CEO of BAE to head Draper

retail

Party City profits drop because balloon helium costs more

Rising costs of helium are letting air out of Party City’s results as supply chain issues roil the global economy. Party City said during its earnings call on Monday that the company’s earnings took a $2 million hit as it pays more for gas insurance as spring graduation and festivities approach after two years of pandemic restrictions. The company said it diversified its supplier base after helium shortages affected profits in 2019 but is now dealing with facilities that have halted or temporarily halted production. Joseph Feldman, an analyst at Telsey Advisory Group, said Party City’s reliance on its balloon business means its helium problems are pressing it hard. – Bloomberg News

Automotive

Tesla recalls vehicles due to touch screens

Tesla is recalling about 130,000 vehicles across its model lineup in the United States because their touch screens can overheat and disappear. The recall covers some Model S sedans and Model X SUVs from 2021 and 2022, as well as Model 3 cars and Model Y SUVs starting in 2022. Documents published Tuesday by the National Highway Traffic Safety Administration indicate that during the fast-charging process, Processing computers may not cool down adequately. This can cause the computer to lag or restart, causing the center screen to run slowly or appear blank. Without the center display, cars could miss the rear-view camera displays, the settings that control windshield defrosters, and the indicators that determine whether the cars are in drive, neutral, or reverse. It can increase the risk of an accident. Tesla is fixing an issue with online software updates that will improve computer temperature management. Updates started on May 3. Tesla has faced a series of safety problems this year, including multiple investigations opened by NHTSA, the country’s road safety watchdog. The recall is the 11th for the electric car company since Jan. 27. Most of them have been fixed with software updates. – News agency

exercise equipment

Peloton, my early pandemic darling, loses millions

Peloton, the maker of connected fitness bikes that was one of the hottest companies in the early days of the pandemic, announced Tuesday morning that it lost $757 million in the first three months of the year, much more than analysts had expected. It also burned about the same amount of cash. This is the first earnings report under new Peloton CEO, Barry McCarthy. Since taking charge, McCarthy has focused on addressing supply chain issues, cutting costs, and experimenting with the company’s pricing model. This quarter included more than $200 million in write-offs, of which about $30 million covered inventory the company no longer believed it could sell. Membership increased just 5 percent from last quarter, to 7 million. Revenue fell 24 percent to $964 million. Sixty percent of that came from products and 40 percent from subscriptions. – The New York Times

energy

EU ramps up solar panel installations

The European Union’s executive arm is crafting a strategy for more than twice the speed with which solar panels are being installed across the block as part of a plan to quickly rid itself of Russian fossil fuels in the wake of the country’s war in Ukraine. The European Commission wants to install more than 300 gigawatts of photovoltaics by the middle of this decade — double the level seen in 2020 — and more than 500 gigawatts by 2030, according to a draft of its solar strategy seen by Bloomberg. – Bloomberg News

Play

Spare parts shortages and supply chain hurdles hurt Sony

Sony faces new challenges in its critical video game division, as component shortages and supply chain disruptions hamper production of major PlayStation 5 consoles. The Tokyo-based company said it sold 11.5 million units of the $500 device in the fiscal year that ended in March, and will aim to sell nearly 18 million units in the current fiscal year. Both numbers are well behind the initial targets of 14.8 million and 22.6 million units, respectively. – Bloomberg News

Pharmaceuticals

Teva and Allergan want to pay more than $5 billion to settle opioid lawsuits

Three people familiar with the settlement talks report that Teva Pharmaceutical and Allergan are willing to pay more than $5 billion combined to resolve more than 3,500 lawsuits against them over opioid addiction. The two drug companies, among about a dozen facing thousands of drug-related damage claims, have been in mediation talks with plaintiffs for more than a year, People said. While Teva and Allergan have indicated their willingness to compromise, no formal offer has been made or finalized, and talks are continuing, according to the people. – Bloomberg News

trade

US Chamber President criticizes Biden on trade policy

The head of the largest US business lobby group has issued a scathing criticism of President Biden’s trade policy, saying the administration is “used up by caution and internal reviews.” US Chamber of Commerce President Susan Clark said on Tuesday the administration “has not picked up even the slightest outstanding fruit” like the FTA talks with the United Kingdom and Kenya that began under former President Donald Trump but stalled under Biden. . Clark said the United States should also ease tariffs on imports inherited from Trump that are being used as a tax on Americans. Clarke said the Biden administration’s plan to bolster economic ties with Asia – known as the Indo-Pacific Economic Framework – remains “a far cry” as an alternative to the Trans-Pacific Partnership that Trump has abandoned. The current White House has made clear that it has no plans to join a subsequent deal. – Bloomberg News

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