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    Boeing reaches tentative labor deal with striking defense workers

    The IAM Union said Wednesday that it reached a tentative agreement with Boeing for better wages.
    Members will vote on the agreement, which is set for five years, on Friday.
    More than 3,000 IAM Union members at Boeing have been on strike since the beginning of August.

    Workers picket outside the Boeing Defense, Space & Security facility in Berkeley, Missouri, US, on Monday, Aug. 4, 2025.
    Neeta Satam | Bloomberg | Getty Images

    The union that represents striking Boeing defense workers said Wednesday it has reached a tentative agreement with the company, subject to final voting this Friday.
    The agreement, set for five years, includes better wages and restores a signing bonus, according to the International Association of Machinists and Aerospace Workers Union. Members of the union, largely based in St. Louis, Missouri, will vote on the tentative agreement on Friday morning.

    Specific details of the new agreement were not immediately available. The striking workers primarily assemble and maintain F-15 fighter jets and missile systems.
    More than 3,000 union members at Boeing have been on strike since the beginning of August. The employees had turned down a new contract offer, which had included 20% general wage increases and a $5,000 signing bonus, among other improvements.
    The strike was the first in almost 30 years.
    Before the strike, Boeing CEO Kelly Ortberg said the effects of a potential walkout would not be huge.
    “We’ll manage through this. I wouldn’t worry too much about the implications of the strike. We’ll manage our way through that,” he said on an earnings call at the end of July.

    Earlier this month, Boeing hired an undisclosed amount of new workers to replace those in its defense unit to meet demand.
    The defense strike comes after more than 32,000 unionized machinists who build commercial aircraft walked off the job for seven weeks after failed contract talks last year.
    — CNBC’s Leslie Josephs contributed to this report. More

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    Why American bondholders are jumpy about inflation

    For the first time since Donald Trump returned to the White House, it seems that the Federal Reserve will do what he wants. “Jerome ‘too late’ Powell must now lower the rate,” wrote the president on August 12th after the latest release of consumer-price data, in his umpteenth variation on this theme. Ten days later Mr Powell, the Fed’s chair, hinted strongly to an annual gathering of central bankers at Jackson Hole, Wyoming, that an interest-rate cut was indeed coming. Now traders think one is a racing certainty when the monetary-policy committee next meets on September 16th and 17th. The only debate is whether the Fed’s rate, currently between 4.25% and 4.5%, will fall by 0.25 percentage points or 0.5. More

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    Former Milwaukee Bucks owner Marc Lasry says he doesn’t believe L.A. Clippers owner Steve Ballmer circumvented salary cap

    Former Milwaukee Bucks owner Marc Lasry told CNBC in an exclusive interview that he doesn’t believe L.A. Clippers owner Steve Ballmer would knowingly break NBA rules, calling him “honorable” and a “gentleman.”
    Lasry’s comments about Ballmer stem from a recent report that the L.A. Clippers may have attempted to circumvent the league’s salary cap by paying star forward Kawhi Leonard through a third-party company.

    Former Milwaukee Bucks co-owner Marc Lasry said he doesn’t believe L.A. Clippers owner Steve Ballmer attempted to circumvent the NBA’s salary cap by working with a third-party company to surreptitiously pay superstar Kawhi Leonard in 2021
    “It’s not something I would ever believe,” Lasry told CNBC in an exclusive interview. “I’ve always found him to follow the rules and do what’s right.”

    Journalist and podcast host Pablo Torre reported earlier this month that Leonard had signed a $28 million sponsorship deal with a company called Aspiration. The deal required the NBA forward to do almost nothing with Aspiration to collect the money.
    Ballmer invested $50 million in Aspiration. Torre reported that sources from within Aspiration told him the purpose of the deal was for the Clippers to circumvent the league’s salary cap by paying Leonard more money off the books. The NBA has begun an investigation based on his reporting.

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    Lasry said there’s always pressure to win in the NBA, but “there’s not pressure to skirt the rules.”
    “In the NBA, everybody knows the rules. You follow it, and it’s because you know that if you don’t, you’re just going to get in a lot of trouble,” he said.
    Ballmer and the Clippers have denied the allegations of salary cap circumvention. Aspiration filed for bankruptcy earlier this year and its co-founders have been charged with fraud.

    “I think it’s probably a lot of smoke, but I don’t think there’s much there,” said Lasry.
    Lasry agreed to sell his stake in the Bucks in 2023 to Cleveland Browns owners Jimmy and Dee Haslam at a $3.5 billion valuation. More

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    Potbelly acquired by convenience store operator RaceTrac for $566 million

    Potbelly announced it is being acquired by convenience store operator RaceTrac in a $566 million deal.
    RaceTrac is a family-owned company headquartered in Atlanta operating more than 800 convenience stores across 14 states.
    The deal will value Potbelly shares at $17.12 each.

