It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Saturday, January 18, 2020
Delta and its pilots ask mediator for help in contract talks
ATLANTA — Delta Air Lines and its pilots want a federal mediator to step in after eight months of negotiations have failed to produce a contract agreement between the airline and the pilots’ union.
In a statement Friday, Delta said filing for federal mediation “allows both sides to have more productive conversations” to reach an agreement more quickly.
The chairman of the Air Line Pilots Association’s Delta group, Ryan Schnitzler, said in a message to his members that mediation might “motivate management to meaningfully engage at the table.”
Negotiations began in April. Federal law makes it difficult for airlines and unions to conduct lock-outs or strikes.
The union is seeking higher pay, better benefits and more hiring. Atlanta-based Delta relied on overtime to operate during the busy summer travel season last year.
The negotiations are being watched at other airlines and by Wall Street, which is looking for an indication of how much a new contract will increase Delta’s expenses. Delta reported Tuesday that it earned $4.8 billion last year, bringing its profit since the start of 2010 to about $34 billion.
The Associated Press
Alberta court approves Encana reorganization, that will see it move its headquarters to Denver from Calgary and change its name to Ovintiv Inc.
NATIONALIZE CANADA'S OIL INDUSTRY UNDER PUBLIC OWNERSHIP, WORKER AND CITIZEN CONTROL
CALGARY — Encana Corp. says an Alberta court has approved the oil and gas company's reorganization that will see it move its headquarters to Denver from Calgary and change its name to Ovintiv Inc.
The decision by the Court of Queen's Bench of Alberta follows Tuesday's vote that saw 90 per cent of shareholders approve the change, despite public criticism from Encana founder Gwyn Morgan and shareholder Letko, Brosseau & Associates Inc.
Encana announced the changes in October as part of a reorganization that includes a one-for-five share consolidation, also approved by shareholders.
The reorganization is expected to close around Jan. 24.
The Calgary-based company says a corporate domicile in the United States will expose it to increasingly larger pools of investment in U.S. index funds and passively managed accounts, as well as better align it with its U.S. peers.
Encana has said the changes will not affect how it runs its day-to-day activities in Canada.
This report by The Canadian Press was first published Jan. 17, 2020.
Companies in this story: (TSX:ECA)
The Canadian Press
Coffee’s Meteoric Rise Collapses Along With Brazil Shortage Fear
Fabiana Batista
Coffee’s Meteoric Rise Collapses Along With Brazil Shortage Fear
(Bloomberg) -- In just a few short weeks, coffee has gone from star performer to teetering on the edge of bear-market territory amid shifting perceptions on supplies in Brazil, the world’s top producer and exporter.
On Friday, arabica beans for March delivery capped a third straight weekly decline to settle at $1.1215 a pound on ICE Futures U.S. in New York. The price has dropped 19% from a December peak, just shy of the 20% threshold that defines a bear market.
In the first half of December, a bullish stampede prevailed with futures surging 50% in the prior two months. Brazilian cooperative Cooxupe, the top arabica shipper, said in mid-October that it was running out of beans for new orders, countering forecasts of ample supply that drove prices to 13-year lows. At the time, inventories at warehouses monitored by ICE tumbled to an 18-month low.
On Friday, ICE stockpiles capped their first back-to-back weekly gain since mid-August. Brazilian currency weakness this month boosted the appeal of exports priced in the greenback. Also this week, Brazil’s crop agency Conab reiterated that growers will collect another bumper harvest in 2020, albeit probably less than 2018’s record levels. Exports of green beans rose 15% to an all-time high in 2019, industry group CeCafe said.
“As the crop was smaller last year, the big export volume implies Brazil probably had ample inventories,” Nelson Carvalhaes, CeCafe president, said this week at a press briefing.
