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Wall St futures are mixed as chip weakness weighs
U.S. index futures on Thursday were mixed as weakness in?chip?stocks kept the sentiment low ahead of a?fresh set of economic data. However, positive results from?UnitedHealth provided some support. UnitedHealth's latest positive quarterly result, a higher profit forecast for 2026, sent shares of the healthcare giant up by 6.7% just before the bell rang, helping to lift Dow futures. Humana and Centene, their peers, gained 5% each and 4,2% respectively. Investors shifted their attention to megacap technology companies and banks after strong results by major lenders. U.S. listed?shares?of TSMC dropped 4.6% during premarket trading despite the fact that the advanced AI chipmaker announced a 77% increase in its second-quarter profits?that exceeded market expectations. The company said that it will invest another $100 billion in the United States. Memory-chip manufacturers were among the largest?decliners. Western Digital and Seagate Technology both fell 7.2% and 5.8% respectively. Wall Street's record highs were driven by the optimism surrounding AI spending by hyperscalers, which led to a spike in chip stocks. At 7:13 a.m. The Dow E-minis rose?95, or 0.12%, while the S&P 500 E-minis fell 14.75, or 0.9%. Nasdaq E-minis fell 210.25 or 0.71%. The three main U.S. indices rose on Wednesday for the second session in a row as this week's benign reports of inflation for June reduced inflation concerns and eased worries about tighter Federal Reserve policies. The positive sentiment was also boosted by a strong start to second-quarter earnings, despite the simmering tensions between the U.S. and Iran. Mark Haefele is the chief investment officer of UBS Global Wealth Management. We expect strong results to be released in the next few weeks, especially with the U.S. earnings season starting off?with solid wins. Investors will monitor retail sales reports and unemployment claims at 8:30 am. ET, investors will be looking for signs that the economy has cooled without causing concern about growth. According to CME's FedWatch, the markets are 'pricing' in about 90% of the likelihood that Fed will remain on hold during this month's monetary meeting. The benchmark S&P 500 is up more than 10% in the last year, and it's still near its record close of June. This leaves the rally open to disappointment with data or earnings. GE Aerospace's stock dropped 4.2% despite the jet-engine manufacturer raising its profit forecast for 2026. United Airlines' share price fell by 3.1%, as the renewed rise in oil prices affected its profit forecasts for the third quarter and year. Netflix will report its earnings after the close of the stock market. Reporting by Ragini Mathur and Avinash in Bengaluru, Editing by Maju Sam and Devika S.
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UK hackers sentenced for cyberattack on London Transport that cost almost $40 million
The two British hackers who were responsible for a cyberattack in 2024 on London's public transportation system that cost PS29 million ($39.16 million) to fix each received 5-1/2 years of jail time on Thursday. Thalha Jubair and Owen Flowers, both aged 18, pleaded to guilty last month of hacking Transport for London. The hacking group "Scattered Spider" was blamed for the hack. Jubair, and Flowers, hacked TfL from August 31 to September 3, 2024. Jubair worked up to 16 hour days, Flowers at his grandmother's house in central England, after they gained access to the?TfL system. Mark Fenhalls, the prosecutor, said that Jubair had broadcast a livestream which Flowers watched. The video on Flowers' laptop was the key evidence. Fenhalls stated that the attackers could have "shutdown TfL completely", and the attack only stopped when TfL disconnected their computer systems. It took six months to repair the damage. Flowers admitted to conspiring with others to hack into two non-profit health systems in the United States, just days after attacking TfL. These attacks stopped "only because he had been arrested and caught in the act", Fenhalls said. Flowers, Fenhalls reported, continued to hack from prison even after his arrest. Devices showed search terms, and attempted access to domains related to the Crown Prosecution Service, and the prison in which he was held. Mark Turner, who sentenced Jubair?and Flowers both to five-and-a half years in prison said that he understood they were "primarily motivated" by their own bravado. Attacks linked to 'Scattered Spider' Multiple reports have linked the hacking group Scattered Spider to an attack against Marks & Spencer. The Prosecutors stated on Wednesday that Scattered spider?was more of a pattern than a group, although Jubair?and Flowers claimed to have links with it. Jubair Flowers and were 17 and 18 when they attacked TfL, but Fenhalls claimed that they were "highly-skilled with computers" and capable of causing havoc. Jubair, a member of the Lapsus$ hacking collective, was convicted in 2023 for hacking and blackmailing Nvidia chipmaker. He was also sentenced to prison for stalking of two young women and "swatting" of one of them by sending armed police into her home. ($1 = 0.7406 lbs) (Editing done by William James and Timothy Heritage).
