Hamilton Journal News : 2021-01-08

6 : 6 : 6

6

A6 | FRIDAY, JANUARY 8, 2021 COMPLETE. IN-DEPTH. DEPENDABLE. BUSINESS CONTINUING­COVERAGE Boeingwill pay $2.5B settlement Penalty stems from conspiracy charge related to 2 deadly crashes. 346 people were killed. On both flights, MCASwas activated by a faulty reading from a single sensor. The systemrepe­atedly pushed the planes’ noses down, and pilots were unable to regain control. After the planeswere grounded worldwide, Boeingchan­gedMCAS so that it always uses two sensors, along with other changes to make the automated system less powerful and easier for pilots to over-ride. InNovember, theFAAappr­oved Boeing’s changes, and several carriers including American Airlines have resumed using the planes. could point a plane’s nose down if sensors indicated the plane might be in danger of an aerodynami­c stall — that it might fall from the sky. Boeing downplayed the significan­ce of MCAS and didn’tmention it in airplane manuals. Most pilots didn’t know about it. The first airlines began flying the 737Max in mid-2017. On Oct. 29, 2018, aMax operated by Indonesia’s Lion Air plunged into the Java Sea. The FAA let the Max keep flying, and on March 10, 2019, another Max operated by Ethiopian Airlines crashed nearly straight down into a field. In all, “Boeing’s employees chose the path of profit over candor,” saidDavid Burns, acting assistant attorney general for the Justice Department’s criminal division. Boeing began working on the Max in 2011 as answer to a new, more fuel- efficient model from Euro- pean rival Airbus. Boeing admitted in court filings that two of its technical pilot experts deceived the FAA about a flight-control system called the Maneuverin­g Characteri­sticsAugme­ntation System, or MCAS, that fine. Prosecutor­s said Boeing employees concealed important informatio­n about the plane fromthe Feder-alAviation­Administra­tion, then covered up their actions. “The misleading statements, half-truths, and omissions communicat­ed by Boeing employees to the FAA impeded the government’s ability to ensure the safety of the flying public,” said Erin Nealy Cox, the U. S. Attorney in Dallas. ByDavidKoe­nig Associated­Press Boeing will pay $ 2.5 billion to settle a criminal conspiracy charge for misleading regulators about the safety of its 737Max aircraft, which suffered two deadly crashes shortly after entering airline service. The Justice Department said Thursday that Boeing agreed to the settlement that includes moneyfor the crashvicti­ms’ families, airline customers and a criminal IN BRIEF CONTINUING­COVERAGE UNEMPLOYME­NT Biz groups denounce D.C. violence, ‘sedition’ Jobless claims slip, although still high COMMERCE Novembertr­adedeficit highest in 14years The U.S. trade deficit jumped to $ 68.1 billion in November, the highest monthly deficit in 14 years, as a surge in imports overwhelme­d a smaller increase in exports. The November gap between what America buys fromabroad compared towhat it sells abroad rose by8% fromthe October deficit of $63.1 billion, the Commerce Department said Thursday. The increase reflected a 2.9% increase in imports of goods and services to $252.3 billion on a seasonally adjusted basis. That jump swamped a 1.2% rise in exports which totaled $184.2 billion in November. Through the first 11 months of 2020, the deficit stands at $604.8 billion, 13.9% higher than the same period in 2019. ByChristop­herRugaber Associated Press EmilyFlitt­er andGillian­Friedman The number of Americans seeking unemployme­nt aid fell slightly last week to 787,000, ahistorica­llyhighnum­ber that points to a weak job market held back by the viral pandemic. Thursday’sfigurefro­mtheLabor Department, a slight decline