Latest News
-
Databricks buys Sequoia's Tecton to push AI agents
Databricks, a company that offers AI agents, will expand its AI agent offering by acquiring machine learning startup Tecton. This is the latest of a series of deals aimed to offer full-scale AI tools for enterprise clients, said its chief executive on Friday. Tecton is backed by Sequoia Capital, Kleiner Perkins and provides software to help companies analyze data and deploy it at scale, with low latency. The financial terms of the Databricks private shares deal were not disclosed. Tecton's last valuation was $900 million, in a private funding round for 2022. It has approximately 90 employees. Databricks announced this week it had signed a Term Sheet for a New Funding Round at a Valuation of More Than $100 Billion, an increase of over 60% from 8 months ago. Tecton, founded in 2020, has raised $160M from investors such as Andreessen-Horowitz and Bain Capital Ventures. Former Uber engineers created Michelangelo a platform for AI that Uber uses internally to perform real-time pricing. Databricks CEO Ali Ghodsi stated that Tecton’s technology and talent would help Databricks to develop Agent Bricks, Databricks’ flagship product, which automates workflows using AI agents. This is because the competition to provide AI tools for businesses has intensified. The acquisition will help customers build interactive services to reduce response times for AI applications. He said that the speed of AI applications such as voice interactions is critical. "Many use cases are directly human-facing. Humans hate to wait." Both companies had a close relationship. In 2022, Tecton partnered up with Databricks and its competitor Snowflake. Both platforms are now investors in the startup. Ghodsi stated that many Tecton customers, including the crypto exchange Coinbase, already use Databricks services. He said that the acquisition will help deepen relationships with customers who rely on both technologies. This deal is part of Databricks acquisition spree. Fueled by its soaring valuation, it has been buying venture-backed startups as it develops a comprehensive AI Platform. Databricks purchased generative AI platform MosaicML in 2023 for $1.3 billion, Tabular in 2020 to bring Apache Iceberg creators in-house and Neon earlier this year for $1 billion. Reporting by Krystal H. Hu, Toronto; Editing and proofreading by Edmund Klamann
-
Spirit Airlines hires advisors to evaluate options after redesign efforts fail, WSJ reports
Spirit Airlines, according to sources cited by the Wall Street Journal on Friday, has hired advisers to examine strategic options, after its financial restructuring failed. According to a report, the airline has partnered with financial adviser PJT Partner and also consultancies FTI and Seabury Airline Strategy Group. Budget airline did not respond immediately to a comment request. Spirit's future is uncertain, just months after it emerged from bankruptcy. The loss-making airline has raised new doubts over its ability to continue as a going concern due to weak domestic demand and diminishing cash reserves. Spirit Aviation Holdings shares, which are the parent company of Spirit Airlines fell 14.6% in after-hours trade to $1.40. After years of losses and debt, the airline filed for bankruptcy protection in November last year after a failed merger attempt, heavy losses, and years of failure. The bankruptcy was declared in March after a restructuring approved by the court and backed up by the creditors. It is believed to be first major U.S. airline to declare Chapter 11 since 2011. Moody's joined Fitch on Friday in further downgrading Spirit Airlines, which is based in Dania Beach (Florida). The ratings firm highlighted the "higher-than-expected cash burn" when compared with earlier forecasts, at the time the airline emerged out of bankruptcy. Fitch downgraded Spirit's rating last week, citing the high probability of a near-term default. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru)
-
Air Canada's labor agreement faces strong opposition on wages and could fail
Sources and cabin crew familiar with the situation have said that many Air Canada flight attendants were not happy with the wage increases included in the tentative agreement reached to end a crippling walkout earlier this week. Union members might also reject the deal. Five flight attendants contacted by said that they intend to vote against the deal because it does not provide a living wages to entry-level employees and doesn't fully address concerns over lack of payment for waiting hours for a plane. The union leader acknowledged that many of his members were disappointed with the agreement, which had been initially hailed as a victory for the union after an overnight blitz. This sentiment was also expressed on social media by people who claimed to be flight attendants but could not confirm this. The flight attendants refused to give in to government pressure to end the strike. This forced Air Canada to return to the bargaining tables, where they reached