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As technology titans jockey to back hot new startups, they are extracting explicit or implicit promises of revenue in return. loadingMicrosoft’s injection of $10 billion into OpenAI in January helped kick off the craze. As part of their deal, the ChatGPT operator agreed to exclusively use its new investor’s cloud computing services. Much of the invested capital should be returned relatively quickly as AI firms buy back-end services. Nvidia (NVDA.O) has at least 80% and as much as 95% of the AI market, according to estimates by analysts.

Persons: Sam Altman, Satya Nadella, OpenAI, Optimists, cynics, Jeffrey Goldfarb, Sharon Lam, Aditya Sriwatsav, Streisand Neto Organizations: Reuters, Microsoft, Financial Times, Apple, Nasdaq, Big Tech, OpenAI, Wall Street, Google, Reuters Graphics Reuters, Cisco Systems, Lucent Technologies, Nortel Technologies, Company, Global, Telecom, Nortel, Network, Nvidia, Thomson Locations: OpenAI, Silicon Valley

☆ Amazon’s shipping splurge delivers payoff
▼ + stars: | 2023-11-27 | by ( ) www.reuters.com time to read: +2 min

A worker sorts products during Cyber Monday operations at the Amazon's fulfillment center in Robbinsville, New Jersey, U.S., November 27, 2023. In 2016, before its in-house logistics initiative took off, global shipping costs tallied about $16 billion, with customers covering about half. Last year, the total expense was about five times higher. Moreover, higher turnover means higher profit, especially from ancillary services such as advertising. And that’s before the generally lucrative holiday season, which should bring Amazon shareholders some more upbeat shipping news.

Persons: Robert Cyran, Julius Baer’s, Warren Buffett, Jeffrey Goldfarb, Sharon Lam Organizations: Reuters, UPS, FedEx, Wall Street Journal, Services, Shipping, Amazon, X, Thomson Locations: Robbinsville , New Jersey, U.S, America, China

NEW YORK, Nov 20 (Reuters Breakingviews) - Microsoft (MSFT.O) boss Satya Nadella’s stressful weekend is probably only the beginning. A lack of corporate governance protections left Nadella with few options to salvage his company’s $13 billion investment in OpenAI. As a 49% owner of OpenAI, Microsoft could have hedged itself by getting more directly involved in oversight. Recruiting Altman is at least a better outcome for Microsoft than standing by and watching him go to Google, a rival startup or opening his own AI shop. Money and salesmanship are two essential elements of developing AI, but so are the proper controls, risk management and strategic clarity.

Persons: Satya Nadella’s, OpenAI, Sam Altman, Altman, Reid Hoffman, Elon Musk’s, Satya Nadella, Greg Brockman, OpenAI’s, Brockman, Jeffrey Goldfarb, Sharon Lam Organizations: Reuters, Microsoft, Google, Altman, Thomson Locations: OpenAI

☆ Walmart can overcome its dulling inflationary edge
▼ + stars: | 2023-11-16 | by ( ) www.reuters.com time to read: +2 min

The company’s top line grew 5.2% in the third quarter from a year earlier while the bottom line swung to a profit. Revenue growth may now slow while costs, including wages, could take longer to come down and squeeze profit margins. Operating expenses ticked up nearly a percentage point, to 21% of net sales, from the previous three quarters. Even if the price of eggs is getting cheaper, there’s no clear reason Walmart’s stock should do the same. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Walmart Doug McMillon, Donald Trump, Eisenhower, Joshua Roberts, Doug McMillon, McMillon isn’t, Jennifer Saba, Jeffrey Goldfarb, Aditya Sriwatsav Organizations: Walmart, REUTERS, Reuters, X, Thomson Locations: Washington , U.S, China

☆ Uncle Sam cleverly goes long on short sellers
▼ + stars: | 2023-11-15 | by ( John Foley | ) www.reuters.com time to read: +4 min

The United States is a rare place where financial regulators hand out cash for information that leads to successful enforcement. Moreover, the rewards are not just for corporate insiders, but also short sellers. In 2019, the SEC doled out $60 million, a sum it has already exceeded nearly five-fold this year. Skeptical investors – notwithstanding their sleuthing skills – generally trade on information regulators could in theory find themselves. Short sellers aren’t always welcome, but some are undeniably being put to good use.

