FT : Ministers outline plans to redraw airspace over London airports

Ministers outline plans to redraw airspace over London airports
Redesigning flight paths could lead to greener flights but also new noise pollution

UK ministers have taken a big step towards redesigning the flight paths aircraft use to take off from and land at London airports, in a change that could lead to greener flights but also new noise pollution in parts of the capital.

The Department for Transport and the Civil Aviation Authority on Tuesday announced a consultation on the formation of a new “airspace design service” to redraw “the way planes fly in, out and over the UK”.

The review by ministers and the regulator will start with the heavily congested airspace over London and the south of England, with ministers vowing to modernise the “highways of the sky” that have barely changed since the 1950s.

Modernising the capital’s airspace offers the prospect of quicker and more direct flights that emit less carbon, but could mean new communities are affected by noise pollution.

The UK’s airspace infrastructure was first designed in the 1950s and 1960s, and based on a fixed network of “way points” that mirror the positions of obsolete ground navigation beacons.

Although the airspace infrastructure has since been refined to account for the rise in air travel, many big routes from major airports have barely changed in decades. Governments have pledged to modernise the UK’s airspace for more than a decade, but progress has been slow.

“UK airspace is one of the nation’s biggest invisible assets, but it’s been stuck in the past — a 1950’s pilot would find that little has changed,” said aviation minister Mike Kane, as he promised to make air travel “a better experience for all”.

More than 2.6mn aircraft fly through the UK each year, and a wholesale redesign would allow planes to climb and descend more efficiently and rely less on circling airports in holding patterns.

It would build on work by National Air Traffic Services, the UK’s air traffic control provider, which has in recent years redrawn airspace thousands of feet above south-west England, Wales and Scotland.

Martin Rolfe, Nats chief executive, said: “Any initiative that can help speed up the modernisation programme for UK airspace is very welcome, especially in London and the South East. It is some of the busiest and most complex airspace in the world.”

But some industry figures said trying to redraw London’s highly complex airspace was likely to be contentious because changes to flight paths could trigger new noise pollution.

Still, airlines have called for the changes in response to growing air traffic control problems, which have led to significant delays and cancellations for carriers including British Airways.

It is also part of the aerospace industry’s road map to lowering its carbon emissions to reach net zero by 2050.

Tim Alderslade, chief executive of AirlinesUK, which speaks for carriers, said reform of Britain’s airspace would “not only reduce delays and improve resilience for passengers and cargo operators in what is an increasingly congested system” but also help the sector “achieve net zero emissions”.

FT : Mubadala Capital sees chance to buy up large private equity stakes

Mubadala Capital sees chance to buy up large private equity stakes
Emirati unit has raised $3.1bn for its latest fund hoping to appeal to groups looking to raise cash

An arm of Abu Dhabi’s sovereign wealth fund is preparing a push into private equity markets, spotting what it believes is an opportunity to take over large holdings as buyout groups race to sell assets and return cash to investors.

Mubadala Capital, the asset management subsidiary of the $302bn sovereign wealth fund, has raised $3.1bn for its latest private equity fund, surpassing a $2bn target.

It is positioning the fund as a solution to private equity groups seeking to exit large bets, or PE-backed companies managing heavy debt burdens that need fresh capital.

Mubadala’s private equity fund generally is seeking to invest between $150mn to $350mn in equity per investment, but will push that investment to as much as $500mn for “great ideas”. It now manages $24bn, three-quarters of which comes from external investors.

“We’re seeing a lot of limited partners are short on liquidity,” said Oscar Fahlgren, chief investment officer of Mubadala Capital, in an interview with the Financial Times. “There’s a focus on realisations by a lot of funds, and that’s driving interesting opportunities for those of us who are well capitalised.”

This year Mubadala Capital has increased its investment pace, striking large deals to buy credit manager Fortress Investment Group, high end baby stroller brand Bugaboo, and Spanish IT consultancy Babel.

Hani Barhoush, chief executive of Mubadala Capital, said a two-year lull in private equity deal making had created a window for the fund to use its financial prowess to build majority investments in large PE-backed companies.

Though Mubadala Capital’s private equity fund is small relative to funds raised by industry giants like Blackstone and KKR, it uses equity financing from its sovereign wealth parent to fund large-scale takeovers.

