Thursday, June 13, 2024

Electric ‘seagliders’ that skim over water could make ferries a thing of the past

Jacopo Prisco, CNN
Wed, June 12, 2024 

Editor’s Note: This CNN series is, or was, sponsored by the country it highlights. CNN retains full editorial control over subject matter, reporting and frequency of the articles and videos within the sponsorship, in compliance with our policy.

You might be used to take-offs and landings, but you soon might need to get ready to “float, foil and fly.”

Those are the three phases of a journey aboard a seaglider, a new type of fully electric boat-plane hybrid that could become a mainstay of coastal communities the world over, according to its maker, Boston-based startup REGENT.


Just like a boat, a seaglider initially floats, then as it picks up speed it foils — gliding over the surface of the water using wing-like structures called hydrofoils, which retract as the vehicle finally takes off for the flying phase. It never reaches the sky, but rather flies up to 30 feet (nine metres) above the water, to leverage a principle called “ground effect,” which promises a smooth ride with reduced drag compared to a normal flight.

“We’re going to put humans on board a full-scale, 15,000-pound (6,800-kilogram) prototype later this year,” says Billy Thalheimer, co-founder and CEO of REGENT, adding that the first seagliders will carry up to 12 passengers and will have a range of about 180 miles (290 kilometers), which would put them in direct competition with small ferries and seaplanes.

More than 600 seagliders have already been sold for a total of over $9 billion, according to Thalheimer. The vehicles will be manufactured in North America, but REGENT recently signed a deal with the government of Abu Dhabi to build a second plant in the United Arab Emirates, to serve clients in the region and across Europe and Asia.

Once operational, seagliders will then connect Abu Dhabi to Dubai, as well as island communities that are currently underserved by existing services.

“We want to prove to the world that this is possible,” says Thalheimer, “specifically that in one vehicle you can float, foil and fly.”

A prototype of a seaglider taking flight - Regent


A classic concept

The “ground effect” principle that the seagliders use isn’t new; it was extensively tested by the Soviet Union in the 1960s, leading to some prominent examples of “ekranoplans” — large planes designed to fly at low altitude over water, ice or land — the most famous of which is the “Caspian Sea Monster.

“Technically, everything that flies leverages the ground effect during take-off and landing, so everyone has experienced it — they just don’t really realize it,” explains Thalheimer. “When you’re coming in on a bumpy approach, then sort of get right over the runway, and the plane just sort of floats for a second before landing — that’s the ground effect at work. Wouldn’t that be a great place to spend the entire flight, that nice calm state over the runway?”

The United States and Germany also experimented with ground effect vehicles, but ultimately the concept never took off. For the seagliders, the reduced drag allows for more range with existing battery technology, and smoothes the transition with the other phases of the journey, in the harbor, that are more akin to sailing than flying.

To create a modern and viable ground-effect vessel, REGENT had to solve several problems. First, Thalheimer says, seagliders are better at dealing with waves than vintage ekranoplans. “These things were skipping off the sea surface. At best, they were uncomfortable and really bumpy. At worst, you couldn’t operate them at all. We solved the wave tolerance problem with the hydrofoils,” he says, with full-scale seagliders able to tolerate waves up to five feet high.

The second challenge was maneuverability in a harbor; because ekranoplans didn’t have any waterborne steering mechanism, they were unsafe in a crowded harbor environment. The hydrofoils help, as do the three modes of operation. “Rather than going directly from floating to flying, we have this intermediate mode, foil. That foiling mode allows us to get through the harbor, it allows us to be a boat where it makes sense to be a boat,” he says. “And then once we get into the open water, where the traffic is truly dispersed, that’s when we take off onto the wing and settle into the ground effect.”

The last improvement is about safety, Thalheimer says. Old ground effect vehicles were more akin to aircraft, with pilots controlling them at all times. “From the pilot’s point of view that’s basically like landing a plane for the entire time you’re flying it — too mentally demanding. But now we have these incredible flight control sensors and software systems that let humans do what humans are good at, which is navigating, communicating, planning, and strategizing. We’re going to let the vessel fly itself and the only thing that the captain is doing now is boat controls: left and right, fast and slow. It’s a highly automated system that is still controlled by a human pilot.”

