Some Boeing 737 MAX planes temporarily grounded after ‘potential’ issue

In this file photo taken on Sept. 30, 2020, a Boeing 737 MAX airliner lands during an evaluation flight at Boeing Field in Seattle, Washington. (AFP / Jason Redmond)
In this file photo taken on Sept. 30, 2020, a Boeing 737 MAX airliner lands during an evaluation flight at Boeing Field in Seattle, Washington. (AFP / Jason Redmond)
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Updated 10 April 2021

Some Boeing 737 MAX planes temporarily grounded after ‘potential’ issue

Some Boeing 737 MAX planes temporarily grounded after ‘potential’ issue
  • Boeing managed to get the 737 MAX back in the skies late last year after it was grounded for 20 months following two fatal crashes

NEW YORK: US aircraft manufacturer Boeing said on Friday it had recommended that 16 airlines flying its 737 MAX planes address a “potential electrical issue” in a new setback for the top-selling model.
Major carriers began temporarily removing some of their MAX planes from service after the aerospace giant flagged the electrical issue — which is not a concern for all of the aircraft.
The potential problem requires “verification that a sufficient ground path exists for a component of the electrical power system,” Boeing said.
Electrical systems must be grounded to avoid overloads that can cause serious failures.
Boeing shares fell Friday, although the likely impact of this latest issue appeared limited.
A note from the investment website Briefing.com said it was encouraging that a major Boeing customer, Southwest Airlines, expects only a minimal disruption.
“However, the news is another blow for customers’ and investors confidence in the company,” Briefing said.
Boeing managed to get the 737 MAX back in the skies late last year after it was grounded for 20 months following two fatal crashes, and recently announced an order for 100 of the aircraft as the airline sector begins to recover from the coronavirus pandemic.
The manufacturer discovered the latest issue on a plane in production “during normal build activity,” a Boeing spokeswoman said.
It is “premature” to discuss the time needed to address the issue, and “could take a matter of hours or a few days” before planes are returned to service,” she said.Boeing did not say which airlines were concerned, nor did it specify the number of aircraft involved.
The company notified the US Federal Aviation Administration of the issue on Thursday night, an FAA spokesperson said.
“The FAA is in contact with the airlines and the manufacturer and will ensure the issue is addressed,” the agency said. “Passengers should contact their airlines about specific flight cancelations or delays.”
Southwest Airlines, which announced a large order of new MAX planes last month, said it removed from service a “subset” of its MAX fleet.
“While Southwest has not experienced any known operational challenges related to the issue, 30 of the airline’s 58 737 MAX 8 aircraft are affected by the notification,” the carrier said. “Southwest anticipates minimal disruption to our operation.”
United Airlines, which also has ordered additional MAX planes since the jet was approved by regulators to resume service, said it is “voluntarily and temporarily removing 16” of its MAX planes from its schedule.
“We have been in touch with the FAA and Boeing and will continue to work closely with them to determine any additional steps that are needed to ensure these aircraft meet our rigorous safety standards and can return to service,” United said. “We are working to swap out aircraft to minimize the impact to our customers.”
American Airlines said it removed 17 aircraft “to complete necessary inspections and make any changes recommended or required by Boeing or the Federal Aviation Administration,” a spokeswoman said.
All three US carriers still have MAX planes in their fleet not affected by the issue.The 737 MAX has been a huge hit with airlines, and was Boeing’s best-selling aircraft until it was grounded in March 2019 following the second of two crashes that together claimed 346 lives.
And after the Covid-19 crisis hammered the air transport sector, airlines canceled hundreds of orders.
Investigators said a main cause of both crashes was a faulty flight handling system known as the Maneuvering Characteristics Augmentation System or MCAS.
Boeing continues to face litigation from families of victims who died in crashes on Lion Air and Ethiopian Airlines flights.
The FAA in mid-November cleared the MAX to return to service following upgrades to the plane and pilot training protocols. Other national regulators have followed suit since then.
Recent MAX orders by Southwest, Ryanair and others have underscored the appeal of the single-aisle MAX in the nascent airline industry recovery following the pandemic travel shutdown.
Aviation experts expect demand for domestic and short-flight service to recover before international flying.
Shares of Boeing fell 1.0 percent to $252.36.`


US stocks rebound following inflation scare

US stocks rebound following inflation scare
Updated 14 May 2021

US stocks rebound following inflation scare

US stocks rebound following inflation scare
  • Rebound comes despite worries that soaring inflation could trigger interest rate rises

LONDON: US stocks rebounded on Thursday, a day after slumping on worries that soaring US inflation could trigger interest rate rises sooner than expected, and in turn harm global economic recovery.

