Boeing 737 Woes drag DJIA Lower

737maxDJIA component #Boeing $BA is lower, dragging the index lower due to issues with its long awaited 737 Max airplane. The company announced the suspension of #737 Max flights due to a manufacturing issue with low-pressure turbine discs.

Engine supplier CFM International, a joint venture between #General Electric $GE and #Safran $SAFRY , notified Boeing of the manufacturing issue, Boeing said in a statement.

The 737 Max remains in testing and is yet to commence commercial flights.

Shares of plane suppliers #Spirit AeroSystems $SPR , #Textron $TXT , #United Technologies $UTX and #Rockwell Collins $COL followed Boeing lower on the news. Boeing in afternoon trading is down $2.59 to $182.90. DJIA is down 54 units while GE is down 1% to $28.67.

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SEC fines Barclays $97M

barclaysThe #SEC announced an enforcement action requiring Barclays Capital to refund advisory fees or mutual fund sales charges to clients who were overcharged.

In a settlement of more than $97M, Barclays agreed to settle three sets of violations that resulted in clients being overbilled by nearly $50M, according to the SEC.

The SEC’s order finds that two Barclays $BCS advisory programs charged fees to more than 2,000 clients for due diligence and monitoring of certain third-party investment managers and investment strategies when in fact these services weren’t being performed as represented.

#Barclays also collected excess mutual fund sales charges or fees from 63 brokerage clients by recommending more expensive share classes when less expensive share classes were available. Another 22,138 accounts paid excess fees to Barclays due to miscalculations and billing errors by the firm.

Without admitting or denying the SEC’s findings, Barclays agreed to create a “Fair Fund” to refund advisory fees to harmed clients.

The Fair Fund will consist of $49.79M in disgorgement plus $13.75M in interest and a $30M penalty. Barclays will directly refund an additional $3.5M to advisory clients who invested in third-party investment managers and investment strategies that underperformed while going unmonitored.

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Peanuts and Strawberry Shortcake Sold for $345M

Peanuts#Iconix Brand $ICON has entered into a definitive agreement to sell its interest in the #Peanuts and #Strawberry Shortcake brands to #DHX Media for $345M in cash, subject to a customary working capital adjustment.

The company intends to use the net proceeds from this transaction plus additional cash on the balance sheet to pay down approximately $362M of debt.

This includes a mandatory payment of approximately $152M of the company’s Senior strawberrySecured Notes issued under its securitization facility, and the full extinguishment of the $210m outstanding balance of its Senior Secured Term Loan. Going forward, the entertainment segment will be reported as a discontinued operation.

The company expects the elimination of earnings from the entertainment segment to be offset by interest savings from the reduction of debt. The total acquisition cost of these brands was $246M. This transaction is expected to close by the end of Q2.

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Softbank to push T-Mobile and Sprint into a deal

sprint#SoftBank  $SFTBF is prepared to enter talks on potential mergers and acquisitions for wireless unit #Sprint $S , particularly keen on a potential deal with #T-Mobile $TMUS , Reuters reports, citing comments made by CEO Masayoshi Son at a news conference.

The company previously tried to acquire T-Mobile for Sprint but dropped talks following opposition from U.S. antitrust regulators. “Of all potential partners, T-Mobile is the one that would yield the most synergies, the most orthodox choice and we’d sincerely love to begin talks,” Son said, adding that the current U.S. adtmobileministration is more open to the possibility of a deal.

The company is also open to other possible deals if there were better offers.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

Import Prices Jump in April

Ships gather off the ports of Los Angeles and Long Beach, California in an aerial imageU.S. April import prices rose 0.5% while export prices edged up 0.2%.

The 0.2% decline in March import prices was revised up to 0.1% (and February’s 0.4% gain was revised down to 0.3%). The 0.2% March export price increase was bumped down to 0.1%.

For import prices, petroleum climbed 1.6% from -0.4% (revised from -3.6%). Excluding petroleum, import prices were up 0.4% from 0.1% (revised from 0.2%).

Industrial supply prices increased 1.1%, while food and beverage prices rose 0.3%.

Import prices with Canada rose 0.6% from 0.7% (revised from -1.3%), and were down 0.1% with China versus the 0.2% March gain.

For exports, agricultural prices were up 0.3% following the prior 0.8% gain (revised from 0.9%). Excluding ag, export prices inched up 0.1%, the same as in March (revised from 0.2%).

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