-Boeing is set to cut 17,000 jobs and delay the first delivery of its 777X jet due to deepening losses and the effects of a weekslong strike by its largest labor union. Chief executive Kelly Ortberg announced the cuts, equivalent to 10% of the workforce, in a message to staff. Financial troubles have escalated at Boeing since the start of the year, with regulators demanding a slowdown in manufacturing to fix quality problems. Last month, 33,000 workers walked out of Boeing plants in Washington state after members of the machinists' union rejected a new contract, halting production of the company's 767 and 777 planes, cutting revenue and putting strain on suppliers and customers. S&P warned of a possible downgrade of Boeing's bonds to junk status, and analysts expect the company to raise at least $10B in new equity to shore up its financial position.
-China plans to issue more debt to boost the property market, recapitalize banks, and assist cash-strapped local governments. Minister of Finance Lan Fo’an announced the measures at a briefing in Beijing, suggesting that the government plans more stimulus measures to boost growth. The central government has significant room to increase the deficit and debt. Markets are waiting for signs that Beijing will increase fiscal spending to back up monetary stimulus plans amid doubts over the strength of the world's second-largest economy. The government will issue bonds to enable local governments to buy back idle land from developers and some of China's millions of unsold new homes. A special-purpose bond will be issued to help large banks replenish their capital, enhancing their ability to lend. Beijing will also provide more help to groups such as students and low-income earners.
-US bank stocks reached their highest level since the collapse of Silicon Valley Bank on Friday, as better-than-expected profits from JPMorgan Chase and Wells Fargo boosted hopes of an economic "soft landing" in the country. Quarterly earnings fell at both the largest and fourth-largest US banks by assets, with JPMorgan's net income declining 2% to $12.9B and Wells' falling 11% to $5.1B. Analysts had forecast JPMorgan's quarterly net income of $12.1B and Wells' $4.5B. JPMorgan's shares rose 4.4% in New York, while Wells' gained 5.6%. The KBW bank index, which tracks 24 of the country's largest lenders, jumped more than 3%, pushing the sector past its most recent high in February 2023 and to its highest close since April 2022. The earnings from JPMorgan and Wells are the latest sign that the Federal Reserve may have been able to tackle inflation without tipping the economy into recession.
-Tesla shares closed down nearly 9% on Friday, wiping $67B from the company's market valuation. Elon Musk's Robotaxi event disappointed investors with a lack of detail about a planned fleet of autonomous "Cybercabs". Tesla remains the most valuable car company in the world, with a market capitalization of $696B. Musk promised the new two-seated vehicle would be available for less than $30,000 and in production by the end of 2026, if it secures regulatory approval. However, he did not provide details on the technology behind the robotaxis or how he would reduce the cost of the self-driving vehicles.
-Sir Demis Hassabis, co-founder and CEO of Google DeepMind, has been awarded the Nobel Prize in chemistry for unlocking the structure of every protein known to humanity. The chemistry Nobel, shared with John Jumper and David Baker, was won for predicting the structure of every protein known to humanity using AlphaFold AI software. Hassabis now focuses on climate change and healthcare, working on six drug development programs with Eli Lilly and Novartis, focusing on disease areas like cancers and Alzheimer's. He expects to have a drug candidate in clinical trials within two years. Hassabis' other areas of focus include using AI to accurately model the climate and crossing the ultimate frontier in AI research: inventing machine intelligence at par with human intelligence.
-Tokyo will become the first part of Japan to ban customer harassment of service workers, amid a perceived worsening of consumer behavior linked to the return of inflation. The ordinance, passed by the metropolitan assembly, declares a blanket ban on customer harassment and calls on society to join in the effort to prevent abuse. This strikes a blow at the mantra of corporate Japan that "the customer is God." Economists argue that companies' reluctance to upset customers by raising prices was one of the reasons the Japanese economy spent so long mired in deflation. Now that sustained inflation has returned, senior executives in the restaurant, hospitality, and retail sectors say customers are unhappy.
