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Tag: Contracts

  • Dassault Aviation Rises After Ukraine Agrees to Buy 100 Rafale Fighter Jets

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    Ukraine agreed to buy 100 Rafale fighter jets as part of a larger military equipment deal that triggered a jump in the share price of the French aerospace and defense manufacturer Dassault Aviation AM 7.44%increase; green up pointing triangle.

    Ukrainian President Volodymyr Zelensky said Monday that he had signed a letter of intent to acquire 100 Rafale F4 fighter jets by 2035, SAMP/T air defense systems, radars, air-to-air-missiles and aerial bombs from France.

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    Cristina Gallardo

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  • Trump’s Big Tariff Task in Asia Is to Close the Deal

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    President Trump’s quest to reorder global trade through personal diplomacy will be tested during his tour of Asia this week, as he faces the tantalizing prospect of a pact with China and the chance to bust through obstacles to completing deals with other key trading partners.

    On Sunday, Trump won some momentum by winning tariff agreements with a handful of Southeast Asian nations. He also sounded an optimistic note on China ahead of a meeting with Chinese leader Xi Jinping planned for later this week. “I think we are going to come away with a deal,” Trump said Monday aboard Air Force One en route to Japan.

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    Jason Douglas

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  • Closing a Deal? Don’t Skip These Safeguards. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In any fast-paced sales environment, closing a deal is often seen as the final hurdle. But just before that contract is signed, subtle missteps can create major risks, particularly when client-requested changes go unchecked or processes aren’t followed closely.

    While these issues often appear within the sales cycle, the potential consequences span across legal, compliance, operations and finance.

    Related: Your Contracts Could Be Limiting Your Revenue Potential and Increasing Risk in Your Business. Here’s How to Take Control.

    When standard processes meet last-minute changes

    For many organizations, platforms like Salesforce have helped bring structure and consistency to deal-making. From initial outreach to signed agreement, the path is streamlined and standardized — especially in industries where contracts are carefully templated and rarely deviated from.

    But even the most carefully designed workflows can become vulnerable at the finish line.

    A common scenario: A client returns a contract with their edits incorporated, rather than marked. Buried deep in the document, a key clause has been deleted. It may seem minor. It may go unnoticed. But that single, unvetted change can alter legal responsibilities, shift liabilities or remove important protections. One word changed or omitted can carry long-term consequences.

    These kinds of last-minute revisions, particularly when delivered in a seemingly complete, clean format, present a serious risk. The issue isn’t malice; it’s momentum. At this stage, the client is often ready to get the deal done.

    That’s why the most important defense against risk isn’t about slowing down the sales team; it’s about reinforcing the systems and habits that allow them to move quickly without sacrificing accuracy.

    The power of proactive training

    Mitigating these risks starts with consistent, practical training that goes beyond product knowledge. Teams need regular reminders of where and how deals can go off track. At Associa, the world’s largest homeowners association management company, we have quarterly regional calls for our sales leaders and legal department, which are essential to create a space not only to share updates, but to talk through real-world challenges. These sessions often surface emerging trends, like new types of redlines or recurring client requests that require broader alignment.

    Our annual leadership summit adds another powerful layer of connection and alignment. Over the course of nearly a week, leaders from more than 300 branch offices and sales leaders come together in person for immersive training, open Q&A sessions and collaborative problem solving. It’s an opportunity to cover not just what’s changing, but why certain policies and processes matter. Accessibility during these events is key — salespeople need direct access to legal, finance and operations leaders who can clarify expectations and help prevent common errors.

    Related: 6 Mistakes to Avoid When Creating Client Contracts

    Standardization is your safety net

    Beyond training, standardized deal checklists are a critical tool for catching oversights. Whether responding to an RFP, hiring a vendor or onboarding a client, these checklists prompt teams to confirm legal review, double-check key sections of a contract and ensure no critical terms have been deleted or altered.

    These aren’t just administrative tools; they’re guardrails. When the pressure is on to finalize a deal, checklists force a pause for essential verifications. Did the client send back a PDF instead of a redlined Word document? Has anyone reviewed the terms that were modified? Has legal approved the final version? These questions matter — and the checklist ensures they’re answered before the deal closes.

    Standardization also removes ambiguity. When everyone uses the same process, it’s easier to spot when something is off. That consistency protects the business while enabling the sales team to move confidently.

    Cross-functional collaboration is key

    It’s also important to remember that protecting the business isn’t the job of any single team. While these risks may emerge during the final stages of a deal, they require coordinated vigilance from legal, compliance, operations and leadership alike. Sales teams shouldn’t be expected to be the final gatekeepers of every nuanced legal clause, but they should know when to flag something and who to bring in when they do.

    The most resilient organizations cultivate this kind of shared accountability. They break down silos, making it easy for team members to get answers quickly and escalate when needed. Whether through workflow automation or simple communication channels, the goal is the same: to make it easier to do the right thing than to make a mistake.

    Related: 6 Ways to Save Your Shirt

    Audit before you act

    Finally, before any changes are made to existing systems or processes, it’s essential to audit what you already have. It’s a simple principle, but one that’s often missed in the rush to improve or adjust.

