Boeing on Friday replaced the head of its troubled defense and space business, which has struggled with money-losing government contracts and embarrassing setbacks involving its Starliner space capsule. The company said Theodore “Ted” Colbert III was removed immediately as president and CEO of Boeing Defense, Space & Security and replaced temporarily by the division's chief operating officer, Steve Parker. A search is underway for a permanent replacement. Colbert spent 15 years at Boeing, serving as chief information officer and leading its global-services business before running the defense unit. Kelly Ortberg, who took over as Boeing CEO last month, said in a memo announcing Colbert's departure, “At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us to enable their critical missions around the world. Working together we can and will improve our performance and ensure we deliver on our commitments.” Boeing is trying to dig out from unprofitable contracts with the Pentagon and NASA, including new Air Force One presidential planes and refueling tankers for the Air Force. Since the start of 2022, the defense and space division has lost $6 billion, slightly more than Boeing’s airplane business. The Starliner capsule that Boeing built for NASA suffered problems with thrusters on its first crewed mission to the international space station. NASA decided this month it was too risky for two astronauts to fly home in the capsule, so they will stay in space until February and ride back to Earth on a SpaceX capsule.

The budget motel chain Motel 6 is being acquired by the parent company of Oyo, a hotel operator based in India. The New York-based investment firm Blackstone, which owns Motel 6’s parent company G6 Hospitality, announced Friday that the deal would be an all-cash transaction worth $525 million. The transaction will also include the sale of the Studio 6 motel brand, which caters to customers seeking extended stays. The deal is expected to close by the end of the year. Oyo, which launched in India just over a decade ago, has been expanding its footprint in the U.S. over the past few years. The company says it currently operates 320 hotels across 35 states and is aiming to add 250 more this year. “This acquisition is a significant milestone for a startup company like us to strengthen our international presence,” Gautam Swaroop, OYO’s international division chief, said in a statement. Blackstone had purchased Motel 6 and Studio 6 in 2012 for $1.9 billion. Since then, the private equity giant says it has heavily invested in the brand and pursued a strategy that converted the chain into a franchise. “This transaction is a terrific outcome for investors and is the culmination of an ambitious business plan that more than tripled our investors’ capital and generated over $1 billion in profit over our hold period,” Rob Harper, the head of Blackstone Real Estate Asset Management Americas, said in a statement. Under the deal, Oravel Stays, which owns Oyo, will acquire G6 Hospitality.

