Business

By Dan Catchpole

SEATTLE, May 22 (Reuters) – Boeing was found not guilty of hiding safety problems with 737 MAX jets sold to LOT Polish Airlines last decade, a jury ruled Friday in U.S. District Court in Seattle.

LOT had accused Boeing of defrauding it by withholding a critical change to the popular single-aisle jet’s flight-control systems. The change was linked to two fatal 737 MAX crashes in 2018 and 2019 that led to the jets being grounded around the world for 20 months.

The airline was seeking $153 million in damages that it said resulted from the grounding.

After a two-week trial, the jury members deliberated for three hours. 

“We are gratified by the jury’s verdict in our favor today,” a Boeing spokesperson said. 

LOT issued a statement acknowledging the outcome but leaving room for an appeal.

“As the legal process may not yet be concluded, LOT will not comment further on the details of the proceeding at this stage,” the company said.

(Reporting by Dan Catchpole in Seattle; Editing by William Mallard)

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JEFFERSON CITY, Mo. (AP) — Delays could be in store for a proposed $7.25 billion settlement covering thousands of claims that the maker of Roundup weedkiller failed to warn people the product could cause cancer.

An attorney opposed to the settlement filed paperwork Friday to move the case to federal court instead of a Missouri court, where people face a June 4 deadline to opt out of the settlement. The dispute about who should preside over the proposed settlement could disrupt its deadlines and delay a resolution about whether it should be approved.

The legal wrangling over the settlement is playing out as the U.S. Supreme Court weighs a case that could block thousands of lawsuits filed in state courts against agrochemical-maker Bayer, which added Roundup to its portfolio when it acquired Missouri-based Monsanto in 2018. Bayer contends the state-level claims that it failed to warn of cancer risks should be forbidden because it followed federal labeling standards that don’t require a warning.

Germany-based Bayer also disputes the assertion that Roundup’s key ingredient, glyphosate, can cause non-Hodgkin lymphoma.

The Environmental Protection Agency has determined that it’s not likely to be carcinogenic to humans when used as directed. But plaintiffs point to a 2015 decision by the World Health Organization’s International Agency for Research on Cancer, which classified the chemical as “probably carcinogenic.”

The case before the Supreme Court was filed on behalf John Durnell, who says he developed non-Hodgkin lymphoma after more than 20 years of spraying Roundup on a community garden in St. Louis. Durnell is not covered by the proposed class-action settlement. But his attorney, Ashley Keller, filed objections opting out of the settlement on behalf of several other clients before also filing a document to shift the settlement case to federal court.

“This is a huge settlement that is extinguishing the rights of tens of thousands of cancer victims,” Keller said Friday. “It was rushed in to state court.”

The move to federal court is sure to face opposition.

Attorney Christopher Seeger, who is proposed as a claimants’ representative in the settlement, denounced the court shift as “a baseless delay tactic that should be promptly denied.”

A statement from Bayer said the move “has no merit,” and it would work to keep the proceedings in state court.

The proposed nationwide settlement was filed in February in St. Louis Circuit Court in Missouri. It’s designed to address most pending Roundup lawsuits, as well as any additional cases brought in the coming years by people who were exposed to Roundup. But if too many claimants opt out, Bayer reserves the right to cancel it.

A hearing on the settlement is scheduled for July 9 in state court. The Supreme Court, meanwhile, is expected to issue a decision in Durnell’s case by the end of June.

The proposed settlement calls for Bayer to make annual payments into a special fund for up to 21 years, totaling as much as $7.25 billion. The amount of money paid out to individuals would vary depending on how they used Roundup, how old they were when diagnosed and the severity of their non-Hodgkin lymphoma.

An agricultural, industrial or turf worker exposed at length to Roundup would receive an average of $165,000 if they were diagnosed with an aggressive form of the illness while younger than age 60, according to the proposed settlement. But those diagnosed at age 78 or older would get an average of $10,000.

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May 22 (Reuters) – Senior Walmart executives Tom Ward, COO of warehouse chain Sam’s Club, and Cedric Clark, U.S. store operations chief, are leaving amid a major management rejig under CEO John Furner, according to internal memos seen by Reuters on Friday.

