Latest News
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Hertz and Amazon Autos partner to sell used cars online
Hertz Global Holdings announced on Wednesday that its car sales division was partnering Amazon.com’s automotive retail platform Amazon Autos to sell used vehicles. The car rental company's stock rose 7% at the opening of trading. Avis Budget Group shares fell 6%. Carvana's shares dropped 4.2%. CarMax lost 1.4%. Hertz stated that the collaboration is a result of Amazon Autos recent expansion into used vehicle sales. Amazon Autos was launched last year by the company to extend its online retail platform to include pre-owned and used vehicles. The program has dealers participating in over 130 U.S. Cities. Hertz Car Sales and Amazon will offer their service within 75-miles of Dallas, Houston Los Angeles, and Seattle. They plan to expand this to all 45 Hertz Car Sales locations in the United States. Hertz Global, based in Estero, Florida, operates its car rental businesses through its Dollar and Thrifty vehicle-rental brand across 160 countries. It also operates a business for car-sharing in Europe. Hertz Car Sales, a brand of Hertz Car Sales, offers used vehicles for sale both online and in locations throughout the U.S. Hertz was forced to reduce its electric vehicle fleet by a large amount in recent years due to a fluctuating rental demand. Some customers have complained that the AI-powered sensors used to inspect returned vehicles for damage often misfired. Bill Ackman, the hedge-fund billionaire, increased his stake in Hertz to almost 20% earlier this year through his investment company Pershing Square. He expressed confidence in management's efforts over the next few years to reduce costs and improve profit margins despite continued tariff pressures. Reporting by Aatreyee dasgupta, Bengaluru. Editing by Pooja desai.
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Air Canada's labor agreement could reshape the pay of North American airline crews
The latest blow to airline compensation systems that do not pay fully for cabin crew's hours of work is a crippling strike by Air Canada Flight Attendants that halted thousands of flights due to unpaid wages and unpaid overtime. The union representing more than 10,000 Air Canada Flight Attendants announced on Tuesday that they had reached a tentative agreement to end unpaid work. Analysts believe that any gains made could have a positive impact on upcoming contract talks in North America. According to a union representative, the agreement would pay flight attendants an hour before narrowbody jet flights and 70 minutes for larger widebody planes, at half their normal hourly rates in year one. This rate will rise to 70% by year 4. Air Canada had previously offered to pay half the fare for 45 minutes of travel time for narrow-body jets and 60 minutes of travel time for wide-body aircraft. The deal may also increase structural costs in an industry that is cyclical. The second largest operating cost for airlines is labor. The four-day walkout that stranded over 500,000 passengers reflects unrest among U.S. carriers where flight attendants are not allowed to leave their jobs until the National Mediation Board gives permission. Last year, cabin crews from American, Southwest and Alaska Airlines rejected contract agreements because they didn't address their concerns over unpaid work. United Airlines flight attendants voted against a tentative labor agreement worth $6 billion last month, because it did not include compensation for the time spent on the ground prior to and after flights. Before returning to negotiations in December, the union of Chicago's airline is conducting a survey among its members. United and the union didn't immediately respond to comments. Cabin crews are paid for a certain number of hours. However, the majority of their compensation is given when planes are moving, ignoring important tasks such as boarding, deplaning and other ground operations. The unions claim that this is a significant amount of unpaid work. In the past, airline workers were able to secure concessions in contract negotiations because the industry was suffering due to economic downturns and pandemics. Flight attendants are resentful due to a rise in inflation, stagnant salaries, and an increased workload. This has fueled their demands for pay reform. The Air Canada strike is a positive for all negotiations. "It defined the problem of unreasonable expectations for flight attendants working without pay", said Sara Nelson. She is the international president of Association of Flight Attendants - CWA, which represents over 55,000 flight attendants on 20 airlines including United. The striking flight attendants inspire workers everywhere. Nelson spoke to Wesley Lesosky on Monday, the head of Air Canada’s flight attendants' union, in order to coordinate positions. Representatives of both unions confirmed this. Shanyn Elliott is an Air Canada Rouge flight hostess who said that when she began her job in 2017, she would take long-haul flights for extra money as the C$23 (16.60) per hour wage she earned did not cover living expenses. Elliott, the head of the strike committee of Air Canada flight attendants in the Canadian Union of Public Employees, added that frequent delays following the pandemic resulted in longer working hours. Michael Rousseau, CEO of Air Canada, said that the industry must review its compensation model. In an interview he stated that the Canadian carrier had accepted the concept for ground pay and added other airlines would likely examine their own models. Rousseau said, "I think that the industry needs to look more closely at this in time." "We should all be open to changes." American and Alaska compensate their attendants for the time spent boarding in their new agreements. American's flight crews are now compensated for the time between flights. These gains were made after Delta Air Lines - whose flight attendants do not belong to a union - instituted boarding compensation for cabin staff at half their hourly wage in 2022, when they tried to organize. COSTS ARE RISING The cost of operating airlines would be increased if passengers were charged for time spent on the plane and for boarding. American Airlines' new contract with flight attendants is estimated to cost an additional $4.2 billion in five years. Last month, the company blamed its underperformance on margins in part to increased labor costs. Matthew Lee, an analyst at Canaccord Genuity, estimates that the proposed wage increases at Air Canada could result in additional costs of up to C$140 millions. Air Canada's wages have increased by about 26% in the past year. A weak passenger flow to the U.S. is a problem for the airline, as are the strained relations between Canada and America. This has led to a 40% drop in profit quarter-over-quarter. Analysts warn that if you hold the line with costs, it could lead to industrial peace. John Gradek is a McGill University lecturer on supply networks and aviation. He said, "The movement has begun."
