New home sales in May best levels since ’08
Purchases of new U.S. homes surged in the Northeast and West in May, as steady job growth over the past year has lifted the real estate sector. The Commerce Department said Tuesday that new home sales rose 2.2 percent last month to a seasonally adjusted annual rate of 546,000, the strongest pace since February 2008. Sales of new homes have soared 24 percent year-to-date, helped by the additional incomes from the employers hiring 3.1 million workers in the past 12 months and relatively low mortgage rates.
Verizon teases new video service
Verizon is launching a mobile video service this summer that would show sports, concerts and other types of content. The country’s largest wireless provider teased a few details of its upcoming offerings Tuesday while announcing it had completed its $4.4 billion purchase of AOL Inc. The deal is designed to help Verizon Communications Inc. expand in mobile video and advertising as more hours are spent watching video, reading and shopping on phones and tablets.
Boeing gets new CEO
Boeing on Tuesday announced Jim McNerney, who led the aerospace giant for the past decade, will be stepping down as CEO on July 1, replaced by the company’s chief operating officer, Dennis A. Muilenburg. McNerney, 65, will remain chairman of Boeing’s board of directors, where he has served since 2001. He will remain a Boeing employee through February “to ensure a smooth transition of his CEO responsibilities to Muilenburg,” the Chicago-based company said, adding that he will also continue advocating on behalf of Boeing including in Washington, D.C.
Channel trains canceled amid Calais chaos
All trains and many ferry services between Britain and France were cut off Tuesday by striking port workers, stranding hundreds of trucks and thousands of passengers on both sides of the English Channel. Adding to the chaos, illegal migrants who are camped by the thousands in the port city of Calais tried to stowaway on vehicles stuck in traffic jams. About 50 strikers made it onto the tracks by the freight terminal building in Calais, which forced tunnel operator Eurotunnel to close the tunnel in both directions. The company told passengers travel should resume Wednesday but warned them to arrive extra early.
Delta pilots to begin voting on labor deal
Delta Air Lines pilots begin voting Wednesday on a proposed labor contract that would increase their pay by nearly 14.5 percent in 2016 compared with today’s rates. Some of Delta’s more than 12,000 pilots, however, are unhappy about other terms of the three-year agreement, including changes to profit-sharing and work rules. The period for Delta pilots to vote on the tentative labor agreement runs from June 24 through July 10. The union reached the deal with the Atlanta-based company six months before the pilots’ current contract expires, following Delta’s reporting of billions of dollars in profits.