    A thorough audit helps reveal weak points, whether it’s outdated templates, unclear handoff protocols, inconsistent training or information communication. In one instance, a contract signed casually over dinner — meant in good faith — lacked basic protections like defined services or pricing terms, which later led to avoidable complications. Without this step, well-intentioned updates can accidentally introduce new risks. But with it, your team can evolve your processes with confidence, building on a solid foundation rather than layering fixes on top of blind spots.

    Closing a deal is the culmination of hard work, strategy and relationship-building. But it’s also one of the most delicate moments in the business lifecycle. Without the right safeguards in place, it’s all too easy for a last-minute change to slip through unnoticed.

    By investing in recurring training, implementing standardized checklists, fostering collaboration across departments and auditing your processes before making changes, you can significantly reduce vulnerabilities and empower your teams to move quickly, confidently and in alignment with your long-term goals.

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    Jeff Carona

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  • Unbelievable facts

    Unbelievable facts

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    A 90-year-old woman signed a deal with a 47-year-old lawyer to give him her apartment upon her death…

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  • What Should Houston Texan Fans Be Rooting for in These NFL QB Contract Standoffs?

    What Should Houston Texan Fans Be Rooting for in These NFL QB Contract Standoffs?

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    The Houston Texans have lived a pretty charmed life the last couple off-seasons. In 2023, the draft brought us C.J. Stroud and Will Anderson as the future saviors of the organization, and possibly the city itself. In 2024, the Texans went ultra aggressive in free agency and in trades, and landed Stefon Diggs, Joe Mixon, and Danielle Hunter, among others.

    Along the way, there was almost no contractual drama. The one big extension handed out, which was to wide receiver Nico Collins, came with zero dark clouds or social media salvos needed. It was just your standard, quietly negotiated $72 million contract extension. The closest thing to drama the last two years has come from cornerback Steven Nelson, ever the agitator, going after Nick Caserio and DeMeco Ryans with personal insults about their attire and appearance. Needless to say, Nelson is gone.

    Someday, the Texans will have off-season drama again. All teams, even the good ones do. I might even say ESPECIALLY the good ones do. The Cowboys, Packers, and Dolphins are all good NFL teams, and all three have high drama going on with their starting quarterbacks right now, as all three signal callers are looking for massive new contract extensions.

    As we outlined last week, the average-at-best Jaguars QB, Trevor Lawrence, just secured a contract that ties for the highest average annual value in the league, at $55 million. I would submit that the three quarterbacks we were referring to above — Dak Prescott of the Cowboys, Jordan Love of the Packers, and Tua Tagovailoa of the Dolphins — are all better, more productive players than Lawrence. Prescott and Love, for sure.

    So now all three of those teams are in staring contests with their team leaders, who all likely want more than Lawrence. Let’s look at all three of these standoffs through a Texans prism. What should we be rooting  for in each of these instances?

    DAK PRESCOTT, Dallas Cowboys
    Prescott is in the final season of a long term contract he signed a few seasons ago, and sits on the books right now as a $55 million cap hit. This is on a team that also wants to give big deals to WR Cede Lamb and LB Micah Parsons this offseason. The worst thing for the rest of the league would be for Prescott to hit free agency next spring, because the ceiling for QB salaries would skyrocket, likely past $60 million per year, if there were a bidding war. With C.J. Stroud eligible for an extension in a couple seasons, the lower the highest salary stays, the better. So root for the Cowboys and Prescott to agree to a long term deal this offseason at slightly more than Lawrence is making, maybe $56 million or $57 million per year.

    JORDAN LOVE, Green Bay Packers
    Love is also in line for a big pay day, after waiting three seasons behind Aaron Rodgers, and in his first season as a starter, nearly knocking off the 49ers in the divisional round of the playoffs. Here’s the wrinkle with Love — his agent is David Mulugheta, who famously helped Deshaun Watson exit Houston and get a record setting amount of guaranteed money from the Browns. Mulugheta is also Stroud’s agent. Thus, I am hoping that Love lands a lucrative, but team friendly that allows the Packers to sign some of his teammates to big deals. That would show me Mulugheta is okay having a client who doesn’t push for top money, but instead prioritizes winning, like we hope C.J. Stroud does in two seasons.

    TUA TAGOVAILOA, Miami Dolphins
    Go on social media and search “Tua contract” and what you’ll find out is that the Dolphins, at least as of right now, have zero desire to pay him at the Trevor Lawrence/Joe Burrow level of $55 million per year. Tagovailoa has been very vocal about how the lack of a new deal is affecting him mentally right now, so here’s what I am hoping for, from a Texans perspective — I’m hoping that Tagovailoa gets no new deal, that he becomes a basket case worrying about it, and that he throws four picks against the Texans in Week 15 at NRG Stadium.

    Listen to Sean Pendergast on SportsRadio 610 from 6 a.m. to 10 a.m. weekdays. Also, follow him on Twitter at twitter.com/SeanTPendergast, on Instagram at instagram.com/sean.pendergast, and like him on Facebook at facebook.com/SeanTPendergast.

