FOX Business Briefs 6/19
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Diverging Reports Breakdown
Over 44K Audi vehicles recalled due to software issue that causes speedometer to fail
The U.S. National Highway Traffic Safety Administration (NHTSA) posted the recall to its site, saying 44,387 were affected by the recall. The remedy involves dealers updating the instrument panel software at no cost to the owner of the Audi. The recall affected several models manufactured between 2015 and 2020. Last year, Volkswagen recalled over 261,000 vehicles to address an issue with a suction jet pump inside the fuel tanks that could cause a leak and pose a potential fire hazard.
The U.S. National Highway Traffic Safety Administration (NHTSA) posted the recall to its site, saying 44,387 were affected by the recall.
Volkswagen Group of America Inc. has recalled certain 2021 SQ8, A6 Sedan, A7, A8, Q7, Q8, RS6 Avant, RS7, RSQ8, S6 Sedan, S7, S8, A6 Allroad and SQ7 vehicles because of the software issue.
“A vehicle’s virtual cockpit instrument cluster may shut down because of detection of an internal fault,” a document associated with the recall reads. “When this occurs, the engine speed (RPM), vehicle speed and gear/mode indicators will not be displayed. In addition to this, other information, such as time, date and mileage are also not displayed. Warnings, tell-tales and gauges that don’t display could increase risk of crash.”
Those who drive a 2021 Audi model are encouraged to visit the NHTSA website, where a search of the vehicle identification number will determine whether the vehicle is part of the recall.
VOLKSWAGEN, AUDI RECALL OVER 261,000 VEHICLES TO FIX FUEL LEAK, FIRE RISK
The remedy involves dealers updating the instrument panel software at no cost to the owner of the Audi.
IMPORTED LUXURY CARS SUCH AS AUDI HELD BY US OVER BANNED PART LINKED TO FORCED LABOR IN CHINA
Dealers will also send owners of affected vehicles notifications by May 30, 2025.
The manufacturer did not respond to FOX Business’ request for comment on the recall.
VOLKSWAGEN BRINGS CHATGPT INTO COMPACT CARS
Last year, Volkswagen recalled over 261,000 vehicles in the U.S. and Canada to address an issue with a suction jet pump inside the fuel tanks that could cause a leak and pose a potential fire hazard.
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The recall affected several models manufactured between 2015 and 2020.
China begins returning Boeing aircraft to US
Chinese airlines have begun returning Boeing aircraft to the U.S., with one 737 Max landing back at a Boeing production hub in Seattle over the weekend. Saturday’s return occurred shortly after China ordered its airlines not to take further deliveries of Boeing aircraft in response to the US imposing 145% tariffs on Chinese goods. A Chinese aircraft lessor saw another Chinese airline back away from its commitment to take delivery, forcing the lessor to remarket the already-built 737 Max 8 to other airlines, according to The Air Current. The tariff war and U-turn over deliveries comes as Boeing has been recovering from an almost five-year import freeze on 737 MAX jets.
Saturday’s return occurred shortly after China ordered its airlines not to take further deliveries of Boeing aircraft in response to the U.S. imposing 145% tariffs on Chinese goods, Bloomberg News reported last week.
A trio of 737 Max 8 jets that were originally being readied at Boeing’s Zhoushan delivery center for two Chinese airlines were recalled to the U.S. last week, according to aviation news service The Air Current, citing two people familiar with Boeing’s plans.
Reuters confirmed over the weekend that a witness saw a Boeing jet intended for China’s Xiamen Airlines landing back at the planemaker’s production hub in Seattle. The aircraft, which was painted with Xiamen livery, was one of the several 737 Max jets waiting at the Zhoushan completion center for final work and delivery to the Chinese carrier.
CHINA HALTS BOEING JET ORDERS
Fox News Digital reached out to Boeing and Xiamen Airlines for comment, but they did not immediately respond.
Lin Jian, the chief spokesperson for the Chinese Ministry of Foreign Affairs, said in a press conference on April 16 that he was “not familiar with” China making any formal announcement telling its airlines to refuse delivery from Boeing.
300 DELTA PASSENGERS LEFT STRANDED ON TARMAC OVERNIGHT AFTER STORMS DIVERT PLANES TO AIRPORT WITHOUT CUSTOMS
The Air Current said China’s order to halt Boeing deliveries has also affected domestic business. A Chinese aircraft lessor saw another Chinese airline back away from its commitment to take delivery, forcing the lessor to remarket the already-built 737 Max 8 to other airlines, the outlet reported, citing two people familiar with the development.
Analysts also said airline CEOs may rather defer plane deliveries than pay duties, according to Reuters, which could potentially damage Chinese airline operations.
Boeing, a “top U.S. exporter” that was angling to challenge Airbus’ dominance in the Chinese market, may be significantly impacted by the trade war as well.
Boeing’s year-to-date deliveries show that 18 aircraft have been delivered to nine airlines in China. The country’s top three airlines – Air China, China Eastern Airlines and China Southern Airlines – have plans to take delivery of 45, 53 and 81 Boeing planes, respectively, between 2025-2027, Reuters reported.
