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Boeing builds trust with airline bosses as they see improved jet quality
Airlines are tentatively showing greater confidence in Boeing’s ability to produce jets of the highest quality, a move that could help the planemaker repair years of damage to its reputation. The annual airline summit in New Delhi, held this week, struck a more positive tone regarding Boeing's recovery after overlapping safety, industrial and regulatory crises. However, executives also stressed that Boeing had much work to do. Alaska Airlines CEO Ben Minicucci, who is based in Seattle, told the International Air Transport Association annual meeting that "we've seen an improvement quarter-to-quarter in safety and an improvement in our quality." "Are they there yet? There's still much work to be done. A door that was missing four bolts blew a new Alaska Airlines Boeing 737 MAX off at 16,000 feet in January of last year. The incident caused ripple effects throughout the industry, affecting suppliers, carriers, and passengers. At the IATA annual meeting, airline critics are often heard. Last year, IATA chief Willie Walsh urged Boeing to take lessons from mistakes that led to a crisis that began with two fatal crashes of MAX jets between 2018 and 2019. Tim Clark, President of Emirates, Boeing's largest customer, has recently been one of its most vocal critics. Clark's annual press conference at the summit was more positive this year. He spoke of getting "clearer" messages from Boeing's newly appointed leadership. He said he never met Ortberg’s predecessor Dave Calhoun, but praised the change in style. He said, "It was great to meet the CEO of Boeing." Clark, whose carrier has ordered 205 of the 777X, which is still not certified, in private, expressed growing confidence by Boeing. He said, "I haven't seen any of the cautious optimism I was referring to in the past few years." Ortberg, the new CEO, took over in August last year. He has promised to address safety and product quality issues and restore trust among regulators, employees and customers. Boeing customers reported that the measures have shown some results. Boeing has made improvements to the quality of its deliveries and is working hard to increase production. Peter Barrett, CEO at SMBC Aviation - a major Boeing customer and lessor - said that there is still a long way to go, but the story is improving. Airline Inspectors Boeing's recovery is not taken by many as a given. Alaska Airlines sent its own quality inspectors on Boeing's production line and ordered a quarterly audit. Alaska's Minicucci stated that Boeing had undertaken a "very meticulous, deliberate process" in order to reduce the out-of sequence work. This disruption in normal factory flow was blamed for part of the oversight. He said that Ortberg who moved to Seattle in order to be nearer the largest jet plants and Boeing Commercial Airplanes' CEO Stephanie Pope appointed last March regularly tour factories. Minicucci stated, "They are getting out, they are walking the floor and they feel what is going on." "I don't think it is the same as in the past." Other customers have noticed progress despite the brutal strike that halted Boeing's jet production last year. Scott Kirby, CEO of United Airlines, who was part of the revolt among U.S. carriers that led to Calhoun's departure after the Alaska incident last week, claimed Boeing had "turned a corner". Work Remains to Complete Recovery Few airline chiefs are still in denial about the magnitude of the turnaround required to restore Boeing factories' status. "When I went there last year... "I thought it was going nowhere with this rate," Clark said. He added that he would be returning this year to check out the progress. Boeing has declined to comment specifically on airline opinions. The airlines are not going to ease off their pressure on each other as they wait for the new jets just because the public is more positive. Boeing's production is slowly stabilising, according to several airline executives who attended the IATA event. Brad McMullen, Boeing's Senior Vice President for Commercial Sales, said: "We still have a lot to do but customers are very positive about our performance during the first five month of the year." The regulators will now be evaluating the higher production after Boeing reached a temporary limit of 38 MAX aircraft per month. It is also seeking certification for models such as the 777X. On Wednesday, the acting director of the Federal Aviation Administration stated that a higher output was not going to happen immediately. Clark, who was originally due to receive the upgraded 777X by 2020, had little hope that the jet would be delivered before the next IATA meeting in June of this year. Boeing says it will now be delivered in 2026. Clark stated that the important thing was that the aircraft would be certified according to the new Boeing's requirements: safety, new building methods and quality control. (Reporting and editing by Elaine Hardcastle; Reporting by Rajesh Kumar Singh)