Seagliders are technically maritime vessels, which REGENT says will speed up certification and entry into service. - Regent


Island hopping

In the summer of 2022, REGENT tested a quarter-scale prototype of its seaglider — a remotely operated version weighing 400 pounds, with a wingspan of 18 feet. The full-scale commercial vehicle, named Viceroy, will have a wingspan of 65 feet and fly between 20 and 30 feet off the sea surface

Among the first customers to operate seagliders, Thalheimer says, will be Surf Air Mobility, a commuter airline that will use the vehicles to connect islands in Hawaii, and along the coastline of Miami, through Key West and out to the Bahamas. In Europe, Brittany Ferries has long expressed interest in the seagliders to connect the UK and France across the English Channel, and Thalheimer says deals are in place across the Mediterranean to connect the South of France and Italy, as well as the Greek islands. Japan Airlines and New Zealand startup Ocean Flyer will also be among the first operators, Thalheimer adds.

In Abu Dhabi, the seagliders will not just support tourism operations, but existing public transport bottlenecks. “Specifically, the Abu Dhabi Department of Transport is looking to increase connections to more distant emirates like Ras Al Khaimah, which are many hours away by car today, as well as underserviced Island communities in the Gulf, like Dalma Island,” he says. “We’re actually seeing this kind of model apply to many other island communities around the world.”

100 passengers?

Once Viceroy is up and running, REGENT plans to put into service an even bigger seaglider, called Monarch, which will have capacity for up to 100 passengers and, Thalheimer says, will enter service at the end of the decade. However, he adds, an improvement in battery technology would be required to support the hypothetical vehicles’ projected range of 300 to 500 miles.

According to Darren Biddlecombe, head of data at aviation consultancy firm AviationValues, REGENT’s plan is possible from a technological standpoint. “However, there are also regulatory and commercial barriers to bringing a new product to any market, and further challenges to becoming financially sustainable. Regent’s ability to turn its order book into actual deliveries will depend largely on how well it can attract — and retain — the necessary capital and expertise to overcome those challenges,” he says.

A potentially convenient and environmentally friendly form of travel certainly looks to be an interesting prospect, Biddlecombe adds, but it will come down to REGENT’s ability to produce and support the vehicles in such a way that operators can use them safely, reliably and at a cost that passengers are willing to pay. “That goes well beyond the vessels themselves to the training, infrastructure, parts and maintenance support, and regulatory approval,” he says. “If REGENT can navigate those waters, they may well have a shot.”

For more CNN news and newsletters create an account at CNN.com
CRIMINAL CAPITALI$M
Segantii Case Moves to District Court, Hong Kong Judge Rules





Kiuyan Wong and Bei Hu

Wed, Jun 12, 2024, 

(Bloomberg) -- Segantii Capital Management’s insider trading case will move to a Hong Kong District Court that can hand out longer prison sentences, as details emerged about the hedge fund’s alleged transgressions at a hearing on Wednesday.


The prosecution’s request to transfer the case was granted at an Eastern Magistrates’ Court hearing. The next hearing is scheduled to take place on July 2 at the District Court, which can mete out as much as seven years’ jail time for insider dealing convictions. The plan to transfer to a higher level court was reported earlier by Bloomberg News.

Hedge fund firm Segantii, along with founder Simon Sadler and former long-time trader Daniel La Rocca, face accusations by Hong Kong’s Securities and Futures Commission of acting on insider information prior to a block trade in 2017.

That block trade was the sale of a 10% stake in apparel retailer Esprit Holdings Ltd. on June 15 of that year by another hedge fund firm, Lone Pine Capital LLC, Bloomberg News reported this week.

Segantii allegedly received inside information from Tony Psarianos, who was identified as a person connected to Esprit in a court readout. Psarianos previously worked at Bank of America’s Merrill Lynch division, regulatory records showed.

The hedge fund sold about $1.14 million worth of Esprit shares on or about June 14, a day before the block trade, through Segantii’s account with UBS, according to the court summons. The trades included shares that Segantii already held as well as short sales and took place before Esprit’s block trade.

Esprit shares fell 25% over five trading sessions starting June 14, according to data compiled by Bloomberg.

