Latest News
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Trump cancels US funding of $4 billion for California High-Speed Rail
The U.S. president Donald Trump announced on Wednesday that the Transportation Department will revoke $4 billion of U.S. Government funding for California's High-Speed Rail Project. The Department said that there is no viable way forward for California High-Speed Rail and was considering clawing back any additional funding for the project. Last month, the Federal Railroad Administration released a 315 page report citing missed timelines, budget shortages and questionable projections of ridership. California has not allocated the $7 billion additional funding required to build a 171-mile initial segment between Merced, California and Bakersfield. California High-Speed Rail System (California High-Speed Rail System) is a two-phase 800-mile (1,287-km) system that will reach speeds up to 220 mph. It is intended to connect San Francisco with Los Angeles/Anaheim and, in the second stage, to extend north to Sacramento, and south to San Diego. California High-Speed Rail Authority has previously stated that it strongly disagrees the conclusions of the administration, "which are misleading and do not reflect substantial progress made in delivering high-speed train in California." The authority noted that California Governor Gavin Newsom’s budget proposal to the California legislature provides at least $1 billion in funding per year for the next twenty years, "providing necessary resources to finish the project's first operating segment." In May, the authority reported that civil construction is underway along 119 miles of Central Valley. Transportation Secretary Sean Duffy stated that "Newsom's California high-speed rail boondogle is the definition of incompetence by government and possible corruption." Newsom replied on social media, "Won't take advice from the guy that can't keep airplanes in the air." The project was approved by voters in 2008 for $10 billion, but costs have increased dramatically. Under former president Joe Biden, the Transportation Department awarded this project approximately $4 billion. The San Francisco to Los Angeles project, originally estimated to cost $33 billion by 2020, has now increased from $89 billion up to $128 billion. Biden restored in 2021 a $929-million grant to California's high speed rail project that Trump had revoked after calling the project "a disaster" in 2019.
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WSJ reports that new details in the Air India crash investigation shift attention to the plane's pilot.
The Wall Street Journal reported Wednesday that a cockpit recording of the dialogue between two pilots on the Air India flight which crashed last month shows that the captain shut off the switches controlling fuel flow to the plane's engine. People familiar with the early assessment by U.S. officials of the evidence found in the investigation into this crash that killed 260 people were quoted in the newspaper. Reports state that the first officer who was piloting the Boeing 787 Dreamliner asked the captain, who had more experience, why he put the switches in the "cutoff position" after the plane climbed off of the runway. The WSJ reported that the first officer was surprised and panicked while the captain remained calm. Air India, Boeing and India's Directorate General of Civil Aviation did not respond immediately to requests for comments on the report. Captain Sumeet Sabharwal, and First Officer Clive Kunder had a total of 15,638 and 3,403 flying hours respectively. The preliminary report of India's Aircraft Accident Investigation Bureau, released last week, depicted confusion within the cockpit just before the crash on June 12, and raised new questions about the location of the crucial engine fuel cutoff switch. Anusha in Bengaluru, Himani Sarkar & Jamie Freed edited the story.
