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The Week in Business: More Air Travel Chaos


On the heel of Southwest Airlines’ holiday travel crisis, a much broader systemic failure grounded the planes last week. The source of the problem lies Federal Aviation Administration, whose system that warns pilots of safety issues broke down on Wednesday. In total, the disruption has caused more than 9,000 flight delays and 1,300 cancellations, leaving many passengers stranded with no airline responsible. According to the agency, the cause was a corrupt database file, and the White House said there was no evidence of a cyberattack. But the system failure is nonetheless worrisome, showing the weakness of the infrastructure the country relies on to manage commercial air traffic. Critics say the FAA has struggled to keep up with technological advances as well as an increase in the number of flights and passengers. The air travel chaos once again puts Transport Secretary Pete Buttigieg, who oversees the agency, in the hot seat. He said he was trying to determine “how this could have happened in the first place.”

To the relief of American households and policymakers in Washington, consumer prices — rising at breakneck speeds not long ago — are continuing to cool. Inflation is slowing on a yearly basis, according to the latest numbers, with Consumer price index up 6.5% in the year to December, down from 7.1 percent in November. That drop was largely due to falling gas and airfare prices. A drop in commodity price inflation and lower rents this year could help ease overall inflation. This report should encourage central banks at the Federal Reserve, who are starting to see clearer signs that their campaign to curb rising prices is having the desired effect – that’s why they are considering raising rates again. quarter point at their February meeting instead of making another half- or three-quarter point increase.

Last week, Goldman Sachs started one of the Biggest layoffs since the 2008 financial crisis, the bank plans to cut a total of 3,200 jobs, or about 6% of its workforce, as it grapples with the downturn in the trading and trading markets and decline. And on Friday, it revealed that its push to expand into consumer banking has resulted in $3 billion in losses since 2020. It’s a far cry from the lone giant on Wall Street. Go through these challenges: JPMorgan Chase, the country’s largest bank, reports that its investment banking revenue in the fourth quarter fell 57% and says it has set aside $1 billion to prepare for the possibility. mild recession”. Bank of America, Citigroup and Wells Fargo have also set aside hundreds of millions of dollars to cover future loan losses. Goldman’s earnings, to be released this week, are likely to closely mirror earnings of its peers.

Even before Elon Musk took over Twitter, he was not known for his discretion on the platform. This week, Mr Musk is expected to go to court for a tweet he posted in August 2018, telling his millions of followers: “I’m considering buying a Tesla at $420 . Funding is guaranteed.” With that statement – proposing a deal worth more than $70 billion – he sent the electric car company Stocks soar and ends with 40 million USD fine from the Securities and Exchange Commission. Shareholders have also sought their own rights, filing lawsuits seeking damages and accusing Mr Musk and current and former Tesla board members of stock manipulation. promissory note. Mr. Musk said the tweet referred to a potential investment from a Saudi government investment fund, but some people were familiar with the Saudi fund’s operations. cast doubt on those claimsand the board members at Tesla are blinded by Mr. Musk’s tweet.

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