On Wednesday morning, Sadler, La Rocca and their lawyers sat in a packed courtroom alongside people who were charged with lesser offenses such as careless driving, importing alternative smoking products, and operating unlicensed restaurants. A few middle-aged individuals helped to reserve seats for Sadler and his entourage when they were delayed by traffic.

Sadler, who was represented by barrister Benson Tsoi, was accompanied by Segantii’s Chief Executive Officer Kurt Ersoy, who represented the investment firm. La Rocca, whose attorneys include Joseph Lee and Alan Linning, sat separately from his former bosses. Niral Maru, Segantii’s chief compliance officer, also attended the hearing. No plea was taken Wednesday.

Sadler and La Rocca’s bail terms were extended on the same conditions as before. The SFC was represented by its own counsel, Jenny Wai. The case will be handled by Hong Kong’s Department of Justice when it is heard before the District Court.

Segantii, which was founded in Hong Kong in late 2007, was one of Asia’s largest and best-performing hedge funds with $4.77 billion in assets under management at the end of April. It was a prized client of Wall Street banks and a big buyer of shares in public stock offerings as well as block trades, which are off-exchange sales of large chunks of shares.

Three weeks after the insider charges became public, Segantii came to an abrupt decision to wind down its hedge fund and return outside capital to its investors.

Its directors determined the risks associated with the legal action may adversely impact its ability to implement the investment strategy, according to a letter to investors seen by Bloomberg News.

(Updates with no plea was taken in ninth paragraph. An earlier version was corrected to say Segantii traded through its account with UBS per the summons in sixth paragraph.)

Most Read from Bloomberg Businessweek

 Allied Properties Cut to Junk by Moody’s on Office Vacancy Woes



Chunzi Xu
Tue, Jun 11, 2024

(Bloomberg) -- Moody’s Ratings downgraded Allied Properties Real Estate to junk status on Tuesday, citing the Canadian office landlord’s high debt levels, as well as weakening occupancy rates that will weigh on its ability to meet its obligations.

The bond grader cut the company’s senior unsecured rating to Ba1, the highest junk rating, from Baa3, the lowest investment-grade level. The outlook remains negative.

Allied Properties is a real estate investment trust that specializes in turning old downtown industrial and warehouse space into offices for industries including technology. The company marked down the value of its properties by nearly C$500 million in the last quarter of 2023 as remote work and high interest rates weighed on commercial property.

“Although the REIT’s properties have largely outperformed the broader markets over last few years, the difficult leasing environment has weakened its portfolio occupancy and reduced rent growth,” Moody’s senior credit officer Ranjini Venkatesan wrote in the Tuesday statement.
Megabus Owner Coach USA Files Bankruptcy, Looks to Sell Assets


Steven Church
Tue, Jun 11, 2024

(Bloomberg) -- Bus company Coach USA, owner of the Megabus brand, filed for bankruptcy, saying it was unable to recover from a decline in ridership brought on by the

The company owes creditors between $100 and $500 million, according to its Chapter 11 petition filed Tuesday in Wilmington, Delaware. Chapter 11 of the US Bankruptcy Code is designed to allow companies to keep operating while they shed debt and reorganize.

Coach USA said in a statement that the filing is intended to facilitate the sale of certain bus lines to an affiliate of Renco Group, as well as its Megabus intellectual property and retail operations. Avalon Transportation has also agreed to buy some Coach assets, the company said.

Both buyers have agreed to act as initial bidders at a court-supervised auction, the company said. The auction process and the initial bids must first be approved by the judge overseeing the bankruptcy.

To help pay for the restructuring case and to keep operating during bankruptcy, the company has arranged to borrow as much as $20 million.

For more on the world of distressed debt, subscribe to The Brink

Coach offers bus services in 27 locations in the US and Canada and carries more than 38 million passengers every year, according to its website. Its Megabus service has carried more than 50 million people through more than 280 cities since it was started in 2006.

The case is Coach USA, Inc. 24-11258, US Bankruptcy Court, District of Delaware (Wilmington).

Bloomberg Businessweek



Glencore to Back Indonesian Nickel Miner Before IPO


Eddie Spence and Fathiya Dahrul
Wed, Jun 12, 2024, 4:53 AM MDT2 min read

In This Article:
GLNCY-0.68%


(Bloomberg) -- Indonesian nickel miner PT Ceria Nugraha Indotama is set to get backing from Glencore Plc to build a battery metal plant ahead of an initial public offering planned for next year.

