Thursday, October 24, 2024

Unions say no

Bloomberg Morning Briefing Americas

Good morning. Boeing workers reject a new contract as pensions prove a sticking point. A McDonald's supplier is recalling some onions. And we have a list of car features that are so annoying. Listen to the day's top stories.

Try again. Boeing workers rejected a labor contract that would have increased their wages by 35% over four years amid anger over pensions. Some 64% of the union members who cast ballots voted against the tentative agreement. At least that's lower than the overwhelming 94% vote against the initial offer in September. Elsewhere in the aircraft world, Elliott and Southwest Airlines are nearing a settlement that would avoid a proxy fight for control of the carrier's board.

McDonald's supplier Taylor Farms is recalling some yellow onion batches produced in a Colorado facility in response to a deadly E. coli outbreak at the burger chain. Taylor Farms said it hadn't found traces of the bacteria yet but decided to pull the products "out of an abundance of caution."

Vladimir Putin's attempt to build an anti-West alliance received pushback from Indian Prime Minister Narendra Modi. He said the BRICS group of emerging markets—whose leaders are currently meeting in Russia—shouldn't project itself as an alternative to global organizations. Modi is trying to balance the politics of forging closer ties with Russia, which India relies on for cheap oil, and with the US, which provides access to cutting-edge technology.

A Birkin luxury handbag. Photographer: Adrienne Surprenant/Bloomberg

Hermes sales rose as well-heeled consumers continued to snap up its pricey Birkin handbags. The company managed to buck the broader luxury market slump that has dragged down peers like Gucci-owner Kering and LVMH. Many high-end firms are suffering from a downturn in Chinese demand for luxury products.

The race for the White House is a cause for concern in Brazil. Billionaire Andre Esteves said he's worried about the lack of debate over the ballooning US deficit and what he sees as the excessive printing of money. The chairman of Banco BTG Pactual contrasted the US situation with investor concern over his own country's fiscal deficit. 

The Big Take

Deep Dive: Consumers Under Pressure

US businesses are finding it harder to increase prices, something that may give Federal Reserve officials comfort to continue cutting interest rates.

  • The diminished pricing power should help slow inflation, which rose more than forecast in September but has cooled substantially from the peaks registered two years ago.
  • Hobby Works is one of the US companies stocking up on less costly products now the pandemic-era days of passing on price hikes for items like train sets and drones are over. "Consumers have kind of maxed out," boss Michael Brey said.
  • The trend was highlighted in a Fed survey published yesterday which showed businesses across the country are seeing rising price sensitivity among their customers.

Opinion

Photographer: David Paul Morris/Bloomberg

Tesla's revival rests mostly on its re-pivot to EVs, and sets up an interesting near-term test, Liam Denning writes. Elon Musk has again made big promises and the company is nearing multiple deadlines at speed.

Before You Go

See if you can spot the gear shift in this 2025 Mercedes-Benz GLC 350e. Photographer: Hannah Elliott/Bloomberg

Annoyed by modern car trends that prioritize gimmicks over functionality? From lane assist and preemptive braking to unintuitive gear shifters and fake leather, here's a list of pet peeves.

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