The daily business briefing: January 16, 2024
1. Boeing increases inspections on 737 Max 9 jets
Boeing said Monday it would beef up its quality control program with more inspections after a cabin panel blew out of one of its 737 Max 9 jets during an Alaska Airlines flight this month. The incident forced an emergency landing, but nobody was seriously injured. The aircraft maker said it would add inspections at its own factory and that of supplier Spirit AeroSystems, which installs plugs over unused exit doors. The announcement of the new inspections came after the Federal Aviation Administration on Friday extended its grounding of 171 Max 9 aircraft for safety checks. United and Alaska airlines, the two biggest Max 9 operators, have found loose bolts on some door plugs on other planes since the incident. Reuters, The New York Times
2. Zelenskyy battles for attention at Davos
Ukrainian President Volodymyr Zelenskyy is trying to keep global attention on his country's effort to fight off Russia's invasion in a headline appearance Tuesday on the first full day of the World Economic Forum's annual meeting in the Swiss ski resort of Davos. Other leaders are focusing on attacks on vessels in the Red Sea by Houthi rebels in Yemen. Qatar's prime minister, Sheikh Mohammed bin Abdulrahman Al Thani, said worrying about the maritime attacks amounted to "focusing on the symptoms and not treating the real issue," which is the Israel-Hamas war in Gaza. "As soon as it's defused, I believe everything else will be defused," he said. Other topics being discussed include the economic impact of generative AI, clean energy and interest rates. The Associated Press
3. Washington sues to block Kroger-Albertsons merger
Washington state Attorney General Bob Ferguson filed a lawsuit on Monday seeking to block the merger of Kroger and Albertsons, the two largest U.S. supermarket chains. Ferguson said the $24.6 billion proposal to combine No. 1 grocery operator Kroger — owner of Ralphs, Harris Teeter, Fred Meyer and other chains — and No. 2 Albertsons would give shoppers "fewer choices and less competition," eventually forcing customers to pay higher prices. Kroger and Albertsons, which owns Safeway and Vons, say they need to join forces to compete with giant, nontraditional rivals such as Amazon, Costco and Walmart. NPR
4. Stock futures fall ahead of economic data, bank earnings
U.S. stock futures fell Tuesday at the start of a holiday-shortened trading week for Wall Street. Futures tied to the Dow Jones Industrial Average and the S&P 500 were down 0.4% and 0.5%, respectively, at 7 a.m. ET. Nasdaq futures were down 0.6%. Investors are awaiting December retail sales data coming out Wednesday and bank earnings for fresh signs on how the economy is faring as inflation cools and the Federal Reserve contemplates when to start lowering interest rates. European Central Bank member Francois Villeroy de Galhau said at the World Economic Forum in Davos, Switzerland, that changes to monetary policy should hinge on how fast inflation improves. "It's too early to declare victory," he said. "The job is not yet done." CNBC
5. IMF says AI could impact 40% of jobs
The International Monetary Fund warned in a new report that artificial intelligence technology would affect about 40% of jobs and "likely worsen overall inequality." The IMF said generative AI will probably affect even more jobs — about 60% — in the most advanced economies. In about half of these cases, workers could benefit from AI through enhanced productivity, while in other instances AI will be able to take over tasks now done by humans, which could reduce labor demand and drive down wages or even eliminate some jobs. In the lowest-income countries, only about 26% of jobs will see an impact from AI, according to the IMF. BBC