Glencore is in talks to take a 10% stake in the company through a pre-IPO fund-raise, and will assist in financing its high pressure acid leach plant, Ceria Nugraha Chief Executive Officer Derian Sakmiwata said in an interview on Wednesday. The world’s biggest commodities trader will also take a direct stake in the plant and sign an offtake agreement to buy electric vehicle battery ingredients from the Indonesian firm, he said.

“We want to reach the global market,” Sakmiwata said on the sidelines of the Shanghai Metals Market conference in Jakarta. “Glencore is our bridge,” he said, adding that 20% of the company is being offered as part of the pre-IPO fund-raise.

Glencore declined to comment.

The global miner and trader, headquartered in Switzerland, is stepping up its participation in the Indonesian nickel industry, which accounts for about half of world production. It’s also among companies eyeing a stake in miner PT Trimegah Bangun Persada, better known as Harita Nickel.

A ban on the export of raw ore in 2020 stimulated a massive wave of Chinese investment in nickel smelting in Indonesia that caused production to surge and benchmark prices to crash. Unusually, no Chinese firm has an equity stake in Ceria’s projects, although China ENFI Engineering Corp. has been contracted to build them.

It’s something the Indonesian firm — which owns the country’s fifth-largest nickel mine — wants to maintain for now so that its product will be eligible for subsidies linked to the US’s Inflation Reduction Act. While the exact rules around joint ventures remain unclear, it’s possible they could be excluded if too high a percentage is owned by a Chinese entity.

“We are not ruling out the Chinese, but we want our product to be acceptable in global markets,” Sakmiwata said.

Ceria Nugraha’s first smelter is due to be completed this year, and it’s planning $8 billion of investment in a series of processing plants that will produce nickel and cobalt chemicals used for EV batteries. Part of that will be funded by listing the company’s shares in an IPO next year.

Macquarie Group Ltd., BNP Paribas SA, and Mandiri Sekuritas have been appointed as advisers for the listing, Sakmiwata said. Before the IPO, the company will raise funds through private sales, including from Glencore, he said.

UK

Raspberry Pi Hands London a Starry Share Market Debut at Last



\


British PC Maker Raspberry Pi Soars in London Trading Debut

Swetha Gopinath
Tue, Jun 11, 2024

(Bloomberg) -- London’s lament over a shrinking equity market has been drowned out — for the moment at least — by the stellar trading debut of personal computer maker Raspberry Pi.

Shares in the British creator of low-cost computers popular among hobbyists and educators soared by as much as 43% Tuesday after a £166 million ($211 million) initial public offering. It’s on track to be the strongest first-day performance in about three years for a company raising at least $100 million in a London listing, according to data compiled by Bloomberg.

The pleasing start for Cambridge, England-based Raspberry Pi brings relief to a market struggling to stop local firms from chasing richer valuations abroad. Activists and foreign suitors alike are trying to lure companies stateside, citing deeper markets in New York, where investors have an established and strong appetite for tech names.

In a painful snub for London, home-grown Arm Holdings Plc, whose chips are used in Raspberry Pi’s products, opted to go public in the US last year. Arm’s investment division took up shares in the listing of Raspberry Pi, founded about 16 years ago.

Investors, meanwhile, are entitled to be wary of new UK listings. CAB Payments Holdings Plc, the last meaningful debut in London has tumbled 62% since its IPO last June.

Some are hopeful that today’s positive performance is early evidence of a turnaround.

“It shows the UK is open for business to technology flotations and that investors are hungry for companies of any size if they tick the right boxes,” Dan Coatsworth, investment analyst at AJ Bell, said in emailed comments. “There is a widely held view that tech companies only float in the US where they can potentially get a higher valuation. Raspberry Pi is proof that the UK can still compete against the likes of the Nasdaq and attract home-grown champions.”

Any news on the London listings front is attracting out-sized attention from banks and the UK government alike, after the City’s share of the broader European IPO market plunged to the lowest level in decades.