    Potbelly Sandwich Shop on October 3, 2015 in Louisville, Kentucky.
    Raymond Boyd

    Sandwich shop chain Potbelly will be acquired by convenience store operator RaceTrac in a $566 million all-cash deal, Potbelly announced Wednesday.
    The deal is expected to close in the fourth quarter of the year. Shares of Potbelly shot up more than 30% following the announcement.

    The Chicago-based Potbelly has more than 445 stores in the U.S., including franchised locations, with a goal of reaching 2,000, according to the company. RaceTrac, a family owned company headquartered in Atlanta, operates more than 800 convenience stores across 14 states.
    “RaceTrac’s strategic vision including their commitment to quality align perfectly with our mission to delight customers with great food and good vibes,” Potbelly CEO Bob Wright said in a statement. “We have positioned Potbelly for accelerated franchise-led growth in recent years, and this transaction fortifies our path while delivering certain and immediate value to our shareholders.”
    The deal will value Potbelly shares at $17.12 each, marking a roughly 47% premium to Potbelly’s price as of Tuesday. The company’s stock is up more than 75% this year.
    Wednesday’s deal is RaceTrac’s second significant acquisition, after its 2023 deal to acquire Gulf Oil.

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    Europe’s economy at last shows signs of a recovery

    On the face of it, the European economy is in a grim situation. The IMF forecasts average growth of just 0.4% this year for the continent’s three largest economies—Germany, France and Italy—rising to barely 1% in 2026. On September 8th the French government fell owing to disputes about how to close the country’s outsize budget deficit, prompting its benchmark bond yields to rise to the level of Italy’s for the first time since the creation of the euro in 1999. President Donald Trump is levying tariffs, the war in Ukraine continues unabated and Chinese commercial competition is becoming only more fearsome. More

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    Wells Fargo CEO says Trump is entitled to be vocal about the Fed

    Wells Fargo CEO Charlie Scharf said he supports the Federal Reserve’s independence and believes the central bank is still independent.
    Scharf added that he believes President Donald Trump is entitled to be vocal about his thoughts on interest rates.
    Trump has repeatedly attacked the Fed and called for it to lower its key benchmark rates this year.

    Wells Fargo CEO Charlie Scharf speaks during in interview with CNBC on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 4, 2025.
    Brendan McDermid | Reuters

    Wells Fargo CEO Charlie Scharf said he “absolutely” supports the Federal Reserve’s independence, but that President Donald Trump is free to express his beliefs on how the central bank should set monetary policy.
    The Fed has to be and currently is independent, Scharf said in an interview on CNBC’s “Squawk Box” Wednesday, where he referenced the fact that the central bank’s leaders serve distinct terms from elected politicians like the president. However, he added, there’s a difference between Trump opining on interest rates and the president impacting the Fed’s independence.

    “I think the administration is entitled to be vocal about it, and I think the Fed should do what it believes it should do based upon the information that it sees,” Scharf said.
    It’s not new for politicians to give their thoughts on the Fed’s rate decisions, Scharf said, but Trump “happens to be very vocal” about them.
    Trump has repeatedly called for the central bank to lower interest rates and launched unprecedented attacks on Fed Chair Jerome Powell, whom he has given the nickname “Too Late” in reference to the Federal Open Market Committee not reducing its benchmark interest rate since December 2024.
    The president also has attempted to fire Fed Governor Lisa Cook in August after his housing finance chief, Bill Pulte, accused her of mortgage fraud. On Tuesday, a judge blocked Cook’s dismissal while a lawsuit challenging the move proceeds through the court system.
    Markets widely expect the Fed to lower interest rates at its September meeting, as recent inflation data has come in lighter than expected and the labor market shows signs of trouble. CME FedWatch currently calculates a 90% chance the central bank will cut 25 basis points, and a 10% chance it’ll cut 50 basis points.
    “‘Too Late’ must lower the RATE, BIG, right now. Powell is a total disaster, who doesn’t have a clue!!!” Trump posted on Truth Social on Wednesday morning.

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    Brazil’s Embraer lands first U.S. order for E2 jets with Avelo Airlines buying 50 planes

    U.S. startup carrier Avelo Airlines inked a deal for 50 Embraer E195-E2s, with options for 50 more.
    The deal marks Brazilian plane maker Embraer’s first sale of E2 planes in the United States.
    Avelo first flew in 2021 and exited a host of markets earlier this year to cut losses.