-Iran has urged oil-rich Gulf states to remain neutral following a missile attack on Israel, as it seeks to maintain a diplomatic drive in the Middle East amid fears of an all-out war. The Islamic republic has cautioned its Arab neighbors not to facilitate an Israeli response, such as allowing Israel's war planes to use their airspace. The move came after Prime Minister Benjamin Netanyahu's government vowed a "deadly" response to Iran's missile attack and intensified its offensive against Hizbollah in Lebanon. Riyadh and Abu Dhabi are concerned that if Iran feels under grave threat, it could strike their oil infrastructure if Israel targets the republic's energy facilities. Iran is seeking to maintain a fragile rapprochement with arch-rivals like Saudi Arabia and the United Arab Emirates, urging them to discuss their differences and misunderstandings to resolve regional issues.
-TD Bank, a Canadian lender, has been fined over $3B in penalties for failing to maintain an anti-money laundering program, failing to file accurate currency transaction reports, and conspiracy to launder money. The bank was a hotbed for money-laundering, drug trafficking, and terrorist financing three years ago. Despite the bank's slogan as "America's Most Convenient Bank," executives claimed it was primed for growth in the US. The fines are the largest ever under the US's Bank Secrecy Act, which requires banks to be vigilant of suspicious money flows. TD's chief executive has announced plans to step down. The bank has also been hit with the largest civil penalty against a bank in the US Treasury's history. The fines are the largest ever under the Bank Secrecy Act.
-France's conservative premier, Michel Barnier, has unveiled a budget proposal that includes tax increases on businesses and wealthy individuals, a reversal of President Emmanuel Macron's pro-business policies. This reversal signals his diminishing political influence. French companies and foreign investors are anticipating further policy reversals and government belt-tightening that may damage fragile growth. The unstable business climate has already caused them to lose a deal in which a European company was circling a French one. The real problem is the uncertainty, as they struggle to tell clients what will happen next.
-Israeli forces have wounded two UN soldiers, marking the second consecutive day of attacks on peacekeepers in southern Lebanon. The strikes on the Unifil force deployed along Israel and Lebanon's de facto border have drawn international condemnation, following a military assault by Israeli forces in the south of the country. US defense secretary Lloyd Austin urged Israel to ensure the safety of the UN peacekeepers and called for a diplomatic solution as soon as possible. The UN mission described the fire on its post as a "serious development" and put UN peacekeepers at serious risks. The governments of France, Italy, and Spain, which contribute manpower to Unifil, condemned the "targeting" of peacekeepers, calling the attacks unjustifiable and urging an immediate end.
NEW YORK TIMES
-Former President Donald J. Trump has been a significant figure in international politics since leaving the White House, meeting with foreign leaders and operating from his Mar-a-Lago estate in Florida. Finland, a country seeking to join NATO to counter Russian aggression, sought Trump's support to ensure the U.S. Senate would ratify its membership bid. Finnish ambassador Mikko Hautala privately spoke with Trump to persuade him of the merits of joining the alliance, aiming to avoid opposition from Trump, who has long been hostile towards NATO. The strategy worked, and Trump remained publicly silent, allowing the Senate to approve Finland's admission to the alliance in August 2022. If Trump had spoken out against the move, it would have taken only 34 votes to block the two-thirds supermajority needed for ratification.
-Former President Barack Obama's admonition of Black men who are not "feeling the idea" of having a female president was a blunt and urgent statement that could potentially alienate a vital group of Democratic voters. Obama's remarks, which he made during his campaign for Vice President Kamala Harris, were seen as an urgent call to action to push Harris to victory. However, some Democrats saw Obama's tone as a threat to scapegoat some of the Democratic Party's most reliable supporters, alienating voters who may have grown disillusioned but are still persuadable.
-Kamala Harris, Vice President of the United States, has announced plans to form a bipartisan council of advisers on policy if she wins the White House. The move is part of the Harris campaign's strategy to court Republicans disaffected with former President Donald J. Trump. Harris has campaigned with former Representative Liz Cheney, the Wyoming Republican, and pledged to appoint a Republican to her cabinet if elected. At a campaign event in Scottsdale, Arizona, Harris said the council would be an attempt to "put some structure" around policy discussions that reach across the aisle. She emphasized the importance of having a healthy two-party system and emphasized the need for good ideas from all parties.
-Florida residents returned to neighborhoods impacted by power outages and debris as tens of thousands of emergency workers began repairing the destruction caused by Hurricane Milton. Initial assessments indicated that the damage inflicted by the storm, which made landfall as a Category 3 hurricane on Wednesday night south of Sarasota, was not as catastrophic as experts had feared, in large part because a dreaded surge of seawater around Tampa Bay never materialized. The storm cut an uneven path of damage across the state, submerging whole neighborhoods on the Gulf Coast while leaving others largely untouched and demolishing homes in unpredictable lines of tornadoes that tore through parts near the Atlantic Coast.