Walgreens Boots Alliance Inc. has shelved plans for a potential first-time share sale of its British drugstore chain Boots, dashing hopes for a blockbuster London listing, Bloomberg News reported last week.

More optimistically, online fashion retailer Shein is planning a mega London listing with an estimated valuation of £50 billion, which would be big enough to soothe worries over the UK IPO market for a while.

Most Read from Bloomberg Businessweek


British PC Maker Raspberry Pi Soars in London Trading Debut

Henry Ren
Tue, Jun 11, 2024

(Bloomberg) -- British personal computer maker Raspberry Pi shares jumped on its first day as a public company, offering a boost to London’s struggling market for new stock listings.

Shares of the Cambridge-based company closed Tuesday’s session at 385 pence each, a 38% surge from its initial public offering price of 280 pence. The stock gained as much as 43% during intraday trading from the pricing of its £166 million ($211 million) IPO.

The brisk first-day performance offers a glimmer of hope for the London market, which has struggled in recent years to attract technology companies to list. Raspberry Pi is the first tech firm that raised $100 million or more in London since video-game maker Devolver Digital Inc. went public in 2021, according to data compiled by Bloomberg.

The Raspberry Pi IPO provided “a much needed quality injection into the UK capital markets, and hopefully this proves to be a catalyst for future listings of innovative British businesses domestically,” said Adam Montanaro, a fund manager at Montanaro Asset Management who bought into the offering.

The company, which makes low-cost computers popular among hobbyists and educators, had a market capitalization of about £542 million. Its IPO was oversubscribed by multiple times and the pricing came at the top end of a marketed range, suggesting strong demand for its shares.

The new listing is the biggest in London since cross-border payments firm Cab Payments Holdings Plc floated in July 2023. The city has fallen behind in this year’s IPO revival, with the UK exchange accounting for about 2% of about $13 billion raised in IPOs in Europe this year.

The London Stock Exchange was dealt a blow last year when British chip designer Arm Holdings Plc decided to sell shares in New York. It’s also losing tech listings at a faster pace, with cybersecurity firm Darktrace Plc agreeing to be sold to private equity firm Thoma Bravo.

Among the technology-focused companies that went public in London since 2021, few have seen positive returns. Shares of video-game company TinyBuild Inc. slumped by 97% since its 2021 IPO, while semiconductor specialist Alphawave IP Group Plc fell by almost two thirds.

Raspberry Pi could offer a boost to sentiment toward the UK tech scene, but given the small IPO size and limited free float, “it unfortunately does not leave too much room for excitement,” said Ben Barringer, an analyst at Quilter Cheviot.

“There is a long way to go before the UK can be seen to be recovering, but hopefully this IPO helps to encourage other tech founders to consider this route to market,” he said in an email.

Raspberry Pi was previously reported to be considering a listing in early 2022. Since then, it raised money from British chipmaker Arm and Sony Group Corp.’s semiconductor division.

Arm was committed to buying $35 million worth of shares in the IPO, while UK asset manager Lansdowne Partners agreed to purchase as much as $20 million, according to the prospectus.

Raspberry Pi is known for its cheap single-board computers that can be programmed to run different tasks. It sold 7.4 million devices last year and is expecting to sell 8.4 million this year.

Jefferies Financial Group Inc. and Peel Hunt LLP led the offering, according to a statement. The company trades under the symbol RPI.

--With assistance from Thyagu Adinarayan.

Bloomberg Businessweek
GM cuts EV production forecast, approves $6 billion share buyback


Updated Tue, Jun 11, 2024
By Ananta Agarwal, Nathan Gomes and Nora Eckert

(Reuters) - General Motors cut its annual EV production forecast and announced a new $6 billion share buyback plan on Tuesday, as the automaker banks on demand from its gasoline-powered models.

GM now projects the higher end of its 2024 EV production to be 250,000 units, down from a prior forecast of 300,000 units, the automaker's CFO Paul Jacobson said while speaking at the Deutsche Bank Global Auto Industry Conference.

Last year, GM outlined a $10 billion stock buyback close on the heels of reaching a costly new labor agreement with the United Auto Workers (UAW).

"We are very focused on the profitability of our [gas-powered vehicles] business, we're growing and improving the profitability of our EV business," CFO Paul Jacobson said, adding that the company will continue to return capital to shareholders.

