Business News

US intensifies oversight of Boeing, will begin production audits after latest mishap for planemaker

The Federal Aviation Administration says it will increase oversight of Boeing and audit the production of the 737 Max 9 jetliner after a panel blew off an Alaska Airlines plane in midflight last week. It was the latest in a string of mishaps at the troubled aircraft maker. The FAA said Friday that it would judge whether Boeing and its suppliers followed approved quality procedures. The agency also indicated that it is reconsidering its longstanding practice of relying on employees at aircraft manufacturers to perform some safety analysis of planes. The move comes just a day after the FAA announced an investigation into whether Boeing failed to make sure a fuselage panel that blew off was safe and manufactured to meet the design that regulators approved.

Olympics brings on its first beer brand as a global sponsor — Budweiser’s AB InBev

LONDON (AP) — The International Olympic Committee has signed the first beer brand in the 40-year history of a sponsorship program that earns billions of dollars for the organization and international sports. The deal was announced Friday by the IOC and Budweiser maker Anheuser-Busch InBev for the next three Summer and Winter Games. The Paris Olympics open on July 26, and the deal also includes the 2026 Winter Games in northern Italy, then the Los Angeles Olympics in 2028. The IOC and AB InBev say Corona Cero, the zero-alcohol version of the Corona, will be “global beer sponsor of the Olympic Games.”

How attacks on ships in the Red Sea by Yemen’s Houthi rebels are crimping global trade

LONDON (AP) — The attacks on commercial ships in the Red Sea by Yemen’s Iran-backed Houthi rebels have rerouted trade away from a crucial corridor for consumer goods and energy supplies. That’s delaying shipments and raising transport costs. Oil, natural gas, grain and everything from toys to electronics typically travel through the waterway separating Africa and the Arabian Peninsula, heading to the Suez Canal, where usually 12% of the world’s trade passes. Some of the world’s largest container shipping companies and oil giant BP have been sending vessels on longer journeys around Africa that bypass the Red Sea. Early Friday, U.S. and British warships launched waves of air, ship and submarine-launched missiles at Houthi positions in Yemen.

Bank profits mostly fall in fourth quarter, but banks remain upbeat on economy and consumer

NEW YORK (AP) — Three of the nation’s biggest banks said Friday that their profits fell last quarter, as JPMorgan Chase, Bank of America and Citigroup deal with the lingering effects of higher interest rates and the industry costs of last year’s banking crisis that caused the collapse of Silicon Valley Bank and Signature Bank. But setting aside the turbulence of the banking panic, the banks had a mostly strong 2023 driven by a resilient job market, a U.S. consumer who continues to spend and not fall behind on their debts despite the impact of inflation, and higher interest rates that have boosted revenue across the industry.

Wholesale inflation in US declined last month, signaling that price pressures are still easing

WASHINGTON (AP) — U.S. wholesale inflation fell for a third straight month in December, further evidence that price pressures in the economy are easing. The government’s producer price index — which tracks inflation before it reaches consumers — declined 0.1% from November to December. Measured year over year, producer prices rose by a mild 1% in December. Prices of goods fell 0.4% from November to December, pulled down by a 12.4% drop in the wholesale price of diesel fuel. The cost of fresh eggs plunged nearly 21%. Friday’s wholesale figures reinforced the view that U.S. inflation pressures are slowing, if not always consistently. The producer figures, which reflect prices charged by manufacturers, farmers and wholesalers, can eventually influence consumer prices.

Stock market today: Stocks drift near records after a cooler update on inflation

NEW YORK (AP) — Stocks are drifting, oil prices are rising and bond yields are easing as cross currents sweep Wall Street. The S&P 500 was virtually unchanged Friday, still hanging within 0.3% of its all-time high set two years ago, as earnings season kicked off with mixed results from Delta Air Lines and others. The Dow was down 152 points, and the Nasdaq composite was flat. Crude rose on worries about potential disruptions to supplies. Bond yields sank after a report showed inflation at the U.S. wholesale level was weaker than expected. That bolstered expectations for upcoming cuts to rates by the Federal Reserve.

New funds will make investing in bitcoin easier. Here’s what you need to know

NEW YORK (AP) — Nearly a dozen new bitcoin funds began trading in U.S. markets for the first time Thursday, providing increased access to the cryptocurrency for everyday investors. ETFs give investors a way to get in on trading in oil, gold, corporate bonds and now bitcoin without actually having to own a barrel of oil, a bar of gold, or a bitcoin. That means you don’t have to find a place to store them. These funds closely track the price of bitcoin and provide an entry for smaller investors into the cryptocurrency, which now cost more than $47,000 each. Bitcoin rose 2% Thursday and trading in the bitcoin ETFs is mixed.

Delta posts a $2 billion quarterly profit, but shares dip as airline trims forecast of 2024 earnings

Delta Air Lines says it closed 2023 strong and expects another good year in 2024. But the shares are falling because Delta trimmed a forecast for full-year 2024 earnings. The airline said Friday that it earned $2 billion in the fourth quarter, and revenue for all of last year was a record. CEO Ed Bastian says the Atlanta-based airline just had the best single day for cash sales in its history this week. The airline is feeling flush, and so it’s ordering more planes. Delta says it will buy 20 Airbus A350s for international service, and take options to get 20 more.

UnitedHealth shares tumble after health care giant reports soaring medical costs in 4Q

UnitedHealth Group turned in a better-than-expected fourth quarter but surprised Wall Street with medical costs that soared 16%. Shares of UnitedHealth and other major health care and insurance providers slipped Friday after the company announced results. Health insurers dealt with rising medical costs for much of last year. UnitedHealth has said it saw a jump in claims from its Medicare Advantage business, as more seniors got heart and orthopedic outpatient procedures. Company leaders said claims also grew toward the end of the year because people sought vaccines and had other care addressed when they got those shots.

Taiwan prepares to elect a president and legislature in what’s seen as a test of control with China

TAIPEI, Taiwan (AP) — Taiwanese are preparing to elect a new president and legislature Saturday in what many see as a test of control with China which claims the self-governing island republic as its own. The presidential race pits Vice President Lai Ching-te against Hou Yu-ih of the Nationalist Party and Ko Wen-je of the Taiwan People’s Party. The U.S. strongly backs Taiwan against China’s military threats and the Biden administration plans to send an unofficial delegation to meet with the winner. By law all forms of campaigning must end by midnight.