Boeing Faces Fraud Charges Over Fatal Crashes

The Justice Department will charge Boeing with fraud due to two deadly 737 Max plane crashes in 2018 and 2019. These crashes killed 346 people.

Boeing must decide by the end of the week to plead guilty or face trial. A plea deal would involve appointing a monitor to oversee Boeing’s compliance

Boeing paid a $243 million fine in 2021 but avoided criminal charges under an agreement. Investigations found Boeing failed to meet the required anti-fraud standards.

The plea deal includes a $487.2 million penalty and three years probation with independent audits. Boeing could lose its status as a federal contractor if convicted, affecting Pentagon and NASA contracts.

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US Manufacturing Continued Struggles

In June, the Purchase Manager's Index (PMI) fell to 48.5, marking the third straight month of contraction. The price index for inputs hit a six-month low, suggesting easing inflation pressures.

The new orders sub-index rose slightly to 49.3, but production dropped to 48.5. Employment in manufacturing also decreased.

Construction spending fell by 0.1% in May. Both residential and non-residential construction saw declines due to financing issues and high borrowing costs.

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Supreme Court Sidesteps Social Media Censorship

The Supreme Court avoided making a final decision on laws from Florida and Texas targeting social media censorship. The justices returned the cases to lower courts for further analysis.

These laws aim to limit the ability of social media platforms to moderate content. Florida's law stops platforms from banning political candidates. Texas' law prevents censorship based on viewpoints.

Tech companies challenged these laws, arguing they violate the First Amendment. Lower courts had conflicting rulings: one struck down Florida's law, another upheld Texas' law.

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Silicon Valley's AI Military

China is rapidly developing military AI. The US is playing catchup. Between 2022 and 2023, the US military tripled its AI spending. The Replicator initiative aims to deploy thousands of autonomous systems quickly.

Silicon Valley’s tech companies, backed by venture capital, are increasingly open to defense projects. For example, Anduril Industries focuses on defense tech, securing significant DoD contracts.

The path to autonomous drones and tanks aims to reduce civilian casualties and collateral damage. If the Pentagon fails to turn small contracts into major deals, Silicon Valley’s interest might wane.

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