Carlsberg to buy Britvic for 1,315p per share Carlsberg will also buy out Marston's from brewing joint venture Danish brewer plans to create integrated beverage business in UK Shares in Carlsberg, Britvic, Marston's all rise July 8 (Reuters) - Carlsberg (CARLb.CO), opens new tab has agreed to buy British soft drinks maker Britvic (BVIC.L), opens new tab for 3.3 billion pounds ($4.23 billion), a move the Danish brewer said would forge a UK beverage "powerhouse" and that sent both companies' shares higher. Carlsberg clinched the takeover with a sweetened bid of 1,315 pence per share - comprising cash and a special dividend of 25 pence a share - after the British company rejected 1,250 pence per share last month. The acquisition will create value for shareholders, contribute to growth and forge a combined beer and soft drink company that is unique in the UK, CEO Jacob Aarup-Andersen told investors on a conference call. "With this transaction we are creating a UK powerhouse," he said. He brushed off concerns from some analysts about integration risks, saying Carlsberg has a strong track record of running beer and soft drink businesses in several markets. Soft drinks already make up 16% of Carlsberg's volumes. COST SAVINGS As drinkers in some markets ditch beer for spirits or cut back on drinking altogether, brewers have looked to broaden their portfolio into new categories like hard seltzer, canned cocktails and cider, as well as zero-alcohol brews. Britvic sells non-alcoholic drinks in Britain, Ireland, Brazil and other international markets such as France, the Middle East and Asia. Carlsberg said the deal will deliver a number of benefits, including cost and efficiency savings worth 100 million pounds ($128 million) over five years as it takes advantage of common procurement, production and distribution networks. It will also see Carlsberg take over Britvic's bottling agreement with PepsiCo (PEP.O), opens new tab. Carlsberg already bottles PepsiCo drinks in several markets and there is scope to add more geographies in future, Aarup-Andersen said. arlsberg halted share buy backs on Monday as a result of the deal. Chief financial officer Ulrica Fearn said these would resume once Carlsberg reaches its revised target for net debt of 2.5 times EBITDA, from 3.5 times currently - a goal it expects to meet in 2027. "Whilst this represents a shift in the strategy away from organic top- and bottom-line growth and consistent returns to shareholders, we view it as a relatively low risk transaction with attractive financials," Jefferies analysts said in a note. Carlsberg also said on Monday it will buy out UK pub group Marston's (MARS.L), opens new tab from a joint venture for 206 million pounds. That will give it full ownership of the newly formed Carlsberg Britvic after the deal. ($1 = 0.7805 pounds) Get the latest news and expert analysis about the state of the global economy with Reuters Econ World. Sign up here. Reporting by Stine Jacobsen, Yadarisa Shabong and Emma Rumney Editing by Sherry Jacob-Phillips, Rashmi Aich, David Goodman and David Evans

The returner of the Chang'e-6 lunar probe is opened during a ceremony at the China Academy of Space Technology under the China Aerospace Science and Technology Corporation in Beijing, capital of China, June 26, 2024. The returner of the Chang'e-6 lunar probe was opened at a ceremony in Beijing on Wednesday afternoon. During the ceremony at the China Academy of Space Technology under the China Aerospace Science and Technology Corporation, researchers opened the returner and examined key technical indicators. Photo: Xinhua As the US space industry recently faced yet more delays and stagnation with key components including manned spacecraft and space suits "going wrong," NASA has once again resorted to its "sour grapes" rhetoric upon seeing China's successful retrieval of fresh lunar soils from the far side of the moon, by claiming that China did not directly invite its scientists to participate in the lunar soil research. This behavior is a typical blame-shifting trick, Chinese experts said, noting it is clear to all that it is the US' own laws, not China, that are restricting space cooperation between the two sides. Instead of deceiving themselves by distorting the truth, the US should face up to its own problem of overall weakening engineering capability and the lack of long-term planning in its space industry. After the Chang'e-6 samples, weighing nearly 2 kilograms, were safely transported to a special laboratory for further study on Friday, NASA spokesperson Faith McKie told media that while China worked with the European Space Agency, France, Italy and Pakistan on this mission, "NASA wasn't invited to take part in the moon probe." NASA also didn't get "any direct invitation" to study China's moon rocks, after it welcomed all scientists from around the world to apply to study them, McKie told NatSec Daily. Responding to the remarks, Chinese Foreign Ministry spokesperson Mao Ning told the Global Times on Monday that China is open to having space exchanges with the US, and we also welcome countries around the world to take part in the study of lunar samples. "However, the US side seems to have forgotten to mention its domestic legislation such as the Wolf Amendment. The real question is whether US scientists and institutions are allowed by their own government to participate in cooperation with China," Mao said. "The existence of the Wolf Amendment has basically shut the door to space collaboration between the two countries," Wang Yanan, chief editor of Beijing-based Aerospace Knowledge magazine, told the Global Times on Monday. Even if research institutions of the US have the willingness to work with China on opportunities such as lunar sample research, institutions there must obtain special approval from the US Congress due to the presence of this amendment, Wang explained. Currently, no such "green light" is in sight from the Congress. Furthermore, China's collaboration with international partners is based on equality and mutual benefit, leveraging their