Business
Airbus says will buy 'major activities' of subcontractor Spirit
European aerospace giant Airbus announced on Monday its intention to acquire major activities related to Airbus from subcontractor Spirit AeroSystems. This move comes as US competitor Boeing prepares to take over the majority of Spirit AeroSystems' operations.
Boeing to buy Spirit Aero in $4.7 bln deal after months of talks
Boeing announced on Monday that it will acquire its struggling supplier Spirit AeroSystems in a $4.7 billion all-stock deal, concluding months of negotiations. The total value of the transaction, including Spirit's net debt, is approximately $8.3 billion. Spirit shareholders will receive Boeing shares at an exchange ratio between 0.18 and 0.25, valuing Spirit shares at about $37.25 each. As part of the deal, Airbus will take over certain commercial work packages from Spirit.
Boeing restarts new plane deliveries to China
New Boeing deliveries to China have been off and on since 2019 after two fatal crashes of MAX 8 jets and amid intensifying tensions over issues ranging from technology to national security between Washington and Beijing.
Boeing offered 737 MAX plea deal, lawyer of crash victims' families says
The US Justice Department has offered Boeing a plea deal to avoid trial over the two deadly 737 MAX crashes, causing outrage among victims' families. The deal reportedly includes a fine and oversight by an external supervisor. Families, represented by lawyer Paul Cassell, strongly oppose the agreement and are prepared to contest it in court if Boeing accepts. Boeing, contacted by AFP, declined to comment. The DOJ previously considered prosecuting Boeing for violating a prior deferred prosecution agreement related to the crashes that claimed 346 lives.
BlackRock to buy UK data group Preqin for $3.2 bln
BlackRock has agreed to acquire UK data firm Preqin for £2.55 billion ($3.23 billion) in cash, enhancing its presence in the private markets data sector. The acquisition will integrate Preqin's data and research capabilities with BlackRock's Aladdin portfolio management software. Preqin will remain available as a standalone solution. Expected to generate $240 million in recurring revenue in 2024, Preqin has grown 20% annually over the past three years. Founder Mark O'Hare will join BlackRock as vice chair. Sudhir Nair, BlackRock's Aladdin head, emphasized the goal of making private markets investing more accessible.
WestJet Airlines strike to continue until deal reached with mechanics, union says
Bret Oestreich, president of the Aircraft Mechanics Fraternal Association, said the two sides will reconvene with a mediator on Sunday. The union represents around 680 workers at WestJet, including aircraft maintenance engineers, who went on strike Friday after 97% of its members rejected a pay deal reached in May. "All we want to do is to go back to the table," said Oestreich. "The strike will be in effect until we get an agreement."
The Warren Buffett Legacy: What's next for his billions?
Warren Buffett, chairman of Berkshire Hathaway, has revised his will to redirect his considerable fortune away from the Bill & Melinda Gates Foundation posthumously. Instead, Buffett plans to allocate his wealth to a new charitable trust managed by his three children, expressing confidence in their values and ability to distribute the funds effectively. This decision marks a significant shift from previous plans where the Gates Foundation and family-related charities were primary beneficiaries of over 99% of his estate.
Canadian airline WestJet cancels at least 150 flights following a surprise strike by mechanics union
The strike came after the federal government issued a ministerial order for binding arbitration on Thursday. That followed two weeks of turbulent discussions with the union on a new deal. On Thursday, WestJet said the union "confirmed they will abide by the direction. Given this, a strike or lockout will not occur, and the airline will no longer proceed in cancelling flights".
Boeing in talks with US Department of Justice to resolve charges over safety lapses
Boeing Co. is in talks with the US Justice Department to resolve potential charges related to the 737 Max crashes. The settlement may include a corporate monitor. DOJ prosecutors seek charges, but it's uncertain if Boeing will plead guilty. Challenges continue with ongoing investigations and financial strains.
Alaska Air returns 737 MAX 9 involved in mid-air blowout to Boeing
"They have taken possession of it and the registration has been changed," an Alaska Airlines spokesperson said, adding an order for a new 737-10 has also been placed.
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US inflation cools in May; consumer spending rises moderately
ART HOGAN from B RILEY WEALTH notes the stable 2.6% core PCE, potentially leading to Fed rate cuts. The overall economic indicators suggest a favorable environment for equities, with ongoing downward trends in treasury yields.
Pakistan passes tax-laden budget ahead of talks on fresh IMF loan
Pakistan's parliament passed a tax-heavy finance bill aimed at avoiding a debt default, amid slowest South Asian growth. The budget targets 13 trillion rupees in revenue, a 40% increase, to secure a $6-8 billion IMF bailout. Criticized by opposition, it raises taxes sharply on textiles, mobiles, real estate, and incomes, foreseeing 3.6% growth and 12% inflation.
S&P Global announces insider Martina Cheung as CEO
S&P Global announced on Thursday that it has appointed Martina Cheung as CEO, effective Nov. 1. Cheung will succeed Douglas Peterson, who has been the chief executive since 2013. Cheung has been with S&P Global for 14 years and has held multiple leadership roles within the company.
'Exploitative': News nonprofit sues OpenAI, Microsoft for copyright infringement
The nonprofit, which produces Mother Jones and Reveal, said that OpenAI used its content without permission and without offering compensation, violating copyrights on the organization's journalism. The lawsuit, filed in a New York federal court, focuses on how AI-generated summaries of articles threaten publishers - a move CIR called exploitative. "It's immensely dangerous," Monika Bauerlein, the nonprofit's CEO, told AP. "Our existence relies on users finding our work valuable and deciding to support it."
H&M to offer more discounts as it battles to revive sales
H&M has over the past year or so said it was prioritising profitability over sales volumes in order to reach a 10% operating margin goal, one it hopes to achieve this year. But this has come at a cost in terms of market share, and in March the Swedish retailer said it was shifting focus to boosting sales to keep up with the competition.
US sanctions Boeing for sharing information about 737 Max 9 investigation
US investigators are sanctioning Boeing for sharing unauthorised information about a federal investigation into a door plug blowout on a Boeing 737 Max 9. The National Transportation Safety Board accused Boeing of violating investigative regulations by providing non-public information to the media and speculating about possible causes of the incident. Boeing's recent actions have led to sanctions, including restricted access to investigative information and a subpoena to appear at an investigative hearing in August.
