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New York Times Business News - July 30,
These are the most popular stories from the New York Times' business pages. These stories have not been verified and we cannot vouch for the accuracy of these reports. Vinay Prashad, chief medical and scientific officer of the U.S. Food and Drug Administration, has resigned from the U.S. Department of Health and Human Services (which oversees the FDA). After a rare 8.8-magnitude earthquake hit Russia's east coast, the National Weather Service upgraded its tsunami warning to cover a 100-mile stretch of Northern California coastline between Cape Mendocino bordering Oregon. Union Pacific announced that it would purchase smaller rival Norfolk Southern for $85 billion, creating the first coast-tocoast freight railroad operator in the United States. This will reshape how goods are moved across the country from grains to automobiles. Apple is closing a retail store in Northeastern China this August. This will be the first time Apple has closed a location since opening its first outlet there in 2008. (Compiled by Bengaluru Newsroom)
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Wall Street Journal, July 30,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. California-based Palo Alto Networks has entered into talks with Israeli cybersecurity company CyberArk Software to purchase it in a deal valued at over $20 billion. Union Pacific announced that it will buy the smaller competitor Norfolk Southern for $85 billion. This deal will create the United States' first coast-to-coast rail freight operator, and change the way goods are transported across the nation from grains to automobiles. CBL Properties, based in Tennessee, has acquired four malls for the middle market from Washington Prime Group. The purchase price was $178.9m. This indicates that mall recovery extends beyond high-end and luxury properties. Mars, the candy and snack giant, announced that it will invest an additional $2 billion in its U.S. business through the end of next year. This investment is part of the company's efforts to continue to expand production in the U.S. JPMorgan Chase, the largest U.S. bank, is in advanced discussions to acquire Apple's credit cards program from Goldman Sachs. After senior White House officials intervened, a Trump administration attempt to block funding to all outside health researchers has been scrapped.
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Ferrovial's profit for the first half of 2018 is up 30%, thanks to U.S. highways
The Spanish construction giant Ferrovial announced late on Tuesday that its first-half profits had increased by 30% as revenues from the toll roads business in North America and Canada continued their strong performance. The net income increased to 540 millions euros (623.92millions) from 414 millions euros in the same period last year. Ferrovial Chief Executive Ignacio Madridejos said that the company's revenues increased by 5% during the first half of this year, partly because "the strong performance across all its North American assets". Ferrovial's revenue in the first half of its fiscal year from its highways division increased 15% thanks to the performance and traffic increase on its U.S. Express Lanes and Canada's 407. Ferrovial reported an increase in freight traffic in the United States during the first few months of this year. This reflects a rise in commercial activity in ports and on roads, while the Trump administration is discussing new tariffs. The company's construction division, which manages and builds concessions for motorways and airports, achieved an adjusted EBIT of 3.5%. North America represented 45% of the company's 17.3 billion euro order book. Ferrovial will build a new terminal for the John F. Kennedy International Airport in New York, which is expected to be finished by 2027. It is also focusing its efforts on bidding projects for express lanes in the U.S.
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Wordline forecasts decline in 2025 organic revenue
Worldline, a French digital payment company, said that it expects to see a decline of organic revenue in the low single digits by 2025 after a "challenging first half". The Paris-based firm has set a target of adjusted earnings before tax, depreciation, and amortization (EBITDA), between 825 to 875 million euros ($1 billion), this year. In a conference call with journalists, CEO Pierre-Antoine Vacheron stated that there was still work to do over the next few quarters to return to a growth level consistent with the market. Worldline delayed its annual guidance in April, following a strategic revamp initiated in May after the appointment of Vacheron. In February, the company forecast a similar growth rate in revenue for 2025 as it did last year. In June, the shares of Worldline lost more than a third in value on a single morning after a group consisting of 21 European media outlets claimed that Worldline had covered up fraud by clients to protect its revenue. The shares of the company hit a low point of 2.70 euros, before recovering in part. They closed at 3.57 