Raphael Stevens

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    Space startup Varda raises $187 million in funding to make drugs in orbit

    Varda Space Industries closed its latest round of funding, bringing the total capital raised to $329 million.
    The space startup is planning to launch a fifth orbit by the end of the year.
    Varda’s main mission is to launch and return drugs made in space.

    Pavlo Gonchar | Lightrocket | Getty Images

    Space startup Varda announced on Thursday that it has raised $187 million in Series C funding, led by venture capital firms Natural Capital and Shrug Capital, to continue advancing drug manufacturing in space.
    The latest round included participation from Peter Thiel, Lux Capital, Khosla Ventures and Caffeinated Capital. It brought the total capital Varda’s raised to $329 million.

    “By expanding, we can support work on more complex molecules and ultimately increase cadence to achieve the turnaround times the pharmaceutical industry expects,” Chief Science Officer Adrian Radocea said in a press release Thursday.

    Follow and listen to CNBC’s “Manifest Space” podcast, hosted by Morgan Brennan, wherever you get your podcasts.

    Varda’s main mission is to launch and return drugs made in space. The startup has said the medicines crystallize differently in orbit due to the gravity differences, which would allow it to complete drugs that are currently difficult to manufacture.
    “And so what this series C allows us to do is two big things. First is increase cadence, meaning more flights more often, so the rate of flying,” Varda CEO Will Bruey told CNBC’s Morgan Brennan for the “Manifest Space” podcast. “And also allows us to build out our biologics lab, which is our way of determining which drug molecules make sense to send a microgravity through a bunch of testing on the ground and then preparing that formulation for flight.”
    In 2024, the space startup’s W-Series 1 capsule received FAA approval to return after successfully creating the drug Ritonavir the previous year.
    So far, Varda said the company has been able to complete three space launches. Now, a fourth is in orbit, and the company expects to launch a fifth by the end of the year. Varda makes all of its parts in house.

    “With this capital, Varda will continue to increase our flight cadence and build out the pharmaceutical lab that will deliver the world’s first microgravity-enabled drug formulation,” Bruey said.
    Varda Space Industries is the first company to process materials outside the International Space Station.
    Recently, the space company has also operated a testbed for the U.S. government to use the W-series reentry vehicles to advance technology.
    Varda said it has expanded into Huntsville, Alabama, and opened a laboratory in El Segundo, California, to begin work to crystallize more drugs.
    “Our new lab space is an investment in our belief that in-space pharmaceutical manufacturing will drive the foundation of the orbital economy,” Radocea said.
    Correction: Varda makes all of its parts in house and is based out of Hunstville, Alabama. A previous version of this story misstated the system. More

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    Business class+? Delta says segmentation is coming to high-end cabins

    Delta Air Lines is studying how to segment its premium cabins.
    The airline could offer different options that are similar to changes it’s made in the coach cabin.
    Other airlines offer more spacious seats within business class and first class.

    Nurphoto | Nurphoto | Getty Images

    Delta Air Lines is studying new types of airplane tickets — this time in the premium cabins at the front of the plane.
    Airlines spent years slicing up their coach cabins, from extra legroom seats to bare-bones basic economy fares that don’t allow changes or include a seat assignment. Delta was a pioneer in the U.S. when it launched basic economy fares over a decade ago with rivals United Airlines, American Airlines and others following suit.

    But now airline executives are turning their focus to their premium cabins, where demand is holding up better this year than in the back of the plane.

    Read more CNBC airline news

    “Premium has certainly been where our margins have continued to expand, and so we’re highly focused on continuing to provide improved service to those customers and more segmentation,” Delta President Glen Hauenstein said on an earnings call with analysts on Thursday. “The segmentation that we’ve done in main cabin is kind of the template that we’re going to bring to all of our premium cabins over time because different people have different needs.”
    Delta’s revenue from premium seats like business class rose 6% in the first half of the year to $10.6 billion, while main cabin economy ticket revenue dropped 4% to $11.7 billion. The carrier, the most profitable U.S. airline, has said for years that its share of sales from high-end seats and its lucrative loyalty program has been growing.