-China's fence in the Himalayas separates Tibet from Nepal, with barbed wire and concrete ramparts separating the two countries. In Nepal's Humla District, residents argue that China is encroaching on Nepali territory along several points of this distant frontier. Chinese security forces are pressuring ethnic Tibetan Nepalis not to display images of the Dalai Lama, the exiled Tibetan spiritual leader, in Nepali villages near the border. The recent proliferation of Chinese barriers and other defenses has divided the people, with thousands of Tibetans who once escaped Chinese government repression by fleeing to Nepal almost entirely vanishing.
-Boeing's new CEO, Kelly Ortberg, has announced plans to reduce its workforce by 10%, or about 17,000 jobs, as part of a restructuring effort to cut costs and improve plane production. The announcement comes as Boeing deals with a costly and disruptive strike that began nearly a month ago when members of its largest union, the International Association of Machinists and Aerospace Workers, rejected a contract offer and walked off the job. The union represents over 33,000 Boeing employees. Boeing also reported $5B in new costs associated with several commercial and defense programs. Ortberg said that restoring the company requires tough decisions and structural changes to ensure it stays competitive and delivers for customers over the long term. The cuts, which will include layoffs and not filling positions as employees leave, amount to a 10% reduction of Boeing's 170,000 employees.
-Rescuers are searching for survivors and bodies in central Beirut after Israeli airstrikes in two densely populated neighborhoods spread fear that no place in the country was safe from the Israeli military onslaught against Hezbollah. The Israeli airstrikes killed at least 22 people and wounded over 100, the deadliest attack in Beirut in over a year of fighting between Israel and Hezbollah, a Shiite militant group. The area hit is home to both Sunni and Shiite Muslims, and many residents fear the strikes will intensify sectarian tensions in Beirut. Since the war escalated last month, most Israeli airstrikes near Beirut have targeted predominately Shiite neighborhoods in the city's southern suburbs, where Hezbollah holds sway. The conflict raged as Israeli Jews prepared to observe Yom Kippur for the first time since the October 7 attacks.
-Thermite, a mixture of aluminum and iron oxide, has been used to devastating effect in both world wars. In Ukraine, it has been used primarily in artillery shells and hand grenades. Now, it is being attached to drones that sweep over Russian defensive positions, raining burning metal over the enemy before crashing. The flames ignite Russian troops' vegetation, exposing them and their equipment to direct attack. The dragon drones are part of the revolution of drone warfare that has transformed the battlefield, becoming a laboratory for improvisation and adaptation. Captain Viacheslav, who shared videos of his pilots testing the drones and using them in combat outside Pokrovsk, in eastern Ukraine, said it worked quite well. As more drones fill the skies, Ukrainian soldiers began posting dozens of videos of the attacks on social media, hoping to spark fear along with fire.
NEW YORK POST
-Meghan McCain threatened to share her late father's honest thoughts about Kamala Harris after the vice president invoked the memory of John McCain at an Arizona campaign rally. The 39-year-old pundit claimed that Democrats have "bastardized" her father's memory for their own political aims. She wrote on X, "Now, I know democrats want to reinvent history and turn my Dad into any illusion you guys need him to be depending on the political moment you need to bastardize his memory for." McCain issued the threat after Harris shared an anecdote of an interaction she had with the late Arizona senator in 2018, prior to his death from a brain tumor. Early voting is down significantly from 2020, and the data hold bad news for this candidate. Hurricane Milton produced dozens of tornadoes and rainfall estimates that topped more than a foot across west-central Florida, but a sight now opening up across many counties is that of sinkholes.
-Uber and Lyft have been enforcing lockouts on their New York City rideshare apps to avoid paying millions of dollars in pay. The lockouts are an attempt to make drivers appear busier on paper, potentially saving the companies nearly $30 million in pay by convincing the city not to raise a key portion of its minimum wage formula during its annual review. The frequent lockouts, which come without warning, have left Big Apple drivers scrambling to support their families. Uber and Lyft have told drivers they are forced to "limit access" because of rules from New York City's Taxi and Limousine Commission. Uber spokesperson Josh Gold stated that the characterization of lockouts as a loophole is inaccurate and has asked for a correction.