euros, Tuesday, which valued the business at one billion euros. In June, Belgian prosecutors began an investigation into possible money laundering activities in its Belgian unit. Worldline engaged Accuracy as an auditing firm in July for its remaining merchant portfolio that engages in "risky activities". The company announced on Wednesday that the preliminary findings of this review indicate that there is no "material" reason to terminate any more client relationships. The company's analyst poll predicted 2.22 billion euros for the half-year, but it was only 2.20 billion. The company stated that the performance reflects challenges faced in the past months. Worldline announced on Tuesday that it had sold its Mobility & E-Transactional Services business to Magellan Partners for a price of up to 410 millions euro. Srikanth Seshadri, who will replace Gregory Lambertie as Chief Financial Officer at the company on September 8, was also announced. (1 dollar = 0.8663 euro) (Reporting and editing by Leo Marchandon)
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Air New Zealand names digital chief as its next CEO to navigate firm through challenges
Air New Zealand named Nikhil Ravishankar its new chief executive on Wednesday, replacing Greg Foran. The airline is currently dealing with supply chain and engine problems that will continue to impact earnings until 2025. Foran, who was hired by the airline as the COVID-19 epidemic was looming, announced his resignation in January and will be departing the airline in October. The flag carrier is still dealing with supply chain issues and engine maintenance problems. Ravishankar will take over the top position on October 20, after serving as Air New Zealand’s chief digital officer (CDO) for almost four years. Before joining Air New Zealand, Ravishankar held senior leadership positions at Vector, and Accenture, where Accenture was the managing director. Therese Walsh, chair of the airline industry, said: "Airlines continue to face enormous challenges. "Nikhil brings to the table a new perspective that is rooted in New Zealand values, and a profound knowledge of critical infrastructure and airline across various sectors." Air New Zealand has struggled due to a small domestic market, and the fierce competition of Australian carriers Qantas Airways & Virgin Australia. Air New Zealand has also experienced delayed plane deliveries, and several jets have been grounded. Foran, an ex-Walmart executive, led the Kiwi flag airline through a turbulent time. The airline faced unique challenges compared to other global airlines, in part due to the geographic isolation of the country. The airline had previously warned that up to eleven of its aircraft could be grounded at certain times during the second half fiscal 2025. This would have a negative impact on the firm's profits. The company also expects lower earnings in 2025. It cites uncertainty about global engine maintenance delays, and compensation levels.
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Source: Brazil asks US not to impose 50% tariff on Embraer planes and food products.
Sources familiar with the issue said on Tuesday that the Brazilian government asked the U.S. not to include food products or Embraer aircraft in the tariff of 50% it intends to impose starting August 1. Sources said that the request was at the forefront of recent discussions between Brazilian officials and U.S. officials. This included three recent calls between Brazil's Vice-President and Trade Minister Geraldo Alckmin, and U.S. Secretary of Commerce Howard Lutnick. The request was first published in the newspaper Folha de So Paulo on Monday. The press office for the Brazilian Development and Trade Ministry headed by Alckmin denied the report and said that the government was working to suspend tariffs in all sectors. A Brazilian official who spoke on condition of anonymity in order to discuss this sensitive subject acknowledged that there were some government priorities which it was not able to make public due a confidentiality clause within the negotiations. The source also said that the company wanted to avoid the impression that it was trading some sectors in exchange for others. The same source added, however, that certain sectors should be given priority in the discussions due to their severity in some areas. Embraer is the No. The government is most concerned about Embraer, the world's No. The company has warned that a tariff of 50% could lead to cancellations of orders, delayed deliveries, and job losses, which would negatively impact its revenue, just as the pandemic had. Ports and Airports minister Silvio Costa Filho stated that the government would "do everything in its power" to assist Embraer, hinting towards the possibility of providing credit lines for the planemaker. The U.S. also buys a lot of Brazilian food, including coffee and orange juice. Trump's tariff plan could have a devastating effect on Brazil's citrus belt. Factory production is already being cut back and farmers are considering letting fruit rot because of low prices. Tariffs may also halt the flow Brazilian coffee into the U.S.
