Saudi Aramco is by far the most profitable company in the world, according to financial data disclosed by the state-run oil giant in Saudi Arabia.
The company made a whopping $111 billion in 2018, the data show. By comparison, Apple made $59.53 billion in fiscal 2018.
Saudi Aramco made its financial information available in a prospectus for a $10 billion bond sale, which the company plans to use to finance a nearly $70 billion stake in Saudi Arabia's petrochemicals company.
Despite Aramco's massive earnings, the company did not receive the top credit rating from agencies like Moody's as its heavy dependence on the country's economy could be a headwind for the company. Moody's issued an A1 rating for Aramco. Company's like Chevron and Exxon Mobil have ratings of Aa2 and Aaa, which are higher than Aramco's.
"Saudi Aramco has a proven track record of implementing large scale projects and has over the past decade significantly increased hydrocarbon production and refining capacity," Rehan Akbar, senior credit officer at Moody's, said in a note. "At the same time, credit linkages to the government of Saudi Arabia (A1 stable; A1 foreign currency ceiling) are significant, and result in our decision to constrain Aramco's rating to that of the government."
"Aramco is wholly-owned by the state and is expected to remain largely under government ownership even after any potential IPO in the future," Akbar added. "While there is a clear track record of Aramco having been run as a commercially independent company, the government's budget is highly reliant upon contributions from Aramco in the form of royalties, taxes and dividends."
—CNBC's Tom DiChristopher and Reuters contributed to this report.
The Impossible Burger is coming to Burger King as the Impossible Whopper, in a market test that could lead to the largest restaurant industry embrace yet of a plant-based meat substitute.
The Impossible Whopper will feature the same bun, cheese and condiments as a traditional Whopper, but with Impossible's plant-based patty where animal meat is normally found. Fifty-nine Burger King stores in the St. Louis area will offer it as of April 1, with a potential expansion to the other 7,100 US restaurants later in the year.
While the partnership is debuting on April Fools' Day, it's no joke. Burger King is making an unusually high-profile endorsement of plant-based meat, while Impossible is facing its own Tesla Model 3 moment in terms of going mainstream.
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I got a jump on the debut when I arrived at Impossible's Silicon Valley headquarters carrying two bags of Whoppers from the local Burger King. There, J. Michael Melton, Impossible's technical sales and culinary manager, cooked up a batch of the patties they're supplying to Burger King, using the same broiler Burger King uses. He swapped them in for the beef in the Whoppers (with professional dexterity that somehow left the burgers appealing) and I took a couple bites.
The remarkable thing was how unremarkable they were: Nothing gives away the fact that this Whopper contains a different main ingredient.
The patties supplied to Burger King will be based on Impossible's new 2.0 formulation that was announced at CES in January, 2019. Among other upgrades, this formulation holds up better in restaurant environments like hot holding trays or the 6-inch drop at the end of the conveyor that grills the patty for exactly 2 minutes and 35 seconds at 630 degrees.
"We're making meat from plants. That's never been done before," Impossible Foods founder Pat Brown told me, tacitly demoting competitor Beyond Meat's plant-based burger. "People have made plant-based replacements for meat, but they haven't made plant-based meat."
On the left is the Impossible Whopper we hacked in Impossible's test kitchen. On the right, a traditional Whopper, indistinguishable visually and on the palate.
Brian Cooley/CNET
One way the Impossible Whopper will indeed differ from the original is price, costing a significant dollar more in an industry where brands have gone to war brandishing menus of items that only cost a dollar. As with electric cars, price parity with the established choice is a future linchpin to mainstream success.
"Once we have products that taste the same or better and that cost less, plant-based and clean meat will simply take over," according to Bruce Friedrich, executive director of the Good Food Institute, which champions plant- and cell-based meats. "So very little will change in people's everyday lives as more and more meat is produced either from plants or from cells. Consumers will continue to buy burgers, chicken sandwiches, and sausages (but) those products will simply not have the adverse impact on our environment and global health."