The Bezos, Musk and Branson billionaire space race is happening right now
Virgin Galactic Founder Sir Richard Branson demonstrates a spacewear system, designed for Virgin Galactic astronauts, at an event October 16, 2019 in Yonkers, New York. - At the event Virgin Galactic and Under Armour unveiled the worlds first exclusive spacewear system for private astronauts. (Photo by Don Emmert / AFP) (Photo by DON EMMERT/AFP via Getty Images)
With a presidential election, the Summer Olympic Games in Tokyo and yes, Ludwig van Beethoven’s 250th birthday celebration, 2020 promises to be a humdinger of a year.
But also happening in 2020—if all systems are go—will be the beginning of regular U.S. space tourism flights, either by Richard Branson’s Virgin Galactic (ticker: SPCE) or Jeff Bezos’ Blue Origin or both. Also possibly coming this year are tourist trips to the International Space Station (ISS) on a craft built by Elon Musk’s SpaceX. (Boeing has a spaceship too, but that company might be otherwise occupied.)
So apologies to Donald, the International Olympic Committee (IOC) and Ludwig van, but commercial space travel could end up being the biggest damn thing to happen this year. In fact, I think it’s the beginning of a real game-changer for humanity.
If you’ve been following the space biz, you know that the ‘go year’ has been pushed back a number of times, but Ann Kim, aerospace banker and managing director of Silicon Valley Bank, is feeling it. “These companies are close. They wanted to get humans into space in 2019, but were not as successful in delivering promises as originally thought. 2020 is a good year to see that inflection point.”
It has been a long time coming. In fact these three companies are more or less of the same vintage. Bezos founded Blue Origin (named after Earth, the blue planet, as the place of origin), in 2000. SpaceX, which has colonizing Mars as its ultimate mission, was founded in 2002. And Branson started Virgin Galactic two years after that.
While you may snort at all this silly space stuff, it’s worth noting that three of the most successful entrepreneurs of our lifetimes have been working on space travel for a collective 54 years now. Remember, once upon a time folks laughed at online bookstores, electric cars and branded air travel too.
Yes, there is a bit of a space race going on, although this time it’s not Russia v. the U.S., it’s Branson v. Bezos, who are battling in the suborbital space (pun intended), with Musk as a competitor longer term on more ambitious projects.
Some play down the competitive aspects of the business though. “It’s not a race at all,” future Virgin Galactic passenger Namira Salim told Yahoo Finance’s The Final Round, “we all say that in the industry.” I think it’s safe to say there is room for all three. (Space is a big place, right?)
It’s important to remember that intermittent space tourism has been around for a while. Between 2001 and 2009, seven space tourists traveled to the International Space Station on a Russian Soyuz spacecraft. Dennis Tito was the first, remember him? Also top Microsoft exec Charles Simonyi made the trip. And British singer Sarah Brightman signed up but later canceled. The trips were arranged by a U.S. company, Space Adventures, and cost, gulp, $20 million a pop. But the Russians terminated the program and despite talk of restarting it, haven’t. In any event the Soyuz trips were always one-offs, where Virgin Galactic and Blue Origin aim to be scheduled operations and the first steps to more extensive programs.
American multimillionaire Dennis Tito, 60, gestures shortly after his landing on the steppes, 80 kilometers (50 miles) northeast of Arkalyk, Kazakstan, Sunday, May 6, 2001. Others are unidentified. The Russian Soyuz capsule carrying the world's first paying space tourist landed successfully on Sunday, ending Tito's multimillion dollar cosmos adventure. (AP Photo/Mikhail Metzel)
Virgin Galactic has been a moonshot of a stock over the past month, up over 60%. Some of that might have to do with CEO George Whitesides telling CNBC recently that demand for tickets “keeps ticking up by a good chunk every month.” The company says it has sold tickets to more than 600 customers at around $250,000 per person. It froze ticket sales after a crash in 2014 killed one of its pilots. Virgin Galactic now says it may reopen sales later this year—and raise prices.
