uncertainty about U.S. policies on trade and regional tensions, including Israel's recent attack on Iran. FedEx and UPS are locked in a battle for market shares, as demand has stagnated from Manufacturers Other industrial customers. As many customers as possible have squeezed delivery profits Downshifted From fast and expensive air services to slower and lower-cost ground transportation by trucks or trains. FedEx and UPS both used the air volume of China-linked bargain vendors like Temu Shein and to help. Replace lost business-to-business volume. But after a Botched Early this year, the Trump administration made an attempt to halt the terrorism. The end of duty-free for direct-to-consumer The Chinese government has stopped millions of air parcels sent by Temu, Shein, and other retailers. Reporting by Lisa Baertlein from Los Angeles, and AbhinavParmar from Bengaluru. Editing by Margueritachoy and David Gregorio.
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FedEx Cost Cuts boost Quarterly Profit Above Wall Street Target
FedEx posted a better-than expected quarterly profit after cost reductions and increased export volumes drove operating margins up. The company signaled caution with a forecast that fell short of the analysts' target for the current quarter. Memphis-based package delivery company's adjusted profit for the fourth quarter fiscal ended May 31 was $1.46billion, or $6.07 a share. This was an increase from the adjusted profit of $5.41 per shares, or $1.34 billion a year ago. The revenue was only up 0.5% at $22.2 billion. According to LSEG data, analysts expected an average earnings per share of $5.81 on revenues of $21.79 Billion. FedEx expects a fiscal first quarter adjusted income of $3.40-$4 per share. This is below the analysts' expectations of $4.06 per shares, according to LSEG. Reporting by Lisa Baertlein, Los Angeles; Abhinav Paramar, Bengaluru; Editing by Marguerita Chy
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Spirit Airlines urges US not to accept JetBlue and United partnership
Spirit Airlines urged Tuesday the Transportation Department not to approve a JetBlue Airways-United Airlines partnership. Spirit Airlines said that it would be anticompetitive, and encourage other large airlines to do similar deals. United and JetBlue announced in May that their "Blue Sky," tie-up will allow travelers to earn and use points from their frequent flyer program interchangeably on the websites of both carriers. Spirit, a budget carrier, said that the JetBlue deal would make the smaller airline a "de facto vassal" of United. Spirit stated that "this anti-competitive tie up involving a legacy carrier dominant in the market will neutralize any competitive advantage of a low-fare competitor." JetBlue claimed that the filing "misrepresents Blue Sky, and twists facts about JetBlue's and United's plans to deliver services for customers." JetBlue stated that the agreement "doesn't include revenue sharing or schedule coordination." JetBlue and United are still competitors, as each company will continue to price and market flights under its own brand, using their own flight numbers. United declined to make a comment. In March 2024 JetBlue and Spirit are no more After a U.S. Judge blocked the deal due to anti-competition fears, a $3.8 billion merger was agreed. Spirit said that American Airlines and Delta Air Lines would "almost certainly" seek similar agreements if the partnership was approved. Smaller carriers could feel forced to join, creating a more concentrated industry. American and Delta have not yet commented. JetBlue has agreed to provide United with slots at New York’s John F. Kennedy International Airport, for up to seven round-trip daily flights beginning in 2027. JetBlue and United, the six largest U.S. carriers, will exchange eight flight times at Newark in New Jersey. United will move certain holiday and travel services over to JetBlue Paisley. JetBlue is seeking partners after a federal court judge blocked its Northeast Alliance American Airlines will be launching in 2023. JetBlue is struggling to achieve sustained profitability following the COVID-19 epidemic. In the last nine quarters, it has only managed to make a profit twice. (Reporting and editing by Franklin Paul, Leslie Adler and David Shepardson)
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Black box of crashed Air India Jet still in India: ANI
The black box from the Air India plane that crashed in India, killing 271 people, is still there and being examined by an aircraft accident investigation team, according to ANI, citing Ram Mohan Naidu, the civil aviation minister. Naidu made his comments after a report in the media that the flight data recorder would be sent to the United States of America for analysis. According to a post by ANI on the social media platform X, Naidu stated that the black box of the crashed AI 171 plane is still in India. It is being examined and analyzed by the Aircraft Accident Investigation Bureau. The crash on June 12, in Ahmedabad in India, was the worst aviation accident in a decade. The Indian government announced on Thursday that the AAIB would make a "due evaluation" of technical, safety and other security concerns before deciding where to decode the recorders. Jennifer Homendy, chair of the U.S. National Transportation Safety Board, told Washington reporters on Tuesday that "excellent communication" had been established with the Indian Government, Ministry of Civil Aviation and our counterparts at the AAIB. Homendy refused to comment when asked where or when they will be read, if the recorders would be coming to the United States, or if officials have any concerns. Homendy explained that this is something to be resolved. When it comes to aviation, learning and obtaining information quickly after an incident is a crucial part of the investigation process. So, clearly, that's going help us glean additional information to ensure that, "Is there a security issue or safety defect that needs to addressed?" Homendy declined to comment whether either recorder was damaged. Reporting by Abhijith Gaapavaram, New Delhi; and David Shepardson, Washington. Editing by Andrew Heavens & Matthew Lewis.