respective scientific resources, facilities, and expertise. However, the US only wants what it doesn't have, and its engagement with China would be advantageous only to itself, Wang noted. NASA has found itself embroiled in a number of thorny issues recently, with the latest being Boeing's Starliner manned spaceship experiencing both helium leaks and thruster issues during a June 6 docking with the International Space Station (ISS), which led to an indefinite delay for its crew's return to Earth, despite NASA's insistence that they are not "stranded" in space. The return of the Starliner capsule, while has already been delayed by two weeks, will be put on hold "well into the summer" pending results of new thruster tests, which are scheduled to start Tuesday and will take approximately two weeks or even more, per NASA officials. Previously on June 24, NASA cancelled a spacewalk on the ISS following a "serious situation," when one of the spacesuits experienced coolant leak in the hatch. While being broadcast on a livestream, the astronauts reported "literally water everywhere" as they were preparing for the extravehicular activity, space.com reported. The report said that this is the second time this particular spacewalk was postponed, after a June 13 attempt with a different astronaut group was pushed back due to a "spacesuit discomfort." The recurring issues with the spacesuits are due to their much-extended service lifespan, media reported, as the puffy white ones US astronauts currently wear were designed more than 40 years ago. Despite the pressing need to replace them, NASA announced recently that it is abandoning a plan to develop next-generation spacesuits, which had been committed to be delivered by 2026, CNN reported on Thursday. One of the root causes for such problems is that the US has developed many large technology conglomerates, which for a long time have benefited significantly from government orders and industry monopolies. Consequently, in many complex engineering fields, the level of attention given is greatly insufficient, Wang noted. It also reflected the US' lack of long-term strategic planning for its manned space program. For instance, the ageing spacesuits should have been replaced a decade ago to ensure that operational suits remain in usable condition. Failure to address this issue results in a hindrance to the space station's necessary maintenance tasks and even poses life-threatening risks to astronauts in emergency situations, experts said. The issues with Boeing's spacecraft and the spacesuits are not isolated problems, but reflected a systemic issue in the US space industry - the overall weakening of engineering capabilities, they noted.

Japan and the Philippines signed an important defense agreement, and the two sides became "quasi-allies". On July 8, local time, Japan and the Philippines signed the "Reciprocal Access Agreement" in Manila. The agreement will relax restrictions on the movement of personnel between the Japanese Self-Defense Forces and the Philippine military during joint exercises, mutual visits and other operations in each other's countries. In response, Chinese Foreign Ministry spokesman Lin Jian responded at a regular press conference on the 8th that exchanges and cooperation between countries should not undermine mutual understanding and trust between regional countries, should not undermine regional peace and stability, and should not target third parties or undermine the interests of third parties. The Asia-Pacific region does not need military groups, let alone "small circles" that provoke camp confrontation and instigate a "new Cold War". Any actions that undermine peace and stability in the region and undermine unity and cooperation in the region will arouse the vigilance and common opposition of the people in the region. Japan and the Philippines upgraded to a "quasi-alliance" relationship On the same day, a "2+2" meeting attended by the foreign ministers and defense ministers of Japan and the Philippines was held in Manila. Japanese Defense Minister Minoru Kihara and Foreign Minister Yoko Kamikawa attended the talks with Philippine Defense Minister Gilbert Teodoro and Foreign Minister Enrique Manalo. This is the second Japan-Philippines "2+2" meeting. The last one was held in Tokyo in April 2022. Witnessed by Philippine President Marcos, the two sides signed the "Reciprocal Access Agreement". Marcos expressed the hope that the bilateral relations between the Philippines and Japan and the trilateral cooperation between the Philippines, Japan and the United States will be further deepened. The "Reciprocal Access Agreement" is also known as the "Military Visits Agreement". Military and defense cooperation between sovereign states, especially sending troops into each other's territory, usually faces complicated procedures and other problems. In order to simplify the procedures, the two countries will reach relevant agreements to simplify the approval procedures for the entry of troops from both sides into each other's countries, and facilitate mutual visits and joint military activities between the two countries' troops. The "Reciprocal Access Agreement" was born. Take the "Reciprocal Access Agreement" signed by Japan and Australia (full name "Agreement between Japan and Australia on Promoting Mutual Access and Cooperation Facilitation between the Japanese Self-Defense Forces and the Australian Defense Force") as an example. The agreement has 29 articles, covering many areas such as entry and exit procedures for troops, jurisdiction, taxation, cost burden and compensation. The key is to simplify the entry and exit procedures for visiting troops and their members, ships, aircraft, etc., relax restrictions on the transportation of weapons, ammunition and materials carried by visiting troops, and provide a legal basis for the two countries' troops and weapons and equipment to enter each other's territory. Japan and the Philippines signed the "Reciprocal Access Agreement", making the Philippines the third country to conclude this agreement with Japan