Weekly Market Update - 30 September 2024
Parts Ban
The US Commerce Department is planning to reveal proposed rules that would ban Chinese- and Russian-made hardware and software for vehicles as soon as today, according to people familiar with the matter. Commerce has been meeting with industry experts in recent months looking to address security concerns raised by a new generation of cars. Many of today’s vehicles are equipped with devices connecting them to the internet or cloud services, making them potential hacking targets. The move would include bans on the use and testing of technology for automated driving systems and vehicle communications systems, the people said.
Source: Bloomberg
Pay Bump
Boeing offered its largest union a larger pay bump as it tries to overcome a debilitating strike that has shut down its aircraft manufacturing across the Pacific Northwest. The planemaker offered striking Seattle factory workers a 30% wage increase over four years, up from the 25% increase turned down this month by 33,000 members of the International Association of Machinists And Aerospace Workers. Boeing said the terms are final and only valid until the end of Sept. 27, as it seeks to raise pressure on the other side to accept. Meanwhile, the broader crisis that has engulfed Boeing since one of its jets suffered a mid-air blowout in January has helped prompt the US Federal Aviation Administration to overhaul its internal processes for identifying and addressing aviation safety risks. The changes underway are intended to strengthen oversight across the agency, FAA Administrator Michael Whitaker plans to tell members of the House Transportation and Infrastructure Committee’s aviation panel on Tuesday.
Source: Bloomberg
Raising Stakes
UniCredit Chief Executive Officer Andrea Orcel moved to more than double the lender’s stake in Commerzbank, a move condemned by German Chancellor Olaf Scholz. “Unfriendly attacks, hostile takeovers are not a good thing for banks, which is why the German government has taken a clear position here and made it very clear that we do not consider this to be an appropriate course of action,” Scholz told reporters. The statement came hours after UniCredit disclosed it had entered into derivative contracts that would allow it to raise its Commerzbank stake to around 21%, from 9% previously. The Italian lender used Barclays and Bank of America to help it quietly build up a stake in its German peer, according to people familiar with the matter.
Source: Bloomberg