Defense Secretary Lloyd Austin hospitalized for bladder issue, transfers duties to deputy


Defense Secretary Lloyd Austin experienced a setback in his health on Sunday, prompting his security detail to rush him back to the hospital for symptoms related to a potential bladder issue. The Pentagon, where Austin holds a crucial role, announced that he had transferred his responsibilities to his deputy due to his health concerns.

Austin, who has been grappling with prostate cancer, has been in the recovery phase after undergoing surgery in the preceding months. Initially, upon entering the hospital, he retained all the duties associated with his position, ensuring he had access to both classified and unclassified communication systems necessary for the performance of his responsibilities, as stated by Pentagon press secretary Maj. Gen. Pat Ryder.

However, a subsequent update revealed that Austin had relinquished his duties to Deputy Defense Secretary Kathleen Hicks just before 5 p.m. ET. The Pentagon promptly informed the Chairman of the Joint Chiefs of Staff, the White House, and Congress about the situation, emphasizing that additional updates on Austin’s condition would be provided in due course.

This incident marks a departure from a previous lapse in communication when Austin’s staff failed to promptly inform top government officials about his ICU admission for complications related to his cancer surgery. In January, the delayed disclosure drew criticism, prompting calls for Austin’s resignation from some lawmakers. The subsequent revelation of his prostate cancer diagnosis and the details of his hospital visits did little to assuage concerns.

Despite the controversy, the White House stood by Austin, rebuffing calls for his resignation and expressing steadfast support as he confronted the challenges posed by his battle with cancer. Austin’s return to the hospital comes just over a week after he publicly apologized for the lack of transparency surrounding his earlier hospital visit. During a Pentagon briefing, he acknowledged the mishandling of the situation and took full responsibility for not disclosing his cancer diagnosis to the president, his team, and the American public.

The recurring health issues underscore the delicate balance Austin must strike between his responsibilities as Defense Secretary and his ongoing health challenges. As the Pentagon awaits further updates on Austin’s condition, the incident highlights the importance of transparent communication in matters involving high-ranking government officials, especially when health concerns may impact their ability to fulfill their duties effectively.

Hawaiian Airlines introduces complimentary in-flight Wi-Fi powered by SpaceX’s Starlink.

Hawaiian Airlines is introducing complimentary Wi-Fi on its commercial flights this week, courtesy of SpaceX’s Starlink, marking the first major U.S. airline to provide this satellite-based service. According to Peter Ingram, CEO of Hawaiian Airlines, SpaceX has successfully developed the technology to deliver high-quality, wide-bandwidth connectivity globally to airplanes.

This move aligns with the trend of airlines enhancing high-speed connectivity options. JetBlue Airways already offers free in-flight Wi-Fi, and Delta Air Lines introduced free onboard internet for its loyalty program members last year after extensive planning.

Hawaiian Airlines, with an extensive Pacific Ocean flight network, serving destinations like the mainland U.S., Japan, Australia, and New Zealand, signed an agreement with SpaceX in April 2022 to utilize the Starlink network. The partnership aims to install Starlink terminals on 18 A321 jets and 24 A330 aircraft later this year.

Chad Gibbs, SpaceX’s Vice President of Starlink business operations, emphasized the transformative potential of the Starlink service, providing substantial capacity and bandwidth for in-flight connectivity. While the financial details of the deal remain undisclosed, Ingram mentioned that the costs have decreased compared to earlier Wi-Fi systems.

Ingram highlighted that Hawaiian Airlines is actively installing Starlink terminals, with six already completed on its Airbus A321 planes. The original plan to install Starlink terminals in 2023 was delayed as SpaceX needed to launch more next-generation satellites and obtain Federal Aviation Administration certification.

SpaceX has been working on obtaining licenses for various aircraft, with over 30,000 flights having utilized Starlink to date. Beyond Hawaiian Airlines, SpaceX has secured Starlink inflight Wi-Fi deals with airBaltic in Latvia, Zipair in Japan, and Qatar Airways. This development coincides with Hawaiian Airlines’ acquisition by Alaska Airlines in a $1.9 billion deal late last year.

Communities increasingly choose train travel to both economize and promote environmental conservation, while Amtrak strives to regain its pre-Covid ridership levels.

As domestic travel rebounds from pandemic lows and prices soar, an increasing number of travelers are opting for trains over planes. The straightforward tradeoffs are evident: trains are often more economical, offer more legroom, and are considered more environmentally friendly than air travel. These advantages are fueling a shift towards Amtrak, the U.S. government-backed rail service, in its pursuit to restore pre-Covid ridership and streamline operations.

The surge in travel demand has led to soaring airline ticket prices and heightened uncertainty in the airline industry, partly due to high-profile incidents. While train routes may have longer travel times compared to flights, the overall journey tends to balance out when factoring in airport traffic, security lines, and boarding wait times, according to Clint Henderson, a managing editor at travel site The Points Guy.

While trains may not replace air travel entirely, there is a noticeable increase in people choosing Amtrak trains over flights, particularly in the Northeast corridor. This shift is evident in travelers like Leonor Grave, who prefers the convenience of train stations in city centers and appreciates the ability to move around, stretch legs, and enjoy amenities during the journey.