Focus was also on bitcoin, which resumed sharp falls after Tesla’s Elon Musk stopped allowing people to pay for his electric cars with the cryptocurrency.

While US stocks opened higher, with the Dow adding 0.3 percent, their sharp losses on Wednesday pulled Asian and European stocks along with them on Thursday.

Tokyo’s main stocks index closed down 2.5 percent and European stocks also suffered sharp losses but recovered as the opening bell in New York approached.

With little in the way of news to spur the reversal, this invites “the notion that the scope of recent losses has gone far enough to whet the appetite of buy-the-dippers who have successfully feasted over the last year or so on down moves like the one that has recently unfolded,” said analyst Patrick J. O’Hare at Briefing.com.

Stock markets were already awash with red this week owing to growing fears that the blockbuster global economic recovery and vast stimulus measures will see cashed-up consumers go on a pent-up spending spree that will strain supplies and push up costs.

And those concerns were given oxygen Wednesday by figures showing US consumer inflation spiked at 4.2 percent in April, far higher than estimates and the highest since 2008 just before the global financial crisis kicked in.

That was followed on Thursday by data showing that producer prices jumped by 6.2 percent in April, the highest pace since 2010.

The advances were driven by a rally in commodity prices such as widely used copper, iron and lumber, which are sitting at record or multi-year highs.

“For stocks this might be an even tougher moment, given that companies may find themselves struggling to pass on price increases to customers, hitting profitability and putting the year-long earnings recovery in jeopardy,” noted Chris Beauchamp, chief market analyst at IG trading group.

Tech firms, which blossomed during lockdowns as people were forced to stay home, have led the share-price losses as they are more susceptible to higher interest rates.

The Fed has repeatedly insisted it expects such sharp price spikes but they will be transitory owing to last year’s low base and policymakers will not make any adjustments until they are happy unemployment is under control and inflation is running hot for some time.

However, investors are not convinced and there is growing unease that the central bank could lose control of the situation if it does not act in time, with analysts warning it could risk people’s confidence in the institution.

Tai Hui, at JP Morgan Asset Management, remained broadly upbeat about the outlook for equities, saying that while the sell-off was heavy, the gain in US Treasury yields — a gauge of future interest rates — was less severe.

“The market’s reaction ... (was) mild, reflecting the belief that this jump in inflation will eventually calm and revert closer to the Fed’s long-term target,” he said.

Regarding Bitcoin meanwhile, after Musk cited the environmental impact caused by the computing-intense mining process of creating new units, the cryptocurrency slumped around 16 percent.

It later recovered before trading down around 10 percent at $50,400 on Thursday.


How big is Bitcoin’s carbon footprint?

How big is Bitcoin’s carbon footprint?
Updated 14 May 2021

How big is Bitcoin’s carbon footprint?

How big is Bitcoin’s carbon footprint?
  • Concerns mount about the way bitcoin is ‘mined’ using fossil fuels

LONDON: Tesla boss Elon Musk’s sudden u-turn over accepting bitcoin to buy his electric vehicles has thrust the cryptocurrency’s energy usage into the headlights.

Some Tesla investors, along with environmentalists, have been increasingly critical about the way bitcoin is “mined” using vast amounts of electricity generated with fossil fuels.

Musk said on Wednesday he backed that concern, especially the use of “coal, which has the worst emissions of any fuel.”

So how dirty is the virtual currency?

Power hungry

Unlike mainstream traditional currencies, bitcoin is virtual and not made from paper or plastic, or even metal. Bitcoin is virtual but power-hungry as it is created using high-powered computers around the globe.

At current rates, such bitcoin “mining” devours about the same amount of energy annually as the Netherlands did in 2019, data from the University of Cambridge and the International Energy Agency shows. Some bitcoin proponents note that the existing financial system with its millions of employees and computers in air-conditioned offices uses large amounts of energy too.

Coal connection

The world’s biggest cryptocurrency, which was once a fringe asset class, has become increasingly mainstream as it is accepted by more major US companies and financial firms. Greater demand, and higher prices, lead to more miners competing to solve puzzles in the fastest time to win coin, using increasingly powerful computers that need more energy.

Bitcoin is created when high-powered computers compete against other machines to solve complex mathematical puzzles, an energy-intensive process that often relies on fossil fuels, particularly coal, the dirtiest of them all.

Green Bitcoin?

Bitcoin production is estimated to generate between 22 and 22.9 million metric tons of carbon dioxide emissions a year, or between the levels produced by Jordan and Sri Lanka, a 2019 study in scientific journal Joule found.