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Aeroflot, the Russian airline, will settle on deals for the last 36 aircraft leased by West
Aeroflot's head Sergei Aleksandrovski said in a Russian newspaper that the airline expects to reach settlement agreements with Western insurance companies and leasing firms for the final 36 aircraft out of a total 228 planes it has agreed to purchase. AerCap, BOC Aviation and other aircraft leasing companies have reached settlements totaling at least $2.7billion with Russia for more than a quarter (400) of the approximately 400 aircraft that are stuck in Russia since Moscow invaded Ukraine in 2022. "Only 36 aircraft are left, and they are in the active settlement phase for insurance. In essence, these are the final planes that need to be settled by foreign lessors, he said. Aleksandrovski said that Aeroflot anticipates the agreement on the 36 aircraft to be finalised by May or July of this year. In previous agreements, international lessors had transferred ownership of planes to the Russian state-owned insurance company NSK. This company used budgetary state funds to purchase and transfer these planes to Russian airlines. Aleksandrovski did not reveal the value of the agreement, but said that government money will not be used to purchase these 36 aircraft. Aeroflot will pay the settlement from its own funds and borrowings. (Reporting and editing by Alexander Marrow, David Evans, and Gleb Stolyarov)
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UK Market Exodus - Companies who have moved from London Listing
Wise, a British money transfer company, became the latest UK-listed firm to announce its intention to move to the U.S. Due to Brexit and investor resistance, a growing number of companies are rethinking or changing their plans to list on the London Stock Exchange. This is due to pressures placed on UK market valuations by Brexit-related issues. They have instead chosen to list in the U.S. or other markets where they perceive a stronger market and higher valuations. Cobalt, the metals investment company backed by Glencore, has scrapped plans to list in London According to one source the lack of demand was responsible for the decline in sales on Wednesday. This would be the largest London market debut since Air Astana listed in February 2024. Indivior: On Monday, the drugmaker announced that it would cancel its secondary listing at the London Stock Exchange with effect from July 25. It cited cost savings and its desire to align itself more closely with operations in the United States. The pharmaceutical company, worth 1.70 billion pounds ($1.25 billion), will continue to list on Nasdaq. BHP, the world's biggest miner in terms of market value (125.10 Billion dollars), made Australia its primary stock exchange when it terminated its dual-listing structures in 2021. When it left London's stock exchange, the company was ranked second by market value. Unilever, the Ben & Jerry’s maker, chose Amsterdam in February as its primary listing. The company, which had a turnover in 2024 of 9.47 billion euros (8.3 billion euro), will also have secondary listings in London, and New York. Glencore: In February, the Swiss miner announced that it was looking at moving its primary listing away from London. New York, which has a market capitalization of 34.5 billion pounds for the company, was the first option that it considered. Three sources familiar with the matter said in May that Shein, the online fast fashion retailer, is working on a Hong Kong listing after its London IPO failed to get the go-ahead from Chinese regulators. Shein, however, had sought a New York listing before attempting to list in London. This was part of Shein's efforts to gain credibility as a global company rather than one that is Chinese, and to have access to large Western investors. Ashtead, the second largest equipment rental company in America, announced in December that it planned to move its listing from London to New York. Ashtead, which has a market cap of 18.3 billion pounds and is listed in London, became a major U.S. company in the early 2000s. Just Eat Takeaway, the Amsterdam-listed food delivery service, delisted from London Stock Exchange last December. The company cited efforts to reduce administrative costs and regulations. The company's market value is 4,05 billion euros. Flutter Entertainment: In 2024, FanDuel's owner moved its primary listing from the US to the New York Stock Exchange. This was just a few short months after adding a secondary listing. CRH - The building materials solution provider with a market value of $61.29 billion switched to the NYSE as its primary listing in 2023. It will continue to maintain a standard listing at the London Stock Exchange. Arm Holdings, a UK-based designer of chip technology, chose Nasdaq to host its largest IPO in 2023. The company was listed in London from 18 years until 2016, when SoftBank acquired it for $32 billion. It is now worth just over $138 Billion.
