Raphael Stevens

More stories

  • 175 Shares169 Views

    in Business

    Boeing appoints independent advisor to lead 737 Max 9 review as groundings stretch on

    Boeing on Tuesday appointed retired Admiral Kirkland Donald to serve as a special advisor while the company grapples with the fallout from an Alaska Airlines midflight accident.
    The Federal Aviation Administration grounded Boeing 737 Max 9s earlier this month so the jets could undergo inspections after a door plug blew off Alaska Airlines Flight 1282 on Jan. 5.
    Donald will lead a review of Boeing’s quality management system and provide a report to CEO Dave Calhoun.

    Alaska Airlines N704AL is seen grounded in a hangar at Portland International Airport in Portland, Oregon, on Jan. 9, 2024.
    Mathieu Lewis-rolland | Getty Images

    Boeing on Tuesday appointed retired Admiral Kirkland Donald to serve as a special advisor while the company grapples with the fallout from an Alaska Airlines midflight accident on a 737 Max 9 and the subsequent grounding of that plane type.
    Donald will lead a review of Boeing’s quality management system and provide a report to CEO Dave Calhoun as well as the aerospace safety committee of Boeing’s board of directors, the company said in a press release.

    “I’ve asked him to provide an independent and comprehensive assessment with actionable recommendations for strengthening our oversight of quality in our own factories and throughout our extended commercial airplane production system. He and his team will have any and all support he needs from me and from across The Boeing Company,” Calhoun said in a statement.
    The Federal Aviation Administration grounded Boeing 737 Max 9s earlier this month so the jets could undergo inspections after a door plug blew off Alaska Airlines Flight 1282 on Jan. 5.
    The FAA said in a statement Friday that the grounding would remain in place while it reviews data from inspections of the aircraft.
    Donald served in the U.S. Navy as a nuclear trained submarine officer for almost 40 years before retiring in 2013. His last assignment was as the director of the Naval Nuclear Propulsion Program.
    Shares of Boeing fell about 8% Tuesday and are down almost 20% since the groundings began.Don’t miss these stories from CNBC PRO: More

  • 138 Shares119 Views

    in Business

    Flight disruptions linger as winter storms, Max 9 grounding snarl travel

    Airlines canceled more than 2,000 U.S. flights Tuesday as winter weather continued to disrupt travel.
    Storms in the Northeast helped drive about 6,000 delays and caused problems at major airports serving New York and Washington, D.C., according to flight tracker FlightAware.
    The continued grounding of the Boeing 737 Max 9 also contributed to cancellations and delays for Alaska Airlines and United, the only U.S. airlines operating the aircraft.

    More than 320 flights have been canceled because of a winter storm that brought snow and freezing temperatures to Denver International Airport in Denver, Colorado, on Jan. 15, 2024.
    RJ Sangosti | Denver Post | Getty Images

    Airlines canceled more than 2,000 U.S. flights Tuesday as winter weather continued to disrupt travel for millions of travelers.
    Storms in the Northeast contributed to nearly 6,000 delays and snarled operations at major airports serving New York and Washington, D.C., according to flight tracker FlightAware. Flight disruption improved from Monday, when severe weather contributed to more than 10,000 delays across the U.S.

    The Northeast storm dropped just more than an inch of snow in New York City’s Central Park, according to the National Weather Service, snapping a more than 700-day streak since the park had seen over an inch of snow on a single calendar day. Washington’s Ronald Reagan National Airport saw almost two inches of snow accumulation.
    Major airlines said travelers flying into dozens of airports in the storms’ paths can change their flights without paying fare differences.
    Airlines canceled or delayed about 70% of flights at New York’s LaGuardia Airport. At nearby Newark Liberty International Airport, a hub for United, more than 45% of flights were canceled or delayed.
    Reagan Airport saw more than 60% of its flights canceled or delayed. Southwest Airlines had the most delays of any U.S. carrier, with about 1,000, and canceled another nearly 450, or 14%, of its schedule.
    Airlines also canceled or delayed about 30% of flights at Denver International Airport as the area recovered from a Monday storm and wind chills that reached as low as 25 degrees below zero.

    The continued grounding of the Boeing 737 Max 9 also contributed to cancellations and delays for Alaska Airlines and United, the only U.S. airlines operating the aircraft. Alaska canceled more than 15% of its flights Tuesday, while United canceled about 14%.
    Both airlines waived change fees for travelers whose plans were affected by the planes’ grounding.Don’t miss these stories from CNBC PRO: More

  • 200 Shares169 Views

    in Business

    Classic car auction site Bring a Trailer’s sales hit record $1.4 billion even as prices drop

    Bring a Trailer, the popular online auction site for collectible cars, saw sales climb 2% to over $1.4 billion, a record for the company.
    It sold more cars in 2023 than in 2022, even as prices fell.
    Bring a Trailer’s success was a rare bright spot in the classic-car market.

