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Airbnb reports higher revenue for the quarter on World Cup and global travel demand
Airbnb, a vacation rental company, posted an increase in revenue for the second quarter 'on Thursday. This was due to a strong global travel demand and the influx of first-time users during the FIFA World Cup 'hosted by the U.S.A., Canada, and Mexico. The FIFA World Cup, which just ended, has been a boon to travel companies. Airbnb reported that North American bookings for the second quarter saw the largest growth in nearly three years. The shares of the San Francisco-based firm rose by 11.58% during extended trading. Globally, the number of nights and seats booked - a metric which includes both service bookings and room reservations - rose by 10% in the last quarter to $148.3million. Bookings in North America, where over 40% of revenue is expected to come from by 2025, rose "high single digits"?percentage. The industry has been able to offset some of the pressure caused by the 'Iran War,' which has hurt long-haul travel due to flight rerouting and increased jet fuel prices. Airbnb has noted a steady improvement in demand trends for its services throughout the Middle East. Since May last year, the company's platform has expanded to include private chefs, car rentals and thousands of boutique hotels, indicating a continued expansion beyond its initial rental focus. Analysts and investors have been closely watching its expansion efforts as it moves towards a more traditional online travel agency. This could potentially put it in competition with industry heavyweights such as Booking, Expedia, and TripAdvisor. Airbnb's hotel bookings grew three times faster than home bookings, but they still represent a one-tenth of the total nights booked. The company anticipates that revenue will increase "at least by mid teens" in 2026, compared to the range of "low-to-mid teens". It reported earnings per share of $1.37, compared to $1.03 for the quarter ended June 30. Revenues for the quarter were $3.61 billion. This is up from $3.1billion a year ago. Reporting by Aishwarya Jain from Bengaluru, and Doyinsola Oladipo from New York. Editing by Shilpa Majumdar.
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Airbnb reports higher revenue for the quarter on World Cup and global travel demand
Airbnb, a vacation rental company, posted an increase in revenue for the second quarter on Thursday. This was largely due to a strong global travel demand and the first-time use of the service during the FIFA World Cup, which took place mainly in the United States, Canada, and Mexico. The FIFA World Cup, which just ended, has been a boon to travel companies. Airbnb reported that North American bookings for the second quarter saw the largest growth in nearly three years. The number of nights and seats booked globally, which includes both service and room bookings, increased by 10% to $148.3 millions in the third quarter. Bookings in North America, where over 40% of its revenue will come from by 2025, rose "high single digits" per cent. The industry has been able to offset some of the pressure caused by the 'Iran war', which has affected long-haul travel due to flight re-routing and increased jet fuel costs. Airbnb has noted a steady improvement in demand trends for its services throughout the Middle East. Since May last year, the company's platform has expanded to include private chefs, car rentals and thousands of boutique hotel, indicating a continued shift beyond its original "rental" focus. Analysts and investors have been closely watching its expansion efforts as it moves towards a more traditional online travel agency, potentially putting them in competition with giants like Booking, 'Expedia, and 'TripAdvisor. Airbnb said that the number of hotel nights it booked increased nearly three times as fast as home nights, but they still only represent a single-digit percentage. The San Francisco-based company expects revenue in 2026 to increase "at least by mid teens", as opposed to a range between "low to middle teens" that was forecast earlier. It reported earnings per share of $1.37, compared to $1.03 for the same quarter last year. Revenues for the quarter were $3.61 billion. This is up from $3.1billion a year ago. Reporting by Aishwarya Jain from Bengaluru, and Doyinsola Oladipo from New York. Editing by Shilpa Majumdar.