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Wall Street's potential losers and winners from Trump's new tax bill
Analysts examine the impact of President Donald Trump's tax-cutting and spending package on U.S. businesses if it becomes law. What Trump has dubbed a "big, beautiful bill", narrowly passed the Republican-controlled House on May 22. The bill aims to extend the tax breaks for multinational corporations, which were set in Trump's first year of office and are due to expire by 2025. The bill is expected to fulfill Trump's populist election promises, such as a crackdown on immigration and the ending of some green energy incentives. Tax breaks are expected to have a positive impact on the U.S. Stock Markets, although some analysts only see a modest increase. Morgan Stanley analysts wrote in a recent note that the changes would only have marginal effects on equity performance. The Congressional Budget Office reported on Wednesday that the overall bill will add approximately $2.4 trillion to U.S. government debt of $36.2 trillion. The following list includes industries and companies likely to be affected: Winners of the AEROSPACE and DEFENSE Awards Investors could be interested in investing again in defense companies as the new legislation aims to increase spending on air and ballistic missile defense, munitions, and border security. Chris Haverland is a global equity strategist with Wells Fargo Investment Institute. We currently rate industrials as neutral. There will be some offsets, but the defense sector should benefit. Brian Mulberry is the client portfolio manager for Zacks Investment Management. He named defense contractors RTX, and General Dynamics, as potential beneficiaries. The iShares US Aerospace & Defense ETF has reached new highs. RENEWABLE ENERGY – LOSERS The shares of U.S. Solar companies fell on May 22 as the bill seeks to cancel funding for grant programs that were created under the Biden Administration in the 2022 Inflation Reduction Act. Dave Grecsek is managing director for investment strategy and research of wealth management firm Aspiriant. "We might have some downsides to renewable energy, but most of them are already priced in." First Solar, Enphase Energy, and Sunrun all have a negative profit for the year. HEALTH INSURERS – LOSERS Fiscal hawks are pushing for funding cuts in order to offset the tax component of the bill. The reductions in Medicaid funding may also transfer the costs to local and state governments who are likely to be burdened with increased health care expenses. Morgan Stanley stated that this could lead to significant revenue losses for hospitals and potentially pressure the credit quality of state and nonprofit municipal health care bonds. The focus will be on the shares of major health insurance companies CVS, Humana and UnitedHealth. The S&P 500 Managed Healthcare index is down by 30.6% for the year. HOUSING & REALAND - LOSERS BofA Global Research stated that it expects rates to stay high if the bill doesn't address deficit reduction in a meaningful way. It also identified several companies who could be negatively affected by higher rates. BofA Global Research has said that SBA Communications Equinix, and Alexandria Real Estate Equities, are among the companies with real estate links at risk. Homebuilders must take a hit to their margins to make the home more affordable. This is a simple way to translate how fiscal stimulus has a negative impact on the stock market, said Viresh KANABAR, macro strategist at Macro Hive. DOMESTIC PRODUCERS – WINNERS The bill includes legislation that extends or expands the Tax Cuts and Jobs Act provisions, which are due to expire by 2025. These provisions include a 100% bonus on equipment investments, an immediate deduction for domestic R&D expenses, and a looser approach to business interest expense through 2029. BofA Global Research identified a number of S&P 500 firms with no overseas sales who could benefit from this item, including utility companies Alliant Energy and Ameren Corp, as well as American Electric Power Company.
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Maguire: Europe's dispatchable energy woes are worsened by a new hydro power hit
The mix of power generated in Europe is likely to become dirtier this summer, after a prolonged dry spell has depleted the reservoirs and reduced hydro-electricity production. The hydro dams of Europe are the third largest electricity generator in Europe after nuclear and natural gas plants. Their annual production peaks just before summer, as spring rains and snowmelt recharge dams and rivers systems. This network of run-of river hydro plants and reservoirs is typically used to generate so-called dispatchable energy, which can then be discharged by grid operators on demand in order to balance the system's power needs. Ember data shows that a persistent drought this year has reduced hydroelectricity production by 13% in the first five month of 2025 compared to the previous year. This is the lowest May level since 2017. The shortfall in hydro power has forced utilities to use other sources of dispatchable energy, including coal and natural gas plants. These may have to be used at higher levels this summer, if hydro production remains stunted. HIGH & DRY The hydro problem this year has been exacerbated by the below-normal snow coverage in Europe's Alps. A model of the snow-fed generation potential by LSEG estimated that the output of the Alps is about a third lower than the long-term mean so far this season. LSEG data indicates that the Danube Catchment Area, one of Europe's major river-fed hydro systems, has also suffered from a lack of spring rains, with production generation potential over 60% below average. HYDRO HIT According to Ember, the combination of precipitation and snowfall below average has resulted in a 13% decrease in the cumulative production of hydro-powered energy from January to May 2024 compared to the same period in 2024. The 71 Terawatt Hours (TWh), or the amount of electricity produced by Europe's hydroelectric plants, was the lowest output for May in the last three years. It was also 11 TWh below the total production of the same month one year earlier. The hydroelectricity output from January to May this year was 48.5 TWh lower than in the same period of 2024. This has reduced the hydropower's share in Europe's electricity production mix to 16.7%, down from 19% in the same months of 2024. FOSSIL FIX In order to offset the decline in hydro-generation, and a 36 TWh reduction in cumulative output of Europe's wind farm so far this season, European power companies have been forced to increase fossil fuel generation. Ember data show that the output of gas-fired power stations was 31 TWh or 7% higher than January to May 2024, and coal-fired plant output was 12.5TWh or 5% higher. If hydro production is constrained and power demand stays at the same level, European utilities will need to increase coal and gas plant output. The output of Europe's nuclear reactors could also be increased to compensate for the decline in hydroelectric plants. However, the regional nuclear power production could be limited if river temperatures in the region rise during potential heatwaves. This would reduce their ability as a cooling water source for reactors. This means that Europe's gas- and coalfired power stations will remain the main source of dispatchable energy through the summer. Especially if the dry weather conditions of this year continue. These are the opinions of a columnist who writes for.