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Senate Democrats reject Trump's nominee for head of Federal Aviation Administration
The Senate committee that oversees aviation, which is composed of senior Democrats, said on Tuesday that they would oppose the nomination to the Federal Aviation Administration of Bryan Bedford as CEO of Republic Airways. The top Democrat in the Commerce Committee and the ranking member of its aviation subcommittee Senator Tammy Duckworth have both said that they will vote against Bedford’s nomination at the Wednesday committee meeting. Bedford's refusal of to adhere to the 1,500 hour training rule for copilots was cited by both. Bedford refused to commit earlier this month to not change the rule on flight training. Bedford criticised the FAA in 2022 for rejecting Republic's petition because it only allowed 750 hours instead of 1,500. Bedford, a former administrator, said in a statement earlier this month: "I will never compromise safety." Bedford's spokesperson did not immediately respond to a request for comment. After a midair collision between an American Airlines jet and a U.S. Army chopper near Washington Reagan National Airport on January 29, calls to modernize our nation's air-traffic control system increased. The 67 passengers and crew aboard the aircraft were all killed. In part, the regulations to increase flight hours for copilots were a result of the February 2009 crash in Upstate New York of Colgan Air Flight 3404 that killed 50 people. This was the last fatal U.S. passenger airline crash until the mid-air collision of January. Bedford has strongly criticized the FAA for serious issues with leadership, culture and trust. Maintain strict oversight of Boeing Mike Whitaker was unanimously elected as FAA Administrator. Confirmed to a 5-year term by October 2023 When Trump became president, on January 20, he resigned. The Trump administration Wants at least $20 billion Redesigning air traffic control The FAA has facilities that are at least 50 years old. Aging systems have caused delays on numerous occasions. Flights have been delayed by a persistent controller shortage. Many controllers work six-day weekends and mandatory overtime. (Reporting and editing by Deepa Babyington, Deepa Shepardson)
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US envoy plays down Africa tariff, visa concerns, reaffirms Lobito rail commitment
The top U.S. Diplomat for Africa dismissed Tuesday allegations of unfair U.S. Trade Practices and said that delays in funding would not derail an important railway project connecting Angola with Zambia and the Democratic Republic of Congo. African Union officials questioned on Monday how Africa could strengthen trade ties with America under what they called abusive tariff proposals and tightening of visa conditions that primarily target travellers from Africa. "There is not a visitation ban," said Ambassador Troy Fitrell during a Luanda Business Summit press conference. He stated that the U.S. Consulates continue to issue visas, though some have shorter validity periods because of concerns about overstays. Since late 2023, several African business and political leaders are concerned about the sharp decline in visa approvals. This is especially true for travelers from West Africa. Washington's tariff plans also contributed to the cooling of diplomatic relations with African countries. Some economies, including Lesotho Madagascar, warned that even an initial 10% tax could threaten vital exports like apparel and minerals. Fitrell, however, said that the proposed U.S. tariffs on imports had not yet been implemented and that negotiations were underway to create a more mutually beneficial trading environment, such as through the renewal the African Growth and Opportunity Act. The initiative, which grants duty-free access for African countries to the U.S. Market and expires in September, will grant qualifying African nations duty free access. Fitrell reaffirmed the commitment of his country to the Lobito Corridor Railway Project, which connects the coast of Angola to Zambia's copper-rich region and the Democratic Republic of Congo. He said that the initiative was not in danger, calling it a "win-win situation" for U.S. Investors and African economies. He also highlighted its importance for regional integration. The Trump administration is cutting back on U.S. aid to Africa as part of its plan to cut down on wasteful spending. Joao Lourenco said that U.S. businesses should move away from aid and instead focus on partnerships based on investment, while addressing over 2,000 leaders in government and business at the summit. Lourenco stated that it was time to replace aid logic with investment and trade logic. He urged diversification in sectors like automotive manufacturing, shipbuilding and tourism as well as cement and steel production. Reporting by Miguel Gomes. Colleen Goko wrote the article. (Editing by Alessandro Parodi, Mark Potter and Mark Potter).