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Virginia Governor says she will intervene in Dominion NextEra merger
Virginia Governor Abigail "Spanberger" said Thursday that she will intervene in the regulatory review of NextEra Energy’s proposed $66.8 billion merger with Dominion Energy to press for "commitments" on electric bill affordability, jobs protection and clean energy investments. The Governor said that she would become a formal party in the case before Virginia State Corporation Commission. This would give her access to all filings, and allow her to ask questions and voice concerns about the transaction. They're not enough?yet. That's one of the main reasons I chose to intervene in the case. "I need more information." In May, the companies announced their plan to merge in order to create one of the largest electric utilities in the world. This was done during the expansion of data centers that consume a lot energy. "The act of formally intervening is unprecedented." Spanberger acknowledged that as a governor. He added that the size and scope of the merger application is also unprecedented. The deal is still pending approval and will create the third largest U.S. Energy Company, behind Exxon and Chevron. Its enterprise value will be higher than that of the next two biggest U.S. Power companies combined. Spanberger stated that she did not want to?take away the decision from regulators, noting 'that the decision to approve or...deny... that authority still rests with the SCC. The governor?also?said she has the "ability to pursue legal action" once a decision is made. (Reporting and editing by Maju Samuel, Shreya Biwas and Katha Kalia in Bengaluru)
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Puerto Rico will begin water rationing in response to the intense drought
Authorities said that Puerto Rico would begin a rotating program of water rationing on 'Friday, across the entire island, as a response to an intense 'drought. The plan will force tens and thousands of people to go without water for a period up to 48 hours. According to information posted on the Aqueduct and Sewer Authority's website, the rationing is expected to last until the end of August. At a late-night press conference on Wednesday, Puerto Rico Governor Jenniffer González said that she did not know the length of time rationing would be necessary. Gonzalez stated in a Wednesday morning press release that "this situation is beyond our control." It is the result of climate conditions we have been experiencing. According to the National Weather Service, San Juan in Puerto Rico, had its driest month on record. According to the U.S. Drought Monitor, nearly 68% of Puerto Rico is in drought conditions. There is little relief in sight. According to the National Oceanic and Atmospheric Administration, the chances of Puerto Rico experiencing below-normal rain and above-normal temperatures from August through October are greater than 70%. This is because a stronger El Nino pattern will suppress the tropical waves which bring late summer rains. According to the government, rationing will be implemented in seven?municipalities including San Juan during the current phase. All of these areas are?served? by the Carraizo Reservoir, which is reportedly at critical?levels. The affected areas have been divided into two zones, which will alternate between service and no service every 48 hours. As a precaution, the Puerto Rico 'Aqueduct and Sewer Authority' said that it would send water trucks to affected communities. Priority will be given to hospitals and care facilities. Residents are urged to boil their water for at least three full minutes once service is restored. The company also asked its customers to avoid unnecessary water use, such as washing their cars or watering their lawns. (Reporting and editing by Paul Simao in Colorado, Brad Brooks reported from Colorado)
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Wildfire prompts evacuation alert in metro Vancouver
As blazes continued to spread in Western Canada due to the dry and hot weather, a wildfire caused an evacuation warning on Wednesday. Anmore's acting mayor Doug Richardson told residents that he and his small team would do their best to keep them informed. Doug Richardson, acting mayor of Anmore, told residents that "we are a small team but will do our best to update our?residents". Metro Vancouver reported that the fire is nearly contained in the region of 'Belcarra Park,' located near Sugar Mountain Trail. It is estimated to be about 1.5 hectares. At this time, it is not anticipated that the fire will spread beyond the current containment line. Metro Vancouver stated that crews would remain on site throughout the day in order to "extinguish any hotspots" and secure the fire. The Canadian Interagency Forest Fire Centre (CIFFC), which coordinates wildland fire resources from around the world, reported that it has 40 New Zealanders and Australians and 100 Mexicans in BC. A spokesperson stated that around?200 Mexicans will be mobilized within the next few weeks in BC. The BC Wildfire Service said that hot and dry weather is expected to prevail in British Columbia. This will increase the risk of fires. The agency stated that these conditions, combined with light winds, could allow smoke to linger and become more visible in the southern part of the province. Over 4,500 fires have been started in Canada this summer, which is home to some of the densest forest on earth. The fires have burned 3.9 million acres. As of Wednesday, firefighters in BC, Ontario, and other provinces were battling 129 wildfires that had gotten out of control.
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Petrobras reduces refinery usage after months of exceeding capacity
Petrobras, the Brazilian state-run oil firm, has reduced its 'utilization rate' of its refineries to 98% in august after operating at or above their nominal capacity for two months. William Franca (director of Industrial Processes and Products at Petrobras) said that the utilization rate dropped from 101% to almost 100% in July before further reducing this month. "Though?that is still a high-level," he said. Petrobras had 'been running their refineries over capacity to curb the necessity for fuel imports during a period when international prices were high due to the oil-shock related to the U.S. and Israeli war against Iran. The company has been concerned about the price of diesel and liquefied gas. It has also sought to maximize its domestic fuel production. Despite a slight decrease in refinery usage, Petrobras achieved a record in diesel production for the month of July. According to Franca, the total diesel production reached 3.903 bln liters. This is a record, exceeding the previous record of 3.85 bln liters in May.
