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US economic growth revised higher, but falls short of expectations

Air taxis will be possible in coming days under drone rules: Scindia

Air taxis that will traverse the airspace instead of roads will be very much possible in the coming days under the drone rules announced on Thursday, Civil Aviation Minister Jyotiraditya Scindia said. "Air taxis are being researched and invented globally and many startups are coming up," the minister said during a press conference here. "That time is not far when taxis, like the ones of Uber etc that you see on roads, you will see in the air under the drone policy. I believe this is very much possible," he added.

The minister said that the Defence Ministry, the Home Ministry and BCAS (Bureau of Civil Aviation Security) have been working together so that "counter rogue drone technology" can be developed and adopted quickly.

In a notification dated August 25, the Ministry of Civil Aviation eased the rules regarding drone operations in the country by reducing the number of forms that need to be filled to operate them from 25 to 5 and decreasing the types of fees charged from the operator from 72 to 4.

Ironwood Pharma: FDA Approves Revised Label For LINZESS – Quick Facts

Ironwood Pharmaceuticals, Inc. (IRWD) said the FDA approved a revised label for LINZESS modifying the boxed warning for risk of serious dehydration and contraindication against use in children to those less than two years of age. Previously, the boxed warning and contraindication applied to all children less than 18 years of age and less than 6 years of age, respectively.

LINZESS is a once-daily capsule for the treatment of adult patients with irritable bowel syndrome with constipation or chronic idiopathic constipation.

“This label update reflects a significant milestone, and we look forward to continuing to investigate the safety and efficacy of LINZESS for children,” said Michael Shetzline, chief medical officer, senior vice president and head of drug development at Ironwood.

U.S. Leading Economic Index Increases Slightly More Than Expected In July

Reflecting positive contributions from all components, the Conference Board released a report on Thursday showing its index of leading U.S. economic indicators increased by slightly more than expected in the month of July.

The Conference Board said its leading economic index advanced by 0.9 percent in July after rising by a downwardly revised 0.5 percent in June.

Economists had expected the index to climb by 0.8 percent compared to the 0.7 percent increase originally reported for the previous month.

“The Leading Index’s overall upward trend, which started with the end of the pandemic-induced recession in April 2020, is consistent with strong economic growth in the second half of the year,” said Ataman Ozyildirim, Senior Director of Economic Research at The Conference Board.

He added, “While the Delta variant and/or rising inflation fears could create headwinds for the US economy in the near term, we expect real GDP growth for 2021 to reach 6.0 percent year-over-year, before easing to a still robust 4.0 percent growth rate for 2022.”

The report also showed the coincident economic index rose by 0.6 percent in July following a 0.4 percent increase in June.

The Conference Board said the lagging economic index also climbed by 0.6 percent in July after being unchanged in the previous month.

Bouygues’ Colas In Deal To Buy Finland’s Destia; Financial Terms Not Disclosed

Colas SA, a unit of French telecom, media, and construction company Bouygues SA (BOUYY.PK), announced Thursday its agreement to acquire Destia Oy, a player in the road, rail and energy infrastructure in Finland.

The transaction is expected to close by the end of 2021 and is subject to the approval of the competition authorities.

The company said the acquisition is in line with its strategy to pursue international growth in targeted regions, such as Northern Europe, United States, Germany.

Destia, which currently belongs to the family-owned Ahlström Capital Group., has a workforce of more than 1,600 people, and generated revenue totaling 564 million euros in 2020

Francis Grass, Managing Director Colas EMEA, said, “We are very impressed by Destia’s skills and expertise, particularly in terms of digitalization of construction sites and maintenance services in harsh weather conditions. We see the opportunity to further develop business lines such as rail and earth & rock services and Colas will bring onboard its expertise in complex
projects management.”

US economic growth revised higher, but falls short of expectations

Consumers have ‘buying power’ in current economy: Expert

Cornerstone Macro co-founder and chief economist Nancy Lazar argues that stimulus is keeping consumer spending numbers strong.

The U.S. economy grew faster than previously thought during the second quarter, but that was not enough to exceed economists’ expectations.

Gross domestic product, the broadest measure of economic performance, increased 6.6% in the three months through June, according to a second estimate released Thursday by the Commerce Department. Economists surveyed by Refinitiv had expected 6.7% growth. 

The initial estimate released last month showed 6.5% growth as supply-chain disruptions and labor shortages held the economy back. The U.S. economy grew at a 6.3% pace in the first quarter.

The second estimate included upward revisions to personal consumption expenditures, nonresidential fixed investment, exports, and state and local government spending. Those were partially offset by decreases in private inventory investment, residential fixed investment, and federal government spending. 

Imports, which are subtracted from GDP, increased.

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A third estimate will be released on September 30.