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Union Pacific CEO talks to Trump about $85 billion plan for Norfolk
Union Pacific Corp CEO Jim Vena and U.S. president Donald Trump met in the Oval Office on Friday to discuss the railroad’s proposed $85billion buyout of Norfolk Southern Corp, according to the company. The company is seeking regulatory approval for the largest U.S. railway merger in decades. The announcement in July of a merger between two major U.S. railroad operators shocked a market that was already very concentrated. Under the Biden administration's aggressive antitrust policies, such a proposal was unthinkable. The White House didn't immediately respond to an inquiry for comment. Trump's backing could speed up the review process in an agreement that is facing opposition from rivals, and pushback by shippers who are concerned about reduced competition. If approved, the deal could transform the U.S. rail freight industry, creating the first coast to coast single-line network. It would streamline operations and eliminate interchange delays at key hubs such as Chicago. Vena and Trump discussed in the White House meeting "how creating a transcontinental railroad for the United States is a win-win situation for the U.S. consumers and unionized workers, whose jobs would be protected if the merger was approved," according to a company statement. Vena told a Morgan Stanley Conference on Wednesday that the day before he met with "very senior officials in the administration", without naming any names. They get it. "They get it. Vena stated during the conference that they thought it was a win-win situation for the country. People briefed about the talks say that Union Pacific asked for input from the administration before launching its bid and received support to move ahead. Trump stated on Fox News on Friday that he had met Vena CEO to discuss the merger. RIVALS BOXED IN Union Pacific is the dominant freight rail carrier in western United States. Norfolk Southern, on the other hand, is the leading carrier in eastern United States. Together they make up two of the major U.S. class I railroads along with BNSF Railway, CSX Corp, and BNSF. The industry was expecting the remaining regional rivals of Union Pacific and Norfolk to rush to merge forces in order to compete with a continental giant. Last month, Warren Buffett sent a clear message against any further consolidation. He said he wasn't interested in purchasing another railroad. BNSF has recently increased commercial agreements with CSX rather than pursuing a merge. CSX is under pressure from activist shareholders to make strategic adjustments, which could include M&A. Before making any decisions, both companies closely monitor how regulators react to the Union Pacific and Norfolk merger. Buffett's strategy could change if he sees signs of White House support. BNSF and CSX are the two major U.S. railroads that do not operate a transcontinental network. The White House announced on Thursday that it would nominate Surface Transportation Board Member Michelle Schultz to a second term, and Richard Kloster, the head of a private consulting firm in transportation, for an open seat within the agency. Last month, the White House fired Surface Transportation Board Member Robert Primus. Primus was appointed by former President Joe Biden. A person familiar with the transaction stated that the dismissal was the best possible sign of White House backing for the deal.
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Thales, Airbus, Leonardo eye initial agreement on 10 bln-euro satellite JV, sources say
Sources close to the situation said that Europe's aerospace companies Leonardo, Thales, and Airbus are redoubling their efforts to combine satellite businesses in a 10 billion euro ($11.7 billion) joint venture with a French headquarters. They hope to reach an agreement within weeks. The three companies have set up "Project Bromo" to create a satellite manufacturer to compete against rivals in China and the U.S. Three sources reported that the talks have gained momentum following a difficult summer period when the parties were unable to agree on governance and valuation. This stalled an agreement. According to another source, the talks appeared to be at risk of collapsing. Sources said that a memorandum could be signed as soon as the end of September. However, timing could change. Three sources stated that while the political signals have been encouraging so far, details about ownership and governance still need to be signed by all nations involved. Three sources said that the venture will include entities dedicated to protecting sensitive national interests. Sources warn that an agreement is not guaranteed and that talks may still fail. Sources said that the exact ownership stakes in the new space venture were still being negotiated. They added that the ownership stakes could be divided roughly into three equal parts. Two sources stated that the new satellite venture's value of 10 billion euros is based on the combined revenue of the units of 6 to 6.5 billion euros, and the sector peers which trade at 1.5 to 3 times revenue. Leonardo has declined to comment. Airbus made reference to the comments of CEO Guillaume Faury who stated earlier this week that companies were working towards a deal, and speaking with European governments. He told reporters in Washington that "we are on our way". Faury said, "We are currently in the process of obtaining anti-trust approval and have begun to communicate with stakeholders." Thales stated: "At this stage, no agreement has been reached." We continue our work. "Any further comment is premature." The preliminary attempts to create an European satellite champion over the last decade failed partly due to antitrust concerns and rivalries between nationalities. The dramatic growth of Starlink, and the shift to cheaper satellites in low orbits has increased the pressure on Europe's top satellite manufacturers to either combine their assets or face being pushed off the market. The European Union is trying to increase its sovereign capability as tensions in the geopolitical arena have increased and U.S. policy has changed. Analysts say that all three companies are owned by minority governments and any agreement involving sensitive technology or assets would require political approval. The final details of the deal are still being negotiated, but a person with knowledge of the matter stated that the venture would likely be based at Airbus' Toulouse facility. In Europe's fragmented aeronautics sector, decisions on the location of corporate power centers are often sensitive. The Italian industry ministry did not respond to a request for comment. The German defense ministry has not responded immediately. APE, France's state-owned shareholding agency, declined to comment. A potential deal could create a European satellite champion based on the missile manufacturer MBDA owned by Airbus Leonardo and BAE Systems. MBDA is a company that was formed in 2001 by the merger of Anglo French Matra BAe Dynamics and France's Aerospatiale Matra Missiles, as well as missile activities of Anglo Italian Alenia Marconi Systems. Sources said that the new venture, like MBDA's, will combine a mix of unified activities across borders with separate entities to protect sensitive interests.