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UK hackers sentenced for cyberattack on London Transport that cost almost $40 million
Two British hackers who were behind the 2024 cyberattack on London's transport system, which cost PS29 million ($39.16m) to fix, have been sentenced to 11 years of jail time. Thalha Jubair and Owen Flowers, both aged 18, pleaded to guilty on the first day of their trials, a month ago, for hacking Transport?forLondon (TfL), in August and September 2024. The hacking group "Scattered Spider" was blamed. Flowers admitted to cyberattacks against two non-profit health care systems in the United States, just a few days after targeting TfL. He was arrested while he was executing the second hack. Judge Mark Turner sentenced Jubair to prison for five and a half years, saying that they were motivated by "selfish bravado" with no regard for the consequences of their actions. $1 = 0.7406 pounds (Reporting and editing by William James; Sam Tobin)
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Maguire: Europe's next energy crisis is right in front of us.
The energy traders of Europe have been glued to Gulf maps for the past few weeks. The Rhine should be on their radar. The renewed confrontation between Washington, D.C. and Tehran has driven oil prices up and re-ignited fears about the safety of shipping through the Strait of Hormuz. But another threat is emerging that is much closer to home. The water levels in key inland shipping gauges, including Cologne and Kaub (on the Rhine) and Budapest on the Danube, have dropped to levels not seen since major drought years. This has forced barges and their cargoes to reduce the amount of cargo they carry and increased transport costs. Low rivers are an inconvenience on their own. When combined with the rising geopolitical tensions of the Middle East they become more dangerous. KEY TRADE ROUTES The rivers of Europe are the secret arteries that run through its energy system. Fuel imported via Rotterdam and Amsterdam must still be transported inland to refineries and chemical plants, as well as industrial consumers. Every ton of coal or diesel, gasoline, chemicals, biofuel, or other fuels that is not transported by barge requires additional vessels, higher rates, and longer delivery time. While renewed U.S. Iran hostilities threaten oil flow through Hormuz once again and drive energy prices higher, Europe's shrinking waters risk turning a shock external supply into a broader internal logistic crisis. The timing of this attack could not be worse. The Rhine is Europe’s most important inland waterway for commercial shipping. German industry relies on it for transporting around 200 million tons per year, including fuels and raw industrial materials. Water levels at Kaub, the most critical bottleneck on the river, have fallen to an exceptionally low level for July. This has forced vessels to sail partially loaded. Depending on the vessel type and route, some operators report freight reductions up to 80%. The Danube also tells a story. Budapest's water levels are now at lows that are more often associated with droughts in the late summer. Shipping companies report that vessels are operating at a fraction of their normal capacity. Freight surcharges have also risen as operators try to compensate for the reduced cargo volume. Stress Test The European energy system is increasingly dependent on flexibility in logistics. After the Russian gas pipelines were shut down, Europe re-established its energy security by importing LNG, oil and alternative fuels via sea. Assuming that markets would be adequately supplied as long as cargoes can reach European ports was the assumption. Ports are just the beginning. The Rhine links Germany's industrial core with North Sea import terminals. River transport is vital for the transportation of coal for power plants, chemical feedstocks and petroleum products to inland consumers. When river levels drop, cargo is shifted to rail and trucking systems that are already congested and expensive. It is not always a shortage. It is more often a dramatic rise in the cost of delivery that directly affects energy and industrial costs. MOUNTING FEES Economic damage is not a theoretical concept. In previous Rhine droughts (notably in 2018), Germany suffered measurable industrial disruptions and losses of output. This episode taught us that river levels are macroeconomic variables. When barges are not moving efficiently, industrial production, fuel distribution, and profitability all suffer. Add the Middle East to your list. The Strait of Hormuz is the world's largest oil transit chokepoint. Oil prices have already risen due to attacks on ships, military strikes, and increasing threats. Concerns about tanker movement disruptions are also back. The increased risk of a total closure will increase insurance, freight, and commodity costs. The interaction of these two risks poses a danger to Europe. Oil prices are usually absorbed. Usually, temporary shipping disruptions can be managed. Low river levels are usually manageable. When all three occur simultaneously, however, the system is significantly less resilient. Due