Boeing’s management, and airline operators across the world, will be letting out a large sign of relief today, after its factory workers agreed to end their strike after 53 days.
West Coast factory workers have accepted a pay deal, ending the walkout that began in mid-September and halted much of the company’s jet production.
Boeing’s union said members voted 59% in favor of the new contract, which offers a 43.65% compounded wage increase over four years – 13%, 9%, 9%, and 7%.
Jon Holden, the union’s lead negotiator, told members:“This is a victory. We can hold our heads high.Now it’s our job to get back to work.”
Holden has also said that the new contract can “create a new foundation”, to help Boeing return to building the highest quality and safest airplanes in the world.
The breakthrough eases the pressure on new Boeing CEO Kelly Ortberg after two previous offers were voted down in recent weeks.
Airlines will also be relieved, after being hit by delays to Boeing’s shipments. Yesterday, Ryanair said continued problems at Boeing meant it would cut its growth plans for next year.
With Americans heading to the polls today, the financial markets are in a state of high excitement over the race to the White House.
Market volatility has been picking up in recent days, as investors have tried to assess the likely winner of today’s presidential election, and how congressional elections may play out too.
Yesterday, the US dollar dipped to a two-week low, after a poll showed Kamala Harris with a surprise three-point lead over Donald Trump in Iowa. The greenback is flat this morning.
Stocks fell on Wall Street last night too, with the Dow Jones industrial average losing 257 points or 0.6% to 41,794 points.
As the polls have been so tight, traders are concerned we will not know the result for several days or even longer.
Erik Knutzen and Jeff Blazek, co-CIOs of multi-asset strategies at Neuberger Berman, told clients that the uncertainty could last days, or even weeks: "Uncertainty around control of Congress, particularly the House, could also extend longer than uncertainty over who is in the White House. And a contested result could add still more days or weeks of market volatility.
'We have been anticipating a pick-up in volatility as the election nears, and this week is likely to see a peak in that volatility, lasting until we have an unambiguous outcome. This is a key reason why we have been counselling against taking substantial active positions – particularly active positions tilted to one or other election result.
"The exception would be in assets that can help to diversify portfolios and dampen their volatility, such as gold and other commodities."
Anxiety over the election has already contributed to US government bonds suffering their worst month in two years in October.
Betting markets have narrowed significantly on the eve of Tuesday’s presidential election, eroding Trump’s lead over Harris as Americans cast their votes.
The agenda
• 9am GMT: UK new car sales for October
• 9.30am GMT: UK service sector PMI
• 10am GMT: Treasury committee hearing with Richard Hughes, chair of the Office for Budget Responsibility, on its economic and fiscal forecast
• 2pm GMT: Treasury committee hearing with independent economists about the budget
We’ll be tracking all the main events throughout the day ... |
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