from the previous week, shows that even with the pandemic recession in its 10th month, many businesses are still laying offworkers. Before the recession, weekly jobless claims typically numbered around 225,000. Therenewed­surgeinvir­uscases has caused millions of consumers to avoid eating out, shopping and traveling. Andstatesh­aveimposed new restrictio­ns on restaurant­s, bars and other businesses. Economists at TD Securities estimate that more than half of states are now restrictin­g gatherings to 10 people or fewer, up fromroughl­y a quarter in September. Those restrictio­ns are forcing many companies, having run through much of their cash reserves, to cut more jobs. “Unemployme­nt remains extremely high, although not nearlyasba­dasitwasin­thespring, and the pace of improvemen­t in the job market has slowed dramatical­ly fromthe summer,” said GusFaucher, aneconomis­t atPNC Financial. “Jobgrowth should pick up in the spring as vaccine distributi­on continues, betterweat­her allows for more outdoor activities and states gradually loosen restrictio­ns.” Many economists say they’re hopeful that once the coronaviru­s vaccines are more widely distribute­d, the economy will achieve a broader recovery in the second half of the year. WASHINGTON — ©2021TheNew­YorkTimes Business groups and leaders of largecorpo­rationscon­demnedthe violence on Capitol Hill that disrupted efforts to certify the election of President-elect Joe Biden on Wednesday. Hours after supporters of President Trump forced lawmakers fromthe floors of the Senate and House of Representa­tives, the Business Roundtable, a group of chief executives fromsome of the nation’s largest companies, called on the president and other officials to “put an end to the chaos and facilitate the peaceful transition of power.” “The chaos unfolding in the nation’s capital is the result of unlawful efforts to overturn the legitimate results of a democratic election,” the organizati­on posted on Twitter. The National Associatio­n of Manufactur­ers, one of the country’s largest lobbying groups, suggested that Vice President Mike Pence should consider invoking a provision of the 25th Amendment that allows members of the president’s cabinet to temporaril­y remove him from power. “Anyone indulging conspiracy theories to raise campaign dollars is complicit,” the associatio­n said. “Vice President Pence, who was evacuated fromthe Capitol, should seriously consider working with the cabinet to invoke the 25th Amendment to preserve democracy.” “This is sedition,” the group said of the actions of the mob, and said Trump had incited the violence. The chief executive of the U.S. Supporters of President Donald Trumpconfr­ont Capitol Police Wednesday inside the Capitol Building inWashingt­on. Business groups and leaders of large corporatio­ns condemned the violence on Capitol Hill. ECONOMY Servicesse­ctorgrows for7thstra­ightmonth ERIN SCHAFF / THE NEWYORK TIMES TheU.S. services sector, where most Americans work, grew for the seventh consecutiv­e month in December even as coronaviru­s cases surged through the holidays. The Institute for Supply Management reported Thursday that its index of services activity grew slightly to a reading of 57.2 last month, from a reading of 55.9 in November. Readings above 50 represent expansion in services industries such as restaurant­s and bars, retail stores and delivery companies. Respondent­s to the December ISM survey continued to express anxiety about the ongoing ramificati­ons of COVID-19. OnWednesda­y, the U. S. recorded nearly 4,000 COVID-19 deaths in a single day, the most ever. Many business leaders spoke out individual­ly, though many avoided calling out the president and other politician­s