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Boeing CEO Defends His Safety Record, Spars With Senators And Apologizes To Crash Victims’ Relatives

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5 months ago

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Boeing | AP News Image

During a bruising Senate hearing on Tuesday, Boeing CEO David Calhoun defended the company’s safety record while members accused him of prioritizing profits over safety, failing to protect whistleblowers, and even receiving excessive pay.

Relatives of victims killed in two Boeing 737 Max plane tragedies were in the room, some holding photos of their loved ones to remind the CEO of the dangers. Calhoun began his speech by standing, turning to face the families, and apologizing “for the grief that we have caused,” pledging to prioritize safety.

Calhoun’s testimony before Congress was the first by a high-ranking Boeing official since a panel blew off a 737 Max on an Alaska Airlines flight in January. The event did not result in significant injuries but aroused new concerns about the company’s best-selling commercial aircraft.

The tone of the hearing before the Senate investigations subcommittee was established hours earlier when the panel released a 204-page report containing additional charges from a whistleblower who expressed concern that defective parts were being used in 737s. The whistleblower is the latest in a long line of current and former Boeing employees who have expressed concerns about the company’s manufacturing practices, which federal regulators are investigating.

boeing

Boeing | AP News Image

Boeing CEO Defends His Safety Record, Spars With Senators And Apologizes To Crash Victims’ Relatives

“This hearing is a moment of reckoning,” subcommittee chairman Richard Blumenthal, D-Conn., declared. “It’s about a company, a once iconic company, that somehow lost its way.”

Sen. Josh Hawley, R-Mo., blamed Calhoun, claiming that the man who became CEO in January 2020 was too focused on the bottom line.

“You are cutting corners, you are eliminating safety procedures, you are sticking it to your employees, you are cutting back jobs because you are trying to squeeze very piece of profit you can out of this company,” Hawley stated in a higher tone. “You are strip-mining Boeing.”

Hawley repeatedly cited Calhoun’s $32.8 million salary from last year and questioned why the CEO had not resigned.

“Senator, I’m going to see this through. I’m proud to have taken this position. I’m pleased of our safety record, and I’m proud of our Boeing employees,” said Calhoun, who has announced his resignation by the end of the year.

Hawley interrupted. “You’re proud of the safety record?” he asked, perplexed.

“I am proud of every action we have taken,” Calhoun said.

Senators grilled Calhoun on allegations that Boeing managers penalized employees who raised safety concerns. They asked the CEO if he had ever spoken with any whistleblowers. He said he hadn’t but agreed it was a nice idea.

The latest whistleblower, Sam Mohawk, a quality assurance investigator at Boeing’s 737 assembly facility outside Seattle, told the subcommittee that “nonconforming” parts — those that could be defective or not properly documented — could end up in 737 Max aircraft.

Mohawk alleged that Boeing suppressed evidence after the Federal Aviation Administration informed the business that it planned to inspect the factory in June 2023.

“Once Boeing received such a notice, it ordered the majority of the (nonconforming) parts that were being stored outside to be moved to another location,” Mohawk stated in the report. “Approximately 80% of the parts were moved to avoid the watchful eyes of the FAA inspectors.”

Mohawk stated that the parts, which included rudders, wing flaps, and other components necessary for aircraft control, were later returned or lost.

A Boeing spokeswoman stated that the firm received the subcommittee report late Monday night and is evaluating the claims.

The FAA stated that it would “thoroughly investigate” the allegations. A spokeswoman stated that the government has received more reports of safety issues from Boeing personnel since the January 5 rupture on the Alaska Airlines Max.

The 737 Max has a troublesome history. After Max jets crashed in Indonesia in 2018 and Ethiopia in 2019, killing 346 people each, the FAA and other agencies grounded the aircraft for more than a year and a half. The Justice Department is considering prosecuting Boeing for breaking the terms of a 2021 settlement over charges that the corporation misled regulators who authorized the plane.

Mohawk told the Senate hearing that the quantity of problematic parts has increased dramatically since production of the Max resumed following the incidents. He claimed that the increase prompted superiors to instruct him and other employees to “cancel” documents indicating that the parts were unsuitable for plane installation.

Following the mid-air burst of a plug covering an emergency exit on an Alaska Airlines plane in January, the FAA temporarily grounded certain Max flights. The agency and the National Transportation Safety Board began separate investigations into Boeing, which are still ongoing.

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Boeing | AP News Image

Boeing CEO Defends His Safety Record, Spars With Senators And Apologizes To Crash Victims’ Relatives

Calhoun stated that Boeing has responded to the Alaska tragedy by reducing production, encouraging employees to raise safety problems, shutting down assembly lines daily to allow workers to discuss safety, and appointing a former Navy admiral to conduct a quality review. Late last month, Boeing delivered an improvement plan requested by the FAA.

Calhoun defended the company’s safety culture, admitting it “is far from perfect.”

The drumbeat of bad news for Boeing has continued throughout the last week. The FAA said it was looking into how falsely documented titanium parts ended up in Boeing’s supply chain; the company revealed that fasteners were incorrectly installed on the fuselages of some jets, and federal officials examined “substantial” damage to a Southwest Airlines 737 Max following an unusual mid-flight control issue.

