drags

The agency made the announcement as it confronts staffing shortages caused by air traffic controllers who are working unpaid.

The United States Federal Aviation Administration (FAA) will reduce air traffic by 10 percent across 40 “high-volume” markets beginning Friday morning to maintain safety during the ongoing government shutdown, it has said.

The agency made the announcement on Wednesday as it confronts staffing shortages caused by air traffic controllers, who are working unpaid, with some calling out of work during the shutdown, resulting in delays across the country.

FAA Administrator Bryan Bedford said the agency is not going to wait for a problem to act, saying the shutdown is causing staffing pressures and “we can’t ignore it”.

Bedford and Transportation Secretary Sean Duffy said they will meet later Wednesday with airline leaders to figure out how to safely implement the reduction.

Widespread delays

The shutdown, now in its 36th day, has forced 13,000 air traffic controllers and 50,000 Transportation Security Administration officers to work without pay. This has worsened staff shortages, caused widespread flight delays and extended lines at airport security screening.

The move is aimed at taking pressure off air traffic controllers. The FAA also warned that it could add more flight restrictions after Friday if further air traffic issues emerge.

Duffy had warned on Tuesday that if the federal government shutdown continued another week, it could lead to “mass chaos” and force him to close some of the national airspace to air traffic, a drastic move that could upend American aviation.

Airlines have repeatedly urged an end to the shutdown, citing aviation safety risks.

Shares of major airlines, including United Airlines and American Airlines, were down about 1 percent in extended trading.

An airline industry group estimated that more than 3.2 million passengers have been affected by flight delays or cancellations due to rising air traffic controller absences since the shutdown began on October 1. Airlines have been raising concerns with lawmakers about the impact on operations.

Airlines said the shutdown has not significantly affected their business, but have warned bookings could drop if it drags on. More than 2,100 flights were delayed on Wednesday.

On Tuesday, FAA’s Bedford said that 20 percent to 40 percent of controllers at the agency’s 30 largest airports were failing to show up for work.

The federal government has mostly closed as Republicans and Democrats are locked in a standoff in Congress over a funding bill. Democrats have insisted they would not approve a plan that does not extend health insurance subsidies, while Republicans have rejected that.

More air traffic controllers are calling in sick, often to work another job to pay for groceries and medicines.

United States air traffic controllers will miss their paycheques because of the ongoing government shutdown, raising concerns that mounting financial stress could take a toll on the already understaffed employees who guide thousands of flights each day.

Paycheques were due on Tuesday.

Flight delays are becoming more common across the country as more controllers call out sick because the Federal Aviation Administration (FAA) was already so short on controllers before the shutdown.

Transportation Secretary Sean Duffy and National Air Traffic Controllers Association President Nick Daniels have continued to emphasise the pressure that controllers are feeling. They say the problems are likely to only get worse the longer the shutdown continues.

Not only are controllers worrying about how to pay for their mortgages and groceries, but Daniels said some of them are also grappling with how to pay for the medicine needed to keep their children alive.

Duffy said he heard from one controller who had to tell his daughter she couldn’t join the travelling volleyball team she had earned a spot on because he couldn’t afford the cost during the shutdown.

“Air traffic controllers have to have 100 percent of focus 100 percent of the time,” Daniels said Tuesday at a news conference alongside Duffy at LaGuardia Airport in New York City. “And I’m watching air traffic controllers going to work. I’m getting the stories. They’re worried about paying for medicine for their daughter. I got a message from a controller that said, ‘I’m running out of money. And if she doesn’t get the medicine she needs, she dies. That’s the end.’”

The FAA restricts the number of flights landing and taking off at an airport anytime there is a shortage of controllers to ensure safety. Most of the time, that has meant delays — sometimes hours long — at airports like New Jersey’s Newark Liberty International Airport or Burbank Airport in California. But over the weekend, Los Angeles International Airport actually had to stop all flights for nearly two hours.

Controllers are planning to assemble outside at least 17 airports nationwide on Tuesday to hand out leaflets urging an end to the shutdown as soon as possible.

Money worries

The number of controllers calling in sick has increased during the shutdown – both because of their frustration with the situation and because controllers need the time off to work second jobs instead of continuing to work six days a week, as many of them routinely do. Duffy has said that controllers could be fired if they abuse their sick time, but the vast majority of them have continued to show up for work every day.

