Latest News
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Joby, an electric air taxi company, acquires Blade Air's passenger service
Joby Aviation announced Monday that it will purchase Blade Air Mobility's helicopter ride-share business, which includes passenger services, for up to $125 Million. Joby is working to accelerate the deployment of commercial air taxis. Blade's medical transplant division will not be part of the deal. It will remain a public company rebranded Strata Critical Medical. However, Joby will partner with Blade on medical transport. Joby is working hard to get its electric vertical takeoff-and-landing aircraft, or eVTOLs, certified by the Federal Aviation Administration. Joby CEO JoeBen Bevirt stated that the company was on track to start FAA Type Inspection Flight Testing early next year. This is a crucial step before it could begin commercial service. Bevirt said the Blade deal provides Joby with existing customers, takeoffs and landings locations, and a decade's worth of operating experience. This is "a launchpad, a catalyst for really growing the experience" Blade has built. Bevirt stated that "clean, quiet aircraft will unlock a large number of new takeoffs and landings locations." Blade carried more than 50,000 passengers from 12 urban terminals in 2024, including JFK Airport New York, Newark Liberty Airport and various Manhattan locations. Blade's passenger operations, led by Blade CEO Rob Wiesenthal, will continue as a fully-owned subsidiary of Joby. "We fly people by helicopter, vertical transportation, than any other company around the globe. "With the combination of infrastructure, flyers, routes, and a globally-recognized brand, it's really to the customer...more of an asset exchange," Wiesenthal stated in an interview. Wiesenthal said that there will be a phase of transition where the combined company operates helicopters and Joby planes. It will eventually transition to only operating Joby electric air cabs. The deal includes the entire passenger business of Blade, including its U.S. operations and European operations. Joby agreed to pay Blade $125 million under the agreement. This includes $35 million linked to certain performance benchmarks and the retention of key employees. Reporting by David Shepardson, Editing by David Goodman, Mark Potter
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Venezuelan oil exports dropped in July, as partners awaited US approvals
According to data from vessel tracking and company documents, Venezuelan oil exports fell by about 10% in July compared to the previous month. This was because key partners of the state-owned PDVSA were waiting for U.S. approvals to expand their operations in the nation. Washington granted a limited license to Chevron in late July, allowing it to export crude oil to the U.S. and operate in Venezuela under sanctions. The license does not permit any payments to Venezuelan President Nicolas Maduro’s administration. Several other PDVSA partners still await similar authorizations. Mike Wirth, Chevron's CEO, said Friday that the company is expecting to resume the exports of Venezuelan crude oil to the U.S. in this month. The new license will allow for a "limited" amount. He didn't elaborate on the terms, as the authorization was privately issued to the company. Venezuela exported 727,000 barrels of crude and refined product per day on average last month. This is lower than the 807,000 barrels per days (bpd), which was recorded in June. In July, Venezuela also exported 227,000 metric tons of oil byproducts (petrochemicals) and petrochemicals. This is in line with what it did in June. The data and documents revealed that the total oil exports to China, including direct and indirect shipments, accounted for 95% of all exports. Cuba, Venezuela's political partner, received 31,000 bpd in crude, gasoline, and jet fuel. Chevron has suspended its exports of Venezuelan crude oil since April when PDVSA canceled the cargoes that it had planned for its joint venture partner due to payment issues related to U.S. sanction against the OPEC nation. In March, the administration of President Donald Trump revoked PDVSA's prior U.S. licensing and authorizations for other PDVSA Partners. Venezuela's crude oil exports dropped slightly as a result, with more cargoes going to China. One document showed that in the last week of June, Venezuela's major oil terminal, the Jose Port, was almost empty, which led to a rise in heavy crude and dilutient stocks. Chevron and the cash-strapped PDVSA have been in negotiations since Washington approved the new license following a prisoner exchange with Caracas, as well as criticism from the U.S. Congress about more Venezuelan barrels being sent to China. Sources close to the negotiations said that part of the agreement would include payment of mandatory taxes and royalties to Venezuela, either in kind or as a percentage of oil produced jointly.
