Boeing takes $4.9 billion charge related to 737 MAX

Boeing said on Thursday it would take an after-tax charge of $4.9 billion in the second quarter related to estimated disruptions from the grounding of its 737 MAX after two deadly crashes.

The charge will result in a $5.6 billion reduction in revenue and pre-tax earnings in the second quarter, the world’s largest planemaker said in a statement.

Chicago-based Boeing is set to release financial results on July 24.

Boeing is facing one of the worst crises in its history as its best-selling jetliner, the 737 MAX, remains grounded after crashes in Ethiopia and Indonesia that together killed 346 people in the span of five months. read more »

Facebook says it will behave better from now on

Promise

The scene is becoming familiar: a Facebook executive is hauled before Congress in Washington DC; a public grilling ensues. At least on July 16th and 17th American lawmakers looked better prepared than they were a year ago when they displayed little idea of Facebook’s business during hearings over its failure to stop a rogue consultancy from harvesting data on 50m users without permission. This time David Marcus fielded mostly sensible questions about the social network’s nascent cryptocurrency project, Libra, which he heads. Would transaction data be mined for valuable spending patterns? How will Facebook make money from Libra, which is to be governed by an independent body based in Switzerland?

Mr Marcus offered reasonable answers. User consent will be required to mine transaction data; money will come from advertisers, happy to pay to gain access to consumers more willing to part with their money thanks to easier online payments. The big question on everybody’s mind was different, however: why on Earth would scandal-plagued Facebook launch a global financial instrument at all?

The query is all the more relevant in light of a decision days earlier by the Federal Trade Commission to fine the company $5bn for its recent misuse of user data. read more »

Honeywell Discloses Foreign Bribery Probes

The industrial conglomerate said it is cooperating with investigations by U.S. and Brazilian authorities.

Honeywell International Inc. said Thursday it is cooperating with bribery investigations by U.S. and Brazilian authorities.

The probes by the U.S. Justice Department, the Securities and Exchange Commission and Brazilian authorities focus on Honeywell’s compliance with the Foreign Corrupt Practices Act and similar laws in Brazil, the industrial conglomerate said in a quarterly securities filing.

Authorities are examining Honeywell’s use of third parties that previously worked for its oil products business in connection with Brazil’s state-controlled oil company Petróleo Brasileiro SA, the company said. read more »

‘Pharma Bro’ Martin Shkreli loses appeal, isn’t getting out of prison anytime soon

A federal appeals court upheld the securities fraud conviction against former drug company CEO Martin Shkreli, known as "Pharma Bro," on Thursday, along with a $7.3 million forfeiture of assets.

A judge sentenced Shkreli to seven years in prison last year for his conviction on charges he looted a drug company he founded, Retrophin, of $11 million in stock and cash to pay back investors in two failed hedge funds he ran. read more »