The changes come as Furner, who took over from Doug McMillon in February, pushes a technology-focused strategy aimed at expanding Walmart’s marketplace and delivery businesses and attracting higher-income shoppers.

The company eliminated 1,000 roles last week to simplify its operating structure.

Ward will retire from his role at the Walmart-owned warehouse club chain Sam’s Club by the end of the month. He has been with the company for over a decade, serving in executive roles, including as Walmart U.S.’s chief e-commerce officer.

Meanwhile, the date for Clark’s departure hasn’t been officially announced, according to the memos, which said a new executive vice president for store operations would be announced in a couple of weeks.

The development, first reported by the Wall Street Journal earlier on Friday, also comes at a critical time for Walmart as persistent inflationary pressures strain budgets of lower-income U.S. households.

On Thursday, the retailer reiterated its conservative annual sales and profit targets amid softer consumer spending. However, it said it expects net sales to be near the high end of its guidance, as its scale helps keep prices low despite tariffs and geopolitical volatility.

Walmart has reported quarterly revenue growth for nearly a decade straight. Its shares hit a record high this week.

Meanwhile, smaller rival Target doubled its annual sales forecast Wednesday, but warned of a tough macro environment ahead. Grocers Kroger and Albertsons provided conservative annual forecasts as they reported earnings this week.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Diti Pujara)

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WASHINGTON (AP) — President Donald Trump on Friday oversaw the White House swearing-in of the new Federal Reserve chair and said he would like Kevin Warsh’s help in stimulating the economy even as he tried to emphasize that the nation’s central bank would remain independent.

Trump spent months criticizing Warsh’s predecessor, Jerome Powell, for being reluctant to cut interests rates, with the Republican president arguing that lower borrowing costs would provide an economic boost. By taking the unusual step of holding the ceremony in the East Room and not the Fed, Trump made clear his pleasure that Warsh is now in charge.

The war with Iran has caused gas prices to spike, unsettled financial markets and driven inflation concerns across the economy. Those developments have led to recent doubts about whether Warsh might heed Trump’s calls and push the Fed to lower rates.

Still, Trump said he had faith that Warsh would prioritize a strong economy.

“Thankfully, unlike some of his predecessors, Kevin understands that when the economy is booming, it is, that’s a good thing,” the president said. Trump said it was not necessary “to go crazy. Just let it go. We want it to boom.”

Supreme Court Justice Clarence Thomas administered the oath of office. Also on hand were House Speaker Mike Johnson, R-La., Justice Brett Kavanaugh, CIA Director John Ratcliffe and Cabinet members.

“I expect he will go down as one of the truly great chairmen of the Federal Reserve that we’ve ever had,” Trump said of Warsh.

Republican President Ronald Reagan swore in Alan Greenspan as Fed chair at the White House in 1987. Republican President George W. Bush attended the 2006 ceremony at central bank headquarters when Ben Bernanke became chair.

But having the event at the White House raises more questions about the Fed’s independence at a time when Trump has constantly sought to bend the independent central bank to his will.

Trump’s Department of Justice began an investigation into Powell and the Fed’s extensive building renovations. That drew backlash from lawmakers and the department scrapped the investigation. The Fed’s internal watchdog is now handling the matter. Powell’s term as chair ended last week, though he has opted to remain on the Fed board for now.

Trump made a point of saying during his remarks, “Honestly, I really mean this. This is not said in any other way: I want Kevin to be totally independent.”

“I want him to be independent and just do a great job,” Trump said. “Don’t look at me, don’t look at anybody. Just do your own thing.”

In the next breath, however, Trump said that “in the eyes of many, the Fed has lost its way in recent years” under his predecessor, Democratic President Joe Biden. Trump also suggested that Warsh is looking to lead policies that promote “positive economic growth” and that doing so did not have to mean higher inflation.

Trump also noted that the stock market had risen Friday. “That means they like you,” he said of Warsh.

Warsh once harshly criticized Fed’s policies, including its low interest rate policies coming out of the coronavirus pandemic, which he says contributed to the largest U.S. inflation spike in four decades in 2021-2022. More recently, he has sometimes echoed Trump’s demands for lower rates.

