Podcast Summary
Boeing fine, Ford profitability, NBA media deal: Boeing pays $243.6M fine for false software representations, Ford's profitability declines due to higher warranty costs and EV losses, NBA rejects Warner Brothers Discovery's attempt to remain in media deal
Boeing has formally admitted guilt and will pay a hefty fine for making false representations about key software linked to fatal crashes on their 737 MAX planes. Meanwhile, Ford's profitability took a hit in Q2 due to increased warranty costs and losses in their electric vehicle division. The NBA rejected Warner Brothers Discovery's attempt to remain in the next pro basketball media deal, marking a significant development in the ongoing drama. Boeing, under the agreement, will pay a $243.6 million fine for misrepresentations regarding the 737 MAX's software. Ford's profitability declined due to higher warranty costs and losses in their electric vehicle division, resulting in a missed earnings expectation. The NBA rejected Warner Brothers Discovery's attempt to exercise matching rights, leaving the future of the media deal uncertain. Ford's commercial division reported increased sales and profitability, while their ICE division saw revenue growth but profitability decline. Sales of hybrid vehicles increased, accounting for nearly 9% of all Ford vehicles worldwide. The company's EV segment reported a significant loss, offsetting cost reductions. The NBA's rejection of Warner Brothers Discovery's attempt to remain an incumbent marks a significant development in the ongoing media rights negotiations.
NBA media rights deal: The NBA has struck a new $76 billion media rights deal with Amazon, ESPN, and NBC, leaving out WBD, causing a 3% decrease in WBD stocks and expected legal proceedings.
The NBA has reached a new media rights deal worth over $76 billion with Amazon, ESPN, and NBC, leaving out longtime partners Warner Brothers Discovery (WBD). Despite WBD's attempt to match Amazon's offer, the NBA announced it would not match the terms and has entered into a long-term agreement with Amazon. The next steps in this near $2 billion deal are expected to involve legal proceedings. The correction in stocks, including a 3% decrease in WBD, continues according to IBKR. In other news, the Bitcoin 2024 conference will feature appearances by notable figures, and Chipotle Mexican Grill is up following strong Q2 results. The markets are mixed, with Dow, S&P, and Nasdaq futures in various territories, while crude oil and Bitcoin are down. The economic calendar includes releases of GDP, initial jobless claims, and the Fed balance sheet.
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