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Urban farmers in the U.S. use vacant buildings to grow crops
Vertical farmers offer hyper-local food Locales are increasing their incentives to encourage operations Urban revitalization can be achieved by using smaller, modular systems By Carey L. Biron Localized food production is a way to produce food close to people, rather than shipping it in from far away. "Rather than move food around the globe, we'll simply move farms," said Falkowitz. Falkowitz is CEO and cofounder of Area 2 Farms in Arlington, Virginia, a vertical farm operation located outside the U.S. capitol. He said, "Our goal is to build many small organic farms for people within 10 miles of these farms." This would be a significant change for a country in which fresh produce is produced on average 1,500 miles away from where it will be consumed. Climate change is expected to put pressure on these patterns. Small-scale vertical agriculture can increase the nutritional value of the produce by controlling the environment and providing fresh food in areas that are poor. It also reduces the carbon footprint associated with the transportation system. Arlington's Area 2 Farms operation is partially automated with containers filled with soil rotating 18 feet up to the ceiling. The crops receive artificial LED lighting, water, and nutrients according to a schedule. A few workers are responsible for inspecting the crops, planting new containers, and harvesting. The company has moved into an old paper warehouse two years ago, where they have been growing dozens and dozens of different crops, including herbs, greens and root vegetables, for distribution each week to 300 families. Officials in Washington, Chicago, Baltimore, Maryland, Virginia, California, and Missouri have all created tax incentives and other incentives. Arlington's Area 2 Farms benefitted from a zoning change in 2023 that aims to increase access to fresh produce and reduce the carbon footprint, as well as provide "an additional tool for occupying vacant office space", said Rachel LaPiana. She is the communications manager at the county's Planning Department. The company plans to test out the model at an abandoned gas station located in Fairfax County. Vertical farming operations at a large scale are facing financial difficulties, due to unrealistic expectations and an overreliance on technology. This is according to Christine Zimmermann Loessl of the Association for Vertical Farming. She said that the small-scale method is essential as urban farmers learn how to produce food richer in protein and create successful financial models. She said. Vertical farming is a great way to grow food. POTENTIAL MULTI BILLION DOLLAR MARKET According to the U.S. Department of Agriculture, vertical farming is part of an indoor "controlled-environment" trend that has doubled in size between 2009 and 2019. In 2023, the U.S. market for vertical farms was estimated at $735 million. It is expected to reach $2.5 billion in the next decade. Some questions have been raised about the approach's resource usage. The researchers of a Dutch study conducted last year were skeptical about the "climate-smartness" of the operation, despite its water efficiency. David Kopsell, horticulture prof at Illinois State University, says that urban farming may be an important resource for the future, given climate change and resource scarcity. He said: "You'll be able bring food production to areas where there could be problems due to soil type, contamination of the soil, or temperatures." Kopsell finished the vertical farm in July to grow herbs and teach students for the campus dining services. Sarah Stevens a graduate student in Agricultural Business who helped to set up the system said that seeing its potential was dramatic. "When you are a gardener you plant a small seed and harvest 80 days later. Stevens said, "You plant a little seed and harvest within five weeks." Tackling FOOD DESERTS Mike Johnson, an urban farmer, said that he saw an opportunity in a low-income area of Washington, across the Potomac River, to address the issue of food deserts. In these areas, there are no grocery stores selling fresh produce. In some Washington neighborhoods only one grocery store, with limited selections of fresh fruits and veggies, serves tens or even hundreds of thousands of residents. Johnson said that vertical farming can help but that the start-up costs, which may reach hundreds of thousands of dollar are an obstacle. In a shipping container at a local homeless services non-profit, his company, Our Farm DC produces about 100 pounds per week of fresh food, which is then made into salad kits and sold locally. The company is also working on small hydroponics systems that can be placed in public spaces like schools and office atriums. He said that these systems could occupy a lot of space. It democratizes this and allows us to have more growing space.