to Gulf tensions, European refiners could face higher crude costs. Meanwhile, distributors struggle with the inability to transport fuels into the country due to restricted barge traffic. Chemical producers may face rising feedstock costs at the same time as logistics costs rise. Utility companies may find that alternative fuels are readily available in ports, but are more difficult and expensive to transport to the places where they are required. Each problem reinforces each other. The energy supply chain in Europe is beginning to look like a funnel. RISK STACK INTERTWINED Ironically, policymakers are increasingly separating climate change from geopolitics. They need separate solutions. Recent events indicate that they are increasingly intertwined. Heatwaves and dry conditions are not only lowering Europe's river levels, but also increasing electricity demand. This puts pressure on the energy infrastructure. Geopolitical conflict has also reduced the margin of error on global fuel markets. What appears to be a weather issue in Germany could quickly turn into an energy security issue across Europe. It is important that traders pay attention to the river gauges in Kaub and Budapest, as well as to missile launches from the Gulf. The other measures the risk of geopolitical conflict. One measures geopolitical risk. ?Europe's security of energy was shaped for decades by pipelines and tankers, as well as diplomacy. It may increasingly be shaped by rain. As rivers shrink and conflicts increase, the continent learns an uncomfortable truth. Sometimes the most dangerous energy chokepoints are not halfway across the world but right in your backyard. These are the opinions of the columnist, who is also an author. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
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Irish airline Aer Lingus to cut 500 jobs as fuel prices rise
Irish airline Aer Lingus said it could cut up to 500 jobs in a reorganisation. It cited high costs 'and a challenging 'economic environment. In a Thursday statement, the airline said that it had already reduced senior management positions by a quarter and planned to cut employee costs "by roughly the same amount" while changing its network to eliminate 'lower margin flying. It said that this would reduce overall flying by 6 percent, including certain long-haul, short-haul, and international routes. They also added that they were focused on reducing "supplier costs." The measures come after the parent company of IAG (London-listed) issued a profit warning back in May. It warned that higher jet fuel prices and supply disruptions caused by war would have a greater impact on earnings than previously expected. In a statement released on Thursday,?Aer lingus?Chief executive Lynne Embleton stated that "our accelerated transformation is designed to... ensure the airline has a strong case for investment and can weather the turbulence of our industry." It said that the airline, which has over 100 routes between Europe and North America in its network, aims to achieve an operating margin over the medium-term of 12-15%, as a way to attract investment. The airline's operating margin in 2025 is a mere?11.1%, compared to margins exceeding 15% for British Airways and Iberia. Mark Potter edited the report by Muvija.
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GE Aerospace raises its 2026 forecast as airlines maintain maintenance spending
GE Aerospace increased its profit?forecast for 2026 on Thursday as airline spending?on parts and services remained stable despite higher fuel prices - and fewer flights. As the Iranian war disrupts oil shipping routes around the world, jet fuel prices are rising and airlines have to cut back on capacity. GE Aerospace Services is closely linked to aircraft departures. Increased flying?drives increased engine wear and maintenance demands. The company said that any impact on revenue and profit from'services' this year will be minimal, since much of the work for '2026 is already secured, and spare parts demand continues to outpace supply. Jet-engine manufacturer expects a?profit per share of between $7.65 and $7.85 in 2026. This is a slight increase from the $7.10 to 7.40 previously forecast. In premarket trading, shares of the company rose by about 2%. Larry Culp, CEO of GE Aerospace, said that despite fewer flights and higher fuel costs, airlines have not slowed down on orders for engine parts or maintenance. Prices of jet fuel have risen slightly since then but are still high compared to levels before the start of World War II. CFM International, a joint venture between France's Safran and the engine maker, dominates the narrowbody jet market. Parts and services account for over 70% of revenue from commercial engines. The unit's quarterly revenue grew 27% from $9.7 billion to $9.7 billion from the previous year. It expects CES revenues to increase by 20% in 2026, compared to its previous outlook of a mid-teens percentage point. The company reported an adjusted second-quarter profit of $2.02 a share, up from $1.66 per share a year earlier. Total revenue was $13.35 billion, up 21% over last year.
