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Boeing CEO Dave Calhoun to step down in wake of cabin panel blowout 2024-03-25 18:27:00+00:00 - The CEO of Boeing has announced plans to resign amid a sweeping overhaul of the planemaker’s management as it fights to repair its reputation following a terrifying cabin panel blowout. Dave Calhoun will step down at the end of this year. Larry Kellner, chair of Boeing’s board of directors, will also leave the role. Calhoun plans to “complete the critical work under way to stabilize and position the company for the future” over the coming months, it said. Boeing has scrambled to reassure regulators, airlines and passengers since a brand-new 737 Max 9 jet was forced into an emergency landing in January. The dramatic incident during an Alaska Airlines flight – which prompted 171 Max 9 jets to be grounded for several weeks – has sparked the biggest safety crisis for Boeing since the crashes of two of its Max 8 jets, in 2018 and 2019, in which 346 people were killed. Stan Deal, who leads Boeing’s commercial airplanes business, has also left the job with immediate effect. He has been replaced by Stephanie Pope, the group’s chief operating officer. “The eyes of the world are on us, and I know that we will come through this moment a better company,” Calhoun said. “We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do.” Steve Mollenkopf, who has been on Boeing’s board of directors since 2020, has been lined up to replace Kellner as its chair. Mollenkopf will lead the search for Calhoun’s replacement. Those who last recruited a CEO for Boeing did not look far. Calhoun, who took the job in January 2020, was a veteran of the group’s board, and served as chairman for a few months the previous year. “I want to thank Dave for his tremendous leadership of our company,” said Kellner, “and I know he will finish the job this year that he started in 2020 to position Boeing, and our employees, for a stronger future.” Shares in Boeing opened higher in New York on Monday, before losing ground. By late morning, they were up by 1%. The group’s stock has come under pressure in recent months, falling by about a quarter since the turn of the year as the Alaska incident renewed questions about the quality of its planes. Regulators and airlines have been demanding answers. An initial report by the National Transportation Safety Board (NTSB) found the cabin panel that blew off Alaska’s new Max 9 jet in January appeared to be missing four key bolts. The agency publicly criticized Boeing this month for failing to disclose details linked to its investigation. Boeing claimed it had been cooperating “fully and transparently” with the NTSB. After the agency published its preliminary report, Calhoun said Boeing was “squarely focused” on strengthening quality and confidence. The Federal Aviation Administration conducted a six-week audit of Boeing’s production line which found multiple compliance failures. The US Department of Justice is conducting its own investigation into the 5 January incident. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Calhoun, who was quick to acknowledge Boeing had “much to prove” following the panel blowout, was himself appointed four years ago after the group faced intense criticism for its response to the fatal Max 8 crashes of 2018 and 2019. On his watch, however, the planemaker faced another severe crisis as Covid-19 swept the world. The global travel industry was upended during the early months of the pandemic, before entering recovery mode. Shares in Boeing, however, have yet to return to the levels at which they traded before March 2020. Key customers welcomed news of the company’s management overhaul. The changes were “much-needed”, according to Michael O’Leary, boss of Ryanair. Focus will now turn to who Boeing will select as its next boss. While Calhoun, 66, refrained from commenting on who should succeed him as CEO, his message to employees announcing his exit included a striking endorsement of Pope – a company veteran widely deemed to be in the running – who is taking charge of its commercial airplanes business. “With nearly 30 years of experience at Boeing, including her successful tenure leading our global services business, Stephanie knows our company inside and out,” Calhoun wrote, “and has a proven track record of superb leadership, including an innate talent for listening and responding to our people.” Pope was “deeply committed” to Boeing, “our employees and to our shared future”, Calhoun wrote: the “perfect person to take on the leadership of our commercial airplanes business at this moment”. Justin Green, an attorney at Kreindler & Kreindler who represents 34 families who lost loved ones on Ethiopian Flight 302, which crashed in 2019, said Calhoun’s departure was “positive” but “quite late”. “The next CEO must know that his or her role will be to prioritize safety, not just profit,” added Green. “For too long, Boeing has been avoiding public accountability and these leadership changes open a window for the company to do so.”
CBS Signs 5-Year Deal for Golden Globes 2024-03-25 18:26:05+00:00 - The Golden Globe Awards once again have a long-term broadcast home. CBS announced on Monday that it had signed a five-year deal to broadcast the Globes, providing a much-needed shot in the arm for a program that was on life support not long ago. The agreement also gives a broader lift to award show telecasts more generally, which had become endangered a few years ago by rapidly changing viewership habits that led to collapsing ratings. Viewership for nearly all the shows has been growing over the past two years. “CBS’s collaboration with the Globes for this year’s broadcast was a big win for both of us and established strong momentum for awards shows in 2024,” George Cheeks, the president of CBS, said in a statement. Financial terms were not disclosed. NBC, the longtime broadcaster of the Globes, gave up the event after several ethics and diversity scandals imperiled the award show. In 2021, The Los Angeles Times reported that the organization that administers the Globes had no Black members, setting off a significant backlash in Hollywood.
Chick-fil-A Modifies Its ‘No Antibiotic’ Chicken Policy 2024-03-25 18:07:41+00:00 - The fast food restaurant Chick-fil-A said on Monday that it would shift its policy that had barred serving chicken treated with any antibiotics and serve chicken treated only with animal antibiotics. The old policy was known as No Antibiotics Ever and barred the use of antibiotics used to treat people and animals. The new one, which is known as No Antibiotics Important to Human Medicine, is expected to go into effect in the spring. The previous policy meant that no antibiotics of any kind were given to animals. The new approach bars the use of antibiotics used to treat people but does allow the use of animal antibiotics if the animal and those around it are sick. The company’s previous far-reaching ban was announced a decade ago and fully implemented roughly five years ago.