    American Airlines new business-class suite.
    American Airlines

    U.S. carriers have largely ditched international first class in favor of larger business class cabins, where lie-flat seats have more amenities than seats of past decades.
    Hauenstein declined to detail possible changes to the premium seats. It’s not clear whether Delta would consider a cheaper first- or business-class ticket that might not include perks like lounge access or seat assignments, or a potentially bigger seat that could come with add-ons that standard tickets don’t have.

    But Hauenstein said Delta is testing some possibilities on customers and surveying travelers.
    “We haven’t rolled it out yet, not because we don’t have the technological capability, but we want to make sure that customers understand what we’re putting in market and that they find value in it,” he said.
    Henry Harteveldt, travel consultant and president of Atmosphere Research Group, said he’s not convinced that Delta would consider a stripped-down premium fare.
    “Airplanes are expensive … and it’s a lot easier when you give your passengers a reason to pay you more for your product than to pay you less,” he said.

    United Airlines new Polaris cabin configuration
    United Airlines

    Other airlines are working to outfit their top-tier cabins to offer a few seats that have extra room and even space for a visitor, like United’s planned update to its long-haul Polaris cabin and American’s new seats on some of its Boeing 787 Dreamliners.
    Delta’s partner, Virgin Atlantic, offers the “Retreat Suite” at the front of its Airbus A330’s Upper Class cabin that can be converted “so up to four people can enjoy an intimate dinner together in their own private social space.”
    When asked whether Delta will update some of its highest-end seats, CEO Ed Bastian told CNBC Wednesday that “the premium products have had life cycles … and what we thought was state of the art six or seven years ago no longer is.
    “We’re continuing to upgrade and update it. So that’s part of the cost of business,” he said. “But our product will be very, very nice.” More

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    Trump’s tariffs on Brazil could make your coffee even more expensive

    President Donald Trump plans to impose a 50% tariff on Brazilian imports, which will hit coffee drinkers.
    The U.S. imports most of its coffee from Brazil.
    Coffee companies may try to mitigate the impact of the tariff by sourcing from other countries, but consumers will likely end up paying more for their java.

    A person takes a coffee at a coffee shop in Rio de Janeiro, Brazil July 10, 2025.
    Pilar Olivares | Reuters

    President Donald Trump’s proposed 50% tariff on Brazilian imports is bad news for coffee drinkers.
    Brazil, the largest U.S. supplier of green coffee beans, accounts for about a third of the country’s total supply, according to data from the U.S. Department of Agriculture.

    Coffee beans need to grow in a warm, tropical climate, making Hawaii and Puerto Rico the only suitable places in the United States to farm the crop. But, as the world’s top consumer of coffee, the U.S. requires a massive supply to stay caffeinated. Mintel estimates that the U.S. coffee market reached $19.75 billion last year.
    The increase in trade duties could leave consumers with even higher costs after several years of soaring coffee prices. Inflation-weary consumers have seen prices for lattes and cold brew climb as droughts and frost hit the global coffee supply, particularly in Brazil. Earlier this year, coffee bean futures hit all-time highs. They rose 1% on Thursday, although still well below the record set in February.
    To be sure, there’s still time for Brazil to strike a deal with the White House before the tariffs go into effect on Aug. 1. Plus, food and beverage makers are hoping that the Trump administration will grant exemptions for key commodities. U.S. Department of Agriculture Secretary Brooke Rollins said in an interview in late June that the White House is considering exemptions for produce that can’t be grown in the U.S. — including coffee.
    But if that doesn’t happen, coffee companies like Folgers owner J.M. Smucker, Keurig Dr Pepper, Starbucks and Dutch Bros will face much higher costs for the commodity. Giuseppe Lavazza, chair of Italian roaster Lavazza, said on Bloomberg TV on Thursday morning that the latest tariff could mean “a lot of inflation” for the coffee industry.
    Roasters will try to mitigate the impact of the higher tariff, but it won’t be easy.

