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Fed policy decision generates most governor dissents since 1993
Federal Reserve Governors have voted in the most dissenting manner since the beginning of the U.S. Central Bank's policy meeting, which lasted two days. Governor Christopher Waller, and Fed Vice-Chair for Supervision Michelle Bowman, voted against the decision of the central bank to keep its benchmark overnight rate at 4.25% to 4.50%. They preferred to lower it by a quarter percent. According to the St. Louis Fed, this was the first time since December 1993 that two members of Washington's Board of Governors dissented from a policy decision made by the Federal Open Market Committee. Fed governors rarely express formal opposition, and the majority of FOMC dissenting vote stems from disagreements between regional Fed bank presidents. Last September, Bowman dissented from the FOMC consensus because she wanted a smaller cut in rates than her colleagues. In October 2019, two regional Fed presidents were the last to vote against the FOMC consensus. Dissenting votes at the FOMC tend to be rare. Up until Wednesday, there had been no Fed meeting in this year that generated formal opposition. Only two dissents occurred in 2024, and none in the years 2023. Waller and Bowman both indicated their willingness to ease rates ahead of the policy gathering. Waller's desire to lower borrowing costs for short-term loans was justified in a July 17 speech when he stated that "the economy continues to grow, but the pace has slowed considerably, and risks to the FOMC’s employment mandate are increasing." Bowman dismissed concerns that President Donald Trump’s import tariffs will drive up inflation in her remarks on June 23. She said that as long as inflation was contained, it would be "time to consider" lowering interest rates at the July 29, 30 meeting. Trump has criticized Fed chair Jerome Powell, for not heeding the White House's demand that interest rates are cut immediately. Waller and Bowman are both members of the Fed board appointed by the current President. Contrary to Waller's and Bowman's approach, the majority of Fed policymakers are waiting and watching to see what happens with economic and monetary policies. Although inflation pressures are lessened, many officials worry that Trump's tariffs could increase price pressures in the future, which would argue against easing policy. Waller has made a number of public comments arguing that any increase in inflation caused by tariffs is a temporary problem that central bankers can ignore. He is increasingly concerned that the job market will stagnate and wants the Fed's help to prevent that. The Fed's policy setting committee is notable for its dissenting votes, which show the depth of debate between central bankers. Fed officials say that they are an indication that policymakers do not get stuck in groupthink as some critics claim. The number of dissenting votes tends to rise during times when the economy is uncertain and facing challenges. (Reporting and editing by Paul Simao, Andrea Ricci, and Michael S. Derby)
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Old Dominion misses quarterly estimates as freight slump drags on
Old Dominion Freight Line's revenue and profit for the second quarter fell below Wall Street expectations on Wednesday as its freight services continued to be muted in a macroeconomic environment that was tough. In afternoon trading, shares of Thomasville-based LTL carrier, which serves companies in retail, manufacturing and automotive sectors as well as healthcare, fell by about 9%. Trucking rates in the U.S. have been pushed lower by persistent overcapacity and low freight volumes. Old Dominion is still managing to operate in a challenging operating environment, which has lasted longer than expected. CEO Marty Freeman added that the "challenging" economy continues to impact demand for services. The company's revenue for the third quarter fell by 6.1% compared to last year, to $1.41 billion. Profit per share also dropped by 14%, to $1.27. According to LSEG data, analysts had on average expected revenue of 1.42 billion dollars and a profit per share of $1.29. The company said that the decline in revenue was primarily due to lower shipment volumes and lighter weights, despite higher freight prices. In a press release, CEO Marty Freeman stated that the decrease in revenue has had a deleveraging impact on many of our operational expenses. Operating ratios, which are a key measure of operating expenses as a percent of revenue for a company, have increased to 74.6%, up from 71.9% one year ago. However, they improved since the first quarter. A higher ratio indicates a rise in costs and lower profitability. Daniel Imbro, Stephens analyst, said that the company has continued to control its costs during this recession. This is especially true given June's softer top-line figures. (Reporting and editing by Pooja Deai, Maju Samuel and Abhinav Paramar in Bengaluru)
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EU wheat prices rise, boosted by Russian prices
The price of European wheat rose on Wednesday, after the session had seen a sharp fall. This was due to strong Russian prices as well as concerns over Germany's crop. The benchmark September milling wheat price on Paris' Euronext closed at 227.37 euros per metric tonne, up 0.7%. A trader stated that "Euronext's not increasing because funds are selling", pointing out the high Russian prices. Russian farmers have started to sell their new crop more after an unusually low start. However, they are still demanding high price as many ships are waiting in export ports to load supplies, traders reported. In the next few days, a cargo of 63,000 tons wheat bound for Egypt is expected to arrive in French ports Rouen and La Pallice. Egypt's State Grain Buyer said in late June that it expects wheat shipments to come from France and other European nations as it continues its efforts to diversify the supply sources and bolster Egypt's strategic reserves. The traders were skeptical that large volumes of exports delayed had been shipped to other countries to supply. Traders said that the repeated rains in Germany and Poland during this week have caused quality damage at the last minute to some wheat that was ready to be harvested and disrupted harvesting. One German trader stated that the quality of German wheat has suffered some damage. Rain almost every day is the worst thing you can imagine. There is still the chance of a good crop, if weather conditions change. After all, most German wheat is harvested in August. In Germany, rain will continue to fall into the first week of next year. Rain has also disrupted the harvest in Poland. One Polish trader stated that "heavy rains in Poland and only a few sunny days have caused harvesting to be disrupted, and there is much uncertainty about the quality of wheat among the farmers." "I estimate that only 20% of Poland’s wheat has been harvested. The results vary greatly from region to region." Farmers talk about low quality criteria (low falling numbers) for wheat. This may mean that more than expected of Poland's crop will only meet animal feed standards. Reporting by Sybille De La Hamaide and Michael Hogan, both in Hamburg. Mark Potter is the editor.
