Strike Stops Boeing Production
Boeing machinists went on strike, forcing the aerospace company to halt production of commercial airplanes after the two sides failed to agree on a new labor contract. The walkout of about 18,400 employees affected Boeing operations in the Seattle area, Wichita, Kan., and Gresham, Ore. A Boeing spokesman said that the Chicago-based company could continue to do other work, such as designing new aircraft, but that there was no way to build planes without those workers.
US Airways Pension Deal Cleared
A federal bankruptcy judge approved a deal between US Airways and the Pension Benefit Guaranty Corp. that resolves the agency's nearly $2.7 billion in claims and ensures its support for the airline's Chapter 11 reorganization plan.
The deal will give the PBGC $13.5 million in cash, a $10 million note and an ownership stake in the reorganized airline to settle its claims rising out of US Airways' termination of its pension plans earlier this year.
Separately, the bankruptcy court approved US Airways' proposed sale of Embraer regional jet aircraft and slot assets to Republic Airways Holdings for $100 million in cash. US Airways said it also filed a motion to sell and lease back five Airbus A330s, nine Airbus A319s and five Airbus A320s -- sales that would generate more than $120 million in cash.
Freddie, Fannie Set Debt Plans
Fannie Mae and Freddie Mac will maintain plans to issue subordinated debt to help bolster capital reserves, their federal regulator said. The agreements formalize voluntary commitments that the government-chartered mortgage underwriting companies made in 2000, the Office of Federal Housing Enterprise Oversight said. It said the companies agreed to maintain core capital and subordinated debt equal to or exceeding 4 percent of their assets.
Microsoft Accuses Ex-Executive
Microsoft said a former vice president, Kai-Fu Lee, gave confidential information about the company's strategy in China to Google more than two months before he resigned to join Google. Microsoft said in a Washington state court filing that Lee sent Google a memorandum he prepared for Microsoft chief executive Steven A. Ballmer titled "Making it in China," removing a "confidential" label from the document. Google said the information was general and publicly available.
Gannett Newspaper Chief Retiring
Gannett said Gary L. Watson will retire Sept. 30 as president of its newspaper division after 39 years with the company. He will be succeeded by Susan Clark-Johnson, who oversees the Gannett Pacific Newspaper Group and is publisher of the Arizona Republic.
No Decision From E.U. on Textiles
The European Union put off deciding whether to let in about $500 million worth of Chinese garments blocked at European borders as textile-producing southern European nations resisted Trade Commissioner Peter Mandelson's plan to raise this year's quotas.
Italy leads the opposition to a quota-busting flood of imports. Mandelson has said he wants to raise the caps on Chinese clothes to prevent shortages at retailers.
Mandelson called on China to help overcome European opposition by agreeing to curb future E.U. imports in return for releasing the impounded clothing.
Agency to Oversee Drug Trials
The Indian government said it plans to create a new agency to ensure that clinical drug trials in the country meet the standards of U.S. and other international regulators. The Food and Drug Administration conducts its own assessments when those studies are part of an application to have a drug approved in the United States.
Compiled from staff and news service reports.