Warsh says productivity gains from artificial intelligence will help the economy grow more quickly without spurring inflation, enabling the Fed to reduce borrowing costs. Many Fed officials, however, disagree that AI’s development will support rate cuts, especially because the technology has also been blamed for large-scale layoffs in the computer sector and other parts of the economy.

On Friday, Warsh promised “to lead a reform oriented Federal Reserve, learning from past successes and mistakes, both escaping static frameworks and models and upholding clear standards of integrity and performance.”

He told Trump that he believes “these years can bring unmatched prosperity that will raise living standards for Americans from all walks of life. And the Fed has something to do with it.”

Warsh further noted that the Fed’s mandate “is to promote price stability and maximum employment. When we pursue those aims with wisdom and clarity, independence and resolve, inflation can be lower; growth, stronger; real take home pay, higher and America can more prosperous.”

As he left the ceremony, Treasury Secretary Scott Bessent reinforced Trump’s message, predicting to reporters that Warsh will “do the right thing for inflation and growth.”

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By Mike Scarcella

WASHINGTON, May 22 (Reuters) – Prominent U.S. law firm Fenwick & West, which advised FTX before its 2022 blockbuster collapse and bankruptcy, on Friday said it will pay $54 million to resolve claims from FTX customers who alleged the firm helped enable one of the largest financial frauds in U.S. history. 

Here are the details:

• A preliminary settlement was filed on Friday in the federal court in Miami, Florida, and will require approval by a judge.

• Silicon Valley-founded Fenwick, known for its work for technology clients, was a lead outside law firm for FTX as the exchange rose to prominence as one of the largest crypto platforms in the world. Fenwick “helped to craft and implement strategies that facilitated FTX’s fraud,” plaintiffs alleged.

• Litigator David Boies and other lead attorneys for the plaintiffs told the court that the Fenwick deal was reasonable and will avoid the risk of long, complex litigation.

• Fenwick in a statement on Friday said it “was not aware of the fraud at FTX, stands by the integrity of its legal work, and disputes wrongdoing of any kind, as we have consistently stated throughout this matter.” The firm, which employs more than 500 lawyers, said “we look forward to putting this matter behind us” and focusing on its business.

• The Fenwick settlement is part of a second wave of agreements in the FTX litigation. Earlier accords included settlements with two former FTX executives.

• FTX founder Sam Bankman-Fried was sentenced in 2024 to 25 years in prison for stealing $8 billion from customers in a massive fraud scheme. He pleaded not guilty and has appealed his conviction.

(Reporting by Mike Scarcella; Editing by Sergio Non and Kim Coghill)

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May 22 (Reuters) – Radiopharmaceutical-focused company Lantheus Holdings is weighing a potential sale after getting a takeover offer from private-equity backed Curium Pharma that values it at about $7 billion, Bloomberg News reported on Friday.

The two companies have been in discussions about a potential deal that could be weeks away, the report said, citing people familiar with the matter. No final decision has been made and there is no guarantee the talks will result in a transaction, the report said.

Lantheus declined to comment. Shares of the company, which has a market capitalization of about $6.15 billion, were trading nearly 2% down in extended trading.

Curium was valued at about $7 billion last year when its owner, CapVest Partners, raised funds for a continuation vehicle for the nuclear medicine company, the report said. Curium did not respond to a Reuters request for comment.

Lantheus beat analysts’ expectations for first-quarter adjusted profit earlier this month, helped by demand for its cancer imaging agent.

“2026 is a year of commercial execution and regulatory milestones,” said interim CEO Mary Heino on the earnings call. “We’re making deliberate choices about where we focus our commercial efforts and deploying capital, so we’re positioned to deliver solid results in 2026 and accelerate growth in 2027.”

Lantheus, however, reiterated its annual earnings forecast, while the company acknowledged, according to a William Blair analyst, that an upward revision is overdue but will not occur until a permanent CEO is appointed.

In March, the U.S. FDA extended its review of Lantheus’ diagnostic imaging kit, LNTH-2501, by three months to allow more time to assess manufacturing-related information. The decision is now expected by June 29.

Separately in March, the regulator approved a new formulation of the company’s prostate cancer imaging agent, Pylarify, aimed at expanding scanning access through increased production capacity.

