Invenergy to Add Gas to Its Contested $11 Billion US Power Line
The company now has plans to connect a gas plant to the Grain Belt Express power line and is also in talks to add coal-fired generation, according to people familiar with the plans who asked not to be named discussing a private matter. Axios reported the plan earlier.
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Yahoo
17 minutes ago
- Yahoo
Is MP Materials Stock Your Ticket to Becoming a Millionaire?
Key Points The company has become a key geostrategic partner for the Department of Defense. The game-changing deal with the government has secured MP Materials' future. It will help ensure the availability of rare-earth materials for both defense and commercial needs in the U.S. Execution and political risks are not insignificant here, and shareholders could face further dilution. 10 stocks we like better than MP Materials › MP Materials (NYSE: MP) is a unique company with a crucial role to play in America's defense policy and its geostrategic positioning. Currently, it's the only company operating a rare-earth mine and processing facility in the U.S., and it has recently become a partner of the Department of Defense and Apple. Does that make it a stock likely to turn investors into millionaires over time? MP Materials stock is on a roll There's no other way to put it. The stock is up a whopping 305% year to date as of the time of writing, and took off after the recent DOD deal was announced on July 10, with another leg up in the share price occurring after the Apple agreement was announced on July 15. The good news just kept coming for MP Materials as a $500 million stock offering on July 16 saw strong demand, leading to an upsize offering of $650 million worth of stock priced at $55. For reference, the stock price at the time of writing is $63.22. Sentiment is very optimistic over MP Materials, but can it last? Why rare-earth materials matter To understand that question, you have to look at the deals and put them into the context of the U.S.'s need to secure a reliable domestic provision of rare earths and rare-earth magnets -- essential materials used in mobile phones, computers, wind turbines, electric vehicles, drones, missiles, and many other applications. Brazil, India, Russia, China, and Vietnam dominate the market share of global reserves. Not only does China dominate reserves, but it also dominates rare-earth element production, holding a 70% global share, and refined production, with an 87% share. The reliance on China's rare-earth magnets (the most common use for rare earth elements) is such that export to the U.S. surged by 660% in June compared to May after a trade deal with China resulted in a resumption of imports to the U.S. This is an uncomfortable position for the U.S., and it's also somewhat problematic, at least over the near term, for MP Materials because according to its latest 10-K filing with the Securities and Exchange Commission (SEC), "Currently, the Company sells the vast majority of its rare-earth concentrate to Shenghe Resources (Singapore) International Trading Pte. Ltd.," a subsidiary of a Chinese company, Shenghe Resources. It's no coincidence that the U.S. signed a mineral deal with Ukraine and President Donald Trump has mooted the possibility of acquiring Greenland, a country with substantive rare-earth reserves. It's also the reason behind the game-changing deal with MP Materials, which creates a highly unusual public-private partnership through the DOD. Game-changing MP Materials deals The DOD is investing $400 million in preferred convertible MP Materials stock (which could result in it owning 15% of the company) and providing a $150 million loan. At the same time, the department has agreed to ensure that all the rare-earth magnets produced at a to-be-built facility ("10X Facility") will be purchased by "defense and commercial customers with shared upside." Additionally, the DOD has established a price floor commitment of $110 per kilogram of NdPr (Neodymium-Praseodymium) that MP Materials sells or stockpiles. As such, the department has acted to secure the future earnings and cash flow. With known revenue streams and price floors, it has made it easier to raise capital for its magnet manufacturing facility. JPMorgan Chase and Goldman Sachs have steeped in with a $1 billion loan in addiiton to the $650 million equity raise. The deal also influenced an agreement with Apple for the tech giant to invest $500 million ($200 million prepaid) for rare-earth magnet supply from an MP Materials facility in Texas. Is MP Materials a millionaire maker? The securing of MP Materials' mining and magnet manufacturing facility is a significant plus and likely to lead to more interest and deals from American companies looking to secure rare-earth magnet provisions. At the same time, it's incredibly challenging to predict the future prices of rare-earth materials and magnets, particularly if you are seeking upside from the DOD price floor. Similarly, building a major facility entails execution risk, which could lead to additional equity raises that dilute existing shareholders. Moreover, there's always political risk to consider when the public sector takes a share in a private company. These factors could limit the upside, and while MP Materials has significant upside potential, there are too many complicating factors to confidently conclude that this is a stock that will make millionaires of ordinary investors. Do the experts think MP Materials is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did MP Materials make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,040% vs. just 182% for the S&P — that is beating the market by 858.13%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Goldman Sachs Group, and JPMorgan Chase. The Motley Fool recommends MP Materials. The Motley Fool has a disclosure policy. Is MP Materials Stock Your Ticket to Becoming a Millionaire? was originally published by The Motley Fool