Air traffic controller Joe Segretto, who works at a regional radar facility that directs planes in and out of airports in the New York area, said morale is suffering as controllers worry more about money.

“The pressure is real,” Segretto said. “We have people trying to keep these planes safe. We have trainees — who are trying to learn a new job that is very fast-paced, very stressful, very complex — now having to worry about how they’re going to pay bills.”

Duffy said the shutdown is also making it harder for the government to reduce the longstanding shortage of about 3,000 controllers. He said that some students have dropped out of the air traffic controller academy in Oklahoma City, and younger controllers who are still training to do the job might abandon the career because they can’t afford to go without pay.

“This shutdown is making it harder for me to accomplish those goals,” Duffy said.

The longer the 27-day shutdown continues, the more pressure will continue to build on the US Congress to reach an agreement to reopen the government. During the 35-day shutdown in President Donald Trump’s first term, the disruptions to flights across the country contributed to the end of that disruption. But so far, Democrats and Republicans have shown little sign of reaching a deal to fund the government.

Published on
22/10/2025 – 14:33 GMT+2

Italian banking group UniCredit has delivered a robust third quarter, underscoring its position as one of Europe’s stronger lenders.

“UniCredit delivered yet another set of record results, with net revenues up 1.2% and costs down 0.1% versus last year,” said CEO Andrea Orcel in a statement.

Net profit came in at €2.6 billion in the third quarter, up 4.7% year-on-year, and above a company estimate of €2.4bn.

Over the first nine months of the year, the bank’s net profits rose by 12.9% to €8.7bn.

“These results reflect disciplined execution, and I am confident that we will continue to build sustainable value for all stakeholders,” said Orcel.

UniCredit also reaffirmed full-year 2025 net profit guidance at €10.5bn and said it planned to distribute at least €9.5bn to shareholders.

Why this matters

In a European banking sector facing low growth, investor pressure, and regulatory hurdles, the results are significant for several reasons.

First, UniCredit’s combination of revenue growth, cost control, and low credit impairments suggests a resilience not always seen among its peers.

Second, the reaffirmation of strong guidance signals management confidence in execution through to year-end despite macroeconomic uncertainties in European and global markets.

Thirdly, the capital position and shareholder-return commitments indicate that the bank is in a position to manage risk and reward investors.

Europe’s banks are navigating reduced margins, regulatory costs, and lacklustre loan demand. Against that backdrop, UniCredit’s cost-income ratio of 37% in the quarter is a standout.

The lender also noted that its medium-term ambitions remain unchanged, standing by a net profit target of above €11 billion for the full-year 2027.

What to watch

Key to delivery will be how UniCredit handles a potential slowdown in areas such as net interest income, which fell 5.4% year-on-year in the quarter, and how it sustains its cost-efficiency edge.

The impact of wider economic weakness in Italy, Germany, and Central and Eastern Europe, all countries with strong UniCredit presence, remains a risk.

Additionally, conversion of its medium-term plans into reality will require continued disciplined execution. This is especially the case as the bank pursues strategic initiatives such as life insurance policy changes in Italy and its takeover of Commerzbank.

UniCredit has built a 26% stake in the German lender over the last year, although Orcel’s advances are facing fierce opposition from the government in Berlin.

By&nbspAP with Doloresz Katanich

Published on
09/10/2025 – 16:44 GMT+2

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Traders on Wall Street showed caution on Thursday morning although US stocks continue to hover near their record highs.

The S&P 500 rose 0.1% in the first few minutes of trading on Thursday, before slipping 0.35%. The index is coming off its eighth gain in the last nine days.

The Dow Jones Industrial Average fell 0.41%, and the Nasdaq Composite dropped 0.43%, following a tech rally that kept US markets in a good mood over recent weeks. On Wednesday, AI chip giant Nvidia and the tech-heavy Nasdaq index both hit new records.

However, the rally has been increasingly accompanied by a growing chorus of concerns that AI-related investments are overpriced. On Wednesday, the Bank of England and the IMF both issued warnings about growing risks of an AI-led market bubble bursting. The announcements add to the current uncertainty due to the shutdown in the US, among others.

“Concerns around excessive valuations, elevated levels of government borrowing, uncertain economic growth, and political turbulence are omnipresent,” said Russ Mould, investment director at AJ Bell.

