Business and Tech News - 4.11.24

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Skool Projekt Staff
April 11, 2024

Inflation Remains Higher Than Expected

The Consumer Price Index in March rose by 0.4%, with both overall and core CPI (excluding food and energy) showing the same increase, pushing the annual inflation rate to 3.5% from February's 3.2%, while core CPI has remained at 3.8% since 2021. This trend of higher-than-desired inflation suggests that reducing it to the 2% target could take longer than previously thought, especially in light of Fed Chair Jerome Powell's cautious approach amid previously accelerating prices. The unexpected inflation data led analysts to revise their expectations for Federal Reserve rate cuts, triggering significant reactions in the global bond markets and a notable increase in the yield on two-year Treasury securities.

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New Boeing Whistleblower Claims

A whistleblower has raised safety concerns regarding the manufacturing of Boeing's 787 and 777 jets, prompting an FAA investigation into these allegations, while Boeing contends that these claims are unfounded and asserts the safety and service life of its planes are not compromised. The report led to a nearly 2% drop in Boeing's shares and marked the company's lowest quarterly plane deliveries since 2021, amid claims of compromised assembly processes affecting over 1,000 planes. This incident adds to Boeing's challenges, including scrutiny from multiple safety incidents, the impending resignation of its CEO, and heightened oversight from the FAA.

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Delta Posts Strong Earnings in Q1

Delta Air Lines achieved a profitable first quarter with record-breaking sales and anticipates second-quarter earnings between $2.20 and $2.50 per share, driven by robust bookings in both leisure and business travel. The airline expects up to a 7% revenue increase in the current quarter, maintaining its full-year earnings projection of $6 to $7 per share, amid a 14% growth in business travel sales, especially from technology, consumer, and financial sectors. Despite a post-pandemic hiring slowdown, Delta reported first-quarter adjusted earnings of 45 cents per share and $12.56 billion in revenue, narrowly missing analysts' revenue projections.

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Nvidia's Stock Enters a Correction

Nvidia's stock has entered correction territory, falling 10% from its peak, amidst unveiling of Intel's new Gaudi 3 AI chip, touted to surpass Nvidia's premier GPUs in efficiency and performance. Despite Nvidia's GPUs being crucial for AI technologies and witnessing a significant 486% increase in earnings recently, investor worries over its valuation and the new competition are evident. Analyst forecasts suggest a potential downturn for Nvidia around 2026, even with the company's current robust outlook.

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Toyota Offers New Hybrid 4Runner

Toyota has revealed a redesigned 4Runner SUV for 2025, marking its first major update in nearly 15 years and introducing a hybrid engine for the first time alongside new "Platinum" and "Trailhunter" trims. The new hybrid model boasts a turbocharged 2.4-liter engine combined with a 48-horsepower electric motor, delivering up to 326 horsepower. Set to be produced at Toyota's Tahara plant in Japan, the company will release pricing details for the 2025 4Runner closer to its showroom debut, highlighting a commitment to enhanced fuel efficiency and luxury.

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