after Australia and the United Kingdom. Cai Liang, Secretary-General and Researcher of the China-Japan Relations Research Center of the Shanghai Institute for International Studies, analyzed to The Paper (www.thepaper.cn) that Japan and the Philippines have their own strategic considerations for signing the "Reciprocal Access Agreement". As for the Philippines, due to its limited strength, it does not exclude any foreign power willing to strengthen military cooperation with the Philippines from intervening in the South China Sea situation. Therefore, it can be seen that in the past two years, the Philippines has actively promoted Australia, France, India and other countries to intervene in the South China Sea and strengthen military cooperation with them, involving intelligence, weapons and equipment, and training and exercises. "Japan's purpose is very simple. Strengthening military cooperation with the Philippines is to strategically balance China. The United States and the Philippines are allies, and the US-Japan alliance has been upgraded to a 'quasi-alliance'. The military cooperation between the United States, Japan and the Philippines has been upgraded to a new level." Cai Liang said, "The signing of an important defense agreement between Japan and the Philippines will make it easier for Japan to intervene in the South China Sea situation and seek the 'three seas linkage' of the East China Sea, the South China Sea, and the Taiwan Strait, in order to better respond to China's strategy and enhance its international influence." As for whether the signing of the "Reciprocal Access Agreement" means that Japan will deploy the Self-Defense Forces in the Philippines, Cai Liang pointed out that this agreement only simplifies the procedures for the troops of both sides to enter each other's territory, and is more suitable for short-term training, military exercises, etc., and is not a long-term deployment of the Self-Defense Forces in the Philippines. The two countries deepen military cooperation The Philippine presidential office also said in a statement that Japan is one of the four major strategic partners of the Philippines, and the two countries have established a strategic partnership for more than ten years. It seems no coincidence that Japan and the Philippines signed the "Reciprocal Access Agreement" at this time. Recently, China-Philippines relations have become tense around the situation in the South China Sea. The Global Times quoted Japan's Kyodo News Agency as saying that the two sides are seeking to strengthen cooperation against China. Minoru Kihara said last week: "The Philippines is located in a strategically important region, occupies a key position on Japan's sea lanes, and is also an ally of the United States. Joint training and strengthening cooperation with the Philippines are of great significance to the realization of a 'free and open Indo-Pacific region'." Cai Liang said that Japan's intervention in the South China Sea situation is mainly to reduce strategic pressure in the East China Sea and southwest of Japan, but it is not conducive to peace and stability in the South China Sea. It is reported that Japan and the Philippines began negotiations on the agreement in November last year. The signing of the "Reciprocal Access Agreement" by the two sides lays the foundation for the two countries to strengthen bilateral and even multilateral military cooperation in the future. The Japanese government intends to allow the Self-Defense Forces to formally participate in the annual US-Philippines "Shoulder to Shoulder" joint exercises around the Philippines after the agreement comes into effect. The Self-Defense Forces previously participated in the "Shoulder to Shoulder" exercises as observers, and will be able to formally participate after signing the agreement. In April this year, the United States and the Philippines held the largest "Shoulder to Shoulder" exercise to date, involving 5,000 Philippine personnel and 11,000 US personnel. The military exercise also included about 150 Australian military personnel and 100 French naval personnel. According to the plan, 14 countries including Japan and India sent personnel as observers. The "Typhon" medium-range missile launch system deployed by the US military on Luzon Island in the Philippines for the first time participated in the exercise, which aroused great attention from all walks of life. In terms of weapons and equipment exports, Japan and the Philippines have gradually strengthened military cooperation in recent years. The Philippines recently agreed to purchase five Coast Guard patrol ships from Japan to enhance its patrol capabilities in the South China Sea. Defense News reported in November last year that the Philippines had received an early warning radar system from Japan in 2023, the first major equipment transfer since the Japanese government lifted the postwar defense export ban in 2014. The Japanese Ministry of Foreign Affairs stated that Kamikawa mentioned topics such as defense equipment transfer, "government security capability enhancement support" (OSA), and economic and trade cooperation. The OSA project was created by the Kishida government and plans to allocate billions of yen in budget to assist the military construction of the Philippines and other countries, including providing the Philippines with 5 sets of coastal surveillance radars. Regarding Japan's relaxation of restrictions on defense equipment exports, the Chinese Ministry of Defense previously responded that Japan has continuously broken through the constraints of the "peace constitution" and the principle of "exclusive defense", and has been making small moves in the field of military security, which has aroused high vigilance and strong concern from the international community. China requires Japan to deeply reflect on its history of aggression, attach importance to the security concerns of its Asian neighbors, adhere to the path of peaceful development, and win the trust of its Asian neighbors and the international community with practical actions.

