Must-Read Money Stories for Wednesday, Jan. 18

by January 18, 2017
Boeing officials say they're working to lower costs of the Air Force One program after criticism from President-elect Donald Trump. (Image "Air Force One" by Gage Skidmore via Flickr, by CC license 2.0.)

Boeing officials say they’re working to lower costs of the Air Force One program after criticism from President-elect Trump. (Image “Air Force One” by Gage Skidmore via Flickr, by CC license 2.0.)

Boeing looks to cut costs of Air Force One

The chief executive of Boeing said Tuesday that progress is being made in lowering costs of its next generation of Air Force One program, according to The Hill. The comments followed Boeing executives’ second round of meetings that day with President-elect Donald Trump, who had threatened to cancel the program on Twitter last month after saying its costs had gotten “out of control.” The announcement comes less than a week after competitor Lockheed Martin disclosed plans to significantly lower costs of its F-35 fighter jet to the U.S. military—a decision that also stemmed from meetings with Trump after he similarly criticized the cost of the aircraft program via Twitter.

Automakers respond to Trump

General Motors officials announced Tuesday that $1 billion will be invested into existing operations in the U.S. while 7,000 or so domestic manufacturing and IT jobs will also be created or retained, according to this Detroit Free Press article published in USA Today. GM’s announcement comes a week after President-elect Donald Trump criticized the auto giant’s operations in Mexico—although GM officials say the plans unveiled Tuesday had been in the works for years. Trump’s Twitter criticisms have also garnered similar responses from Ford and Fiat Chrysler Automobiles in recent weeks. BMW, meanwhile, said that its plans for a $1 billion-factory in Mexico will move forward despite Trump’s weekend threats of a 35 percent border tax on German automakers, according to Reuters.

D.C. hotel costs surge for Inauguration

Hoteliers in the Washington D.C. area may rake in some hefty cash for the upcoming presidential inauguration. MarketWatch reported Tuesday that the average nightly hotel stay in D.C. in the days leading up to the Jan. 20 event stands at about $2,071—a whopping 927 percent spike from the usual costs this time of year. While hotel occupancy rates were still unavailable, Airbnb says it’s so far accommodated  15,100-plus bookings in the D.C. area for the weekend—10 times the figure it saw during the 2013 inauguration and already exceeding the company’s earlier expectations of 10,000 guests.

Rolls-Royce hit with bribery penalties

Government investigators in the U.S., Great Britain and Brazil disclosed Tuesday that they reached an $800 million deal with Rolls-Royce to settle claims that the British company had used bribery and secret payoffs to other countries to win business contracts dating back as far as 1989, according to USA Today. The settlements were revealed in court papers that were unsealed this week and allow the company, which has since publicly apologized, to continue business operations without criminal prosecution.