Thursday headlines include: Solar City reaching a deal for a factory in New York, former AIG CEO Benmosche saying the company handles competition from Buffett very well, troubles for Apple's new software, a big order coming soon for Lockheed Martin, and JP Morgan topping the league tables.
Solar panel company Solar City (SCTY) will build a new factory in upstate New York after striking a deal with the state on a package of incentives. The state will pay $750 million to help fund the cost of building the factory and improving infrastructure in the area, while Solar City will cover the remaining costs. The company will pay $1 plus utilities to lease the space for 10 years with an option to renew the lease after that. Solar City committed to spending $5 billion to support the region's economy over the next ten years.
American International Group
Former American International Group (AIG) CEO Robert Benmosche said in a television interview that the company that he still advises handles its competitors, including Warren Buffett's Berkshire Hathaway (BRK.A), effectively. Berkshire hired some AIG executives last year as part of a push to expand its commercial insurance business. AIG stopped signing reinsurance deals with Berkshire, seemingly in response.
Fresh from setting sales records for the iPhone 6 and iPhone 6 Plus, Apple (AAPL) is being forced to deal with issues related to the new phones and its latest software upgrade. The first, and seemingly sillier of the complaints has to do with reports that some people with the new phones, particularly the larger iPhone 6 Plus have bent the phones by sitting on them. More seriously, the company had to pull a software update, iOS 8.0.1 after some users lost cellular service after installation. The company has promised a fix for that issue as soon as possible.
South Korea is reportedly getting close to signing a deal to buy 40 Lockheed Martin Corp. (LMT) F-35 fighter jets. The $7.06 billion deal makes South Korea the tenth country to join the F-35 program. The jets will be received between 2018 and 2021.
Banking giant JP Morgan (JPM) topped the investment banking league tables for the first half of 2014, booking $11.5 billion in revenue. JP Morgan topped the rankings for fixed-income and deal advisory. Goldman Sachs (GS) and Deutsche Bank were tied for second place.