    1967 Porsche 910
    Source: Bringatrailer.com

    Bring a Trailer, the popular online auction site for collectible cars, posted record sales in 2023, even as classic-car prices hit the skids.
    Bring a Trailer’s sales increased about 2% last year to over $1.4 billion from $1.35 billion in 2022, according to the company’s CEO Randy Nonnenberg. Bring a Trailer sold over 30,000 cars in 2023, up 19% from 2022.

    The growth in the number of cars sold helped to offset a decline in prices. The average price of a car sold on the site fell to $54,000 in 2023 from $59,500 in 2022.
    The company’s growth marked a rare bright spot in the classic-car market in 2023, as prices fell from their feverish highs of 2021 and 2022 and rising interest rates took a toll on collectors. Total auction sales of classic cars (for both online and live auctions) fell 3% last year to $4.19 billion from $4.32 billion in 2022, according to data from Classic.com. Prices for many models have fallen 10% or more, according to classic-car analysts.

    592-Mile 2014 Pagani Huayra
    Source: Bringatrailer.com

    In an interview with CNBC, Nonnenberg said inflation, economic uncertainty, a volatile stock market and turmoil overseas have cooled demand among potential bidders. But he said sellers are still offering trophy cars, and buyers are bidding, even if their offers are lower.
    “People were a little bit nervous about their portfolio, so that can slow down discretionary car buying,” he said. “We thought we might see that people would stop selling or holding cars if they’re nervous. Interestingly, we didn’t see that. We still saw people wanting to trade out into something else. It’s just changed the pricing a little bit.”
    Bring a Trailer’s low-cost, user friendly platform also continued to attract car enthusiasts. Its number of registered users grew to 1.2 million in 2023, up from 880,000 in 2022, according to Nonnenberg.

    The number of active bidders surged to over 520,000. Sellers on Bring a Trailer pay a flat fee of $99, while the buyer fee is 5% of the car’s sale price with a cap of $5,000 — a fraction of what traditional car-auction firms take. The site offers everything from $3,000 motorcycles to $200,00 Porsches and $1 million Ferraris.
    The big draw of Bring a Trailer is the auction voyeurism. Users follow bids and sales in real time, and view photos of and comments on rare cars. The site has up to 1,000 cars being auctioned at any one time, and auctions for each car typically last a week, Nonnenberg said.
    For 2024, the company is launching a new suite of services to speed up the checkout process, helping buyers with paperwork, money transfers and other requirements.
    Nonnenberg said this year’s sales are shaping up to be as good as or better than those of 2023, as prices stabilize and bidders gain confidence from potential interest rate cuts later in the year.
    “The spring months are really popular on Bring a Trailer because people are kind of coming out of winter, and opening up their garage and starting to care about travel and cars,” he said. “We think we will be right on track for a typical spring for us, which is exciting.”
    While Bring a Trailer didn’t beat its previous record for most expensive car sold on the site — a $5.36 million La Ferrari sold in 2022 — it managed to sell two cars for over $2 million last year. It’s most expensive sale in 2023 was a 2014 Pagani Huayra that sold for $2.9 million. It also sold a rare 1967 Porsche 910 race car for $2.5 million, a 2020 “Liquid Carbon” Ford GT for $1.8 million and a 2005 Porsche Carrera GT with only 601 miles for $1.8 million.
    Nonnenberg said more newer cars from the 2000s and 2010s are starting to go up for auction.
    “Even cars from the 2000s are starting to become collector’s items,” he said. “As everything goes electric, those cars from 20 years ago become more special. A lot of people think BAT is for 1960s cars. It’s actually much more modern.” More

  • 138 Shares129 Views

    in Business

    Space investment rebounded in 2023 with heavy sector M&A, report says

    Investment in the space sector bounced back last year, with $12.5 billion raised in 2023, according to a report Tuesday by New York-based Space Capital.
    That was well above last year’s $9.3 billion raised but still below the $15.3 billion brought in during the record-high space investment of 2021.
    Space infrastructure companies have been resilient through the recent downturn, but Space Capital’s report also highlighted 2023 as “a year of consolidation,” with 39 M&A deals.