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Via, a transit technology company, is valued at $3.5 Billion as its shares drop in the NYSE debut
Via Transportation, a transit technology company, was valued at $3.5 Billion on Friday following its shares' 4.4% decline in their NYSE debut. The stock opened at $44, which is below the $46 offered price. Shareholders can be sold via the internet Sell 493 Million Dollars to raise $493 Million 10,7 millions shares priced above the range of $40-$44. Investors are reviving the U.S. IPO Market as easing tensions in trade and expectations of lower interest rates have boosted investor appetite. This has led to the busiest U.S. IPO week since 2021. Via, unlike traditional ride-hailing services, works in conjunction with public transportation networks. New York-based company offers software and operational services for cities, transit agencies and schools. It combines on-demand ride-sharing with intelligent routing in order to optimize public transportation. It is growing, but the business remains unprofitable. Via reported a revenue of $107.1m and a loss of $21.2m for the three-month period ending June 30. The model Via provides has its own challenges, including lower margins, slower scale across jurisdictions, dependence on local relationships, and compliance with regulatory requirements, said Kat Liu. Vice president of IPOX research, she noted that the exposure to public sector budgets and complexity in regulatory issues continues to be a risk. Globally, the need to improve public transportation systems is becoming more important due to climate change, increasing congestion and rapid urbanization. The performance of "tech" IPOs has also varied. While tech IPOs were the most popular this year, standout performers mainly came from AI and FinTech. Edward Best, partner of Willkie Farr and Gallagher, said that other tech segments had mixed but generally positive results. Via is one of the biggest transportation-related tech IPOs in the U.S., according to data from Dealogic.
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Thales, Airbus, Leonardo eye initial agreement on 10 bln-euro satellite JV, sources say
Sources close to the situation have told us that Leonardo, Thales, and Airbus, three European aerospace companies, have intensified their efforts to merge their satellite businesses and aim to reach an agreement within weeks. The three companies will create a satellite manufacturer under "Project Bromo", named after a volcano in Indonesia. This company will compete against rivals such as Elon Musk's Starlink, which is based in the U.S. and China. Three sources claim that the talks have gained momentum following a difficult summer, when the parties were unable to reach an agreement on governance and valuation. According to another source, the talks appeared to be at risk of collapsing. Sources said that a memorandum could be signed as soon as the end of September. However, timing may slip. Three sources stated that while the political signals have been encouraging so far, details about ownership and governance still need to be signed by all nations involved. Three sources said that the venture will include entities dedicated to protecting sensitive national interests. Sources warn that an agreement is not guaranteed and that talks may still break down. Sources said that the exact ownership stakes in the new space venture were still being negotiated. They added that the venture's ownership could be divided roughly into three equal parts. Two sources stated that the new satellite venture's value of 10 billion euros is based on the combined revenue of the units of 6 to 6.5 billion euros, and the sector peers which trade at 1.5 to 3 times revenue. Leonardo's spokesperson declined to comment. Airbus made reference to the comments of CEO Guillaume Faury who stated earlier this week that the companies were working towards a deal, and had been in contact with European governments about the venture. He told reporters in Washington that "we are on our way". Faury said, "We are currently in the process of obtaining anti-trust approval and have begun to communicate with stakeholders." Thales stated: "At this stage, no agreement has been reached." We continue our work. "Any further comment is premature." The preliminary attempts to create an European satellite champion over the last decade failed partly due to anti-trust concerns as well as national rivalries. The dramatic rise of Starlink, and the shift to cheaper low-orbit satellites has increased the pressure on Europe's major suppliers to either combine assets or face being pushed off the market. The talks to reshape industry structure are part of an effort by Europe to increase sovereign capabilities, as geopolitical conflicts have increased and U.S. policy has shifted. Analysts say that all three companies are owned by minority governments and any agreement involving sensitive technology or assets would require political approval. The Italian industry ministry did not respond to a request for comment. The German defense ministry didn't immediately respond. APE, France's public shareholding agency, declined to comment. A possible deal would create a European satellite champion based on MBDA missile maker, which is owned by Airbus Leonardo and BAE Systems. MBDA, founded in 2001 by the merger of Anglo French Matra BAe Dynamics and France's Aerospatiale Matra Missiles with missile activities from Anglo Italian Alenia Marconi Systems, was formed through a merger of Anglo French Matra BAe Dynamics. In June, it was reported that Thales Alenia space and Telespazio, which are currently joint ventures between Leonardo and Thales, would be part of the new structure.