Aircraft assembly workers walked off the job early Friday at Boeing factories near Seattle and elsewhere after union members voted overwhelmingly to go on strike and reject a tentative contract that would have increased wages by 25% over four years. The strike started at 12:01 a.m. PDT, less than three hours after the local branch of the International Association of Machinists and Aerospace Workers announced 94.6% of voting workers rejected the proposed contract and 96% approved the work stoppage, easily surpassing a two-thirds requirement. The labor action involves 33,000 Boeing machinists, most of them in Washington state, and is expected to shut down production of the company’s best-selling airline planes. The strike will not affect commercial flights but represents another setback for the aerospace giant, whose reputation and finances have been battered by manufacturing problems and multiple federal investigations this year. The striking machinists assemble the 737 Max, Boeing’s best-selling airliner, along with the 777, or “triple-seven” jet, and the 767 cargo plane at factories in Renton and Everett, Washington. The walkout likely will not stop production of Boeing 787 Dreamliners, which are built by nonunion workers in South Carolina. Outside the Renton factory, people stood with signs reading, “Historic contract my ass” and “Have you seen the damn housing prices?” Car horns honked and a boom box played songs such as Twisted Sister’s “We’re Not Gonna Take It” and Taylor Swift’s “Look What You Made Me Do.” The machinists make $75,608 per year on average, not counting overtime, and that would rise to $106,350 at the end of the four-year contract, according to Boeing. However, the deal fell short of the union’s initial demand for pay raises of 40% over three years. The union also wanted to restore traditional pensions that were axed a decade ago but settled for an increase in new Boeing contributions of up to $4,160 per worker to employee 401(k) retirement accounts. Under the rejected contract, workers would have received $3,000 lump sum payments and a reduced share of health care costs. Boeing also had met a key union demand by agreeing to build its next new plane in Washington state. Several workers said they considered the wage offer inadequate and were upset by a recent company decision to change the criteria on which annual bonuses are paid. Toolmaker John Olson, 45, said he has received a 2% percent raise during his six years at Boeing. “The last contract we negotiated was 16 years ago and the company is basing the wage increases off of wages from 16 years ago," Olson said. "They don’t even keep up with the cost of inflation that is currently happening right now.” Boeing responded to the strike announcement by saying it was “ready to get back to the table to reach a new agreement.” “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,” the company said in a statement. Very little has gone right for Boeing this year, from a panel blowing out and leaving a gaping hole in one of its passenger jets in January to NASA leaving two astronauts in space rather sending them home on a problem-plagued Boeing spacecraft. As long as the strike lasts, it will deprive the company of much-needed cash it gets from delivering new planes to airlines. That will be another challenge for new Boeing CEO Kelly Ortberg, who six weeks ago was given the job of turning around a company that has lost more than $25 billion in the last six years and fallen behind European rival Airbus. Ortberg made a last-ditch effort to salvage a deal that had unanimous backing from the union’s negotiators. He told machinists Wednesday that “no one wins” in a walkout and a strike would put Boeing’s recovery in jeopardy and raise more doubt about the company in the eyes of its airline customers. “For Boeing, it is no secret that our business is in a difficult period, in part due to our own mistakes in the past,” he said. “Working together, I know that we can get back on track, but a strike would put our shared recovery in jeopardy, further eroding trust with our customers and hurting our ability to determine our future together.” The head of the union local, IAM District 751 President Jon Holden, said Ortberg faced a difficult position because machinists were bitter about stagnant wages and concessions they have made since 2008 on pensions and health care to prevent the company from moving jobs elsewhere. “This is about respect, this is about the past, and this is about fighting for our future,” Holden said in announcing the strike. The vote also was a rebuke to Holden and union negotiators, who recommended workers approve the contract offer. Holden, who had predicted workers would vote to strike, said the union would survey members to decide which issues they want to stress when negotiations resume. Depending on how long the strike lasts, suspension of airplane production could prove costly for the beleaguered Boeing. An eight-week strike in 2008, the longest at Boeing since a 10-week walkout in 1995, cost the company about $100 million daily in deferred revenue. Before the tentative agreement was announced Sunday, Jefferies aerospace analyst Sheila Kahyaoglu estimated a strike would cost the company about $3 billion based on the 2008 strike plus inflation and current airplane-production rates. Solomon Hammond, 33, another Renton toolmaker, said he was prepared to strike indefinitely to secure a better contract. Boeing's offer “just doesn’t line up with the current climate. The wages are just too low," Hammond said. "I make $47 an hour and work paycheck to paycheck. Everything costs more.”

Global shares were mixed in cautious trading Monday ahead of the Labor Day holiday in the U.S., when stock exchanges are closed. France's CAC 40 slipped 0.3% in early trading to 7,611.64, while Germany's DAX fell 0.1% to 18,881.14. Britain's FTSE 100 was little changed, down less than 0.1% at 8,370.39. U.S. shares were set to drift lower with Dow futures down 0.1% at 41,613.00. S&P 500 futures fell 0.1% to 5,654.25. Investors were also looking ahead to the U.S. employment report set for release Friday for an indication of the strength of the American economy. In Asia, Japan’s Nikkei 225 gained 0.1% to finish at 38,700.87, after the Finance Ministry reported capital spending by Japanese companies in the April-June quarter increased 7.4% from the previous year. After a period of stagnation, Japan’s economy is showing signs of a recovery. Next week, Japan will release revised gross domestic product, or GDP, data, a measure of the value of a nation’s goods and services. The preliminary data released earlier showed the first growth in two quarters. Australia’s S&P/ASX 200 rose 0.2% to 8,109.90, while South Korea’s Kospi gained nearly 0.3% to 2,681.00. Hong Kong’s Hang Seng slipped 1.7% to 17,691.97. The Shanghai Composite dipped 1.1% to 2,811.04. A bit of pessimism rolled in over China’s growth prospects over the weekend, as its National Bureau of Statistics reported that August manufacturing PMI, a barometer of industrial output, fell from 49.4 to 49.1. That was weaker than market forecasts. Recent reports on the U.S. economy, including inflation, consumer spending and income, have been encouraging. The Commerce Department said its personal consumption and expenditures report showed prices rose 0.2% from June to July, up slightly from the previous month’s 0.1% increase. That means price rises are slowing down, and that’s likely to lead to the Federal Reserve cutting interest rates for the first time in more than four years. The market expects the Fed will start cutting rates later this month. In other encouraging news, Friday’s Commerce Department report showed Americans stepped up their spending by 0.5% from June to July and incomes rose 0.3%, faster in July than the previous month. In energy trading, benchmark U.S. crude rose 5 cents to $73.60 a barrel. Brent crude, the international standard, added 6 cents to $76.99 a barrel. In currency trading, the U.S. dollar edged up to 146.68 Japanese yen from 146.18 yen. The euro cost $1.1071, up from $1.1053.  

