FirstFT: Boeing rocket fails to blast off amid new investigation

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The launch of a Boeing spacecraft carrying two astronauts to the International Space Station has been rescheduled for the end of the week after it was called off last night.

The CST-100 Starliner, a joint venture between Boeing and Lockheed Martin, was due to blast off from Cape Canaveral in Florida but a problem with an oxygen relief valve on part of the rocket prevented the launch.

Boeing’s Starliner programme is a private sector supplier to Nasa and a rival to Elon Musk’s SpaceX.

The decision to abort came hours following a Federal Aviation Administration announcement of a fresh investigation into Boeing after the aerospace manufacturer revealed falsified inspection records for some of its 787 Dreamliner aircraft.

The FAA said Boeing had informed the agency last month that it might not have completed inspections “to confirm adequate bonding and grounding” where the wings of the 787 Dreamliner meet the fuselage.

Boeing is reinspecting all the 787s and must create a plan to address planes currently in service, the FAA said. Here’s more on Boeing’s latest setback.

Boeing supplier Spirit AeroSystems, a former unit of the aircraft maker that is also the subject of a takeover by its one-time parent company, is set to report results this morning. Here’s what else I’m keeping tabs on today:

• Company earnings: Reddit releases results for the first time as a public company later today. The social media group is expected to report a net loss of $610mn for the first quarter on revenues of $213mn. Disney, the Johnson & Johnson spin-off Kenvue, Tinder-parent Match Group, Lyft, Occidental Petroleum, Duke Energy, Nikola and Rivian also publish results.

• Economic statistics: Mexico’s statistics agency INEGI publishes consumer confidence data for April.

• Monetary policy: Federal Reserve Bank of Minneapolis president Neel Kashkari takes part in a moderated conversation on the US economy at the Milken Institute Global Conference in Beverly Hills, California.

• Joe Biden to address antisemitism: The president will deliver a keynote address at the US Holocaust Memorial Museum’s Days of Remembrance ceremony at the US Capitol.

Five more top stories

1. China’s President Xi Jinping has lashed out at Nato over its “flagrant” bombing of the Chinese embassy in Belgrade in 1999 on his first trip to Europe for five years. He was speaking ahead of a meeting with French President Emmanuel Macron in the Pyrenees later today before he travels to Serbia and Hungary later in the week. Here’s more on Xi’s comments on the 25th anniversary of the bombing.

• Gideon Rachman: China badly wants to disrupt the unity of both Nato and the EU and each of the three countries Xi is visiting is seen as a potential lever to prise open the cracks in the west.

• Russia-west relations: President Vladimir Putin said Russia remained open to dialogue with the west as he began his fifth term in office, extending his rule until at least 2030.

2. Israel sent ground troops into Rafah last night, seizing the main border crossing between Gaza and Egypt. The Israeli military said it had taken “operational control” of the Palestinian side of the Rafah crossing, at Gaza’s southernmost point, with armour and infantry backed by heavy air strikes. The offensive came just hours after Hamas announced it had accepted a multiphase ceasefire-for-hostage deal brokered by Egypt, Qatar and the US but rejected by Israeli Prime Minister Benjamin Netanyahu.

3. UBS has reported its first quarterly profit since taking over Credit Suisse as the Swiss lender begins to reap the benefits of the contentious rescue of its former arch-rival. UBS shares climbed 6 per cent this morning after the bank reported $1.8bn in net profit for the first three months of the year, comfortably surpassing analysts’ expectations. The wealth management business was again the powerhouse.

4. SoftBank is leading an investment of more than $1bn into UK self-driving car start-up Wayve, marking Europe’s largest artificial intelligence deal to date. The funding round, which also includes Nvidia and existing investor Microsoft, will allow the London-based company to deploy its autonomous systems in cars in the coming years. Here’s why the deal is significant for the UK.

5. Justice Juan Merchan, the judge overseeing Donald Trump’s Manhattan “hush money” trial, yesterday threatened to jail the former president if he continued to harass witnesses and jurors. The final warning came after the judge found Trump in criminal contempt for a 10th time over comments made online and to the media. Joe Miller reports on another dramatic day in the New York courtroom.

The Big Read

Undocumented immigrants make up a crucial part of New York state’s economy, accounting for roughly 10 per cent of the workforce in construction, hospitality and healthcare, according to a 2023 report by the state’s Regional Economic Development Council. But migrants face delays securing authorisation to work. Now there is a move by businesses and charities to speed up the issuance of work permits in order to fill vacancies.

We’re also reading . . . 

• SEC and crypto: The US regulator’s war on digital assets would cripple the industry and stifle American innovation, writes Ethereum co-founder Joseph Lubin.

• Kenya-US ties: William Ruto, the African nation’s leader, will seek to enhance relations and extend a trade pact when he meets US President Joe Biden this month, even as Russian influence grows in the continent.

• War in Ukraine: With the frontline in urgent need of new troops, Kyiv has started a campaign inviting men to choose their own unit and even their precise role.

Chart of the day

The OECD, IMF and World Trade Organization are forecasting a sharp rebound in the global flow of products this year after a slowdown in 2023 driven by higher prices, surging interest rates and sluggish demand. Clare Lombardelli, chief economist at the OECD, said a lot of the uptick was due to a “cyclical recovery” as trade rises alongside broader economic growth.

Take a break from the news

Boasting 13 floors of floating luxury and 14 restaurants, Cunard’s Queen Anne is shiningly, achingly new, writes Henry Mance. But is the $600mn pleasure palace already a relic of the days of high-carbon travel?

Additional contributions from Tee Zhuo and Benjamin Wilhelm