Yahoo
37 minutes ago
- Yahoo
Delta's struggles with the airport lounge and the angst of the upper middle class in the age of ‘elite overproduction,' explained
Delta Air Lines is having a good 2025, reporting strong second-quarter earnings and reinstating its April profit guidance, leading to a substantial stock bump (up roughly 16% from June to July). True, its guidance is down from its January projections, but it's weathering the storm of the tricky global economy well, maintaining its status as America's leading premium airline. As Fortune's Shawn Tully reported in March 2025, it has somehow managed the trick of being America's most profitable airline, while giving billions back to employees in the form of profit sharing. At the start of the year, CEO Ed Bastian kicked off a celebration of Delta's centenary by announcing 'a new era in premium travel' with the opening of Delta One lounges, a step above its usual Sky Clubs. The Delta One locations will offer 'amenities for the premium traveler' ranging from fine dining to spa-like wellness treatments and valet services. Bastian clarified that Delta will continue to invest in its Delta Sky Clubs, with more openings planned to come. But there is more to the story for Delta, America's leading premier airline. The Sky Clubs are coming off years of turbulence, with significant customer backlash following several of Delta's attempts to improve a lounge experience that has become overcrowded. These problems date back several years, to the beginning of the 'revenge travel' boom that accompanied post-pandemic reopening. Bastian told Fortune in 2022 that even he was shocked by the level of demand: 'People talk about revenge travel, or pent-up travel—this is beyond anything that people can classify as truly pent-up,' he said, adding that his team calculated a whopping $300 billion burst of travel thirst. 'That gap is $300 billion—with a B,' Bastian emphasized. America's leading premium airline has long offered a standard lounge experience through its Sky Clubs, with free wi-fi, buffets of cold snacks and heated steam trays, and a range of complimentary drinks. The Sky Clubs were no match for the burst of revenge travelers. Bastian's efforts to fix these problems in 2023—barring Basic Economy passengers and capping the number of visits allowed for credit card holders—sparked backlash on customers' part and soul-searching for Bastian. 'We are victims of our own success,' he told Fast Company's Stephanie Mehta in 2024, as he explained changes to benefits including access to Sky Club lounges. 'It's hard to tell someone who's been at a certain status for many years that what they've earned is no longer as valuable.' That's why the declining pleasure of the airport lounge resonates for a deeper reason: it's a metaphor for the declining prospects of the upper middle class in an age of 'elite overproduction,' which argues that certain societies grow so rich and successful that they produce too many people of premium education for the number of premium jobs—or premium experiences—that the economy can actually support. The elites have been so overproduced that you can literally see them—in lines stretching out of airport lounges. The elite lounge overproduction theory Several factors make Delta's overcrowding issue particularly severe, and they have to do with how Delta is really trying—and, as Bastian says, succeeding—in offering a premium service to a large, affluent customer base. Delta offers more comprehensive food and beverage options than many competitors, so travelers linger longer, compounding capacity issues. Indeed, when reached for comment, Delta confirmed that its SkyMiles program has seen 'unprecedented engagement,' and its member satisfaction is higher than ever. Delta said it's committed to continuous investment to further please customers, which includes 'modernizing and expanding our lounges.' Generous lounge access deals with American Express (including non-Delta-branded Platinum Card holders) have greatly expanded eligibility, overwhelming facilities. As more travelers achieve status or purchase high-tier tickets, both due to credit card spending and business travel rebounds, demand for lounge space has increased beyond what legacy facilities can handle. Delta isn't alone in its lounge struggles, as shown by its partner, American Express, which has tried to physically expand many of its Centurion Lounges. Those have gone from the epitome of exclusivity and comfort to another kind of crowded waiting room—albeit with arguably better snacks and Wi-Fi. The root of the problem is the same: too many people now have access. The proliferation of premium credit cards, airline status programs, and paid day passes has democratized lounge entry, eroding the exclusivity that made these spaces desirable in the first place. It is unclear if Delta expanded too far, too fast, or if it was surprised by the number of lounge lovers in its clientele. UBS Global Wealth Management has noted a surprising trend in the upper middle class: the rise of the 'everyday millionaire,' or people whose assets fall between $1 million and $5 million. These are