Ford Motor CFO John Lawler said at the same conference that the automaker is on track to deliver its $2 billion cost reduction plan and added that it would achieve this through material and design changes.

GM did not give a time frame for the latest buyback but said the move will allow it to "opportunistically repurchase shares" after the completion of the existing plan.

GM shares were under pressure for most of 2023 as it dealt with the UAW strike and troubles at its Cruise self-driving vehicle unit.

CEO Mary Barra has acknowledged in prior earnings calls that the company's shares, which closed at $47.57 on Monday, have been a disappointment since their IPO in 2010.

Shares of the company, which has a market capitalization of nearly $54 billion, were up about 1% in afternoon trading. They have risen about 50% since GM announced the $10 billion stock buyback in late November.

It had raised its dividend by 33% to 12 cents per share in January. Ford Motor has also committed to return 40% to 50% of its free cash flow to investors and had in February announced an extra 18 cents-per-share dividend.

(Reporting by Ananta Agarwal, Nathan Gomes in Bengaluru; Nora Eckert in Detroit; Editing by Arun Koyyur and Josie Kao)


Marjorie Taylor Greene compares Trump to Jesus at Las Vegas rally

Robert Tait
Mon, June 10, 2024 


Donald Trump has been compared to Jesus Christ by the far-right Georgia congresswoman Marjorie Taylor Greene at a campaign rally for the former president in Las Vegas, a city more renowned for evoking images of gambling than biblical scenes.

Greene, who makes frequent references to her Christian faith, cited Trump’s supposed Christ-like qualities to challenge the Democrats’ efforts to capitalise on the presumptive Republican presidential nominee’s status as a convicted felon following his recent conviction in a case involving hush money paid to an adult film actor and falsified business records in a New York court.

“The Democrats and the fake news media want to constantly talk about ‘President Trump is a convicted felon’,” she told a crowd that waited in soaring early-summer temperatures. “Well, you want to know something? The man that I worship is also a convicted felon. And he was murdered on a Roman cross.”

In some parts of the political ecosphere, Greene’s comparison did not go over well.

“Did Jesus pay off a pornstar and cover it up,” read one comment on X left below a clip of Greene’s remarks on Sunday.

California’s Democratic congressman Adam Schiff sarcastically added: “Definitely not a cult.”

It is not the first time Greene has drawn parallels between Trump and Christ – whom Christians consider to be the messiah and son of God – as well as other historical martyr figures.

When he was arrested in New York on corruption charges in April last year, she likened Trump to Jesus and Nelson Mandela, who became South Africa’s first post-apartheid president after being jailed for 27 years by the racist regime.

“Trump is joining some of the most incredible people in history being arrested today. Nelson Mandela was arrested, served time in prison. Jesus was arrested and murdered by the Roman government,” she told the Right Side Broadcast Network.

“There have been many people throughout history that have been arrested and persecuted by radical, corrupt governments … I just can’t believe it’s happening, but I’ll always support him. He’s done nothing wrong.”

Comparisons with Christ have also been pushed by Trump himself as he has sought to exploit his popularity among white evangelical Christians – and despite apparently struggling to identify his favourite passage from the Bible.

When he went on trial in a civil case over business fraud last year, supporters circulated an image depicting him sitting in the courtroom alongside a Christ-like figure.

Trump, in turn, disseminated the faux sketch on his Truth Social site, writing: “This is the most accurate court sketch of all time. Because no one could have made it this far alone.”

He has pressed matters further in his fundraising appeals, invoking a metaphor of himself as a saviour in a headline on his campaign website reading: “They’re not after me. They’re after you. I’m just standing in the way.”

One of Trump’s celebrity supporters, the Oscar-winning actor Jon Voight, has also stressed the messianic theme, citing the Book of Joshua and the New Testament to assert that the ex-president “has been targeted for his information that can knock down the corrupt swamp”.

Voight added: “The one man that was ridiculed, destroyed as Jesus, Trump, can come back and save the American dream for all.”

Trump’s personal allusions to Christ are a marked contrast to the messaging of Joe Biden, who has frequently told voters to refrain from comparing Biden with the Almighty, but rather to compare him with the alternative in Trum