    A long exposure photo shows Firefly Aerospace’s fourth Alpha rocket mission launching from California’s Vandenberg Space Force Base on Dec. 22, 2023.
    Sean Parker / Firefly Aerospace

    Investment in the space sector bounced back last year, rebounding closer to the record high of 2021, according to a report Tuesday by New York-based Space Capital.
    “Investment in Infrastructure remained strong, accounting for 70% of total 2023 investment and notching its second highest annual record, spurred by countercyclical revenue from government customers,” Space Capital managing partner Chad Anderson wrote in the report.

    The firm’s fourth-quarter report found that space infrastructure companies brought in $2.6 billion of private investment during the period. That brought the sector to $12.5 billion in total investment for 2023, well above last year’s $9.3 billion raised but still below the $15.3 billion brought in during 2021.
    Top raises during the fourth quarter included funds announced by space companies Firefly Aerospace, Ursa Major, D-Orbit, Stoke Space and True Anomaly.
    The quarterly Space Capital report divides investment in the industry into three technology categories: infrastructure, distribution and application. Infrastructure includes what would be commonly considered as space companies, such as firms that build rockets and satellites.

    Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.

    Space infrastructure companies have been resilient through the recent downturn. But Anderson also highlighted 2023 as “a year of consolidation,” with 39 merger and acquisition deals across the sector — such as Viasat’s acquisition of Inmarsat and L3Harris’ purchase of Aerojet Rocketdyne.
    “We expect to see even more in 2024. The prospect of declining interest rates is boosting equity valuations and improving [leveraged buyout] math, making M&A more likely in 2024,” Anderson told CNBC.

    “In 2024 we expect that VCs will be more selective with reserves, letting their low-growth companies run out of cash, in favor of deploying into higher-growth prospects. While we expect to see deal count and volume rebound in the space capital markets, markdowns and write-offs will continue — and this will also lead to more failures and acquisitions,” Anderson added.

    Don’t miss these stories from CNBC PRO: More

  • 188 Shares179 Views

    in Finance

    Amazon, Microsoft, Meta and others accused by rivals of not respecting new EU competition rules

    A host of companies including Ecosia, Qwant and Shibsted have signed an open letter accusing Big Tech “gatekeepers” of not doing enough to engage effectively with them and others.
    The firms have called on the European Commission and the European Parliament to do everything in their power to ensure the gatekeepers comply with the letter and spirit of the Digital Markets Act.
    It comes ahead of a key March 7 deadline, by which Amazon, Alphabet, Apple, Microsoft, Meta and ByteDance are required to be compliant with the new rules.

    The logos of Google, Apple, Facebook, Amazon and Microsoft displayed on a mobile phone with an EU flag shown in the background.
    Justin Tallis | AFP via Getty Images

    A raft of major technology and media companies have signed an open letter accusing tech giants of failing to bring their businesses into full compliance with incoming European Union digital competition rules.
    The signatories say that companies defined by the EU as “gatekeepers,” including Google, Amazon, Apple, Meta, Microsoft, and TikTok owner ByteDance, haven’t done enough to engage effectively with them and others in their industry.

    Under the EU’s Digital Markets Act, companies with more than 45 million monthly active users and a market capitalization over 75 billion euros ($81.2 billion) are considered gatekeepers.
    They are required to, for example, make their messaging apps work with those of rivals, and let users decide which apps come pre-installed with their devices.
    Another EU requirement is that these platforms do not implement practices that lead to the “self-preferencing” of their services over others.
    The open letter, which was signed by international media group Schibsted, eco-friendly search engine Ecosia, privacy-focused search engine Qwant, secure messaging app Element, and VPN service ProtonVPN, said the gatekeepers “have either failed to engage in a dialogue with third parties or have presented solutions falling short of compliance with the DMA.”
    They also said that businesses and consumers have been largely “kept in the dark” about what’s going to happen after March 7, 2024 — a pivotal deadline by which all six Big Tech gatekeepers need to get their businesses into compliance with the DMA.

    “The signatories of this letter represent thousands of businesses affected by the DMA,” the letter stated. “They urge the gatekeepers to engage as soon as possible with business users and other stakeholders, such as business and consumer associations, in a constructive dialogue and make swift progress on their proposed compliance solutions.”
    “They also urge the European Commission and the European Parliament to use all within their power to ensure that the gatekeepers comply with both the letter and spirit of the DMA, starting from 7 March 2024,” the signatories added.
    Here are the 24 companies that signed the letter:

    Adevinta
    Allegro
    Billiger.de
    Ceneo
    CompareGroup
    Ecosia
    Element
    Favi
    Heureka Group
    Idealo
    Kelkoo
    Ladenzeile
    Le Guide.com
    OLX
    Open-Xchange
    Panther Holding GmbH
    Preis.de
    Prisjakt
    Proton
    Qwant
    Runnea
    Schibsted
    Solute
    Vipps

    The EU Commission and the EU Parliament were not immediately available for comment on the issue when contacted by CNBC. CNBC also reached out to Google-parent Alphabet, Amazon, Apple, Meta, Microsoft, and ByteDance.