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Official: 400 passengers left Israel via US-assisted flights
A senior State Department official stated on Tuesday that the United States had helped around 400 U.S. Citizens and others fly out of Israel amid conflict with Iran since Saturday. They hope to accommodate even more in the days to come. "We are very aware that there is still capacity and that U.S. citizens still want to leave Israel. The airspace has not been reliably opened. The official stated that the situation is "extremely dynamic". An official stated that the State Department now shares information with 27,000 people about safety and security in the region, as well as leaving it. This is up from the 25,000 who received the same information last week. On Saturday, the U.S. began limited assisted departure flights for U.S. Citizens, Lawful Permanent Residents and their immediate families. Officials said that thousands of Israelis had left Israel by land for Jordan and several hundred others had left via Egypt in the last two days. A few thousand Americans have travelled to Cyprus by ship, mostly through Birthright and other private groups. The official confirmed that hundreds of Iranians have left through Azerbaijan. Turkmenistan had been preventing U.S. citizens from entering the country, but has now allowed them to enter after diplomatic efforts over the weekend. The State Department has heard reports that a few Americans have been detained by Iranian authorities in this case, but the official did not provide any additional information. Donald Trump, the U.S. president, announced on Monday Israel and Iran reached a ceasefire agreement despite violations being reported. Israel launched a surprise strike on Iran's nuclear sites on June 13 and killed the top military commander. In Israel, 28 people have been killed by retaliatory rocket strikes. Reporting by Daphne Psaledakis, Editing by Kevin Liffey
Wall St closes sharply higher as Middle East tensions ease
U.S. stock prices rose more than 1% Tuesday, as investors welcomed the fragile truce between Israel and Iran. They also listened to Federal Reserve Chair Jerome Powell’s testimony before Congress for clues about how the U.S. Central Bank will proceed.
The three major U.S. indexes ended their second session in a row with solid gains after U.S. missile attacks on Iran's uranium-enrichment facilities.
The benchmark S&P 500 is now within striking distance of the all-time high it reached on February 19,
Donald Trump, the U.S. president, announced late Monday that Israel had violated a ceasefire agreement.
Investors viewed the rhetoric of a cease-fire as a sign that tensions were deescalating.
Greg Bassuk, CEO of AXS Investments New York said: "The bulls have gotten out of their bucking shots." The cease-fire is really fueling the stock market rally. Investors are betting that the calm in the Middle East will be a boon to stocks, even though it is weighing down oil and bond prices.
Crude prices fell on the back of waning concerns about supply due to the conflict. This dragged energy shares down.
Powell reiterated before the U.S. House of Representatives Financial Services Committee that rate cuts could wait until the effects of tariff increases were better understood. He added "we are in a good position to wait and learn more about the course of the economy, before we consider any adjustments to our policies."
The financial markets are pricing in more than a 20% chance that the Fed will reduce its key rate at the end of its policy meeting in July, and nearly 70% that it will make its first rate reduction in September.
Consumer confidence has declined on the economic front this month. Pessimism towards the job market is at its lowest level since march 2021.
Bassuk said that "consumer confidence" was low. "And we see that these economic data are casting a shadow on the strength of the U.S. Economy, this is another factor pointing towards greater likelihood of Fed rates being cut this year."
On Thursday, the Commerce Department will release its final report on first-quarter gross domestic product (GDP), and on Friday, its closely-watched Personal Consumption Expenditures Report (PCE) will shed some light on inflation and consumer spending, as well as income growth.
Preliminary data shows that the S&P 500 rose 67.34, or 1.20%, to 6,092.51 while the Nasdaq Composite climbed 283.62 or 1.45% to 19,914.59. The Dow Jones Industrial Average grew 510.19, or 1.2%, to 43091.97.
Tesla was the only megacap stock to underperform amongst the "magnificent Seven" group.
The stock market has risen amid a cooling of Middle East tensions.
But defense stocks lost ground. Lockheed Martin, RTX Corp. and RTX Corp. both closed lower.
After bitcoin reached a new high, shares of Coinbase Global (formerly MicroStrategy) and MicroStrategy soared.
Broadcom reached a new record after HSBC upgraded the semiconductor manufacturer from "hold" to "buy".
After the closing bell, FedEx will report its quarterly results.
(source: Reuters)