Inflation in the 20 European Union countries that use the euro fell sharply to 2.2% in August, opening the door for the European Central Bank to cut interest rates as the ECB and the U.S. Federal Reserve prepare to lower borrowing costs to support growth and jobs. The August figure was down from 2.6% in July, according to figures Friday from European Union statistics agency Eurostat. Energy prices fell in August by 3%, helping lower the overall figure, while inflation fell to 2% in Germany, the eurozone’s largest economy. The monthly figure is now close to the ECB’s target of 2%, the level considered best for the economy. The central bank is charged with maintaining stable prices under the treaty that set up the European Union. Not all of the EU’s 27 countries use the euro. Economists expect the ECB to cut its key rate by a quarter point from 3.75% at its Sept. 12 meeting, while the Fed is expected to cut rates from a 23-year high of 5.25%-5.5% at its Sept. 17-18 policy meeting. The lower German inflation figure “tilts the balance toward a September rate cut,” said Carsten Brzeski, global chief of macro at ING bank. “Fading inflationary pressure combined with fading growth momentum offer an almost perfect macro backdrop for another rate cut.” Economists caution that the path downward to 2% may yet be a bumpy one. The ECB has said it expects inflation to fluctuate going forward but to fall to its target by the end of next year. Central banks sharply raised interest rates to counter an outburst of inflation caused by a spike in energy prices following Russia’s invasion of Ukraine, and by clogged supply chains for parts and raw materials as the global economy bounced back from the COVID-19 pandemic. Higher rates can quell inflation by making it more expensive to borrow and buy things, reducing demand for goods and thus taking pressure off prices. Europe’s inflation has now fallen a long way from the 10.6% it reached in October 2022. But higher rates can weigh on growth as well, and those concerns have come to the fore in both Europe and the U.S. While unemployment rates remain low in both economies, central bankers are becoming wary of keeping rates too high for too long and seeing people lose their jobs or the economy tip into recession. It is a tricky balance since the impact of rate moves comes only with a delay of months. The eurozone grew only a modest 0.3% in the second quarter. High rates have killed off a years-long rally in European house prices and dampened loans to consumers and businesses, while complicating financing decisions for new renewable energy projects that are highly rate-sensitive. Rates that “are too high for too long” would fail to minimize the side effects on economy activity and jobs, which in turn could lead to “chronically below-target inflation,” Philip Lane, a member of the ECB’s six-member executive board that runs the central bank day to day at its Frankfurt headquarters, said Saturday at a Fed conference in Jackson Hole, Wyoming. . Lane kept the ECB’s options for September open however by saying that a return to the 2% target “is not yet secure.” ECB head Christine Lagarde has said the bank will decide rates meeting by meeting based on incoming data about the economy at the time. The ECB made a first rate cut in June, then hit pause in July and has since been waiting for confirmation that the coast is clear to make more cuts.