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The Gulf stock market has fallen due to weak corporate earnings
The Gulf stock markets were largely muted on Monday morning due to weak corporate earnings. However, rising expectations of interest rate reductions by the U.S. Federal Reserve eased concerns over the slowing economy. Data released on Friday indicated that U.S. employment growth was slower than expected in the month of July. This has led to expectations that rates could be cut by the Fed in September. Fed decisions can have a major impact on the Gulf's monetary policies, since most of the currencies in the region are pegged to U.S. dollars. Saudi Arabia's benchmark index fell 0.7%, with the majority of its constituents reporting losses. Saudi Aramco Base Oil Company-Luberef fell 3% following an 18% drop in its second-quarter profit. Saudi Aramco, the oil giant and its subsidiary Saudi Basic Industries (SABIC), both fell 0.5% and 0.4%. SABIC, the Saudi chemicals company, reported a surprise quarter loss on Sunday. The benchmark Abu Dhabi index dropped 0.2%. This was due to a drop of 2% in RAK Properties, and a decline of 0.7% in Fertiglobe. Fertiglobe, a nitrogen fertilizer manufacturer, reported a drop of 29% in its half-year net profits and declared a H1 dividend per share of 4.4 fils as opposed to 6.6 fils the year before. The second-quarter profit was higher by 41%. Dubai's benchmark index fell by 0.2%. Emaar Properties fell 1%, and Dubai Investments fell 1.4%. The benchmark Qatari index fell 0.1%. Financials were the main culprits, with Qatar National Bank - the largest lender in the region - dropping by 0.4%, and Commercial Bank falling by 0.5%.
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Thai Airways shares surge after resuming trading
Thai Airways International stock prices surged up to 231% when shares resumed trading Monday, before dropping back down later. At 12:50 pm (0550 GMT), the stock price was up 186% to 9.5 Baht ($0.2872). In 2020, the national carrier entered a bankruptcy-protected restructure at the start of the pandemic. It was in trouble long before the pandemic. The airline has been reporting losses almost every year since 2012. This is because low-cost carriers have been eroding its market share in Southeast Asia, particularly on short haul routes. Thai Airways received a debt restructuring of 400 billion baht when COVID hit. The company brought in senior executives to its restructuring committee, which was chaired the former energy minister Piyasvasti Amranand. Amranand was also the chief executive of Thai Airways from 2009-2012 when it was profitable. The committee began debt-to-equity plans, and then reduced its support staff by half to 16,000 people. The committee also announced plans to reduce its fleet of 103 aircraft to 85 and to eliminate its budget airline, Thai Smile. In five years, starting in 2020, the airline will have reduced its debt by 190 billion Baht and achieved operational profit in 2023. In the first three months of this year the airline's net profit reached $9.8billion, up by 300% compared to the same period in the previous year. The airline currently operates 78 jets, and the cabin factor (the percentage of seats occupied by passengers) is 83.3%. The carrier has an option to purchase 35 additional Boeing 787-9 widebody jets. It said in July that it would be able to exercise its option as part the Thailand-US tariff negotiations.
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PostNL confirms guidance after posting surprise operating profit for Q2
Dutch postal company PostNL announced a surprise operating income for the second quarter on Monday and confirmed its full year guidance, citing progress made in strategic initiatives as well as benefits from targeted yield-measures. PostNL, a company that delivers letters and parcels across the Netherlands and Belgium, reported a normalised operating loss of 11 million euros (12.74 million dollars) for the third quarter. This is down from 18 million euros a year ago. Five analysts polled by the company had predicted a loss on average of 3 million euro. In a press release, CEO Pim Berendsen stated that "other measures to adapt our operation have resulted into efficiency improvements and planned cost savings at both Parcels and Mail and the Netherlands." PostNL, which is active in Belgium, The Netherlands, and Luxembourg, has confirmed that it expects its normalised annual operating profit to remain the same as last year. It did, however, flag a goodwill impairment of 40 million euros on its Dutch Mail business after the Dutch Government rejected its request for a financial contributions for 2025-2026. The impairment is excluded in the normalised results. PostNL announced that it would not be paying an interim dividend, but will still pay one over the course of the year. Reporting by Olivier Cherfan, Gdansk. Editing by Milla Nissi.
