Telecommunications
Verizon Workers Begin Strike
Verizon Communication Inc. workers from Boston to Washington, D.C., numbering up to 45,000, went on strike on Sunday morning. The number is more than 20 percent of Verizon’s overall work force, and the union called for a strike after contract negotiations with the company broke down. The workers who went on strike include staff in the company’s wireline business, including residential and commercial telephony, cable, and other data traffic. The strike does not involve Verizon Wireless. “Verizon has refused to move from a long list of concession demands. As the contract expired, nearly 100 concessionary company proposals remained on the table,” according to a statement from the Communication Workers of America union, which is affiliated with the AFL-CIO. The work stoppage could disrupt customer service as well as expansion of its FiOS broadband television service.
Financial Services
Fannie Mae Loss Widens, Seeks More Help
Mortgage finance giant Fannie Mae last Friday reported a massive $2.9 billion second-quarter loss, which is more than twice the loss it reported during the same quarter last year. The loss at Fannie is mostly due to legacy subprime mortgages issued prior to the financial crisis in 2008. “We are focused on reducing taxpayer exposure by limiting our credit losses and building a strong new book of business. Our new book of business is now nearly half of our overall single-family book and we expect these new loans will be profitable over their lifetime,” said CEO Michael Williams in a statement. The company, which is in federal conservatorship, is seeking an additional $5.1 billion in aid from the Department of Treasury, which is roughly the same as the loss attributable to shareholders during the second quarter. Fannie and Freddie Mac, another mortgage finance company, have received in excess of $170 billion in taxpayer aid in total.
Transportation
Boeing Unveils First 787 to ANA
Boeing Co. on Saturday unveiled the world’s first passenger-ready Dreamliner 787 jet to its launch customer All Nippon Airways (ANA) of Japan. In Everett, Wash., Boeing executives delivered the airplane, donning the blue colors of ANA, to ANA executives. Once it is certified, the jet will fly to Japan and first domestic flights using the jet will begin in September. The next-generation jet, which saves as much as 20 percent in fuel compared to current jet airliners, will seat 264 people, with business and coach class. The plane roughly costs $200 million, and Boeing has received more than 825 orders for the jets. “We are inspired by the airline’s enthusiasm for this airplane and look forward to the day when we make our first delivery to ANA,” said Scott Fancher, general manager of the 787 program at Boeing, in a statement.