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    Sean Pendergast

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  • Boeing’s financials won’t be hurt by latest 737 Max issues, analysts say. The company’s size is one reason.

    Boeing’s financials won’t be hurt by latest 737 Max issues, analysts say. The company’s size is one reason.

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    Alaska Airlines, United Airlines and Turkish Airlines have all grounded their Boeing 737 Max 9 airplanes after part of one such jet tore away during an Alaska Airlines flight on Friday. But despite the potential safety risks for travelers and further damage to Boeing’s
    BA,
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    reputation, some Wall Street analysts, for now, have downplayed the financial impact for the jet maker.

    In part, they pointed to the company’s status as one of two major players in aircraft production — the other being Airbus
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    .
    They also cited a tighter supply of available aircraft and limited near-term impact, at least while investigators try to figure out the cause of the incident.

    Those airlines and others took the action over the weekend after a panel on a jet blew out about 10 minutes into Alaska Airlines Flight 1282 at an altitude of about 16,000 feet.

    No one died in the incident. But the Federal Aviation Administration ordered the temporary grounding of certain Boeing 737 Max 9 aircraft. The order covered 171 planes.

    Shares of Boeing fell 8.2% as the stock weighed on the Dow Jones Industrial Average
    DJIA.

    Still, some Wall Street analysts on Monday said to buy the stock anyway. They said the latest difficulties with the aircraft — which follow the 2019 grounding of Max jets by many nations following two fatal crashes — were unlikely to have a big near-term financial impact.

    BofA analysts, in a research note dated Sunday, said that “at this point in time, due to the duopoly nature of the industry, we do not see this impacting orders for any of the 737 MAX variants. However, if the hits to the program do keep coming … at some point, the flying public may lose confidence in the 737 MAX which could ultimately impact sales.”

    The analysts said it wasn’t clear yet whether the blowout on Friday was due to an assembly mistake at Boeing, an improper installation from fuselage maker Spirit AeroSystems or oversight issues elsewhere. But they noted that the aircraft was relatively new, having been delivered on Oct. 31. And they said that “some scrutiny must be saved for regulators as well, as the FAA is ultimately responsible for certificating these aircraft before delivery.”

    Spirit AeroSystems’ stock
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    -11.13%

    was down 11%.

    Analysts at William Blair also said they didn’t expect a big hit to Boeing’s financials.

    “While the Alaska Airlines door plug accident was terrifying, we do not believe that it will have a major financial impact, unless another incident occurs after the aircraft returns to service,” they said in a note on Monday.

    Analysts there estimated that over the past two months, the Max 9 made up less than one-fifth of Boeing’s total deliveries. They said those deliveries would only be “modestly impacted over the first quarter as it could take some time to determine the cause.”

    Of the 23 analyst ratings on Boeing’s stock tracked by FactSet, 18 are buy ratings or the equivalent.

    Read more: How Boeing’s latest 737 Max problem is hurting the Dow

    However, Morgan Stanley analyst Ravi Shanker said the 737 Max 9 issues will likely disrupt first-quarter results for United Airlines
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    and Alaska Air
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    .

    “This will hopefully be a situation resolved in days/weeks rather than months, but it will also serve as a reminder of how fragile airline capacity can be despite the overhang of capacity,” Shanker said in a Monday research note.

    United Airlines’ stock rose 2.4% on Monday, while Alaska Air’s dipped by 0.3%.

    Along with United Airlines, Alaska Airlines and Turkish Airlines, Copa Airlines and Aeromexico grounded about 40 Boeing 737 Max 9 planes, according to reports.

    According to Deutsche Bank analysts, the affected fleet accounts for 16.1% of Alaska Airlines flights and 6.6% of United flights, although United has more 737 Max 9 aircraft than Alaska.

    Other airlines with the plane in their fleet include Jet Airways of India with one plane, Jin Air of Korea with three, KLM Royal Dutch Airlines
    KLMR,

    with five and Korean Air Lines
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    -1.52%

    with nine, according to Planespotter.net.

    European regulators also grounded the 737 Max 9 for inspection.

    Some major airlines do not have any 737 Max 9s in their fleets, including American Airlines
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    ,
    Southwest Airlines
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    and Air Canada
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    ,
    according to reports.

    Also read: Shares in Boeing slump, supplier Spirit AeroSystems tanks, after panel blows out

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  • Don’t Use AI to Write Cannabis Contracts – Cannabis Business Executive – Cannabis and Marijuana industry news

    Don’t Use AI to Write Cannabis Contracts – Cannabis Business Executive – Cannabis and Marijuana industry news

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    Don’t Use AI to Write Cannabis Contracts – Cannabis Business Executive – Cannabis and Marijuana industry news





























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  • College Coach Gets Staggering Amount of Money After Being Fired | Entrepreneur

    College Coach Gets Staggering Amount of Money After Being Fired | Entrepreneur

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    Texas A&M sacked head football coach Jimbo Fisher last Sunday, but not before buying out his contract for a stunning $76 million. The decision is part of a shocking turn of events that’s shaken the sports world.