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Unite Group offers $965 million to buy UK's Empiric student property
Empiric Student Property announced on Thursday that it had received a buyout offer worth 710.6 millions pounds ($964.8million) from Unite Group. Shares of the British Real Estate Investment Trust rose by more than 6%. Unite Group is a developer of student accommodation and has offered 30 pence cash per Empiric Share, along with 0.09 Unite shares, should the deal be agreed. As of 1118 GMT the Empiric share price was up 6.5% to 103.6 pence, having reached a near-eight-year high. This potential deal could be added to the growing list of transactions in the UK REIT sector. Warehouse REIT has agreed to sell to Blackstone, for 470 millions pounds. LondonMetric, a British property company, had announced in May that it would purchase Urban Logistics for 698.9 millions pounds in cash and stock. Unite Group has until the 3rd of July to submit a firm bid for Empiric, or withdraw, according to UK takeover regulations.
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A court has barred a Russian tycoon in prison from appealing the Transneft Case
The English Court of Appeal denied Russian tycoon Ziyavudin Magomedov, who is currently in jail, permission to appeal a ruling that dismissed his $14 billion lawsuit filed against Russian oil pipeline monopoly Transneft as well as other companies. Magomedov filed a lawsuit against the company, as well as several other defendants at London's High Court. He claimed that his arrest in 2018 on embezzlement allegations triggered a Russian government-supported scheme designed to strip him of valuable port operators. Transneft and the U.S. private equity company TPG, among other companies, were successful in their bids to block Magomedov’s London lawsuit. Transneft announced late Wednesday that Magomedov was denied permission to appeal Magomedov's ruling by the English Court of Appeal. It is evident from the English proceedings that Mr Magomedov suffered massive losses as a result wrongdoings against him. Magomedov will continue to pursue justice and fairness wherever he is able, according to a Magomedov spokesperson. Magomedov, who founded the Summa Group with his brother Magomed, once controlled a vast empire that included everything from oil and gas to port logistics. The brothers were arrested in one of the highest-profile prosecutions in recent years on charges of embezzlement, organised crime and fraud. Magomedov received a sentence of 19 years imprisonment in 2022. He claims that the charges against him were unfounded, and he unsuccessfully appealed his conviction. Mark Potter edited the report by Vladimir Soldatkin.
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China's Didi Q1 revenues rise 8.5% as the recovery gains pace
Didi Global, a Chinese ride-hailing service, reported on Thursday that its revenue grew 8.5% in the first quarter 2025. This was to $53.3 billion yuan or $7.42 billion. After adopting new accounting principles, the Beijing-based firm reported a net income of 2,4 billion yuan during the third quarter. This compares to a loss of 1,4 billion yuan in the same period last year. Didi attracted the attention of China’s cyberspace regulator 2021 for its pursuit of an initial public offering in the U.S. without approval. This led to an investigation that prevented it from adding new users and saw its apps removed from store. In July 2022, the regulator fined Didi a total of $1.2 billion for a violation in data security. The company was then granted permission to relaunch their apps at the beginning of 2023. The company was removed from the U.S. list in 2022. The travel demand in China is showing signs of recovery, despite the slow economic growth. Didi's platforms in China completed 3.3 billion transactions, an increase of 10.3% on a year-on-year basis. $1 = 7.1805 Chinese Yuan Renminbi (Reporting and Editing by Mark Potter, Frances Kerry and Liam Mo)
CANADA-CRUDE-Discount on Western Canada Select heavy crude widens; wildfires reduce Canadian output
The discount between the benchmark North American West Texas Intermediate (WTI) futures and Western Canada Select (WCS), widened Tuesday, but was still in historically tight territory due to wildfires that continue to disrupt Canadian oil output.
WCS for Hardisty, Alberta delivery in July settled at $9 per barrel below the U.S. benchmark WTI according to brokerage CalRock. It had settled at $8.80 per barrel under the U.S. standard on Monday.
Calculations show that wildfires in Canada's oil producing province of Alberta reduced Canada's daily crude output by about 7%. Although no significant infrastructure was damaged, companies shut down production of 344,000 barrels a day and evacuated some workers as a precaution.
* The fires occur at a moment when Canadian heavy crude is already trading at an historically low discount, in part because of the Trans Mountain Pipeline expansion that was opened one year ago. This increased the country's capacity to export oil.
Canadian crude also benefits from U.S. Sanctions on Venezuela and other nations, which boosts demand for heavy crude producers who are not sanctioned.
* Oil prices rose about 2% globally on Tuesday, reaching a two-week peak as geopolitical tensions persist between Russia and Ukraine, and the U.S.
(source: Reuters)