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Embraer completes sale of military cargo aircraft to Sweden as part of NATO's latest push
The Brazilian planemaker Embraer signed a deal with Sweden on Monday for the sale of four military cargo aircraft to replace Sweden's aged aircraft. This is the latest in a program to procure planes jointly with other countries from the region. Sweden has decided to purchase Embraer C-390 Millennium aircraft, after choosing the model in 2011. The Netherlands is leading the agreement as the agent and representative of the other countries involved in the strategic partnership. Bosco da Costa junior, Embraer's head of defense, said in an exclusive interview: "Under this contract the Netherlands added seven additional aircraft for allies." "This government-to-government process speeds up the purchasing process here in Europe." The shares of the Brazilian planemaker rose by around 3% during the afternoon trade, making it among the top gainers in Brazil's Bovespa Index. Analysts at BTG Pactual called the Swedish order a "positive shock" because it included an option to purchase seven more aircraft. Brazil, meanwhile, is increasing its fleet of Gripen jet fighters made by Swedish planemaker Saab. Since 2023, Saab has been working with Embraer to produce Gripens in Brazil. Costa said that the first made in Brazil Gripen will be delivered early next year. Embraer is working to expand the defense market abroad, mostly through C-390 sales. Costa stated that he hoped to make new announcements very soon. Brazilian Defense Minister Jose Mucio suggested that Finland and Turkey may purchase Embraer aircraft. Costa commented, "Minister Mucio says always wise things." "I hope that he's right again this time." U.S. INTENTIONS Embraer is longing to break into the U.S. Market, but tariffs on its planes imports could derail those plans. Although U.S. president Donald Trump exempted Brazilian aircraft from a tariff of 50%, the 10% previously imposed on them still stands. The planemaker lobbied for tariff relief after a U.S. and European Union aircraft deal. Embraer, as part of its bid to be exempted from the tax, has proposed building a $500 million U.S. Assembly Line for the KC-390 if the country decides to buy the military jet. The KC-390 is in direct competition with the C-130 Hercules, which is manufactured by Lockheed Martin. Costa stated that "we have been very vocal in expressing our interest in assembling and manufacturing the KC-390 here in the U.S." Northrop Grumman has the ability to assist Embraer in developing the aircraft here in the U.S., as the executive previously stated. Maybe we can announce the partner to the market before the end of the calendar year. Costa stated that this is what they are working towards. (Reporting and Additional Reporting by Isabel Teles, Writing by Kylie Madry, Editing by Richard Chang).
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US announces that subsidies for rural airlines service will expire on Sunday
A partial government shutdown is causing the Trump administration to announce that funding for a U.S. Government program that subsidises commercial air service at rural airports will expire on Sunday. The U.S. Transportation Department has said that the subsidies under the Essential Air Service Program are set to expire on Sunday, after it transferred funding unrelated from the Federal Aviation Administration in advance. The Department is currently in the process to notify carriers of the shortfall, and alert communities of potential impacts. About $350 million is allocated to the government annually. In May, the White House cut funding for Essential Air Service by $308 millions. This service is very popular among Republican legislators because it offers services in rural areas, which are largely Republican. The White House had proposed to kill the Essential Air Service Program during the first Trump Administration, but Congress chose to increase funding. The program usually subsidises two round-trips a day on aircraft with 30 to 50 seats, or more frequent flights with smaller aircraft. According to the department, under the program, approximately 65 Alaskan communities receive service as well as 112 other communities in the 49 states and Puerto Rico who would not otherwise receive airline service. At a recent press conference, Transportation Secretary Sean Duffy stated that "every state in the nation will be affected." He also noted bipartisan support. "We do not have the funds to continue this program." (Reporting and editing by David Shepardson)
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FedEx completes the leadership team for its upcoming freight division with the appointment of CFO
FedEx announced on Monday that it had appointed Marshall Witt, a former executive of the company, as finance chief for its freight trucking division. Witt will take up his new position effective October 15. This completes the leadership team in the division which is due to be spun off in 2026. The parcel carrier announced that Brad Martin, an insider, would be the new chairman of its less-than truckload division and veteran executive John Smith will serve as its CEO. The appointment completes soon-to-be-independent FedEx Freight's leadership lineup. Analysts have said that the segment has been undervalued by FedEx despite its dominance of the U.S. LTL market. Witt was CFO at TD Synnex, a technology company for 12 years. He managed the spin-off 2020 of Concentrix. He held a variety of roles at FedEx for more than 15 years, mostly in the freight finance division. FedEx is attempting to streamline its operations in order to focus more on its core parcels and express business. FedEx Freight is a service that caters to businesses in manufacturing, retail, and distribution. Citi analysts estimate its value at between $30 billion and 35 billion dollars. The unit consolidates multiple shipments of different customers heading to similar destinations on a single truck and generated $8.89 Billion in revenue in FY25. FedEx Freight employs approximately 40,000 people in North America and operates 355 service centres. It handles nearly 90,000 shipments per day. (Reporting from Abhinav in Bengaluru, editing by Vijay Kishore.)