    “Although this is a major, major financial decision that comes with many consequences, we have a plan, and we will not let this impact the performance or the culture of our entire athletics program,” said Texas A&M athletics director Ross Bjork.

    Related: Colorado’s Football Team Was Robbed at the Rose Bowl, and Coach Deion Sanders Wants Reimbursement

    High hopes come crashing down

    Fisher took over at Texas A&M in 2018, signing a 10-year contract through the 2031 season. He started his tenure successfully, leading the team to three bowl games, including an Orange Bowl win in 2020. But since then, the team’s fortunes have fumbled, leaving management no choice but to let Coach Fisher go.

    Big buyout

    Luckily for Fisher, his contract included a substantial buyout clause, and now the university owes him a stunning sum. According to The Associated Press, Fisher is owed between $75 and $77 million, making it the largest known buyout ever given to a fired head coach. This hefty amount will be paid to Fisher regardless of whether he finds a new coaching job.

    Bjork said $19 million (25% of his salary) is due within 60 days. The remaining balance will be paid in several installments, with the first installment of approximately $7 million due within 120 days.

    To fund these payments, the university plans to use unrestricted contributions within the 12th Man Foundation (a Texas A&M scholarship program) for the first one-time payment. The remaining portion will be financed from growing revenues and adjusting the annual operating budget of the athletic department.

    Forward progress

    Bjork says the school has learned from Fisher’s contract and that their decision will not impact the overall performance or culture of the athletics program.

    “We were stuck… something was not working to reach our full potential,” Bjork said. “We should be relevant on the national scene.”

    Texas A&M beat Mississippi State 51-10 on Saturday, but Fisher’s dismissal was based on the overall record of the football program over the past several years. Fisher was 45-25 in six seasons at Texas A&M.

    As the Texas A&M football moves forward, the university hopes the decision to fire Fisher will turn the program around. But the financial repercussions of his contract will be felt for years to come.

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    Jonathan Small

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  • Five Reasons Written Contracts Beat Handshake Deals – Cannabis Business Executive – Cannabis and Marijuana industry news

    Five Reasons Written Contracts Beat Handshake Deals – Cannabis Business Executive – Cannabis and Marijuana industry news

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    Rob Meagher

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  • WSJ News Exclusive | UAW Expands Strike With GM After Reaching Tentative Agreement With Stellantis

    WSJ News Exclusive | UAW Expands Strike With GM After Reaching Tentative Agreement With Stellantis

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    Updated Oct. 28, 2023 10:03 pm ET

    The United Auto Workers called a fresh strike at a General Motors factory in Tennessee, a surprise walkout after negotiators had been working nearly around the clock to finalize a new contract this weekend.

    Workers at GM’s factory in Spring Hill, Tenn., were ordered to go on strike Saturday evening, according to people with knowledge of the union’s plans. The strike came just as the UAW confirmed that it reached a tentative agreement with Chrysler parent Stellantis on a new labor contract.

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  • Hollywood writers strike declared over after boards approve new contract with studios

    Hollywood writers strike declared over after boards approve new contract with studios

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    LOS ANGELES — Leaders of the screenwriters union declared their nearly five-month-old strike over Tuesday after board members approved a contract agreement with studios, bringing Hollywood at least partly back from a historic halt in production.

    The governing boards of the eastern and western branches of the Writers Guild of America and their joint negotiating committee all voted to accept the deal, two days after the tentative agreement was reached with a coalition of Hollywood’s biggest studios, streaming services and production companies. After the vote they declared that the strike would be over and writers would be free to start on scripts at 12:01 a.m. Wednesday.

    Late-night talk shows — the first to go dark when writers walked out on May 2 — are likely the first shows that will resume. Scripted shows will take longer to return, with actors still on strike and no negotiations yet on the horizon.

    The writers still have to vote to ratify the contract themselves in early October, but lifting the strike will allow them to work during that process, the guild told members in an email.

    After Tuesday’s board votes, the contracts were released for the first time to the writers, who had not yet been given any details on the deal, which their leaders called “exceptional.”

    The three-year agreement includes significant wins in the main areas writers had fought for — compensation, length of employment, size of staffs and control of artificial intelligence — matching or nearly equaling what they had sought at the outset of the strike.

    The union had sought minimum increases in pay and future residual earnings from shows of between 5% and 6%, depending on the position of the writer. The studios had wanted between 2% and 4%. The compromise deal was a raise of between 3.5% and 5%.

    The guild also negotiated new residual payments based on the popularity of streaming shows, where writers will get bonuses for being a part of the most popular shows on Netflix
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    Max and other services, a proposal studios initially rejected. Many writers on picket lines had complained that they weren’t properly paid for helping create heavily watched properties.

    The writers also got the requirement they sought that shows intended to run at least 13 episodes will have at least six writers on staff, with the numbers shifting based on the number of episodes. They did not get their desire for guaranteed staffs of six on shows that had not yet been ordered to series, settling instead for a guaranteed three.

    Writers also got a guarantee that staffs on shows in initial development will be employed for at least 10 weeks, and that staffs on shows that go to air will be employed for three weeks per episode.

