Business

SEATTLE (Reuters) – Boeing resumed testing for its long-delayed 777X widebody jet on Thursday, with the first flight since the U.S. planemaker grounded the test fleet in August due to the failure of a key engine mounting structure. 

The grounding came just five weeks after it had started certification flights for the 777-9 with officials from the U.S. aviation regulator onboard. 

Federal Aviation Administration staff were not on board for Thursday’s flight, according to the company.  

The 777X is the successor to Boeing’s 777, one of the most commercially successful long-haul airliners. The company initially planned to deliver the first 777X to launch customer Qatar Airways in 2020. 

First delivery of the 777-9 has since been pushed back to 2026, followed by the smaller 777-8 and a freighter version later in the decade. 

Boeing’s other 777X airline customers include Emirates, Lufthansa, Singapore Airlines and Cathay Pacific Airways. The planemaker has 481 777X orders, including 170 from Emirates and 60 from Qatar, according to Cirium, an aviation industry analytics company.  

Boeing’s 777-9 test plane made a return flight from Boeing Field in Seattle to Moses Lake, Washington on Thursday. 

“We continue to execute a rigorous test program to demonstrate the safety, performance and reliability of the 777-9,” Boeing said after it landed in the afternoon.

A company spokesperson declined to comment on how the airplane performed during the flight. 

(Reporting by Dan Catchpole; Editing by Jamie Freed)

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BEIJING (Reuters) – China’s economy grew 5.4% in the fourth quarter from a year earlier, official data showed on Friday, significantly beating analysts’ expectations and enabling the government to meet its annual growth target.

Analysts polled by Reuters had forecast fourth-quarter gross domestic product (GDP) would expand 5.0% from a year earlier, quickening from the third-quarter’s 4.6% pace as a flurry of support measures began to kick in. The quarter’s growth marked the quickest since the second quarter of 2023.

For the full-year 2024, the world’s second-largest economy grew 5.0%, data from the National Bureau of Statistics data showed, meeting the government’s annual growth target of around 5%. Analysts had forecast 4.9% growth.

On a quarterly basis, GDP grew 1.6% in October-December, compared with a forecast 1.6% increase and a revised 1.3% gain in the previous quarter.

Chinese policymakers have unveiled a blitz of stimulus measures since September last year to revive sputtering growth, and have pledged to do more this year as U.S. President-elect Donald Trump, who has proposed hefty tariffs on Chinese goods, is set to return to the White House next week.

(Reporting by Kevin Yao; Writing by Ellen Zhang; Editing by Jacqueline Wong)

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By Andrea Shalal and David Lawder

WASHINGTON (Reuters) -The U.S. Trade Representative’s office on Thursday said it has found China’s targeted dominance of the global shipbuilding, maritime and logistics sectors is “unreasonable” and is “actionable” under U.S. trade law.

The findings of a USTR probe, first reported by Reuters on Tuesday, did not include a specific recommendation of penalties against Beijing, leaving next steps up to President-elect Donald Trump, who takes office on Monday.

USTR said its report “supports a determination that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable and burdens or restricts U.S. commerce and thus is actionable.”

China’s embassy in Washington could not immediately be reached for comment on the probe.

U.S. Trade Representative Katherine Tai launched the probe in April 2024 at the request of the United Steelworkers and four other U.S. unions under Section 301 of the Trade Act of 1974, which allows the U.S. to penalize foreign countries that engage in acts that are “unjustifiable” or “unreasonable,” or burden U.S. commerce.

Section 301 is the law used by both Trump and President Joe Biden to impose steep tariffs on Chinese imports since 2018.

Tai said in a statement that the U.S. commercial shipbuilding sector has fallen to less than five ships a year from 70 in 1975, while China now builds 1,700 ships annually.

“Beijing’s targeted dominance of these sectors undermines fair, market-oriented competition, increases economic security risks, and is the greatest barrier to revitalization of U.S. industries, as well as the communities that rely on them,” Tai said.

