Business
Boeing faces potential strike as workers reject contract in landslide vote
Boeing factory workers in the United States voted on Thursday to go on strike, rejecting a contract offer from the aviation company.
The workers, who are represented by the International Association of Machinists and Aerospace Workers District 751, expressed dissatisfaction with the proposed deal. The vote to reject the contract was 94.6 percent, and the vote to strike was 96 percent, according to union president Jon Holden.
The strike will affect two major plane assembly plants in the Puget Sound region and involve about 33,000 workers.Holden said, “Our members spoke loud and clear tonight. We strike at midnight.”
Boeing indicated its willingness to resume negotiations despite the vote outcome. The company said in a statement, “We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement.”
Under the leadership of new CEO Kelly Ortberg, Boeing had offered a 25-percent wage increase over four years and a commitment to invest in the Puget Sound area. However, workers were dissatisfied, stating that the wage hike was not as generous as portrayed, and the proposed agreement eliminated an annual bonus.
The workers had sought a 40 percent wage increase. Critics argued that the proposed 25 percent increase was misleading because it did not account for the loss of the annual bonus. Other issues included the absence of a restored pension and a perceived lack of firm commitments on future projects in the Seattle region.
Paul Janousek, an electrician in Everett, highlighted the dissatisfaction, saying, “They’re talking about a 25 percent increase and it’s not.” He estimated his raise at only about nine percent after the removal of the annual bonus.
Some workers also expressed frustration over the compensation received by former CEOs Dennis Muilenburg and Dave Calhoun during challenging times for the company. Joe Philbin, a structural mechanic, noted the long-term benefits of striking. “Striking isn’t ideal, but it’s for the best for your long-term well-being,” he said.
The International Association of Machinists and Aerospace Workers has a history of strikes, with the most recent one occurring in 2008. Holden initially supported the deal as the best achievable without a strike but acknowledged the power of the union members in making the final decision.
Richard Aboulafia, managing director of AeroDynamic Advisory, suggested that a lengthy strike could impact Boeing’s recovery efforts. Nonetheless, a recent strike at Boeing supplier Spirit AeroSystems lasted less than two weeks.
Boeing has faced scrutiny following a January incident involving a Boeing 737 MAX plane. Holden expressed hope for renewed negotiations, stating that the vote “sends a strong message that our members deserve better.”
The workers, who are represented by the International Association of Machinists and Aerospace Workers District 751, expressed dissatisfaction with the proposed deal. The vote to reject the contract was 94.6 percent, and the vote to strike was 96 percent, according to union president Jon Holden.
The strike will affect two major plane assembly plants in the Puget Sound region and involve about 33,000 workers.Holden said, “Our members spoke loud and clear tonight. We strike at midnight.”
Boeing indicated its willingness to resume negotiations despite the vote outcome. The company said in a statement, “We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement.”
Under the leadership of new CEO Kelly Ortberg, Boeing had offered a 25-percent wage increase over four years and a commitment to invest in the Puget Sound area. However, workers were dissatisfied, stating that the wage hike was not as generous as portrayed, and the proposed agreement eliminated an annual bonus.
The workers had sought a 40 percent wage increase. Critics argued that the proposed 25 percent increase was misleading because it did not account for the loss of the annual bonus. Other issues included the absence of a restored pension and a perceived lack of firm commitments on future projects in the Seattle region.
Paul Janousek, an electrician in Everett, highlighted the dissatisfaction, saying, “They’re talking about a 25 percent increase and it’s not.” He estimated his raise at only about nine percent after the removal of the annual bonus.
Some workers also expressed frustration over the compensation received by former CEOs Dennis Muilenburg and Dave Calhoun during challenging times for the company. Joe Philbin, a structural mechanic, noted the long-term benefits of striking. “Striking isn’t ideal, but it’s for the best for your long-term well-being,” he said.
The International Association of Machinists and Aerospace Workers has a history of strikes, with the most recent one occurring in 2008. Holden initially supported the deal as the best achievable without a strike but acknowledged the power of the union members in making the final decision.
Richard Aboulafia, managing director of AeroDynamic Advisory, suggested that a lengthy strike could impact Boeing’s recovery efforts. Nonetheless, a recent strike at Boeing supplier Spirit AeroSystems lasted less than two weeks.
Boeing has faced scrutiny following a January incident involving a Boeing 737 MAX plane. Holden expressed hope for renewed negotiations, stating that the vote “sends a strong message that our members deserve better.”
Applications for US unemployment benefits fell to the lowest level since May, indicating the job market remains healthy despite a slowdown in hiring.
Initial claims decreased by 12,000 to 219,000 in the week ended September 14, according to Labor Department data released Thursday. That was below all estimates in a Bloomberg survey of economists. The period also corresponds with the so-called reference week when the survey is conducted for the September employment report.
Continuing claims, a proxy for the number of people receiving benefits, also dropped in the previous week, to the lowest in three months.
The four-week moving average, a metric that helps smooth out volatility in the data, fell to 227,500, the lowest since June.