During the hearing, Howard McKenzie, Boeing’s top engineer, stated that the problem with the Southwest airliner, which he did not describe in detail, was limited to that plane.

Blumenthal first requested Calhoun’s appearance before the Senate subcommittee when another whistleblower, a Boeing quality engineer, claimed that manufacturing flaws were posing safety hazards on two of Boeing’s largest jets, the 787 Dreamliner and the 777. He stated that the corporation needed to explain why the public should believe in Boeing’s work.

Boeing denied the whistleblower’s assertions, claiming that comprehensive testing and inspections revealed none of the issues the engineer had foreseen.

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Boeing | AP News Image

Boeing CEO Defends His Safety Record, Spars With Senators And Apologizes To Crash Victims’ Relatives

Last month, the Justice Department found that Boeing breached a 2021 settlement that protected the firm from fraud charges for allegedly deceiving regulators who approved the 737 Max. According to a senior department official, Boeing failed to implement steps to detect and prevent future infractions of anti-fraud rules.

Prosecutors have until July 7 to decide what they will do next. Blumenthal claimed that there is “mounting evidence” that the firm should be penalized.

Families of the victims of the Max crashes have frequently urged the Justice Department to punish the business and its leaders. They want a federal judge in Texas to overturn the 2021 deferred-prosecution agreement or DPA — effectively a plea deal — that allowed Boeing to escape prosecution for fraud in connection with the Max.

Catherine Berthet, whose daughter Camille perished in the second disaster, stated outside the Capitol on Tuesday that despite having three years to improve their safety process, they failed to do so. “Now they have to be made accountable.”

SOURCE – (AP)

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Trudeau Accelerates Bond Selloff Over Mass Spending Fears

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2 days ago

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2024-11-23

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Trudeau, Bond Market
Trudeau accelerated a bond selloff due to expectations of faster growth and a deeper deficit

Prime Minister Justin Trudeau has accelerated bond selloffs, citing fears of a larger deficit over his GST giveaway. Investors were concerned he was returning to his free-spending strategy as an election loom.

On Thursday, Trudeau unveiled a C$6.3 billion ($4.5 billion) tax relief and rebate program. It includes a two-month moratorium on federal sales tax on various commodities such as Christmas trees, wine, toys, and books and a C$250 check for almost 19 million Canadians, or over half of the population.

The declaration looked to mark the end of a brief period of fiscal restraint, as Finance Minister Chrystia Freeland committed to contain budget deficits to prevent stoking inflationary pressures.

Now that inflation has returned to the Bank of Canada’s 2% target, policymakers have reduced the benchmark interest rate by 125 basis points since June.

Trudeau’s Liberal government sees an opportunity to dig deeper into the public purse, but some analysts believe investors are keeping a careful eye on the country’s debt.

Bonds continued to fall on Thursday following the announcement, as the 10-year benchmark yield rose 7 basis points to 3.457%. After retail data showed a rise in consumer spending on Friday, it increased by up to 3.488%.

As the Trudeau government considers additional fiscal spending, concerns about Canada’s financial situation persist.

Budget Shortfall

Freeland has yet to publish final spending and income figures for the fiscal year that ended in October. Parliamentary Budget Officer Yves Giroux predicts a deficit of C$46.8 billion, much exceeding Freeland’s self-imposed aim of a C$40 billion shortfall.

Despite promises to reduce deficits, the Trudeau government continues to increase expenditure. This year’s budget includes a new capital gains tax inclusion rate to balance the cost of new housing and social initiatives.

This sparked anger from investors and entrepreneurs but allowed Freeland to present a consistent deficit despite significant spending.

The recent declaration indicates that Trudeau’s government no longer feels restrained in its capacity to use economic stimulus to restore favor.

Pierre Poilievre’s Conservatives have led most surveys by roughly 20 points for over a year. They have pounded the prime minister on affordability and promised to reduce taxes, especially income taxes. An election is expected in late October 2025.

The sales tax break will run from December 14 to February 15. The left-wing New Democratic Party intends to support it but has stated that it will continue to advocate for its permanent implementation and expansion to include additional items.

Let the Bankers Worry

Following Trudeau’s announcement, traders in overnight swap markets reduced their bets that the Bank of Canada will drop interest rates by 50 basis points for the second time in December, lowering the odds to fewer than 25% by the end of Thursday. As of late Friday morning, the odds were less than 17%.

The announcement also encouraged several experts to improve their short-term projections for Canada’s GDP. Analysts at the Bank of Montreal predict that the country’s GDP will increase at a 2.5% annualized rate in the first three months of 2025, up from 1.7%.

Speaking to reporters on Friday, Trudeau praised his government’s approach to program expenditure, claiming it fosters optimism and possibilities for families and the middle class.

“We’re focusing on Canadians. “Let the bankers worry about the economy,” Trudeau stated.

Related:

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

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Forced Sale Google Chrome Could Fetch $20 Billion

Published

3 days ago

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2024-11-21

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Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

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Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

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Bitcoin Has Set a New Record And Is Approaching $100,000.

Published

3 days ago

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2024-11-21

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Bitcoin

(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

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