Trump's media stock will start trading Tuesday. Here's what to know. 2024-03-25 17:59:00+00:00 - Donald Trump's media company is set to make its debut on the stock market Tuesday, a development that could generate a windfall for the cash-strapped former president. His stake in the firm — Trump Media and Technology Group, the parent company of Truth Social — is worth billions. But that is wealth on paper, and a number of things would have to happen to allow him to cash out on that stake and address some of his financial issues, including the mounting legal bills in his criminal cases and a hefty appeal bond stemming from a civil fraud case in New York. An appeals court slashed that bond to $175 million Monday, down significantly from the original amount of $464 million. Here are some of the big questions surrounding Trump Media's market debut: How is Trump's company going public? Shareholders in the shell company Digital World Acquisition Corp. (DWAC) agreed Friday to merge into Trump Media. The newly combined company will trade on the Nasdaq exchange under the stock symbol DJT. When was the last time a Trump company went public? Trump's hotel and casino resort company, which focused on his Atlantic City gambling and entertainment venues, started trading in 1995 — also under the ticker DJT. The company ended up filing for bankruptcy in 2004. Is Trump Media holding an initial public offering (IPO)? No. DWAC was founded in 2021 as a special purpose acquisition company, or SPAC. This kind of firm raises money before deciding on a company to acquire, which is why they're also commonly referred to as a "blank check company." DWAC hit the public markets, raised a bunch of money and then announced plans to acquire (or merge with) Trump Media and Technology Group, the formerly private firm that owns his social media platform, Truth Social. That announcement happened in 2021, but faced delays from legal holdups and investigations, including fraud/insider trading charges from the Securities and Exchange Commission. In the case of the SEC, a settlement last year slapped the company with an $18 million penalty but paved the way forward for the merger. How much does Trump stand to gain? It’s hard to say. Trump would have almost 80 million shares in Trump Media, or about 58% of the company. As of DWAC’s opening share price Friday, that could value his stake at more than $3 billion. DWAC shares, which fell Friday but then surged again Monday, have more than doubled this year but are still way off their 2022 high points. Its volatility provoked criticism that it's a "meme stock" driven by a fan following, rather than business or market fundamentals. Trump Media has lost millions while posting under $3.5 million in revenue during the first nine months of 2023, according to the most recent information available. Can Trump sell his stock instantly? No. According to the merger agreement, he cannot sell his shares for six months, part of a “lockup” procedure standard in many merger deals. But, there's a big caveat. The combined company’s new board of directors could vote to allow Trump to sell his shares earlier than that. And the board is set to include his son Donald Trump Jr., as well as Linda McMahon and Robert Lighthizer, who were members of his administration. If Trump does get permission and, in turn, sells shares, it may open the company — and him — up to legal challenges from shareholders left holding the bag if a sale tanks the company's stock. Although most of the shareholders are likely Trump supporters, it could only take a few disgruntled shareholders to mount a legal challenge and allege that Trump did not act in the best interest of shareholders by cashing out. Can Trump put up his shares for a loan? There could be some financiers willing to take Trump’s shares as collateral for a massive loan that he could use to then cover the money he needs to post in order to appeal the decision in his New York civil fraud case. On Monday, a New York appeals court reduced the amount of the bond and said the former president has 10 days to deliver it. However, there also may be legal challenges to getting a massive loan by pledging any DJT stock. That's because the stockholder lockup agreement that currently prevents Trump from selling his shares within six months also states that he cannot: "lend, offer, pledge, hypothecate, encumber, donate, assign, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly or indirectly, any restricted securities."
Trump’s Multibillion-Dollar Social Media Company Will Start Trading on Tuesday 2024-03-25 17:39:26+00:00 - Former President Donald J. Trump’s social media company officially became a public company on Monday morning, and in the process the former president’s net worth has jumped by billions of dollars. A lawyer for Trump Media & Technology Group filed papers on Monday with the Delaware Division of Corporations, which said the company’s merger with a cash-rich shell company had formally closed. On Friday, shareholders of Digital World Acquisition Corp. approved the long-delayed merger with Trump Media by an overwhelming majority. Trump Media announced in a regulatory filing with the Securities and Exchange Commission that shares of the company would begin trading on the Nasdaq on Tuesday, under the stock symbol “DJT.” The stock jumped after the announcement and ended the day at $49.95 per share, up 35 percent. Trump Media is now valued at more than $6 billion — even though its flagship Truth Social digital platform took in just $3.3 million in revenue during the first nine months of 2023.
A Timeline of Dave Calhoun’s Rocky Tenure at Boeing 2024-03-25 17:21:16+00:00 - When Boeing named Dave Calhoun its chief executive in 2019, his mandate was clear: to navigate the company out of a reputational crisis after a pair of deadly crashes of its planes. But on Monday, Boeing announced that Mr. Calhoun would depart at the end of 2024 as the company tries to manage another safety crisis. Here are some of the most notable episodes from Mr. Calhoun’s tenure, including the grounding of 737 Max jets, supply disruptions caused by the Covid-19 pandemic and the Jan. 5 incident this year in which a door panel blew off a Max jet at 16,000 feet. December 2019 He takes over as planes sit idle. Mr. Calhoun, who had been on Boeing’s board of directors since 2009, is named chief executive after the ouster of Dennis A. Muilenburg, the embattled leader who had been criticized for his handling of two crashes on Boeing Max 8 planes that killed nearly 350 people in 2018 and 2019. Max planes were grounded after those crashes. A week before the company announces Mr. Calhoun’s new role, Boeing says that it is suspending global production of the Max. It had already cut production to 42 planes per month from 52.
