The Paris Airshow is the most important event of the year that finds itself at the 52nd edition. It dedicates seven days to the world of aviation. This edition had its two stars, Boeing and Airbus, in the center of attention as usual. However, there were other new topics opened that are ardent for the year of 2017. One of them is enabling the air traffic control privatization.

The Air Traffic Control Privatization Is One Congressional Vote Away

On Monday, U.S. Transportation Secretary Elaine Chao claimed that this long-awaited transition is going to take place slowly yet under safest conditions for all passengers. Chao was the official representative who was invited to the Paris Airshow to open the U.S. Pavillion. During her visit, she also mentioned the continuous efforts to support trading collaboration between the United States and France. This year, there were 387 companies from U.S. that registered their projects for exhibition.

One of the most sensitive topics that Chao debated during this event was the future of the U.S. air traffic control. According to her, there is going to be a transition of such responsibilities to a third non-profit party. This privatization process would not, however, affect the safety of this industry. On the contrary, the reason why authorities planned for this mobilization is to secure all passengers an improved flying experience.

“We want to do this in a deliberative and thoughtful way.”

U.S. Officials Visited Canadian Air Control Systems for Inspiration

The whole project is now waiting for the vote of the U.S. Congress. Once this proposal receives the needed approval, authorities will be ready to start works. They have three years at their disposal to ensure a successful air traffic control privatization. However, if this timeframe is not enough, they can still request a prolonged deadline.

This project together with infrastructure investments represents top priorities for Trump administration. An adviser to Chao, Michael Britt, claimed that 30 U.S. lawmakers visited the Canadian air traffic control providers. This visit might give away the fact that they are taking the Canadian system as a model for their plans.

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Since the beginning of 2017, Time Inc. was weighing in the idea of being sold to Meredith Corp. However, things changed on April 28 when the board of executives decided to turn the offer down. Instead, they focused on finding as many methods as possible to grow their company once again. Nonetheless, this goal asks for its sacrifices. The company will go through a restructuring period where around 300 worldwide colleagues will leave Time Inc.

Almost 40% of Worldwide Colleagues Accepted Their Resignation Voluntarily

Chief Executive Officer Rich Batista announced the board’s decision through an internal message. The text explained that the current situation could not lead to growth without a turnaround strategy. They need to redirect most resources towards business expansion and nothing else.

“Today we took a difficult but necessary step in that plan.”

According to the latest annual report, the company has a total of 7,450 global employees. This means that the job cuts are going to represent 4% of the total Time workforce. On the other hand, it remains unknown which sectors within the organization are going to feel most of the impact of this reduction strategy. However, there are signs that IPC magazine group, the Tampa, and editorial sector in New York are going to suffer most of the hits.

Almost 40% of the job eliminations have been done voluntarily. This batch of worldwide colleagues accepted the buyout packages on their own accord. However, the other necessary job cuts will have no other choice than to resort to layoff announcements.

Time Inc. Is Activating in a Dying Industry

The company is one of the large group of businesses that are struggling for survival in a dying industry of the printing press. Much of the company’s budget heads towards Google Adwords and Facebook online advertising channels. The changes Time had to make didn’t affect low-tier employees. On the contrary, the organization decided replacements at the level of senior management in recent months. Time Inc. hopes a fresh leadership will sync it to modern trends.

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The music streaming service Pandora admitted earlier this week that it was weighing in an idea for a minority stake purchase. The interested party in this transaction remained anonymous until multiple negotiations between Pandora and Sirius XM gave the deal away. Last meetings opened up the subject of a $150 million investment from KKR. However, Pandora asked for an extension of the deal deadline.

Pandora Postponed Minority Stake Acquisition Presumably to Explore a Sirius XM Negotiation

On Thursday morning, Pandora announced that it is going to postpone the $150 million transaction for a minority stake. The explanation that accompanied the statement referred to the company’s wish to consider better the implications of such a major business decision. Last month, Pandora agreed on a KKR investment. However, the private equity fund gave the streaming service only 30 days at its disposal to explore the opportunity.

While all evidence points at Sirius XM as being the sole interested party in this event, CFO David Frear denied these claims. As of recently, he informed his stakeholders that there are low chances for such a transaction to take place. Nonetheless, the recent postponing of Pandora’s KKR investment might hide a different story.

If Pandora Refuses KKR Proposition, the Company Will Pay $15 Million

Sirius XM might not have come up with a clear offer, yet media agencies reported that the company was looking into a private equity investment in Pandora. There are no official numbers to confirm the real value of such a proposition. However, Sirius might consider offering a similar or even equal investment to that coming from KKR.

On the other hand, Pandora might not have such a free saying in this situation. If the deal between the music streaming service and KKR falls, the company will be obliged to pay KKR $15 million as compensation. However, analysts are considering the pairing between Pandora and Sirius XM a fortunate one. The two of them can greatly benefit from each other. Pandora would receive a much-needed support for its subscriber base while Sirius will gain entrance to a new influential market.

