Tuesday headlines include: Alaska Airlines buying more jets from Boeing, other banks confirming that hackers who hit JP Morgan tried to compromise them as well, Hank Paulson saying the AIG bailout was designed to prevent moral hazard, Time Warner unit Turner Broadcasting cutting 10% of its workforce and Sodastream offering weak third-quarter guidance.
Regional carrier Alaska Airlines (ALK) agreed to buy 10 of Boeing's (BA) 737-900ER jets in a deal worth $990 million at list prices. The new jets are in addition to existing orders and bring the total number of planes that Alaska Air has on order from Boeing to 74.
The hackers responsible for the most-recent data breach at JP Morgan (JPM) reportedly tried to attack other financial institutions as well. According to the Wall Street Journal federal officials asked other banks to check for indications of a cyberattack from the computers suspected in the JP Morgan breach. The banks reported the attempted attacks do not believe their systems were compromised.
American International Group
Former Treasury Secretary Hank Paulson said yesterday that the 2008 bailout of insurance giant American International Group (AIG) was designed to send a message to shareholders that the government would not bail them out. Paulson, whose testimony did not cover how the specific terms of the deal were set, said it was necessary to set terms that would protect against “moral hazard” so signal that the government would not bail out anyone who took risk recklessly.
Time Warner (TWX) unit Turner Broadcasting is cutting its workforce by 1,475 jobs, or about 10%. That figure includes between 500 and 600 workers who the company previously announced will be offered buyouts. The cuts will come from “all levels from across the company's news, entertainment, kids, young adult and sports networks” and also from the company's other functions.
Home soda machine maker SodaStream (SODA) said ti expects revenue of about $125 million in the quarter ending Sept. 30, compared to analyst estimates for $154.1 million. The company said demand has been less than expected in the U.S.