This week ahead || Sep 9th - Sep 13th 2024

DirecTV files FCC complaint against Disney for anti-competitive practices

DirecTV has filed a complaint with the U.S. Federal Communications Commission (FCC) against Disney, accusing the company of anticompetitive behavior and failing to negotiate in good faith. DirecTV claims Disney is demanding unreasonable terms for renewing their distribution agreement, including bundling less popular channels with must-have content and enforcing requirements recently deemed unlawful by a federal court. The dispute, which has led to over 11 million DirecTV subscribers losing access to Disney-owned channels like ESPN, comes as DirecTV pushes for more flexible, lower-cost packages in the face of Disney's "fat bundle" model. Disney stated it remains open to negotiations to prioritize customer access.

Economic worries back on Wall Street's radar after jobs data

Market uncertainty is growing due to concerns over the U.S. economy's health, as investors react to slowing labor market data and a potential shift in Federal Reserve policy. U.S. stocks fell sharply after weaker-than-expected jobs data, raising fears that elevated interest rates may be pressuring economic growth. The S&P 500 lost 1.7% on Friday, marking its worst weekly decline since March 2023, while tech stocks like Nvidia dropped significantly. Investors are also facing uncertainty from a tight U.S. election and concerns over inflated valuations, particularly in the technology sector.

Boeing reaches labor deal with 25% pay hike, new plane commitment

Boeing has reached a tentative four-year agreement with the International Association of Machinists and Aerospace Workers (IAM), potentially averting a strike by over 32,000 workers in the U.S. Pacific Northwest. The deal includes a 25% wage increase, 12 weeks of paid parental leave, improved retirement benefits, and a commitment to build Boeing's next commercial airplane in the Seattle area, ensuring job security. The agreement, which needs to be ratified by the union on Thursday, comes at a crucial time as Boeing works to increase production of its 737 MAX amidst ongoing quality concerns.

September’s Big Borrowing Spree Underscores Emerging Market Fear

In the first five days of September, bond sales surged to $28 billion, surpassing previous years, as issuers rushed to tap markets ahead of potential volatility from the U.S. presidential election and economic concerns. This compares to $12 billion during the same period last year. Emerging market issuers are benefiting from favorable conditions, with yields averaging 6.5%. Many issuers, including Abu Dhabi National Oil Co. and Indonesia, have already met funding needs for the year. The majority of these transactions—86%—were denominated in U.S. dollars, driven by the currency's deep liquidity.