Persons: Julia Nikhinson, Carson Block, Kyle Bass, Waters, It’s, aren’t, ”, Jeffrey Goldfarb, Sharon Lam Organizations: U.S, Capitol, Congress, REUTERS, Reuters, U.S . Securities, Exchange Commission, Hayman Capital, SEC, Bloomberg, Futures Trading Commission, European, Harvard University, Workers, Thomson Locations: Washington , U.S, United States

☆ Goodyear tune-up may go beyond rotating the tires
▼ + stars: | 2023-11-15 | by ( ) www.reuters.com time to read: +2 min

Aug 20, 2023; Watkins Glen, New York, USA; A detailed view of Goodyear Eagle racing tires prior to the Go Bowling at The Glen at Watkins Glen International. Mandatory Credit: Matthew O'Haren-USA TODAY Sports Acquire Licensing RightsNEW YORK, Nov 15 (Reuters Breakingviews) - A century is a long time to accumulate bad habits. Goodyear Tire & Rubber (GT.O) on Wednesday said it would try to shed some, by selling $2 billion of assets, streamlining its business and paying down debt. As the $4 billion company tidies itself, it could turn out to be worth more in pieces. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Watkins, Matthew O'Haren, Richard Kramer, Elliott, Goodyear, Jonathan Guilford, taints, Jeffrey Goldfarb, Aditya Sriwatsav, Sharon Lam Organizations: Goodyear Eagle, Watkins Glen International, Reuters, Goodyear Tire &, Elliott Investment Management, Electric, United States Steel, Goodyear, X, Alstom, Thomson Locations: , New York, USA

☆ Payments-app war drags banks into discomfort zone
▼ + stars: | 2023-11-14 | by ( John Foley | ) www.reuters.com time to read: +4 min

NEW YORK, Nov 14 (Reuters Breakingviews) - Banks tend to have a consistent message for customers who unwittingly make payments to scammers: tough break. Rapid growth in digital payments has brought out a softer side in lenders such as JPMorgan (JPM.N) and Bank of America (BAC.N). If the con artist was posing as the victim’s bank, a government agency or a legitimate company – say, a utility – the sender’s bank will return the funds if other criteria are met and recoup them from the recipient’s bank. From next year its banks will have to reimburse victims of online payment deceit. Moreover, convenience and trust are powerful weapons: Bank of America customers now use Zelle twice as often as their checkbooks.

Persons: Banks, Taylor Swift, Zelle, Wells, Jeffrey Goldfarb, Sharon Lam Organizations: Reuters, JPMorgan, Bank of America, TSB, SVB, Warning Services, Services, PNC Financial, US Bancorp, Truist, Thomson Locations: Zelle, Britain, Wells Fargo

☆ Palantir’s mythology is far too precious
▼ + stars: | 2023-11-13 | by ( Robert Cyran | ) www.reuters.com time to read: +3 min

Yet Palantir’s top line is only expected to grow 16% this year, according to forecasts gathered by LSEG. There’s also a risk that Palantir’s ability to secure government contracts, which account for more than half its top line, will be restrained by its politics. For example, Palantir bought about $50 million of gold bars in 2021 to prepare for unpredictable “black swan” events. Also sitting on Palantir’s balance sheet are stakes in targets of special purpose acquisition companies, which it bought in exchange for purchase orders. It doesn’t take a wizard to see that in the eyes of investors Palantir is far too precious.

Persons: Peter Thiel, Alex Karp, “ Palantir, Palantir, Jeffrey Goldfarb, Aditya Sriwatsav Organizations: Reuters, Palantir Technologies, LSEG, Microsoft, Rubicon Technologies, Technologies, Thomson Locations: Snowflake, Israel, Health

☆ Private equity superstores overstock the shelves
▼ + stars: | 2023-11-08 | by ( Liam Proud | ) www.reuters.com time to read: +8 min

LONDON, Nov 8 (Reuters Breakingviews) - Private equity investors seem happier these days shopping for returns at specialty shops over supermarkets. U.S. private equity funds raised some $240 billion in the first nine months of 2023, according to research outfit PitchBook, 13% less than a year earlier. New York-based CD&R in August raised $26 billion for its 12th-generation private equity fund while Eurocentric CVC managed an even more eye-popping $29 billion in July. A better explanation, from the consultants who advise LPs on where to put their cash, is that private equity supermarkets may be cannibalising themselves. Until they can prove otherwise, the more scattered private equity superstores risk losing more ground to the specialists.