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United Airlines flight attendants reject tentative agreement
The union representing United Airlines flight attendants said that the flight attendants voted Tuesday to reject a tentative agreement on a new contract. The Association of Flight Attendants - CWA, which represents United's 28,000 flight attendants, reported that 92% of eligible voters had cast a vote, with 71% voting against the agreement. According to estimates, the agreement that the union and United reached in May would result in a 40% financial gain for flight attendants during the first year of their new contract. Ken Diaz, the president of United Airlines' chapter of AFA-CWA said that the agreement did not "go far enough" to address the demands of flight attendants. Diaz stated that "our union will survey our members as soon as possible in order to identify the main issues that Flight Attendants want to fight for to be included in an agreement." The union will return to United Airlines' negotiating table until a new deal is reached. United's flight crews filed for federal mediation with the Department of Justice in 2023. They are now seeking a new agreement that includes a two-digit base pay increase, better compensation for hours worked, including time spent on the ground, as well as retroactive payment, more flexible scheduling, and improved rules. Since 2020, they haven't been given a raise. (Reporting and editing by Alan Barona, Bengaluru)
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FAA failed to act prior to helicopter crash: US Transport chief
Sean Duffy, U.S. Secretary of Transportation, said that the Federal Aviation Administration did not act on dozens near-misses before a deadly January crash involving an American Airlines regional plane and an Army helicopter at Ronald Reagan Washington National Airport. The mistake was that it was not anticipated. Duffy told reporters that there were 84 near-misses within the D.C. area in the previous three years, but no one took any action. Someone was sleeping at the wheel. "Someone should have seen it." The crash on January 29, which claimed the lives of 67 people, happened just a few days after Donald Trump was inaugurated. Duffy stated that it was unclear whether the safety data were elevated to the then Transportation Secretary Pete Buttigieg, or the FAA Leadership under President Joe Biden. In March, the National Transportation Safety Board reported that between 2021 and 2021, there had been 15,200 incidents of air separation near Reagan involving commercial aircrafts and helicopters. This included 85 close calls. Duffy stated that the FAA is looking into other recent near miss incidents and possible hot spots. Recently, we've had some near misses. Duffy said that the FAA is not ignoring this, and was evaluating "what steps we need to take to ensure it won't happen again." Both parties of Congress have asked why the FAA has not acted for so many years in response to close calls with helicopters near Reagan. "Clearly, Something was missed " FAA Deputy Director Chris Rocheleau told Senators in March. Early in May, the FAA banned the Army from flying helicopters around the Pentagon After a close call on May 1, Two civilian aircraft were forced to abort their landings. A three-day investigation into the crash in January will begin on Wednesday by the NTSB. The NTSB is reviewing the Army helicopter altimeters and air data systems as well as FAA oversight over Washington airspace. On Tuesday, Senator Ted Cruz, along with several other Republican Senators, unveiled legislation that would require military helicopters to use ADS-B technology for tracking aircraft when they are near civilian aircraft, and all civilian aircraft must use ADS-B. At the time of the collision in January, the accident helicopter did not use ADS-B. Reporting by David Shepardson, Editing by Chizu nomiyama and Les Adler
CMA CGM is interested in CK Hutchison’s port terminals
CMA CGM, the French shipping giant, said Tuesday that it was interested in taking some of CK Hutchison’s ports. Exclusive talks between CK Hutchison and a consortium led BlackRock ended this week.
CK Hutchison had agreed to sell a majority of its global ports business worth $22.8 billion to a consortium that included the family-run shipping firm MSC owned by Italian billionaire Gianluigi Apponte. However, the exclusive talks ended on Sunday.
CMA CGM would have greater control of its supply chain if it were to acquire a stake in CK Hutchison’s 43 terminals located in 23 different countries, as part of the preliminary deal. This is especially true if the company could secure one of the Panama Canal ports.
Ramon Fernandez, CMA CGM's Chief Financial Officer, told reporters that the second quarter results were important to the industry and the company.
He added, "We have 65 terminals in the world and we follow this operation closely. We are interested in taking part in it."
CMA CGM has already 65 terminals in the world.
CK Hutchison announced on Monday that it is in discussions with the consortium about adding a Chinese "major strategically investor" to their bid. Sources said the Chinese shipping giant COSCO may be interested.
CMA CGM reported a virtually stable second quarter sales of $13.2 billion. The net profit dropped to $521 from $661 millions a year ago.
The group was cautious in its outlook for the second part of the year. It cited geopolitical and economic uncertainties.
In the first five month of 2025, global container trade increased by more than 4%. This was primarily due to an increase in China's imports. China's exports fell by 8% to the U.S., but rose 18% to Southeast Asia, 15% to the Middle East, and 11% to the EU.
Fernandez explained that the new EU-US agreement will require operators adapt. However, it only affects about 2% global container trade, so its direct impact is limited in comparison to the larger shifts occurring between China and the U.S. (Reporting by Sybille de La Hamaide; editing by Giles Elgood)
(source: Reuters)