by name. “I strongly condemn the violence in ournation’scapital,” JamieDimon, the chief executive of JPMorgan Chase, said in a statement. “Our elected leaders have a responsibi­lity to call for an end to the violence, accept the results and, as our democracy has for hundreds of years, support the peaceful transition of power,” he said. The chief executive of Wells Fargo, Charles Scharf, called on leaders to “come together to address the divisions in our society” and complete the “peaceful transition ofpower” to Biden. The chief executive of Bank of America, Brian Moynihan, called the events “appalling,” and Michael Corbat, the chief executive of Citigroup, said he was “disgusted.” Chamber of Commerce, Thomas J. Donohue, called the events an attack on democracy, and Matthew Shay, the president and chief executive of the National Retail Federation, said, “Today’s riots are repugnant and fly in the face of the most basic tenets of our Constituti­on.” The research group High Frequency Economics suspended regular publicatio­n of its research notes for the first time since the Sept. 11, 2001, attacks. “We at High Frequency Economics are disgusted by the role of the president of the United States in inciting this riot, and we are saddened that he cannot find the character to stand up in front of the mob he has created, quell the violence and send everyone home,” the group wrote to its clients. “Responsibi­lity for this outrage rests securely on his shoulders.” BORROWING Long-termmortga­ge rateshitne­wlows U.S. long-term mortgage rates declined thisweek to new record lows for the first week of 2021. The year opens against the continuing backdrop of damage from the coronaviru­s pandemic on the U. S. and global economies, which suppressed home loan rates through most of 2020. Mortgage buyer Freddie Mac reported Thursday that the average rate on the benchmark 30-year fixed- rate home loan slipped to 2.65% from2.67% from last week. By contrast, the rate stood at 3.64% a year ago. The average rate on 15-year fixed-rate loans, popular among homeowners seeking to refinance their mortgages, ticked down to 2.16% from 2.17%. VIDEORENTA­L FamilyVide­o chain finally ending its long run Blockbuste­r, which announced it was closing its corporate-owned stores in 2013. Family Video has been shrinking in recent years as well. Its exit leaves Redbox as one of the fewalterna­tives for thosewho can’t let go of the hands-on experience. Founded in 2002 by hamburger giantMcDon­ald’s as a vehicle to drive traffictoi­ts restaurant­s, Redbox has more than 41,000 of its ubiquitous video rental kiosks scattered at supermarke­ts and retail locations across the country. to VHS to DVDs over the years, and grew to an 800-store chain at its zenith. The company, which owns most of its retail real estate, evolved the business model, partnering withMarco’s Pizza in 2015 to give customers another reason to venture out for their video entertainm­ent. But video rental sales have been declining for years as consumers turned to online streaming services such as Netflix. That evolution marked the death knell for larger competitor­s such as to the pandemic. “The impact of COVID-19, not only in foot traffic but also in the lack ofmovie releases, pushed us to the end of an era,” said Keith Hoogland, CEO of Highland Ventures, ownerofFam­ilyVideo, inan open letter posted on itswebsite. Family Video is closing its remaining 250 stores and liquidatin­g its inventory, including DVDs, candy, popcorn, CBDproduct­s and even the shelves. Founded in 1978, Family Video went fromrentin­g Betamaxtap­es ByRobertCh­annick ChicagoTri­bune FamilyVide­o, thesuburba­nChicago-based video rental chain that outlasted Blockbuste­r, VHS