6 Most Important Things in Business Today: Amazon Picks NYC and Virginia

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According to the Washington Post, Amazon.com Inc.’s (NASDAQ: AMZN) second headquarters will be split between Crystal City Virginia and New York City. The Washington Post reports:

Amazon will open major new outposts in Northern Virginia’s Crystal City and New York City, splitting its much-sought investment of up to 50,000 jobs between the two East Coast sites, according to people close to the decision-making process people familiar with the discussions.

An announcement could come early as Tuesday, according to the people, who spoke on the condition of anonymity because they had signed nondisclosure agreements with the company.

Boeing Co. (NYSE: BA) had information about problems with the 737 like the one which crashed in Indonesia. According to The Wall Street Journal:

Boeing Co. withheld information about potential hazards associated with a new flight-control feature suspected of playing a role in last month’s fatal Lion Air jet crash, according to safety experts involved in the investigation, as well as midlevel FAA officials and airline pilots.

The automated stall-prevention system on Boeing 737 MAX 8 and MAX 9 models—intended to help cockpit crews avoid mistakenly raising a plane’s nose dangerously high—under unusual conditions can push it down unexpectedly and so strongly that flight crews can’t pull it back up. Such a scenario, Boeing told airlines in a world-wide safety bulletin roughly a week after the accident, can result in a steep dive or crash—even if pilots are manually flying the jetliner and don’t expect flight-control computers to kick in.

The International Energy Agency says the United States could produce more than half the world’s oil by 2025:

Relentless American shale development is set to allow the U.S. to leapfrog the world’s other major oil and gas producers, with the potential for the country to account for roughly half of global crude and natural growth by 2025, the International Energy Agency said Tuesday.

In its annual World Energy Outlook report, the IEA said its main projection scenario through to 2040 foresees the U.S. accounting for nearly 75% and 40% of global oil and gas growth, respectively, over the next six years. Growth is expected to be driven primarily by shale fracking, which should lead U.S. shale oil supply to more than double, reaching 9.2 million barrels a day by the mid-2020s, the agency said.

Crude oil prices fell again. According to The Wall Street Journal:

• Oil prices notched their longest losing streak on record Monday, as comments from President Trump negated expectations that the global oil cartel and its allies will cut production.
• Light, sweet crude for December delivery fell 0.4% to $59.93 a barrel on the New York Mercantile Exchange, marking the 11th consecutive session of losses, the longest in data going back to 1983.

iPhone component production may have fallen, which pulled Apple Inc.’s (NASDAQ: AAPL) shares down. According to The Wall Street Journal:

Apple Inc. shares sank further on Monday, as investors’ worries deepened about sales of new iPhones after two key suppliers for the device cut their earnings projections for coming months.

Japan Display Inc., which supplies screens for the iPhone XR, cut earnings estimates for its fiscal year ending in March. It said orders for its latest LCD panels would be much lower than its initial expectations for the three months ending in March.

Similarly, Lumentum Holdings Inc., which makes facial-recognition components for iPhones, lowered its earnings forecast by nearly 25% for the three months ending in December, saying one of its largest customers had materially reduced shipments for previously placed orders.

The International Monetary Fund says global growth is slowing. According to CNBC:

Growth is slowing in a number of the world’s big economies, and the International Monetary Fund is warning that investor sentiment could make a “sudden reversal” for the worse.

“Although still supportive of growth, global financial conditions have started to tighten,” the fund said in its latest Regional Economic Outlook report for Middle East and Central Asia, released Tuesday.

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