    “Every company is always trying to eke out the next efficiency, to dial into their operations or find the way to minimize inflationary pressures, but a 50% tariff on a commodity that fundamentally is not available in the U.S. — you can’t really do much with that,” Tom Madrecki, vice president of supply chain and logistics for the Consumer Brands Association, a trade group that represents the consumer packaged goods industry.
    One mitigation tactic could be to import beans from countries other than Brazil, but companies will likely still be paying more for the commodity.
    “A characteristic of tariffs, especially when you have tariffs on multiple countries at once, is that not just the inbound cost rises. It allows the pricing floor to also rise,” Madrecki said. “If you have cheaper coffee in a country different than Brazil, you’re not inclined to sell it at a 30% lower cost. You’re going to try to bump your coffee up a bit more, too.”
    At-home coffee brands, like JM Smucker’s Dunkin’ and Kraft Heinz’s Maxwell House, have already been hiking their prices this year in response to spiking commodity costs. More price increases could be on the way for consumers, although retailers may push back.
    Keurig Dr Pepper would consider additional price hikes in the latter half of the year to mitigate the impact of tariffs, CEO Tim Cofer said in late April, after Trump introduced his initial round of so-called reciprocal duties.
    And Smuckers warned investors on its quarterly conference call in early June that tariffs on coffee were weighing on its profits. Coffee accounts for roughly a third of the company’s revenue.
    “Green coffee is an unavailable natural resource that cannot be grown in the continental United States due to its reliance on a tropical climate,” Smuckers CEO Mark Smucker said. “We currently purchase approximately 500 million pounds of green coffee annually, with the majority coming from Brazil and Vietnam, the two largest coffee-producing countries.”
    Vietnam, which announced a tentative trade deal with the White House earlier this month, supplies about 8% of the U.S.’s green coffee beans. Under the agreement, the U.S. will impose a 20% duty on Vietnamese imports.
    Consumers who prefer a caramel macchiato from Starbucks for their caffeine hit will likely see a more muted impact on their wallets.
    After several quarters of sluggish U.S. sales, Starbucks CEO Brian Niccol said in late 2024 that the company wouldn’t raise prices in 2025, in the hopes of winning back customers who had complained about how expensive its drinks had gotten. While it waits for its turnaround to take hold, Starbucks might choose to swallow the higher coffee costs.
    The coffee giant also benefits from its diversity — both in suppliers and the breadth of its menu, which now includes the popular Refreshers line. Starbucks imports its coffee from 30 different countries, and roughly 10% of its cost of goods sold in North America comes from coffee.
    The new trade duty could mean a 0.5% increase in Starbucks’ North American cost of goods sold, assuming about 22% of its beans come from Brazil, TD Cowen analyst Andrew Charles wrote in a note to clients on Thursday. Starbucks’ packaged drinks, which are distributed by Nestle, could see their cost of goods sold increase 3.5%. Altogether, that represents a 5-cent drag on annual earnings per share, according to Charles.
    For rival Dutch Bros, higher coffee costs also wouldn’t hurt its bottom line much. Coffee accounts for less than a tenth of the drive-thru coffee chain’s cost of goods sold. Assuming that Dutch Bros sources more than half of its coffee from Brazil, its cost of goods sold would rise just 1.3%, according to Charles’ estimates. More

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    ‘YOLO’-buying EVs: As $7,500 tax credit ends, consumers may rush to cash in. Here’s how to get a good deal

    President Donald Trump’s so-called big beautiful bill ends federal EV tax credits after Sept. 30.
    Consumers may rush to buy or lease an electric vehicle before that deadline to get a tax break.
    Tesla said now is the time to “YOLO” purchase an EV, referencing the fast-approaching deadline.