    Christian Kroll, CEO and co-founder of Ecosia, told CNBC ahead of the open letter that regulators needed to keep large technology companies in check, or else risk businesses like his facing financial consequences.
    “There has always been a huge challenge: Google has had the monopoly for over a decade, but I think we are currently more optimistic than that. It is yet to be determined what will happen on March 7 but we know that 2024 must be the year of fair choice in online search for Europe,” Klein told CNBC.
    “EU policy makers have the choice to deliver a digital market that delivers fair competition and choice for European consumers and business,” Kroll added.
    Of particular issue for Ecosia and other competing search engines was a proposal from Google for a “choice screen” that would display different search engines on the same window.
    “Without a choice screen that is designed fairly, in the letter and spirit of the DMA, we will not see a positive shift in market share but rather further entrenchment of the dominance of gatekeepers such as Google – which would be a failure of the DMA,” Kroll added.
    “Ahead of the March 2024 deadline, we need support from the EC and all hands on deck to ensure proactive engagement. The focus of digital regulators around the world will be on Europe as global interest in choice screens increases.”
    Last week, the EU Commissioner for Competition Margrethe Vestager met with the CEOs of Apple, Alphabet, and Qualcomm to discuss regulation and competition policy compliance, according to a post by Vestager on X.
    She said she had discussed Apple’s obligation to allow distribution of its apps outside the company’s proprietary AppStore, as well as ongoing competition cases including one involving the firm’s Apple Music music streaming platform.
    With Google CEO Sundar Pichai, Vestager said she discussed the design of choice screens, self-preferencing requirements under the DMA, and an EU antitrust case looking at the company’s role in the advertising technology market.
    She didn’t specify what was discussed with Qualcomm CEO Cristiano Amon. More

  • 125 Shares169 Views

    in Finance

    Goldman Sachs tops revenue estimates on better-than-expected asset management results

    Here’s what the company reported: Earnings of $5.48 per share; it wasn’t immediately clear if that was comparable to the $3.51 estimate of analysts surveyed by LSEG.
    Revenue: $11.32 billion vs. $10.80 billion expected, according to LSEG

    David Solomon, Chairman and CEO, Goldman Sachs, participates in a panel discussion during the annual Milken Institute Global Conference at The Beverly Hilton Hotel on April 29, 2019 in Beverly Hills, California.
    Michael Kovac | Getty Images Entertainment | Getty Images

    Goldman Sachs on Tuesday posted fourth-quarter results that topped analysts’ expectations on better-than-expected asset and wealth management revenue.
    Here’s what the company reported versus what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expected:

    Earnings: $5.48 per share; it wasn’t immediately clear if that was comparable to the $3.51 estimate of analysts surveyed by LSEG.
    Revenue: $11.32 billion vs. $10.80 billion expected, according to LSEG

    Goldman said earnings for the quarter jumped 51% to $2.01 billion, or $5.48 per share, from a year ago, when the bank was weighed down by loan-loss provisions and surging expenses. Companywide revenues rose 7% to $11.32 billion from a year ago on growth from the bank’s asset and wealth management and platform solutions divisions.
    Asset and wealth management revenue jumped 23% from a year earlier to $4.39 billion, topping the StreetAccount estimate by nearly $550 million, on higher revenue from equity and debt investments and rising management fees. Helped by rising markets in the fourth quarter, Goldman said it booked gains on public equities and markups in debt investments.
    Other Goldman operations met or slightly missed expectations. For instance, while platform solutions revenue jumped 12% to $577 million, that was below the $612 million estimate.
    In the company’s trading division, stronger-than-expected results in equities mostly offset a miss in fixed income revenue.
    Equities trading jumped 26% to $2.61 billion in revenue, thanks to derivatives activity and equities financing, topping the $2.22 billion StreetAccount estimate. Fixed income posted $2.03 billion in revenue, a 24% decline from a year earlier on weakness in interest rate and currencies trading, and well below the $2.53 billion estimate.