Ticker Security Last Change Change % BA THE BOEING CO. 197.73 -2.53 -1.26%
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The tariff war and U-turn over deliveries comes as Boeing has been recovering from an almost five-year import freeze on 737 MAX jets. The suspension in China began in 2019 over safety concerns following two fatal crashes involving the plane model in Indonesia and Ethiopia.
Fox News’ Pilar Arias and Reuters contributed to this report.
Home decor retailer files for Chapter 11 bankruptcy as part of restructuring
At Home Group has filed for bankruptcy to help the home decor retailer undergo a restructuring. The company announced Monday it started Chapter 11 bankruptcy proceedings so that it can implement a “restructuring support agreement” The restructuring support agreement will help the retailer wipe out “substantially all” of its nearly $2 billion in funded debt, At Home said. It will also infuse the retailer with $200 million of capital, the company said. The retailer’s footprint currently spans 260 locations scattered across 40 states. It has been owned by funds affiliated with private equity firm Hellman & Friedman since 2021.
The company announced Monday it started Chapter 11 bankruptcy proceedings so that it can implement a “restructuring support agreement” that it has signed with lenders “holding more than 95% of the Company’s debt.”
The restructuring support agreement will help the retailer wipe out “substantially all” of its nearly $2 billion in funded debt, At Home said. It will also infuse the retailer with $200 million of capital.
RITE AID FILES FOR BANKRUPTCY FOR SECOND TIME IN LESS THAN 2 YEARS
“The steps we are taking today to fully de-lever our balance sheet will improve our ability to compete in the marketplace in the face of continued volatility and increase the resilience of our business,” CEO Brad Weston said.
At Home has reached a deal for $600 million in debtor-in-possession financing in total. The other $400 million will come from a “roll up” of existing senior secured debt, it said.
The funds, subject to court approval, will help “provide sufficient liquidity to support the business during the court-supervised process,” according to At Home.
FLORIDA-BASED AIRLINE SUDDENLY SHUTS DOWN, LEAVING TRAVELERS STRANDED
While going through Chapter 11 bankruptcy, At Home will sell products at physical stores and through its website, the company said. It plans to keep a “majority” of its home decor stores open during the process, according to a document on its restructuring website.
The retailer’s footprint currently spans 260 locations scattered across 40 states.
Lenders including Redwood Capital Management, Farallon Capital Management and Anchorage Capital Advisors will become At Home’s new owners following the completion of the restructuring, according to At Home.
“Upon emergence from the rearranged restructuring process, At Home will move forward with new owners and a meaningfully strengthened balance sheet,” Weston said. “Importantly, this process will also further equip us with opportunities to invest in our strategic initiatives and to continue fortifying our business for the long term.”
WEIGHTWATCHERS FILES FOR BANKRUPTCY
The retailer’s restructuring support agreement and bankruptcy filing come after At Home took “deliberate steps” over the past several months to help boost sales growth, manage its inventory better and increase its efficiency in the face of a “dynamic and rapidly evolving trade environment” from tariffs, according to At Home’s CEO.
In its Chapter 11 petition, it estimated a range of $1 billion to $10 billion for its assets. Its estimated liabilities had the same range.
The home decor retailer’s origins trace back to the late 1970s. It has been owned by funds affiliated with private equity firm Hellman & Friedman since 2021.
Major oil price shock looming as Israel-Iran conflict threatens critical global shipping passage
The escalating conflict between Israel and Iran threatens a critical shipping route. The Strait of Hormuz is a critical waterway that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. A significant disruption to these flows would be enough to push prices to $120 per barrel, experts say. But if disruptions persist toward the end of the year, Brent could trade to new record highs, surpassing the record high of close to $150 per barrel reached in 2008, they say. The price of West Texas Intermediate, a key crude oil benchmark, is sitting around a one-year high.
The price of West Texas Intermediate, a key crude oil benchmark, is sitting around a one-year high, while global benchmark Brent Crude is nearing a five-month high Wednesday as the conflict between Israel and Iran enters its sixth day.
President Donald Trump met with his national security team Tuesday to discuss the escalating conflict, sparking speculation the U.S. could be preparing to join the attack, creating more volatility in the market, according to Ewa Manthey, commodities strategist at ING Financial Service.
EXXONMOBIL CEO TALKS OIL SUPPLY AMID IRAN-ISRAEL CONFLICT
But Manthey said the “key worry for the market” is the potential for disruption to shipping through the Strait of Hormuz, a critical waterway that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The waterway is not only wide enough to handle the world’s largest crude oil tankers. It is considered one of the world’s most important oil chokepoints, according to the Energy Information Administration (EIA) .
ExxonMobil CEO Darren Woods echoed those concerns, saying that while global oil supply is sufficient to withstand a disruption to Iranian exports, the greater concern is the potential impact on oil shipments through that waterway, which moves almost a third of global seaborne oil trade.