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Wall Street Journal, August 4,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. China has limited the flow of minerals critical to Western defense companies, delaying production. This is forcing the companies to search the globe for the stockpiles needed to manufacture everything from bullets and jet fighters. Amphenol is close to a deal worth approximately $10.5 billion including debt for the broadband connectivity and cable division of CommScope Holdings. Boeing defense workers will strike on Monday after the union representing 3,200 workers in the St. Louis area rejected the latest contract offer from the company. Delta faces criticism for using AI in setting airfares. However, the airline insists that it does not use personal information to target offers. This is after lawmakers expressed concerns over the technology. (Compiled by Bengaluru Newsroom)
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FT reports that rail customers are urging regulators to stop the Union Pacific-Norfolk Southern merger.
The Financial Times reported that U.S. railroad customers groups had demanded that regulators block the merger between Union Pacific and Norfolk Southern or impose onerous conditions. The report stated that seven associations of shippers expressed concerns about the proposed deal, stating it would increase the power of a merged railroad in raising prices or reducing service standards. Union Pacific reported that it spoke with over 100 customers regarding "low-cost rail options", adding that they would include all the details in their Surface Transportation Board application. Union Pacific announced last month that it would purchase smaller rival Norfolk Southern for $85 billion. This will create the U.S.'s first coast-to-coast rail freight operator, and transform the movement of goods across the nation from grains to automobiles. According to the companies, it is expected that both railroads will have a combined value of $250 billion. They would also unlock annualized synergies worth about $2.75 Billion. Norfolk Southern has not responded to requests for comment immediately. Earlier, the Transportation Division of SMART, International Association of Sheet Metal, Air, Rail and Transportation Workers, announced that it would oppose the merger at the Surface Transportation Board review. The major railroad unions are opposed to consolidation. They claim that such mergers could disrupt rail service and threaten jobs. Chuck Schumer, the Senate Democratic Leader, also criticised the merger. He said that the deal would "push us even further down the path of dangerous consolidation and power monopoly... This is an aggressive takeover of America’s infrastructure.
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Boeing's St. Louis workers will strike on Monday if they reject the latest offer.
The International Association of Machinists and Aerospace Workers, a union representing workers who assemble Boeing fighter jets around St. Louis, rejected Boeing's most recent offer on Sunday and are now planning to strike at midnight Monday. Tom Boelling, the Business Representative of the IAM District 837, said: "IAM members deserve a contract which reflects their skills, dedication and the crucial role they play in the defense of our nation." Boeing, according to its company, sent a new offer of a contract to the union last week. The company said that the minor changes in compensation would be beneficial to senior union members. Boeing also maintained the current overtime policies that it had originally proposed to modify in its last contract offer. The union rejected the previous offer because it was not sufficient. Boeing did not respond immediately to a comment request outside of regular business hours. Workers assemble Boeing fighter jets as well as the MQ-25 aerial refueling robot being developed for the U.S. Navy. Boeing's Defense Division is expanding its manufacturing facilities in St. Louis after winning the contract for the F-47 fighter aircraft. Reporting by Angela Christy, Bengaluru Editing and Sandra Maler.
Eurostar service severely affected by French track closure
Eurostar warned its passengers that they should expect major disruptions and cancellations on all routes between and to Paris after a section operated by France's SNCF railway network was temporarily shut down.
The operator of high-speed trains urged passengers to delay their trips if they could.
Eurostar's spokesperson stated that passengers could exchange their tickets for free or get a refund. The disruption in France did not affect the London-Amsterdam route, London-Brussels, and Brussels-Amsterdam.
SNCF reported that the disruption was due to a power failure near Moussy (about 50 km north of Paris) which began at 8:30 a.m. It is expected to continue until late evening, as "major repair" work will be required.
The disruption is occurring at the peak of summer travel in one of Europe's most popular international rail corridors. Charlotte Van Campenhout reported, Kirovan Donovan edited.
(source: Reuters)