“There are a multitude of factors that could trigger a market pullback, but for now, it is another day where there are more bulls than bears.”

In other corporate news, Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, on Thursday reported its third-quarter revenue climbed 30% year-on-year, beating market forecasts.

“There is no real sign of a slowdown in AI-driven demand in the latest numbers from TSMC,” Mould said. “The chip manufacturing giant may have seen a slight easing in demand month-on-month, but year-on-year the levels of growth are still impressive for a company of its size.”

Shutdown weighs on the market sentiment

Trading has been relatively muted recently following the US government’s latest shutdown. The closure is delaying the release of several major economic reports that usually move the market. Stocks have been drifting without them or other signals to change expectations for cuts to interest rates by the Federal Reserve, one of the major reasons the stock market has been on a tear since April.

Oil prices fell after Israel and Hamas agreed Wednesday to pause fighting in Gaza so that the remaining hostages there can be freed in the coming days in exchange for Palestinian prisoners.

The acceptance of elements of a plan put forward by the Trump administration represents the biggest breakthrough in months in the devastating two-year war.

US benchmark crude dipped 21 cents to $62.34 per barrel. Brent crude, the international standard, edged down 18 cents to $66.07 per barrel.

Gold shed some of its stellar gains but was still at $4,054.50 per ounce as of Thursday morning in the US.

Corporate news fuelling the trade

PepsiCo shares inched up over 1% on Thursday after the snack and beverage giant reported better-than-expected revenue in the third quarter despite weaker demand for its snacks and drinks in North America.

PepsiCo’s net income fell 11% to $2.6 billion (€2.24bn), but adjusted for one-time items, the company earned $2.29 per share, beating analysts’ forecasts by 3 cents.

Delta Air Lines easily topped Wall Street expectations for third-quarter profit. Delta expects recent momentum to carry through the end of the year and forecasts full-year profit of $6 per share, in the upper half of its previous guidance range. Delta shares rose 5.8% in premarket, lifting other major airlines’ shares along with it. United rose 3.9% and American jumped 4.9%.

Danish pharmaceutical company Novo Nordisk, the maker of weight-loss drug Wegovy, announced that it was acquiring San Francisco’s Akero Therapeutics for $4.7bn (€4.05bn) in cash.

Meanwhile, Ferrari saw its shares lose more than 13.8% after the Italian luxury sports carmaker offered a cautious earnings forecast on Thursday.

European sentiment remains mixed

Elsewhere, European markets opened in a mixed mood as traders weighed the details of the Israel–Hamas peace deal and mounting concerns over an AI bubble, with corporate updates, the looming US shutdown, and France’s political turmoil humming in the background.

Germany’s DAX added 0.28% while France’s CAC 40 was mostly flat. Britain’s FTSE 100 fell 0.29%.

Media giant Paramount Global is trying to avoid a streaming future without Cartman, Stan, Kyle and Kenny.

As Paramount struggles to complete a key merger, the company is in the midst of a protracted negotiation to extend one of its biggest and most important franchises: the long-running foulmouthed cartoon “South Park.”

Paramount’s $900-million overall deal with “South Park” creators Matt Stone and Trey Parker doesn’t expire for another two years. New episodes run first on Paramount’s basic cable network Comedy Central.

But efforts to renew that venture and bring the show to the Paramount+ streaming service have hit a major snag, according to three people familiar with the discussions who were not authorized to speak publicly.

The situation highlights deep tensions and disagreements as a trio of executives try to manage Paramount until the company’s sale to David Ellison’s Skydance Media, which has the right to approve or deny large deals such as the “South Park” pact under covenants made with Paramount.

Paramount leaders are desperate to lock down “South Park’s” streaming rights in the U.S. and abroad. They’ve long been frustrated by a licensing arrangement made six years ago by the previous regime that sent “South Park” to rival HBO Max, owned by Warner Bros. Discovery. That deal expires this month.

“South Park” is one of Paramount’s most important shows. Along with “The Daily Show With Jon Stewart,” the four boys and their celebrity-skewering ways put Comedy Central on the map for basic cable viewers, taking on hot-button issues from Scientology and the War on Terror to the royal family and the Trump administration.