    Halfpoint Images | Moment | Getty Images

    President Donald Trump’s signature on his so-called big beautiful bill was a death blow for tax credits that lowered the cost of electric vehicles.
    Those tax credits — worth up to $7,500 and $4,000 for purchases of new and used EVs, respectively — won’t be available after Sept. 30. Another tax break that’s ending lets dealers pass along savings on EV leases.

    The credits were supposed to last for another seven years, through 2032.
    Analysts think the abrupt end to these federal subsidies will trigger a rush by consumers to buy or lease an EV in coming months.
    “This is going to be the summer of the EV,” Ingrid Malmgren, senior policy director at Plug In America, a nonprofit advocating for a quicker transition to electric cars, previously told CNBC.

    Automakers have certainly taken notice.
    Tesla, the nation’s largest EV maker, has taken to email blasts and social media to spread the word that the federal tax credits are soon disappearing.

    “If there ever was a time to yolo your car purchase, it’s now,” the carmaker wrote Tuesday on X. (YOLO means you only live once.)
    “Order Soon to Get Your $7,500,” read a separate Tesla newsletter emailed Tuesday.
    (Elon Musk, Tesla’s CEO and former head of the so-called Department of Government Efficiency, spoke out against the legislation that axed the tax credits, lambasting the trillions of dollars it adds to the national debt.)

    ‘Sense of urgency’

    This is a theme consumers will likely see through the summer, analysts said.
    Automakers and dealers will likely “promote a sense of urgency: ‘Buy now, the EV incentive is going away,'” said Stephanie Valdez Streaty, director of industry insights at Cox Automotive.
    Another factor that may speed up purchases: Consumers must have the vehicle in their possession by Sept. 30, Malmgren said in an interview after the bill passed.
    More from Personal Finance:’Big beautiful bill’ doesn’t eliminate taxes on Social SecurityTax changes under Trump’s ‘big beautiful bill’ — in one chartTrump’s ‘big beautiful bill’ slashes CFPB funding
    In the eyes of the IRS, it won’t be enough that consumers order one by Sept. 30 and take possession later, Malmgren said. They must be driving it off the lot by that deadline, she said.
    “Having this deadline so soon, just in a couple months, definitely lights a fire under people’s butts,” Malmgren said. “I expect that people who are kind of thinking about it or on the fence about it may take action now.”
    Consumers will likely see some “really good” financial incentives like discounts or financing deals before Sept. 30, on top of the federal tax credits, Valdez Streaty said.
    For example, Ford extended a “complimentary home charger and standard installation offer” in the U.S. until Sept. 30, Stacey Ferreira, the automaker’s director of U.S. sales strategy, wrote on the company’s website Tuesday.

    ‘The training wheels are being taken off’

    Maskot | Maskot | Getty Images

    The Inflation Reduction Act, which provided historic investments by the U.S. to fight climate change, created, extended or enhanced tax breaks (including the EV credit) meant to reduce the nation’s planet-warming greenhouse gas emissions.
    EVs are “unambiguously better for the climate” than gasoline-powered cars, even when looking across the entire lifecycle of the vehicle, from manufacturing to recycling, according to researchers at the Massachusetts Institute of Technology.
    However, they’re generally more expensive — a primary sticking point for would-be buyers, Valdez Streaty said.
    The average transaction price for a new EV in June was about $56,000, before any tax credits or incentives, according to Cox Automotive data. By comparison, the average price for all new vehicles was about $49,000, it said.

    Financial incentives have helped bring EVs closer to price parity with traditional cars, and indeed, there’s hardly a price premium for some models, analysts said.
    The average EV buyer got financial incentives worth over $8,400 in June, in addition to federal tax credits, Valdez Streaty said. Consumers may also be eligible for subsidies offered by their state or electric utility, Malmgren said.
    The end of the federal EV tax credits is like “the training wheels are being taken off” of a nascent technology, Valdez Streaty said. “And those training wheels have helped balance and support EV adoption.”
    While EVs are generally more expensive upfront, they may save consumers money over the long term, since recurring charges for maintenance and fuel are generally cheaper, experts said.