    On artificial intelligence, the writers got the regulation and control of the emerging technology they had sought. Under the contract, raw, AI-generated storylines will not be regarded as “literary material” — a term in their contracts for scripts and other story forms a screenwriter produces. This means they won’t be competing with computers for screen credits. Nor will AI-generated stories be considered “source” material, their contractual language for the novels, video games or other works that writers may adapt into scripts.

    Writers have the right under the deal to use AI in their process if the company they are working for agrees and other conditions are met. But companies cannot require a writer to use AI.

    Still-striking members of the Screen Actors Guild-American Federation of Television and Radio Artists returned to the picket lines earlier Tuesday for the first time since the writers struck their tentative deal, and they were animated by a new spirit of optimism.

    “For a hot second, I really thought that this was going to go on until next year,” said Marissa Cuevas, an actor who has appeared on the TV series “Kung Fu” and “The Big Bang Theory.” “Knowing that at least one of us has gotten a good deal gives a lot of hope that we will also get a good deal.”

    Writers’ picket lines had been suspended, but they were encouraged to walk in solidarity with actors, and many were on the lines Tuesday, including “Mad Men” creator Matthew Weiner, who picketed alongside friend and “ER” actor Noah Wyle as he has throughout the strikes.

    “We would never have had the leverage we had if SAG had not gone out,” Weiner said. “They were very brave to do it.”

    The Alliance of Motion Picture and Television Producers, which represents the studios in negotiations, chose to deal with the longer-striking writers first, and leaders of SAG-AFTRA said they had received no overtures on resuming talks. That’s likely to change soon.

    Actors also voted to authorize their leadership to potentially expand their walkout to  include the lucrative videogame market, a step that could put new pressure on Hollywood studios to make a deal with the performers who provide voices and stunts for games.

    The Screen Actors Guild-American Federation of Radio and Television Artists announced the move late Monday, saying that 98% of its members voted to go on strike against videogame companies if ongoing negotiations are not successful. The announcement came ahead of more talks planned for Tuesday.

    Acting in videogames can include a variety of roles, from voice performances to motion capture work as well as stunts. Video game actors went on strike in 2016 in a work stoppage that lasted nearly a year.

    Some of the same issues are at play in the video game negotiations as in the broader actors strike that has shut down Hollywood for months, including wages, safety measures and protections on the use of artificial intelligence. The companies involved include gaming giants Activision Blizzard
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    Electronic Arts
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    ,
    Epic Games, Take 2 Productions
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    as well as Disney
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    and Warner Bros.′
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    videogame divisions.

    “It’s time for the videogame companies to stop playing games and get serious about reaching an agreement on this contract,” SAG-AFTRA President Fran Drescher said in a statement.

    Audrey Cooling, a spokesperson for videogame producers, said they are “continuing to negotiate in good faith” and have reached tentative agreements on more than half of the proposals on the table.

    So far this year, U.S. consumers have spent $34.9 billion on videogames, consoles and accessories, according to market research group Circana.

    The threat of a videogame strike emerged as Hollywood writers were on the verge of getting back to work after months on the picket lines.

    The alliance of studios, streaming services and producers has chosen to negotiate only with the writers so far, and has made no overtures yet toward restarting talks with SAG-AFTRA. That will presumably change soon.

    SAG-AFTRA leaders have said they will look closely at the writers’ agreement, which includes many of the same issues, but it will not effect their demands.

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  • Durable-goods orders rise for third month in a row — if Boeing is taken out of the equation

    Durable-goods orders rise for third month in a row — if Boeing is taken out of the equation

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    The numbers: Orders for long-lasting goods rose in July for the third month in a row if recent ups and downs at Boeing are set aside, suggesting the struggling industrial side of the U.S. economy may have stabilized.

    Durable-goods orders increased 0.5% in July if transportation — automobiles and planes — are excluded. Boeing
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    orders often seesaw in the summer months and distort the true condition of U.S. manufacturing.

    Headline orders, which include transportation, sank by 5.2% last month, the government said Thursday.

    Economists polled by the Wall Street Journal had forecast a 4.1% drop in July following a 4.4% spike in June. The topsy-turvy results in the past two months are almost entirely due to Boeing.

    A better measure of the health of U.S. manufacturing, known as core orders, edged up 0.1% in July. That figure omits defense and transportation and is a proxy for broader business investment.

    Business investment is running slightly ahead of last year’s pace, but it has weakened considerably, and many manufacturers are treading water.

    Key details: Orders for commercial planes soared 71% in June and sank 44% in July, explaining the wildly divergent headline numbers in the past two months.

    Orders for new cars rose 0.8% in July.

    The transportation segment is a large and volatile category that often exaggerates the ups and downs in manufacturing.

    Outside the transportation sector, new orders rose in most major categories.

    Business investment has tapered off since last year, however, and companies have become more cautious in the face of rising interest rates, still-high inflation and a shift in consumer spending toward services.

    Durable goods are items like planes, cars, appliances and computers. Orders rise in an expanding economy and shrink in a contracting one.