Despite the current disparity with high-speed rail networks in Europe and Japan, some travelers find the option increasingly attractive, citing benefits such as cost savings, greater flexibility to work during the journey, and the environmental advantages of reduced carbon emissions associated with train travel.

Although Amtrak has reported a 24% increase in total ridership in 2023 compared to the previous year, it still lags behind pre-pandemic levels. The on-time performance of trains has faced challenges since the pandemic, with disruptions largely attributed to issues with host railroads. Amtrak is committed to addressing these challenges and has secured funding to upgrade trains and infrastructure, aiming to double ridership by 2040. Despite the anticipated improvements, observers like Henderson emphasize the need for patience, acknowledging that the transformation of train travel will take time.

PepsiCo surpasses earnings expectations, yet experiences a decline in quarterly revenue for the first time in almost four years

PepsiCo released a set of quarterly results reflecting a mixed performance, attributing weakened demand for its food and beverages in North America. CEO Ramon Laguarta noted a broad slowdown in U.S. sales during the fourth quarter, citing factors such as pricing and consumers’ disposable income constraints. Laguarta acknowledged a shift in consumer behavior towards acquiring snacks and Gatorade from convenience stores instead of consuming them at home. Despite the challenges, he expressed optimism about the overall consumer landscape, highlighting low unemployment rates and expectations of interest rate reductions and faster wage growth compared to inflation by summer.

PepsiCo’s reported figures, compared to Wall Street expectations, are as follows:

  • Earnings per share: $1.78 adjusted (vs. $1.72 expected)
  • Revenue: $27.85 billion (vs. $28.4 billion expected)

The company reported fourth-quarter net income of $1.3 billion, or 94 cents per share, up from $518 million, or 37 cents per share, a year earlier. Excluding items, the adjusted earnings per share stood at $1.78. Net sales experienced a slight decline of less than 1% to $27.85 billion, marking the first quarter since 2020 with a year-over-year revenue drop. Currency exchange rates contributed to a 1.5% decline in net sales.

PepsiCo’s organic revenue, excluding acquisitions and divestitures, increased by 4.5% in the quarter, driven by higher prices. However, these raised prices negatively impacted demand for the company’s food and beverages, leading to a decline in volume.

Executives cited high borrowing costs and reduced personal savings squeezing consumer budgets, especially in North America. Consumers are increasingly opting for smaller pack sizes due to their convenience and lower price points.

Specific divisions faced challenges, with the North American Quaker Foods division reporting an 8% decline in volume, impacted by a voluntary recall of granola bars and cereals. Frito-Lay North America saw a 2% drop in volume, and Pepsi’s North American beverage unit experienced a 6% decline in volume during the quarter.

Looking ahead to 2024, PepsiCo expects organic revenue to rise at least 4%, with core constant currency earnings per share climbing at least 8%. This outlook represents a slight adjustment from the previous forecast, with the company previously anticipating an increase in organic revenue on the high end of 4% to 6% and core constant currency earnings per share growth in the high single digits. Executives anticipate a challenging first half of the year, citing product recalls impacting the North American Quaker Oats business and international conflicts affecting sales in some regions. They expect international organic revenue growth to surpass that of North America for the full year.

Digital banking giant Revolut is launching phone plans for travelers in the UK

Revolut, the British fintech company, is set to introduce phone plans in the U.K., marking a pioneering move as the first financial services firm in the country and among the early global adopters. The company, known for its digital banking and payment services, will roll out eSIMs (virtual SIM cards) this week. These plans cater to users with varying subscriptions, including a basic app experience that enables access to the Revolut app for phone top-ups. Additionally, customers on the premium Ultra package will enjoy 3GB of global data monthly, eliminating concerns about unexpected roaming charges.

The backdrop of increased mobile data costs for UK residents, especially after Brexit, has prompted Revolut to venture into telecommunications. The initiative seeks to provide users with seamless access to services such as banking, currency exchange, insurance, travel bookings, and more, transforming Revolut into an all-encompassing “super app.” As a rare foray by a financial services firm into phone plans, Revolut aims to secure a loyal customer base and diversify its revenue streams. The company has partnered with U.K. mobile network operator 1Global for the eSIM launch.

Revolut users without an Ultra subscription can avail an introductory offer of 100MB free data until May 1, following which an upgrade to Ultra is required. Tara Massoudi, General Manager of Premium Products at Revolut, emphasized the importance of innovation in travel services, aligning with the company’s ambition to be a “financial super app.” Industry experts believe that Revolut’s move into phone plans could be a lucrative step, potentially unlocking a new revenue stream and enhancing long-term profitability.

This strategic move follows a trend in the financial sector, with challenger banks integrating additional services to strengthen customer loyalty. The long-term goal for Revolut is to become a primary banking provider for users’ diverse financial needs, rather than a niche, low-fee travel account. Observers suggest that such a fusion of banking and phone plans can enhance user experience and further solidify customer retention. Analysts predict a potential trend, expecting other banks to explore phone plans and travel-related offers in the next 18 months.

While Revolut is not the first fintech to introduce eSIMs, this move underscores the company’s commitment to innovation and its pursuit of new revenue streams. Indian credit card startup Zolve has previously ventured into offering phone plans, both physical SIMs and eSIMs, in August, catering to immigrants setting up banking services before arriving in the U.S.