(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shilpi Majumdar)

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The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week. Trips to the grocery store or gas station are more painful than they were last year, and that is impacting the decisions of both households and businesses.

Here’s a snapshot of prominent economic data and news that occurred over the past week and what it potentially means for you.

The average long-term U.S. mortgage rate climbed this week to its highest level in nearly nine months, driving up borrowing costs for homebuyers during what’s traditionally the housing market’s busiest time of the year.

The benchmark 30-year fixed rate mortgage rate rose to 6.51% from 6.36% last week, mortgage buyer Freddie Mac said Thursday. Despite the sharp increase, the average rate remains below 6.86%, where it was a year ago.

Rates have been mostly trending higher since the war with Iran began. The closure of the Strait of Hormuz has roiled energy markets, sending crude oil prices sharply higher — a key driver of inflation.

Expectations of higher oil prices and worries about big and growing debts for the U.S. government and others have pushed up long-term bond yields, causing mortgage rates to head higher.

U.S. retailers have spent months navigating an uncertain economic environment, from President Donald Trump’s tariffs to the impact of soaring gasoline prices due to the Iran war. The average price for a gallon of regular gasoline rose again this week, ending at about $4.55 per gallon on Friday, according to AAA. Gasoline prices are about 45% above where they were at this time last year.

Based on quarterly financial reports from Walmart, Target, Home Depot, Lowe’s and TJX, shoppers are cautious but still spending, helped by more generous tax refunds. Yet there is a widespread belief among economists that once those refunds dry up, shoppers will pull back on spending. Consumer spending is the dominant economic engine for the U.S., and retreat would have broad implications for the U.S.

Walmart issued a forecast for the current quarter on Thursday that was weaker than what Wall Street had been expecting. Target raised its annual revenue outlook on Wednesday, saying it expected momentum to continue the rest of the year. Yet the upgraded sales expectations were still below the pace of the first quarter.

Fewer Americans filed for jobless aid last week as layoffs remain low despite a number of uncertainties that continue to cloud the economy.

U.S. applications for unemployment benefits for the week ending May 16 fell by 3,000 to 209,000, the Labor Department reported Thursday. That’s fewer than the 213,000 new applications analysts surveyed by the data firm FactSet had forecast.

Weekly filings for unemployment benefits are considered a proxy for U.S. layoffs and are close to a real-time indicator of the health of the job market.

Despite historically low layoffs, the labor market appears to be stuck in what economists call a “low-hire, low-fire” state. That’s kept the unemployment rate low at 4.3%, but left many of those out of work struggling to find new employment.

The split between Wall Street and most U.S. households grew even wider Friday, as U.S. stocks rose toward the finish of an eighth straight winning week, their longest such streak since 2023. That’s even though a survey showed on the same day that U.S. consumers are feeling worse about the economy.

Shares of Workday and Zoom Communications rose after both delivered better profit reports for the latest quarter than analysts expected.

They’re the latest companies to top analysts’ expectations for profits for the start of 2026. And the cavalcade of such reports has helped U.S. stocks remain near their records. Stock prices tend to follow the path of corporate profits over the long term.

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By Pratima Desai and Polina Devitt

LONDON, May 22 (Reuters) – Commodity trader Trafigura plans to take large amounts of copper from London Metal Exchange warehouses in New Orleans, two industry sources said, citing a U.S. tariff decision due late in June as a possible reason.

Swiss-based Trafigura declined to comment.

Traders have already moved substantial volumes of copper to the United States in anticipation of possible import levies that would raise shipping costs. The threat has increased the value of existing stocks because holding copper in the United States allows buyers to lock in supply at pre‑tariff prices.

The United States is expected to decide by late June whether to impose tariffs on copper metal imports following a review.

U.S. IMPOSED TARIFFS ON COPPER LAST YEAR 

Last year it imposed a 50% tariff on copper pipes and wiring, part of a broader levy on semi‑finished copper products, following a review.

Copper held in LME‑registered warehouses in the United States is typically stored in free trade or bonded zones, meaning it has not formally entered the U.S. and is not subject to import tariffs unless taken into the domestic market.