“These findings under Section 301 set the stage for urgent action to invest in America and strengthen our supply chains,” she said.

United Steelworkers International President David McCall welcomed the report as “a firm and undeniable indictment, requiring a swift, decisive response” from the incoming administration and noting Trump had indicated a willingness to hold China accountable.

No comment was immediately available from the Trump transition team.

The report found that China’s effort to dominate the shipbuilding, maritime and logistics sectors is due to Beijing’s “extraordinary control” over enterprises in the sector and deprives market-oriented firms of commercial opportunities. This in turn reduces competition and increases dependence on China.

The Chinese sectors benefit from China’s lack of effective labor rights, excess capacity in steel production and control over digital logistics services, the report found.

U.S. Senator Mark Kelly, said the report illustrated the need to revitalize U.S. shipbuilding and maritime industries, including through his legislation to achieve that.

“The PRC’s unfair trade practices are enabling China’s dominance over the oceans, while hurting American workers and our national security,” Kelly said, using an acronym for the People’s Republic of China.

(Reporting by David Lawder and Andrea Shalal; Writing by Caitlin Webber and Christopher Cushing)

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(Reuters) – PNC Financial on Thursday reported a higher fourth-quarter profit as it earned more in interest payments and set aside less capital to cover potential loan defaults.

Wall Street CEOs are confident that the incoming U.S. administration would be business-friendly and good for banks. Some of the biggest U.S. banks including JPMorgan Chase & Co reported bumper results on Wednesday, while Bank of America predicted more interest income in 2025.

Banks are also set to benefit from normalization of deposit costs, which had been elevated over the past 2 years, due to competition with rate-sensitive products such as money-market funds.

Pittsburgh, Pennsylvania-based PNC’s net interest income (NII) rose to $3.52 billion in the fourth quarter from $3.40 billion a year earlier, driven by lower funding costs and the continued repricing of fixed-rate assets.

Meanwhile, interest rate cuts are also expected to boost loan demand and deal activity, reduce consumer stress, and enable lenders to lower cash reserves set aside for potential defaults by customers.

PNC’s provisions for credit losses fell to $156 million in the reported quarter, reflecting an improvement in the broader macroeconomic outlook, compared with $232 million a year earlier.

The lender’s net income attributable to diluted common shareholders rose to $1.51 billion, or $3.77 per share, in the three months ended Dec. 31 from $740 million, or $1.85 per share, a year ago.

(Reporting by Jaiveer Singh Shekhawat and Manya Saini in Bengaluru; Editing by Shinjini Ganguli)

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By Arasu Kannagi Basil and Saeed Azhar

(Reuters) -Bank of America’s profit beat expectations on Thursday as its traders benefited from a flurry of activity in the fourth quarter while the lender predicted it would earn more interest income in 2025.

The earnings mirror those of rivals across Wall Street including JPMorgan, Goldman Sachs, Wells Fargo and Citigroup, whose results were buoyed by stronger equity markets and investment banking.

“Every source of revenue increased, and we saw better than industry growth in deposits and loans,” CEO Brian Moynihan said. “This broad momentum sets up 2025 very well.”

The second-largest U.S. lender’s net income rose to $6.7 billion, or 82 cents per share. That compares with $3.1 billion, or 35 cents per share, a year earlier.

On an adjusted basis, BofA earned 82 cents per share in the fourth quarter, beating analysts’ expectation of 77 cents per share, according to estimates compiled by LSEG.

The bank’s shares rose 2.7% in premarket trading.

BofA’s sales and trading revenue rose 10% to $4.1 billion, and the division notched records for the fourth quarter and full year. Fixed income revenue rose 13% because of improving performance in macro products and continued strength in credit while equities revenue climbed 6%, fueled by more client activity.

Equity markets rallied in the fourth quarter following the U.S. elections as investors bet on a more business-friendly environment under President-elect Donald Trump.

The S&P 500 stock index had a banner year, closing 23.3% higher in 2024 after racking up 57 all-time closing highs.