Yes, there is risk. “This is not as safe as airline travel,” says Jonathan McDowell, an astronomer and rocket expert at the Harvard-Smithsonian Center for Astrophysic. “Suborbital flight, [what Virgin Galactic and Blue Origin are doing now] can be made very safe. It will just take a lot more flights and experience to make it so. Whether orbital flight will ever be that safe is more of an open question.” Sir Richard says not to worry. He’ll be going up as Virgin Galactic’s first test-space-tourist astronaut.
‘They will make billions if not trillions in space’
Branson took his company public by merging with Social Capital Hedosophia Holdings Corp, a special purpose acquisition company (SPAC), or blank-check company, founded by Chamath Palihapitiya, a former Facebook executive (who has since somewhat famously soured on his former employer.) Palihapitiya still owns 49% of Virgin Galactic.
Blue Origin—its motto is, Gradatim Ferociter, Latin for "Step by Step, Ferociously.”—hasn’t pre-sold any tickets, but it too has indicated that the time is near to send passengers into space. The company just moved into a swank new 232,000-square-foot headquarters in Kent, Washington—near the Sea-Tac Airport—to house many of its 2,500 employees. Geek Wire reports, “Hundreds more are based elsewhere in the Kent area, south of Seattle, as well as at Blue Origin’s suborbital launch site in West Texas, the Florida rocket factory where Blue Origin’s New Glenn orbital-class rocket will be assembled, and at the site of its future BE-4 rocket engine factory in Alabama.”
Bezos, who loved space as a child, is incredibly passionate about space and Blue Origin, so much so that I pulled these two quotes from this 2018 interview to give you an idea. (The whole piece makes for good reading, btw.)
“I get increasing conviction with every passing year, that Blue Origin, the space company, is the most important work that I’m doing. And so there is a whole plan for Blue Origin.”
And:
“The only way that I can see to deploy this much financial resource is by converting my Amazon winnings into space travel. That is basically it. Blue Origin is expensive enough to be able to use that fortune. I am liquidating about $1 billion a year of Amazon stock to fund Blue Origin. And I plan to continue to do that for a long time.”
Serious!
Imagine if Blue Origin ends up being a bigger deal than Amazon? Could be.
Jeff Bezos speaks in front of a model of Blue Origin's Blue Moon lunar lander, Thursday, May 9, 2019, in Washington. (AP Photo/Patrick Semansky)
SpaceX is a different beast, not surprisingly playing at an Elon Musk, super-ambitious, Tesla-like level. With its Falcon rockets and Dragon spacecraft, SpaceX was the first private company to go into orbit. Dragon has gone to the ISS 18 times. A Falcon has orbited around the sun. And working with NASA, SpaceX is reportedly set to launch its first crewed Crew Dragon next month. Tourism to the ISS is on the agenda.
Who will launch the first U.S. space flight for tourists?
“I think that Virgin Galactic is the closest,” says Kim. “A lot of people are putting in their deposits. It seems to be the leader of the pack. Blue Origin is close behind. SpaceX has more longer term potential. I think all three can be very successful.”
Where is this all going? “Space tourism needs to be more than billionaires taking selfies in space,” says Tess Hatch, who once worked at SpaceX and is now a vice president at Bessemer Venture Partners, which has invested in the space business. “There needs to be business reasons to be in space.” Hatch says space tourism and the space economy need to catalyze business models, and cites business opportunities such as zero gravity research and pharmaceutical testing.
As for Bezos, Branson and Musk, Hatch says, “...these people made their billions in totally different industries and are now turning to space. They will make billions if not trillions in space.”
I must admit, I have mixed feelings about space being dominated by the likes of Bezos, Branson and Musk. On the one hand I can’t help but admire what they’ve done as entrepreneurs. I don’t think they’re ‘evil.’ And they are filling a breach voided by government’s abdication of having a consistent, strategic space program. So sure, go for it guys!
On the other hand, I worry about the inevitable lack of consensus that accompanies each of these three efforts. How much thinking about pure science, medicine or even art will be brought to bear in space endeavors controlled by billionaires. I guess I don’t blame them or fault them, none of that thinking is necessarily their purview or responsibility.