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Stocks fall ahead of US jobs data on Friday; oil prices rise after Iran news
The?major?stock indexes slid on Thursday, ahead of the Friday U.S. jobs data. Meanwhile,?oil prices rose on the back of recent?developments? in Iran. Iran's semiofficial Fars news agency reported, citing an Iranian lawmaker, that a parliamentary committee was reviewing a draft bill that would prohibit U.S. vessels, Israeli ships, and other "hostiles" from transiting Strait of Hormuz. The draft bill could impose fines up to 20 percent of the value of a ship’s cargo for violating proposed restrictions. U.S. crude climbed 3.39%, to $77.78 per barrel. Brent rose 4.12% to $82.72 per barrel. Oil prices rising are bad for the economy and consumers. "It is better to have the Strait open than not. Will Compernolle is a macro-strategist at FHN. He said that the more this back and forth continues, the greater the impact it will have on inflation expectations. The three major U.S. indexes fell, and a global index was also down. The Dow Jones Industrial Average fell by 374.38 points or 0.69% to 53,974.74. The S&P 500 dropped 15.36 points or 0.20% to 7,708.09, and the Nasdaq Composite lost 8.37 points or 0.03% to 26,355.07. MSCI's global stock index fell 4.46 points or 0.39% to 1,145.08. Media and telecoms stocks drove the pan-European STOXX 600 Index to a new record high of 0.16%. The United States data shows that unemployment claims increased last week while layoffs fell to a 2-year low, indicating a stable labour market. The data on claims has no impact on the Labor Department's July employment report, which is scheduled to be released this Friday. Many economists and traders still expect the U.S. Central Bank to increase interest rates next year unless inflation improves. The yield on the benchmark 10-year U.S. notes increased 5.06 basis points to 4.668% from 4.617% at late Wednesday. U.S. Dollar rose against the Japanese yen due to safe-haven positions. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, the euro and others)?rose by 0.31%, reaching 99.97. Meanwhile, the euro fell by 0.28%, at $1.1519. The dollar gained 0.44% against the yen to reach 158.43. The yen rose after U.S. & Japanese government intervened on the market Friday.
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US telecoms regulator chief: curbs on Chinese tech imported aim to boost production and counter security risks
Brendan Carr said that the U.S. Federal Communications Commission chair was aiming to boost U.S. manufacturing and address national security concerns by imposing restrictions on the import of Chinese robots. Since December, the FCC (which regulates U.S. telecoms) has prohibited new models of drones, robots, routers and power inverters from being imported. It granted waivers to non Chinese suppliers, while effectively shutting Chinese manufacturers out. Carr added, "We do not want to find ourselves in a position five years from now, where there are thousands, if not millions, of these devices that pose a threat to national security." Last month, the FCC?banned imports from China of new quadruped and humanoid robots as well as connected power inverters that allow renewable energy sources to be connected to grids and equipment for data centers. Chinese retaliation was launched earlier this week. The FCC is drafting a new ban on U.S. Imports of Chinese Data Center Components, also known as optical Transceivers. This is to protect the infrastructure that supports the AI boom. Carr deferred questions about the report to other agencies. The executive branch and national security agencies make the decision. They make the decision. Then we implement their?decision. He said:?I'd ask them to comment on any future plans they might have. Democratic FCC commissioner Anna Gomez welcomed Carr's actions aimed at national security, but criticised the process. She said that many American companies and leaders in the tech industry are concerned with the chaotic, haphazard manner, by which the FCC has implemented its "basically profound" changes to the FCC's technology policy. "If we want to avoid the appearance of favoring certain actors from others, we need transparency....Otherwise, this actually looks like is just industrial policy," she added. (Reporting and writing by David Shepardson, Alexandra Alper, and David Shepardson. Editing and proofreading by Mark Porter and Sanjeev miglani).
Oil prices rise as gold trades flat, despite Iran's proposal to ban 'hostile vessels' in Hormuz
Gold prices remained steady Thursday, as oil prices rose after reports that Iran was reviewing restrictions on "hostile vessels" in the Strait of Hormuz. This sparked inflation fears and rate hike expectations.
Gold spot was unchanged at $4,244.29 an ounce as of 2:50 pm EDT (1850 GMT), having reached its highest level since the 18th of June earlier in session. The yellow metal gained over 4% in one day, the largest gain since February.
U.S. Gold futures settled at $4,299.60, a 0.1% decrease.
A committee of the Iranian parliament is reviewing a draft bill which would prohibit U.S. and Israeli vessels, as well as other "hostile" vessels, from crossing the Strait of Hormuz. This was reported by Iran's semiofficial Fars News Agency, citing an Iranian lawmaker.
On the news, oil prices rose by more than $3 per barrel.
Jim Wyckoff is a market analyst for American Gold Exchange. He said that the draft Iranian bill "has an impact because of increased inflation" if crude oil prices rise again.
As manufacturers pass on costs to consumers, higher energy prices can lead to inflation. This encourages central banks to maintain a policy of raising interest rates for longer to combat the price pressures.
Gold and the Friday's U.S. jobs data will be influenced by what the Federal Reserve says about interest rates. Bob Haberkorn is a senior market analyst at StoneX. He believes that the central bank's interest rate announcements will be influenced by Friday's jobs data.
According to the CME FedWatch Tool, traders are pricing in an?about 57% chance that the central bank will raise rates at its?September meeting and?an 80% chance of one in December.
Gold becomes less appealing to investors when interest rates rise.
Haberkorn stated that "a lot of money which was sitting on the sidelines began coming back to gold yesterday, with certain technical levels being broken."
Bullion was still around 24% lower than the record high of $5594.82/oz that was reached in late January.
Silver spot fell by 0.9%, to $61.54 an ounce.
Palladium increased 0.6%, to $1371.48, while platinum fell 0.6%, to $1724.64. (Reporting and editing by Leroy Leo and Joyjeet Das in Bengaluru, and Sukanya Mittra and Swati Verma in Bengaluru)
(source: Reuters)