BofA’s wealth and investment management division also benefited from surging equities, attracting more client money. Its revenue climbed 15% to $6 billion, while client balances jumped 12% to a record $4.3 trillion.

Meanwhile, Wall Street profits rebounded last year as mergers and acquisitions recovered from a decade-low in deal volumes in 2023.

Bankers anticipate a stronger 2025 for dealmaking, helped by Trump’s vow to implement pro-business policies.

BofA’s investment-banking fees jumped 44% to $1.7 billion in the fourth quarter, compared with a year earlier, but overall net income for its global banking unit fell as its expenses rose for personnel and technology.

Across the industry, global investment-banking revenue jumped 26% to $86.80 billion, led by a 33% surge in North America, according to Dealogic data. BofA earned the third-highest revenue among banks globally.

BofA’s rivals also raked in higher fees from advising clients on deals and underwriting stock and debt offerings.

Investment-banking fees rose 49% at JPMorgan, 24% at Goldman Sachs, 59% at Wells Fargo and 35% at Citigroup.

NII TO CONTINUE TO GROW IN 2025

BofA’s net interest income – the difference between what banks earn on loans and pay out for deposits – rose 3% to $14.4 billion in the quarter, compared with a year earlier, driven mainly by market activity, fixed-rate asset repricing and loan growth.

The figure beat analysts’ mean forecast of $14.27 billion in the fourth quarter.

That marks the first time BofA has posted year-on-year NII growth since the third quarter of 2023.

“We believe at this point we can continue this trajectory” on NII, Chief Financial Officer Alastair Borthwick told reporters on a conference call. “The economy is performing well, our asset quality is healthy, the consumers are still spending.”

BofA expects NII of $14.5 billion to $14.6 billion in the first quarter, higher than analysts’ expectation of $14.36 billion. It expects NII to climb in the fourth quarter to a range of $15.5 billion to $15.7 billion.

“Clearly, the outlook for lending profitability is improving in 2025 from a combination of steeper yield curve, less pressure on deposit costs and expectations for modest loan growth,” said Stephen Biggar, banking analyst at Argus Research.

Higher interest rates had crimped NII in recent quarters as lenders shelled out more to hold onto customers’ deposits. Moynihan said last month he expects to see NII grow throughout 2025.

BofA’s NII is also expected to benefit from fixed-rate assets and securities portfolio repricing over time into higher-yielding assets.

A steeper yield curve is also positive for banks as they can borrow money at lower short-term rates and lend at higher long-term rates, bolstering their interest income.

BofA stock gained 30.5% in 2024, underperforming rivals JPMorgan, Wells Fargo and Citigroup as well as the KBW Bank Index.

A U.S. bank regulator last month issued a regulatory punishment on Bank of America for shortcomings in its anti-money-laundering programs.

Borthwick said the bank has been working closely with the Office of the Comptroller of the Currency over the last year to improve know-your-customer, anti-money-laundering programs, but does not see much material financial impact from the punishment.

(Reporting by Arasu Kannagi Basil in Bengaluru and Saeed Azhar in New York, Editing by Lananh Nguyen, Anil D’Silva and Rod Nickel)

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(Reuters) – Polestar said on Thursday it sold fewer-than-expected cars and the Swedish EV maker’s CEO added that it will take longer for the company to be profitable.

The company has struggled to scale up its business amid weakening demand for electric vehicles and intensifying competition from legacy manufacturers.

Over the past year, Polestar has tried to overhaul its business, including a major management reshuffle with the appointment of Michael Lohscheller as CEO, a new head of design, a new chair of the board, and a new finance chief and chief operating officer.

(Reporting by Akash Sriram in Bengaluru and Marie Mannes in Stockholm; Editing by Shounak Dasgupta)

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WASHINGTON (Reuters) – U.S. retail sales increased solidly in December, pointing to strong demand in the economy and further reinforcing the Federal Reserve’s cautious approach to cutting interest rates this year.

