World Street | Boeing strikes deal, Google’s ad-tech on trial, Yellen calms fears, US job growth under forecast and more

World Street offers a sneak peek into the world of business and economy.

Boeing reaches a tentative deal with its union, avoiding a strike. Google is set for its second antitrust trial over ad-tech dominance. Treasury Secretary Janet Yellen remains optimistic despite weak job reports. The US job market slows, and Volkswagen CEO Blume calls for cuts due to a shrinking European market. All this and much more in today's edition of World Street.
Boeing Avoids Strike

Boeing has reached a tentative labor agreement with the union representing about 33,000 workers, avoiding a potential strike. The deal offers a 25 percent pay increase over four years, along with better health-care and retirement benefits. The union also stated that Boeing committed to building its next plane in the Pacific Northwest.

Google Faces Second DOJ Antitrust Trial

Google will face its second antitrust trial with the Department of Justice on Monday, focused on its dominance in the ad-tech sector. The DOJ claims Google's advertising technology gives the company an unfair advantage, fostering a monopoly and driving up ad costs for customers.

Ad-tech services make up 77 percent of Google's total revenue. In 2023, the company earned $307 billion, with $237 billion coming from its advertising operations, according to its annual report.

Treasury’s Yellen Stays Optimistic

Treasury Secretary Janet Yellen reassured the public on Saturday about the strength of the US economy, despite recent weak job reports that have unsettled investors and affected the stock market.

“We’re seeing less frenzy in terms of hiring and job openings, but we’re not seeing meaningful layoffs,” Yellen stated at the Texas Tribune Festival in Austin. “I’m attentive to downside risk now on the employment side, but what I think we’re seeing, and hope we will continue to see, is a good, solid economy.”

Labor Market Slows in July

The US job market slowed more than anticipated in July, with only 114,000 positions added and the unemployment rate rising. This shift has led traders to speculate that the Federal Reserve may cut interest rates this year.

The Bureau of Labor Statistics reported the job growth was far below economists' forecast of 175,000 new positions and the revised 179,000 added in June. Additionally, it fell short of the 12-month average of 215,000. The unemployment rate climbed for the fourth month in a row to 4.3 percent.

Volkswagen Faces Market Decline

Volkswagen CEO Oliver Blume, in an interview with Bild am Sonntag, highlighted the need for drastic cuts in Germany due to a shrinking European market and growing competition. Blume noted, "The market is contracting, and more players are entering." He added, "European car sales are down, while Asian competitors are aggressively expanding."