a settlement to end the four day action that left half a million passengers stranded. The deal raised hopes that Canada’s largest airline would pay crews on the ground, for tasks such as boarding and assisting passengers. As details became available, it became apparent that the proposed contract had limitations in terms of ground pay. One attendee said that this frustrated many attendees at town hall-style events. Sources familiar with the issue said that it was unclear whether the vote will pass. Wesley Lesosky is the president of Air Canada, a component of the Canadian Union of Public Employees that represents flight attendants. He said he understands the frustration of members. He explained that when the government announced it would force flight attendants to arbitration, the union was faced with the dilemma of protecting gains made at the bargaining tables while also wanting to give its members the opportunity to vote on the agreement. He said that if the agreement is rejected, the wage section of it will be decided at arbitration. The remaining items, however, will continue to move forward. The union was successful in getting the company to move forward with the wage item separately from other items. We feel that our members were successful as they remained strong on the picket line. The union has said that flight attendants who reject the offer during the voting period of August 27-September 6 cannot strike again legally. Voting against the contract will prolong the dispute which led Air Canada to withdraw its financial guidance for this year. One flight attendant, who did not want to be identified, said that the offer from Air Canada is still not "livable". There has been some reporting on social media posts. However, we are the first to interview flight attendants who have explained their opposition to the plan. CRY OUT TO TEARS One attendant stated that the frustration of unionists was evident during a virtual meeting held with members. She and other attendants asked to remain anonymous due to rules of the company and stated that some attendees cried when hearing about the contract. The gains over the next four years would amount to an average wage increase of 20% for flight attendants at the entry level and 16% for cabin crew with more experience. The hourly wage increase will be accompanied by 60 minutes pre-flight payment on narrowbody aircraft and 70 minutes for widebody jets with two aisles. In year one, the crew's pay would start at 50%, increasing to 70% in year four. Flight attendant with seven-year experience says she'll vote no citing unpaid and underpaid work. She would not receive payment for the four-hour delay that she experienced on a long-haul flight. Air Canada has not yet commented. Credit rating agency Moody's lowered the outlook of the company on Tuesday. Moody's believes that the strike will have a limited impact on Air Canada's earnings in the near term, but the new contract for flight attendants is expected to increase wage costs and put pressure on margins. Reporting by Kyaw Oo, Allison Lampert, and Rajesh Kumar Singh. Editing by Caroline Stauffer and Peter Henderson.
-
Air Canada's labor agreement faces strong opposition on wages and could fail
Sources familiar with the situation have said that many Air Canada flight attendants were not satisfied with the wage increases included in the tentative agreement reached to end a crippling walkout earlier this week. The deal is unlikely to be approved by union members, cabin staff and other sources. Five flight attendants contacted by said that they intend to vote against the deal because it does not provide a living wages to entry-level employees and doesn't fully address concerns over lack of payment for waiting hours for a plane. The union leader acknowledged that many of his members were disappointed with the agreement, which had been initially hailed as a union win. This sentiment was also expressed on social media by people who claimed to be flight attendants but could not confirm this. The flight attendants refused to give in to government pressure to end the strike. This forced Air Canada to return to the bargaining tables, where they reached a settlement to end the four day action that left half a million passengers stranded. The deal raised hopes that Canada’s largest airline would pay crews on the ground, for tasks such as boarding and assisting passengers. As details became available, it became apparent that the proposed contract had limitations in terms of ground pay. One attendee said that this frustrated many attendees at town hall-style events. Sources familiar with the issue said that it was unclear whether the vote will pass. Wesley Lesosky is the president of Air Canada, a component of the Canadian Union of Public Employees that represents flight attendants. He said he understands the frustration of members. He explained that when the government announced it would force flight attendants to arbitration, the union was faced with the dilemma of protecting gains made at the