    Big picture: Maybe the industrial side of the economy has hit bottom, and maybe it hasn’t. Getting a clear picture might have to wait until interest rates stop rising.

    Higher borrowing costs typically stunt the economy and discourage businesses from hiring, spending and investing.

    Looking ahead: “Businesses are showing caution amidst the higher rate environment and what it means for demand down the line,” said economist Ali Jaffery at CIBC Economics.

    Market reaction: The Dow Jones Industrial Average
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    +0.28%

    and S&P 500
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    +0.24%

    were set to open mixed in Thursday trades.

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  • UK Economy Contracted in May as Industry Feels Pain

    UK Economy Contracted in May as Industry Feels Pain

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    By Ed Frankl

    The U.K. economy contracted in May as industrial output slid on month, a signal that rising interest rates are weighing on economic activity.

    The country’s gross domestic product declined 0.1% on month in May, from a 0.2% growth in April, data from the Office for National Statistics showed Thursday.

    The reading was a little better than expectations in a poll of economists by The Wall Street Journal, which expected a 0.2% fall.

    The decline was driven by industrial production falling 0.6% in May, weaker than the fall of 0.2% in April, with the construction sector falling 0.2% in May, while services-sector output flatlined in the month, according to the data.

    The U.K. registered no growth in GDP in the three months to May, when compared with the three months to February, with monthly GDP now estimated to be 0.2% above prepandemic levels in February 2020, the ONS said.

    Write to Ed Frankl at edward.frankl@wsj.com

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  • Emojis Can Act as a Digital Signature in Contract, Judge Says | Entrepreneur

    Emojis Can Act as a Digital Signature in Contract, Judge Says | Entrepreneur

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    In the ever-changing digital world, sealing a contract is now up to interpretation.

    In June, a Canadian judge ruled that a “thumbs-up” emoji can be used and interpreted as a binding agreement after a grain buyer sued a farmer over not being sent goods previously agreed upon via emoji.

    When Saskatchewan, Canada farmer Chris Achter sent a “thumbs-up” emoji to grain buyer Kent Mickleborough after he texted a contract regarding the purchase of 87 metric tons of flax, the two had different ideas of what Achter’s emoticon meant, per USA Today.

    When Achter failed to send the flax, Mickleborough filed a lawsuit against him, arguing that he believed Achter’s thumbs-up was him sealing the agreement as Mickleborough’s text message included a picture of the contract (which Mickleborough had already signed) and a message that stated: “Please confirm flax contract.”

    As for Achter, he considered the thumbs-up to be a mere signal that he had received the document, but was not officially agreeing to the contract.

    “I deny that he accepted the thumbs-up emoji as a digital signature of the incomplete contract,” Achter said in the deposition. “I did not have time to review the Flax Contract and merely wanted to indicate that I did receive his text message.”

    Related: Twitter’s PR Department Is Now Automatically Replying With a Poop Emoji

    Nonetheless, Judge T.J. Keene of the Court of King’s Bench in Swift Current, Saskatchewan ruled in favor of Mickleborough and ordered Achter to pay him $82,200 in Canadian dollars ($61,000 USD), as the price of flax at the time was $41 per bushel.

    “This court readily acknowledges that [thumbs-up emoji] is a non-traditional means to “sign” a document but nevertheless under these circumstances this was a valid way to convey the two purposes of a “signature”….and Achter’s acceptance of the flax contract,” Keene ruled in June.

    While Keene agreed that the case was “novel,” he ultimately stated that amid the growing use of technology, the court of law will similarly have to evolve alongside the digital world.

    “I agree that this case is novel (at least in Saskatchewan) but nevertheless this Court cannot (nor should it) attempt to stem the tide of technology and common usage – this appears to be the new reality in Canadian society and courts will have to be ready to meet the new challenges that may arise from the use of emojis and the like,” Keen said.

    Although not every emoji means you’re bound to a contract sent via text message, much of this decision hinged on the pretense of Achter and Mickleborough’s business relationship. Having worked together since 2015, this was not the first digital contract sent between the two, and Achter had formerly responded with similarly short responses such as “looks good”, “ok” or “yup” before ultimately sending the goods.

    So, if you’re doing business, whether over the phone, computer, or in person, it’s always safe to confirm the terms of the agreement before assuming all parties are on the same page. While texting can make things faster, good old fashioned communication (or actual signatures) never hurts.

    Related: The FTC Is Proposing Banning Non-Compete Agreements

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    Madeline Garfinkle

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  • $14 Billion Deal to Create Mega-Pipeline Company

    $14 Billion Deal to Create Mega-Pipeline Company

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    $14 Billion Deal to Create Mega-Pipeline Company

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  • How to Power Up Negotiations with Credible Data | Entrepreneur

    How to Power Up Negotiations with Credible Data | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Negotiation is an essential skill for entrepreneurs in creating business relationships that provide value for each party and position you for growth. At its core, negotiating is about reaching terms that create a balance that meets the needs of both parties.

    Achieving that balance is a natural struggle as both sides push to secure the best deal. Market and performance data and insight give you the leverage to ensure a fair and favorable outcome.