    An Embraer SA E190-E2 passenger aircraft stands on display on day two of the Farnborough International Airshow (FIA) 2018 in Farnborough, U.K., on Tuesday, July 17, 2018. 
    Bloomberg | Bloomberg | Getty Images

    Brazilian airplane maker Embraer has landed its first U.S. sale of its efficient but slow-selling E2 jets with a 50-plane deal from startup carrier Avelo Airlines.
    Avelo first started flying in April 2021 with used Boeing 737s but has struggled and recently exited a host of cities on the West Coast. It has also turned to flying deportees for U.S. Immigration and Customs Enforcement, which has sparked protests, demonstrations and backlash from some politicians.

    The low-cost airline focuses on smaller cities, with a large operation out of Connecticut. On Monday, without providing a figure or an investor, Avelo announced it won the “single largest investment” since the carrier launched and said the money will be used to grow and improve customer experience. The new Embraer jets, scheduled to start arriving in the first half of 2027, represent big growth for Avelo, which has just 22 Boeing planes now, according to its website.
    Avelo said the order for 50 E195-E2 planes, with options for 50 more, will help it modernize its fleet. The airline is betting that the planes’ two-by-two seating configuration and quieter cabins compared with older jets will be a hit with customers.

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    While dwarfed by major U.S. plane maker Boeing and rival Airbus, Embraer is known for building regional jets that airlines rely on for thousands of flights a day for shorter routes or to smaller cities. It has also been solidly profitable for two years, while Boeing, which terminated a more than $4 billion tie-up with Embraer as it dealt with several crises, has struggled.
    Despite its solid footing, Embaer’s newer, more fuel-efficient E2 jets have been outsold by similarly sized aircraft like the Airbus A220 family.
    The E195-E2, the largest in that family, can seat 132 people in a single-class cabin with 31-inch seat pitch (a measure of the distance from one seat to the one behind it) or 120 people in a three-class cabin.

    “The aircraft’s exceptional performance, size, and efficiency make it the perfect choice for the future growth of our scheduled service network,” said Avelo CEO Andrew Levy, former United Airlines CFO, in a news release.
    The airline’s used Boeings can seat up to 189 passengers, but too much capacity can drive down fares. Struggling budget carrier Spirit Airlines, for example, lists Airbus A321Neos, with 229 seats.
    One challenge with smaller jets for bigger airlines has been that the “majors regard them as a fleet complication,” said Richard Aboulafia, managing director at AeroDynamic Advisory, an industry consulting firm, since they would have to train pilots, acquire simulators and put up other costs to add to their lineups.
    “The E2 has terrific economics but airlines have an irrational obsession for range they don’t need,” Aboulafia said.
    Avelo’s order is worth $4.4 billion at list prices, the airline said, but that is before usual discounts. Slower-selling planes or big orders often come with significant price cuts.

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    Wells Fargo CEO sees ‘more downside’ to U.S. economy as lower-income consumers struggle

    Wells Fargo CEO Charles Scharf said Wednesday that while corporations and higher-income consumers are thriving, lower income Americans are struggling to stay afloat.
    The bank’s data shows that while “companies are in really great shape” and spending among all income levels has been steady, there are signs of stress among lower earners, Scharf said in an interview on CNBC’s Squawk Box.
    “The low end is spending the money that they have, so their balances are below … pre-pandemic levels; they are living on the edge,” he said.

    Wells Fargo CEO Charles Scharf said Wednesday that while corporations and higher-income consumers are thriving, lower income Americans are struggling to stay afloat.
    The bank’s data shows that “companies are in really great shape” and spending and debt repayment rates among all income levels has been steady, but there are signs of stress among lower earners, Scharf said in an interview on CNBC’s Squawk Box.

    “There is this big dichotomy between higher-income and lower-income consumers which continues and is a real issue,” Scharf said.
    “The low end is spending the money that they have, so their balances are below … pre-pandemic levels; they are living on the edge,” he said.
    Scharf was responding to questions about the U.S. economy the day after JPMorgan Chase CEO Jamie Dimon said that a Labor Department report showed the economy is weakening. Hiring has slowed to a near halt in recent months, and the department’s latest revision on Tuesday lowered job creation by 911,000 positions for the year through March.
    “When you look at just the overall data in terms of jobs, it’s undeniable,” Scharf said.
    “So yeah, things actually feel very good today, certainly relative to what you think they could be,” he said. “But it’s not equal across wealth spectrums, and there’s probably more downside than upside.”

    Executives and investors are grappling with mixed signals about the U.S. economy in the first year of President Donald Trump’s second term. Stock indexes are near all-time high levels amid persistent concerns over price inflation and mounting worries over job creation.
    In his dealings with middle market companies across the U.S., Scharf said that many CEOs support Trump’s efforts to address the country’s trade imbalances with his tariff policies. Even so, the duties are a likely driver of tepid job creation, he said.
    “They’re willing to deal with the uncertainty, but they need to react to that,” Scharf said. “So part of that is just being very prudent in how they’re hiring….That certainly seems to be dampening the increase in jobs.” More