In a way it’s just another example of our economy and society being co-opted by the technocrat class. Amazon, Microsoft, Facebook, Tesla—those companies are all name-checked in this article. Fifty years ago, yes there were private defense contractors involved in the process, but NASA and DOD were the drivers. The amount of technological innovation and products that came from NASA is stunning and too long to list here. Now the script has been flipped. Will these tech moguls be so free with their IP? Who knows. Maybe they will be even more collaborative about fostering and sharing research and scientific breakthroughs.
One thing’s for sure, it looks like we are going to find out. Maybe starting this year. (Roll over Beethoven.)
This article was featured in a Saturday edition of the Morning Brief on December 14, 2019.
Commentary by Andy Serwer is editor-in-chief of Yahoo Finance. Follow him on Twitter: @serwer.
Chevron Gets Another Reprieve to Continue Working in Venezuela
Chevron Gets Another Reprieve to Continue Working in Venezuela
(Bloomberg) -- Chevron Corp. and four oilfield service providers won U.S. government approval to continue working in Venezuela for 90 days, allowing the companies’ access to the world’s largest reserves of crude despite sanctions on the crisis-stricken country.
The U.S. Treasury Department decision is the fourth waiver granted since sanctions were announced in November 2018 in what is becoming a fraught quarterly ritual for the companies. Along with Chevron, the waiver also exempts Baker Hughes Co., Halliburton Co., Schlumberger Ltd. and Weatherford International Ltd. from sanctions.
The waiver was extended through 12:01 a.m. Eastern time on April 22. The previous waiver was due to expire on Jan. 22.
Venezuela’s daily oil production slumped to a 75-year low of 792,000 barrels last year as sanctions crippled the economy and cut off access to U.S. refiners. As a result, the nation’s crude exports that bankroll the regime tumbled to the lowest since 1985.
While Venezuela accounts for only about 1% of Chevron’s global crude production, it remains strategically important given the nation’s vast untapped reserves. Proponents of Chevron’s position argued that withdrawing would cede market share and influence to Russian and Chinese companies.
Chevron is the last remaining major U.S. explorer in the country. Rivals Exxon Mobil Corp. and ConocoPhillips exited a decade ago after then-President Hugo Chavez seized control of their assets.
WASHINGTON — The Trump administration has granted Chevron a special license to keep drilling oil in Venezuela despite a ban on American companies doing business with President Nicolás Maduro's socialist government.
The Treasury Department late Friday renewed until April 22 the license for Chevron and four other U.S. service suppliers that are among the last American companies operating in the oil-rich South American nation. It's the fourth time the U.S. has exempted the companies from the Venezuela ban.
Chevron, a San Ramon, California-based company, has operated in Venezuela for almost a century. Its four joint ventures with Venezuela's state-run oil monopoly PDVSA produce about 200,000 barrels a day. That’s about a quarter of Venezuela’s total production, according to the Organization of the Petroleum Exporting Countries.
Critics among Venezuela's opposition insist that Chevron's continued presence in the country undercuts the Trump administration's goal of ousting Maduro by providing him a valuable lifeline of badly-needed export dollars.
The Associated Press
Splits in France's strike movement trigger fears of violence
Splits in France's strike movement trigger fears of violence
PARIS — A French government minister warned that seditious groups bent on violence were hijacking the protest movement against pension reform that has gripped the country, after a fire Saturday damaged a renowned Paris restaurant patronized by President Emmanuel Macron.
The Paris fire service said the pre-dawn blaze that singed a corner of the La Rotonde eatery was quickly extinguished. The Paris prosecutor's office launched an investigation to determine the cause of the fire.
But Marlene Schiappa, the government's secretary of state for equality, said the blaze “probably” resulted from a criminal act. She described a climate in France “of hate and of violence that is quite incredible,” citing the restaurant fire among a list of examples.
“Seditious groups want the law of ‘might is right’ to reign, to impose violence on all people who think differently from them," Schiappa said on French news channel BFM-TV. “It is very alarming and unworthy of a democracy like France.”