    In this article, we’ll examine why data is the foundation that supports a strong negotiating position, how to employ the data, and how to leverage tech and advisors to collect, analyze and present insights.

    Related: The Art of Negotiation is Misunderstood. Here Are Some Lesser-Known Tactics I Use to Win.

    Data is vital to supporting your position

    Negotiating is a challenging endeavor. It requires a specialized skill set and experience. And in a tough economy where inflation is high, liquidity is low and supply and demand are in flux, it’s more difficult to find terms all parties to a deal (of nearly any type) will accept. You have to work smart to get the terms that will position your business to succeed while satisfying the other party’s expectations.

    Some deals fail to produce optimal outcomes when one or both parties don’t have a clear picture of the economic and operating environment. Developing that sight (e.g. situational awareness) by collecting and presenting relevant data boosts each party’s confidence in the terms they can feasibly accept.

    Moreover, pursuing a data-backed negotiation strategy ensures you’re making the best decision going into the transaction or agreement and that you know your financial and operational situation — and the criteria for a deal that won’t sink your ship.

    What types of data should you collect? Some essential categories include:

    • Macro, regional and niche market demand and supply indicators.
    • Personal and organizational financials.
    • Pro forma financial statements (revenue and expense projections).
    • Asset, service and corporate performance benchmarks.

    Related: 5 Steps to Master the Art of Negotiation

    How to leverage data in negotiations

    In what types of negotiation is data valuable?

    For nearly all forms, but most commonly for entrepreneurs in the process of:

    • Swaying investors and partners — raising capital.
    • Leasing or buying operating space and equipment.
    • Selling and securing products or services.
    • Contracting with suppliers/vendors.
    • Hiring staff — presenting employment offers.

    How can we use this data in negotiations?

    Most importantly, leveraging data in the negotiating process helps demonstrate the upside for both parties to the agreement. Even when the agreed terms aren’t ideal or what they were expecting, if they feel the outcome will improve their position and they got the best deal for the circumstances, a contract is more likely.

    A crucial role of data in negotiations is supporting bidding and asking value/prices. Market data and performance metrics can demonstrate a sector’s demand and supply factors and relationships. Even if the numbers don’t work in your favor, they ensure all parties are comfortable with the terms. If the price or terms are contentious, comparable analyses based on market pricing and sales data can validate or encourage a reevaluation of pricing.

    Related: A Negotiation Expert Shares Tactics from Elon Musk’s Twitter Deal Every Entrepreneur Should Know

    Objective data provide evidence of feasibility for your proposal and the stated objective. The perceived viability of your venture is fundamental when raising capital and pitching investors. Providing data that supports your market assumptions and projections, including demand fundamentals and market growth, makes your pitch more credible and facilitates investors’ due diligence processes.

    Performance metrics pertaining to your assets, products, companies or units highlight your core competencies and illustrate your track record. Important data points include revenue, relative profit among offerings, expense ratios and numerous other KPIs.

    Presenting these data points and insights in a polished and upfront manner lets your potential stakeholders know you’re serious, organized and equipped.

    Related: 4 Things to Do When You’re in a Negotiation

    Leveraging tech and advisors to source, organize, interpret and report the data

    The data and analyses presented are only as credible as the sources, methods, tools and analysts contributing to their aggregation and preparation. Incomplete, inaccurate or irrelevant data will undermine a deal as fast as a sinking foundation.

    Therefore, a business or entrepreneur must have the systems, time and expertise to assemble and interpret the data.

    To accomplish this, build an integrative strategy comprising data management technology and an internal or external team of analysts and advisors.

    Data management and analysis systems, of which there are industry-specific solutions for most sectors, enable entrepreneurs to collect performance and market data continuously and automatically. The results are valid and timely insights available when they’re needed to formulate terms and evaluate counteroffers.

    When time is of the essence, the best opportunities go to those who are prepared and ready to act with assurance. If your core competencies( e.g. your strengths or personal value proposition) aren’t in data research and analysis, there’s an opportunity to build an in-house and outside team of experts to bridge the knowledge and experience gap.

    Additionally, respected team members enhance your organization’s credibility and capabilities.

    Related: Make Your Next Negotiation a ‘Win-Win.’ 3 Tips for How to Do That.

    Fair and fruitful

    Introducing quality data and analyses into negotiations gives credibility to assertions and projections and validates any offers, proposals and ventures.

    When offers and counteroffers are supported by objective data that illustrates why the proposed terms are fair and provide the most upside to both parties, reaching an agreement and forming a fruitful business relationship are simpler and more likely.

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    Robert Finlay

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  • GM Lays Off Hundreds From Product Development in Latest Cost-Cutting Move

    GM Lays Off Hundreds From Product Development in Latest Cost-Cutting Move

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    GM Lays Off Hundreds From Product Development in Latest Cost-Cutting Move

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  • New York Empire State factory gauge drops sharply in January signaling deep contraction in activity

    New York Empire State factory gauge drops sharply in January signaling deep contraction in activity

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    The numbers: The New York Fed’s Empire State business conditions index, a gauge of manufacturing activity in the state, tumbled 21.7 points to negative 32.9 in January, the regional Fed bank said Tuesday. 

