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Striking Boeing workers to vote on new proposal

  • : Metals
  • 24/11/01

Boeing workers next week will vote on a third labor proposal from the aerospace manufacturer that could end a seven-week work stoppage that has halted production of several commercial aircraft programs.

More than 32,000 Boeing employees represented by the International Association of Machinists and Aerospace Workers (IAMAW) will cast their ballots on 4 November after union leadership and the company struck a tentative agreement on Thursday.

The new offer comes with a 38pc general wage increase (GWI) spread over four years and a $12,000 ratification bonus — both up from 35pc and $7,000, respectively, from Boeing's previous proposal that workers rejected on 24 October.

Sticking points during contract negotiations have centered around pay raises, with workers seeking a 40pc GWI, and the reinstatement of employees' pension plans. The latter is not addressed in the company's latest offer.

Boeing's machinists have been on strike since 13 September, putting a squeeze on the company's finances with output of its flagship 737 MAX aircraft stalled. Production of Boeing's 767 and 777 models also has been disrupted.

If the deal is approved, the earliest workers could return to their jobs would be 6 November, with everybody having to be back by 12 November at the latest, the union said.


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24/11/01

US job growth slumps in October, jobless rate at 4.1pc

US job growth slumps in October, jobless rate at 4.1pc

Houston, 1 November (Argus) — The US added only 12,000 nonfarm jobs in October, reflecting the impacts of two hurricanes, a strike at aircraft manufacturer Boeing and a slowing trend in hiring prompted by high borrowing costs. The unemployment rate remained unchanged at 4.1pc, still close to a five-decade low of 3.4pc reached in early 2023, the Labor Department reported today. Last month's gains were far fewer than the 113,000 forecast by analysts surveyed by Trading Economics. Job gains for the prior two months were revised down by a combined 112,000 jobs, leaving September with a still robust 233,000 and August with 78,000 jobs. A Labor Department report earlier this week showed job openings in September were at their lowest since January 2021. Still, job gains for the 12 months through October averaged 194,000, a little higher than the 12-month period before Covid-19 struck the US beginning in early 2020, causing millions of job losses and a sharp but short recession. Today's employment report, the last before next week's US presidential election, cements odds of a quarter point cut in the Federal Reserve's target rate next week to nearly 100pc from about 96pc Thursday, according to CME's FedWatch tool. The Fed cut its rate by half a point in late September, the first cut since 2020, as it is just beginning to loosen monetary policy after the sharpest tightening in decades to battle surging price gains. Inflation has since moved close to its 2pc target and job gains have gradually slowed, even as the economy remains robust, growing by nearly 3pc in the second and third quarters of the year. Hurricane Helene made landfall in northern Florida in late September and slammed northwards into Georgia, the Carolinas and Virginia, leaving major damage in its wake. Hurricane Milton struck Florida on 9 October, within the period of both surveys used for the job report. About 32,000 unionized workers at Boeing have been on strike since early September. Job growth trended up in government and in health care and social services, which added 40,000 and 51,000, respectively, while manufacturing declined by 46,000, partly due to strikes. Construction added 8,000 jobs. Average hourly earnings edged up to an annual 4pc from 3.9pc. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

First northwest European HRC options trade on CME


24/10/31
24/10/31

First northwest European HRC options trade on CME

London, 31 October (Argus) — Options contracts settled against the Argus northwest European hot-rolled coil (HRC) index traded today for the first time since their launch on the CME Group exchange more than two years ago. An option on the northwest European HRC contract on CME (EHR) traded today at a premium of €20/t for the right to buy a strip for the first quarter of 2025 (50 lots or 1,000t of January, February and March) at €700/t. Options are a financial contract offering the right, but not the obligation, to buy or sell an underlying asset — in this case the EHR futures contract — for a specific price at a specific point in time. The right to buy is called a call option; the right to sell a put option. The buyer pays a premium to have this right, which is typically used to protect against an adverse market move. The Argus northwest European HRC index stood at €558.75/t on Wednesday, while the January-March futures contracts are currently trading at about €620/t, putting the call option above the current spot market price and forward curve for the contracts in question. Market participants suggested the trade could be part of a ‘short collar' strategy, in which someone who is ‘long' on the underlying futures contract (trading on anticipation of an upwards move) buys a put option (the right to sell at an agreed price) to protect their long position for a premium, but then sells a call option to receive a higher premium to offset the cost of the put. CME Group launched the EHR futures contract in March 2020. Since then more than 3.6mn t of steel futures have traded, with more than 1mn t this year alone. Open interest — a measure of liquidity measuring the volume of open contracts — currently stands at a record high of more than 230,000t. Options were added in May 2022. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Codelco Cu output recovers in 3Q