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Brazil's highest court supports Lula's tax increase, exempts forfait
The highest court in Brazil upheld the majority of a controversial decree by President Luiz-Inacio Lula Da Silva to raise the Financial Operations Tax. This was a win for the government, as it increased revenue. Judge Alexandre de Moraes has ruled only that the tax increase on forfait, which is the advance payment made to suppliers and previously treated as credit operations by the government, will be reduced. Congress had suspended the decree, which included tax increases on other financial transactions like credit, foreign exchange and private pension transactions. This led to the dispute being brought to the Supreme Court. Brazil's Finance Ministry issued a press release that welcomed the decision of the court, saying that it would help restore harmony among branches of government. It said that blocking the proposed IOF on forfait payments would result in a revenue loss of 450 millions reais ($80.9m) this year, and a further 3.5billion reais by 2026. According to the ministry, this entire decree will boost state coffers in the amount of 12 billion reais by 2026. ($1 = $5.5678 reais). (Reporting and writing by Andre Romani, editing by Chris Reese, Sarah Morland and Chris Reese in Brasilia)
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United Airlines' profit falls below expectations as travel expenditure drops
United Airlines announced on Wednesday that it would report a lower than expected profit for the quarter ending September, as concerns about rising living expenses and an uncertain economy have caused a reduction in discretionary spending. However, the Chicago-based carrier said that it had seen a significant increase in bookings for business travel in the current quarter compared to a year ago. United anticipates a profit adjusted in the range $2.25 per share to $2.75 for the quarter ending September. According to LSEG, the midpoint of United's forecast is $2.50 a share. This compares with an average analyst estimate of $2.60. The disruptions at Newark Airport are expected to have a negative impact on its earnings for the third quarter. Now, the company's adjusted full-year profit is estimated to be between $9 and $11 per share. Analysts had expected $10.04 per share. After-hours, the company's stock was down by 2.5%. United Airlines took a unique step in April by offering two different forecasts of earnings, as the trade war between President Donald Trump and his business partners has weakened consumer confidence. This makes it difficult for carriers to predict their business. Industry executives claim that travel demand has stabilised since then. Government data show that passenger traffic in the U.S. is still lower than a year earlier, resulting in a decrease in air fares. United stated that demand trends have improved thanks to a reduction in macroeconomic and geopolitical uncertainty. (Reporting and editing by Franklin Paul, Sandra Maler, and Rajesh Kumar Singh)
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NDTV reports that an Air India investigation found no problems with the fuel control switches on Boeing Boeing 787s.
Air India completed its inspection of the fuel control switches in Boeing 787 aircraft and found no problems, Indian broadcaster NDTV reported on Wednesday. Boeing and Air India didn't immediately respond to comments. Could not verify the NDTV story immediately. India ordered Monday that its airlines examine the fuel switches of several Boeing aircraft models. South Korea took a similar step on Tuesday. The fuel switch locks are at the center of an investigation into last month's deadly Air India crash, which killed 260 people. India's Directorate General of Civil Aviation said that it had issued an order for investigation of locks on various Boeing models including 787s, 737s and 777s after several Indian airlines and international carriers began their own inspections of the fuel switches. The preliminary report on the crash released last week found that the switches were almost simultaneously switched from the run position to the cutoff position shortly after takeoff. Reports on the deadliest aviation incident in the last decade reveal that the Boeing Dreamliner, bound for London out of the Indian city Ahmedabad, began to lose thrust shortly after takeoff. Reporting by Rishabh JAISWAL in Bengaluru, Editing by Devika SYAMNATH
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US House passes procedural hurdle for cryptocurrency legislation
The Republican-controlled U.S. House of Representatives cleared a key procedural hurdle Wednesday, setting the stage for likely passage of several cryptocurrency bills a day after President Donald Trump intervened to save the initiative. The House can now consider the bills, which the crypto industry has long sought and is expected to pass. The vote came a day after conservative Republicans defeated a similar procedure amid a dispute about how to proceed with bills. After the House's approval of a measure that would create a federal framework to support stablecoins is set to be signed by Trump, it will mark a major victory for crypto. Stablecoins Crypto traders use to transfer funds between tokens. They have grown in popularity over the past few years. Their proponents claim that they can be used to instantly send payments. House Republicans were unable to pass the bills on Tuesday after several conservative Republicans sided with Democrats to stop an earlier procedural voting. But Trump Meeting with the Hold-outs The vote will be held on Wednesday. (Reporting and editing by Cynthia Osterman; reporting by Pete Schroeder)
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US FAA does not plan to replace L3Harris; Verizon contracts Starlink
The Federal Aviation Administration has told Congress that it does not plan to replace the L3Harris telecommunications contracts with Verizon Communications and the Starlink unit from Elon Musk's SpaceX. The FAA has not been informed of any attempt by SpaceX, to take over the (telecommunications contracts). FAA Administrator Bryan Bedford stated in a Tuesday letter to legislators that the FAA has not considered SpaceX as a replacement for those who were awarded these contracts. "FAA will not use Starlink or any satellite service as the only communications technology for safety critical air traffic services." The Congress approved $12.5 billion for the overhaul of air traffic control. This includes billions to upgrade telecommunications technology. Sean Duffy, Transportation Secretary, said on Wednesday that a majority of the funds allocated for telecoms would be used to replace copper wires with fiber. Duffy stated, "That was our mission. Not some sort of competitive advantage for Starlink." Duffy reiterated the fact that U.S. telecommunication companies have agreed not to charge the FAA obsolescence fee of $800,000,000 annually in order to maintain the copper wire system as the agency switches to fiber optics and upgrades its networks. Starlink stated in March that its services could be a partial solution to an old system. Starlink has no intention or effort to "take over" any existing contract. Many Democrats had suggested that the FAA could cancel a $2.4billion contract with Verizon in favor of Starlink. They cited Musk's role, as he was the head of the Department of Government Efficiency, which was responsible for cost-cutting operations. Musk also criticized the FAA's current telecom system. Musk's relationship began to deteriorate with President Donald Trump in late May, over Trump's spending plans. The two are now embroiled in a bitter feud. The FAA is testing a dozen Starlink terminals as part of its Telecommunications Infrastructure Program, which is administered by L3Harris. Bedford, FAA's Bedford, said that the agency had asked L3Harris, a company specializing in evaluating a wide range of technologies and capabilities, such as fiber, satellite and wireless, to improve and modernize telecommunications provided by about 200 companies. This included Starlink.