bargaining tables while also wanting to give its members a chance to vote. He said that if the wage part of the tentative contract is rejected, it will be decided at arbitration. The remaining items, however, will continue to move forward. The union was successful in getting the company to agree that the wage item would be moved forward separately from other items. We feel our members were successful because they held firm on the picket line. The union has said that flight attendants who reject the offer during the voting period of August 27-September 6 cannot strike again legally. Voting against the contract will prolong the dispute which led Air Canada to withdraw its financial guidance for this year. One flight attendant, who did not want to be identified, said that the offer from Air Canada is still not "livable". The first time that multiple flight attendants, and other sources have been interviewed to explain why they are against the plan, and to suggest that the vote may not receive the required 50% plus one member support. CRY OUT TO TEARS One attendant stated that the frustration of unionists was evident during a virtual meeting held with members. She and other attendants asked to remain anonymous due to rules of the company and stated that some attendees cried when hearing about the contract. The gains over the next four years would amount to approximately a 20% increase in wages for flight attendants at the entry level and 16% for cabin crew with more experience. The hourly wage increase will be accompanied by 60 minutes pre-flight payment on narrowbody aircraft and 70 minutes for widebody jets with two aisles. In year one, the crew's pay would start at 50%, increasing to 70% in year four. A flight attendant with seven-years' experience has said that she will not vote for the bill, citing unpaid wages and work. She would not have been paid for the four-hour delay that she experienced on a recent transatlantic plane. Reporting by Kyaw Oo, Allison Lampert, and Rajesh Kumar Singh, Editing by Caroline Stauffer and Peter Henderson, and David Gregorio
-
Tour bus rolls over on New York highway, causing multiple deaths
Police said that a tour bus with about 50 passengers rolled when the driver lost his control on a highway in western New York, causing dozens of injuries and multiple deaths. James O'Callahan is a Trooper with the New York State Police. He told reporters that they believe there was a child among those who died. The majority of passengers were Asians or people of Asian descent. This included Chinese, Indians, and Filipinos. The accident occurred on Interstate 90 in Pembroke (New York), about 30 miles east from Buffalo, while the bus was travelling from Niagara Falls to New York City. O'Callahan stated that some passengers were still trapped inside the wreckage, while others were ejected when the bus rolled. He said that the driver, who survived, lost control of the bus while it was moving at high speed and caused it to flip over when he attempted to correct its course. There were no other vehicles involved. The police had contacted the bus company that was not identified immediately. Everyone on the bush suffered at least some injuries. After the accident, authorities shut down the highway in both direction, causing major traffic delays on one of the final weekends of summer vacation. Rich McKay reported from Atlanta, Frank McGurty edited by Cynthia Osterman.
-
Boeing Defense and striking machinists announce Monday's return to negotiations
Boeing and the officials of the striking Machinists Union are scheduled to resume contract negotiation on Monday, both the company and the union confirmed on Friday. On August 4, about 3,200 members of International Association of Machinists and Aerospace Workers, or IAM, went on strike in the St. Louis area after refusing Boeing Defense's offer of a four-year contract. Boeing's F-15, F/A-18, T-7 trainer jets, munitions and wing sections of the 777X commercial jet are assembled by these workers. Boeing Defense spokesperson Didi vanNierop stated that the company has been able to maintain production and flight testing using non-union employees. Top machinists and U.S. Rep. Wesley Bell (a Missouri Democrat) walked a strike picket with striking workers on Thursday. They pressed the company to reach a similar agreement as last year's with workers in Seattle. Boeing's St. Louis top executive, Dan Gillian responded on Thursday with a written statement defending the offer that was rejected by IAM members of District 837. He said, "Our offer is strong both then and now, with an average wage growth of 40%." IAM International President Brian Bryant said that workers want a contract with higher general wages, faster wage progression and improvements to the company’s 401(k). Bryant, Bell and other union leaders joined the picket line of workers. Workers in the St. Louis area rejected an offer that included a 20% wage increase for all workers, a $5,000 bonus to ratify their resignation and additional vacation and sick time. Boeing stated