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Brazil's Embraer trails US'milestones' amid trade tensions
Embraer announced on Thursday that it will announce what it called a "milestone," for the Brazilian aircraft manufacturer in Washington, next week. This is the latest indication of aerospace companies trying to strengthen economic ties with America. The announcement on September 10 will coincide with an important gathering of leaders in the aerospace industry. Embraer has been lobbying the Trump administration to remove the 10% tariffs from its jets. It also highlighted the dependence of U.S. Airlines on regional jets. Embraer declined to comment further on the announcement, but sources in the industry said that they expected at least part of it to be focused on increasing U.S. employment and connectivity through its commercial jets. Embraer sells 45% of its commercial aircraft and 70% of executive jets to U.S. customers, which all rely heavily on U.S.-made parts. Embraer does not have immediate plans to introduce a new jet model, according to several industry sources, despite the fact that the manufacturer floated the idea of mounting a challenge to Airbus, Boeing, and a upcoming competitor from China. The announcement was not clear on what else Embraer might have included, claiming that it would be the "first of its kind to be made in the United States". Watchers in the aerospace industry say that there is a trend among companies to make high-profile announcements, such as industrial decisions and plane orders, in Washington. This is to reduce the impact of Trump’s "America First” policies. Embraer, in recent months, has asked Washington to lower its tariffs, citing the company's strong ties to the U.S. and its plans to buy $21 billion of U.S. goods by 2030. Embraer was spared a major blow in July when Trump exempted Brazilian goods from a tariff of 50%, but still faces a duty of 10%. The E175 E1 is a key aircraft for regional routes in the U.S. The United States is also its No. 1 market for business jets. The U.S. is also the No. 1 market for business jets. Embraer has assembly plants for executive jets in Florida. It said last month that it would build a $500 million plant in the U.S. for its C-390 military airlifter if the U.S. decided to buy the jet. Analysts have noted that some of the newly announced initiatives were already underway. Airbus' chief executive, who will be in Washington, next week, could inaugurate an American assembly line as soon as next month. This is ahead of a planned second assembly line to be opened in China at the end of this year. (Reporting and writing by Allison Lampert; David Shepardson and Gabriel Araujo; editing by Susan Fenton, David Gregorio, Tim Hepher)
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Avride, a startup that develops autonomous technology, will ramp up its testing in conjunction with Uber's robotaxi launch
Avride announced on Thursday that it will be increasing the testing of its robotaxis in Dallas as the startup autonomous technology prepares to launch robotaxis with Uber. In order to commercialize robotic deliveries, autonomous technology companies are partnering with startups that offer ride-hailing services and food delivery. Avride announced a wider partnership with Uber last October. In November, its delivery robots launched on the Uber Eats Platform in Austin. Later, they were expanded to Dallas and Jersey City. Avride will bring its autonomous vehicles to Uber's platform by the end of this year as robotaxis. This brings both products from the startup onto the same platform. Uber's Head of Autonomous Mobility & Delivery, Sarfraz Maredia said: "Uber riders will soon have a way to move about the city. This is another step towards making autonomous transportation a part of daily life." The Dallas robotaxi fleet will be based on Hyundai Motors' cutting-edge IONIQ EV platform, which is integrated with Avride’s autonomous driving technologies. Avride and Hyundai partnered to expand their fleet of robotaxis and sign a contract to develop and operate autonomous vehicles together. The startup also collaborated to deploy robots across college campuses in the United States with food delivery service Grubhub. Reporting by Jubybabu in Mexico City, Editing by Krishna Chandra Eluri
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London stock rises supported by banks and consumer staples
Investors analyzed corporate updates as London shares rose Thursday. Consumer staples and banks stocks led the gains. The blue-chip FTSE 100 rose by 0.4% while the domestically focused midcap index grew 0.8%. Currys' 15.6% increase in retail stocks was a boost to the sector. The electricals retailer reported that group sales had risen 3% during the summer period (17 weeks up to the end August), putting them on track to achieve forecasts. Currys has also announced a share buyback of 50 million pounds ($68 million). JD Sports Fashion and Frasers, as well as Next and other major retailers, have also made significant progress. Tesco's shares rose 1.8%. Heavyweight bank shares gained 1.2%. NatWest rose 1.5%, Barclays added 2.2% and Lloyds increased 2.1%. Sources familiar with the situation say that around 3,000 Lloyds workers who are judged to be in the bottom 5% will be subjected to possible dismissal. Airtel Africa, Auto Trader and Rightmove all gained 2.3%. In contrast, precious metals miners declined, as gold prices fell. Endeavour Mining is down 1.7% while Hochschild Mining is down 3.5%. Anglo American, the industrial mining company, also fell by 1.2%. Jet2, a low-cost carrier and travel company, also lost 12.5% of its value after forecasting a lower profit. EasyJet, a peer company, fell 4.2% and landed at the bottom of FTSE 100. Animal genetics firm Genus rose 10.4% on Strong annual profit growth Joint ventures with China are accelerating. The bond market has stabilized after a recent rout, when fears about Britain's finances, and the government’s ability to control them, briefly sent gilts yields to their highest level since 1998. Investors continue to speculate, however, about tax increases that could dampen the economic growth, as Britain is set to present its budget on 26 November. In August, the construction industry in Britain slowed down for the eighth consecutive month, marking its longest decline since 2020. In a BoE survey, British firms reported that they expect inflation to rise slightly in the coming year. Investors await the July retail sales figures due on Friday. As they traded ex dividend, Antofagasta, Admiral Group, and other stocks fell by 2.3% and 1.55% respectively.