After six weeks of labour strikes and nationwide protests against government plans to overhaul France's pension system, there are mounting signs of splits within the movement. As some strikers return to work and train services that have been severely disrupted by walkouts see notable improvements, more radical protesters are trying to keep the movement going.
The fire at La Rotonde came just days after demonstrators shouting “Death to Macron, death to La Rotonde” marched past the eatery, restaurant manager Gerard Tafanel said.
He said marchers wore the bright jackets of the ‘yellow vest' protest movement that has demonstrated against the policies of Macron's government for more than a year. Tafanel said a yellow vest also was found by police officers investigating Saturday's fire.
Macron's name has been associated with the restaurant since he celebrated there during the 2017 presidential election, after qualifying for the second-round runoff that he later won.
Macron was a target of protesters himself on Friday night, too.
Seemingly tipped off to his presence by people inside, several dozen protesters converged on a Paris theatre where Macron was watching an evening performance with his wife. Video showed protesters chanting “Macron resign” and some entering a door as surprised police tried to hold them back. A black car reported to be carrying Macron then sped away under a hail of boos.
Earlier Friday, dozens of protesters also blocked the entrance to the Louvre museum and forced the famous Paris landmark to close.
Transportation strikes against the pension overhaul began on Dec. 5. Saturday marked their 45th consecutive day, although the job actions are no longer as disruptive as they were earlier.
Workers in other sectors of the economy have held strikes, too, including at ports and oil refineries.
On Saturday, musicians, singers and other members of the striking Paris Opera drew a crowd with a free concert in front of the Palais Garnier opera house.
____
Videojournalist Chris den Hond contributed.
John Leicester, The Associated Press
Alaska agency to hold public hearing on oil assets sale
ANCHORAGE, Alaska — A public hearing on a sale between two oil giants was scheduled despite a request by the companies to approve the transaction without one, oversight committee members said.
The eight-member Regulatory Commission of Alaska was established by Republican Gov. Mike Dunleavy to monitor the $5.6 billion sale of BP Plc assets in Alaska to Hilcorp Energy Co.
The committee announced Friday that the hearing will be held on Feb. 4 from 3-9 p.m. at the agency's offices in downtown Anchorage.
The committee already received about 200 written comments during a comment period that ended in December, but this hearing would “allow additional comment on the applications,” committee members said in a statement signed by Chairman Robert Pickett.
“The comments both supported the transfer of (BP pipeline assets to Hilcorp) and expressed concerns with the transfer,” committee members said.
The hearing will allow the public to comment on the companies' request to transfer a portion of the 800-mile (1, 287-kilometre ) trans-Alaska pipeline and other pipeline assets to Hilcorp, officials said.
Texas-based Hilcorp announced plans to buy BP's Alaska assets in August and expect to finalize the deal next year, committee officials said.
“The (hearing) is totally appropriate and commensurate with the public interest,” policy analyst Phil Wight told Anchorage Daily News. “This is a great chance for the public to have their voice heard.”
BP spokeswoman Meg Baldino declined to comment. Hilcorp officials didn’t immediately respond to a request for comment.
The Associated Press
NUMINANISTICS
Rare coin of Britain's King Edward VIII fetches record $1.3M
Rare coin of Britain's King Edward VIII fetches record $1.3M
LONDON — One of the world's rarest coins, a gold piece bearing the image of Britain's King Edward VIII before his abdication, has sold for 1 million pounds ($1.3 million), setting a new record for a British coin.
The historical oddity shows Edward, the uncle of Queen Elizabeth II, before he relinquished the throne in 1936 to marry American divorcee Wallis Simpson.
The buyer was a private collector who wanted his identity kept secret. He told the BBC it was a “once-in-a-lifetime” opportunity.
Rebecca Morgan, head of collector services at the Royal Mint, said the record price was not surprising.
“The Edward VIII sovereign is one of the rarest and most collectible coins in the world,” Morgan said Friday.
The 22-carat gold coins were never released to the public. The Royal Mint says only a handful are known to exist.