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Portugal invests $4.6 billion, mainly private, in ports by 2035
The government of Portugal announced on Wednesday a plan to invest 4 billion euros ($4.6billion) over the next ten years in order to modernise and expand its major ports. 75% will be carried out by private companies. Infrastructure Minister Miguel Pinto Luz announced that the investment will be made in six port, including Sines (the closest deep-water European Port to the U.S. Coast), where the existing terminal is being extended and a brand new one built. He said that port activities in Portugal have "potential" to attract new investments, given the country's privileged position. The extensive Atlantic coast can be used as a gateway into the Iberian Market and to connect with trans-European transportation networks. Pinto Luz announced that 15 new exploration concessions will be launched. According to the new law, private operators can enjoy a maximum of 75 years instead of the current 30 years. These investments are expected to increase cargo movements to 125 millions tons per year by 2035. This is a 50% rise compared to 2023's most recent data. Container throughput will also increase 70% to 6.5 Million Twenty-Foot equivalent Units (TEUs).
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Airbus reports higher quarterly profit and maintains forecasts
Airbus, the European planemaker, posted higher-than expected second-quarter profits, thanks to its helicopter and defence units. It also maintained its full-year predictions as it seeks to reverse a decline in jetliner sales. The largest jetmaker in the world, which also produces satellites, fighters, civil and military helicopters and makes satellites - has announced that its adjusted operating profit nearly doubled to 1,58 billion euros ($1.81billion) while revenues remained roughly flat at 16,07 billion euros. The company also announced that it would increase its A330neo production target to five aircraft per month by 2029 in order to meet the growing demand for wide-body jets, while maintaining other production targets. Airbus's space business was expected to grow significantly, but its results in Defence and Space (the company's second largest division) and Helicopters were slightly better than forecasts. According to a consensus compiled by the company, analysts expected an adjusted operating profit of 1,47 billion euros for revenues of 15,78 billion euros during the second quarter. Airbus reported earlier a 5% decline in the first half deliveries of 306 aircraft due to engine delays. Airbus predicts an 820 aircraft increase for the entire year. Airbus continues to build aircraft while waiting for engines, but the delays are continuing to impact cash flow. Cash burnt more quickly than expected during the second quarter. The company has reaffirmed its financial targets, which exclude the impact of tariffs. However, CEO Guillaume Faury welcomed a weekend agreement between the EU and US to exempt aerospace from tariffs. Airbus has said that it expects a deal to be completed in the fourth quarter to purchase assets from Spirit AeroSystems. The struggling aerospace supplier is currently being split between Airbus, its US rival Boeing, and other parties to avoid its collapse. ($1 = 0.8721 euro) (Reporting and editing by Benoit van Overstraeten, Benoit Hepher)
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US investigates Army helicopter altitude in fatal January crash
The National Transportation Safety Board announced on Wednesday that tests revealed faulty altitude data on U.S. Army chopper aircraft like the one which collided with a plane of American Airlines on January 29 near Ronald Reagan Washington National Airport, killing 67 people. The NTSB's investigation will examine the air data systems, altimeters and the Federal Aviation Administration's oversight over Washington airspace as well as air traffic. The accident, which occurred a half mile southeast of the Potomac River airport and over the Potomac River, was the worst U.S. aviation disaster in 20 years. Army helicopters were found to have a discrepancy of up to 130 feet between their actual altitude and the height they reported in flight. The NTSB played audio clips of communications between air traffic towers in the minutes leading up to the crash, including a controller's request to the American Airlines aircraft to move to a new runway. The NTSB had previously stated that the helicopter was flying higher than the altitude recommended for the area when it crashed. The collision happened at a height of approximately 300 feet, which is higher than the maximum altitude the helicopter could have reached. A crew of experienced Black Hawk pilots was wearing night vision goggles while on an evening training flight. After a close call on May 1, which forced two civilian aircraft to abort their landings, the FAA banned the Army in May from helicopter flights near the Pentagon. This week, the FAA said that the helicopter flights were still on hold despite the fact that the agency had announced it had signed a revised agreement with the Army in July. Reporting by David Shepardson, Editing by Chizu Gregorio and David Gregorio