Impossible says its team spent an inordinate amount of time getting its burger to survive the "death-defying drop" at the end of the broiler-conveyor without breaking apart.
Brian Cooley/CNET
Burger King doesn't break out sales figures for Whoppers, let alone its expectations for the more expensive Impossible Whopper, but some insights can be inferred from a 2018 survey by Faunalytics. Assuming price was no different between beef and alternative burgers, 65 percent of consumers polled said they would still stick with beef, 21 percent would choose a plant-based burger like Impossible, and 11 percent would select a cultured burger grown from animal cells, which isn't expected on the market until the early 2020s.
But Impossible's Pat Brown feels such surveys leave out the qualitative experience. "If you give them our burger, and then ask them the question again, a very large majority of them say they would definitely buy it and would be willing to pay a premium for it."
A case of Impossible Whopper patties, the result of a long effort to comport to the realities of the fast food industry, not the other way around.
Brian Cooley/CNET
Acceptance of plant-based meats turns not only on taste, texture and price but on overcoming momentum. Environmental and animal welfare arguments have triggered a million conversations and social media posts about meat's issues, yet US per capita meat consumption hit an all-time high in 2018.
A recent consumer survey also found that concern for personal health handily trumped concern about the environment and animals as a driver of plant-based meat choice. "We need to change the meat, because we aren't going to change human nature," Friedrich said in a recent New York Times profile.
Launching the Impossible Whopper in Missouri, rather than in one of California's crunchy kale enclaves, is jumping right in, given that Missouri is the first state to make it a crime to use the word "meat" to label a product that "is not derived from harvested production livestock or poultry," with up to a $1,000 fine and a year in prison. But the 62-year-old "Whopper" brand is sufficiently synonymous with beefiness that the Impossible version should communicate meatiness without having to use the m-word.
The truly impossible burger is McDonald's Vegetable Deluxe in the UK and other markets. Its two "vegetable goujons" don't even try to emulate beef.
McDonald's
The biggest shoe yet to drop is, of course, McDonald's. With nearly four times the US sales of No. 2 Burger King, few restaurant brands coin more mainstream food trends, yet McDonald's has eschewed both Impossible and Beyond burgers. Instead it offers its own McVegan burger in Finland and Sweden, and the Vegetable Deluxe in the UK. Neither sandwich would likely be mistaken for a hamburger.
And while burgers are the American diet icon, steaks aren't far behind, and an even bigger challenge in alternative meat marketing may soon unfold at fast casual steak chains like Outback or Texas Roadhouse. Unlike burgers, steaks generally arrive on the plate unadorned, without bun, cheese or condiments to mask any shortcomings. Get steak right, so the thinking goes, and the plant-based dominoes begin to fall.
Impossible's Brown says burger R&D has prepared it for the challenge. "I can say, with complete confidence, that we're going to nail it and not only make a great steak, but we're going to make a steak that's as good as anything that ever fell out of a cow."
(Reuters) - Major U.S. airlines were back up and running on Monday after a system-wide outage delayed hundreds of flights and fired-up customer complaints on social media, the second such disruption in a week.
The Federal Aviation Administration said the root of the problem was caused by the program provided by Scottsdale, Arizona-based AeroData Inc that helps airlines measure and manage weight and balance.
The agency released a statement around 8.30 a.m. ET, saying the issue had been resolved and an FAA spokesman said it plans to look into the outage.
American Airlines, Southwest Airlines and Delta Air Lines had reported outages. United Airlines said it was unable to create paperwork for some time.
"A brief third-party technology issue that prevented some Delta Connection flights from being dispatched on time this morning has been resolved," Delta said.
Other airlines also reported a series of delays.
Southwest Airlines was the first carrier to report that the problem had been resolved and it would get travelers moving soon, but added that customers could expect flight delays.
A Southwest spokesman could not confirm how many flights were delayed, but said it was safe to say hundreds.
FlightAware, an airline tracking website, said Southwest had delayed 775 flights, or 18 percent of its U.S. flights on Monday.