Nearly $2 billion is up for grabs as Mega Millions and Powerball jackpots soar 2024-03-25 16:39:35+00:00 - The stars have aligned in the lottery universe like never before, with two jackpots totaling nearly $2 billion. With an estimated $1.1 billion Mega Millions prize and an estimated $800 million Powerball jackpot, it’s the first time the two nearly national lottery games have each grown so large at the same time. Both massive prizes are the results of months without a big winner, but the larger jackpots entice more people to play the games, increasing the chance that someone, somewhere, will finally hit it rich. WHEN ARE THE DRAWINGS? Up first is the Powerball drawing on Monday night, followed by Tuesday night’s Mega Millions drawing. If there isn’t a winner, the next chance to win Powerball will be Wednesday night and the next drawing for Mega Millions will be Friday night. TWO MASSIVE PRIZES Lottery prizes have been larger than the current jackpots, but it’s the first time both games have offered top prizes of $800 million or more since the games were created decades ago. The prizes have grown so big because it has been months since anyone has won a jackpot. The last Mega Millions jackpot winner was on Dec. 8. Since then, there have been 30 consecutive drawings without a winner of the grand prize. No one has won the Powerball jackpot since Jan. 1, making for 35 consecutive drawings without a big winner of the game, which holds three weekly drawings. The Mega Millions prize ranks as the 8th largest in U.S. lottery history and is about half the size of the largest jackpot, a $2.04 billion Powerball prize won in November 2022. “There’s always an air of excitement around the country when the Mega Millions and Powerball jackpots soar simultaneously,” said Gretchen Corbin, president of the Georgia Lottery Corporation and lead director of the Mega Millions Consortium. THE DISMAL ODDS It’s no mystery why months have passed without a jackpot winner — the odds of snagging the big prizes are terrible. For Mega Millions, the odds of matching all six numbers are 1 in 302.6 million. Powerball has slightly better odds of 1 in 292.2 million. To put those odds in perspective, lottery officials note that after a win when jackpots reset at $20 million, total ticket sales typically cover less than 10% of all the possible number combinations. As jackpots climb to $1 billion or more, sales increase dramatically but still usually cover only about half of the possible combinations. That means, there is still a good chance no one will hit a jackpot. Of course, millions or people do win smaller prizes that range from $2 to $2 million. Players of both games have about a 1 in 4 chance of winning some kind of prize. And remember, regardless of how large jackpots grow, the odds of an individual ticket winning never changes. THE WINNINGS As massive as the jackpots are, winners should brace for much smaller payoffs than the figures advertised on billboards. That’s because the state lotteries that run the games promote the total payoff if the prize is paid through an annuity over 30 years. That figure is now roughly double the cash prize, which nearly all winners choose because they want to invest the money themselves rather than opt for a defined payout. For Mega Millions, that means the $1.1 billion jackpot actually would pay out an estimated $525.8 million cash prize. For Powerball, the $800 million annuity prize would mean an estimated $384.8 million cash prize. Those prizes will be subject to federal taxes, and many states also tax lottery winnings. There also is a chance that multiple players will hit a jackpot, which would then be split between the winners. THE GAMES Mega Millions is played in 45 states plus Washington, D.C., and the U.S. Virgin Islands. Powerball also is played in those states as well as Washington, D.C., the U.S. Virgin Islands and Puerto Rico. The Mega Millions numbers are drawn at a TV studio in Atlanta and Powerball draws numbers at a Florida Lottery studio in Tallahassee. Profits from the games fund state programs. ___ This story has been corrected to include that the Mega Millions jackpot is the 8th largest in U.S. history, not the 10th largest.
MPs and activists challenge claim North Sea oil and gas supports 200,000 jobs 2024-03-25 16:39:00+00:00 - Are 200,000 jobs really supported by the oil and gas industry in the North Sea? Campaigners and MPs are questioning the longstanding government claim. Ministers have repeatedly used the 200,000 jobs figure as justification for pushing ahead with more fossil fuel developments despite the escalating climate crisis and widespread opposition from scientists and energy experts. But campaigners say the figure, which includes indirect employment and comes from the oil and gas industry, has not been scrutinised by the government. They point out that the most recent Office for National Statistics data suggests 27,600 people are directly employed. The Green MP Caroline Lucas has submitted three parliamentary questions asking for clarification on how the 200,000 figure was calculated. In response, the energy minister Graham Stuart said it came from the industry body Offshore Energies UK and referred to direct, indirect and induced jobs supported by the sector. He did not explain how the 200,000 figure was calculated. Lucas said: “The government has been defending its dangerous plan to mandate annual oil and gas licences by claiming the sector supports 200,000 British jobs. But that figure comes directly from the industry itself and has not been independently verified. “Rather than delivering a much-needed just transition for oil and gas workers, the government is deliberately cherrypicking its data in an increasingly desperate attempt to justify pumping yet more planet-heating fossil fuels in its reckless and grossly irresponsible climate culture war.” The government’s decision to green light new developments in the North Sea including the controversial Rosebank oilfield has faced widespread opposition. Hundreds of climate scientists and academics and more than 200 organisations, from the Women’s Institute to Oxfam, have joined tens of thousands of people across the UK to oppose it. The move also contradicts warnings from scientists about the impact of new fossil fuel developments on the climate, and repeated statements from the International Energy Agency that no new oil and gas exploration should take place if the world is to limit global heating to 1.5C above pre-industrial temperatures. The UK government said the industry figures include the wider economic benefits that flow from those directly employed by the oil and gas sector. A spokesperson for the Department for Energy Security and Net Zero added: “Offshore Energies UK has … been clear that backing domestic oil and gas does support around 200,000 jobs and this is a figure we have cited. The industry also generates billions in tax revenues to fund public services and to support with the cost of living and retains the skills and expertise needed for the green transition.” Offshore Energy UK said its figures were provided by the data analysis firm Experian, which used ONS job figures and then tracked expenditure as it flowed through the economy to calculate direct, indirect and induced jobs. Experian confirmed this, and said it was a standard calculation that was widely used. skip past newsletter promotion Sign up to Down to Earth Free weekly newsletter The planet's most important stories. Get all the week's environment news - the good, the bad and the essential Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion But critics said it was crucial there was government scrutiny of exactly what jobs and economic benefits more oil and gas production would bring compared with investing money elsewhere. Tessa Khan, the executive director of the climate action organisation Uplift, said the situation was indicative of the government’s “hands off approach to the transition [away from fossil fuels] in general”. She added: “Instead of getting across the detail and coming up with a coherent plan, this government has abdicated responsibility for making sure workers and communities aren’t left behind to the market and an industry that prioritises shareholder returns over investment in jobs. “What’s urgently needed are politicians prepared to take a clear-eyed look at the sector and where it is headed and who will come up with a plan for delivering a managed and crucially fair transition for workers and communities.” Jonathan Noronha-Gant, from the campaign group Global Witness, said: “It’s not at all surprising that the government is parroting industry figures about how many jobs the oil and industry creates in the UK. The Conservative party has long been one of the oil and gas industry’s biggest cheerleaders, taking its money and giving away thousands of drilling licenses.”
United Airlines, Dyne Therapeutics fall; Lucid Group, Century Aluminum rise, Monday, 3/25/2024 2024-03-25 16:28:56+00:00 - NEW YORK (AP) — Stocks that traded heavily or had substantial price changes on Monday: Boeing Co., up $2.56 to $191.41. Dave Calhoun will step down as CEO as the troubled plane maker deals with manufacturing and safety problems. Intel Corp., down 74 cents to $41.83. China is reportedly looking to reduce reliance on chips from Intel and other chipmakers. United Airlines Holdings Inc., down $1.58 to $44.89. Federal regulators are tightening their oversight of the airline, following a series of recent safety problems. Lucid Group Inc., up 15 cents to $2.92. The electric vehicle maker announced a $1 billion investment from Ayar Third Investment. Dyne Therapeutics Inc., down $2.18 to $26.06. The muscle disease treatment developer said CEO Joshua Brumm resigned. Century Aluminum Co., up 66 cents to $13.88. The U.S. is investing $500 million in the aluminum producer to build an aluminum smelter. Cleveland-Cliffs Inc., up 18 cents to $21.44. The U.S. awarded up to $575 million to the mining company’s decarbonization projects. United Therapeutics Corp., up $6.36 to $244.26. The drugmaker announced a $1 billion stock buyback program.