Retail sales rose 0.4% last month after an upwardly revised 0.8% gain in November, the Commerce Department’s Census Bureau said on Thursday.

Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, advancing 0.6% after a previously reported 0.7% rise in October.

The report followed news last week of a surge in nonfarm payrolls and drop in the unemployment rate to 4.1% from 4.2% in November. Though underlying inflation slowed in December, overall consumer prices increased by the most in nine months.

The U.S. central bank has forecast only two rate cuts this year, down from the four it had projected in September, when it launched its policy easing cycle. That was in acknowledgement of the potential risks from President-elect Donald Trump’s plans for broad tariffs, mass deportations of undocumented immigrants and tax cuts, which economists have warned are inflationary.

Labor market resilience is driving spending through solid wage growth. Household balance sheets are also in good shape, though lower-income consumers are struggling.

The Fed is not expected to cut rates this month. Its benchmark overnight interest rate has been reduced by 100 basis points to the 4.25%-4.50% range, having been hiked by 5.25 percentage points in 2022 and 2023.

Retail sales excluding automobiles, gasoline, building materials and food services surged 0.7% last month after an unrevised 0.4% gain in November. These so-called core retail sales, correspond most closely with the consumer spending component of gross domestic product.

The Atlanta Fed is currently forecasting GDP increasing at a 2.7% annualized rate in the fourth quarter.

The economy grew at a 3.1% pace in the July-September quarter, well above the 1.8% pace that Fed officials regard as the non-inflationary growth rate.

(Reporting by Lucia Mutikani; Editing by Chizu Nomiyama)

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(Reuters) -Morgan Stanley’s profit increased in the fourth quarter, fueled by a wave of dealmaking and stock sales that drove its revenue to a full-year record.

Investment banking fees gained from a surge in mergers and acquisitions as sentiment was boosted by a strong U.S. economy, interest-rate cuts and expectations of lighter regulation under incoming U.S. President Donald Trump.

“We are executing against four pillars – strategy, culture, financial strength and growth – that support our integrated firm, creating long-term value for our shareholders,” CEO Ted Pick said, citing growth in investment banking and wealth management.

Morgan Stanley garnered record net revenue of $61.8 billion for 2024. Busier activity across geographies, notably in Asia and the Americas, lifted its equity trading revenue by 22% to a record.

Its quarterly investment banking revenue rose 25% to $1.64 billion, echoing results at rivals Goldman Sachs and JPMorgan, which also reported stronger profit on Wednesday.

Its earnings grew to $3.7 billion, or $2.22 per share, for the three months ended Dec. 31, compared with $1.5 billion, or 85 cents per share, a year earlier.

The bank also benefited from easier comparisons with last year, when it took certain one-time charges to refill a government deposit insurance fund and to settle a government probe.

Shares of the investment bank were up 1.1% before the bell.

Globally, investment banking revenue jumped 26% to $86.80 billion in 2024, according to data from Dealogic. Wall Street CEOs and dealmakers expect more large deals to be approved under the Trump administration than his predecessor Joe Biden.

Investment banks also cashed in on rallying equities, which encouraged initial public offerings and follow-on stock sales, while lower borrowing costs led companies to issue bonds.

(Reporting by Niket Nishant in Bengaluru and Tatiana Bautzer in New York; Editing by Lananh Nguyen and Arun Koyyur)

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By Siddharth Cavale

NEW YORK (Reuters) – Target raised its holiday-quarter comparable sales forecast on Thursday, buoyed by robust shopper demand for clothing, toys and beauty products during November and December.

Black Friday and Cyber Monday were record sales days, the Minneapolis-based chain said, prompting it to raise its comparable sales growth forecast for the three months through January to 1.5% from prior expectations of flat growth.

Analysts had expected fourth-quarter comparable sales to rise 0.2%. But, the retailer maintained its forecast for the fourth quarter and full-year adjusted earnings per share in the range of $1.85 to $2.45 and $8.30 to $8.90, respectively.