American Airlines, JetBlue Airways Corp, United Airlines and other carriers later said the technical issue had been resolved. JetBlue added it was still dealing with residual delays, while United said about 150 flights were delayed.
Last week, several airlines had reported issues with Sabre Corp's flight reservation and booking system due to which passengers had difficulty accessing flight check-in systems.
AERODATA GLITCH, PASSENGER STORM
Just a few minutes of system downtime in AeroData can result in over 100 delayed flights and loss of revenue, according to a 2017 case study by VMware Inc.
AeroData could not be immediately reached for comment.
Customers barraged Twitter with their complaints over confusion at airports and delayed flights.
One Southwest passenger reported waiting on the tarmac in a plane in Dallas for 90 minutes after his 6 a.m. flight to New Orleans was delayed. The airline said after the systems resumed that the flight would arrive at 8.05 a.m.
"@SouthwestAir, I get the glitch, but if you could update your flight status times to current status that would help confused travelers from running frantic to catch a flight when the plane is not even waiting at the gate yet. Flight 929 not 8:50 but 'around' 10 am," a passenger tweeted. https://bit.ly/2I4UPfV
"My number one traveling pet peeve? Not updating a flight as delayed when you know the prior flight is delayed. How hard is this to get right @AmericanAir?" said another frustrated passenger. https://bit.ly/2TOErlM
Other passengers reported long wait times at airports and missed connections.
(Reporting by Sanjana Shivdas in Bengaluru and David Shepherdson in Washington; editing by Patrick Graham, Bernard Orr)
(Reuters) - Major U.S. airlines were back up and running on Monday after a system-wide outage delayed hundreds of flights and fired-up customer complaints on social media, the second such disruption in a week.
The Federal Aviation Administration said the root of the problem was caused by the program provided by Scottsdale, Arizona-based AeroData Inc that helps airlines measure and manage weight and balance.
The agency released a statement around 8.30 a.m. ET, saying the issue had been resolved and an FAA spokesman said it plans to look into the outage.
American Airlines, Southwest Airlines and Delta Air Lines had reported outages. United Airlines said it was unable to create paperwork for some time.
"A brief third-party technology issue that prevented some Delta Connection flights from being dispatched on time this morning has been resolved," Delta said.
Other airlines also reported a series of delays.
Southwest Airlines was the first carrier to report that the problem had been resolved and it would get travelers moving soon, but added that customers could expect flight delays.
A Southwest spokesman could not confirm how many flights were delayed, but said it was safe to say hundreds.
FlightAware, an airline tracking website, said Southwest had delayed 775 flights, or 18 percent of its U.S. flights on Monday.
American Airlines, JetBlue Airways Corp, United Airlines and other carriers later said the technical issue had been resolved. JetBlue added it was still dealing with residual delays, while United said about 150 flights were delayed.
Last week, several airlines had reported issues with Sabre Corp's flight reservation and booking system due to which passengers had difficulty accessing flight check-in systems.
AERODATA GLITCH, PASSENGER STORM
Just a few minutes of system downtime in AeroData can result in over 100 delayed flights and loss of revenue, according to a 2017 case study by VMware Inc.
AeroData could not be immediately reached for comment.
Customers barraged Twitter with their complaints over confusion at airports and delayed flights.
One Southwest passenger reported waiting on the tarmac in a plane in Dallas for 90 minutes after his 6 a.m. flight to New Orleans was delayed. The airline said after the systems resumed that the flight would arrive at 8.05 a.m.
"@SouthwestAir, I get the glitch, but if you could update your flight status times to current status that would help confused travelers from running frantic to catch a flight when the plane is not even waiting at the gate yet. Flight 929 not 8:50 but 'around' 10 am," a passenger tweeted. https://bit.ly/2I4UPfV
"My number one traveling pet peeve? Not updating a flight as delayed when you know the prior flight is delayed. How hard is this to get right @AmericanAir?" said another frustrated passenger. https://bit.ly/2TOErlM
Other passengers reported long wait times at airports and missed connections.
