The daily business briefing: July 19, 2022

Russia's Gazprom tells European customers it can't maintain gas supplies, Delta plans to buy 100 Boeing MAX 10 jets, and more

Gazprom
(Image credit: Kirill Kudryavtsev/AFP via Getty Images)

1. Gazprom tells European customers it can't guarantee gas supplies

Russia's Gazprom has told European customers it can't guarantee it will maintain their regular gas supplies under their current contracts, Reuters reported Monday, citing a copy of a letter it reviewed that was sent by the Russian state gas monopoly. Gazprom said the potential cutoff of gas was due to "extraordinary" circumstances, signaling a potential escalation of tensions between Europe and Moscow over Russia's invasion of Ukraine. In its July 14 letter, Gazprom said it was invoking a force majeure or "act of God" clause, a standard element of business contracts describing extreme circumstances that release a party in the contract from their legal obligations.

2. Delta to buy 100 Boeing 737 MAX 10 jets

Delta confirmed Monday it was ordering 100 Boeing 737 MAX 10 jets, its first major order with the aircraft maker in a decade. Delta has an option to buy 30 more of the planes. Mahendra Nair, the senior vice president at Delta responsible for its aircraft fleet, said at Britain's Farnborough Air Show that the commonality of the MAX 10 cockpit systems with other 737s was "the biggest factor that drove the decision" to make the purchase. Deliveries are scheduled to start in 2025. The order at list prices would be worth $13.5 billion, but airlines typically get discounts, particularly on such a large order. Delta said the deal would help it modernize its narrow-body fleet and capitalize on a rebound in travel after the coronavirus pandemic slump.

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The Seattle Times CNBC

3. Goldman Sachs revenue falls but profits beat expectations

Goldman Sachs said Monday that quarterly investment banking revenue fell 41 percent compared to a year earlier, but trading revenue rose 32 percent to $6.5 billion as investors placed trades across different asset classes. JPMorgan Chase & Co., Morgan Stanley, Citigroup, and Bank of America Corp. reported larger banking revenue declines, but also brought in more trading revenue. Goldman Sachs posted a second-quarter profit of $2.9 billion, or $7.73 a share, during the three months ending in June. That was down from $5.5 billion a year ago, but exceeded analysts' expectations of $6.61 a share. Goldman shares rose 2 percent in Monday afternoon trading.

The Wall Street Journal CNN

4. Stock futures edge higher as earnings season continues

Stock futures rose early Tuesday as earnings season continued. Futures tied to the Dow Jones Industrial Average were up 0.6 percent at 6 a.m. ET. S&P 500 and Nasdaq futures were up 0.7 percent. IBM shares fell more than 4 percent in after-hours trading after the tech company reported earnings and revenue that beat expectations but lowered its forecast for cash flow. The three main U.S. stock indexes rallied early Monday but reversed course and closed lower after Bloomberg News reported that Apple would cut hiring and spending on growth in 2023 as it braced for a possible recession. Apple shares fell 2.1 percent. The Dow fell 0.7 percent on Monday. The S&P and the tech-heavy Nasdaq dropped 0.8 percent.

CNBC

5. India's rupee hits a low against the dollar

The Indian rupee fell as low as 80.06 per dollar on Tuesday, touching a record low before rebounding slightly and rising 0.1 percent. The rupee has descended 7 percent this year as foreign investors pulled out of India's equities. They have sold nearly $30 billion so far this year. The record outflows reflect investor concerns about high oil and commodity prices, and India's deteriorating current-account deficit. India policymakers are trying to support the rupee and halt its fall, as the weakening of the country's currency adds to import costs and inflation pressures.

Bloomberg

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.