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Source: Turkey's southern highway project gets 1.7 billion euro funding
A source familiar with this matter reported on Monday that Limak Holding, a Turkish company, has received a loan of 1.7 billion euros ($2 billion) from 14 institutions to help build a highway connecting Antalya and Alanya. The source told that 87% of the sustainability-linked credit, with a 14-year maturity, was provided by foreign-capital financial institutions. The agreement for financing was set to be signed in Ankara at a special ceremony on Monday. Source, who spoke on condition of anonymity before the ceremony, stated that the project should be completed in three years. Source: The funding process attracted 2.1 more requests than was required. The highway will reduce travel time between two popular tourist locations on Turkey's south coast from 2 1/2 hours to 36 min. Limak, a construction-to-energy conglomerate, will work with a financing consortium including the Asian Infrastructure Investment Bank, Islamic Development Bank, Silk Road Fund, Akbank, Deutsche Bank, Garanti Bank and Ziraat Bank, the source said. The Antalya - Alanya Highway is 122 km long (76 miles) and will include 84 km of highway, 38 km of connecting road following a corridor at the foothills the Taurus Mountains. $1 = 0.8578 Euros (Reporting and Writing by Ebru Tunicay; Editing by Jonathan Spicer; Ros Russell, Aidan Lewis).
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Union urges air traffic control workers to continue working despite shutdown
The union that represents more than 13,000 air-traffic controllers urged their members to continue working during the partial government shutdown, which requires them to work for free. On Monday, U.S. Transportation Sec. Sean Duffy will hold a press briefing at Newark Liberty International Airport with the President of the National Air Traffic Controllers Association to discuss the impact of the shutdown. United Airlines has a major hub at the airport near New York City. The union warned workers that participating in a "job action" could lead to removal from federal employment and was illegal. The union reminded its members that it was more important than ever to continue providing the high level of service and consistency we offer every day. We cannot emphasize enough how important it is to avoid actions that may reflect badly on you, your union or our professions. Around 50,000 Transportation Security Administration (TSA) employees who work at airport security checkpoints must also continue working but do not get paid. During a 35-day government shutdown in 2019, the number of controllers and TSA agents absent increased as they missed paychecks. This led to longer waits at checkpoints at some airports. The authorities were forced to reduce air traffic in New York. This put pressure on legislators to end the standoff quickly. In 2019, NATCA said that many controllers were at "the breaking point." Nancy Pelosi, then-House Speaker at the time, said that the shutdown "pushed our airspace to breaking point." Airlines for America, the airline trade group that represents United, Delta Air Lines, American Airlines and Southwest Airlines warned of the possibility that "the system could slow down and reduce efficiency", which would impact travelers. In July, the Congress approved $12,5 billion for a major overhaul to be completed over a period of five years. Flights have been delayed due to a persistent controller shortage. Many are also working six-day work weeks and mandatory overtime. About 3,500 air traffic control positions are not enough to meet the FAA's target staffing levels. Bill Berkrot edited the report by David Shepardson.
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The US Supreme Court will not hear Russian bank appeals over Malaysia Airlines crash
The U.S. Supreme Court refused to hear on Monday a request by Sberbank to avoid a lawsuit filed under the American anti-terrorism laws alleging it had done business with a group accused of downing a Malaysia Airlines plane over Ukraine in 2014. The Supreme Court rejected Sberbank’s appeal against a lower court ruling that allowed the family of Quinn Schansman (18-year-old American passenger) who died in the crash to sue the state controlled lender. Schansman's Family sued under the Anti-Terrorism Act. This law allows U.S. citizens injured by "acts of international terrorism", to seek damages through private civil suits. The 2nd U.S. Circuit Court of Appeals in New York ruled on February that Sberbank was not entitled to sovereign immunity against claims it used the U.S. banking system to funnel donor money to Donetsk People's Republic, or DPR, a Russia-backed separatist group. Circuit Court of Appeals ruled that Sberbank did not have sovereign immunity from claims that it used U.S. banking systems to funnel money to Donetsk People's Republic (DPR), a Russia-backed rebel group. On July 17, 2014, a surface to air missile shot down Malaysia Airlines Flight MH17 from Amsterdam to Kuala Lumpur over the DPR controlled territory in eastern Ukraine. Schansman was one of the 298 passengers on board, and was travelling for a family vacation. The Russian government denied any involvement. Ukraine declared the DPR to be a terrorist group and the United States imposed sanctions against the group. In 2020, the Russian Ministry of Finance purchased a majority stake of Sberbank. Sberbank claimed it was entitled to immunity under the Foreign Sovereign Immunities Act as a "foreign country". It claimed