GM: Unions get closer to an agreement
The United Auto Workers reached a preliminary deal with General Motors this week to end its monthlong strike, said Michael Wayland in CNBC.com. Details of the agreement were not immediately released, but the union, representing 48,000 picketing GM employees, said it had “achieved major wins.” Workers “are expected to receive raises and bonuses as part of the accord,” as well as assurances that GM will invest in domestic manufacturing operations and retain the same “gold standard” health insurance the company had threatened to amend. The stoppage has already cost the automaker more than $2 billion.
Boeing: Chairman loses title over 737 Max
Boeing stripped CEO Dennis Muilenburg of his title as chairman of the board this week as the company struggles to get the 737 Max jet back off the ground, said Natalie Kitroeff and David Gelles in The New York Times. The decision was “the culmination of a months-long debate within the company over whether to hold top executives accountable.” The board made its move before Muilenberg’s scheduled testimony in front of Congress, “to avoid the perception that scrutiny from lawmakers prompted a change.” Muilenburg will be replaced by David Calhoun, an executive with experience in corporate crises at General Electric and Caterpillar.
Banks: JPMorgan results point to consumer strength
JPMorgan Chase beat Wall Street expectations, announcing a profit this week of $9.1 billion for the quarter, said Hugh Son in CNBC.com. The firm also hit record revenue on the strength of its consumer banking unit. CEO Jamie Dimon said that the bank’s results indicated strength in the economy, noting that “the consumer remains healthy with growth in wages and spending” even as some measures of business sentiment have dropped.
WeWork: Urgently searching for cash
WeWork is laying off 2,000 workers and scrambling to secure new financing before its funds run out by the end of November, said Gillian Tan in Bloomberg.com. The troubled co-working giant was mulling a financial package from SoftBank, already its largest shareholder, this week that would hand SoftBank control of the company. Unable to sell shares in a public offering, WeWork is also considering an offering of $5 billion in bonds, which might pay a yield of as much as 15 percent—comparable to taking a loan on a consumer credit card—to compensate investors for the risk.