Persons: Clayton, Blackstone, Steve Schwarzman, Marc Rowan, don’t, Rowan, Rob Lucas, Blackstone’s, they’re, Lucas, Jeffrey Goldfarb, Thomas Shum Organizations: Reuters, Rice, CVC Capital Partners, Apollo Global Management, Blackstone Capital Partners IX, “, IX, CVC, Apollo, Blackstone, U.S, Thomson Locations: Dubilier, New York, Blackstone, Asia, Luxembourg, Europe, Americas

☆ Workers are missing cog in US manufacturing gears
▼ + stars: | 2023-11-07 | by ( Jeffrey Goldfarb | ) www.reuters.com time to read: +7 min

NEW YORK, Nov 7 (Reuters Breakingviews) - There’s a spanner in the freshly restarted U.S. manufacturing machine. Based in part on the planned construction spending, Goldman Sachs analysts estimate that Biden’s initiatives could lead to as many as 250,000 new manufacturing jobs over the next two years. Pay growth is also cooling faster for production and manufacturing jobs, at 4.2% year-over-year in August, down from an 11% annual peak in December 2021 and compared to the national average of 4.5%, according to jobs website Indeed. By 2030, technological and cognitive skills in the manufacturing sector will be in far higher demand as the share of physical and manual tasks drops by more than a quarter from 2016, McKinsey says. The U.S. manufacturing engine may be humming along now, but employment-related complications threaten to throw sand in the gears.

Persons: Joe Biden’s, Biden, Goldman Sachs, There’s, it’s, Sam, Francesco Guererra, Sharon Lam Organizations: Reuters, Deal, Taiwan Semiconductor Manufacturing, Samsung Electronics, Intel, Bosch, Linde, Public, Ford, SK Innovation, Reuters Graphics Reuters, Department, Bureau of Labor Statistics, McKinsey, University of Massachusetts, Economy Research, of Labor Statistics, Thomson Locations: Arizona, U.S, United States, China, Europe, Asia, it’s, Germany, Amherst

NEW YORK, Nov 6 (Reuters Breakingviews) - Elon Musk does well when his back is against the wall. His investment in X now fills the longshot role, which leaves him little to lose. Grok, as it is called, has “real-time access to info via the X platform,” Musk noted in a post, which gives it a “massive advantage” over other AI models. Although the product is still being tested, Musk says it already can out-compute OpenAI’s GPT-3.5 and Meta Platforms' (META.O) Llama 2. X may be near, or already has hit, rock bottom, right where Musk often does his best work.

Persons: Elon, Tesla, Musk, ” Musk, Linda Yaccarino, X, Billionaire Elon Musk, Jeffrey Goldfarb, Sharon Lam Organizations: Reuters, Twitter, New York Times, Microsoft, New, Billionaire, OpenAI, Thomson

☆ If Amazon, why not Walmart?
▼ + stars: | 2023-10-25 | by ( Jennifer Saba | ) www.reuters.com time to read: +3 min

Shopping habits vary widely, however, and the company’s pricing strategies are commonly used, including at Walmart (WMT.N). According to the complaint, if Amazon finds a cheaper product elsewhere, it punishes the seller by removing merchandise from the “buy box,” effectively tanking sales. Thus, the argument goes, Amazon prevents rivals from competing on price. Walmart, which bought Jet.com in 2016 for $3 billion, is also just as discerning when it comes to online pricing. The agency accuses Amazon of stifling competition on price, product selection and quality, and preventing rivals from attracting a critical mass of shoppers and sellers.

Persons: Lina Khan, Andy Jassy, Walton, Jeffrey Goldfarb, Aditya Sriwatsav Organizations: Reuters, U.S . Federal Trade Commission, Walmart, Amazon, FTC, eBay, Amazon.com, Thomson Locations: United States

☆ Wall Street cues a lesson in Ivory Tower finance
▼ + stars: | 2023-10-20 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +5 min

NEW YORK, Oct 20 (Reuters Breakingviews) - Wall Streeters are trying to teach universities a lesson, but may provide them with a broader understanding of economics instead. The median family income for Harvard students is nearly $169,000, or about 2.5 times the U.S. average. Stockpiles of cash donated by Rowan, Ackman and other alumni also should theoretically make such institutions more accessible, but haven’t. Elite universities funnel many graduates to lucrative careers in finance and consulting, and studies have shown that social class often predetermines success. Ideally, Ivory Towers would price education closer to its actual value rather than what people are willing to pay.