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GE Aerospace raises its 2026 forecast as airlines maintain maintenance spending
GE Aerospace increased its profit forecast for 2026 on Thursday as'spending by airlines on aftermarkets and parts remained resilient despite high fuel prices and fewer flights departures. As the war in Iran disrupts oil shipping routes around the world, airlines are being forced to cut back on spending and reduce capacity to maintain fares. GE Aerospace Services is closely linked to aircraft departures. Increased flying leads to increased engine wear and maintenance. The company said that any impact on its services revenue and profits this year will be minimal, since much of the work for its '2026 shop visits is already secured, and spare parts demand continues to outstrip supply. The jet engine maker is expecting a?adjusted?profit per share of between $7.65 and $7.85 in?2026. This compares to?previously forecast $7.10-$7.40. Larry Culp, CEO of GE Aerospace, said that despite fewer flights and higher fuel costs, airlines have not slowed down on orders for engine parts or maintenance. The price of jet fuel has decreased slightly, but remains high compared to levels before the start of World War II. CFM International is the joint venture between Safran and the engine manufacturer. It controls the narrowbody jet market. The company also has a strong franchise in widebody engines, with parts and services accounting for over 70% of revenue. The unit's quarterly revenue grew 27% from $9.7 Billion to $9.7 Billion from the previous year. It expects CES revenues to increase by 20% in 2026 compared to its previous outlook of mid-teens percentage points. The company posted a second quarter?adjusted?profit of $2.02 a share, up from $1.66 per share a year earlier. The total revenue was $13,35 billion, up 21% over last year. Reporting by Shivansh Tiwary, Bengaluru. Editing by Arun K. Koyyur.
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India asks its seafarers to avoid Hormuz voyages
India has issued a directive to shipowners, managers and recruitment companies not to send seafarers from the country on vessels traveling through the Strait of Hormuz. This is due to renewed fighting in the?region. According to data from the government, India is the third largest supplier of seafarers in world, with over 300,000 sailors employed across all global shipping fleets. The Directorate General of Shipping issued an order late Wednesday saying that Indian seafarers would not be allowed to join vessels on voyages through the Strait of Hormuz. According to data from the government, two Indian seafarers were killed in recent attacks on vessels in the region, as tensions in the Middle East escalate. The shipping regulator has said that recent attacks on ships have "significantly" increased the risk faced by seafarers and commercial vessels operating in conflict-affected areas. The order stated that "in view of the increased?security situation" in the Persian Gulf, the Directorate deems it necessary to take enhanced precautionary steps to protect the interests of Indian seafarers onboard ships operating in this region. The letter also instructed the masters of vessels to be vigilant in assessing the security situation of the Persian Gulf and the Strait of Hormuz, as well as the adjacent waters. It called for continuous monitoring of navigational alerts. New Delhi also lodged an enraged protest with Iran by summoning the deputy ambassador?over one of?the deaths?on Tuesday. Manoj Yadav said that more than 15,000 Indian sailors are still stranded west of the Strait?Hormuz. We can prevent new crews from being recruited in these areas. What about the thousands of seafarers who are still trapped on those dangerous?seas, and at risk to their life? What does the government do to rescue them? Yadav replied: "What is the government doing to get them out?
BMW moves forward with its cost-cutting efforts by appointing a new HR director
BMW announced Dorothea von Boxberg's appointment as its new board member responsible for human resources in a statement on Thursday. The German automaker highlighted?her expertise in "transformation processes" at a difficult time.
The supervisory board approved the change in executive board after BMW issued an unexpected profit warning last month under its new CEO Milan Nedeljkovic and promised?further budget cuts.
German automakers, in particular, struggled to adapt to the growing competition from China and the shift to electric vehicles. Recent U.S. Tariff costs and Iran War uncertainty have added to their difficulties.
BMW has avoided the sweeping cuts seen at Mercedes-Benz and Volkswagen.
Von Boxberg will replace Ilka Horstmeier, the departing HR chief, on September 1st, according to a company statement.
Nicolas Peter, chair of the supervisory board, said: "Dorothea von Boxberg brings not only extensive experience in implementing transformative processes but also a perspective from outside our industry."
Nedeljkovic stated that the BMW Group faces new challenges that require constant adjustments to our structures and working methods. He added that von?Boxberg was an "excellent addition" for tackling these tasks.
BMW and its staff are preparing to begin talks about accelerating efficiency measures after reducing their?profit forecast, with margins as low as 1%?this year.
(source: Reuters)