New York CNN — A record number of passengers are expected to pass through US airports this holiday travel week. You’d think this would be a great time to run an airline. You’d be wrong. Airlines face numerous problems, including higher costs, such as fuel, wages and interest rates. And problems at Boeing mean airlines have too few planes to expand routes to support a record numbers of flyers. Strong bookings can’t entirely offset that financial squeeze. The good news for passengers is they will be spared most of the problems hurting airlines’ bottom lines — at least in the near term. Airfares are driven far more by supply and demand, not their costs. But in the long run, the airlines’ difficulties could mean fewer airline routes, less passenger choice and ultimately a less pleasant flying experience. Profit squeeze Industry analysts expect airlines to report a drop of about $2 billion in profit, or 33%, when they report financial results for the April to June period this year. That would follow losses of nearly $800 million across the industry in the first quarter. Labor costs and jet fuel prices, the airlines’ two largest costs, are both sharply higher this year. Airline pilot unions just landed double-digit pay hikes to make up for years of stagnant wages; flight attendant unions now want comparable raises. Jet fuel prices are climbing because of higher demand in the summer. According to the International Air Transport Association’s jet fuel monitor, prices are up 1.4% in just the last week, and about 4% in the last month. Adding to the airlines’ problems is the crisis at Boeing, as well as the less-well-publicized problems with some of the jet engines on planes from rival Airbus. Since an Alaska Airlines Boeing 737 Max jet lost a door plug on a January 5 flight, leaving a gaping hole in the side of the plane 10 minutes after takeoff, the Federal Aviation Administration has limited how many jets Boeing can make over concerns about quality and safety. As a result, airlines have dramatically reduced plans to expand their fleets and replace older planes with more fuel efficient models. In some cases, airlines have asked pilots to take time off without pay, and carriers such as Southwest and United have announced pilot hiring freezes. In addition to the problems at Boeing, hundreds of the Airbus A220 and A320 family of jets globally have also been grounded for at least a month or more to deal with engine problems. Just about all the planes with those engines have been out of sevice for at least a few days to undergo examinations. And Airbus has also cut back the number of planes it expects to deliver to airlines this year because of supply chain problems. Problems for flyers For now, competition in the industry remains fierce: There are 6% more seats available this month compared to July of 2023, according to aviation analytics firm Cirium. And that’s helped to drive fares down — good news for passengers, but more bad news for airlines’ profits. Southwest announced in April that it would stop serving four airports to trim costs — Bellingham International Airport in Washington state, Cozumel International Airport in Mexico, Syracuse Hancock International Airport in New York and Houston’s George Bush Intercontinental Airport. Many more cities lost air service during the financial hard times of the pandemic. While upstart airlines are driving prices lower for travelers, those discount carriers might not survive long term. As the major carriers are making less money, many of the upstarts are flat-out losing money.

A look at the day ahead in U.S. and global markets from Mike Dolan After an intense month focused on election risk around the world, markets quickly switched back to the more prosaic matter of the cost of money - and whether disinflation is resuming to the extent it allows borrowing costs to finally fall. Thursday's U.S. consumer price update for June is the key moment of the week for many investors - with the headline rate expected to have fallen two tenths of a percentage point to 3.1% but with 'core' rates still stuck at 3.4%. With Federal Reserve chair Jerome Powell starting his two-pronged semi-annual congressional testimony later on Tuesday, the consensus CPI forecast probably reflects what the central bank thinks of the situation right now - encouraging but not there yet. But as the U.S. unemployment rate is now back above 4.0% for the first time since late 2021, markets may look for a more nuanced approach from the Fed chair that sees it increasingly wary of a sudden weakening of the labor market as real time quarterly GDP estimates ebb again to about 1.5%. There were some other reasons for Fed optimism in the lead up to the testimony. The path U.S. inflation is expected to follow over coming years generally softened in June, amid retreating projections of price increases for a wide array of consumer goods and services, a New York Fed survey showed on Monday. Inflation a year from now was seen at 3% as of June - down from the expected rise of 3.2% in May - and five-year expectations fell to 2.8% from 3%. Crude oil prices are better behaved this week, too, falling more than 3% from the 10-week highs hit late last week and halving the annual oil price gain to 10%. The losses on Tuesday came after a hurricane that hit a key U.S. oil-producing hub in Texas caused less damage than many in markets had expected - easing concerns over supply disruption. Before Powell starts speaking later, there will also be an update on U.S. small business confidence for last month.