New questions for Boeing
The crisis at Boeing is deepening after safety inspectors at Alaska Airlines and United Airlines found loose bolts on some grounded 737 Max jetliners, prompting an investigation into the quality control process of one of the world’s best-selling plane models. .
The findings raise questions about whether regulators will Call for comprehensive safety recommendations For grounded Max 9 aircraft. He has also increased pressure on Boeing CEO David Calhoun
He was brought in to restore the company’s reputation in 2020 following the Max crashes in Asia and Africa, but faced major criticism over the reliability of production and its suppliers. are waiting,
Boeing shares fell 8 percent on Monday, Making it the worst performer on the S&P 500. They were down about 0.9 percent in premarket trading today.
One focus is on whether the aircraft panels were properly attached. National Transportation Safety Board investigators said Monday that four so-called stop bolts would normally be used to hold the panel, or door plug, firmly in place. But the plug, which was recovered from a science teacher’s backyard in Oregon, was found to have no such bolts. NTSB Chair Jennifer Homendy said, “We don’t know whether they were in there or not, or whether they came out during the violent explosive decompression event.”
The affected plane entered service in November but had already received three warnings about cabin pressure, the NTSB said.
A former employee of Spirit AeroSystems, a major Boeing supplier, alleged in court documents According to The Lever, he warned of a “high volume of defects” related to the door plugs.
Flight disruptions are expected to continue while airlines inspect the Max 9s. Hundreds of flights have been canceled due to safety investigations since last week’s deadly crash aboard an Alaska MAX 9 flight.
United and Alaska have more than 140 such aircraft in their combined fleets. Alaska said Monday it had found “some loose hardwareOn some grounded planes, while United discovered “bolts that required additional tightening” around the door plugs on about 10 planesAccording to Reuters.
Trouble is increasing for Boeing. The company is set to host an all-hands meeting today in which it will emphasize its commitment to safety.
But customers are getting upset: “They’ve had a quality control problem for a long time, and this is another manifestation of that,” tim clarkeThe CEO of Middle Eastern airline Emirates and a major aircraft buyer told Bloomberg.
Could the crisis spread beyond Max 9? Fatal plane crashes in 2018 and 2019, both involving a different MAX model, forced a global grounding of those MAX planes that lasted about 20 months.
Ronald Epstein, an analyst at Bank of America, wrote to investors this weekend that more regulatory scrutiny could slow the certification process around the new Max 7 and Max 10. He added that “this could temporarily impact 737 Max-9 deliveries, depending on the findings of the FAA and NTSB, as well as foreign regulators.”
What’s going on over here
European regulators investigate Microsoft’s ties with OpenAI. Following in the footsteps of Britain Competition and Markets AuthorityThe European Commission is investigating whether the tech giant’s blockbuster investment in the ChatGate maker last year falls under its merger guidelines, Regulators are concerned that Microsoft’s financial support gives it overwhelming influence over OpenAI, potentially jeopardizing competition.
A privately operated lunar mission fails. Despite a successful rocket launch, errors in the robotic lander’s propulsion system likely doomed the mission. The news raises questions about NASA’s effort to rely largely on commercial start-ups to get scientific experiments on the Moon. the agency plans return astronauts there For the first time since 1972.
Apple has set a release date for its virtual reality headset. iPhone maker will start Selling his $3,499 Vision Pro On February 2nd, pre-orders will begin the following week. Apple has identified this device as a big part of its future, even though existing VR and augmented reality headsets have not achieved mainstream popularity.
rush hour for activation
The past year has been a roller coaster ride for markets and M&A. Was very bad for. But for activist investors, 2023 was the busiest year on record, with 252 campaigns around the world, according to a new report from investment bank Lazard.
It’s a sign that shareholders – both professional dissidents and generally sober investors – were willing to shake up companies to boost their financial performance despite economic and market uncertainty.
Among Lazard’s most notable findings:
Some 183 investors launched active campaigns, up 21 percent from 2022, and a record 77 investors announced their first campaign.
Activists won 122 board seats, up 13 percent, but in line with previous levels.
67 Activists Campaign M&A in North America These included demands for a company to sell itself or break up, defying the slowdown in deal making.
The most engaged active investors were Elliott Management (15 campaigns), Starboard Value (8), Asia-focused Oasis Management (7), ValueAct Capital (7) and Ancora Advisors (6).
Companies targeted by activists included corporate giants such as 3M, Disney, Salesforce, and Starbucks. That said, businesses with market capitalizations between $5 billion and $20 billion were the most common targets.
That level of activity reflects confidence among investors, According to Rich Thomas, managing director of Lazard. “Activist campaigns are often amplified versions of the mass market,” he told DealBook. Such investors are “signaling that they are positive about the future,” particularly in the belief that the economy and trade-offs will improve.