at the time that the bonus would no longer be offered if the offer was rejected. Bryant stated that the threat was "disrespectful" to District 837 members. "I'm feeling a bit pissed right now." The IAM District 751 members, who build most of Boeing's planes in the Northwest, ended their seven-week strike last November when they approved a contract for four years that included a wage increase of 38%, increased retirement contributions, restoration and reinstatement of an annual bonus as well as a signing bonus of $12,000, plus a promise to build Boeing’s next commercial aircraft in the Seattle region if it is launched during the contract period. Boeing's Defense Division is expanding its manufacturing facilities in St. Louis for the new U.S. Air Force F-47A fighter jet after winning the contract earlier this year. (Reporting and editing by Franklin Paul, David Gregorio, and Dan Catchpole from Seattle)
-
Boeing Defense and striking machinists announce Monday's return to negotiations
Boeing and the officials of the striking Machinists Union are scheduled to resume contract negotiation on Monday, both the company and the union confirmed Friday. After rejecting Boeing Defense's offer of a four-year contract, approximately 3,200 members of IAM went on strike on August 4, at its facilities in the St. Louis area. They assemble Boeing F-15 and F/A-18 combat aircraft, the T-7 training jet, munitions and wing sections of the commercial 777X jet. Boeing Defense spokesperson Didi vanNierop stated that the company has been able to maintain production and flight testing as well as other work using non-union employees. Top machinists and U.S. Rep. Wesley Bell (a Missouri Democrat) walked a strike picket with striking workers on Thursday. They pressed the company to reach a similar agreement as last year's with workers in Seattle. Boeing's St. Louis top executive, Dan Gillian responded on Thursday with a written statement defending the offer that was rejected by IAM members of District 837. He said, "Our offer is strong both then and now, with an average wage growth of 40%." IAM International President Brian Bryant said on Thursday that workers want a contract offering with higher general wages, faster wage progression and improvements to the 401(k). Bryant, Bell and other union leaders joined the picket line of workers. Bell's congressional district includes a large number of workers. Workers in the St. Louis area rejected an offer that included a 20% wage increase for all workers, a $5,000 bonus to ratify their resignation and additional vacation and sick time. Boeing stated at the time that the bonus would no longer be offered if the offer was rejected. Bryant stated that the threat was "unrespectful" to District 837's members. "I feel a bit pissed right now." The IAM District 751 members, who build most of Boeing's aircraft in the Northwest, ended their seven-week-long strike in November by approving a four year contract. This contract included a wage increase of 38%, increased retirement contributions, the restoration of an annual incentive, and a signing bonus of $12,000, as well as a promise to build Boeing’s next commercial plane in the Seattle region, if it is launched during the contract period. Boeing's Defense Division is expanding its manufacturing facilities in St. Louis for the new U.S. Air Force F-47A fighter jet after winning the contract earlier this year. (Reporting and editing by Franklin Paul, David Gregorio and Dan Catchpole from Seattle)
-
BNSF and CSX launch a new coast-to-coast link to boost freight services
CSX, owned by Berkshire Hathaway, and BNSF, which is also owned by Berkshire Hathaway announced on Friday new coast-tocoast services that will boost freight connectivity across the United States. Shares of CSX dropped about 6% following the announcement but have risen about 5% this year. The new routes will connect Southern California to Charlotte, North Carolina and Jacksonville, Florida. This move follows reports last month that a possible deal could be struck between the two railroad companies to counter a rival merger of Union Pacific and Norfolk Southern. Union Pacific has launched an intermodal domestic service connecting Southern California's Inland Empire to the Chicago area earlier this month. CSX has also been under pressure from activists. Ancora , which calls for a merger, or a change in leadership, and Toms Capital Investment Management Request to meet with the Railroad Operator's Board Better intermodal volumes helped CSX top analyst estimates for Second-quarter profit In July, there are many holidays. Rail operators have long envisioned linking the U.S. Atlantic Coast and Pacific Coast by rail. This is particularly true today, as the industry struggles with increased operational costs and labor shortages. Surface Transportation Board approval is required for any merger due to concerns about pricing power and consolidation in the industry. (Reporting from Nathan Gomes, Bengaluru; additional reporting by Abhinav Paramar; editing by Pooja Deai).