    What to know before getting an EV

    Start soon: EV demand may surge if there’s a rush to buy this summer, and prices may rise if supply is constrained, analysts said. It’s in consumers’ best interest to start sooner rather than later, they said. Ensure your dealer has registered with the IRS to provide a federal tax credit before buying, they said.
    Stack tax credits: “Do your research to figure out what credits you’re eligible for,” Valdez Streaty said. Consumers may be able to stack subsidies from the federal government, and their state and utility company, analysts said. “Stacking of EV credits” can be a strong value proposition, especially in areas where gasoline prices are high and electricity rates are low, Valdez Streaty said.

    Look at used EVs: “There are a ton of great deals on used EVs,” Malmgren said. “If I were shopping for a vehicle right now, that’s what I’d be looking at.” Used EVs are comparable on price to used gasoline-powered cars, have far fewer maintenance issues, and have strong warranties on their batteries and drive train, she said.
    Consider a lease: Buying a new EV comes with various eligibility requirements for the driver and car to qualify for a tax credit. Leasing sidesteps many of them — opening up those federal subsidies to a wider audience, Malmgren said. Check the lease agreement before signing to ensure the price reflects the tax credit.
    Opt for upfront tax credit: Consumers should opt to get their tax break upfront as a discount instead of later when filing their annual tax return, Malmgren said. “Given all the uncertainty right now with the administration and IRS, I’d advise against doing the tax credit later,” she said. “Plus you compound your value because that’s money you don’t finance.”

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    Fed considering changes to what constitutes a ‘well-managed’ bank

    The Federal Reserve building is seen before the Federal Reserve board is expected to signal plans to raise interest rates in March as it focuses on fighting inflation, in Washington, D.C., on Jan. 26, 2022.
    Joshua Roberts | Reuters

    The Federal Reserve is taking another step toward easing regulation for big financial institutions, this time changing the definition for a “well-managed” bank.
    Under a proposal put up for comment Thursday, the Fed would allow banks with one “deficient” rating to still be considered well-managed. The ratings run across three criteria: capital, liquidity and governance and controls.

    Rules released in 2018 say any deficiencies prevent banks from meeting the management standard, which in turn prevents from them certain activities such as making acquisitions.
    “In this way, the proposal would provide greater recognition of a firm’s overall condition in determining well-managed status,” Fed Vice Chair for Supervision Michelle Bowman said in a statement. “By addressing this mismatch between ratings and overall firm condition, the proposal adopts a pragmatic approach to determining whether a firm is well managed.”
    However, the move drew an immediate rebuke from Bowman’s predecessor, Michael Barr, who said the idea would weaken important safeguards.
    “The current proposal would fundamentally change the long-established concept of well managed and would introduce greater risk to the banking system,” Barr said in a statement.
    Governor Adriana Kugler also signaled apprehension about the move, saying she agrees there are problems with the current system but said there are “risks going too far in the other direction” with the new plan.
    The proposal comes just a few weeks after the Fed approved new capital rules for big banks, which also drew objections from Barr and Kugler. More

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    Delta shares jump 10% after airline reinstates 2025 profit outlook as CEO says bookings stabilized

    Delta Air Lines’ third-quarter earnings and revenue forecasts topped estimates.
    CEO Ed Bastian told CNBC that bookings have stabilized after months of lower-than-expected demand.
    But Delta expects 2025 adjusted earnings of between $5.25 and $6.25 a share, down from a January forecast of more than $7.35 a share.

    A Boeing 767-332(ER) from Delta Air Lines takes off from Barcelona El Prat Airport in Barcelona on Oct. 8, 2024.
    Joan Valls | Nurphoto | Getty Images

    Delta Air Lines reinstated its 2025 profit outlook Thursday and said it expects a stronger outlook for summer travel than Wall Street anticipated.
    Bookings have stabilized after months of lower-than-expected demand, CEO Ed Bastian said in an interview, though at lower levels than the airline forecast at the start of the year.