Persons: Marc Rowan, Bill Ackman, Ackman, Rowan, Israel, grads, Liz Magill, Scott Bok, David Magerman, Estee Lauder, Ronald Lauder, Jon Huntsman, Larry Summers, Jeffrey Goldfarb, Aditya Sriwatsav Organizations: Reuters, University of Pennsylvania, Harvard, Rowan, Ivy League, Reuters Graphics Investment, Apollo Global Management, Ackman’s, Palestine, Literary, Renaissance Technologies, Pershing, Harvard University, Thomson Locations: Cambridge , Massachusetts, Wharton

☆ Risky biotech M&A therapy will heal more fractures
▼ + stars: | 2023-10-19 | by ( Jonathan Guilford | ) www.reuters.com time to read: +8 min

NEW YORK, Oct 19 (Reuters Breakingviews) - How can a suitor offering $1 billion see eye-to-eye with a seller asking for $2 billion? Such contingent value rights, or CVRs, are a way to get around the inherent uncertainty of an unproven drug. Its $74 billion takeover of Celgene in 2019 included a $6.4 billion payout dependent on a trio of drug approvals. There have been only 27 biotech market debuts this year, raising $2.2 billion, according to LSEG data. Given the nagging fissures in valuation perspectives, however, more dealmakers are apt to try this risky M&A therapy.

Persons: Schulman, Sidley, Bristol Myers, Myers, CVRs, Andrew Weisenfeld, IPOs, ”, Dan Lepanto, biopharma, Eli Lilly’s, Bristol Myers Squibb, Jeffrey Goldfarb, Sharon Lam, Streisand Neto Organizations: Reuters, Dow, Marion Laboratories, LyondellBasell Industries, Mirati Therapeutics, JPMorgan, Sanofi, Health Partners, Nasdaq Biotechnology, Reuters Graphics Reuters, Reuters Graphics, Leerink Partners, Therapeutics, Public, Bristol Myers, U.S . Food, Drug Administration, Thomson Locations: Celgene, Genzyme, U.S

☆ Tesla downshifts out of ludicrous mode
▼ + stars: | 2023-10-19 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

The Model Y maker’s gross and operating profit margins were once the envy of the entire American automotive industry. As Tesla began rolling more vehicles off the production line than it could sell, however, Musk repeatedly offered discounts to rev demand. Even setting aside tough financial comparisons because of the factory shutdowns needed to retool its best-selling vehicles, progress has been sluggish. Tesla’s gross margin at its core automotive business, adjusting for regulatory credits, has fallen nearly in half, to 16.3%, according to the latest quarterly results released on Wednesday. Tesla sold just a hair under half of all U.S. battery-powered rides in the third quarter, according to Cox Automotive, down from 75% in early 2022.

Persons: BYD, Elon Musk, Tesla, Musk, they’re, Jeffrey Goldfarb, Sharon Lam Organizations: Reuters, U.S, HK, General Motors, Ford, Cox Automotive, Reuters Graphics, Thomson Locations: Detroit, United States, China, Shanghai

☆ BlackRock’s Larry Fink squares off with Uncle Sam
▼ + stars: | 2023-10-13 | by ( ) www.reuters.com time to read: +2 min

Laurence Fink, founder and chief executive officer of BlackRock, Inc. speaks during the Reuters Global Investment Outlook Summit in New York, U.S., November 13, 2017. REUTERS/Lucas Jackson Acquire Licensing RightsNEW YORK, Oct 13 (Reuters Breakingviews) - BlackRock (BLK.N) calls every dollar it manages a “unit of trust” expressed by clients. The trouble for the investing behemoth led by Larry Fink is that there’s an increasingly reliable custodian of such assets these days: Uncle Sam. Even so, $644 billion has crowded into retail money-market funds this year, crimping BlackRock’s all-important stock portfolios. Fink has been bulking up in infrastructure, credit and other investments that are harder to trade, but which also generate higher fees.

Persons: Laurence Fink, Lucas Jackson, ”, Larry Fink, Uncle Sam, Fink, crimping, Jonathan Guilford, Jeffrey Goldfarb, Sharon Lam Organizations: Inc, Reuters Global Investment, REUTERS, Reuters, BlackRock, Graphics, Treasury, X, Infosys, Thomson Locations: BlackRock, New York, U.S, Europe

☆ Jamie Dimon makes anxiety a feature not a bug
▼ + stars: | 2023-10-13 | by ( John Foley | ) www.reuters.com time to read: +4 min

The mega-bank Jamie Dimon runs is performing strongly, and yet he openly frets and rants about what’s coming: higher interest rates, smothering regulation, recession, war. Lest nerves be soothed by those trends, Dimon lays on caveats with a trowel. Dimon can afford to dwell on the negative because JPMorgan is strong and liquid. If calamity strikes, JPMorgan’s high returns, high capital levels and sheer size make it akin to a safe haven. It also slightly reduced its forecast of expenses and credit-card write-offs from numbers given with second-quarter earnings.