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UK airports affected by an air traffic control issue
The British air traffic controllers announced a technical problem that caused flights to be disrupted at London's major airports and other locations in the UK on Wednesday. However, they later reported the issue was resolved. Our engineers have restored the system which was affected today afternoon. NATS posted on X that they were "in the process of resuming regular operations in the London region". Heathrow Airport reported that all departures were halted. Gatwick Airport stated that the problem affected all flights departing the UK. In a statement posted on X, it stated that "there are no departures at London Gatwick until the situation has been resolved." London City Airport posted on X as well that the same problem affected flights at London City Airport. Edinburgh Airport said that departures are currently on hold pending further information from NATS. (Reporting and writing by Sam Tabahriti; editing by William James).
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ITA Airways' business plan aims for long-haul expansion and deeper Lufthansa ties
In a Wednesday statement, ITA Airways said that the board had approved a business plan for 2026-2030, which focuses on long-haul growth, fleet renewal and closer integration with Lufthansa. Italian airline, owned by the Italian government in majority and by Lufthansa at 41%, plans to expand intercontinental flights from Rome to North America, South America and Asia to increase tourism and trade. The airline plans to upgrade its fleet by adding one new long haul aircraft every year starting in 2026. By 2030, it hopes to operate around 100 Next-Generation jets. ITA is expecting deeper synergies between Lufthansa and ITA, including joining Star Alliance by 2026 and taking part in joint ventures on transatlantic and Japanese routes. "We are laying down the foundations to continue to be Italy's reference airline with a role strategic for the national economy system and to improve connectivity with the rest the world," stated chairman Sandro Papalardo. ITA CEO Joerg eberhart said that the strategy will create jobs and have a positive impact on the industry. (Reporting and editing by Angelo Amante)
Sources say that a limpet mine could have damaged a Greek tanker near Libya in the latest unaccounted for attack.
Sources in maritime security said that a limpet mine could have been responsible for the blast which damaged a Greek oil tanker off the coast of Libya last week. This is the fifth incident in recent months to affect commercial shipping in this region.
On Monday, TMS, the Greece-based operator of the Marshall Islands flag tanker Vilamoura, said that the explosion occurred in the engine-room of the vessel as it was leaving the Libyan port Zuetina to head to Gibraltar on 27 June with 1,000,000 barrels of oil.
Four maritime security sources stated that a limpet-mine was the likely cause of this explosion, according to their initial assessments.
An informed company representative said that TMS would not be able to determine the cause of the explosion until the ship arrived in Greece on Tuesday, or July 2.
MarineTraffic's platform, which tracks ships, showed Tuesday that the tanker's final position was near Greece's south coast.
TMS said in a Monday statement that the ship's engine was flooded by the explosion and it lost its maneuverability. However, the vessel was still able to tow towards Greece.
MarineTraffic's data shows that the vessel made two stops at ports in Russia, including Ust-Luga on the Baltic Sea and Novorossiysk on Russia's Black Sea.
In a recent report, Dryad Global, a British company that provides maritime cyber-defence and risk intelligence, said: "Investigations on the suspected limpet mining attacks on tankers are all linked to recent port visits at Russian ports. This indicates a targeted attack against vessels involved in Russian Oil Trade, probably driven by geopolitical pressures around Western sanctions."
The West has imposed sanctions on Russia for its involvement in the war in Ukraine. Separately, the Group of Seven major countries capped oil exports from Moscow at $60 per barrel.
In January and February of this year, three oil tankers were damaged in separate incidents by explosions around the Mediterranean. The causes are unknown.
These are the first incidents involving non-military ships that have occurred in the central Mediterranean region for many decades.
In February, a fifth tanker was damaged by explosions while anchored in Ust-Luga. This prompted divers in Russian ports to search for mines. Reporting by Jonathan Saul and Renee Maltezou; editing by Mark Heinrich
(source: Reuters)