Why is Joe Manchin treating Biden’s nominees worse than Trump’s? 2024-03-25 16:23:53+00:00 - While most of President Joe Biden’s judicial nominees are confirmed by the Senate Democratic majority, there are exceptions. The White House, for example, has stood behind Adeel A. Mangi’s nomination to serve on the Third Circuit Court of Appeals, though the civil litigator has faced a rather brutal smear campaign from the far-right. The ugliness of the campaign is indefensible, though in theory it wouldn’t necessarily derail Mangi’s chances. In practice, he’s now unlikely to be confirmed in part because Sen. Joe Manchin said last week that he’s prepared to vote with the nominee’s Republican critics. But as it turns out, that’s not the only thing the West Virginian said. Politico reported: Joe Manchin has a new rule when it comes to President Joe Biden’s judicial picks: If they don’t have Republican backing, he won’t vote for them. The retiring West Virginia Democrat has quietly voted against several judicial picks this week, making for some close — though still ultimately successful — votes on the Senate floor. Manchin said there’s a method to his opposition. “Just one Republican. That’s all I’m asking for. Give me something bipartisan. This is my own little filibuster. If they can’t get one Republican, I vote for none,” the conservative Democrat told Politico. “I’ve told [Democrats] that. I said, ‘I’m sick and tired of it, I can’t take it anymore.’” So, a few things. First, by Manchin’s own telling, he’s not evaluating judicial nominees solely based on their qualifications. Instead, he’s prepared to reject good nominees, who’ve earned the right to serve on the federal bench, if members of the Senate minority disapprove of them. It’s a model that effectively says that the Senate minority deserves to have veto power when it comes to the judiciary, which is both deeply strange and wholly at odds with the American tradition. Second, it’s also at odds with Manchin’s own approach to governance during Donald Trump’s presidency. When Brett Kavanaugh’s Supreme Court nomination came to the floor, every other Senate Democrat opposed the controversial conservative. Manchin didn’t say, “Just one Democrat. That’s all I’m asking for. Give me something bipartisan.” Instead, the West Virginian voted to confirm Kavanaugh anyway. There were also lower-court Trump judicial nominees who faced Democratic opposition, only to have Manchin shrug with indifference and vote to confirm anyway. The fact that the senator is making it easier for Republicans to reject qualified judicial nominees is annoying. The fact that Manchin applied a far easier standard to Trump’s judicial nominees makes it worse. (This doesn’t just apply to the judiciary: Manchin has adopted a far more difficult standard for Biden’s nominees in other areas, too.) Finally, there’s a larger electoral context to consider. When the incumbent lawmaker was still eyeing a possible re-election campaign in a deeply red state, it stood to reason that he’d look for opportunities to put some distance between himself, his party, and the Democratic president. But as things stand, Manchin is retiring. He doesn’t have to impress anyone. Given that the senator will turn 77 over the summer, it’s likely that his name will never appear on any ballot again. All of which suggests he’s launched this “little filibuster,” not as a tactical or electoral move, but because Manchin believes this bizarre approach has merit. He’s mistaken.
Boeing CEO Dave Calhoun to step down by end of year 2024-03-25 16:18:00+00:00 - Boeing CEO Dave Calhoun to step down by end of year Boeing CEO Dave Calhoun is stepping down. The management shakeup comes as the aircraft manufacturer's struggles with production problems and a mid-air blowout of a door panel on one of its Boeing 737 Max 9 planes has spurred regulatory scrutiny. In a Monday statement, the company said Calhoun will remain in his role until the end of 2024 in order "to lead Boeing through the year to complete the critical work underway to stabilize and position the company for the future." Calhoun's departure announcement comes four years after he stepped into the CEO role with the mandate to stabilize the company following two crashes of Boeing aircraft back in 2018 and 2019. But Boeing manufacturing has continued to draw scrutiny under Calhoun's term, with the January mid-air blowout involving a Boeing 737 Max 9 jetliner. "Boeing is in deep need of a change in culture around safety and quality," said Timothy Hubbard, assistant professor of management at the University of Notre Dame's Mendoza College of Business, in an email. "These changes take time, but can be accelerated by new leadership. It's unfortunate that it will take 9 months to get a new chief executive officer." Airline executives have expressed their frustration with the company, and even seemingly minor incidents involving Boeing jets have attracted extra attention. Fallout from the January 5 blowout has raised scrutiny of Boeing to its highest level since the two Boeing 737 Max jet crashes that killed 346 people, with the first occurring in 2018 in Indonesia and the second in 2019 in Ethiopia. In a note Monday to employees, Calhoun, 67, called the Alaska Airlines accident "a watershed moment for Boeing." that requires "a total commitment to safety and quality at every level of our company." The next Boeing CEO The management shakeup culminates a rocky few months for the aircraft manufacturer, amid scrutiny after an Alaska Airlines flight was forced to make an emergency landing in January after a door plug blew out minutes after departure. In February, a panel of aviation experts assembled by regulators found that Boeing had "a lack of awareness of safety-related metrics at all levels." In a Monday interview with CNBC, Calhoun said that the next CEO needs to be an executive "who knows how to handle a big, long cycle business like ours." "Our next leader is going to develop and call out the next airplane for the Boeing Company," he said. "It will be a $50 billion investment that will all happen on our next leaders' watch." Additionally, Boeing on Monday also said that board chair Larry Kellner won't stand for reelection at the company's annual shareholder meeting. It added that it has elected former Qualcomm CEO Steve Mollenkopf to succeed Kellner as independent board chair. Mollenkopf will lead the board in picking Boeing's next CEO, the company said. Calhoun stepped into the CEO role at Boeing in January 2020, succeeding Dennis Muilenburg who was fired following the two deadly crashes of Boeing 737 aircraft. —With reporting by the Associated Press.
U.S. Accuses Chinese Hackers of Targeting Critical Infrastructure in America 2024-03-25 16:12:13+00:00 - The United States imposed sanctions on Chinese hackers on Monday and accused them of working as a front for Beijing’s top spy agency, part of a broad effort to place malware in American electric grids, water systems and other critical infrastructure. The sanctions were a major escalation of what has become an increasingly heated contest between the Biden administration and Beijing. While there have been no cases so far in which the Chinese government has turned off essential services, American intelligence agencies have warned in recent months that the malware appeared to be intended for use if the United States were coming to the aid of Taiwan. By turning off critical services to military bases, and to civilian populations, China would try, according to a series of intelligence findings, to turn Americans inward — worrying about their own supplies of electricity, food and water rather than assisting a distant island that Beijing claims as its own.