24/10/31
24/10/31

Codelco Cu output recovers in 3Q

London, 31 October (Argus) — Chilean state-owned Codelco's copper output fell on the year in January-September, but rose in the third quarter. January-September production fell by 5pc to 918,000t. Chief executive Ruben Alvarado attributed this to a fatal accident in March at the Radomiro Tomic unit that halted operations for over a month, as well as delayed start-up at the Rajo Inca unit. Despite declining ore levels at some key deposits, third-quarter copper production was up by 1.5pc on the year, at 338,000t. Adjusted January-September earnings before interest, tax, depreciation and amortisation increased by 21pc on the year to $4bn, reflecting higher copper prices. The company expects production from the Andes Norte expansion at its El Teniente unit to start in the first quarter of 2025, while the Andesita project should come on line in the next few months. Rajo Inca should be on stream before the year's end. By Roxana Lazar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Amag’s earnings up in 3Q but down in year so far


24/10/31
24/10/31

Amag’s earnings up in 3Q but down in year so far

London, 31 October (Argus) — Austrian aluminium producer Amag posted higher revenues and earnings on the year in the third quarter, but both fell in the first nine months of the year amid challenging market conditions. Amag's earnings before interest, taxes, depreciation and amortisation (Ebitda) rose by 8.3pc on the year to €52.2mn ($56.6mn) in the third quarter of this year, while Ebitda over the first nine months of the year fell 11.1pc to €147.6mn. Revenues climbed 7.1pc on the year to €370.9mn in July-September, on shipment volumes that rose by 2.4pc on the year to 109,100t. Revenues reached €1.079bn in the first nine months of this year, down 5.6pc from the previous year, and shipments fell 1.3pc to 323,300t over that period. "With the economic situation in many European countries remaining subdued, we have so far succeeded in generating solid earnings through product mix shifts and a high degree of flexibility," chief executive Dr Helmut Kaufmann said. "Nevertheless, the weak industrial economy in Europe is leading to increasing pressure on prices and volumes in numerous industries." Amag confirmed its Ebitda target for 2024 at €160-180mn. By Jethro Wookey Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US economy grows by 2.8pc in 3Q, led by consumers


24/10/30
24/10/30

US economy grows by 2.8pc in 3Q, led by consumers

Houston, 30 October (Argus) — The US economy grew by an annualized 2.8pc in the third quarter, led by consumer and government spending and exports. Gross domestic product (GDP) growth slowed from 3pc in the second quarter, the Commerce Department reported today. Personal consumption grew at a 3.7pc pace, up from 2.8pc in the second quarter and 3.5pc a year earlier. Today's GDP estimate is the first of three for the quarter, and comes in slightly below analyst estimates in a Trading Economics survey of 3pc growth. The latest figure marks a 10th quarter of GDP growth since a 1pc contraction in the first quarter of 2022. It comes ahead of a closely fought presidential election on 5 November in which the health of the economy is a major issue. Exports grew by 8.9pc in the latest quarter compared with 1pc in the second quarter. Imports, which subtract from growth, grew by 11.2pc. Government spending, including investment for defense, rose by 5pc following 3.1pc growth in the second quarter. Private domestic investment slowed to 0.3pc growth from 8.3pc growth. Residential investment fell by 5.1pc, as the housing market remains in a downturn, after declining by 2.8pc in the second quarte r. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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