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Boeing wins $13.5-bn MAX jets deal as Farnborough opens

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At Farnborough, US titan Boeing and its European arch-rival Airbus will battle for supremacy as they declare their latest multi-billion-dollar jet orders
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US aerospace giant Boeing on Monday fired the first shot in an orders battle with European rival Airbus at Farnborough airshow, clinching a $13.5-billion deal for 100 MAX planes from Delta Airlines in a huge vote of confidence for the crisis-hit jet.

The deal marks a huge turnaround for the MAX jet which had suffered two deadly crashes in 2018 and 2019.

Outgoing British Prime Minister Boris Johnson meanwhile opened the prestigious five-day event as the avation sector plots its recovery from heavy Covid fallout.

US carrier Delta lodged its first ever order for medium-haul MAX aircraft, with options for 30 more of the fuel-efficient planes as it seeks to replace its ageing fleet and cut damaging emissions.

Boeing revealed also that Japanese airline ANA had agreed to purchase 20 of its smaller MAX 8 jets — worth $2.4 billion — plus two 777-8 freight planes.

– ‘More sustainable future’ –

“The Boeing 737-10 will be an important addition to Delta’s fleet as we shape a more sustainable future for air travel, with an elevated customer experience, improved fuel efficiency and best-in-class performance,” said Delta chief executive Ed Bastian.

The news comes as airlines worldwide seek to replace ageing fleets with fuel-efficient planes that emit less carbon dioxide.

The first visitors to Farnborough, southwest of London, were meanwhile hit by scorching temperatures amid Europe’s ongoing heatwave.

Defence aerospace companies are also expected to emerge as big winners, with Russia’s invasion of Ukraine boosting spending on nations’ armed forces.

Russian companies have been banned from Farnborough due to the war.

The event coincides with fast-moving political turmoil in Britain after Johnson’s recent announcement that he is stepping down as Conservative party leader, sparking a fractious contest to replace him also as prime minister.

– ‘Handing over controls’ –

“This government believes in aviation and its power to bring jobs and growth to the entire country,” Johnson said Monday as the event opened. 

“After three years in the cockpit… I am now handing over the controls seamlessly to someone else. I don’t know who,” he added, sparking laughter from delegates.

Johnson also said that the government was “investing massively in defence”.

This year’s event — one of the world’s largest civilian and defence shows — is the first global aviation get-together since the Paris airshow in 2019, before Covid hit.

Farnborough was cancelled in 2020 as the Covid health crisis grounded aircraft and ravaged the sector.

Global air traffic is gradually recovering and in May reached more than two-thirds of its pre-pandemic level, according to the International Air Transport Association.

That recovery has however faced headwinds from rocketing inflation fuelled by historically high energy prices and higher wages, while staff shortages constrain airports and spark flight cancellations.

– Air displays –

Ahead of the event, Britain issued a historic red warning for extreme heat, with southern England temperatures potentially exceeding 40C on Monday or Tuesday for the first time.

It comes as visitors to Farnborough will witness air displays by Britain’s Red Arrows and South Korea’s Black Eagles, as well as from the US-made F-35 stealth fighter.

Airbus and Boeing are showcasing their latest twin-aisle passenger aircraft, the A350-900 and the 777X.

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Goldman Sachs profits tumble despite strong trading results

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Goldman Sachs Chief Executive David Solomon praised the investment bank's performance, which was challenged by "increased volatility and uncertainty" in the macroeconomic environment
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Goldman Sachs reported a 48 percent drop in quarterly earnings Monday after setting aside more funds in case of bad loans, but shares rose as it topped analyst estimates.

The US investment bank became the latest financial heavyweight to suffer a decline in second-quarter results as the weakening macroeconomic environment prompts them to hold funds in case of defaults.

Operations were mixed, but Goldman scored a big jump in revenues tied to trading amid volatile markets.

Profits were $2.8 billion for the second quarter following an eight percent slide in revenues to $11.9 billion.

Goldman established $667 million in provisions, a shift from the year-ago period when earnings were boosted by $92 million in reserve releases.

Goldman Chief Executive David Solomon referred in a press release to “increased volatility and uncertainty” in the environment, praising the bank’s performance “in these challenging markets.” 

Other bank executives last week alluded to similar worries amid rising inflation, the war in Ukraine and other factors, but said the US economy still appeared to be on solid footing for now.

In terms of operations, Goldman suffered a drop in revenues connected to mergers and acquisition advising and loan underwriting. 

The bank’s own investments in equities reported a $221 million loss in the period. But Goldman scored an increase in its consumer banking.

Shares rose 3.8 percent to $305.05 in pre-market trading.

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Johannesburg transport project digs into wounds of the past

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Dug out by hand and deepened with explosives, the gouge testifies to the gold rush that founded Johannesburg - and fuelled segregation and inequality
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Off Johannesburg’s main highway, surrounded by skyscrapers, heavy machinery has unearthed one of the city’s original wounds — a deep gash left by the 1880s gold rush. 

The entire city centre is built over tunnels dug by generations of miners who extracted gold from the richest deposits the world has ever discovered. 

The city of around six million grew around cavernous pits and mountainous dumps, which eventually became the physical barriers of racial segregation. 

Now the rather poetic challenge of healing wounds both social and geological has fallen to property developers, who are turning this symbol of division into a bus terminal, connecting the city and the region. 

“This is a gateway site,” said Richard Bennett, marketing director for iProp, the company tasked with rehabilitating the site. 