Earlier this year, Mubadala Capital acquired a majority stake in Fortress from Japanese conglomerate SoftBank at a valuation of about $3bn.

The complex deal is part of Mubadala’s bet that private fund managers will see their growth fuelled as private investment opportunities become increasingly available to individual investors, said Barhoush and Fahlgren.

In the takeover of Fortress, Mubadala Capital agreed to an about $2bn equity commitment that was more than its private equity fund had in assets at the time. It was able to complete the deal with additional capital from its corporate parent.

Once the deal was agreed and went through regulatory approvals, Mubadala Capital then syndicated the equity commitment to other investors.

“One of the luxuries we have, given the size of our balance sheet and the size of our parent company, is we can write much larger checks,” said Barhoush.

>>> US After Hours Summary: SAP +4% up nicely on beat-and-raise in Q3; MEDP -10.

After Hours Summary: SAP +4% up nicely on beat-and-raise in Q3; MEDP -10.7% slides on disappointing quarterly results

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: FLXS +11.4%, ZION +5.2%, SAP +4%, HSTM +3.3%, ARE +2%, WTFC +1.6%, RLI +1.2%, CATY +0.9%, ELS +0.7%, WRB +0.4%, BOKF +0.3%

Companies trading higher in after hours in reaction to news: IRTC +17.2% (FDA grants clearance for 510(k) submission related to design changes made to the Zio AT device), CAKE +5.3% (activist urging to consider breakup, according to WSJ), IIIN +3.6% (acquires Engineered Wire Products for $70 mln), RVMD +2.5% (first patient dosed in Phase 3 study), NRIX +2% (presentations announced to summarize new data), EDIT +1.3% (collaboration with Genevant Sciences), ESEA +1.1% (new 3-year time charter contracts), CRC +0.7% (Kern County approves of conditional use permit for CTV I carbon capture), REXR +0.6% (appoints new CFO and COO), NKE +0.5% (12-year partnership extension with NBA, WNBA, and G-League), BLND +0.2% (successful implementation of its Close solution), RYAM +0.1% (power restored to Georgia site), MTAL +0.1% (drill results)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: BOOM -21.2% (guidance, strategic review, and chairman shakeup), MEDP -10.7%, SSD -4.6%, HXL -2.9%, NUE -2.9%, IPAR -1.9%, SIGI -1%, KREF -0.6%

Companies trading lower in after hours in reaction to news: NNE -9.7% (stock offering), ASPN -5% (files mixed shelf; files 4.25 mln stock offering), BOW -2.4% (stock offering), OMC -0.8% (files mixed shelf)

>>> US Close Dow -0.80% S&P -0.18% Nasdaq +0.27% Russell -1.60%

Closing Stock Market Summary
The stock market faced some selling pressure today after six straight weeks of gains for the S&P 500 (-0.2%). The index closed at a record high on Friday, along with the Dow Jones Industrial Average (-0.8%), so today's downside bias was related in part to normal consolidation activity.

Selling in the stock market was also a function of rising market rates. The 10-yr yield settled 11 basis points higher at 4.18% and the 2-yr yield settled seven basis points higher at 4.02%.

The Nasdaq Composite outperformed other major indices, climbing 0.3% compared to Friday's close thanks to gains in some mega cap names. NVIDIA (NVDA 143.71, +5.71, +4.1%), Microsoft (MSFT 418.78, +0.62, +0.2%), and Apple (AAPL 236.48, +1.48, +0.6%) were among the influential winners from the space.

Many other stocks participated in today's retreat. 23 of the 30 Dow components fell and ten of the 11 S&P 500 sectors declined. The information technology sector (+0.9%) was alone in positive territory, boosted by its heavily-weighted components, while the rate-sensitive real estate sector (-2.1%) logged the largest decline by a decent margin.

The health care sector (-1.2%) was the next worst performer, clipped by a sizable decline in shares of Cigna (CI 320.23, -15.77, -4.7%) following a Bloomberg report that it was in talks to takeover Humana (HUM 260.57, -6.57, -2.5%).