Persons: Jamie Dimon, Marco Bello, delinquencies, Wells, Dimon, Peers, Jane Fraser, hasn’t, Jeffrey Goldfarb, Sharon Lam, Aditya Sriwatsav Organizations: JPMorgan Chase &, Chase, Business The, Miami, REUTERS, Reuters, JPMorgan, Citigroup, Basel, Citi, Reuters Graphics, Thomson Locations: East, Ukraine

☆ Birkenstock IPO gets predictable shoeing
▼ + stars: | 2023-10-11 | by ( ) www.reuters.com time to read: +2 min

A sign is illuminated at the entrance to a Birkenstock shoe store in London, Britain, October 11, 2023. REUTERS/Toby Melville Acquire Licensing RightsNEW YORK, Oct 11 (Reuters Breakingviews) - Birkenstock’s (BIRK.N) IPO is a flop. The Birkenstock enterprise was gunning for a multiple of 19 times EBITDA, well above that of Europe's luxury conglomerates. And if the first-day stock woes stick, a suitor might soon walk all over Birkenstock. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Toby Melville, L, gunning, Oliver Reichert don’t, Bernard Arnault, Pamela Barbaglia, Jeffrey Goldfarb, Sharon Lam Organizations: REUTERS, Reuters, Tech, Compagnie Financiere, X, Qantas, Thomson Locations: London, Britain, United States, Europe, New York, Brussels

☆ Pepsi has long way to go to win Ozempic challenge
▼ + stars: | 2023-10-10 | by ( Anita Ramaswamy | ) www.reuters.com time to read: +3 min

The purveyor of Gatorade and Cheetos boosted operating profit 14%, to about $4 billion, after hiking prices by at least 10% for the seventh consecutive quarter. The quantity of drinks and snacks sold is slumping, however, and anti-obesity drugs are just starting to make their mark. Pepsi’s shares have tumbled 14% since May, lagging the 5% gain in the S&P 500 Index (.SPX) over the same period. The head of Walmart’s (WMT.N) U.S. drugstores told Bloomberg that customers taking Ozempic, Wegovy and others are pulling back on junk-food purchases. The latest results from Pepsi quelled fears of any immediate impact, but also raise questions about the future.

Persons: Brendan McDermid, Eli Lilly, drugstores, Morgan Stanley, Boss Ramon Laguarta, Laguarta, Lay, Hugh Johnston, Jeffrey Goldfarb, Sharon Lam Organizations: REUTERS, Reuters, PepsiCo, Gatorade, Novo Nordisk, Bloomberg, Pepsi, Frito, Thomson Locations: New York City, U.S, Wegovy

☆ One $16 bln deal travels lonely dual track
▼ + stars: | 2023-10-09 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

NEW YORK, Oct 9 (Reuters Breakingviews) - When courting buyers, sellers like to make it seem as if there are plenty of options. So it is with buyout firms GTCR and Apax Partners as they explore ways to cash in on AssuredPartners, the insurance broker they own together. This parallel process, colloquially called a dual track, can build competitive tension to wheedle a higher price, but it’s too soon for the idea to pose a plausible threat. For example, cybersecurity provider AppDynamics was planning an IPO that would have valued it at around $2 billion in late 2016. Reuters Graphics Reuters GraphicsHigher interest rates have made it harder to borrow and for buyers and sellers to agree on valuations.

Persons: it’s, AppDynamics, Apax, AssuredPartners, GTCR, Jeffrey Goldfarb, Sharon Lam, Aditya Sriwatsav Organizations: Reuters, Apax Partners, Cisco Systems, Bloomberg, Reuters Graphics, Cisco, SoftBank, Thomson Locations: AssuredPartners

☆ SPAC shell games will keep hiding the ball
▼ + stars: | 2023-10-05 | by ( Jeffrey Goldfarb | ) www.reuters.com time to read: +9 min

It’s more or less how another 216 companies backed into public markets in 2021, according to SPAC Research. They’re on track to miss the mark by more than 40%, delivering only about $55 billion, according to recent forecasts compiled by LSEG. The electric-vehicle industry, for one, was a serial SPAC user whose exuberance sputtered badly. Dressing them up as acquisitions of private firms by listed shell companies enables the participants to play by looser rules. SPAC investors buy shares in the empty vessel before its sponsor and takeover target agree on a valuation.