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Freeport LNG in Texas recovered from second brief decrease this week, LSEG Data shows
LSEG data indicated that the U.S. liquefied gas company Freeport LNG was on schedule to receive more natural gas in Texas on Wednesday. This is a sign of a likely end to a second temporary outage at its liquefaction train this week. Freeport LNG is closely watched by the global market because its start-ups and stop-ups often cause price fluctuations. Gas prices in the U.S. typically drop when flows to Freeport decrease due to a lower demand for fuel from the export facility. Prices in Europe usually rise due to the drop in LNG supply available from the plant to global markets. The U.S. prices fell to their lowest level in nine months on Wednesday, due to a reduction in gas flow to LNG export facilities. The prices in Europe were not affected by Freeport, but other factors. Freeport informed Texas environmental regulators that Train 2 of the three liquefaction train at its plant shut down on Tuesday because there was a problem with the compressor system. Freeport announced on Monday that Train 1 was also closed at the plant due to an issue with a compressor Sunday. Freeport officials were not available to comment immediately. LSEG reported that the amount of gas flowing into Freeport on Wednesday was on track for a 1.9 billion cubic foot per day, an increase from a low of 0.7 bcfd two weeks ago. This compares to an average of 1.9 billion cubic feet per day last week. Three liquefaction plants at Freeport can convert about 2.1 billion cubic feet per day of gas to LNG. A billion cubic feet of natural gas can supply five million U.S. households for one day. (Reporting from Scott DiSavino. (Editing by Jan Harvey, Mark Potter and Jan Harvey)
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Canada - August 20
These are some of the most important stories in selected Canadian newspapers. These stories have not been verified and we cannot vouch for the accuracy of these stories. THE GLOBE AND MAIL Trez Capital Mortgage Investment has halted redemptions for five of its funds. This is the latest example where an alternative money manager struggles to meet investor demands. The Bruce Power Nuclear Facility, located in Tiverton, Canada is planning to install a second system that will significantly increase the plant's capacity to produce cancer-treating isotopes. Alberta has made changes to the COVID vaccination program, allowing health care workers to receive shots for free. However, most Albertans still will have to pay. NATIONAL POST CUPE, the union representing flight attendants at Air Canada who were on strike, has filed a lawsuit against the federal government. The suit seeks to prevent the government from using the controversial legal tool that the Liberal government employed to force the striking flight attendants to return to work. (Compiled Bengaluru Newsroom)
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Karachi, Pakistan's financial hub, is hit by torrential rainfall and flooding
Officials in Pakistan announced a holiday for Wednesday as the capital city of Karachi braced itself for further rain. The annual monsoon had caused flooding and killed at least seven people, according to officials. In recent days, the monsoon rains have caused havoc in Pakistan. The death toll of flash floods which struck the mountains northwest on Friday has risen to 377. Abdul Wahid Halepoto is the provincial government's spokesperson. He said that since Tuesday when the rains started in Karachi (a southern port city), at least seven people had died. In some areas of Karachi, Pakistan's biggest city with more than 20,000,000 residents, rainfall levels were unprecedented in recent years. Halepoto stated that drownings, road accidents and building collapses are the main causes of death. The authorities ordered the closure of educational institutions and offices. Anjum Nadir, the spokesperson of the provincial meteorological office, said: "We expect more intense rains." He said that the rain on Tuesday varied between 80 mm (3.15") and 178mm (7.01") in different areas of the city. Nazir reported that the area surrounding the airport had received 163.5 millimeters of rain. This is the highest rainfall recorded in the area since 1979. In the northeast, 178 mm was recorded. This is the highest amount of rainfall since the station was established there five years ago. Officials said that the rain disrupted flights, power, and mobile phone service. Local television footage showed houses and cars submerged in water, as well as vehicles and other vehicles floating along streets. Karachi Electric stated that the sudden downpour caused some disruptions to its distribution system. The city's waterlogging, congestion and access issues posed significant challenges to restoration efforts, said its spokesperson. He said KE team members were able restore most of the electricity feeders in eight to twelve hours. Murtaza Wahab, the mayor of the city, told a news conference that rescue workers, volunteers, and government agencies helped with relief efforts. He said, "We're using all of our resources to restore services and clear the roads." Wahab stated that the rain overwhelmed the city infrastructure. He added that the drainage system can handle up to 40 mm of rain and anything over that will cause flooding. Mumbai, India's capital of finance, has also experienced heavy monsoon rainfall, with parts of the city receiving as much as 875 mm in the five days before August 20. On Wednesday, many schools were closed in the city for a second day. Train services were also disrupted. Residents were asked to stay indoors as the forecast called for more rain. Reporting by Ariba Shahzad and Asif Shahid in Islamabad, and Shilpa jamkhandikar and Alex Richardson in Mumbai. Writing by Asif Sharzad. Editing by Kate Mayberry & Alex Richardson.