LME data showed more than 30,000 metric tons of copper were cancelled, or earmarked for delivery, in New Orleans on Thursday, taking the total of cancelled metal to 45,675 tons in that U.S. location.

LME data does not identify which companies are responsible for inventory movements, but the two sources, who declined to be identified, said the company was Trafigura.

Total cancellations on Thursday were over 50,000 tons. The bulk of the remaining 22,000 tons was in LME warehouses in Kaohsiung, Taiwan.

Cancelled LME copper stocks overall amount to nearly 30% of the total at 391,900 tons.

The total stock of copper in warehouses approved by Comex is 574,864 metric tons, an increase of more than 550% since U.S. President Donald Trump in February last year ordered a Section 232 investigation, which is meant to determine whether a product is entering the U.S. in sufficient quantities to threaten national security.

Since February last year, traders have withdrawn copper from LME warehouses and those monitored by the Shanghai Futures Exchange to send to the United States, industry sources have said.

(Reporting by Pratima Desai and Polina Devitt; additional reporting by Eric Onstad; editing by Barbara Lewis)

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May 22 (Reuters) – The Dow Jones Industrial Average hit an intraday record high on Friday, its first since the U.S.-Iran war began, as AI-driven trade and market optimism over negotiations to end the war lifted risk appetite.

The blue-chip index rose 0.73% to 50,651 points, surpassing its previous record high of 50,512.79 from February 10 after crossing 50,000 points earlier this week. The index had confirmed a correction in March, closing 10% below record highs, as worries about the global economic impact of the war in Iran fueled a broader Wall Street sell-off.

Artificial intelligence-driven moves and a Middle East ceasefire aided market recovery from March lows, with both the S&P 500 and the Nasdaq hitting record highs in mid-April. The industrials-heavy Dow lagged behind, however, as technology shares drove markets.

On the Dow, tech names Cisco, Amazon and Nvidia have outperformed over the quarter. The chip giant’s sales outlook topped estimates this week.

Laggards over the same time period include Chevron, McDonalds and Nike.

Robust first-quarter earnings have outweighed geopolitical uncertainties with analysts’ estimates for the next 12-month U.S. earnings rising by over 10% since the start of the year, according to LSEG Datastream.

(Reporting by Twesha Dikshit and Utkarsh Tushar Hathi in Bengaluru; Editing by Devika Syamnath)

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May 22 (Reuters) – Global equity funds recorded the first weekly outflow in nine weeks in the week through May 20, as investors turned cautious over inflation and a rise in long-term borrowing costs to nearly two-decade highs.

According to LSEG Lipper data, investors liquidated a net $6.13 billion of global equity funds during the week, logging their first weekly net sales since mid-March, when they had withdrawn a net $21.87 billion.

The 30-year U.S. Treasury yield climbed to 5.201% on Wednesday, its highest since 2007, as uncertainty around a possible resolution to the Middle East conflict raised concerns over energy prices and inflation. It last traded at 5.0795%.

U.S. equity funds suffered the second weekly outflow in three weeks, to the tune of $12.05 billion. Asian funds also recorded net outflows of $570 million, though European funds attracted a net $4.62 billion in inflows.

Technology sector funds were popular for a seventh successive week, with net inflows of $6.94 billion. Financials and industrials, however, had weekly outflows of $2.8 billion and $1.3 billion, respectively.

Investors, meanwhile, bought a net $21.89 billion of global bond funds as they extended the recent buying streak into a seventh successive week.

Short-term bond funds, government bond funds and euro-denominated bond funds witnessed significant weekly net purchases of $7.47 billion, $3.09 billion and $1.68 billion, respectively.

Money market funds recorded a lighter $1.06 billion weekly net inflow, after a net outflow of $10.41 billion the prior week.

Gold and precious metals commodity funds saw a net $2.34 billion of weekly inflows, remaining popular for a second straight week.

In emerging markets, investors shed a net $2.95 billion of equity funds, resulting in a fourth straight week of outflows. They also withdrew $256 million from bond funds after a run of six weekly purchases, combined data for 28,926 funds showed.

(Reporting by Gaurav Dogra; Editing by Jonathan Ananda)

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