The US price bubble is deflated by the copper glut caused by the tariff threat
The U.S. President Donald Trump’s 50% tariff on the metal has caused a record-high premium in the United States. This is expected to decrease over the next few months, as traders who anticipated the tax will work their way through the system.
An investigation that began in February led to the tariffs. Commerce Secretary Howard Lutnick stated they would likely be implemented by August 1, or even sooner.
Analysts had predicted that the levy will be 25%. That was enough to cause stockpiling, which led to a 25% increase in the copper price traded on COMEX from the beginning of January until Monday.
Trump's announcement Tuesday pushed prices up to a record of $5.6820 per lb, or $12,526 per metric ton. This is a premium over $2,920 for a ton compared to the current price at the London Metal Exchange which is currently around $9600. The market uses this as its global benchmark.
Tom Price, Panmure Liberum's analyst, said: "Once the Trump-related noise subsides, we expect U.S. Copper prices to fall. They will converge with LME Prices as U.S. Consumption is deferred." Tom Price said that the U.S. demand for copper was weak, and predicted a drop of 16% this year to 1.32 millions tons compared to last year.
The uncertainty over tariffs has hampered economic growth.
The latest data from the U.S. Manufacturing sector, which is a major driver of demand for copper, shows that it has contracted.
The U.S. inventory is very high.
Analysts at Macquarie estimated that U.S. imports of copper totaled 881,000 metric tonnes in the first six months of the year, compared to a requirement of approximately 441,000 tons.
This implies a build-up of 440,000 tonnes of excess inventory, consisting of 107,000 tonnes of visible COMEX stock and 333,000 of unreported stocks or purchases pulled forward through the industrial supply chain.
As US stocks rise, London Metal Exchange Stocks fall
The excess copper has been shipped to COMEX-approved warehouses. COMEX's stock of 221,788 short tonnes or 201 metric tons on July 7 had risen by over 127,000 short tons (135%) since late March, when shipments of copper from around the globe began arriving in U.S. port.
The LME is the source of most copper exported to the United States. In late June, stocks had fallen by 66% since mid-February, to almost 90,000 metric tonnes, the lowest level since August 2023.
The copper that is shipped to the U.S. can be stored in U.S. Free Trade Zones, which means it won't have to clear customs. This makes it easier to ship.
Copper stored in COMEX, which operates on a tax-paid basis will be harder to ship but not impossible.
Duncan Hobbs said that there is no reason why copper cleared by customs cannot be reexported. He was the Research Director for commodity merchant Concord Resources. There would have to be some kind of financial incentive like a reduction in the COMEX premium.
The LME is a good option for those who want to sell excess metal. However, it would be difficult to do so in the United States, as LME warehouses tend not be in free-trade zones, and they typically store metal that has been duty-free.
Metal that has been cleared by customs can be stored and sold at the LME, but the price must be high enough to cover the duty already paid.
Sources in the industry say that the Administration could create exemptions for specific countries. This would reduce the COMEX premium and add to the uncertainty.
According to Trade Data Monitor, Chile was responsible for 70 percent or almost 646,000 metric tonnes of U.S. imports of copper last year. Chile is also a country with a surplus in trade, which makes it an attractive exemption.
Citi analyst Tom Mulqueen expects, for example, that Canada, Chile, and Mexico will "secure a rate of less than 25% as key partners" in the future.
The traders who tried to get ahead of the tariff now have some of the most costly copper in the entire world. It could be difficult to sell if the premium does not hold. (Reporting and editing by Veronica Brown, Barbara Lewis and Pratima Deai)
(source: Reuters)