Chick-fil-A announces shift from 'no antibiotics' in chicken pledge 2024-03-25 16:12:00+00:00 - Chick-fil-A says it will no longer adhere to its pledge of serving antibiotic-free chicken. In a statement released Monday, the fast-food company said that starting this spring it would serve chicken that was free only of antibiotics "important to human medicine," or those commonly used to treat people. It said its poultry going forward may have been raised with animal antibiotics, though "only if the animal and those around it were to become sick." The chicken will continue to be free of artificial preservatives, steroids and added hormones, it said. Chick-fil-A first announced its no-antibiotics pledge in 2014. But amid an avian-flu outbreak that devastated poultry supplies nationwide, chicken farmers who'd previously sought to avoid antibiotics have been forced to turn to them. Last July, food processing giant Tyson announced it was ending its "no antibiotics ever" pledge. Poultry producer Perdue Farms still has its pledge in place, while rival Pilgrim's Pride says it uses some. While world health officials have long raised concerns about the potential of any antibiotics in food to degrade the human body's immunity to disease treatments, the Food and Drug Administration has said it is more concerned about the use of antibiotics commonly prescribed to humans than ones used to treat animal illnesses.
N.Y. appeals court reduces Trump's bond in his civil fraud case to $175 million, a victory for the former president 2024-03-25 15:35:00+00:00 - A state appeals court ruled that Donald Trump and his co-defendants in the New York civil fraud case have 10 days to post a $175 million bond, down from the $464 million judgment that was originally due Monday. The 11th-hour ruling from a panel of state Appellate Division judges, all appointed by Democratic governors, is a major victory and relief for the former president, whose attorneys had said coming up with the larger bond was a “practical impossibility.” The ruling also means state Attorney General Letitia James’ office cannot yet begin collecting on the judgment. “I greatly respect the decision of the appellate division and I’ll post the $175 million in cash or bonds or security or whatever is necessary very quickly within the 10 days, and I thank the appellate division for acting quickly,” Trump said in front of cameras after he left a New York courtroom for a hearing in the hush money case. Before Monday’s ruling, Trump was liable for $454 million, most of the fraud judgment, but the amount he owed had been increasing by more than $111,000 a day because of added interest. Trump claimed on social media Friday that he had nearly $500 million in cash that he had planned to use toward his 2024 presidential campaign. The former president, however, hasn’t used his own money toward his presidential campaigns since 2016. He had also floated the idea last week of mortgaging or selling off his properties, saying he would be forced to do so at “Fire Sale prices.” His lawyers noted in court filings that bond companies typically “require collateral of approximately 120% of the amount of the judgment” — which in this case would total about $557 million. Trump's lawyers said in one filing a week ago that they hadn’t been able at that point to secure a bond, and believed it was “a practical impossibility.” They said that they approached 30 surety companies through four separate brokers, trying to negotiate with the world’s largest insurance companies. The other bond companies will not “accept hard assets such as real estate as collateral,” but “will only accept cash or cash equivalents (such as marketable securities),” his lawyers said. Trump’s lawyers had asked the state appeals court to either reduce the amount of money he had to post or stay the award without him posting any security while he appeals Engoron’s order. The decision Monday also puts a stay on the part of the original judgment that barred Trump from serving as a public officer of a company, as well as the prohibitions placed on Weisselberg, McConney, Donald Trump Jr. And Eric Trump. The court did not grant requests from Trump to prohibit the independent monitor or installing an independent director of compliance. The AG's office brushed off Monday's ruling in a statement, saying: "Donald Trump is still facing accountability for his staggering fraud. The court has already found that he engaged in years of fraud to falsely inflate his net worth and unjustly enrich himself, his family, and his organization. The $464 million judgment — plus interest — against Donald Trump and the other defendants still stands." Trump celebrated the ruling in a post on Truth Social, attacking Engoron and reiterating that he believes he did nothing wrong. Speaking to reporters outside an unrelated hearing in his New York criminal case, he called Engoron "a disgrace to this country." Alina Habba, the former president's lawyer in the civil fraud case, said in a statement, “We are extremely pleased with the ruling issued by the Appellate Division. This monumental holding reigns in Judge Engoron’s verdict, which is an affront to all Americans. This is the first important step in fighting back against Letitia James and her targeted witch hunt against my client which started before she ever stepped foot in office." On Friday, Trump told Fox News he'd appeal Engoron's ruling "all the way to the U.S. Supreme Court if necessary." He must first go through the state appeals court process before he can bring that challenge before the justices. Trump has valued his brand at over $10 billion, but a 2021 financial statement put his net worth $4.5 billion. He has said that most of his assets are in real estate — not cash or stock — saying at a deposition in the fraud case last year, that he had “substantially in excess of $400 million in cash.” Trump may have some financial relief coming in the near future. On Friday, shareholders in Digital World Acquisition Corp. voted to approve a merger with the former president's Trump Media & Technology Group, the private firm that owns his social media platform Truth Social. Shares in the newly combined company, Trump Media, could begin to be publicly traded this week, and Trump would have nearly 80 million shares, estimated to be worth around $3 billion. Under the terms of the merger, Trump is prohibited from selling shares in the merged company for at least six months, but the board of directors, which will likely include his eldest son, Donald Trump Jr., could vote to allow him to sell shares earlier than that.