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US abandons Biden's plan that would have required airlines to compensate for flight disruptions
The Trump administration announced on Thursday that it would abandon a plan from his predecessor to force airlines to compensate passengers in cash when they cause flight delays or cancellations within the United States. In December, under the then-President Joe Biden, the U.S. Transportation Department sought public comments on the rulemaking processes regarding whether airlines should have to pay up to $775 per hour for delays that exceed three hours in the United States. U.S. Airlines strongly criticized the proposal. In a document published on Thursday, the White House stated that USDOT intends to withdraw this notice "consistently with departmental and administrative priorities." Biden stated that his administration will write rules in May 2023 requiring airlines compensate passengers for flight disruptions. Airlines for America (a trade group that represents American Airlines, Delta Air Lines and United Airlines) did not comment immediately, but stated last year the plan of Biden would increase ticket prices. In the U.S., airlines must reimburse passengers for cancelled flights but not for delayed flights. Major carriers by 2022 Commit to paying for meals When flight delays are significant, they can result in hotel expenses and other costs. Canada, Brazil, European Union, and the United Kingdom have all adopted airline delay compensation rules. USDOT announced in December that it would be examining whether airlines should cover meal costs, hotel expenses and other costs following carrier disruptions. It also considered whether airlines should be required to rebook customers on the next flight available, or, if there is no flight for 24 hours, they could have to use their competitors. The Trump administration is taking other steps to reverse Biden's airline consumer initiatives. Justice Department May 2015 Dropped a lawsuit against Southwest Airlines was accused of operating illegally delayed flights by the Biden Administration in its final days. (Reporting and editing by Rod Nickel, David Gregorio and David Shepardson)
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Brazil's Embraer lag behind new US'milestones' amid trade tensions
Embraer announced on Thursday that it will announce in Washington what it called a "milestone for the Brazilian aircraft manufacturer" next week. Embraer declined to comment further on the planned announcement, but industry sources stated that it would focus on increasing U.S. manufacturing through its commercial aircraft division. The announcement on September 10 will coincide with an important gathering of aerospace leaders taking place in Washington, D.C. It comes as the third largest planemaker in the world is lobbying for the removal of 10% tariffs placed by the Trump Administration on its planes. Embraer announced in a press advisory that the announcement would be "the very first of its kind in America." Analysts caution that some of the recently announced investments had already been in the pipeline. Reporting by Allison Lampert and Tim Hepher. Writing by Tim Hepher. Editing by Susan Fenton.
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Finnair is considering ordering 30 narrowbody jets
Airline Finnair announced on Wednesday that it is sourcing a first batch of narrowbody aircraft, and considering an order for up to 30 jets. Turkka Kuusisto, CEO of the company, told reporters that "one could argue that we'd need 15 but we also need to do a... wider or more extrapolated analysis" that would determine if it should be 25 or 30. The Finnish airline has 80 aircraft in its fleet. This includes 15 jets that are older and need to be replaced. Kuusisto said that this was the most pressing need. He did not know which aircraft would be chosen, but that the company will make a decision at the end of this year. (Doyinsola Oladipo in New York; Editing by Rod Nickel, Tim Hepher)
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United Airlines adds flights to target the main markets of Spirit Airlines, which has gone bankrupt
United Airlines rushed on Thursday to take advantage of the financial woes of rival Spirit Airlines, boosting its presence in major markets for the bankrupt discount airline, including Fort Lauderdale Orlando and Las Vegas. Spirit Airlines has shrunk its operations, and withdrawn from several markets. This has created an opportunity for competitors. Frontier Group launched flights last week to Spirit's strongestholds. Patrick Quayle is United's Senior Vice President of Global Network Planning and Alliances. He said: "If Spirit suddenly went out of business, that would be an incredibly disruptive event. We're adding the flights so their customers have other options, if they need or want them." United Airlines will begin selling tickets for 15 new cities where Spirit operates on Thursday. The Chicago-based carrier said it would fly larger aircraft from Chicago to New York LaGuardia in order to assist customers who are not located near its hubs with connecting to newly added flights. Tom Fitzgerald, TD Cowen's analyst, wrote earlier this week that "we expect these carriers will continue to benefit from Spirit’s retrenchment despite their less overlap." Reporting by Nathan Gomes, Bengaluru; and Rajesh K. Singh, Chicago. Editing by Shailesh. Kuber. Sriraj Kalluvila. Shinjini Ganguli.
