The Trial Balance is CFO’s weekly preview of stories, stats and events to help you prepare.
Part 1 — Julie Su heads to Seattle to address Boeing Strike
Julie Su, acting chair of the U.S. The Department of Labor which many members of Senate and Congress have deemed as underqualified, is set to fly to Boeing headquarters in Seattle amid a work stoppage to help bring both sides back to the negotiation table, according to a Reuters report. As the strike entered its fifth week on Monday, Su plans to arrive just days after the company unveiled plans to cut 17,000 jobs to curb costs and reduce the amount of cash it’s burning through during the strike.
Boeing’s new CEO Kelly Ortberg and CFO Brian West are feeling the pressure from their striking labor force. The stoppage, which is occurring in the plants that make the company’s commercial jets, such as the 767, 777 and the 747 MAX, stems from cost-cutting efforts that had catastrophic results.
The strike is not only impacting the company’s current finances but has drawn a warning from S&P about a potential reduction in the company’s top-tier credit rating. If this is reduced, and the company needs to borrow or offer more equity offerings to meet its obligations, it may lose the desire to hold out on negotiations and succumb to union demands to prevent an economically detrimental situation.
Although the Labor Department confirmed Su’s trip, it’s still unclear if there is a formal meeting planned between Su and either Ortberg or West. It’s likely that if a meeting takes place, it will be held off the record until afterward.
Part 2 — This week
Here’s a list of important market events slated for the week ahead.
Monday, Oct. 14
- Columbus Day/Indigenous Peoples’ Day — bond market closed
Tuesday, Oct. 15
Wednesday, Oct. 16
- Import price index, Sept.
Thursday, Oct. 17
- Initial jobless claims, week of Oct. 12
- U.S. retail sales, Sept.
- Industrial production, Sept.
- Capacity utilization, Sept.
- Business inventories, Aug.
- Home builder confidence index, Oct.
Friday, Oct. 18
- Housing starts, Sept.
- Building permits, Sept.
Part 3 — Q&A with Bona Allen, Kate Peachway’s morning, and X factors of success
This week’s content includes a Q&A with Bona Allen, CFO of Kajima Building and Design Group, an edition of the CFO Peer Audit Series on X factors of success and an edition of The 6 a.m. CFO series featuring TS Imagine’s CFO Kate Peachway.