The negative action in equities also reflected a wait-and-see mentality in front of a busy week of earnings. Tesla (TSLA 218.85, -1.85, -0.8%), Boeing (BA 159.82, +4.82, +3.1%), and UPS (UPS 131.33, -4.60, -3.4%) are some of the headliners on the earnings calendar.
  • Nasdaq Composite: +23.5% YTD
  • S&P 500: +22.7% YTD
  • Dow Jones Industrial Average: +13.9% YTD
  • S&P Midcap 400: +13.6% YTD
  • Russell 2000: +10.5% YTD

Reviewing today's economic data:
  • September Leading Indicators -0.5% (consensus -0.3%); Prior was revised to -0.3% from -0.2%
There's no US economic data of note on Tuesday.

>>> NIKE announces 12-year partnership extension with NBA, WNBA, and NBA G Leagu

NIKE announces 12-year partnership extension with NBA, WNBA, and NBA G League
  • NIKE (NKE), the National Basketball Association (NBA) and the Women's National Basketball Association (WNBA) today announced a 12-year extension of their global outfitting, merchandising, marketing and content partnership that solidifies NIKE, Inc. as the leader in global basketball and as the exclusive on-court uniform and apparel provider for the NBA, WNBA and NBA G League.
  • NIKE, Inc. will extend its rights over 12 additional seasons to design and manufacture NBA, WNBA and G League uniforms, on-court apparel, and fan apparel, furthering its commitment to grow and improve the sport of basketball for the next generation.
  • The global extension is highlighted by new content initiatives, a comprehensive commitment to grassroots basketball, as well as the continued development of a joint membership program that delivers benefits to fans of the brands through distinctive products, content and experiences. As the biggest champion of the women's game, NIKE, Inc. is also deepening its investment in the WNBA.
  • NIKE, Inc. and the National Basketball Players Association (NBPA) also extended its group license agreement making NIKE, Inc. an official partner of the NBPA.
  • The renewal follows the eight-year global outfitting, merchandising, marketing and content partnership struck in 2015, which made NIKE, Inc. the official on-court outfitter beginning with the 2017-18 NBA season.

>>> SAP SE beats by €0.02, slightly tops revenue ests; raises FY24 cloud and sof

SAP SE beats by €0.02, slightly tops revenue ests; raises FY24 cloud and software revenue outlook in cc
  • Reports Q3 (Sep) earnings of €1.23 per share, excluding non-recurring items, €0.02 better than the FactSet Consensus of €1.21; revenues rose 9.4% year/year to €8.47 bln vs the €8.45 bln FactSet Consensus.
    • Cloud and software revenue of €7.43 bln, up 11% yr/yr.
  • FY24 outlook:
    • Co expects cloud and software revs of €29.5-29.8 bln in constant currency, raising the midpoint by €400 mln.
    • Co continues to expect cloud revs of €17.0-17.3 bln in constant currency.

Times of Israel : IDF identifies Hezbollah bunker under Beirut hospital with $50

IDF identifies Hezbollah bunker under Beirut hospital with $500 million in gold and cash
.

IDF Spokesperson Rear Adm. Daniel Hagari says Israel has located a Hezbollah bunker under a Beirut hospital where the terror group is storing more than $500 million in gold and cash.

He releases the details after a night of attacks in which Israel targeted Hezbollah’s financial institutions.

In a press conference, Hagari shows one of slain Hezbollah leader Hassan Nasrallah’s bunkers located under the Sahel hospital in Beirut.

“The bunker was deliberately placed under a hospital, and it holds more than half a billion dollars in cash and gold,” Hagari says.

“That money could have been used to rehabilitate Lebanon, but it went to rehabilitate Hezbollah,” he says.

“The [Israeli] Air Force aircraft are watching the site and will continue to track it,” he says.

During the press conference, Hagari details how Iran transfers money to Hezbollah and other ways the terror group finances its operations and vows that Israel will continue to strike its financial operations.

Haaretz : Who Leaked U.S. Intelligence on Israel's Secret Preparations for a Str

Who Leaked U.S. Intelligence on Israel's Secret Preparations for a Strike on Iran? And Why?
The reservoir of possible leakers of U.S. intelligence documents detailing Israel's apparent preparations for a retaliatory attack on Iran is big, and the platform chosen by them – a pro-Iranian Telegram channel – is unsophisticated. But national security leaks are rarely a singular isolated event

On Thursday, two U.S. intelligence documents detailing Israel's apparent preparations for a retaliatory attack on Iran leaked on a Telegram channel called Middle East Spectator.