(Reporting by Sanjana Shivdas in Bengaluru and David Shepherdson in Washington; editing by Patrick Graham, Bernard Orr)
WASHINGTON (Reuters) - U.S. retail sales unexpectedly fell in February, the latest sign economic growth has shifted into low gear as stimulus from $1.5 trillion in tax cuts and increased government spending fades.
FILE PHOTO: People shop at Macy's Department store in New York City, U.S., March 11, 2019. REUTERS/Brendan McDermid/File Photo
There was, however, some encouraging news on the economy. Other reports on Monday showed a pickup in manufacturing activity in March and the third straight monthly increase in construction spending in February. Still, the risks to economic growth in the first quarter remain tilted to the downside.
The loss of momentum also reflects higher interest rates, slowing global growth, Washington’s trade war with China and uncertainty over Britain’s departure from the European Union.
These factors contributed to the Federal Reserve’s decision last month to abruptly end its three-year campaign to tighten monetary policy. The U.S. central bank abandoned projections for any interest rate hikes this year after increasing borrowing costs four times in 2018.
“The consumer is lost in the woods and this makes for a gloomy economic outlook this year if they cannot find their way,” said Chris Rupkey, chief economist at MUFG in New York. “The Fed was wise to move to the sidelines.”
Retail sales dropped 0.2 percent as households cut back on purchases of furniture, clothing, food and electronics and appliances, as well as building materials and gardening equipment. Data for January was revised higher to show retail sales increasing 0.7 percent instead of gaining 0.2 percent as previously reported.
Economists polled by Reuters had forecast retail sales rising 0.3 percent in February. Retail sales in February advanced 2.2 percent from a year ago.
The surprise drop in sales in February could partly reflect delays in processing tax refunds in the middle of the month. Tax refunds have also been smaller on average compared to prior years following the revamping of the tax code in January 2018. Cold and wet weather could also have hurt sales.
The February retail sales report was delayed by a 35-day partial shutdown of the federal government that ended on Jan. 25. March’s retail sales report, which was scheduled for publication on April 16, will be released on April 18.
The dollar was trading lower against a basket of currencies, while Treasury prices were down. U.S. stocks rose.
Excluding automobiles, gasoline, building materials and food services, retail sales fell 0.2 percent in February after an upwardly revised 1.7 percent surge in January. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.
DEMAND WEAKENING
They were previously reported to have rebounded 1.1 percent in January. Consumer spending accounts for more than two-thirds of economic activity. The sharp upward revision to core retail sales in January was insufficient to reverse December’s more than 2.0 percent plunge, leaving expectations for tepid GDP growth in the first quarter intact.
Growth estimates for the January-March quarter are as low as a 0.8 percent annualized rate. The economy grew at a 2.2 percent rate in the fourth quarter after expanding at a 3.4 percent clip in the July-September period.
But green shoots are emerging in some sectors of the economy. In a separate report on Monday, the Institute for Supply Management said its index of national factory activity rose to a reading of 55.3 in March from 54.2 in February, which had marked the lowest level since November 2016.
The reading was slightly above expectations of 54.5 from a Reuters poll of 69 economists. A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates contraction.
Another report from the Commerce Department showed construction spending rose 1.0 percent to a nine-month high in February after surging 2.5 percent in January.
The February retail sales report showed receipts at building materials and garden equipment and supplies dealers tumbled 4.4 percent, the biggest drop since April 2012. Receipts at clothing stores fell 0.4 percent and those at furniture outlets dropped 0.5 percent.
Sales at food and beverage stores declined 1.2 percent, the biggest drop since February 2009. Receipts at electronics and appliances stores fell 1.3 percent, the largest decline since May 2017.
But consumers bought more motor vehicles, with sales at auto dealerships rebounding 0.7 percent after declining 1.9 percent in January. Households also spent more at service stations, likely reflecting higher gasoline prices.