    This is the lowest level since the worst of the pandemic in May 2020 and among the lowest levels in the survey’s history, the regional Fed bank said.

    Economists had expected a reading of negative 7, according to a survey by The Wall Street Journal.

    Any reading below zero indicates contraction.

    Key details: The new orders index fell 27.5 points to negative 31.1 in January. Shipments fell 27.7 points to negative 22.4.

    The indexes for prices paid and prices received moved lower.

    The employment gauges were also weak.

    Firms expect little improvement in coming months, with the futures index at 8.

    Big picture: The Federal Reserve’s steady increase in interest rates is having a slowing impact on capital spending as firms are scaling back investment, economists said. Demand for goods is also slowing after two strong years on the weak global economy. Added to the mix is the strong dollar which makes U.S. exports more expensive.

    The market pays attention to the Empire State index because it is seen as a early read on the national ISM manufacturing index to be released early next month.

    The ISM factory index contracted in December for the second straight month, falling to 48.4% from 49% in the prior month.

    Looking ahead: “Manufacturing conditions in the U.S. are deteriorating and the worst is likely ahead,” said Gurleen Chadha, economist at Oxford Economics.

    Market reaction: U.S. stocks
    DJIA,
    -1.14%

    SPX,
    -0.20%

    opened lower on Tuesday. The yield on the 10-year Treasury note
    TMUBMUSD10Y,
    3.489%

    retreated to 3.51% after reaching 3.57% in early morning trading.

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  • Aaron Judge signs $360 million deal with Yankees — at $40 million a year, he’ll be the highest paid position player in MLB

    Aaron Judge signs $360 million deal with Yankees — at $40 million a year, he’ll be the highest paid position player in MLB

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    Aaron Judge has agreed to return to the New York Yankees on a $360 million, nine-year contract, according to Tuesday reports from the MLB Network and Fox.

    Judge will make $40 million per season on his new deal with the Yankees, the highest average annual payout for a position player in MLB history. The new deal is the third largest overall contract in MLB history in total value, only behind Mike Trout’s $426.5 million deal with the Los Angeles Angels and Mookie Betts’ $365 million deal with the Los Angeles Dodgers.

    See also: Athletes like Tom Brady and Odell Beckham took crypto as compensation. As of now, that’s backfiring.

    Judge, 30, turned down a seven-year, $213.5 million extension from the Yankees before this season, according to Yankees President Brian Cashman, in hopes of earning more in free agency. He appears to have done that with this agreement.

    Judge is coming off his best season as a professional after winning the American League MVP award and leading the Yankees to a division title. While an MVP award is usually a telltale sign that a player just had a special season, it was actually even more magical than that.

    See also: Dropping Aaron Judge’s 61st home-run ball might have cost this fan $250,000 or more

    Judge broke the American League home-run record of 61, set by Roger Maris in 1961, when he hit 62 home runs last season. The only players in history who have hit more than 61 home runs in a single season played in the National League — and they have been linked to steroid use.

    Before his new reported deal, in his seven seasons as a big leaguer, Judge has earned a total of just $36 million from his contracts, according to Spotrac, for a career average annual salary of $5.14 million, not appreciably higher than the game’s current average of $4.4 million. He was the 54th highest paid player in the MLB last season at $19 million.

    See also: Cristiano Ronaldo will reportedly join Saudi club Al-Nassr for historic $210 million per season

    Judge, was selected by New York in the first round of the 2013 MLB draft and made his big league debut in 2016.

    The Associated Press contributed to this article.

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  • Eurozone economic activity contracted for fifth straight month in November, PMIs signal

    Eurozone economic activity contracted for fifth straight month in November, PMIs signal

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    November saw business activity fall across the eurozone for the fifth consecutive month, adding to fears of a recession, the latest flash purchasing managers indexes showed.

    The S&P Global eurozone composite PMI rose to 47.8 in November from 47.3 in October, according to the preliminary reading. This is above the forecast of 47.0 of economists polled by The Wall Street Journal.

    “The PMI data for the fourth quarter so far put the eurozone economy on course for its steepest quarterly contraction since late-2012, excluding pandemic lockdown months,” S&P Global said in the report.

    Manufacturing continued to lead the downturn, with factory output dropping for a sixth consecutive month, although the rate of decline eased, the report said. Service sector output also fell, down for the fourth consecutive month.

    The November PMI data also bring some tentative good news, Chris Williamson, chief business economist at S&P Global Market Intelligence, said. The economist pointed out that the overall rate of decline has eased compared to October thanks to some easing in supply constraints and the warm weather easing fears regarding energy shortages.

    Price pressures are showing signs of cooling, which should contain inflation. However, both manufacturing and services sectors are still under severe pressure, the economist said in the report.

    “A recession therefore looks likely, though the latest data provide hope that the scale of the downturn may not be as severe as previously feared,” Mr. Williamson said.

    Write to Maria Martinez at maria.martinez@wsj.com

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