According to new investigations, a Boeing rocket failed to take off

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The launch of a Boeing spacecraft carrying two astronauts to the International Space Station has been postponed until the end of the week after being canceled last night.

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

Boeing’s Starliner program is a private supplier to NASA and a competitor to Elon Musk’s SpaceX.

The decision to cancel came hours after the Federal Aviation Administration announced a new investigation into Boeing after the aerospace manufacturer uncovered falsified inspection records for some of its 787 Dreamliner planes.

The FAA said Boeing informed the agency last month that inspections may not have been completed “to confirm adequate bonding and grounding” where the 787 Dreamliner’s wings meet the fuselage.

Boeing is re-inspecting all 787 planes and must create a plan for the planes currently in service, the FAA said. Read more about Boeing’s latest setback here.

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

Company profit: Reddit is reporting results as a public company for the first time today. The social media company is expected to report a net loss of $610 million on revenue of $213 million in the first quarter. Disney, Johnson & Johnson spinoff Kenvue, Tinder parent Match Group, Lyft, Occidental Petroleum, Duke Energy, Nikola and Rivian also report results.
Economic statistics: Mexico’s statistics agency INEGI releases consumer confidence data for April.
Monetary policy: Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, participates in a moderated conversation about the U.S. economy at the Milken Institute Global Conference in Beverly Hills, California.
Joe Biden speaks about anti-Semitism: The president will deliver a keynote address at the US Holocaust Memorial Museum commemoration at the US Capitol.

Five more top stories

1. China’s President Xi Jinping has heavily criticized NATO over its “flagrant” bombing of the Chinese embassy in Belgrade in 1999 on his first trip to Europe in five years. He was speaking ahead of a meeting with French President Emmanuel Macron in the Pyrenees later today before traveling to Serbia and Hungary later in the week. Read more about Xi’s comments on the 25th anniversary of the bombing here.

Gideon Rachman: China is keen to disrupt the unity of NATO and the EU, and each of the three countries Xi is visiting is seen as potential leverage to open the rifts in the West.
Russia-West relations: President Vladimir Putin said Russia remains open to dialogue with the West as it enters its fifth term in office and will extend its rule until at least 2030.

2. Israel sent ground troops to Rafah last night and occupied 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 the Gaza Strip’s southernmost point with tanks and infantry supported by heavy airstrikes. The offensive came just hours after Hamas announced it had accepted a multi-stage hostage ceasefire deal negotiated by Egypt, Qatar and the United States, but was 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 controversial rescue of its former arch-rival. UBS shares rose 6 percent this morning after the bank reported net profit of $1.8 billion for the first three months of the year, comfortably beating analysts’ expectations. The asset management business was once again the driving force.

4. SoftBank is leading a $1 billion-plus investment in British self-driving car startup Wayve. This is Europe’s largest artificial intelligence deal to date. The funding round, which also includes Nvidia and existing investor Microsoft, will enable the London-based company to deploy its autonomous systems in cars in the coming years. This is why the deal is important for the UK.

5. Judge Juan Merchan, the judge overseeing Donald Trump’s “hush money” trial in Manhattan, Yesterday he threatened to be jailed if he continued to harass witnesses and jurors. The latest warning came after the judge convicted Trump for the 10th time of criminal contempt for online and media comments. Joe Miller reports on another dramatic day in the New York courtroom.

The great read

According to a 2023 report from the state’s Regional Economic Development Council, undocumented immigrants make up a critical portion of New York state’s economy, making up about 10 percent of the workforce in construction, hospitality and health care. But migrants must expect delays when applying for a work permit. There are now initiatives by companies and charities to speed up the issuance of work permits to fill vacancies.

We also read. . .

SEC and crypto: The U.S. regulator’s war on digital assets would cripple the industry and stifle American innovation, writes Ethereum co-founder Joseph Lubin.
Kenya-US Relations: William Ruto, the African nation’s leader, will seek to improve ties and extend a trade deal when he meets US President Joe Biden this month, even as Russian influence grows on the continent.
War in Ukraine: With the front desperately in need of new troops, Kiev has launched a campaign asking men to choose their own unit and even their exact role.

Chart of the day

Line graph of annual volume change (%) showing signs of recovery in the World Merchandise Fair

The OECD, IMF and World Trade Organization forecast a sharp recovery in global product flows this year after a slowdown in 2023 due to higher prices, rising interest rates and weaker demand. Clare Lombardelli, chief economist at the OECD, said much of the increase was due to a “cyclical recovery” as trade increased in line with broader economic growth.

Take a break from the news

Cunard’s Queen Anne has 13 luxury floating floors and 14 restaurants and is sparkling new, writes Henry Mance. But is the $600 million entertainment palace already a relic from the era of carbon-intensive travel?