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Russia's Nornickel: China payment problem persists despite Xi and Putin meetings
A senior executive of metals producer Nornickel stated on Thursday that Chinese banks continue to delay payments for Russian imports up to four full weeks, despite assurances given by Russian officials about the improvement in payment issues with China. Last year, the problems of settlements with China and Russian trading partners reached a peak as Western regulators pressed banks to comply with Western sanction. This forced firms to use cryptocurrencies or barter. This issue was discussed between Russian President Vladimir Putin, and Chinese President Xi Jinping. After their meeting in Moscow, in May, Russian officials claimed that the situation had improved and that payments were now being made. Both leaders avoided discussing the payment issue during Putin's visit to China, which lasted four days this week. Xi also called for a global economic and security order. Most executives avoid elaborating on the subject of international payments to avoid attracting unnecessary attention. Anton Berlin, Nornickel's vice president for sales, said that the problems persist. Chinese banks halt payments for a period of 2-3-4 weeks as soon as new sanctions are announced. It doesn't really matter whether they don't impact our company or products. "They need to read the documents (that accompany the sanctions) and payments are delayed," Berlin said at a panel debate held at the Far East Economic Forum, Vladivostok. Berlin stated that "in the past we used to receive money the following day or within two days. But now, several days are the norm and several weeks are not unusual." He said that this issue is affecting the ability of the company to maintain working capital, and that it forces the company to increase borrowing rates at very high rates due to the central banks policy to combat inflation. Un senior official from the finance ministry told the same panel he believed payments were not being delayed anymore. Alexei Yakovlev stated that he believes cross-border payments are no longer a problem. Nornickel is a major producer and exporter of nickel and palladium. China is the biggest buyer. Berlin stated that the company ran several parallel schemes to execute payments without providing any further details. Berlin stated that Western sanctions were not as bad as the restrictions that Chinese banks and their other trading partners impose on themselves out of fear that they could be targeted by Western regulators. He urged greater secrecy in Russia's international trade transactions to shield it from Western regulators, and said that a new system of international payments independent from the West is needed. "It has always been said that transparency in financial transactions is important. But now anonymity also becomes an important factor. He said that transparency should only be limited to regulators. (Reporting from Anastasia Lyrchikova in Moscow, Gleb Bryanski at Vladivostok and Olesya Astakhova in Vladivostok. Editing by PhilippaFletcher.)
What you need to be aware of as the Air Canada work stoppage approaches
Air Canada's union and the Canadian government have been urged to resume contract negotiations. A work stoppage is imminent, which could affect travel for thousands of people if there is no resolution.
As Canada prepares for flight disruptions, here's where the major stakeholders stand.
Who does the union represent? The Canadian Union of Public Employees, or CUPE, represents more than 10,000 Flight Attendants at Air Canada Rouge and Air Canada. Earlier this week, 99.7% CUPE members voted for a strike if a deal could not be reached.
WHAT DOES THE UNION DESIRE? CUPE wants to be paid for all time worked, including boarding, ground and other travel, which, according to the union, amounts up 35 hours per month. Air Canada has offered to compensate for some of this time at a rate that is half the normal hourly rate.
The airline claims that its latest offer will increase compensation totals by 38% in four years with a 25% rise the first year.
CUPE claims that the offer is only a 17.2% increase in wages, which does not go far enough for attendants who have five years or less of experience. This group makes up about half of its membership. The union hasn't revealed its full demands for wages.
What does Air Canada want?
The carrier's request for binding arbitration was made after the union demanded wages that were "unsustainable."
The union urged the government, under section 107 (Canadian Labor Code), to act in order to maintain industrial peace. CUPE rejects arbitration.
WHAT DOES IT SAY? Patty Hajdu, the Jobs Minister, has called on both sides to resume discussions and agreed to answer the union's arbitration request by 12 noon. ET (1600 GMT) Friday.
When will the strike begin?
CUPE set a 12:58 a.m. strike deadline. ET (0458 GMT) Saturday. Air Canada issued a lockout notification beginning 32 minutes after the announcement.
WHAT WILL THE EFFECT BE ON FLIGHTS? Air Canada and Rouge transport about 130,000 passengers per day. The carrier has begun to cancel flights and is expected to cease operations by August 16, leaving tens of thousand of travelers stranded.
Air Canada Express, operated by Jazz and PAL Airlines will serve about 20% of passengers. Aishwarya Jain, reporting from Bengaluru and Frank McGurty, editing by Chizu Nomiyama.
(source: Reuters)