New Boeing CEO inherits crisis
Boeing’s new CEO is in place, and he is laying out goals for this year, starting with the safe return to flight of the grounded 737 Max. David Calhoun has a long to-do list as he takes over for fired CEO Dennis Muilenburg. Calhoun will oversee Boeing’s legal strategy as it deals with dozens of lawsuits by families of the 346 people who died in crashes of the 737 Max jetliner. He’ll have to fix Boeing’s strained relationship with the Federal Aviation Administration. And most of all, he’ll have to try to restore the company’s battered reputation.
U.S. budget deficit running 11.8% higher
The U.S. budget deficit through the first three months of this budget year is up 11.8% from the same period a year ago, putting the country on track to record its first $1 trillion deficit in eight years. The Treasury Department said Monday that the deficit from October through December totaled $356.6 billion. Both government spending and revenues set records for the first three months of this budget year, but spending rose at a faster clip than tax collections, pushing the deficit total up. The Congressional Budget Office is projecting that the deficit will hit $1 trillion this year.
S&P, Nasdaq close at record highs
Stocks closed higher on Wall Street ahead of the signing of a “Phase 1” trade deal with China, sending the S&P 500 and the Nasdaq to record highs. Technology companies led the way. The gains came a day before major banks kick off the latest earnings reporting season for U.S. companies. The S&P 500 rose 22 points, or 0.7%, to 3,288. The Dow Jones Industrial Average rose 83 points, or 0.3%, to 28,907. The Nasdaq climbed 95 points, or 1%, to 9,273. Bond prices fell as demand for safe-haven assets diminished. The yield on the 10-year Treasury rose to 1.84%.
Visa buys tech firm Plaid for $5.3 billion
Visa has purchased the financial technology company Plaid for $5.3 billion, the companies said Monday, a major push by the payment processor into other types of money transfer systems outside of credit and debit cards. Plaid allows consumers to connect their bank accounts to other types of financial services apps like Venmo, PayPal, Betterment and Transferwise. Its an important but relatively unknown middle man between the banks, who hold consumers’ cash, and the platforms who help send that money.
UAE, Indonesia reach billion-
JAKARTA, Indonesia — Indonesia and the United Arab Emirates have affirmed deeper economic ties during a visit by Indonesian President Joko Widodo in which he sought billions of dollars to finance his country’s infrastructure and energy projects. After meeting at Abu Dhabi’s Qasr Al Watan palace, Widodo and Crown Prince Sheikh Mohammed bin Zayed Al Nahyan witnessed the exchange of 16 agreements and memoranda of understanding. The two sides said they included 11 business-to-business agreements on energy and infrastructure.