exactly the kind of people who would see themselves as lounge-worthy, and likely frustrated to find their small-M millionaire status doesn't go so far. The consequences for travelers are palpable. Social media and travel forums are rife with stories of travelers paying hundreds of dollars in annual fees only to find long lines clogging, say, New York's JFK terminals on a daily basis. The proof is abundant on TikTok. On the other hand, expectations are heightened. Travel research firm Airport Dimensions has conducted an 'airport experience report' for over a decade and found in 2024 that airport lounges are a contradiction: the definitive democratic travel luxury. This widespread expectation—and dissatisfaction—is not just a matter of comfort. For many, the lounge was a symbol of having 'made it'—a reward for loyalty, status, or financial success. Its decline has become a source of frustration and even embarrassment, especially for those who remember a more exclusive era. There's an emotional trigger behind an unpleasant lounge experience. The theory behind the malaise: elite overproduction The overcrowding of airport lounges is more than a logistical headache—it's a microcosm of a broader societal phenomenon. University of Connecticut professor emeritus Peter Turchin has developed a controversial theory of 'elite overproduction' which posits that frustration and even instability result when a society produces more people aspiring to elite status than there are elite positions. It's an unorthodox theory from an unorthodox academic: Turchin is an emeritus professor at UConn, research associate at the University of Oxford and project leader at the Complexity Science Hub-Vienna, leading research in a field of his own invention: Cliodynamics, a type of historical social science. The catch with Turchin's theory is that his own type of complexity science takes on a pseudo-prophetic quality, similar in some ways to William Strauss and Neil Howe's 'Fourth Turning.' And Turchin has foreseen that the United States has reached a stage repeated in civilizations throughout history, when it has produced too many products of elite education and social status for the realistic number of jobs it can generate. Decline and fall follows, Roman Empire-style. The Atlantic profiled Turchin in 2020, warning 'the next decade could be even worse.' Several writers have expanded on his ideas since then, approaching it from their distinctive and different sensibilities. Ritholtz Wealth Management COO Nick Maggiulli posted to his 'Of Dollars and Data' blog on the subject of airport lounges specifically, writing that the 'death of the Amex lounge' simply shows that 'the upper middle class isn't special anymore,' although he did not specifically link this to the concept of elite overproduction. 'There are too many people with lots of money,' he concluded. In the context of airport lounges, the 'elite' are not just the ultra-wealthy, but the vast upper middle class—armed with a combination of higher degrees, status, and premium credit cards—now jostling for the same perks. But what if much of society has been turning into some version of an overcrowded airport lounge? In an interview with Fortune Intelligence, Turchin said this theory makes sense and fits with his thesis when presented with the similarities. 'The benefits that you get with wealth are now being diluted because there are just too many wealth holders,' he said, citing data that the top 10% of American society has gotten much wealthier over the past 40 years. (Turchin sources this statement to this working paper from Edward Wolff.) Turchin said lounges are not by definition restricted from expansion in the same way that political offices are, with a core element of his thesis being there are too many sociopolitical elites for the number of positions open to them, but 'it's the same thing' in light of the difficulties many providers have in expanding lounge access. 'There is a limited amount of space, but many more elites now, so to speak … low-rank elites.' Turchin said these low-rank elites, or 'ten-percenters,' don't have the status typically associated with elite status. 'The overproduction of lower-ranking elites results in decreased benefits for all.' When asked where else he sees this manifesting in modern life, Turchin said 'it's actually everywhere you look. Look at the overproduction of university degrees,' he added, arguing that declining rates of college enrollment and high rates of recent graduate unemployment support the decreasing value of a college diploma. 'There is overproduction of university degrees and the value of university degree actually declines. And so the it's the same thing [with] the lounge.' Noah Smith argues that elite overproduction manifests as a kind of status anxiety and malaise among the upper middle class. Many find themselves struggling to afford or access the very symbols of success they were promised—be it a prestigious job, a home in a desirable neighborhood, or, indeed, a peaceful airport lounge. He collects reams of employment data to show that Turchin's theory has significant statistical support from the 21st century American economy. Freddie DeBoer largely agrees, framing the issue as 'why so many elites feel like losers.' He focuses more on the creator economy than Smith, but asserts that he sees 'think many would agree with me about 'a pervasive sense of discontent among people who have elite aspirations and who feel that their years toiling in our meritocratic systems entitles them to fulfill those aspirations.' Delta's