What Bloomberg economics says…
“Initial jobless claims declined more than expected in the survey week for September’s employment report, due in part to difficulty adjusting the data around a major holiday like Labor Day. Claims tend to be depressed in holiday-shortened weeks, then rebound the following week — so the current data have limited value as a guide to September’s payroll print,” said Eliza Winger.
Claims for unemployment benefits have remained subdued in recent months even as labor demand cooled. The US central bank’s decision to lower interest rates by a half percentage point this week reflected policymakers’ intention to maintain what Federal Reserve Chair Jerome Powell described as “still a solid” labor market.
“We’re trying to achieve a situation where we restore price stability without the kind of painful increase in unemployment that has come sometimes with disinflation,” Powell said during a press conference Wednesday following the rate-cut announcement.
Initial claims, before adjustment for seasonal factors, rose by 6,436 to 184,845. Texas, New York and California saw the largest increases. Applications in Massachusetts fell by the most since the end of April.
Initial claims decreased by 12,000 to 219,000 in the week ended September 14, according to Labor Department data released Thursday. That was below all estimates in a Bloomberg survey of economists. The period also corresponds with the so-called reference week when the survey is conducted for the September employment report.
Continuing claims, a proxy for the number of people receiving benefits, also dropped in the previous week, to the lowest in three months.
The four-week moving average, a metric that helps smooth out volatility in the data, fell to 227,500, the lowest since June.
What Bloomberg economics says…
“Initial jobless claims declined more than expected in the survey week for September’s employment report, due in part to difficulty adjusting the data around a major holiday like Labor Day. Claims tend to be depressed in holiday-shortened weeks, then rebound the following week — so the current data have limited value as a guide to September’s payroll print,” said Eliza Winger.
Claims for unemployment benefits have remained subdued in recent months even as labor demand cooled. The US central bank’s decision to lower interest rates by a half percentage point this week reflected policymakers’ intention to maintain what Federal Reserve Chair Jerome Powell described as “still a solid” labor market.
“We’re trying to achieve a situation where we restore price stability without the kind of painful increase in unemployment that has come sometimes with disinflation,” Powell said during a press conference Wednesday following the rate-cut announcement.
Initial claims, before adjustment for seasonal factors, rose by 6,436 to 184,845. Texas, New York and California saw the largest increases. Applications in Massachusetts fell by the most since the end of April.
Business
Stock market today: BSE Sensex hits fresh lifetime high, goes above 83,600; Nifty50 above 25,550
Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, surged in trade on Friday to hit lifetime highs following a more than expected 50 basis points rate cut by the US Federal Reserve. While BSE Sensex climbed above 83,600, Nifty50 was above 25,550. At 9:20 AM, BSE Sensex was trading at 83,636.77, up 689 points or 0.83%. Nifty50 was at 25,571.70, up 194 points or 0.77%.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal, says, “A 25bps rate cut is already discounted and can lead to profit booking in the market.However, a 50bps rate cut by the Fed could bring some cheer to market sentiments. Also, Fed commentary will be important as it will give clarity on the quantum and duration of the rate cut cycle. We expect the market to remain volatile in the near term with rate-sensitive sectors in focus.”
Nagaraj Shetti of HDFC Securities noted that the short-term trend of Nifty remains positive with range-bound action, and any dips to the support levels of 25,200-25,100 could present a buying opportunity. A decisive move above 25,500 levels might propel Nifty towards higher targets.
In the global markets, U.S. stocks closed with modest losses on Wednesday after the Federal Reserve cut interest rates by 50 basis points, exceeding expectations. The S&P 500 futures rose 0.5%, while Japan’s Topix gained 2%, and Australia’s S&P/ASX 200 rose 0.2%. Euro Stoxx 50 futures also climbed 0.7%.
In the forex market, the euro, Japanese yen, and offshore yuan experienced slight declines against the US dollar. Oil prices fell in Asian trading on Thursday following the larger-than-expected Federal Reserve interest rate cut, which raised concerns about the U.S. economy.
Several stocks are in the F&O ban period today, including Balrampur Chini Mills, Hindustan Copper, GNFC, RBL Bank, PNB, Bandhan Bank, Biocon, Birlasoft, LIC Housing Finance, and Granules. Foreign portfolio investors turned net buyers with Rs 1154 crore, while domestic institutional investors bought shares worth Rs 152 crore. The net long position of FIIs increased from Rs 2.2 lakh crore on Tuesday to Rs 2.37 lakh crore on Wednesday.
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal, says, “A 25bps rate cut is already discounted and can lead to profit booking in the market.However, a 50bps rate cut by the Fed could bring some cheer to market sentiments. Also, Fed commentary will be important as it will give clarity on the quantum and duration of the rate cut cycle. We expect the market to remain volatile in the near term with rate-sensitive sectors in focus.”
Nagaraj Shetti of HDFC Securities noted that the short-term trend of Nifty remains positive with range-bound action, and any dips to the support levels of 25,200-25,100 could present a buying opportunity. A decisive move above 25,500 levels might propel Nifty towards higher targets.
In the global markets, U.S. stocks closed with modest losses on Wednesday after the Federal Reserve cut interest rates by 50 basis points, exceeding expectations. The S&P 500 futures rose 0.5%, while Japan’s Topix gained 2%, and Australia’s S&P/ASX 200 rose 0.2%. Euro Stoxx 50 futures also climbed 0.7%.