As is routine in such cases, the news was initially met with skepticism by the media and the disclaimer that "We cannot confirm the authenticity and veracity of these documents."

On Sunday, the Pentagon confirmed that the documents attributed to two U.S. agencies – the National Geospatial-Intelligence Agency and National Security Agency – were real. It announced its concern and that it was conducting an investigation into the leak's origins, adding that "damage to national security appears to be limited."

That's hardly reassuring, even if the damage does end up being confined to just these two documents. Surely there are more where they came from, whether on Israel-Iran, Russia-Ukraine or China-Taiwan.

As opposed to an unintentional leak, a deliberate leak of national security information is a criminal offense. Sometimes, depending on the subject matter, the circumstances, the sensitivity of the information, the methodology of how it was obtained and the intended (even if indirectly) recipient, it can constitute treason.

Such leaks are obviously a matter of access, opportunity and motivation. A leak is rarely a singular isolated event, whether it relates to national security, to politics or to corporate insider-information on securities. Every leak has several ingredients: What is the content? How was the information gathered? What is the context? What is its significance? What are the implications? Who is the leaker(s)? Was it intentional? What are the motives? Is it political dissent? Is it a warning? Was there a financial incentive? Were they extorted?

While the original term "leak" was used in reference to an inadvertent slip of the tongue by an official, or an unauthorized but essentially benign divulgence of information, modern usage applies to a whole taxonomy of leaks.

Bernard and Marvin Kalb described at length the art of the leak following their experience with U.S. Secretary of State Henry Kissinger. University of Washington scholar Richard Kielbowicz went further and wrote a book on the phenomenon: "The Role of News Leaks in Governance and the Law of Journalists' Confidentiality, 1795-2005."

Kielbowicz identified the major types of leak: those intended to influence policy; those intended to shape personal image; those intended to implicate someone else; or those intended to improve relations with the media.

Then there are leaks as a form of organizational communication: leaks as upward communication; leaks as downward communication; leaks as horizontal communication within and between governments.

This latest leak could be any of the above, or a combination. One thing seems clear: the platform chosen indicates that this was probably not a deliberate U.S. leak to pressure Israel or alert Iran. There are other, more sophisticated ways and better outlets to do that. The pro-Iranian Middle East Spectator Telegram channel describes itself as "independent, but not unbiased, striving for a multipolar world. Mainly focused on Iran & Resistance Axis" – referring to the likes of Hamas, Hezbollah and the Houthis.

The U.S. documents, based on satellite imagery from October 15-16, detail Israeli preparations for a prospective strike in response to Iran's launching of 181 ballistic missiles at Israel on October 1.

One document is titled "Israel: Air Force Continues Preparations for Strike on Iran and Conducts a Second Large-Force Employment Exercise." The second is titled ""Israel: Defense Forces Continue Key Munitions Preparations and Covert UAV Activity Almost Certainly for a Strike on Iran."

The documents' very recent date is consistent with U.S. assessments about the timing of an Israeli strike, and partially detail Israel Air Force exercises and munitions movement.

The text clarifies that "We cannot definitively predict the scale and scope of a strike on Iran, and such a strike can occur with no further GEOINT warning." GEOINT is an abbreviation of geospatial intelligence. It stresses that "MRBM [Medium Range Ballistic Missile] dispersal is almost certainly defensive" and adds that "We have not observed indications that Israel intends to use a nuclear weapon." Leak or not, that's good to know.

The visual information was compiled and analyzed by the National Geospatial Intelligence Agency, one of the U.S.' intelligence agencies providing general, planning stage and real-time operational data.

The second document is attributed to the National Security Agency, the United States' main agency working under the Director of National Intelligence. It is responsible for monitoring, collecting, and processing of information and data on foreign intelligence and counterintelligence, covering both friend and foe. The NSA's technological focus is on signals intelligence (SIGINT) and cyberwarfare capabilities.