plan to restore status In its lounge strategy, Delta is trying to walk a fine line: Offering a premium service to a class of consumers that is becoming more and more mass-market. CEO Ed Bastian acknowledged as much on the company's latest earnings call. While touting the fortunes of Delta's target customers, households making $100,000 or more a year, Bastian noted the income cutoff 'is not, by the way, an elite definition—that's 40% of all U.S. households.' Beginning February 2025, Delta implemented new caps on annual lounge visits for American Express cardholders, setting a maximum of 15 visits per year and requiring exceptionally high annual spending ($75,000+) to re-unlock unlimited access. Basic Economy passengers, meanwhile, are permanently excluded from lounge access, further tightening entry. Travelers can only enter lounges within three hours of their flight's departure time, discouraging extended stays and unnecessary early arrivals. Delta is opening and upgrading lounges in key markets: New Delta One Lounges in Seattle, New York-JFK, Boston, and Los Angeles feature larger spaces, exclusive amenities, and new design concepts for premium passengers. Major expansions are under way in hubs like Atlanta, Orlando, Salt Lake City, and Philadelphia, with multiple new or enlarged clubs opening between spring and late 2025—some over 30,000 square feet in size, making them among the largest in the network. Renovations to existing lounges (e.g., Atlanta's Concourses A and C) are aimed at maximizing capacity and improving guest experiences. Delta is also exploring emergency overflow options and flexible staffing to address unpredictable surges, especially during weather and operational delays. Delta executives are optimistic. They predict that by 2026, most crowding issues—aside from extreme disruptions—will be resolved on 'almost all days.' Continued investments in larger, better-designed lounges, coupled with tighter access controls, are expected to restore the premium experience customers expect. However, critics note that crowding still occurs at peak times, especially in flagship locations, and design/layout flaws occasionally undermine even the newest clubs. The success of Delta's fix-it agenda is being closely watched by both rivals and loyal travelers. But Delta may be overmatched in rehabilitating the overcrowded airport lounge as a potent symbol of this broader malaise. What was once a marker of distinction is now a crowded, noisy, and often disappointing experience. The democratization of luxury, while laudable in some respects, has left many feeling that the rewards of success are increasingly out of reach—or at least, not what they used to be. As airlines grapple with how to restore the magic of the lounge, they are also confronting a deeper truth: in an age of elite overproduction, the promise of exclusivity is harder than ever to keep. For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on
Yahoo
40 minutes ago
- Yahoo
Rising Fiscal Deficits Drive Billions Into Credit
(Bloomberg) -- Investors are showing signs of pulling money out of government bonds and plowing it into US and European company debt. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US The High Costs of Trump's 'Big Beautiful' New Car Loan Deduction Can This Bridge Ease the Troubled US-Canadian Relationship? Trump Administration Sues NYC Over Sanctuary City Policy If the moves persist, money managers could be shifting what for decades has been market orthodoxy: that nothing is safer than buying US government debt. But as US fiscal deficits climb, hurt by tax cuts and rising interest costs, the government may look to borrow more, and company debt may be the safer option. In June, money managers pulled $3.9 billion from Treasuries, while adding $10 billion to European and US investment-grade corporate debt, according to EPFR Global data. In July, investors have added another $13 billion to US high-grade corporates, the largest net client purchasing in data going back to 2015, according to a separate note from strategists at Barclays on Friday. Michaël Nizard, a portfolio manager at Edmond de Rothschild Asset Management, started making the switch from government into corporate debt at the end of last year and is holding on to the position. And in a note in the latest week, BlackRock Inc. strategists wrote, 'Credit has become a clear choice for quality.' To the extent this shift is happening, it's a slow change. The US doesn't have foreign currency debt, and can print more dollars as it needs to. When money managers were alarmed about tariff wars in April, US Treasuries still performed better than corporate bonds, even if prices for both sectors broadly fell. And foreign demand for Treasuries has remained resilient, with holdings climbing in May. But tightening corporate bond spreads in recent months may be a function of government debt looking relatively weaker now. The US government lost its last triple A grade in May, when Moody's Ratings cut it to Aa1. The bond rater pointed to factors including the widening deficit and the rising burden of interest, noting that payments will likely absorb around 30% of revenue by 2035, compared with 18% in 2024 and 9% in 2021. And US President Donald Trump's sweeping tax cut bill could add about $3.4 trillion to US deficits over the next decade, according to projections from the nonpartisan Congressional Budget Office. At the same time, corporate profits remain relatively strong, and although there are some early reasons for caution, high-grade companies are