Newcastle’s Amanda Staveley must pay £3.4m to Greek tycoon after court battle 2024-03-25 15:31:00+00:00 - The Newcastle United co-owner Amanda Staveley faces having to pay a Greek shipping magnate more than £3m after a high court legal battle. Staveley had been issued with a statutory demand by businessman Victor Restis, who claimed she was liable to pay him £3.4m owed from an investment he made in her business ventures. The businesswoman had applied to the high court to throw out Restis’ application, with her lawyers telling a hearing earlier in March that she had “substantial ground for denying liability” and the dispute should be settled in arbitration. In a judgment on Monday, the deputy insolvency and companies court judge, Judge Daniel Schaffer, dismissed her bid, ruling the dispute should be dealt with in court and that Staveley was liable to pay the sum. Reading out his judgment at London’s Rolls Building, he said: “The demand totalling £3.4m is sound.” Restis has until 22 April to issue a bankruptcy petition after the decision, unless Staveley pays the money owed before that date. Ted Loveday, representing Staveley, previously told the court in written submissions that it was “common ground” that Restis had made a £10m investment in Staveley’s business ventures in 2008. He said there was “plainly a degree of ambiguity about whether this was a loan or some other form of investment”. Restis initially issued a statutory demand in May 2023 for a total of £36.8m, which included the outstanding loan sum of £3.4m and “exorbitant” interest of £31.3m, Loveday had claimed. The tycoon later dropped claims for the interest and legal costs, instead claiming only the loan’s outstanding balance. Loveday said the parties entered an agreement in May 2016 where they agreed to submit their disputes to arbitration, that Staveley was not personally liable and that her company PCP Capital Partners would pay. But the lawyer said his client was told to sign other documents between 2017 and 2021 which ultimately said Staveley was personally liable and incrementally topped up the liability. He claimed these “instruments” were “procured by duress, undue influence and/or misrepresentation”, and that Staveley felt intimidated into signing them. However, the judge said Staveley’s liability was “proved conclusively” in the documents and that it “beggars belief” she did not understand she was liable, adding the claim “ventures into the realm of fantasy and is completely implausible”. The judge also said there was “no evidence” that Staveley was under duress from Restis or his lawyers. He said: “There were clearly commercial pressures on Staveley, but Restis was perfectly entitled to press for payment.” “Was there any illegitimate pressure? In my judgment, on the facts of this case, no,” he continued. He said messages between the pair indicated a “warm business relationship” which “cannot be construed in any way, fashion or form to support a claim of unlawful distress”. In her written arguments, Raquel Agnello KC, representing Restis, said Staveley was sent documents, given time to look over them and given opportunities to make revisions before she signed them, including one in 2021 which superseded previous agreements and made Staveley liable. Agnello told the court there was “a real lack of reality” in the claims of unlawful conduct and that Staveley relied on “bare assertions” which were “inherently implausible”. The judge also said Staveley, who he described as an “astute businesswoman”, had “singularly failed” to show her judgment was unduly influenced by her diagnosis of Huntingdon’s disease when signing the documents. He deemed the claims, as well as those of being placed under duress, were “unsustainable” and had a “complete lack of credibility”. Staveley did not attend court on Monday. After the decision, a spokesperson for her said: “Amanda Staveley notes the ruling of the high court today on her application to have set aside a statutory demand brought by Victor Restis. “Ms Staveley notes and welcomes that the ruling made a £33m reduction in the claim to principal only with no interest. “Nevertheless, Ms Staveley continues to dispute personal liability and intends to lodge an appeal.”
Shohei Ohtani scandal could focus more attention on the 'Wild West' of sports betting, lawmakers say 2024-03-25 15:30:00+00:00 - Two lawmakers who are pushing bills aimed at reining in the sports betting industry say there is a silver lining to the scandal that has ensnared the Japanese interpreter of Los Angeles Dodgers baseball phenom Shohei Ohtani: It will shine a spotlight on the plague of gambling addiction. “This situation clearly demonstrates the impact and harm that gambling addiction can inflict,” said Rep. Paul Tonko, D-N.Y, who this month introduced the SAFE Bet Act to deal with what he has called a “public health crisis.” Both Tonko and Sen. Richard Blumenthal, D-Conn., introduced their bills before the news broke that Ippei Mizuhara had allegedly stole $4.5 million from Ohtani to pay off bookies in Southern California who were being investigated by the U.S. government. “The widespread legalization and promotion of sports gambling will only make this type of incident more common moving forward,” Tonko said in an emailed response to a question from NBC News. “We have an obligation to address the predatory practices of this industry and protect consumers, which precisely what my SAFE Bet Act aims to do.” The act would require states to meet certain rules related to sports betting, including on advertising, money deposits and the use of artificial intelligence. The American Gaming Association, which advocates on behalf of the industry, said that the Ohtani case involved illegal gambling and that should be the focus of lawmakers. “It shouldn’t come as a surprise to anyone that the pervasive illegal market persists and continues to prey on Americans,” AGA spokesperson Cait DeBaun said in a statement. “This only reinforces the need for federal action on illegal gambling operations that target vulnerable Americans, steal tax dollars from communities, and undermine the regulated marketplace. We commend Congress for calling on the Department of Justice to investigate and enforce the law." The Dodgers' Shohei Ohtani at a preseason game in Los Angeles, on March 24. Harry How / Getty Images The Dodgers fired Mizuhara, Ohtani's interpreter and close friend, on Thursday after Ohtani’s attorneys alleged that he had "been the victim of a massive theft." On Friday, Major League Baseball announced it had opened an investigation into Mizuhara and his alleged ties to illegal gambling. Specifically, NBC News reported that the allegations against Mizuhara center on wire transfers from Ohtani’s account — totaling at least $4.5 million — to a bookmaking operation in Southern California that is currently under federal investigation. While the Ohtani situation deals with illegal gambling, it comes amid growing scrutiny about the rise of legalized sports gambling in the U.S. The immediate availability of sports betting through mobile apps and the nearly omnipresent advertising for those apps has led to concern about whether the industry needs to be more closely regulated. That concern includes some players and coaches who have recently begun to speak out about gambling. Cleveland Cavaliers head coach J.B. Bickerstaff recently said that sports gambling "has gone too far" and that he'd received threats from gamblers. Tyrese Haliburton, one of the NBA's rising stars, said that he feels like a "prop" for gamblers and that his social media is inundated with gambling talk.