    Delta shares jumped 10% in premarket trading after releasing results. Other airlines’ shares also rose after Delta’s report.
    “People are still traveling,” Bastian said. “What they’ve done is they’ve shifted their booking patterns a little bit. They’re holding off making plans until they’re a little closer in to their travel dates. And so that’s shifted some of our bookings and yield management strategies.”
    That includes trimming capacity outside of top travel periods, as well as what Bastian described as “surgical” cuts after the peak summer travel season ends around mid-August.
    Here’s how the company performed in the three months ended June 30, compared with what Wall Street was expecting, based on consensus estimates from LSEG:

    Earnings per share: $2.10 adjusted vs. $2.05 expected
    Revenue: $15.51 billion adjusted vs. $15.48 billion expected

    Delta, the first of the U.S. airlines to report results, expects adjusted earnings per share of between $1.25 and $1.75 in the third quarter, compared with Wall Street analysts’ forecast for $1.31 a share. It also said it expects revenue that’s flat to up 4%, topping forecasts for a 1.4% sales increase.

    Delta posted strong growth from sales of higher-priced seats like first class and from its lucrative American Express partnership, which increased 10% in the second quarter from the same period last year to $2 billion. Airlines have become more reliant on travelers who are willing to spend more to fly rather than more price-sensitive consumers.

    Read more CNBC airline news

    Corporate travel has also stabilized as Bastian said businesses have more clarity and confidence than they did earlier this year, but it’s in line with last year, not the 5% to 10% growth Delta expected at the start of the year.
    While fares have dropped across the U.S., Delta’s premium-product revenue rose 5%, as sales from the main cabin fell 5% from last year. Its total revenue per seat mile, a measure of how much an airline is bringing in for the amount it flies, fell 4% in the second quarter.
    The airline also cut its 2025 profit forecast from what it expected earlier this year.
    Delta expects adjusted full-year earnings of $5.25 to $6.25 a share, down from a forecast in January of more than $7.35 a share, when Bastian predicted 2025 would be the carrier’s best year ever.
    In April, Delta said it couldn’t reaffirm that forecast as on-again, off-again tariffs and hesitant consumers dented bookings. Rival U.S. carriers also pulled their guidance, and Delta and other airlines have announced plans to cut flights after the summer peak.
    Bastian said Delta is prepared to continue updating its premium products.
    “Whether it’s the Delta lounges or the quality of the product on board, the premium products have had life cycles … and what we thought was state of the art six or seven years ago no longer is,” he said. “We’re continuing to upgrade and update it.”
    In the second quarter, Delta posted adjusted revenue of nearly $15.51 billion, up 1% from a year ago. Its net income in the three months ended June 30 totaled $2.13 billion, or $3.27 a share, up 63% on the year. That compares with net income of $1.3 billion, or $2.01 a share, in the same period last year. Adjusting for one-time items, its per-share net income was $1.37 billion, or $2.10 a share.

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    Want to be a good explorer? Study economics

    Deep in Zambia’s Copperbelt province, explorers from Kobold Metals are testing the ground for a new mine shaft. Although the arc of copper running through central Africa was first mapped by Victorian explorers and was mined by a colonial British firm, the search for deposits has been only occasionally fruitful in the years since. Kobold’s discovery is the biggest in a century. Born in California and backed by Bill Gates, the company uses everything from ancient maps to artificial intelligence in order to learn about what lies beneath the ground. Perhaps its biggest idea, though, is an economic model, pioneered at Stanford University, that helps process vast reams of information. It guides where Kobold drills, the most important decision for any miner. More

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    Jane Street is chucked out of India. Other firms should be nervous

    INDIAN REGULATORS speak with a little more flamboyance than their peers. On July 4th the Securities and Exchange Board of India (SEBI) accused Jane Street, a trading firm, of perpetrating a “sinister scheme” of manipulation in the country’s manic options market. In a lengthy document, it concluded that “the integrity of the market, and the faith of millions of small investors and traders, can no longer be held hostage to the machinations of such an untrustworthy actor.” More