Analytical intelligence reports – and this is what these documents are – have a wide distribution net within the U.S. intelligence community and national security apparatus, thus enlarging the reservoir of possible suspected leakers.

Furthermore, these two documents are presumably only a fraction of continuous monitoring, a snapshot of a process being watched diligently from above the planet.

On Sunday, the Pentagon confirmed the veracity of the information and that the leaked NGA documents are authentic. The leak is "deeply concerning," a U.S. Defense Department official told CNN, adding that the Pentagon and FBI have begun an investigation to identify the source. The documents were marked "top secret," but apparently also had markings indicating that they can be seen and shared among allies in Five Eyes.

Five Eyes is an Anglosphere intelligence alliance comprising the United States, United Kingdom, Australia, Canada and New Zealand. The last three countries have joined and become parties to the multilateral Anglo-American agreement – a treaty for joint cooperation in signals intelligence whose origins go back to joint efforts to break Nazi codes in World War II.

Informally, Five Eyes refers to these countries' intelligence agencies. The term pertains to the fact that no information can be shared with any other country or agency outside of the five. However, the distinctive U.S. formatting of the documents indicates that they were likely not yet disseminated to the other four allies or that the other countries were the likely source of the leak. Which leaves the U.S. government.

The Americans urged, implored and cautioned Israel not to attack Iran's nuclear installations or its oil industry infrastructure. Reportedly, Israel provided such assurances and the United States simultaneously deployed a THAAD missile battery in Israel as another layer of defense and a deterrent against Iran if it entertains the thought of further retaliation following the expected Israeli attack.

The Americans know an Israeli attack is imminent, with President Joe Biden going as far as to say on Friday that he knows when, where and what such an attack will look like. But the United States is also apprehensive about possible escalation (you can't write an article on the Middle East these days without using that term at least once).

Even if the leak was not a deliberate U.S. government attempt to influence policy, and even if the leaker – whatever their motivation – did no real harm, the two documents shed light on the level of nervousness all around.

FT : Nigeria rejects Shell’s planned sale of $1.3bn onshore production unit

Nigeria rejects Shell’s planned sale of $1.3bn onshore production unit
The decision comes the same day as ExxonMobil wins approval for its long-delayed asset sale in Niger Delta

Nigeria has rejected Shell’s proposed $1.3bn sale of its onshore oil production unit, dealing a blow to the oil major’s plans to exit the troubled shallow water sector in the Niger Delta region.

Gbenga Komolafe, chief executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), told an oil conference in Abuja that the sale to a local consortium, Renaissance Africa Energy, was blocked because the transaction did “not scale [the] regulatory test”.

While he did not provide details of the regulator’s reasoning on Monday, Komolafe has previously cast doubt on little known Renaissance’s ability to operate Shell’s assets in the country. Renaissance declined to comment and Shell did not immediately respond to a request for comment.

The rejection of Shell’s deal with Renaissance came as regulators approved ExxonMobil’s long-delayed $1.28bn arrangement to sell onshore assets to London-listed Seplat Energy, demonstrating hurdles and uncertainty often faced by investors seeking to divest from Nigeria.

Komolafe said at the conference, held in Nigeria’s capital, that a long-awaited ministerial consent had been granted by his agency for the Exxon sale to proceed. Seplat declined to comment but acknowledged the announcement made by the regulator.

Shell announced in January that it had struck a deal to sell its onshore assets in the swamplands of the Niger Delta in the south of the country, putting it on course to exit the region after 68 years.

The European major had been waiting for approval from the country’s oil minister, who in turn is advised by NUPRC on whether to rubber stamp deals. Nigeria’s president, Bola Tinubu, doubles as petroleum minister.

Italy’s Eni, Norway’s Equinor and China’s Addax, are among companies that have announced deals to sell onshore assets in Nigeria in the past two years because of declining returns as a result of oil theft, violence and environmental damage.

Prospects of better returns in offshore fields have also lured oil majors away from the swamplands of the Niger Delta.

US oil company Exxon and Seplat, which is also listed on the Nigerian Stock Exchange, first agreed the deal in February 2022. Seplat has forecast that the takeover of Exxon’s assets will almost triple its production to roughly 130,000 barrels of crude oil, from 48,000.

