• Cliff Equity
  • Posts
  • 📈 Vodafone and Three’s Big 5G Merger Moves Closer!

📈 Vodafone and Three’s Big 5G Merger Moves Closer!

Boeing Strike Ends: Workers Bag Big Pay Boost

November 05, 2024

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Vodafone and Three’s Big 5G Merger Moves Closer!

  • Boeing Strike Ends: Workers Bag Big Pay Boost

  • £1.9bn Profits: Primark Defies Rainy Sales!

The summary: The Vodafone-Three merger could shake up the UK's mobile scene with better 5G and tougher competition, as long as price promises keep our wallets happy!

The details:

  • Vodafone and Three’s merger could get the green light—provided they promise not to hike prices and commit to turbocharging the UK's 5G rollout.

  • After earlier concerns about rising prices and reduced competition, the CMA now says its fears could be calmed if both firms agree to certain conditions.

  • Vodafone insists the merger would benefit the UK, promising faster 5G for schools and hospitals, and a strong competitor to rivals EE and O2.

  • With a potential decision by December, the CMA is inviting feedback on its proposal before formally giving the go-ahead.

Why it matters: A Vodafone-Three merger could reshape the UK's mobile market, creating a new powerhouse with 27 million customers. If handled right, it promises faster 5G and a fiercer competitor to EE and O2—but if mishandled, we might see higher bills and fewer choices. The CMA’s strict conditions are the only thing stopping this from being either a game-changer or a pricey mistake.

The summary: Boeing’s hard-fought pay deal finally ends a costly strike, securing happier wallets for workers, a new jet promise for Seattle, and plenty of work ahead for CEO Kelly Ortberg to keep the peace and planes rolling.

The details:

  • Boeing's bitter seven-week strike finally ends with a new pay deal – factory workers clinched a 38% wage boost over four years, bringing some much-needed relief for the planemaker's bottom line.

  • Nearly 33,000 workers returned to work after rejecting two previous offers, with the new contract securing a significant pay rise but no return of the old pension plan.

  • Boeing committed to building its next aircraft in Seattle, a major win for local workers who have been demanding greater investment and job security.

  • The strike cost Boeing around $100 million per day, forcing them to raise $24 billion in investor funds, all while new CEO Kelly Ortberg looks to rebuild trust with a wary workforce.

Why it matters: Boeing’s recent strike resolution underscores the company’s struggle to balance soaring worker demands with its own financial turbulence. The hefty pay hike and promise to build the next jet in Seattle reflect Boeing’s attempt to keep skilled hands happy after years of pent-up frustrations. With production now set to ramp back up, CEO Kelly Ortberg has to rally a miffed workforce, all while managing a growing bill that might just give the accountants a sleepless night or two.

The summary: Despite a rainy summer and cautious shoppers, Primark's parent company ABF is basking in a sunny profit surge, hinting that autumn might just be the season for a fashionable comeback!

The details:

  • Despite a soggy summer slowing swimwear sales, Primark’s parent, ABF, splashed out with a 43% leap in profits, hitting £1.9bn before tax.

  • Foot traffic dipped in the April-to-June drizzle, but shoppers perked up in time for autumn—early sales of jumpers and jackets are already looking snug.

  • Primark sales in the UK and Ireland nudged up by 0.7% (not counting new stores), and collaborations with stars like Rita Ora kept things fresh for fashionistas.

  • As Brits tighten their belts ahead of Black Friday, BRC’s Helen Dickinson blames delayed half-term and mild weather for October’s lackluster 0.6% retail growth, hoping November perks up.

Why it matters: ABF’s profit boost shows Primark is still raking it in, even with soggy sales of sandals and holiday bits. A cautious UK shopper eyeing Black Friday and bigger bills hints that high street spending is a bit wobbly, though—autumn sweaters and Rita Ora collabs can only do so much. If Brits keep holding out for winter discounts, retailers might just feel the frost bite before the real cold snaps.