This week ahead || Sep 16th - Sep 20th 2024
Here's your new for the week ahead.
Axel Springer, KKR Near Deal on €13.5 Billion Breakup, FT Says
German billionaire Mathias Döpfner and private equity firm KKR are reportedly close to finalizing a deal to split up the media giant Axel Springer, according to the Financial Times. The proposed deal, valued at €13.5 billion ($15 billion), would give KKR majority control of Axel Springer's highly profitable classifieds business, which is valued at over €10 billion. The agreement is expected to be discussed at a supervisory board meeting on Thursday. This would allow Döpfner, CEO since 2002, to strengthen his control over the company’s media outlets, including Politico, Business Insider, Bild, and Die Welt.
Craig Stirling
Ryanair may get five fewer planes by next summer due to Boeing strike, CEO says
Ryanair Group CEO Michael O'Leary has expressed concern that a prolonged Boeing workers' strike could reduce the number of aircraft the airline receives by next summer. Initially, Ryanair expected 30 Boeing 737 MAX aircraft by summer 2025, but due to Boeing's operational challenges, that number was already reduced to 25. With the ongoing strike, O'Leary now fears that Ryanair may only receive 20 planes if the strike persists for three to four weeks.
Despite the strike, O'Leary is confident Boeing will resolve the issue but expects it may take several weeks. Boeing has been dealing with multiple operational setbacks, including a door plug blowout incident on a 737 MAX 9 in January, which brought increased regulatory scrutiny and further delayed production. Boeing has pledged to ramp up production by the end of the year, but O'Leary estimates it could take Boeing two to three years to fully recover.
Workers in Boeing's Seattle-area factories, where the 737 MAX, 777, and 767 jets are assembled, have been on strike, protesting for better working conditions. Union and Boeing representatives are expected to return to the bargaining table next week in hopes of ending the strike and resuming normal operations.
Reuters
Trump’s proposed tariffs could lead to significant inflation: Nomura
Nomura warned that Donald Trump’s proposed 10% across-the-board tariffs could significantly increase U.S. core inflation by up to 1 percentage point, contrasting with the minimal inflationary impact of his previous targeted tariffs. The firm explained that broad tariffs would affect a wide range of goods, leaving fewer opportunities for price adjustments or alternative imports, leading to substantial price hikes for both consumers and producers. Nomura also cautioned that such tariffs could act as a tax on domestic residents, potentially harming economic growth, and predicted that a second Trump administration might continue with aggressive trade policies, including a 60% tariff on Chinese goods.
Tanya Mishra
UK firms fear tougher employment regulation, CBI says
British businesses are expressing concern that the Labour government's planned employee protections, such as guaranteed parental leave, minimum hours, and stronger safeguards against unfair dismissal, may increase the risks of hiring new staff. According to a Confederation of British Industry (CBI) survey, smaller businesses fear it will be harder to dismiss underperforming employees due to potential challenges in employment tribunals. With 75% of respondents saying they would be more cautious about hiring, the CBI noted growing worries about stricter regulations making the UK less attractive for investment over the next five years.
Reuters