Shares of Target reversed course to drop 1% in premarket trading as analysts said investors might want more clarity on reaffirmed profit forecasts.

Target’s sales performance is in contrast to rival Macy’s, which issued a more downbeat outlook for the holiday quarter.

It also surpassed initial estimates from data and research firms that had predicted a slightly weaker Black Friday and Cyber Monday for Target compared to rivals Walmart, PDD’s Temu and Shein.

Earlier this week, apparel retailers, including Lululemon, Abercrombie & Fitch and American Eagle, also raised their holiday-quarter sales expectations as discounts at stores and online drew in more customers.

Target’s comparable sales rose 2% during November and December, Target said, driven by a nearly 3% rise in shopper visits to its website and 1,963 U.S. stores.

The retailer saw a “meaningful” increase in the purchases of non-essential items such as apparel and toys, a change from the previous quarter where apparel sales were weak as unusually warm weather reduced demand for winter clothing.

As a result, Target had issued a much weaker-than-expected sales forecast for the holiday quarter, causing its shares to drop.

Since then it boosted advertising on streaming platforms like Peacock and Hulu after Black Friday and on Cyber Monday. It also increased promotions to attract cash-strapped customers and cut prices across a wide assortment.

Some of the promotions included up to 40% off on sweatshirts, sweatpants, fleece and denim products, while it also increased toy collection priced under $20.

“It was a better-than-expected report and it gives us some optimism as you head into the year,” Telsey Advisory Group analyst Joseph Feldman said.

Analysts and investors have noted that during the holiday season retailers who were able to offer differentiated or trendy merchandise saw a boost in sales.

Target benefited from its exclusive merchandise partnership with pop star Taylor Swift, its spokesperson said, with shoppers queueing up to buy her Eras Tour book and vinyl albums on Black Friday.

The company on Thursday also announced executive leadership changes, including the elevation of senior vice president, store operations, Adrienne Costanzo as chief stores officer and Prat Vemana’s transition to chief information officer and product officer from chief digital and product officer.

Costanzo and Vemana replace Mark Schindele and Brett Craig, respectively, who are retiring. The company also promoted Sarah Travis, head of its retail media business, to executive vice president and chief digital and revenue officer.

(This story has been refiled to fix the syntax in the headline)

(Reporting by Siddharth Cavale in New York and Ananya Mariam Rajesh in Bengaluru; Editing by Christopher Cushing and Arun Koyyur)

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AUSTIN, Texas (AP) — A real estate developer whose relationship with Texas Attorney General Ken Paxton was at the center of the Republican’s historic impeachment trial in 2023 pleaded guilty Wednesday to a federal charge of lying to a financial institution.

The plea by Nate Paul, whose company is based in Texas, was entered before a U.S. magistrate judge and still must be reviewed by a district judge, court documents show. Records did not indicate when Paul might be sentenced.

Paul claimed that federal investigators acted improperly when they raided his Austin home in 2019. He later sought help from Paxton, and the relationship and dealings between the two men played a prominent role in lawmakers impeaching Paxton, who was later acquitted in the Senate.

Paxton has long denied wrongdoing and was not mentioned in federal indictments against Paul, which accused the developer of making false statements to banks in order to obtain more than $170 million in loans.

The Associated Press emailed a request for comment to federal prosecutors on Wednesday. Staff for Paul’s attorney, Gerry Morris, said he would have no comment.

Paul would figure heavily in 20 articles of impeachment filed against Paxton, who was accused of abusing his power and bribery in order to help the developer, who gave the Republican a $25,000 campaign donation in 2018.

The impeachment came about after eight of the attorney general’s top deputies reported him to the FBI in 2020. All were subsequently fired or quit and half the group later sued under the state’s whistleblower law.

Paul initially faced a dozen charges, including wire fraud and conspiracy to commit wire fraud, but online documents noted only the plea to the single charge of lying to a financial lender.

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