Canada’s government on Monday announced it is imposing a 100% tariff on imports of Chinese-made electric vehicles that matches U.S. tariffs and follows similar plans announced by the European Commission. The announcement came after encouragement by U.S. national security advisor Jake Sullivan during a meeting with Canadian Prime Minister Justin Trudeau and cabinet ministers on Sunday. Sullivan is making his first visit to Beijing on Tuesday. Trudeau said Canada also will impose a 25% tariff on Chinese steel and aluminum. “Actors like China have chosen to give themselves an unfair advantage in the global marketplace,” he said. There was no immediate response from China. Chinese officials are likely to raise concerns about American tariffs with Sullivan as Beijing continues to repair its economy after the COVID-19 pandemic. U.S. President Joe Biden in May slapped major new tariffs on Chinese electric vehicles, advanced batteries, solar cells, steel, aluminum and medical equipment. “The U.S. does believe that a united front, a coordinated approach on these issues benefits all of us,” Sullivan told reporters on Sunday. Biden has said Chinese government subsidies for EVs and other consumer goods ensure that Chinese companies don’t have to turn a profit, giving them an unfair advantage in global trade. Chinese firms can sell EVs for as little as $12,000. China’s solar cell plants and steel and aluminum mills have enough capacity to meet much of the world’s demand. Chinese officials argue their production keeps prices low and would aid a transition to the green economy. “We’re doing it in alignment, in parallel, with other economies around the world that recognize that this is a challenge that we are all facing,” Trudeau said of the new tariffs. “Unless we all want to get to a race to the bottom, we have to stand up.” Deputy Prime Minister Chrystia Freeland said Canada also will launch a 30-day consultation about possible tariffs on Chinese batteries, battery parts, semiconductors, critical minerals, metals and solar panels. “China has a intentional state-directed policy of overcapacity and oversupply designed to cripple our own industry,” Freeland said. “We simply will not allow that to happen to our EV sector, which has shown such promise.” The only Chinese-made EVs currently imported into Canada are from Tesla, made at the company’s Shanghai factory. Canada "had to go with the U.S. position, when you think about the economic integration that we have with the U.S. More than 75% of our exports go to the U.S.,” said a former Canadian ambassador to China, Guy Saint-Jacques. “This reflects the fear that the next president of the United States might be Donald Trump, and so they know we have to be pretty much aligned in all of this.” Saint-Jacques said Canada can expect retaliation from China in other industries, adding that barley and pork are candidates because the Chinese can get it from other countries. “China will want to send a message,” he said.

The Dutch data protection watchdog slapped a 290 million euro ($324 million) fine Monday on ride-hailing service Uber for allegedly transferring personal details of European drivers to the United States without adequate protection. Uber called the decision flawed and unjustified and said it would appeal. The Dutch Data Protection Authority said the data transfers spanning more than two years amounted to a serious breach of the European Union’s General Data Protection Regulation, which requires technical and organizational measures aimed at protecting user data. “In Europe, the GDPR protects the fundamental rights of people, by requiring businesses and governments to handle personal data with due care,” Dutch DPA chairman Aleid Wolfsen said in a statement. “But sadly, this is not self-evident outside Europe. Think of governments that can tap data on a large scale. That is why businesses are usually obliged to take additional measures if they store personal data of Europeans outside the European Union. Uber did not meet the requirements of the GDPR to ensure the level of protection to the data with regard to transfers to the U.S. That is very serious.” The case was initiated by complaints from 170 French Uber drivers, but the Dutch authority issued the fine because Uber’s European headquarters is in the Netherlands. Uber insisted it did nothing wrong. “This flawed decision and extraordinary fine are completely unjustified. Uber’s cross-border data transfer process was compliant with GDPR during a 3-year period of immense uncertainty between the EU and U.S. We will appeal and remain confident that common sense will prevail,” the company said in a statement. The alleged breach came after the EU’s top court ruled in 2020 that an agreement known as Privacy Shield that allowed thousands of companies — from tech giants to small financial firms — to transfer data to the United States was invalid because the American government could snoop on people’s data. The Dutch data protection agency said that following the EU court ruling, standard clauses in contracts could provide a basis for transferring data outside the EU, “but only if an equivalent level of protection can be guaranteed in practice.” “Because Uber no longer used Standard Contractual Clauses from August 2021, the data of drivers from the EU were insufficiently protected,” the watchdog said. It added that Uber has been using the successor to Privacy Shield since the end of last year, ending the alleged breach. The Computer & Communications Industry Association, an advocacy organization for tech companies, said the fine ignored the realities of online business in the aftermath of the 2020 EU court ruling. “The busiest internet route in the world could not simply be put on hold for three entire years while governments worked to establish a new legal framework for these data flows,” the association's European head of policy, Alexandre Roure, said in a statement. “Any retroactive fines by data protection authorities are especially worrisome given that these very privacy watchdogs failed to provide helpful guidance during this period of significant legal uncertainty, in absence of any clear legal framework,” he added. Monday's announcement is not the first time the Dutch data protection watchdog has fined Uber. In January, the agency fined it 10 million euros over what it said was the company's failure to disclose how long it retained data from drivers in Europe or to name non-EU countries it shared the data with.  