One notable trend: climate activism has decreased, Such campaigns followed the rise of the so-called ESG movement, which prioritizes environmental, social and governance factors. (A prime example is Exxon Mobil’s debacle from Engine No. 1, a then-up-and-coming activist hedge fund.) As both companies and investors are scaling back their public support for ESG issues, in part Republican policymakers. Due to pressure, activists have become investors. Be more cautious in proceeding on this particular issue.
“The climate conversation has diminished significantly over the past year,” Katherine Knight, managing director of Lazard, told DealBook.
The money behind the Woods-Nike breakup
Tiger Woods’ decision End your decades old relationship Has created a stir in the sports world with Nike. For 27 years, few athletes were as inextricably linked with a brand as the golfing legend was with the Swoosh – or earned as much as he did.
Starr’s departure underscores how much the business of athlete endorsements has changed over the course of his career.
This relationship was era-defining and extremely profitable. Woods signed with Nike in 1996, the year he turned professional at age 20, with a five-year, $40 million deal. In turn, Nike became Woods’ golf apparel brand began to dominate his game, usually with his now-iconic red Nike Polo.
They took the relationship forward by signing contracts several times over the years Estimated $660 million,
Despite the challenges, both remained together. When Woods lost several sponsorships after news of his extramarital affairs surfaced, Nike stood by them, And after Nike stopped selling golf equipment in 2016, Woods continued to wear the brand’s apparel.
Today athletes want more than cash. They are increasingly seeking equity in the companies they support. Consider tennis star Roger Federer, a Nike alumnus, who is switching to Swiss shoe company On for a partial 3 percent stake. NFL players Patrick Mahomes and Christian McCaffrey also have equity stakes — Mahomes in recovery products company Hyperice and McCaffrey in sports drink maker BodyArmor.
It’s unclear where Woods will go On said he is not signing them – although he is expected to announce a new sponsor by the time he appears at the Genesis Invitational tournament in Los Angeles on February 15.
Nike still has high-profile golfers on its roster, including Rory McIlroy, Scottie Scheffler and Nelly Korda.
Bitcoin bulls wait for the SEC
Bitcoin’s rally stalled around $46,500 on Tuesday ahead of a possible decision this week by the SEC that could pave the way for the digital currency’s first spot exchange-traded fund, or ETF.
About a dozen companies, including crypto asset manager Grayscale Investments and fund giants like BlackRock and Fidelity, have applied to the agency in recent months to start offering so-called spot Bitcoin ETFs to clients. Bitcoin has climbed more than 170 percent in the past year. The agency is expected to greenlight the ETF, bringing crypto trading into the mainstream.
Despite a decade of denial, the cryptoverse is convinced. Last year, a federal court ordered the SEC to review its rejection of Grayscale’s Bitcoin fund application, calling the decision “arbitrary and capricious.” Since then, negotiations between companies and the SEC have intensified to address regulatory concerns, including fraud and market manipulation.
“The Grayscale team continues to work closely with the SEC to pave the way for bringing the Spot Bitcoin ETF to market,” a spokesperson for the company told DealBook. The SEC declined to comment.
SEC still can’t say – Despite the court’s decision and market expectations. Brett Redfern, former director of the SEC’s Division of Trading and Markets, told DealBook that the agency can deny applications outright or approve them with conditions such as insisting on increased protections for investors. “It may not be a clear victory,” he said.
Critics are urging the SEC to say no. “Approval of a spot Bitcoin ETF would be a regulatory mistake of historic proportions,” Dennis Kelleher, co-founder and CEO of financial reform nonprofit Better Markets, recently wrote. letter to agency, He argued that changing course on a Bitcoin ETF would produce “adverse consequences” for investors and others that “cannot be overstated.”
Reportedly close to Hewlett Packard Enterprise Deal to buy Juniper Networks, a communications infrastructure company, for approximately $13 billion. (WSJ)
george caseyA senior deal maker at law firm Shearman & Sterling is leaving Linklaters as his former employer prepares to merge with Allen & Overy. (Reuters)
US lawmakers are pressuring the Commerce Department to impose sanctions on G42, a technology company controlled by the ruling family in the United Arab Emirates, because of the company’s ties to China. (NYT)
david mccormickThe Republican financier, who is seeking to oust Senator Bob Casey, a Democrat from Pennsylvania, raised $5.4 million for his campaign last quarter. (Axios)
best among the rest
Natural disasters caused more damage 250 billion dollars loss Last year was the hottest on record, with less than half covered by insurance. (Bloomberg)
New research shows office return policies The companies’ profitability or stock performance has not been boosted. (business Insider)
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