In the forex market, the euro, Japanese yen, and offshore yuan experienced slight declines against the US dollar. Oil prices fell in Asian trading on Thursday following the larger-than-expected Federal Reserve interest rate cut, which raised concerns about the U.S. economy.
Several stocks are in the F&O ban period today, including Balrampur Chini Mills, Hindustan Copper, GNFC, RBL Bank, PNB, Bandhan Bank, Biocon, Birlasoft, LIC Housing Finance, and Granules. Foreign portfolio investors turned net buyers with Rs 1154 crore, while domestic institutional investors bought shares worth Rs 152 crore. The net long position of FIIs increased from Rs 2.2 lakh crore on Tuesday to Rs 2.37 lakh crore on Wednesday.
On Wednesday, Wall Street stocks experienced a slight decline following the Federal Reserve’s announcement of a half-percentage-point interest rate cut. The central bank’s chair, Jerome Powell, assured a “careful” approach to lowering rates, acknowledging the progress made in combating inflation in the United States.
The Federal Reserve’s decision was supported by an 11-to-1 vote in favor of reducing the benchmark rate to a range between 4.75 percent and 5.00 percent.The larger-than-expected rate cut surprised some analysts who had anticipated a quarter-point decrease. Additionally, policymakers projected an extra half-point of cuts by the end of this year and a further percentage point of cuts in 2025.
Meanwhile, major US stock indices fluctuated between positive and negative territory following the Fed’s decision. The Dow Jones Industrial Average fell 103.08 points, or 0.25%, to 41,503.10, the S&P 500 lost 16.32 points, or 0.29%, to 5,618.26 and the Nasdaq Composite lost 54.76 points, or 0.31%, to 17,573.30. Briefing.com noted that the Fed’s decision would be met “with both elation and criticism,” as the larger rate cut could appease those who believe the Fed is lagging in preventing a hard landing. However, it may also face criticism from those who think the more aggressive rate cut was unwarranted given broader economic trends, with concerns that it could reignite inflation.
During a news conference, Powell described the US economy as being in “good shape,” highlighting lower inflation and robust growth. He emphasized the Fed’s desire to maintain a strong labor market. The decision to implement a larger rate cut was based on various economic data points, leading policymakers to conclude that monetary decisions had been “appropriately restrictive” and that a “more neutral” approach was now necessary. Powell signaled that investors should expect more interest rate cuts in the future but cautioned that the central bank would proceed carefully and evaluate the matter “meeting by meeting.”
In Europe, stock markets in Paris and London closed lower, while Frankfurt ended the day flat. The dollar initially experienced a significant drop against the euro and other currencies but later recovered. The Fed now anticipates only a half-percentage point of cuts remaining in 2024, which is lower than the three-quarter percentage point that traders had been expecting. Traders are now focusing on the upcoming announcement by the Bank of England on Thursday. The central bank is expected to maintain its current stance following a regular meeting, as official data released on Wednesday showed that British annual inflation remained at 2.2 percent in August.
(With inputs from agencies)
The Federal Reserve’s decision was supported by an 11-to-1 vote in favor of reducing the benchmark rate to a range between 4.75 percent and 5.00 percent.The larger-than-expected rate cut surprised some analysts who had anticipated a quarter-point decrease. Additionally, policymakers projected an extra half-point of cuts by the end of this year and a further percentage point of cuts in 2025.
Meanwhile, major US stock indices fluctuated between positive and negative territory following the Fed’s decision. The Dow Jones Industrial Average fell 103.08 points, or 0.25%, to 41,503.10, the S&P 500 lost 16.32 points, or 0.29%, to 5,618.26 and the Nasdaq Composite lost 54.76 points, or 0.31%, to 17,573.30. Briefing.com noted that the Fed’s decision would be met “with both elation and criticism,” as the larger rate cut could appease those who believe the Fed is lagging in preventing a hard landing. However, it may also face criticism from those who think the more aggressive rate cut was unwarranted given broader economic trends, with concerns that it could reignite inflation.
During a news conference, Powell described the US economy as being in “good shape,” highlighting lower inflation and robust growth. He emphasized the Fed’s desire to maintain a strong labor market. The decision to implement a larger rate cut was based on various economic data points, leading policymakers to conclude that monetary decisions had been “appropriately restrictive” and that a “more neutral” approach was now necessary. Powell signaled that investors should expect more interest rate cuts in the future but cautioned that the central bank would proceed carefully and evaluate the matter “meeting by meeting.”
In Europe, stock markets in Paris and London closed lower, while Frankfurt ended the day flat. The dollar initially experienced a significant drop against the euro and other currencies but later recovered. The Fed now anticipates only a half-percentage point of cuts remaining in 2024, which is lower than the three-quarter percentage point that traders had been expecting. Traders are now focusing on the upcoming announcement by the Bank of England on Thursday. The central bank is expected to maintain its current stance following a regular meeting, as official data released on Wednesday showed that British annual inflation remained at 2.2 percent in August.
(With inputs from agencies)
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