In 2024, 20 million barrels of oil per day, about 20% of global petroleum liquids consumption, flowed through the waterway. There are also very few alternative options to move oil out of the strait if it is closed, according to the EIA.
OIL PRICES SPIKE AFTER ISRAEL’S STRIKES ON IRAN
A significant disruption to these flows would be enough to push prices to $120 per barrel, according to Manthey. But if disruptions persist toward the end of the year, she noted that Brent could trade to new record highs, surpassing the record high of close to $150 per barrel reached in 2008.
“If this occurs, we would need to see governments tap into their strategic petroleum reserves,” Manthey said, noting that it includes the U.S., which sits on more than 400 million barrels of crude oil in its strategic petroleum reserves.
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Manthey said another solution would be if the Organization of the Petroleum Exporting Countries (OPEC+) tapped into its spare production capacity of more than 5 million barrels per day.
“While they are in the process of bringing supply back online, a disruption to Iranian supply may prompt them to bring this supply back at an even quicker pace,” Manthey said.
Oil, gold jump, stocks sink as Israel pummels Iran
All three of the major U.S. averages fell Friday, erasing weekly gains. The Dow Jones Industrial Average was down 769 points, or 1.8%, while the Nasdaq Composite and S&P 500 lost over 1% apiece. ExxonMobil, Chevron and ConocoPhillips rallied, while the United States Oil Fund ETF headed for its best percentage gain since April. Gold hit a fresh record, trading as high as $3,500 an ounce, rallying for the third straight session. The Federal Reserve is not expected to adjust interest rates at next week’s meeting or in July, according to the CME FedWatch Tool, which tracks the probability of rate moves. There is a growing consensus that a rate cut could come in September, CME’s tool says, and President Donald Trump has publicly needled Federal Reserve Chairman Jerome Powell to cut rates by a full percentage point.
All three of the major U.S. averages fell Friday, erasing weekly gains, with the Dow Jones Industrial Average down 769 points, or 1.8%, while the Nasdaq Composite and S&P 500 lost over 1% apiece.
Selling accelerated late afternoon on reports Iran retaliated, launching ballistic missiles at Israel, according to Fox News.
Ticker Security Last Change Change % I:DJI DOW JONES AVERAGES 42171.66 -44.14 -0.10% SP500 S&P 500 5980.87 -1.85 -0.03% I:COMP NASDAQ COMPOSITE INDEX 19546.27316 +25.18 +0.13%
Despite the Friday sell-off, the S&P 500, the broadest measure of U.S. stocks, ended little changed for the week.
S&P 500 .
The strikes, which began late Thursday, drove oil prices as high as 11% to the mid-$70 per barrel level, before halving those gains. ExxonMobil, Chevron and ConocoPhillips rallied, while the United States Oil Fund ETF headed for its best percentage gain since April.
LIVE MARKET UPDATES: STOCKS, BONDS, OIL
OIL & ENERGY
Ticker Security Last Change Change % XOM EXXON MOBIL CORP. 113.21 -0.81 -0.71% CVX CHEVRON CORP. 148.22 -0.63 -0.42% COP CONOCOPHILLIPS 93.79 -1.71 -1.79%
“This will certainly do some damage to the inflation statistics if it doesn’t roll back soon,” wrote investor Louis Navellier in a note to clients. A report on consumer inflation (CPI) released on Wednesday showed prices remain above the Fed’s 2% target level but still showed some relief.
United States Oil Fund .
RISING BOND YIELDS
Bond yields, which had been drifting lower, marched higher with the 10-year Treasury back above 4.4%, partly tied to renewed inflation concerns.
“This is a classic flight to safety, and you’re seeing that in Treasury yields,” said Frank Ros, senior market strategist at Angel Oak Capital Advisors, on “Mornings with Maria.” “Today’s investors are concerned with tensions flaring up going into the future,” he noted.
GOLD HITS NEW RECORD
Gold hit a fresh record, trading as high as $3,500 an ounce, rallying for the third straight session. The SPDR Gold Trust exchange traded fund, the largest backed by physical gold, is headed for a weekly pop of 3%.
TRUMP DESCRIBES WHEN HIS RELATIONSHIP WITH ELON WENT SOUTH
SPDR Gold Trust ETF .
FED WATCH
The Federal Reserve is not expected to adjust interest rates at next week’s meeting or in July, according to the CME FedWatch Tool, which tracks the probability of rate moves. There is a growing consensus that a rate cut could come in September.
TRUMP NAME CALLS FED CHAIR POWELL
President Donald Trump has publicly needled Federal Reserve Chairman Jerome Powell to cut rates by a full percentage point, calling him a “numbskull” and “Mr. Too Late” for keeping rates at current levels as foreign counterparts, including the European Central Bank, cut rates.
CRYPTOCURRENCY
Bitcoin, the largest cryptocurrency by market value, held at the $105,000 level and is sitting below its all-time high of $111,986.44.
Source: https://www.foxbusiness.com/video/6374581826112