JetBlue to acquire Spirit Airlines: JetBlue and Spirit Airlines this morning announced that their boards of directors have approved a definitive merger agreement under which JetBlue will acquire Spirit for $3.8 billion. The deal was announced shortly after Frontier Airlines and Spirit announced that their planned merger had been called off. The combined JetBlue and Spirit will be the fifth largest air carrier in the U.S. The combined airlines will have a fleet of 458 aircraft with another 300 new airplanes on order from Airbus.
Rate of GDP decrease slows: The Commerce Department reported his morning that the rate at which the country”™s economy has been slowing slowed down in the second quarter of the year. Real Gross Domestic Product decreased at the annualized rate of 0.9% in the second quarter of the year. In the first quarter of the year, real GDP had decreased at an annual rate of 1.6%. Disposable personal income increased 6.6% in the second quarter, a $353.8 billion increase.
Manchin to vote for climate change bill: Senate Majority Leader Chuck Schumer of New York has worked out a deal with Democratic Senator Joe Manchin for Manchin to support a $369 billion legislative package to flight climate change. The package is being handled as a reconciliation measure, allowing passage by a simple majority. Without Manchin”™s vote the Democrats would not have a majority to pass it. The Democrats now are referring to the legislation as the Inflation Reduction Act so that Republicans voting against it will be on record as voting against reducing inflation.
Senate approves computer chip bill: The Senate has approved a bill that would help boost U.S. manufacturing of computer chips. The bill now goes to the House. Republicans in the House have been urged by Senate Republican Leader Mitch McConnell to vote against it after McConnell previously expressed support for the measure. The bill is called the Chips and Science Act and includes government subsidies for chip manufacturers.
Threat to use nuclear weapons: Kim Jung Un, the leader of North Korea, warns that he”™s prepared to use nuclear weapons against the U.S. and South Korea. He said in a speech that joint military exercises by the U.S. and South Korea that practice targeting North Korea are gangster-like acts and have pushed the Korean peninsula closer to war.
Shell reports $11.5B Q2 profit: Shell Oil Company, which is based in London, has reported record second quarter profits of $11.5 billion, more than double its second quarter profit in 2021. Shell CEO Ben van Beurden said, “With volatile energy markets and the ongoing need for action to tackle climate change, 2022 continues to present huge challenges for consumers, governments, and companies alike. Consequently, we are using our financial strength to invest in secure energy supplies which the world needs today, taking real, bold steps to cut carbon emissions, and transforming our company for a low-carbon energy future.”