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Uganda negotiates debt finance for 85% planned $3 billion rail project
A senior official revealed on Wednesday that Uganda was in discussions with credit export agencies and development finance institutions to have 85% a planned rail project funded with debt. This is due to concerns about the already high public debt. In October of last year, Turkey's Yapi Merkezi was awarded the contract for the construction of the 2.7 billion euro ($3.15 billion) rail. Preliminary works have already begun. Perez Wamburu said that some of the potential financiers are the OPEC Fund for International Development (FIDA), the Africa Development Bank, the Islamic Development Bank, and some European export credit companies. Wamburu stated that the debt financing discussions were at an advanced stage and are expected to be concluded soon. He said: "The potential financiers are readily available... The Finance Ministry is actively engaging with them, and financial closure should come soon." Wamburu, the Ugandan minister of finance, said that the government has allocated $75 million for funding preliminary work and will fund 15%. The 272-kilometre line (169-miles) is the first segment of a planned 1,700 km rail line for the landlocked country in east Africa. The railway will connect the Kenyan border at Malaba with Uganda's capital Kampala. Reporting by Elias Biryabarema, Editing by George Obulutsa & Bernadette Baum. $1 = 0.8580 euro
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China and Afghanistan hold discussions on belt and Road participation, mining
The Afghan Taliban Foreign Ministry reported that China informed Afghanistan on Wednesday of Beijing's interest in exploring and mining mineral deposits in Afghanistan and its desire for Kabul to join the Belt and Road Initiative. The Chinese Foreign Minister Wang Yi visited Kabul on Tuesday and met with Afghanistan's Acting Foreign Minister Amir Khan Muttaqi. According to a ministry statement, both countries want to expand their cooperation in various areas. According to an Afghan statement, Wang stated that both countries are working together to remove barriers in the trade of agricultural products and to increase Afghanistan's imports from China. It said that Wang Yi had also stated that China intended to begin practical mining activities in this year. Beijing has not yet released its summary of the discussions. China appointed the first ambassador to Afghanistan during the Taliban regime and sought to strengthen its relationship with the hardline Islamists who took over the war-torn nation in 2021. Analysts say that the impoverished country is rich in mineral deposits such as copper, iron, and lithium. This could help Beijing improve its supply chain security. (Reporting and writing by Mohammad Yunus Yawar, editing by YPrajesh).
Nordic postal operators stop shipments to US after Trump ends parcel tariff reduction
Posten Bring, PostNord and the Norwegian-Swedish-Danish postal group Posten Bring are halting parcel shipments into the United States in anticipation of the closing of an American customs tax loophole which allows duty-free entry to low-value packages.
The U.S. administration of Donald Trump announced last month that it would suspend global "de minimis", which allows minimal paperwork for international shipments below $800, effective August 29, 2018.
PostNord, owned by the Swedish-Danish governments, said that it temporarily stopped shipments due to the short period of time to adapt to new requirements.
Financial markets around the world have been shaken by Trump's policies.
According to the White House, under the executive order that suspends the "de minimis exemption", low-value packages shipped to the U.S. are subject to "all applicable duty".
Posten Bring, the state-owned postal company in Norway, said that "the details surrounding this issue have not been clarified yet by U.S. Customs authorities and no system solution has been developed for postal companies to use."
The European postal industry is working to achieve clarity. (Reporting and editing by Terje Sosvik, Alex Richardson and Anna Ringstrom)
(source: Reuters)