    Goldman CEO David Solomon has endured a tough year, thanks to dormant capital markets and strategic missteps.
    But hope is building that Goldman can turn a corner after pivoting away from Solomon’s failed consumer banking efforts.
    Goldman’s core activities of investment banking and trading may not recover in the fourth quarter, but analysts will want to hear about the possibility of a rebound in 2024. Early signs are that corporations that have waited on the sidelines to acquire competitors or raise funds may finally be ready to act this year.
    Unlike more diversified rivals, Goldman gets most of its revenue from Wall Street. That can lead to outsized returns during boom times and underperformance when markets don’t cooperate.
    On Friday, JPMorgan Chase, Bank of America, Citigroup and Wells Fargo each posted results that were marred by a litany of one-time items.
    This story is developing. Please check back for updates. More

  • 138 Shares189 Views

    in Finance

    Morgan Stanley revenue tops estimates, helped by strong investment banking business

    The Morgan Stanley headquarters is seen in New York City on Jan. 17, 2023.
    Michael M. Santiago | Getty Images

    Morgan Stanley on Tuesday reported fourth-quarter revenue that surpassed expectations, boosted by the strength in investment banking.
    Here’s how the bank did compared with Wall Street expectations:

    Earnings per share: 85 cents, may not compare with $1.01 expected, according to LSEG
    Revenue: $12.90 billion vs. $12.75 billion, expected, according to LSEG

    Shares of Morgan Stanley climbed more than 1% in premarket trading following the results.
    Morgan Stanley said its revenue from investment banking rose 5% from a year ago on the back of a 25% increase in fixed income underwriting revenue amid higher investment grade issuances.
    Net income came to $1.52 billion, or 85 cents per share, down more than 30% from $2.24 billion, or $1.26 per share, a year ago.
    The bank’s results were hit by two one-time regulatory charges, however. There was a $286 million charge related to a Federal Deposit Insurance Corporation special assessment and a $249 million legal charge to settle a criminal investigation and a related Securities and Exchange Commission probe of the unauthorized disclosure of block trades.
    This is the first earnings report under new CEO Ted Pick, who succeeded James Gorman as CEO at the start of 2024. Pick is a Morgan Stanley veteran who rose through the ranks to lead the bank’s Wall Street operations.

    “In 2023, the Firm reported a solid ROTCE [return on average tangible common shareholders’ equity] against a mixed market backdrop and a number of headwinds,” Pick said in a statement. “We begin 2024 with a clear and consistent business strategy and a unified leadership team. We are focused on achieving our long-term financial goals and continuing to deliver for shareholders.”
    Wealth management delivered fourth-quarter net revenue of $6.65 billion, slightly higher than the $6.63 billion from the same quarter a year ago. Revenue from investment management was $1.46 billion for the quarter, little changed from last year.
    Shares of the New York-based bank have fallen nearly 4% in 2024 after a 10% gain last year. More

  • 125 Shares119 Views

    in Business

    Burger King owner Restaurant Brands buys chain’s largest U.S. franchisee

    Restaurant Brands International will spend about $1 billion to buy the largest U.S. franchisee of Burger King.
    The acquisition comes more than a year after Restaurant Brands unveiled its turnaround strategy for Burger King U.S.
    Restaurant Brands plans to remodel 600 of Carrols’ Burger King locations rapidly over the next five years and then sell them back to franchisees.

    Burger King fast food restaurant with menu and customers.
    Jeff Greenberg | Universal Images Group | Getty Images

    Restaurant Brands International is buying Carrols Restaurant Group, the largest Burger King franchisee in the U.S., for about $1 billion in cash.
    Restaurant Brands will pay $9.55 per share to acquire Carrols, which operates more than 1,000 Burger King restaurants and 60 Popeyes locations. Carrols’ stock closed at $8.42 on Friday, giving it a market value of $459 million. The company’s shares jumped more than 12% in premarket trading Tuesday.

    The deal is expected to be completed by the second quarter of 2024.
    The acquisition, announced on Tuesday, is a shift in strategy for Burger King. Its restaurants have been almost entirely franchised for the last decade.
    It comes more than a year after Restaurant Brands unveiled a $400 million plan to revive Burger King’s U.S. business. Burger King sales had been lagging behind the competition, and Wendy’s overtook it as the second-largest burger chain by U.S. sales. The comeback strategy focuses on investing in restaurant remodels and advertising to drive demand and boost franchisee profits.
    Restaurant Brands plans to remodel 600 of Carrols’ Burger King locations rapidly over the next five years and then sell them back to franchisees, Tom Curtis, president of Burger King U.S. and Canada, said in a statement. The company will invest about $500 million, funded by Carrols’ operating cash flow, to pay for the renovations.
    After selling off the majority of Carrols’ locations in five to seven years, Burger King plans to hold onto a couple hundred restaurants for “strategic innovation, training, and operator development purposes.”
    Earlier this month, Carrols preannounced its fourth-quarter results, sharing that same-store sales for its Burger King locations rose 7.2%, while traffic increased 2.9%. The franchisee typically outperforms the rest of Burger King’s U.S. system. More