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Boeing, Union Reach Tentative Deal To End 5-Week Long Strike
Boeing (BA) And The Union Represent...
Investopedia
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Boeing (BA) and the union representing its machinists reached a tentative deal that could end the five-week long strike that has hobbled the aircraft maker’s operations.
The union said it plans to hold a vote on the new settlement Wednesday, according to a statement Saturday.
The deal includes a 35% bump in wages over four years, up from Boeing’s past offers of 30% and 25%, but still below the union's stated goal of 40%. The agreement also includes a boost to members’ 401(k) plans, among other benefits, though it will not bring back the traditional pension plans workers wanted.
Boeing’s operations have taken an estimated $1 billion hit a month from the strike, exacerbating the plane maker’s financial difficulties after burning through billions of dollars earlier this year to contend with production pauses to address several safety issues and investigations.
Last week, Boeing announced a series of measures to curb costs, including cutting around 10% of its workforce or 17,000 people, and postponing the launch of its first 777x jetliner.
The aircraft maker also said earlier this week it plans to sell as much as $25 billion in debt or stock, and made a deal with banks to receive a $10 billion credit line, among other moves to shore up its finances.
Boeing's stock price has lost more than 40% of its value in 2024 through Friday’s close, making it one of the worst-performing stocks in the S&P 500 so far this year.
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Some investors want to spice up their retirement plans with exposure to private equity. Experts say that might not be right for everyone.
A recent survey by asset management company Schroders found that more than a third of investors participating in workplace retirement savings plans like 401(k)s would invest in private equity or private debt if they had access to it. Fourth-fifths, meanwhile, said they would put more money in their retirement plans if they had access to private market investments.
Private equity is an alternative investment that involves companies that aren’t available on public stock exchanges. The Department of Labor said in 2020 that defined contribution (DC) plans are allowed exposure to private equity through investing in a diversified fund.
Private equity investors acquire all or parts of the companies they invest in. While financial advisers say it can offer the potential for strong returns, they also urge caution.
Retail investors could score high returns—one that's uncorrelated with public-market performance, which can make them attractive as an alternative to traditional stock markets—through private-market funds, said Andrew Herzog, a CFP at The Watchman Group.
Private equity funds are considered long-term investments. When private equity firms invest in private companies, they take an active role in the management of the companies in an attempt to boost their valuations. It can take years for returns to be realized.
“The downside would be the illiquidity—many times your money is locked up for years at a time,” said Herzog.
In addition to lower liquidity, private equity investments can be complicated in defined contribution plans because they have higher fees and lack price transparency, and are less liquid, according to Morningstar researchers.
"I wouldn't recommend it," said Herzog.
Those issues are likely among the reasons retirement plan sponsors have been slow to have private equity as an option in their offerings. A report by Cerulli Associates earlier this year found that nearly half of defined-contribution asset managers were not planning to add private equity to workplace retirement plans.
Not all retirement experts think investors should avoid private equity completely. Kim Abmeyer, founder of Abmeyer Wealth Management, believes that the illiquidity of private equity investments can make them better for those who are further away from retirement.
And as more companies are funded by private equity, Abmeyer said, being able to invest in them through a retirement account gives workers access to otherwise untapped markets.
“Private equity and alternatives like that are intended for longer time horizons. There's no requirement to start taking distributions until [you’re] 73 years old,” said Abmeyer. “So you've got a nice runway for an investment like that to play out.”
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A techie has raised alarm over some suspicious activities involving streetlight poles on the Third Mainland Bridge, Lagos.
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Dr. Shagz has delivered on his promise, sends an undisclosed amount after pledging ₦50 million to VDM, and expresses readiness to support Jarvis’ surgery.
He said VDM is doing a lot, although there are times does not agree with what is doing but on the charity foundation he will do what what is needed to support him.
Although, he initially made a pledge of N50 million, the amount of money sent was not disclosed and he is even asking for what Jarvis operation will cost?
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Mixed reactions as fashion designer Veekee James sprayed dollars while her husband sprayed Naira on a couple at a recent wedding.
Majority of the opinion of pool felt her action was not sensitive as it sh@med her husband to be p%%r while she is rich and that she could have shared the Dollars into two for both of them to have it and spray on the couple.
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CVS Health (CVS) stock tumbled about 5% in Friday after the pharmacy and healthcare giant announced the replacement of Chief Executive Officer (CEO) Karen Lynch with David Joyner, a longtime company veteran who most recently ran Caremark, its pharmacy benefit manager (PBM).
Joyner is taking the top job effective immediately, CVS said, as the company has weathered a difficult year of sales at its namesake pharmacies and problems with its bets on Medicare coverage that have led it to lower its full-year outlook several times already.
Newly appointed executive chairman Roger Farah said the board believes it was "the right time to make a change," and said Joyner's decades of experience with CVS "can help us more directly address the challenges our industry faces" and make necessary changes.
In addition to the CEO swap, CVS also provided preliminary guidance for third-quarter profit, projecting earnings per share (EPS) between 3 cents and 8 cents, and adjusted EPS of $1.05 to $1.10. Analysts are expecting EPS of $1.27, and adjusted EPS of $1.69, according to consensus estimates compiled by Visible Alpha.
The company is set to report third-quarter earnings Nov. 6, and said the lackluster projections are connected to costs related to its Medicare operations and other one-time expenses like store closures.
first reported the news that the CEO change was imminent, sending CVS stock lower Friday morning. The stock is down more than 20% this year.
: This article has been updated to reflect new share price information.
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