FILE PHOTO: People are seen with shopping bags in Times Square in New York City, U.S., November 23, 2018. REUTERS/Brendan McDermid/File Photo
Online and mail-order retail sales rose 0.9 percent. Sales at restaurants and bars edged up 0.1 percent and spending at hobby, musical instrument and book stores increased 0.5 percent.
Slowing demand was highlighted by a fourth report from the Commerce Department showing business inventories rose 0.8 percent in January.
Reporting by Lucia Mutikani; Editing by Andrea Ricci
U.S. manufacturing activity rebounded a bit more than expected in March, according to an industry report released on Monday, as production, new orders and hiring all picked up.
The Institute for Supply Management (ISM) said its index of national factory activity rose to 55.3 from 54.2 in February, which had marked the lowest level since November 2016. The reading was slightly above expectations of 54.5 from a Reuters poll of 69 economists.
A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates contraction.
The employment index rose to 57.5 from 52.3 a month earlier. Expectations called for a reading of 52.4.
The new orders index rose to 57.4 from 55.5 in February. The prices paid index rose to 54.3, indicating that prices producers are paying for materials rose for the first time since December.
Production also picked up, with that index at ticking up to 55.8 from 54.8 the month before.
U.S. construction spending increased for a third straight month in February, boosted by gains in both private and public construction projects, offering some good news on the economy following a string of weak reports.
The Commerce Department said on Monday construction spending rose 1.0 percent to a nine-month high after an upwardly revised 2.5 percent surge in January.
Economists polled by Reuters had forecast construction spending falling 0.2 percent in February after a previously reported 1.3 percent jump in January.
Construction spending increased 1.1 percent on a year-on-year basis in February.
In February, spending on private construction projects rose 0.2 percent after vaulting 1.5 percent in January. Investment in private residential projects increased 0.7 percent, rising for a third straight month.
The strong gains are despite a sluggish housing market, which has been held back by higher mortgage rates, expensive building materials as well as land and labor shortages. But there are signs of green shoots emerging in the housing market as mortgage rates have declined from last year's lofty levels.
Spending on private nonresidential structures, which includes manufacturing and power plants, fell 0.5 percent in February after jumping 1.1 percent in January.
Investment in public construction projects rose 3.6 percent in February after accelerating 5.7 percent in the prior month.
Spending on federal government construction projects rose 0.9 percent to the highest level since October 2017, after soaring 5.7 percent in January.
Investment in state and local government construction projects rose 3.8 percent after surging 5.7 in January.
The meat substitute manufacturer Impossible Foods and fast food giant Burger King are launching an Impossible Whopper.
According to a report in The New York Times, Burger King is launching the Impossible Whopper in stores in the St. Louis area with plans for a broader rollout later — and not as part of some elaborate April Fool’s day prank.
Burger King isn’t the first fast food chain to bring an Impossible burger to market. That’d be White Castle, which is selling Impossible sliders at stores in the Northeast.
But Burger King would certainly be the biggest slinger of ground beef to go with a meatless patty maker.
Impossible’s largest competition in the meat-substitute market, the publicly traded purveyor of purely beef free patties, Beyond Meat, has a similar deal with Carl’s Jr. for its own version of a beef-less burger.
The Silicon Valley-based Impossible Foods has been on a roll. They introduced a new version of their burger to much fanfare at the Consumer Electronics Show earlier this year, and have been locking in deals with higher-end fast casual restaurants and now large international fast food chains.
In the eight years since the company raised its first $7 million investment from Khosla Ventures, Impossible Foods has managed to amass over $389 million in financing — including a convertible note last year from the Singaporean global investment powerhouse Temasek (which is backed by the Singaporean government) and the Chinese investment fund Sailing Capital (a state-owned investment fund backed by the Communist Party-owned Chinese financial services firm, Shanghai International Group).
It remains to be seen if this is a harbinger of things to come for Burger King and whether the fast food giant will embrace other alternative meat companies like the providers of fake chicken or cellular based meat substitutes like Memphis Meats.