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IAG to expand Lisbon hub and invest in Portugal TAP
British Airways' owner IAG announced on Wednesday that it would expand its main Lisbon hub and invest in the Portuguese flag carrier TAP if IAG were to win the race for a partial privatisation stake in TAP. Portugal has relaunched its long-delayed TAP privatisation last week. It aims to sell a stake of 44.9% to an airline with global scale and competition, plus an additional 5% for TAP staff. IAG, one of the three largest European airline groups, has met with the government in the last year to discuss privatisation. Lufthansa, and Air France-KLM are the other two. IAG welcomes the... privatisation process. TAP will flourish under IAG's proven and distinctive model, which focuses on expanding strategic hubs and investing in airlines," said a spokesperson for the company. TAP's main assets are its connections with Brazil, Portuguese-speaking African nations, and the United States, from its Lisbon hub. The government wants to maintain and expand this. Some analysts criticize the potential IAG acquisition because the Lisbon hub is so close to IAG's Madrid base, which is owned by Spanish airline Iberia. IAG, on the other hand, could move routes from Lisbon to Madrid in the future, decreasing the importance of Portugal's hub. The spokesperson stated that Dublin's Aer Lingus has doubled their long-haul flight capacity, despite being close to British Airways London hub. This is "a compelling example" of what TAP can achieve. Reporting by Sergio Goncalves. (Editing by Andrei Khalip, Mark Potter and Mark Potter.)
Kinder Morgan, a pipeline operator, posts higher profits in the second quarter.
Kinder Morgan reported a 24% increase in its second-quarter profits on Wednesday. This was largely due to higher volumes of gas being transported through the company's pipelines.
Kinder Morgan, for example, is betting on an increase in demand for LNG from LNG export installations as well as electricity for AI operations and cryptocurrency mining.
In 2024 the United States will be the world's largest LNG exporter. Exports are expected to grow even more as new terminals become operational after President Donald Trump lifted the pause on new permits.
Richard Kinder, Executive Chairman, said: "Our company's future is bright, with historic growth in natural gas demand, a favorable federal regulatory environment and federal agencies that are very supportive."
Kinder Morgan says that the results of the survey come at a time when the energy sector is bracing for the impact Trump's tariffs will have on the majority of imports.
It does not anticipate any significant impact to project economics. The impact of tariffs will be only 1% the existing project costs.
In the quarter reported, the company transported approximately 44,585 billion British Thermal Units per day of natgas, compared to 43,123 Btu/d in last year's report.
The total volume of fuel delivered, including refined products like jet fuel and diesel, increased to 2,21 million barrels a day in the quarter ending June 30 from 2,17 million bpd a year ago.
The total backlog of projects, which accounts for approximately 40% of all natural gas produced in the country, increased by 6%, to $9.3 Billion, from the previous quarter.
Houston-based company's quarterly net income was $715 million or 32 cents a share. This compares to $575 million or 26 cents a share compared to a year ago. Reporting by Vallari Shrivastava, Bengaluru. Editing by Shailesh Kuber.
(source: Reuters)