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Union Pacific CEO talks to Trump about $85 billion plan for Norfolk
Union Pacific Corp CEO Jim Vena and U.S. president Donald Trump met in the Oval Office on Friday to discuss the railroad’s proposed $85 Billion buyout of Norfolk Southern Corp. The company is awaiting regulatory approval as it waits for what could become the U.S. rail freight industry's largest consolidation in decades. White House support may accelerate the lengthy review despite opposition from competitors and concerns from shippers about reduced competition. The White House didn't immediately respond to an inquiry for comment. If approved, the merger could transform the U.S. rail freight industry, creating the first coast to coast single-line network. It would streamline operations and eliminate interchange delays at key hubs such as Chicago. A company statement said that Trump and Vena "discussed how creating an American Transcontinental Railroad is a win-win for U.S. consumers and unionized workers, whose jobs would be protected if the merger was approved." Vena, at a Morgan Stanley event on Wednesday, said that he met with senior officials of the administration, but did not name them. "They understand the strategic value of what we are proposing." He said, "It's a win for the nation."
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Whaleboat sinks into river in Congo, killing at least 107 people
According to a government internal report viewed by us on Friday, at least 107 people died when a whaleboat caught blaze in the west of Democratic Republic of Congo. In a memo, the Ministry of Social Affairs stated that 146 people were missing after the boat, which was a narrow double-ended open vessel, caught fire near Malange Village in Lukolela Territory on Thursday night. The note stated that rescue teams recovered 209 survivors after the vessel burnt and drifted downriver. The fire destroyed the cargo and 15 riverside houses. The search operations continued Friday, with community volunteers and naval personnel combing the banks. Authorities pledged to provide medical care to the injured and assistance to the bereaved. They also promised to repatriate survivors back to their origins and destinations. The river is the lifeline of the vast rainforests of the Congo, where wooden boats are the primary means of transport. However, accidents are common due to overloading and poor maintenance, as well as the use of nighttime riverboats. State media reported that eight people were pulled from the water by local residents. The accident occurred just days after 86 people drowned in a separate shipwreck at the confluence between the Nsolo River and the Great Maringa River in Basankusu Territory, northeast of Malange. Akula Mboyo, a civil society activist, said that the motorised canoe "sank because of blatant overloading and night navigation which is officially prohibited." Rescue operations can be hampered due to limited resources or remote locations. The death toll at Basankusu could not be independently verified and the officials who were contacted for comment could not be reached immediately. Reporting by Ange Kaongo, Congo Newsroom; Writing by Ayen deng Bior; Editing and proofreading by Portia Crowe & David Gregorio
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Spain hosts China Trade Talks and sees a chance to mend ties with the US
Spain is looking at hosting the United States-China talks in the next few days as an opportunity to repair relations with Donald Trump's administration, after Washington branded its plan to stop arms sales to Israel "emboldening terrorism". Treasury Secretary Scott Bessent chose Madrid to host their discussion, and a Spanish government source confirmed that Spain would take advantage of this opportunity. The U.S. said Tuesday that measures announced by Prime Minster Pedro Sanchez to restrict access to Spanish airspace and ports for ships and aircraft carrying weapons for Israel are "deeply concerned" because they could limit U.S. operation. According to an agreement signed in 53, the U.S. Military has been using the Moron Air Base and Rota Naval Base, both in Southern Spain, for over 70 years. Sanchez angered Washington by saying that Spain would not raise its defence spending from 3% to 5% of the gross domestic product. Trump then threatened to increase tariffs on Spain. Spain's relations with China are improving as its ties with America deteriorate. Sanchez, who has been to China three times within the last five years, switched from supporting EVs in China to abstaining on the issue of tariffs. He is trying to position Spain as a mediator between China and Europe. The fact that the U.S. used Spain's bases to refuel during the bombing of Iranian nucleus sites in June proves that Spain has never crossed the line, and that the transatlantic relationship is intact. This was stated by Jose-Ignacio Torreblanca senior advisor to the Madrid Office of the European Council on Foreign Relations. Torreblanca stated that "we do not know yet who requested (Spain hosting the event) - if it was the Chinese. But it is good news for Spain." He said that Spain's government will have the chance to talk with Bessent about its concerns and this will give Madrid an "advantage" in future negotiations. Reporting by Charlie Devereux, Aislin Laing and William Maclean.
