Consumer spending rose in November by the most in five months as Americans took advantage of store discounts during the year-end shopping season, giving the world?s largest economy a lift. Household purchases, which account for almost 70% of the economy, rose 0.5% after a 0.4% gain in October that was larger than previously estimated, the commerce department reported on Monday in Washington. Incomes climbed less than forecast, reflecting a slump in earnings by farmers. The report follows data last week that showed stronger momentum in economic growth as households stepped up spending. While some retailers have been discounting, an improved labour market and buoyancy in housing and stocks has lifted sales of cars, furniture, appliances and other durable goods.
Boeing machinists to vote Jan 3 on revised contract
Unionised workers at Boeing will vote on January 3 on the company?s latest proposed contract, according to a statement issued by the International Association of Machinists and Aerospace Workers on Sunday evening. In November, machinists at the Everett, Washington plant where Boeing?s 777 jet is built voted 2 to 1 against the company?s initial offer. Under that eight year contract, production of Boeing?s next jet ? the 777X ? would have remained in Washington state. But in exchange, management wanted to replace the workers? pension plan with a 401(k)-style retirement savings account and raise healthcare costs. In the aftermath of the vote, Boeing said it would look for other locations to build the 777X, the only jet the company is likely to develop in the next 15 years. Boeing later made a revised offer that included a larger signing bonus and other concessions, and asked union leaders to endorse it. But the leaders of IAM District Lodge 751, which represents the 31,000 workers, refused to endorse it or put it up for a vote, saying the changes were not significant enough.
Airbus, Emirates sign deal for 50 more A380s
Airbus said on Monday it had finalised a deal with Emirates Airline for 50 more A380s aircraft that had been announced at the Dubai airshow last month. The contract was inked by Emirates president Tim Clark during a visit to the aircraft maker?s French headquarters in Toulouse, Airbus said in a statement. The deal is worth $23 billion at list prices and brings the total orders from Emirates alone for the world?s largest jetliner to 140 aircraft.
Opel sees enough sales growth to avoid cost cuts
General Motors? European unit Opel is cautiously optimistic that sales will grow enough in 2014 to avoid a further round of cost cutting, chief executive Karl-Thomas Neumann told newspaper Sueddeutsche Zeitung. Opel is on track to reach profitability by 2016, Neumann said, but the company expects a difficult year ahead, weighed down by restructuring costs for ending vehicle production at its factory in Bochum in Germany. ?If the world doesn?t come to an end, we should keep growing, and then we don?t need additional cost savings,? Neumann said in an interview with the paper.
SFO to investigate bribery allegations: Rolls-Royce
Aerospace and defence group Rolls-Royce said Britain?s Serious Fraud Office (SFO) had started a formal investigation into concerns raised a year ago about bribery and corruption
in overseas markets. The SFO ordered the world?s second-largest maker of aircraft engines to conduct an inquiry and hand over details of possible bribery and corruption in China, Indonesia and other markets last December. ?We have been informed by the Serious Fraud Office that it has now commenced a formal investigation into these matters,? Rolls-Royce said on Monday.