Persons: Vishal Garg, Better’s, Breakingviews, SPACs, ”, Joel Rubinstein, Donald Trump’s, Spruce, Woodruff Sawyer, Gary Gensler, Ellis, Gensler, Lauren Silva Laughlin, Sharon Lam Organizations: Reuters, & Finance, Research, LSEG, Polestar Automotive, White, The Securities, Exchange Commission, XL Fleet, SEC, Reuters Graphics Reuters, Case, Kirkland, U.S . Securities, Financial Services, Thomson

☆ Asymmetric pay policy keeps US prone to shutdown
▼ + stars: | 2023-09-29 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Jonathan Ernst Acquire Licensing RightsNEW YORK, Sept 29 (Reuters Breakingviews) - U.S. legislators could use more skin in the shutdown game. Lawmakers will collect their salaries during the halt, however long it lasts, but nearly 1.5 million public workers will go without wages. The average salary for a federal employee was already 24% lower than the private-sector equivalent last year, wider than 2021’s gap, according to the Federal Salary Council. The $174,000 annual salaries paid to each of the 535 U.S. legislators, meantime, will be unaffected. Their median net worth is just over $1 million, according to the nonprofit research outfit OpenSecrets, so the paychecks are important to most of them.

Persons: Kevin McCarthy, Jonathan Ernst, Ben Winck, Jeffrey Goldfarb, Sharon Lam Organizations: U.S, Capitol, REUTERS, Reuters, Republican Party, Federal Salary Council, Thomson Locations: Washington , U.S

☆ Jeffrey Epstein leaves small mark on Wall Street
▼ + stars: | 2023-09-27 | by ( Jeffrey Goldfarb | ) www.reuters.com time to read: +4 min

U.S. financier Jeffrey Epstein appears in a photograph taken for the New York State Division of Criminal Justice Services' sex offender registry March 28, 2017 and obtained by Reuters July 10, 2019. Acquire Licensing RightsNEW YORK, Sept 27 (Reuters Breakingviews) - Wall Street is getting ready to move on from the Jeffrey Epstein saga. It ultimately has cost JPMorgan some $365 million in settlements, including Tuesday’s proposed resolution, while Deutsche is paying out $75 million. Some financiers linked to Epstein, who killed himself while in jail awaiting trial in 2019, also paid a price. He also reached a $63 million deal with the U.S. Virgin Islands to avoid any legal claims linked to the investigations.

Persons: Jeffrey Epstein, Epstein’s, Tuesday’s, Epstein, Billionaire Leon Black, Jes Staley, JPMorgan’s, Wall, Peter Thal Larsen, Sharon Lam Organizations: New York State Division, Criminal, Services, Reuters, REUTERS, Acquire, JPMorgan, United States Virgin, Deutsche Bank, Deutsche, Billionaire, Apollo Global Management, U.S . Virgin, Barclays, Thomson Locations: United, United States Virgin Islands

☆ Breakingviews: Carmakers will blink first in union standoff
▼ + stars: | 2023-09-22 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

REUTERS/Michael Swensen Acquire Licensing RightsNEW YORK, Sept 22 (Reuters Breakingviews) - Detroit will run out of road before its unions do. In 2019, when a UAW strike closed manufacturing at GM for 40 days, it reduced output by 300,000 vehicles and operating profit by $3.6 billion. The crux of negotiations probably will come down to wages, where Fain said Ford has budged, including the reinstatement of cost-of-living increases. With the UAW prepared to endure, Detroit will be pressured to blink. The union on Sept. 15 initiated targeted walkouts at three plants owned by the three Detroit vehicle manufacturers.

Persons: Sheila McGee, Michael Swensen, Shawn Fain, Fain, Ford, walkouts, Lauren Silva Laughlin, Jeffrey Goldfarb, Sharon Lam, Aditya Sriwatsav Organizations: Ford, UAW, REUTERS, Reuters, United Auto Workers, General Motors, GM, Ford Motor, Detroit, Thomson Locations: Louisville , Kentucky, U.S, Detroit, Wells

☆ Carmakers will blink first in union standoff
▼ + stars: | 2023-09-22 | by ( Jonathan Guilford | ) www.reuters.com time to read: +3 min

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