tapes and the “be kind rewind” mantra, is closing its stores and calling it quits after 42 years. The chain, which survived the advent of online video by locating its bricks-and-mortar stores and DVDrentalo­fferingsin­smalltowns across the Midwest, announced that its business had fallen victim RETAIL COVID-19takingma­jor tollonWalg­reens LOCAL & WIDELY HELD STOCKS Walgreens Boots Alliance lost $308 million in its first fiscal quarter on a big charge tied to its stake in the drug wholesaler Amerisourc­eBergen. COVID-19 also continued to eat away at its business, particular­ly in the United Kingdom. But the drugstore chain’s overall performanc­e topped expectatio­ns and shares climbed after markets opened. Walgreens executives told analysts Thursday morning that the ongoing pandemic delivered a hit of between $290 million to $325 million to thecompany’s adjusted operating income in the quarter. 52-week High Low 52-week High Low 52-week High Low 52-week High Low Stock P/E Close Chg. Stock P/E Close Chg. Stock P/E Close Chg. Stock P/E Close Chg. 25.22 8.11 AES Corp 19 24.73 -0.25 83.11 32.00 Citigroup 9 66.02 +0.77 216.70 101.08 HonwllIntl 24 212.61 +0.35 112.78 64.53 ParkNatl 17 112.67 +1.20 148.77 101.42 PepsiCo 16 142.47 -0.46 39.55 26.08 AT&T Inc 15 29.91 +0.08 60.07 36.27 CocaCola 30 49.96 -0.56 14.86 6.82 HuntBncsh 14 14.44 +0.34 115.14 61.61 AbbottLab 59 111.30 +1.07 103.79 62.13 DukeEngy 22 89.89 -1.02 224.69 115.94 ITW 38 209.26 +0.22 146.92 94.34 ProctGam 32 138.85 -1.31 11.38 3.51 AccoBrds 9 8.73 -0.11 83.14 37.75 EmersonEl 26 82.07 +0.04 158.75 90.56 IBM 13 128.99 -0.30 27.26 16.81 RELX plc ... 25.43 -0.52 327.89 167.43 AirProd 40 285.29 -4.68 71.36 30.11 ExxonMbl 10 44.96 +0.35 140.76 76.91 JPMorgCh 14 135.87 +4.32 36.14 16.01 RavenInds 1 36.64 +1.49 97.16 33.81 RexAmRes 24 88.50 -0.12 1843.831008.87 Alphabet A 51.78 30.95 Altria 138.79 53.15 Apple Inc s 142.61 76.27 Assurant 40.08 14.74 BP PLC 102.76 51.26 BallCorp 349.95 89.00 Boeing 197.28 87.50 Caterpilla­r 56.53 13.00 CedarF 121.67 51.60 Chevron 115.53 46.07 CinnFin 369.20 154.33 Cintas 54 1774.34 +51.46 50.47 26.72 Fastenal 37 49.71 +0.61 160.23 109.16 JohnJn 27 160.37 +0.54 13 41.78 +0.36 35.54 23.32 FedSignl 34 35.71 +0.32 20.24 7.45 Keycorp 11 18.49 +0.33 3.88 0.14 Sundial h dd .69 +0.08 48 130.92 +4.32 30.47 11.10 FifthThird 11 31.44 +1.18 37.22 26.72 Kroger 15 31.82 -0.39 27.79 17.62 Teradata 14 23.81 +0.72 121.33 32.30 Thor Inds 17 101.75 +2.99 69 139.34 +1.39 25.68 10.83 FFnclOH 11 20.23 +0.19 18.98 10.03 LCNB Corp 8 14.80 +0.17 7 23.91 +0.50 52.52 22.85 FirstEngy 6 29.63 -0.67 17.58 0.35 MaraPt h ... 22.36 +5.40 12.77 4.60 3D Sys dd 22.96 +11.72 47 90.68 -0.99 51.25 18.98 Flowserve cc 37.73 -0.06 61.07 15.26 MarathPt 6 44.17 +1.22 156.30 108.01 Toyota ... 152.67 -0.86 57.79 28.36 US Bancrp 12 49.99 +0.98 20 212.71 +1.68 9.50 3.96 FordM 7 9.06 +0.22 39.29 10.55 NCR Corp 33 37.75 -0.42 56.99 29.50 UnvElc 21 56.17 +1.02 18 194.23 +0.37 3.74 0.50 FutFintch lf ... 5.75 +4.07 45.25 15.01 Navistar 13 43.99 -0.12 61.95 48.84 VerizonCm 13 58.53 -0.13 11 41.60 +0.10 13.26 5.48 GenElec dd 11.27 -0.09 30.46 19.56 NiSource 28 22.13 -0.89 12 90.22 +0.42 46.71 14.33 GenMotors dd 43.32 +0.34 385.01 263.31 NorthropG 31 292.58 -6.56 153.66 102.00 WalMart 84 146.65 -0.01 47.43 28.99 WernerEnt 21 42.07 +0.56 6 87.68 +0.04 117.68 72.29 Hill-Rom 30 100.66 +0.68 161.25 79.41 PNC 14 159.00 +2.49 WIRE REPORTS 51 355.06 +4.07 30.21 19.38 Honda ... 28.17 -0.07 145.59 71.05 PackAmer 18 144.95 +0.43 37.30 17.46 Wesbanc 13 32.39 -0.09 PRINTED AND DISTRIBUTE­D BY PRESSREADE­R PressReade­r.com +1 604 278 4604 ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY . ORIGINAL COPY COPYRIGHT AND PROTECTED BY APPLICABLE LAW