American Airlines is suspending flights to Israel through late March, extending a break in service that started in the early days of the war in Gaza. A spokesperson for the airline said Wednesday that customers with tickets for flights to Tel Aviv can rebook at no extra charge or cancel their trip and get a refund. The airline said flights to Ben Gurion International Airport in Tel Aviv will be suspended through March 29. The airline updated a travel advisory on its website over the weekend. “We will continue to work closely with our partner airlines to assist customers traveling between Israel and European cities with service to the U.S.,” the spokesperson said. Delta Air Lines extended its suspension of Tel Aviv flights through Sept. 30 from Aug. 31. United Airlines has suspended service indefinitely. All three airlines stopped flying to Israel shortly after the Oct. 7 Hamas attack that started the war. Many other international airlines did the same, although some later resumed them. Germany’s Lufthansa announced Monday that based on a “current security analysis” it would halt all flights to Tel Aviv, Amman, Beirut, Teheran and Erbil in Iraq through Monday. About 1,200 Israelis, mostly civilians, died in the Oct. 7 attack, which was followed by Israel's bombardment of Gaza. About 40,000 people have died in Gaza, according to the Hamas-controlled health ministry there. U.S. attempts to broker a cease-fire agreement have been unsuccessful.  

BMW was recalling more than 1.3 million vehicles in China that might have Takata airbag inflators following a similar recall in the United States last month, officials said Friday. The recall covers nearly 600,000 vehicles made in China between 2005 and 2017 and more than 750,000 imported vehicles made between 2003 and 2018, the Chinese State Administration for Market Regulation said. It includes a wide range of models, from series 1 to series 6 cars and the X1, X3, X4, X5 and X6 SUVs. A small number of vehicles in the recall may have Takata inflators if the owner changed the steering wheel, the Chinese regulatory body said. The inflator can explode when the airbag deploys, sending fragments into the car and injuring the occupants, it said. Takata airbag inflators have been blamed for the deaths of at least 35 people since 2009 in the United States, Malaysia and Australia. U.S. regulators said last month that BMW would recall more than 390,000 vehicles because the original steering wheel may have been replaced with a sport or M-sport steering wheel equipped with a Takata inflator. Ford and Mazda warned the owners of more than 475,000 vehicles in the U.S. earlier this week not to drive them because they have Takata airbag inflators. The vehicles were built between 2003 and 2015. Stellantis, following a fatal explosion in the U.S. last year, urged the owners of some 2003 Dodge Ram pickups to stop driving them if their air bag inflators had not been replaced. The Chinese regulator said that BMW owners can visit a dealer to have their steering wheel checked or upload a photo of their steering wheel and their vehicle identification number to get an answer in two weeks. BMW will replace the driver's side airbag free of charge in affected vehicles.

International industry leader Philippe Varin has been elected Chair of the International Chamber of Commerce (ICC) – the voice of global business, representing over 45 million businesses. Varin succeeds Maria Fernanda Garza – who becomes ICC’s Honorary Chair – following a unanimous vote of the organisation’s over 90 national committees at its Global Headquarters in Paris. Varin is an operating partner of the GVP Climate Investment Fund and Chair of the C’Possible partnership to enhance vocational education opportunities in France. He served as Group Executive Vice President for Aluminum at Pechiney before becoming CEO of Corus in 2003, overseeing its acquisition by Tata in 2007. International Chamber of Commerce Global Chair Maria Fernanda Garza visiting Dhaka He also Chaired PSA Peugeot Citroen from 2009 to 2014 and subsequently, Areva and Orano until 2020. He led France Industrie and the Conseil National de l’Industrie from 2017 to 2021, Chaired Suez from 2020 to 2022 and has Co-Chaired the World Materials Forum since 2015. ment d Upon his election Varin said: “I am deeply conscious that the founding mission of the International Chamber of Commerce – to promote peace and prosperity through global trade – is of immense strategic importance and a challenge in a world that is increasingly characterised by conflicts and intense geoeconomic competition.” International Chamber of Commerce gets 1st woman Chair Varin has set out a five pillar strategy for his two-year tenure as ICC Chair, encompassing international trade, the rule of law, climate action, trade digitalisation, and multilateral cooperation. ICC World Council also elected three prominent business leaders in its Chairmanship: Harsh Pati Singhania (First-Vice Chair) from India, Shinta Kamdani (Vice Chair) from Indonesia, and Patrick Obath from Kenya (Vice Chair).