During a May earnings call, Paramount co-Chief Executive Chris McCarthy — who runs Paramount’s media networks as well as Showtime and MTV Entertainment Studios — told investors that “South Park” episodes would begin streaming on Paramount+ in July.

However, Paramount hasn’t nailed down the streaming rights to “South Park,” according to the three people familiar with the conversations. Since earlier this year, Paramount has made at least one offer to Parker and Stone as an early extension of their overall deal.

The company also wants to secure rights to stream the 333 episodes of “South Park” on Paramount+.

Some of the knowledgeable people expect “South Park” distribution fees to be valued at more than $200 million a year.

But Skydance hasn’t signed off, believing the deals to be too rich, according to the sources. Paramount executives believe the show is worth the big bucks, given the show’s enduring popularity and legacy.

Representatives for Paramount and Skydance declined to comment.

Hollywood agent Ari Emanuel, whose firm WME represents Parker and Stone, defended Paramount and Skydance’s handling of the situation on Friday by phone.

“Nobody has rejected anything. They are just doing their analysis,” Emanuel told The Times in a brief interview. “We’ve got offers from other distributors. Everybody wants this show.”

Skydance’s $8-billion takeover of Paramount has been in a holding pattern for months as the two companies wait for federal regulators’ approval. Skydance, backed by tech mogul Larry Ellison and RedBird Capital Partners, is eager to take over the storied media company.

They intend to bring increased financial rigor to Paramount’s operations, other sources have said. Paramount and Skydance have told Wall Street the deal will bring $2 billion in cost savings, with half of that coming in the first year.

Deadlines are looming. The new season, the program’s 27th, is scheduled to debut July 9 on Comedy Central.

Unless Paramount strikes a deal with the creators by June 23, the company risks losing the franchise’s streaming rights because Parker and Stone could shop the show to other interested streamers, such as Netflix, Amazon Prime Video or Hulu. However, sources cautioned that negotiations could go past the June deadline and that the parties expect a deal to get done.

Represented by their longtime attorney Kevin Morris, who is leading the current negotiations, the duo carved out the internet rights nearly two decades ago. They formed a joint venture with Paramount (then known as Viacom) called South Park Digital Studios. That decision proved highly lucrative for Parker and Stone, also known for the hit Broadway musical “The Book of Mormon.”

Paramount runs the joint venture with Stone and Parker, sharing control of the streaming rights to the show that launched in 1997 on Comedy Central, although the duo can veto streaming deals they find unfavorable.

Companies are typically not supposed to wade too deeply into another firm’s affairs. Federal antitrust laws prohibit so-called gun-jumping, when an acquiring company begins calling the shots before a deal’s official closure. But Paramount agreed to accept Skydance’s input on big-ticket expenditures while the two sides wait for the deal to close.

The “South Park” streaming rights negotiations also have been complicated by a lawsuit brought two years ago by Warner Bros. Discovery. That company accused Paramount of violating terms of its 2019 licensing pact for “South Park,” after Warner paid about $540 million for the show’s streaming rights.

Paramount and the “South Park” creators developed specials featuring the four animated boys in a fictional Colorado mountain town to stream exclusively on Paramount+. Warner argued the move violated its licensing deal. HBO Max declined to comment.

Two years after the HBO Max deal, Paramount struck a new accord with Parker and Stone for $900 million, sealing their partnership and ensuring new episodes of “South Park” would be made. That deal runs to 2027, although Paramount executives have offered to extend that arrangement for several years.

Paramount has long intended to shift the show to Paramount+ as soon as the HBO Max deal expires.

The various parties have long envisioned a scenario where domestic and international rights would be shared by at least two different streaming services. Although neither partner would have exclusive rights, the current trend in television is for studios to maximize revenue to help pay for expensive programs, like “South Park,” while maintaining some streaming rights.

Paramount also has been dealing with another crisis that has been complicated by the Skydance merger. The company has sought to settle President Trump’s $20-billion lawsuit claiming subsidiary CBS News deceptively edited a “60 Minutes” interview with then-Vice President Kamala Harris, an allegation CBS denies.

Trump’s case hasn’t been resolved, and the Federal Communications Commission has been slow to review Skydance’s proposed takeover of Paramount, extending the deal review.

The Skydance transaction has been pending at the FCC since last fall, leaving Paramount executives in limbo.