that the 2nd Circuit made a mistake by finding that it was engaged in commercial activities, which would trigger an exception to immunity. The bank said that this outcome was "particularly problematic in an increasingly fraught environment" where the United States, and other countries "not generally considered to be proverbial "black hats", nevertheless support non-state actor. Sberbank stated that allowing lawsuits like the one filed by the Schansman Family could lead to retaliation from other countries and expose the United States of America to liability for the activities of "militant groups" they support under the Anti-Terrorism Act. Lawyers for the Schansmans argued that there had been no confusion in lower courts regarding the scope of the exception for commercial activity. The Schansmans also claimed that Sberbank is not a foreign state under the Anti-Terrorism Act. Reporting by Jonathan Stempel, New York; editing by Will Dunham
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Government source: There is enough Russian oil on the market to satisfy Indian refiners
A government official said that there is sufficient supply of Russian crude oil on the market for Indian refiners, as Ukraine's attack on Russia's energy infrastructure has reduced its refining capability and made more crude readily available. When India refused to comply, Washington imposed tariffs of up to 50% on U.S. imported goods from India. The official who declined to be named due to the sensitive nature of the matter said that Indian refiners still buy Russian oil. India is the largest buyer of Russian oil sold by sea. The oil was discounted after certain Western nations refused to buy it and imposed sanctions against Moscow because of its invasion of Ukraine. Trade sources reported that the discounts for Russian Urals crude shipped to India are now only $2-2.50 below Brent for loading in November, down from $20-$25 when the conflict began in February 2022. The number of attacks by Ukraine on refineries and pipelines for export has decreased Russian oil refinery By cutting exports to key ports and reducing oil production by nearly a fifth, Moscow is on the verge of reducing its own production. Refinery failures in Russia during September The surpassed In August, the drone attacks by Ukraine were responsible for these deaths. The first source added that the Indian refiners were also considering buying more oil from the United States and liquefied gas. This would depend on New Delhi's outcome in its trade negotiations with Washington. (Reporting and editing by Emelia Sithole Matarise and Kevin Liffey; Reporting by Nidhi verma)
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Tesla's German sales of cars fell in September, but EV sales grew overall
The German road traffic agency KBA reported on Monday that Tesla's German sales volume fell by 9.4% during September. However, overall sales of electric battery vehicles increased by 31.9%. In September, registrations of Tesla vehicles in Europe rose due to the updated Model Y. The U.S. electric car maker is still under pressure due to a growing number of competitors, political criticism against Elon Musk's CEO and an aging lineup. KBA reported that Tesla sold 3,404 vehicles in Germany in September. Tesla's sales in the period January-September dropped by 50.3%, to 14,845 vehicles, compared with last year. KBA said that the number of electric vehicles registered in September increased by 31.9% to 45 495 units. The German agency said that sales of BYD, a Chinese electric vehicle manufacturer, increased by more than 20 times in September compared to the same period last year. This brings the total number of units sold this year up to 11,810 since the start of the year. Tesla is hosting an event on October 7 to discuss its move to cheaper EVs. The company hopes to win back customers by offering low-price models. (Reporting and editing by Miranda Murray, Matthias Williams and Miranda Murray in Gdansk)
Petrobras, Brazil's gas importer, purchases natural gas for the first-time from Argentina
Petrobras, Brazil's state controlled oil company, announced on Monday that it had imported its first non-conventional gas from Argentina's Vaca Muerta Reserve in the Neuquen Basin.
The firm said in a press release that the gas, which was produced by POSA and Pluspetrol, its subsidiaries in Argentina, was transported via pipelines on Friday.
This initiative is in line with the Brazilian President Luiz-Inacio Lula Da Silva's aspirations. He has been pressing Petrobras for years to increase domestic natural gas supply, to lower prices for consumers.
This solution is a logistical and commercial one that opens up a new option for importing gas to Brazil. It reflects Petrobras commitment to increase supply and sustainable development of the gas market.
The company stated that under an agreement signed between the two companies, Petrobras can import natural gas up to 2,000,000 cubic meters on a discontinuous basis.
Over the last year, the transportation of natural gases from Argentina to Bolivia involved extensive negotiations that included the governments of both countries.
Petrobras is not the only Brazilian company to import goods. TotalEnergies imported a similar product in April.
Gas from Vaca Muerta is piped to Matrix Energia, in Sao Paulo. This transaction involved a daily average of 500,000 cubic metres over a 10 day period. Reporting by Isabel Teles, Marta Nogueira and Fernando Cardoso; writing by Fernando Cardoso and editing by Franklin Paul and Chris Reese
(source: Reuters)