American Airlines reports lower profits but wins on IT outage
American Airlines revised its 2024 outlook downward due to lingering impacts from a problematic booking system upgrade, leading to adjusted profit expectations of 70 cents to $1.30 per share, down from an earlier forecast of $2.25 to $3.25 per share. Despite a 46.4 percent drop in second-quarter profits to $717 million, revenues rose to a record $14.3 billion, up two percent from last year.
Apple’s China smartphone shipments drop 6.7% as Huawei surges, data shows
Apple’s total shipments for the quarter ending in June stood at 9.7 million units, down from 10.4 million units in the same quarter last year, Canalys data shows.
Airtel Africa reports $31 mn net profit in Q1FY25 on lower finance costs
Bharti Airtel’s Africa business reported a modest $31 million net profit in Q1 compared to a $151 million net loss a year ago, due to a sharp fall in finance costs. However, quarterly revenues fell on-year due to currency devaluation in Nigeria, affecting revenue by 16%. The company’s net finance cost for Q1 was $139 million, 34% lower on-year and 2.11% less sequentially.
Amid tensions with China, some US states are purging Chinese companies from their investments
Missouri State Treasurer Vivek Malek’s push to divest from Chinese companies has made the state one of the first to do so. Now, Malek is emphasizing this stance in his reelection campaign against Republican challengers, reflecting a broader opposition to financial ties with China among U.S. candidates.
China makes surprise cut to key lending rate
China’s central bank made an unexpected cut to a medium-term interest rate by the most in over four years to stimulate economic growth. This follows recent benchmark rate cuts and attempts to revive consumption and tackle high youth unemployment. Beijing targets five percent growth, but recent data shows slower recovery.
US files details of Boeing’s plea deal related to plane crashes. It’s in the hands of a judge now
Boeing agreed to plead guilty to a fraud charge for misleading the FAA about the 737 Max, leading to two crashes and 346 deaths. The plea deal includes probation, fines, and compliance investment. Victims’ families criticize the deal as too lenient and seek harsher penalties, including a trial and charges against Boeing executives.
The secret battle for the future of the Murdoch empire
Rupert Murdoch, in a legal dispute with three of his children over the family’s media empire, sought to ensure his son Lachlan would lead the company. Murdoch argued this was necessary to maintain its conservative stance and commercial value. A trial is set for September to determine if his actions were in good faith.
Porsche hit harder by supply chain shortage due to low-volume, high-spec lineup, says CEO
Porsche’s CEO revealed that the carmaker’s vulnerability to the recent aluminum supply shortage stems from its high proportion of pre-ordered, highly specific vehicles and low production volumes. CFO Lutz Meschke noted that, despite efforts to restore output, the company cannot fully compensate for the production disruptions.
Russia considering ban on diesel exports, Kommersant reports
The Russian government is considering a ban on diesel exports to combat rising domestic prices, with Kommersant sources suggesting that a decision has not yet been made. Russia, a leading seaborne exporter of diesel, is also restricting gasoline exports. The Energy Ministry is yet to comment on the potential export ban.
Tesla profit margins worst in five years as price cuts, incentives weigh
Tesla reported its lowest five-year profit margin, missing Wall Street earnings targets. CEO Musk announced 2025 models amid rising AI expenses and layoffs. Self-driving taxis and China-made EV sales dipped. Gross margin was 14.6%. Cybertruck production is progressing. Net income was $1.48 billion with $25.50 billion revenue. Shares fell 8%.
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BBC to axe 500 more jobs in bid to be ‘more agile’
The BBC will cut 500 jobs by March 2026, aiming to save £200 million amid inflation and funding challenges. Shifting to a digital-first approach, active licences dropped to 23.9 million. A 10 percent headcount reduction occurred previously. Facing a 30-percent income cut and £80 million loss, Tim Davie seeks government funding for the BBC World Service.
Budget 2024: Modi 3.0’s first Budget slashes corporate tax rates for foreign firms to deal another blow to China
Modi 3.0’s first Budget aimed to boost India’s economy by cutting tax rates for foreign companies, attracting more overseas investors amidst the global supply chain shift from China. The move aligns with India’s goal to reach a $5 trillion economy, emphasising FDI and positioning India as a global manufacturing hub. India’s ambitious vision to become a global manufacturing hub relies on a comprehensive approach, including policies like PLI, lower corporate tax rates, and infrastructure development.
Swiss bank Julius Baer names Goldman Sachs exec Stefan Bollinger as new CEO
Julius Baer appoints Swiss citizen Stefan Bollinger as CEO by February 2025 after Philipp Rickenbacher was ousted due to losses from Signa and Rene Benko loans. Chairman Romeo Lacher leads firm post-8% share drop, previous EFG International takeover talks, and private debt exit. Bollinger expanded EMEA at Goldman Sachs, Zuercher Kantonalbank, J.P. Morgan.
Air travel delays continue, though most airlines have recovered from global tech outage
Airline disruptions continue due to a faulty software update, with over 750 flights cancelled in the US. Delta Air Lines accounts for majority of cancellations. CEO working to resolve issues and offer waivers to affected customers. Inclement weather adds to delays in Southeast.
China’s SAIC Motor files defence to EU’s preliminary EV anti-subsidy ruling
SAIC Motor defended itself against the EU’s ruling, stating the EV probe involved commercially sensitive information beyond the normal scope. The European Commission had imposed up to 37.6% tariffs in July, ignoring critical information and inflating subsidy rates for many projects. SAIC, being the most affected, filed to safeguard its legitimate rights amid claims the investigation exceeded standard boundaries.
China surprises with cuts to key rates to support weak economy
China unexpectedly reduced a key short-term policy rate and benchmark lending rates on Monday to stimulate growth in the world’s second-largest economy. This move follows last week’s underwhelming second-quarter economic data and a significant meeting of China’s top leaders.
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