generally generating enough earnings to easily pay their interest now. More US companies are topping earnings estimates this reporting season than the same period last year. Valuations for company debt have been high recently, reflecting investor demand for the debt. High-grade US corporate spreads have averaged below 0.8 percentage point, or 80 basis points, in July through Thursday. That's far below the mean for the decade of about 120 basis points, according to Bloomberg index data. Spreads for euro-denominated high-grade corporates have averaged about 85 basis points in July, compared with about 123 basis points for the decade. To some money managers, high valuations for corporate credit are cause to be wary. Gershon Distenfeld, a fund manager at AllianceBernstein Holding LP, pared back a position that favored credit risk to rates risk earlier this month. Dominique Braeuninger, a multi-asset fund manager at Schroders Investment Management Ltd., agrees that corporate bond spreads are too tight to make them attractive. And even if BlackRock is generally positive on corporate debt, it is underweight long-term high-grade notes because spreads are tight, while being overweight short-term credit. But to many market observers, the world appears to be shifting, and it makes sense to hold more corporate debt now. 'What we've seen on the government fiscal side is not great news,' said Jason Simpson, a senior fixed income SPDR ETF strategist at State Street Investment Management. 'Corporates seem to be chugging along nicely.' Week In Review The US leveraged loan market saw more than $83 billion of launches in the latest week, the second busiest on record, including a $7.57 billion two-part deal from Medline that is set to be the market's biggest pricing since 2015. Repricings were an important driver of volume, representing about two thirds of the tranches, as companies look to cut borrowing costs. Many of the loans that were repriced had already been repriced before The return of billion-dollar M&A deals was supposed to be a boon for Wall Street's leveraged finance desks. It's turning out to be anything but, as private equity cuts them out of many of the most coveted deals. Lenders are demanding higher pricing from two European leveraged-loan borrowers, a rare sign of difficulty these days in the buoyant market for sub-investment grade debt. Chinese developer Country Garden Holdings Co. has agreed to some key restructuring terms a group of bank creditors had demanded, potentially easing the path for an overall debt deal. PepsiCo Inc. sold $4.7 billion of bonds in a pair of offerings that included the longest-dated euro-denominated corporate new issue since February. FedEx Corp. followed Pepsi with a rare two-part euro debt sale as some of its existing notes in the single currency near maturity. Meanwhile, General Electric Co. sold $2 billion of investment-grade bonds, as did Lockheed Martin Corp. Saks Global Enterprises launched a debt exchange after weeks of negotiations with creditors as its $600 million fresh financing takes shape. Separately, Walgreens Boots Alliance Inc. launched a multi-currency debt tender. Banks led by UBS Group and Citigroup have offloaded about $2 billion of debt to support Patient Square Capital's acquisition of Patterson Cos., reviving a deal more than three months after the bonds and loans got stuck on their books due to tariff turmoil in the market. Patterson received about $1 billion of orders for the $500 million junk-bond part of the sale. Dog walking service Wag! Group Co. won court permission to try to slash debt and hand control to senior creditor Retriever LLC as early as next month. On the Move Carlyle Group Inc. recruited Alex Chi, who was most recently co-head of Americas private credit at Goldman Sachs Group Inc.'s asset management arm, to lead its direct lending business. Chi will join Carlyle in early 2026. BMO Capital Markets hired Nii Dodoo as head of private credit financing. Dodoo joins from BTIG, where he was a managing director. Christina Chan, BNP Paribas' regional head of loan sales and head of corporate loan syndicate, Asia Pacific, has left the bank. Toronto-Dominion Bank's US credit trading unit has re-hired Sarah Classen from Goldman Sachs Group Inc. for its voice-trading business. Classen starts in mid-September as a director in TD Securities' global US dollar fixed income trading team, based in New York. Ares Management Corp. hired Sarah Cole as a partner and co-head of Ares Global Capital Solutions to bolster its partnerships with banks, insurance companies and across capital markets broadly. Hedge fund Squarepoint Capital LLP recruited Nathan Fabius, a former strategist at Goldman Sachs Group Inc., to cover Latin American debt. Fabius joined Squarepoint this month and is based in New York. Jefferies Financial Group Inc. plans to double the number of people on its credit secondaries team by the end of 2025, as demand has surged from investors who want to buy and sell existing exposure amid a dearth of fresh deals. Ardagh Group SA creditors are set to pay billionaire owner Paul Coulson as much as $300 million as part of a deal to hand over the keys to the company. Burning Man Is Burning Through Cash Confessions of a Laptop Farmer: How an American Helped North Korea's Wild Remote Worker Scheme It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Elon Musk's Empire Is Creaking Under the Strain of Elon Musk A Rebel Army Is Building a Rare-Earth Empire on China's Border ©2025 Bloomberg L.P. 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