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Over the past two years, the background for oil industry was dissuaded by the recession. Numerous small cities whose entire welfare depended on oil production reached a point of bankruptcy. Once producers hit dead ends, they would drag the town economy down with them. On the other hand, some small U.S. cities managed to withstand these hardships. Occidental Petroleum Corp. together with other such businesses resorted to traditional oil production for a simple yet effective solution.

The Traditional Oil Production Technique Recycles Carbon Emissions

Occidental Petroleum Corp together with other oil wells near the border of New Mexico managed to survive the two-year-old recession. Their strategy was based mostly on a traditional oil production technique. This way, they were able to keep carbon emissions at low levels while improving the production at the same time.

This business saving drilling method relies on recycling the carbon dioxide that power plants emit. Such emissions are then redirected back to the fields. Besides rendering the environment cleaner nearby oil wells, this move puts more pressure underground. In the end, there is more oil than usual rising to the surface.

This traditional oil production technique would work perfectly with all oilfields in the United States. However, the Congress has to give its consent for this measure to take national proportions. Nonetheless, this method aligns with the ambitions of Trump administration to improve coal industry.

This work method is part of the enhanced oil recovery (EOR) collection of strategies. These efficient strategies have the goal to extend the lifespan of oil wells as much as possible. At the same time, they can boost output by 450,000 extra barrels per day. It was an energy consultancy, Advanced Resources International, which measured this spectacular production supplement.

EOR Strategies Can Improve Production as Much as 60%

Usually, a company can extract around 10% from a reservoir based on fact checks conducted by the Department of Energy. On the other hand, the ideas that are introduced in EOR collection can leverage the production between 30% and 60% of a reservoir.

Therefore, Occidental Petroleum Corp managed to take advantage of this production boost and overcome the last downturn. Moreover, executives invested the profits from carbon business into shale business. These two areas work hand in hand, which saves executives from difficult business transitions.

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Choosing a good period of buying a new house has always looked like the stock market. Consumers have to check the history of this industry and other indices to determine the appropriate time to plan the acquisition. A new report showed a continuous ascension of American home prices throughout the month of May. There are more data that describe the evolution of this branch.

The High Home Prices Reflect a Shortage of Available Estates

On Tuesday, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index released a new report on the situation of home prices in America. The month of March recorded a 5.8% annual gain for this domain. By comparison, February reported a 5.7% increase. By taking a glimpse into the evolution of the real estate industry over the past few years, data show a 33-month high gain.

This expensive boom generates more discomfort to home buyers than meets the eye. The causes behind these price increases are revealing a concerning issue. The United States is going through a shortage of existing and new homes. On the other hand, the labor market is experiencing an income growth. This more stable financial status encourages Americans to take this important step and purchase their very first house or trade their existing one with a better location.

The chief economist at Zillow, Svenda Gudell, claimed that this industry is trapped between two extreme factors. While there are many citizens willing to move in a new home, the market has fewer options than before. This forces the industry to set up high home prices.

“Home buyer demand is sky high, inventory levels are near rock-bottom, and home prices keep rising.”

New York Recorded the Smallest Gain

Judging by the past performances, S&P Case-Schiller reached the consensus that each month the national index climbs 0.3% seasonally adjusted. At the same time, the 10- and 2-city indices rise 0.9%. Out of the total of 20, 17 urban areas announced increases each month after seasonal adjustment.

As far as the 20 representative metro areas are concerned, half of them reached increased indexes by more than 6%. Seattle, Portland, and Dallas are on the top of the list with year-over-year gains of 12.3%, 9.2%, and 8.6% respectively. New York finds itself at the other pole with the smallest gain of 4.1%.

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Deutsche Bank wants to rebuild its reputation after the 2017 scandal regarding money laundering for Russia. The biggest lender in Germany considered that the best way to get out of this delicate situation is to urge the guilty parties to pay the consequences. In this case, the culprits are former executives while the aftermath is a $425 million fine coming from America and £163 million fine issued by the United Kingdom.

Deutsche Bank Shareholders Were Promised Collective Responsibility

On Thursday, Chairman Paul Achleitner rest shareholders assured that the professionals who were involved in their recent scandal would have to respect an agreement and pay for their misconduct. The chairman made this point clear during the annual general meeting on behalf of Deutsche Bank in Frankfurt. This notice involves even top leaders who had an active part in the illegality that triggered for the company a multi-million fine.

However, no one named the concerned former executives. Nonetheless, the German bank still has to finish up some legal details before pointing fingers. Achleitner mentioned that the company has to decide whether or not it has the legal frame to hold former employees accountable for their work actions. The board expects to reach a conclusion in the following months.

Former Executives Misconduct Disobeyed Company’s Interests

The current CEO, John Cryan, stated that former executives’ main misconduct was prizing short-term revenue above long-term interests of the company itself. The financial organization had its earnings impaired for two years in a row because of business misconduct. The company had to cover a January settlement with the United States valued at $7.2 billion.

As such, Deutsche Bank gave an explanation to its shareholders on why the organization was slow on answering these recent charges. The board is still assessing the legal terms that would otherwise allow them to call for collective responsibility. While there were no names mentioned during the annual meeting, there are around ten former executives who fit the description. Some of them are Josef Ackermann, Anshu Jain, and Juergen Fitschen.

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