Chick-fil-A will allow some antibiotics in its chicken, ditching its "No Antibiotics Ever" standard 2024-03-25 15:23:00+00:00 - Chick-fil-A is no longer promising "no antibiotics ever" in its chicken. The fast food chain said starting this spring, it would allow the use of chicken that may have had antibiotics. In 2014, Chick-fil-A said it would shift to a "No Antibiotics Ever," or NAE standard, meaning the company would not use any antibiotics-raised chickens. But now it is switching to a "No Antibiotics Important To Human Medicine," or NAIHM standard. Under this label, antibiotics are used to treat animals if they are sick, but use of antibiotics that are important to human medicine and are commonly used to treat people is restricted. The company blamed supply chain issues, with a spokesperson telling the Associated Press there are concerns about the company's ability to acquire antibiotic-free chicken. Chick-fil-A promised to continue to only serve "real, white breast meat with no added fillers, artificial preservatives or steroids" and source chickens from farms that follow its Animal Wellbeing Standards, which includes U.S.-hatched and raised animals that are provided nutritional food and live in temperature controlled barns. Under government agencies such as the Food and Drug Administration and U.S. Department of Agriculture, antibiotics are allowed in animals that are later used for food, but there are rules surrounding the use of these drugs. These medicines can be used to treat infections in animals – just like they are in humans. But with antibiotic use, some bacterias could become resistant or unresponsive, a result called AMR, according to the FDA. "Food animals can carry bacteria, such as Salmonella and Campylobacter, that can make people ill. When animals are given antibiotics, resistant bacteria in their intestines can continue to survive and grow," the CDC explains. That means when the animals are slaughtered their meat can become contaminated with this bacteria. Humans can get sick from these resistant bacterias when handling raw or uncooked meat and poultry or consuming other foods that have come in contact with animal feces, including drinking water. Antibiotics, however, are effective treatments for animals, if they are used responsibly. The FDA has created an antibiotic stewardship plan that aims to reduce the risk of animals developing resistant bacterias. They advise livestock owners to use antibiotics only when necessary to manage illness in animals and the use of vaccines to reduce future need of antibiotics. The USDA says before birds used for meat can be slaughtered, they must go through a "withdrawal" period from the time antibiotics are administered. "This ensures that no residues are present in the bird's system," according to the USDA. "Food Safety and Inspection Service randomly samples poultry at slaughter and tests for residues. Data from this monitoring program have shown a very low percentage of residue violations." Last year, Tyson, which makes many chicken products, also said it was ditching the NAE standard but would only allow antibiotics that are not important to the treatment of humans in its chicken production, the Wall Street Journal first reported. Other companies, like Perdue, continue to use the NAE label.
5 Top-Rated Dividend Stocks With Double-Digit Upside 2024-03-25 15:19:00+00:00 - Key Points Marketbeat's Top Rated Dividend Stocks screener is a good place to seek out new income investments. Stocks are ranked by Marketbeat.com's platform, which tracks analysts' sentiment and dividend health. The five stocks on this list pay reliable dividends, have double-digit upside potential, and are rated a consensus Buy. 5 stocks we like better than Upbound Group Dividend stocks are a dime a dozen, so it is important to weed the good from the bad. Among the many ways to filter dividend stocks is following the money, which means the analysts. This is a look at five Top-Rated Dividend Stocks, according to analysts tracked by Marketbeat.com. What does top-rated mean? Marketbeat.com tracks terabytes of data, including analysts' sentiment and dividend statistics and aggregates the data into useable information. The Top Rated Dividend Stocks screener filters for stocks with at least five analysts covering them and then ranks them by sentiment. The highest possible score is 4.0, which indicates 100% Buy ratings over the past twelve months. The stocks making this list score at least a 3.0 and have a minimum 10% upside potential and 2% yield. Get Upbound Group alerts: Sign Up Copa Holdings, S.A. Is a High-Yield Value Analyst Like Copa Holdings, S.A. NYSE: CPA is a small air carrier operating in Latin America. Its business is booming, with passenger and freight demand supporting growth. It scores the highest among dividend-paying stocks with a Marketbeat.com rating of 3.5. Six analysts are covering the stock, and they rate it as a Strong Buy and view it as deeply undervalued. The consensus target implies more than a 40% upside, while the low end of the range is 25%. Recent highlights include a 17% increase in February capacity compounded by a complimentary increase in passenger miles. The next significant catalyst for the stock price is when it reports results in May. The analysts forecast a slight decline in revenue, which is unlikely given the trends. Kemper Corporation Analysts Insure Higher Prices Will Come Kemper Corporation NYSE: KMPR struggled in 2022 and 2023, but those days are over. The latest results show that the pivot back to profitability is gaining traction, and a return to growth is expected next fiscal year. The balance sheet is also in decent shape and suggests the dividend payout will continue. The yield isn’t high at 2.0%, but it is market-beating compared to the S&P 500, and analysts are buying it. Analysts' revisions have increased the consensus sentiment to Buy over the last twelve months and the price target by 500 basis points. This stock, like COPA, is undervalued, with the market below the analysts’ lowest forecast. The low end of the analysts' range suggests about 1000 basis points of upside, while consensus is closer to 20%. The Marketbeat analyst rating for this stock is 3.17. Kimbell Royalty Partners Is a Royally Good Yield Kimbell Royalty Partners NYSE: KRP is a limited partnership headquartered in Texas focused on mineral and royalty rights for oil and natural gas properties. The units yield more than 10% at current levels and appear sustainable in 2024. As of the last report, the payout ratio to distributable cash is nearly 75%, with the remaining 25% put toward debt reduction. Analysts rate the stock as Buy, steady over the past year, with a price target of $21. The consensus target is also constant and 35% above the current price action. Like others on this list, the low end suggests a deep value with at least a 20% upside. Atlas Energy Solutions Builds A Solid Foundation On Sand Atlas Energy Solutions NYSE: AESI is a leading provider of oil-field services delivering sand to frackers. The sand is used to keep the fissures open for oil recovery and is crucial to the process. Atlas is notable for its profits, cash flow, and dividends, which are as solid as a rock. The 2.95% yield is less than 30% of the earnings, with expected revenue growth and margin expansion to come. Analysts rate this stock as a Buy and see it advancing more than 2% at the low end of their range, about 12% at the consensus, which is trending higher. Upbound Group Has Yield, And the Analysts Support Upbound Group NASDAQ: UPBD is a rent-to-own provider with brands like Rent-a-Center in its portfolio. The company has returned to growth and provides solid cash flow, driving its capital returns. The dividend is worth 4.25%, with shares trading near $35, and the payout is only 38% of earnings. Analysts' activity includes numerous upgrades in the last twelve months, lifting the rating from Hold to Buy and increasing the price target by 35%. Consensus implies a slim 10% of upside but is trending higher and leading the market. Before you consider Upbound Group, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Upbound Group wasn't on the list. While Upbound Group currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here