“It will allow the South African populace in Johannesburg and surrounds to gain easy access to public or effective transport.”

– Connections –  

In the 1880s, the mine was one of the first places where prospectors dug with pickaxes, and eventually dynamite, hauling the gold 40 metres (130 feet) back up to the ground. 

After the easiest finds were depleted, this crevice — which looks like a canyon in the middle of the city — was simply filled with sand and used as a parking lot. 

The sand has now been hauled off, readying the pit to be refilled with a cement-like material that is to support the construction of a new, large bus terminal. 

The gold once mined there fuelled both fabulous wealth and deep social divides that persist to this day. 

But the future of the city depends on connecting people with better transport and more walkable streets, said David van Niekerk, CEO of the Johannesburg Inner City Partnership, a group working to revive the city centre after decades of official neglect. 

“Mixing is an important concept for the future of this city, and mixing in the widest possible sense,” van Niekerk said.

“The vision that I certainly have for this city is to turn it into a walkable city,” he added. 

“A city that’s walkable is a city that works for everyone, and I’m talking about from the homeless person to the major international corporate investor, and everyone in between.”

It’s a big challenge in a starkly divided country. 

A World Bank study last year found that the top one percent of South Africans own 55 percent of the nation’s wealth. 

The wealth of the poorest half of the country is actually negative — their debts outweigh their assets. 

The top 0.01 percent, or about 3,500 people, own more than the bottom 90 percent, representing 32 million people.

– Miners’ suffering –

Much of that inequality stems from the early days of mining, which took a tremendous and largely uncounted toll on the mostly black miners, while a few owners — wealthy whites — pocketed most of the profits.   

“Those early mines were done very chaotically and very hastily. There were no proper plans, and a lot of people died… in rockfalls and such,” said author Fred Khumalo. 

His novel “The Longest March” centred on black mine workers in early Johannesburg who lived in compounds where “the conditions were really appalling,” he said. 

“People slept on cement blocks. There were no cushions, no mattress whatsoever. The blankets they provided were flimsy, and Johannesburg winters can be cold. People fell sick, and some of them died from exposure.” 

As the city braced for war between British and white Afrikaners settlers in 1899, the mines shut down and food supplies were cut off, leading to riots. 

– Segregation –

In later decades, black mine workers who built homes nearby were forcibly removed as the gold digging expanded. 

When apartheid fully took hold, blacks were pushed to designated areas to the outskirts of the city with poor access to transport — and needed a “pass book” to access the city at all. 

Almost three decades after the end of white rule, transport links remain patchy and residents of black townships who can afford it drive cars into the city, clogging its roads.

A new transit hub could help ease some of that traffic, as thousands of commuters would replace the migrant workers who once toiled there. 

“In a way, it’s a philosophical level, paying tribute to how those spaces were created in the first place,” Khumalo said. 

“The prosperity of this country owes a lot to what happened back then.”

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Farnborough airshow opens amid heatwave

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At Farnborough, US titan Boeing and its European arch-rival Airbus will battle for supremacy as they declare their latest multi-billion-dollar jet orders
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Global aviation’s Farnborough airshow opens Monday amid a sweltering heatwave, with the sector aided by a modest recovery in air traffic and with Ukraine boosting defence budgets.

Tens of thousands of visitors will flock to the five-day show, held southwest of London, as weather forecasters warn of scorching record temperatures in England.

“It’s going to be the hottest Farnborough ever, so if you are going there, take plenty of water, take a hat — and don’t be surprised if you see either very sweaty people or people in shorts,” said analyst Richard Evans at air transport data specialist Ascend by Cirium.

Britain’s Met Office has issued a historic red warning for extreme heat, with southern England temperatures potentially exceeding 40C on Monday or Tuesday for the first time.

Organisers insist the show must go on “as planned” and will provide water refill points, shaded areas and air conditioning throughout exhibition halls.

This year’s event, one of the largest civilian and defence shows, is the first global aviation get-together since the Covid pandemic hit.

“This is the first major global airshow for three years since Paris 2019,” Farnborough chief executive Gareth Rogers told AFP.

The biennial Farnborough show was cancelled in 2020 as the Covid health crisis grounded aircraft and ravaged the sector.

Global air traffic is gradually recovering and in May reached more than two-thirds of its pre-pandemic level, according to estimates from the International Air Transport Association (IATA).

That recovery has however faced headwinds from rocketing inflation fuelled by historically high energy prices and higher wages, while staff shortages constrain airports and spark flight cancellations.

At Farnborough, US titan Boeing and its European arch-rival Airbus will battle for supremacy as they declare their latest multi-billion-dollar jet orders.

The show will this year zero in also on green themes of decarbonisation and sustainability, as many carriers seek to replace ageing fleets with modern fuel-efficient aircraft that emit less carbon dioxide.

Farnborough visitors will be thrilled by air displays by Britain’s Red Arrows and South Korea’s Black Eagles, as well as the US-made F-35 stealth fighter.

Airbus and Boeing will also showcase their latest twin-aisle passenger aircraft, the A350-900 and the 777X.

Meanwhile, Russia’s war on Ukraine has sparked an upsurge in defence spending as nations seek to bolster armed forces.

“Anecdotally we are certainly seeing a greater interest in the defence element of the show,” said Rogers.

Defence agreements are however not announced at Farnborough, unlike commercial civil aviation deals.

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