There are growing attempts in the cryptocurrency industry to mitigate the environmental harm of mining and the entrance of big corporations into the crypto market could boost incentives to produce “green bitcoin” using renewable energy. Some sustainability experts say that companies could buy carbon credits to compensate for the impact. And blockchain analysis firms say that it is possible in theory to track the source of bitcoin, raising the possibility that a premium could be charged for green bitcoin. Climate change policies by governments around the world might also help.

Alternative energy

Projects from Canada to Siberia are striving for ways to wean bitcoin mining away from fossil fuels, such as using hydropower, or at least to reduce its carbon footprint, and make the currency more palatable to mainstream investors.

Some are attempting to repurpose the heat generated by the mining to serve agriculture, heating and other needs, while others are using power generated by flare gas — a by-product from oil extraction usually burned off — for crypto mining.

China crisis

The dominance of Chinese miners and lack of motivation to swap cheap fossil fuels for more expensive renewables means there are few quick fixes to bitcoin’s emissions problem, some industry players and academics warn. Chinese miners account for about 70 percent of production, data from the University of Cambridge’s Center for Alternative Finance shows. They tend to use renewable energy — mostly hydropower — during the rainy summer months, but fossil fuels — primarily coal — for the rest of the year.


Samsung boosts non-memory chip investment to $151bn

Samsung boosts non-memory chip investment  to $151bn
Updated 14 May 2021

Samsung boosts non-memory chip investment to $151bn

Samsung boosts non-memory chip investment  to $151bn
  • The government will offer about 1 trillion won in long-term loans for increasing 8-inch wafer chip contract manufacturing capacity

SEOUL: Samsung Electronics on Thursday raised its planned investment in non-memory chips to 171 trillion won ($151 billion) through 2030, joining a rush of firms ramping up investments amid a global semiconductor shortage.

Countries have also been working to bolster chip supply chains as the chip shortage affects production in industries such as autos. South Korea on Thursday said it would offer bigger tax breaks plus 1 trillion won ($883 million) in loans for its local chip industry.

Some 153 chip companies including global No. 1 and 2 memory chip makers Samsung and SK Hynix already have plans to invest a combined 510 trillion won or more between this year and 2030, according to the Korea Semiconductor Industry Association.

Samsung’s increased investment target, up from 133 trillion won announced in 2019, is expected to be used for its goal to become the world’s No. 1 logic chipmaker by 2030. It wants to challenge bigger rivals TSMC in contract chip manufacturing and Qualcomm in mobile processing chips.

Samsung also said in a statement that its third chip production line at Pyeongtaek, south of Seoul — the size of 25 football fields — will be completed in the second half of 2022. “Countries around the world have entered fierce competition by reorganizing supply chains around their own country,” South Korean President Moon Jae-in said Thursday at Samsung’s chip site at Pyeongtaek.

“We need pre-emptive investments ... to strengthen the domestic industrial ecosystem and lead the global supply chain to make this opportunity ours.”

South Korea will increase tax breaks to 6 percent from the current 3 percent or lower for capital expenditures between second half of 2021 to 2024 for large corporations conducting “key strategic technology” including semiconductors, the Ministry of Trade, Industry and Energy said in a statement.

The government will offer about 1 trillion won in long-term loans for increasing 8-inch wafer chip contract manufacturing capacity and investment for materials and packaging. It also raised number of chip industry workers to be educated to 36,000 by 2030, more than double its previous target in 2019. “Setting up an environment where smaller fabless firms can thrive, with plenty of workforce and foundries, would naturally bolster system chip industry,” said Jinwook Burm, head of the Institute of Semiconductor Engineers.

In March, US President Joe Biden flagged plans to invest $50 billion in semiconductor manufacturing and research.

Chips are the No. 1 export item for South Korea, accounting for about 20 percent of exports.

Samsung, Hyundai Motor, the ministry and industry associations also agreed to join efforts to respond to auto chips’ shortage on Thursday, the presidential office said in its statement without providing details.


Sudan PM hopes to settle $60bn foreign debt this year

Sudan PM hopes to settle $60bn foreign debt this year
Updated 13 May 2021

Sudan PM hopes to settle $60bn foreign debt this year

Sudan PM hopes to settle $60bn foreign debt this year
  • ADB arrears paid with $425 million loan from U.K., Sweden and Ireland
  • The Paris Club of major creditors make up around 38 percent of foreign debt