Tata would ‘push on with Port Talbot job losses even with Labour subsidy’ 2024-03-25 15:16:00+00:00 - Tata Steel would push ahead with thousands of job losses at its Port Talbot site even with hundreds of millions of pounds of subsidies being promised by Labour, sources close to the company have said. People familiar with the company’s plans say the money being promised by Labour if it wins the election would not prevent wide-scale job losses at the site, where Tata says it is losing £1m a day. The Indian-owned company is planning to make as many as 2,800 people redundant at the site as it closes its blast furnaces and replaces them with a less polluting electric one, a decision which shadow ministers say could cause decades of economic damage. One source described the idea of keeping one blast furnace open while building an electric one, as proposed by Labour and trade unions, as “almost impossible to achieve”. The company has previously described the proposals as not “feasible or affordable”, but shadow ministers had hoped to persuade executives to change their minds with the promise of more public subsidies under a Labour government. Labour has put supporting the Port Talbot site at the heart of its industrial policy. Last year Keir Starmer, the Labour leader, visited the steelworks to promote his plan for green steel, which he said would “bring growth and economic security”. Starmer said: “Our plans to get Britain building again will mean fuller order books and security for both industry and worker.” As part of that plan, the party has promised to spend £3bn to incentivise clean steel manufacturing across the country, a portion of which the party has promised will go to Port Talbot in the hope of keeping the steelworks open beyond the end of this year. Jonathan Reynolds, the shadow business secretary, met Natarajan Chandrasekaran, the chair of Tata Sons, in Mumbai last month to urge him to keep the steelworks open longer. “That is a priority for us,” Reynolds told the Financial Times at the time. “If it needs capital expenditure, we are willing to look at it.” Other Labour figures have urged the company not to make any “irreversible decisions” before an election. Despite Labour’s promises of extra money, Tata is pushing ahead with its plans to close the plant while it builds a new electric arc furnace. The new furnace will be more efficient and less polluting, but the three-year closure will result in up to 2,800 jobs being lost as a direct result, as well as more in the wider community and supply chain. About 200 jobs will be kept in the hot strip mill, where workers roll steel slab, while other temporary roles will be created to build the new furnace. The company hopes to employ more than 1,000 people at the site when it reopens in around three years’ time but many are worried about the economic damage that will be done by making so many people redundant in the interim. Tata has recently extended a 45-day consultation with unions over when and how the redundancies will be made, but has still not announced the results of that. Some at the site and in the Labour party are hoping there is still time for the company to change its mind before beginning to lay people off. Last weekend Jo Stevens, the shadow Wales secretary, said the economic and social fallout could be on a par with that caused by the deindustrialisation of the 1980s. “If these jobs are lost, Port Talbot probably loses its identity,” she told the Guardian during a visit to the steelworks. “There’s a very proud history of steelmaking here … and the danger is that there is nothing here to replace it.” A Labour party spokesperson said on Monday: “Our £3bn total commitment over five years is there to galvanise a strong future for the UK steel industry, including Port Talbot, to protect jobs, our ability to make primary steel and transition sustainably to green steel making. “The government has said that no one will be left behind if there are redundancies. We will be holding them to account on that every step of the way.” Last week the company caused further anger among Port Talbot steelworkers when it unexpectedly closed the last coke oven at the site earlier than planned, citing health and safety concerns. The closure of the oven, where coal was processed for use in the furnaces, means coke will have to be brought into the plant from elsewhere, most likely overseas. Some workers worry the company will struggle to source the materials it needs and that the closure of the entire plant will be brought forward as a result. The company has not ruled out building a hydrogen-powered plant to create iron for use in the electric furnace in the future, which would reduce its long-term reliance on imported raw materials.
Should You Buy Boeing Stock After CEO Resignation Announcement? 2024-03-25 15:10:00+00:00 - Key Points Boeing stock is up slightly after announcing that CEO Dave Calhoun will step down at the end of the year. The airline and defense contractor faces significant regulatory hurdles that are likely to weigh on its profits and free cash flow. BA stock is still investable because it is part of a duopoly with Airbus, but investors may want to wait for more information when the company reports earnings in April. 5 stocks we like better than Boeing The Boeing Company NYSE: BA stock is up just over 1% in early trading on March 25. Investors appear to support the company's pre-market announcement that chief executive officer (CEO) Dave Calhoun will resign at the year's end. In a related announcement, Boeing's chairman of the board, Larry Kellner, announced he would forgo nomination for an additional term. Steve Mollenkopf, the former CEO of Qualcomm Inc.NASDAQ: QCOM, will immediately take over as board chair and will lead the search for a new CEO. Get Boeing alerts: Sign Up Boeing has had a turbulent 2024, and we're barely a quarter of the way through. The company's airliners have been involved in several high-profile safety incidents that call into question the company's quality control standards. At the extreme, there are calls that the company should be shut down. That may make you think twice before flying on one of the company's jets. But when it comes to a company's stock, sometimes things get so bad that they finally look good. That may be what's happening to BA stock on this announcement. However, investors may still want to proceed with caution. Boeing Will Face Significant Regulatory Hurdles No matter where you stand on government regulations, Boeing will be heavily regulated going forward. That is likely to mean delays in aircraft certification and deliveries. It also means that Boeing will have to cut its forecast for the number of aircraft it can deliver. With Upgrades Like These, Who Needs Downgrades? In late March, Deutsche Bank NYSE: DB reiterated its Buy rating on BA stock. However, the firm lowered its price target from the $270 it set in November 2023 to $240. Nevertheless, that would be a 30% increase from the current price. The bigger concern for investors is that the rating came with numerous caveats. As noted above, it won't be business as usual for the airliner going forward. That will take a bite out of revenue, earnings, and free cash flow (FCF). Investors will hope to hear more when Boeing reports its first quarter earnings in late April. However, due to the uncertainty surrounding the FAA probe, the company refrained from offering forward guidance when it reported in January. Members of Congress Are Selling Their Shares Another reason why investors should be concerned is that members of Congress have been dumping shares of BA stock in the first three months of 2024. Usually, investors are wise to remember that they have many reasons for selling a stock. However, the timing of these sales raises eyebrows. On January 9, Representative Blake Moore (R-Utah) sold up to $15,000 in BA shares. That was just days after the Alaska Air flight that launched the FAA probe. Moore serves on the House Budget Ways & Means Committee. And on February 28, Representative Bill Keating (D-Mass.) also sold up to $15,000 in Boeing shares. Keating is a member of the Armed Services and Foreign Affairs Committees. Significantly, Boeing is one of the largest defense stocks and generated approximately $24.9 billion in revenue from its defense business, which was 32% of the company's total revenue in 2023. Getting Involved with BA Stock Boeing is one part of a duopoly in airline manufacturing with Airbus SE OTCMKTS: EADSF, which accounts for 99% of all aircraft production. A change in the C-suite and on the board makes it less likely that draconian measures will be taken with Boeing; therefore, it's an investable proposition. Analysts are generally bullish but haven't had a chance to digest this latest news. Before this announcement, BA stock was approaching a level of support at around $178. If the company can confirm this level, there may be some upside. However, until the company reports earnings, the stock will likely be range-bound. Boeing suspended its dividend in 2020 and has yet to reinstate it. Before you consider Boeing, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Boeing wasn't on the list. While Boeing currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys. View The Five Stocks Here