Bloomberg - Evening Briefing - Bad day for Boeing

Boeing dropped the most in more than a year after its 737 Max 9 model was temporarily grounded following a Jan. 5 Alaska Airlines accident in which a piece of the plane blew out. Supplier Spirit AeroSystems Holdings, which makes the fuselage for the 737, and Alaska Air Group, the parent of the carrier, saw their shares fall as well. The accident put a spotlight on possible manufacturing defects at Boeing and Spirit. Investigators said it’s too soon to say what may have prompted the part to come loose. 

Alaska Airlines Flight 1282 was forced to return to Portland International Airport on Jan. 5 after a section of the Boeing 737 Max’s fuselage blew out. Photographer: The Oregonian/AP Photo

The 737 Max was previously grounded after two disasters almost five years ago killed 346 people, and more recently, Boeing has grappled with manufacturing defects that have involved its biggest supplier. Emirates President Tim Clark—who as the biggest buyer of widebody aircraft is a powerful voice in the aviation community—didn’t mince words when discussing Boeing’s situation. “They’ve had quality control problems for a long time now,” he said, “and this is just another manifestation of that.” And on Monday afternoon, United Airlines delivered some more bad news for Boeing following its 737 Max inspections. —David E. Rovella 

For private equity, 2023 turned out to be a very bad year. The projected rate of distributions to investors was the second-smallest in a quarter century as firms grappled with higher borrowing costs, economic uncertainty and sluggish fundraising. And as they’ve been slow to return capital to pension funds and other key investors, once-reliable clients are maxed out on the cash they’re willing to allocate to such investments.

But there are other options. Blackstone for one raised $1.3 billion for its first PE fund for rich individuals, achieving one of the biggest initial hauls for a fund of its kind. The cash pile underscored an intensifying race among alternative investment firms to court private wealth as key sources of institutional money dry up. The new fund’s structure has a different reach than some other products for individuals, President Jon Gray told analysts last year: This one is targeting people who have at least $5 million to invest.  

A Chinese national who made his fortune from online gaming has emerged as one of the most significant non-American holders of US land. Chen Tianqiao owns 198,000 acres of Oregon timberland, making him the country’s 82nd-largest property owner. Foreign ownership of US land—particularly land used for farming—has become a sensitive political issue in recent years. About 40 million acres of American agricultural land was owned by non-US interests as of 2021.

Chen Tianqiao  Photographer: Sanjit Das/Bloomberg

White House officials met with executives from Palantir Technologies, Anduril Industries, Fortem, Skydio and other defense companies on Monday to discuss battlefield technologies that can aid Ukraine in its bid to repel Russia’s invasion. Officials emphasized that the discussions with defense companies aren’t a substitute for urgently needed funding currently being blocked by Congressional Republicans. Rather, they said, they wanted to hear directly from companies about the capabilities they are developing.

US Secretary of State Antony Blinken said Houthi militants in Yemen must know they’ll face “consequences” for continued attacks on ships in the Red Sea. But Qatari Prime Minister Sheikh Mohammed Bin Abdulrahman Al Thani, speaking alongside Blinken, rejected a military response, warning it would only raise regional tensions and fuel an endless cycle of violence. “We never see a military action as a resolution,” Al Thani said.

Smoke billows from Israeli bombardment in southern Lebanon on Jan. 8. The reported killing of a Hezbollah leader has further raised fears of a regional war stemming from the current Israel-Hamas conflict. Photographer: Rabih Daher/AFP

This year will be hot. So hot that some experts are already predicting that—as the climate crisis accelerates—it may beat 2023 as the hottest year in recorded history. In 2023, the average was about 1.4C higher than the pre-industrial era; early estimates suggest this year will be up 1.3C to 1.6C. But what makes scientists even more secure in their 2024 predictions is El Niño, one of three phases of a multi-year climate cycle.

Astrobotic Technology’s Peregrine robotic lunar lander suffered a technical glitch in space, casting doubt on the startup’s plans to land the spacecraft on the moon at the end of February. After launching from Florida early Monday aboard United Launch Alliance’s new Vulcan booster, the Peregrine lander separated from the rocket roughly 50 minutes after takeoff and “entered a safe operational state” before the problem happened. “Unfortunately, an anomaly then occurred, which prevented Astrobotic from achieving a stable sun-pointing orientation,” Astrobotic said.

United Launch Alliance’s Vulcan Centaur lifts off from Cape Canaveral, Florida, on Monday. Photographer: Chandan Khanna/AFP

• Bloomberg Opinion: Blowout or not, you’re stuck with the 737 Max.
• Xi Jinping’s solution for China’s economy risks a new trade war.
• Sony is planning to call off a $10 billion merger with India’s Zee.
• Rich Indians scoop up $865 million luxury homes in three days.
• Elon Musk’s drug use is the latest headache for Tesla’s board.
• Bottled water has more plastic particles than previously thought.
• The tropical underworld of an alleged Hawaii crime ring.

Tiger Woods’ nearly three-decade partnership with Nike, which generated about $660 million for the golf legend, has come to an end. Woods, now 48, signed a five-year, $40 million deal with Nike as a young phenom in 1996. A five-year, $100 million contract followed in 2001, and his next pact with the athletic-goods giant was worth $320 million over eight years. He signed his most recent deal with Nike, worth $200 million over 10 years, in 2013. But now it’s all over.

Tiger Woods on the 18th hole during the third round of the Masters at Augusta National Golf Club in 2019 in Augusta, Georgia. Photographer: Kevin C. Cox/Getty Images North America

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