Boeing factory workers vote to strike; gold hits record high – business live | Business

Here are some photos of Boeing workers voting on their pay deal yesterday:

Boeing has declared that it is ready to return to negotiations with its worker to agree a pay deal.

In a statement issued after staff voted to strike, the company says:

The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members.

We remain committed to resetting our relationship with our employees and the union and we are ready to get back to the table to reach a new agreement.

Newsflash: Britain’s competition regulator has raised concerns over the proposed merger of two mobile phone companies.

The Competition and Markets Authority (CMA) has warned this morning that Vodafone’s $19bn merger with Three UK could hurt customers.

The deal could lead to “tens of millions of mobile customers having to pay more” for their services, the CMA says, as it sets out its provisional view on the merger.

On the other hand, it also flags that the merger could improve the quality of mobile networks.

The competition watchdog says:

The CMA has particular concerns that higher bills or reduced services would negatively affect those customers least able to afford mobile services as well as those who might have to pay more for improvements in network quality they do not value.

As a result, the CMA has provisionally concluded that the merger would lead to a substantial lessening of competition in the UK – in both retail and wholesale mobile markets.

That’s potentially a blow to Vodafone and Three’s hopes. But, this isn’t a final decision – the CMA is going to consult, and see what commitments could be made to adress its concerns.

But, it retains the option to prohibit the merger if it’s not satisfied.

Stuart McIntosh, chair of the inquiry group leading the investigation, says

We’ve taken a thorough, considered approach to investigating this merger, weighing up the investment the companies say they will make in enhancing network quality and boosting 5G connectivity against the significant costs to customers and rival virtual networks.

We will now consider how Vodafone and Three might address our concerns about the likely impact of the merger on retail and wholesale customers while securing the potential longer-term benefits of the merger, including by guaranteeing future network investments.

The Unite union has urged the CMA to block the deal, fearing it would lead to job losses and higher prices.

Boeing is facing possible delays to the production of some planes after machinists at the troubled aircraft manufacturer voted to go on strike.

Tens of thousands of workers at Boeing have voted to reject a new contract, which would have raised their pay by 25% over four years, and to go on strike instead – the first walkout in 16 years.

The move puts pressure on the aircraft manufacturer to offer more generous terms, and is a fresh blow to Boeing as it tries to raise quality following problems with its manufacturing processes.

The International Association of Machinists and Aerospace Workers said 94.6% of voting workers rejected a new contract and 96% approved the strike — easily surpassing a two-thirds requirement. IAM District 751 represents over 30,000 Boeing workers in Washington state

The strike was set to begin today in the US.

Boeing CEO Kelly Ortberg had pleaded with workers not to go on strike, warning it would put the company’s “recovery in jeopardy”.

S&P Global Ratings has flagged that an extended worker strike could delay the planemaker’s recovery and hurt its overall credit rating.

Ben Tsocanos, aerospace director at S&P Global Ratings, believes the strike could undermine Boeing’s ability to reach its target of increasing MAX jet production to 38 planes a month by the end of the year.

Tsocanos added:

“A shorter strike (along the lines of the situation at Spirit Aero last summer where union leadership accepted the company’s offer and membership rejected it) would probably be manageable for the company and the rating.”

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Optimism that the US central bank will finally start cutting interest rates next week has helped to push the gold price to a new alltime high.

Spot gold has hit a record high of $2,570.03 per ounce this morning, adding to strong gains on Thursday. Bullion has gained about 3% so far this week, and 25% so far this year.

The gold price was pushed up by a weakening US dollar, which is close to its lowest level of 2024.

The dollar slipped as investors ponder how aggressively the US Federal Reserve will cut borrowing costs. A cut – the first in the current cycle – next week is widely expected, but traders are split between anticipating a small, quarter-point cut or a larger half-point reduction to the Federal funds rate.

Kyle Rodda, senior financial market analyst at capital.com, explains:

The weaker Dollar provided room for gold to finally break-out to new record highs. Although yields have lifted as the markets price-out a 50 point move from the US Federal Reserve, the drop in the Greenback was enough to spark a break-out for the yellow metal from its recent range.

The outlook and price-action remains bullish for gold, even if sentiment might be erring on the excessively bullish side.

The agenda

• 8.30am: Eurozone finance ministers hold a Eurogroup meeting in Budapest

• 9.30am BST: Bank of England/Ipsos Inflation Attitudes Survey

• 10am BST: Eurozone industrial production data for July

• 3pm BST: University of Michigan’s US consumer confidence report