Khartoum: Prime Minister Abdalla Hamdok hopes Sudan can wipe out its staggering $60 billion foreign debt bill this year by securing relief and deals at an upcoming Paris conference that could bring much-needed investment.
The seasoned UN economist-turned-premier took office at the head of a transitional government shortly after the 2019 ouster of president Omar Al-Bashir whose three-decade iron-fisted rule was marked by economic hardship, deep internal conflicts, and biting international sanctions.
In the past two years, Hamdok and his government have pushed to rebuild the crippled economy and end Sudan’s international isolation.
“We have already settled the World Bank arrears, those of the African Development Bank, and in Paris, we will be settling the International Monetary Fund arrears,” Hamdok told AFP at his office in Khartoum.
Arrears due to the African Development Bank were cleared through a bridging loan worth $425 million from Sweden, Britain and Ireland, while debts to the World Bank were paid off with a $1.1 billion bridging loan from the US.
“Paris also is home to the Paris Club, our biggest creditors... and we will be discussing debt relief with them,” Hamdok said.
Sudan’s debts to the Paris Club, which includes major creditor countries, is estimated to make up around 38 percent of its total $60 billion foreign debt.
Hamdok and top Sudanese officials will be attending Monday’s Paris conference along with by French President Emmanuel Macron, and World Bank and IMF representatives.
The aim is to draw investments to Sudan including in the energy, infrastructure, agriculture and telecommunications sectors.
“We are going to the Paris conference to let foreign investors explore the opportunities for investing in Sudan,” Hamdok said.
“We are not looking for grants or donations.”
Sudan was taken off Washington’s blacklist of state sponsors of terrorism in December, removing a major hurdle to foreign investment.
The government has also embarked on tough measures including subsidy cuts and introducing a managed currency float to qualify for an IMF debt relief program.
Though widely unpopular, the premier says the measures were necessary to move toward debt relief “by the end of the year.”
But many challenges still lie ahead.
His government has been pushing to forge peace with rebel groups to end conflicts in far-flung regions.
In October, it signed a landmark peace deal with rebels from the western region of Darfur as well the southern states of South Kordofan and Blue Nile.
Only two groups including one which wields substantial power in Darfur refused to sign the deal.
To Hamdok, the peace deal represents “50 percent on the road to peace.”
Efforts are underway to sign deals with the remaining groups, and talks with a faction of the Sudan People’s Liberation Movement-North (SPLM-N) are slated for later this month.
Hamdok acknowledged the slow pace of implementing the peace deal, but said Sudan is “steadily moving forward.”
In February, Sudan appointed three ex-rebels to the ruling sovereign council and announced a new transitional cabinet including seven ex-rebels.
“We have come a long way... and in my view the second stage of talks will go much faster.”
Simmering tensions with neighboring Ethiopia over a fertile border region and a gigantic dam on the Blue Nile pose another challenge.


UK medical tech firm reveals Saudi expansion plans

UK medical tech firm reveals Saudi expansion plans
Updated 13 May 2021

UK medical tech firm reveals Saudi expansion plans

UK medical tech firm reveals Saudi expansion plans
  • Nemaura Medical has developed a diabetes-tracking wearable device
  • Product launches are planned for Germany, the UAE, and Saudi Arabia

RIYADH: A British medical technology company behind an innovative diabetes monitoring system has identified Saudi Arabia as one of its key target markets.

Nemaura Medical has developed a wearables device which can help diabetics track their blood glucose levels, and the Kingdom is high on the firm’s international expansion plans list.

Its sugarBEAT continuous glucose monitoring (CGM) product was recently launched in the UK and is targeted at people suffering from conditions such as diabetes who want a needle-free alternative.

Initially the company recorded orders of 200,000 sugarBEAT sensors in the UK and has forecast total sales of 2.1 million this year.

Following positive feedback in the UK, it has announced plans to expand internationally and is lining up product launches in Germany, the UAE, and Saudi Arabia.

Dr. Faz Chowdhury, the chief executive officer of Nemaura Medical, said: “We believe our technology is ground-breaking and represents a paradigm shift in the way people with diabetes can manage their condition.

“We believe we have a critical first-mover advantage with a product that is easier to use, more flexible, and more cost-effective than existing technologies. We are not aware of any product of a similar nature in clinical studies or that has been submitted for regulatory approval.”

Nemaura Medical was founded in 2011 and recently expanded into the wearables market to develop and commercialize devices which can help to monitor chronic diseases and health conditions without the need for needles.

The CGM market is a growing sector and according to the Allied Market Research company will be worth around $9 billion by 2027.

The potential market for devices such as sugerBEAT in the Middle East and North Africa (MENA) region is considered strong with data from the International Diabetes Federation (IDF) showing more than 39 million 20 to 79-year-olds in the region having the condition in 2019. The figure is expected to increase to 108 million by 2045.

The IDF has estimated that in Saudi Arabia 15 percent of the adult population has diabetes.