The all-cash deal had been in limbo since state-owned oil company NNPC sought to block it, arguing that it had a right of first refusal to purchase the assets from Exxon. The US company operates the permits in a partnership with NNPC, as all international companies are legally required to.

Former President Muhammadu Buhari approved the deal in August 2022 after “considering the extensive benefits of the transaction to the Nigerian energy sector and the larger economy”. But he reversed course less than three days later, saying further regulatory scrutiny was needed.

Italian giant Eni completed the sale of its Nigeria unit to Oando for $783mn in August while Norway’s Equinor sold its subsidiary to Chappal Energies, a local company, for an undisclosed amount last November.

Chappal Energies this year acquired a minority stake in a Total onshore venture for $860mn.

Clementine Wallop, director for sub-Saharan Africa at Horizon Engage, a consultancy, said the approval of Exxon’s transaction was “good news for the Nigerian government and for investors in the energy space, after a long wait that has caused uncertainty”.

FT : Organised crime has taken on a different shape in Latin America

Organised crime has taken on a different shape in Latin America
The US and Europe must partner with the region to dismantle bigger and stronger criminal enterprises

Latin America is learning the hard way. Organised crime in the region has been bad since the 1980s; but “reorganised crime” is proving far worse.

Ecuador’s gang war meltdown; Mexican mafias’ colonisation of avocado farms; hitmen prowling the once peaceful streets of Chile. These are a few recent developments that have made organised crime the unavoidable question of the moment in Latin America.

But these are just the symptoms. The underlying disease: a reorganisation of the region’s criminal economies, now over a decade in the making. One that is testing democracy’s capacity to respond — and survive. 

Three market disruptions jump-started reorganisation in the 2010s. First, cocaine production nearly tripled from 2014 to 2022, as coca eradication efforts in Colombia, Peru and Bolivia stalled and cultivation expanded. Meanwhile, demand for cocaine, long dominated by the US, became more global, spreading to Europe, Africa and the Asia-Pacific. 

This had two major consequences: a rewiring of drug trafficking routes and huge windfalls. Brazil’s crime syndicate First Capital Command (PCC) made an estimated $40mn just over a decade ago. Now, since building a transcontinental pipeline to supply increased demand, it makes north of $1bn annually from cocaine alone.

Second, soaring gold prices triggered a criminal gold rush. Organised crime groups took over areas where wildcat gold miners operated, equipping and taxing them, and enabling a boom in output. In 2022, Latin America’s illegal mines accounted for over 11 per cent of global gold production (up from 6 per cent a decade earlier), out-earning cocaine in Colombia and Peru.

Last, during the 2010s, millions of Latin Americans (Venezuelans in particular) fled the dismal conditions created by mafias and mafia states. But these very crime groups made their flight into an industry, systematically taxing coyotes that ferry migrants and refugees (as well as kidnapping and ransoming migrants passing through Mexico), and reaping billions in profit annually.

Barring any sudden and unlikely ebbs in demand for the region’s illicit goods and services, reorganised crime is here to stay. And everyone should be worried, including Europe and the US. 

Reorganised crime threatens democracy — no small thing, given that Latin America remains the most democratic region in the global south. While mafias don’t seek to overthrow the government, they seed “parallel powers” — networks of corrupt politicians, judicial officials, and bureaucrats — that disable the state’s law enforcement capacities. Such powers are now surfacing in once unaffected countries and consolidating elsewhere, undermining democracy in Mexico, Honduras and Peru.

Latin America’s democracies lack a blueprint for combating transnational crime. While some see El Salvador President Nayib Bukele’s anti-gang crackdown as a model, this is a deceptive siren song — El Salvador’s mafias were poorer and weaker than those elsewhere, and the country is now an authoritarian police state.

The difficult truth: reorganised crime is in all likelihood too global a phenomenon for any one country alone to make an appreciable dent. The US and Europe should quit relegating Latin America to the back burner and prioritise partnering with regional governments to reduce the profitability and power of reorganised crime: consider the record number of fentanyl deaths, the overwhelmed US immigration system and the consequent nativist backlash.

The biggest risk is assuming that the cost of organised crime in Latin America can be contained. Left to its own devices, and subject to pure market forces, crime will keep innovating. And it will keep reorganising.