Aerospace: Boeing’s new 737 orders fall to zero
Boeing said this week it has slowed production of its 737 Max jet while the plane remains grounded by the Federal Aviation Administration, said David Gelles in The New York Times. The company did not sell a single Max jet last month, after the planes were involved in two fatal crashes, in Indonesia and Ethiopia. At least one airline has canceled orders, but there remain “thousands of outstanding orders,” which represent “billions of dollars for Boeing’s bottom line.” The FAA needs to certify a software update before it permits the Max to return to the sky.
Tariffs: A new European front in the trade war
The U.S. threatened to impose tariffs on $11 billion worth of European goods, including fish, wine, and cheese, said Daniel Shane and Ivana Kottasová in CNN.com. Trade Representative Robert Lighthizer proposed the levies this week “in retaliation for the European Union allegedly providing subsidies to Airbus,” an ongoing dispute that dates back to 2004. The threat further escalates tensions between President Trump and the European bloc. Trump has already imposed tariffs on European steel and aluminum and is considering levies of up to 25 percent on European vehicle imports.
Tesla: A big shortfall in deliveries
Tesla badly missed expectations on first-quarter deliveries of new vehicles, said Dana Hull in Bloomberg.com. The automaker said deliveries fell 31 percent from the fourth quarter in 2018, stoking “concern over slackening demand for the Model 3 sedan” after a federal tax credit for Tesla customers was slashed from $7,500 to $3,750. Tesla blamed obstacles in shipping to Europe and China, which CEO Elon Musk called the “most insane logistics challenge” he’d ever seen. Tesla said that more than 10,000 vehicles were still in transit by the end of March, but the sales can’t be booked before the deliveries are complete.
Bank of America: Raising minimum pay to $41,000
Bank of America said this week it plans to raise its minimum wage for employees to $20 per hour by 2021, said Hugh Son and John Melloy in CNBC.com. The bank currently pays its lowest-level employees $15 an hour—up from $13.50 in 2016—but will boost that to $17 by May 1. “If you get a job at Bank of America, you’ll make $41,000” a year, said CEO Brian Moynihan. The announcement came the day before Moynihan testified before the House Financial Services Committee, which has placed the big banks under renewed scrutiny.