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US launches pilot program for air taxi deployment
On Friday, the Trump administration announced that it would be launching a pilot program to accelerate the deployment of flying taxis. This is to help companies meet the regulatory hurdles in order to provide advanced air mobility. The Federal Aviation Administration announced that the program would include at least five public-private partnerships between state and local governments, private sector companies and the Federal Aviation Administration to ensure safe operation of electric vertical takeoff (eVTOL), aircraft. Joby Aviation has praised the program. "Aircraft in the program are able to begin operations in selected markets before full FAA certification. This is a crucial step in preparing scaled commercial services." The first to report the rise in air taxi stocks was. Archer Aviation shares rose 3%, while Joby shares grew 5%. Air taxi companies are racing to get approvals and to commercialize air taxi aircraft in order to meet the demand for more efficient and sustainable urban transportation. They promote eVTOLs, which can land and take off vertically. This allows them to get around traffic to transport passengers to airports or short city trips. In June, President Donald Trump issued an executive order to create the program. Other countries such as India, China and the United Arab Emirates are also working to accelerate deployment of eVTOLs. These aircraft could start carrying paying passengers by next year. FAA Administrator Bryan Bedford stated that the agency would use the lessons learned in the pilot projects for safe and scalable operations across the country. Projects include the development of short-range air taxis and longer-range fixed-wing flights. They also include cargo and logistical services, as well as supply for emergency management, medical transport or offshore energy facilities. Participants will use advanced air mobility, which will be generally over 1,320 lbs (599kg) and capable of carrying passengers. They will also use technologies that enable safe integration of the aircraft into the national system of airspace. In October 2024, the FAA will finalize comprehensive training and certification rules for air taxi pilots.
FAA wants to fine Boeing $3,1 million for safety violations
Federal Aviation Administration proposed a fine of $3.1 million against Boeing on Friday for a number of safety violations. These included actions related to the mid-air Alaska Airlines 737 MAX 9 emergency in January 2024, as well as for interfering with the independence and integrity safety officials.
The FAA found hundreds quality system violations in the Boeing 737 factories in Renton, Washington and Wichita Kansas, as well as Spirit AeroSystems, a Boeing subcontractor.
Boeing also failed to comply with the rules of its quality system and presented two aircraft that were not airworthy to the FAA in order to obtain an airworthiness certificate.
The FAA determined that a Boeing employee pressed another Boeing worker who was performing tasks for the FAA, to sign off on a Boeing 737 MAX plane so the company could keep its delivery schedule despite having determined that the aircraft did NOT comply with standards.
Boeing and Spirit AeroSystems have not yet commented.
The National Transportation Safety Board found that Boeing had failed to provide sufficient training, guidance and oversight in order to prevent Alaska Airlines' mid-air panel blowout, which plunged the planemaker into crisis.
The board severely criticized Boeing’s safety culture, its failure to install key bolts into a MAX 9 in production and the ineffective supervision by the FAA.
FAA Administrator Bryan Bedford said earlier this week that the agency has not yet made a decision about whether or not to lift the 737 MAX monthly production cap of 38 planes, which was in place from early 2024. It also did have no decisions on how the agency would oversee Boeing production.
Before a certificate of airworthiness is issued or an aircraft cleared for delivery, the FAA inspects each 737 MAX & 787 aircraft. The FAA typically delegated the authority for issuing airline tickets to the manufacturer.
(source: Reuters)