New England states win federal grants for heat pumps

FAST FOOD

McDonald’s Extends $5 Meal Deal

Most of McDonald’s Corp.’s U.S. restaurants will extend the burger chain’s $5 meal deal in an effort to appeal to budget-conscious diners. About 93 percent of McDonald’s locations have committed to selling the bundle beyond the initial four-week period that began June 25, according to a memo seen by Bloomberg News. The timelines will vary by country, with some locations planning to keep it available through August. Early results indicate the meal deal is “achieving the goal of bringing guests back to our restaurants,” McDonald’s said in a statement signed by Tariq Hassan, chief marketing officer, and Myra Doria, national field president. “Increasing guest volume ultimately drives our business forward and is key to continued growth,” they added. McDonald’s plans to bolster its “affordability plans for the remainder of the year,” the memo said, including the option to extend the current meal deal for an even longer period. It is also looking at longer opening hours to capture demand during off-peak times. — BLOOMBERG NEWS

CAR INDUSTRY

Porsche slows electric car sales

Porsche AG is ditching its electric vehicle sales ambitions amid slower-than-expected momentum for plug-in models in Europe and China. While electric vehicles could account for more than 80 percent of Porsche’s new vehicle sales by 2030, that is no longer the company’s concrete goal, the Volkswagen AG-controlled automaker said Monday. “The transition to electric vehicles will take longer than we assumed five years ago,” Porsche said in a statement. Sales will depend on demand and how electric vehicles develop globally, it said. Automakers including Mercedes-Benz, GM and even Tesla have scaled back their electric vehicle ambitions as demand has failed to meet expectations. German manufacturers are particularly exposed to China, where a slowing economy is weighing on purchasing and local drivers are drawn to cheaper, locally produced electric vehicles. Luxury electric models have not sold well in the largest auto market. — BLOOMBERG NEWS

AVIATION

On the first day of a major air show, Boeing sells $12 billion worth of planes

Boeing Co. dominated the first day of deal-making at the Farnborough International Airshow, closing an estimated $12.6 billion in aircraft sales at the airline industry’s biggest event of the year. As expected, widebody jets took center stage at the venue just outside London, after airlines emerging from COVID-19 disruptions last year were stocked with narrowbody planes. Korean Air Lines Co. led the way for Boeing on Monday with an order for 20 777-9 and 20 787-10 Dreamliner jets, plus options for 10 more of the largest 787 variant. Boeing, whose outgoing CEO Dave Calhoun is not attending, has scaled back its presence at Farnborough, a major event that alternates with Paris each year, as the company focuses on addressing production quality issues that have mired the business in crisis for months. Still, the US planemaker came away with a series of new deals that underlined its long-standing lead over Airbus SE in the largest and most expensive aircraft market. In total, Boeing’s Monday purchase amounted to 78 planes, including 56 firm orders and 22 options, while its European rival signed a deal for 20 twin-aisle A330s. — BLOOMBERG NEWS

STOCK TRADING

Crowdstrike’s very bad day was very good for short sellers

Short sellers who bet against CrowdStrike Holdings Inc. were rewarded Friday when a botched software update at the company caused a global IT outage and sent the stock tumbling to its worst day since November 2022. The contrarian group reaped $461 million in paper profits from the cybersecurity software company’s 11 percent decline, according to data from S3 Partners LLC. The selloff was enough to give CrowdStrike short sellers a profit so far this year. The company’s shares fell as much as 13 percent on Monday, adding further to the cohorts’ mark-to-market gains. Total short interest in the systems software sector — or the dollar amount of bets that the stock will fall — has risen by nearly $12 billion so far this year, according to S3 data. More than $7 billion of that amount is from increased short selling, while the rest is due to the mark-to-market increase in the value of shorted shares. CrowdStrike has seen the second-largest increase in short selling in the sector this year, behind giant Microsoft Corp. Multiple analysts covering the company downgraded their ratings and slashed their price targets over the weekend, adding further pressure on the stock on Monday. Despite the global IT crisis, Wall Street remains largely bullish on the company, which has 41 buy ratings, eight hold ratings and two sell ratings. Analysts’ average price target of around $390 per share represents an upside of more than 40 percent from where the stock currently trades. CrowdStrike shares are still up about 7 percent this year, even after the sell-off. — BLOOMBERG NEWS

FINANCIAL

Ukraine reaches deal to restructure $20 billion in debt

Ukraine reached an agreement in principle with some of its private creditors to restructure more than $20 billion in international debt, in a move that will help the country finance its fight against Russia. The country’s debt was trading at a two-year high, reflecting investor optimism that the initial agreement will receive a final green light from stakeholders. The bondholders’ committee accepted nominal losses of 37 percent of their holdings across 13 bonds, giving up $8.67 billion in claims, according to a statement of the terms of the agreement. Ukraine expects to save $11.4 billion over the next three years through a combination of lower coupons and maturity extensions. The agreement in principle was reached with the creditors’ committee, which includes Amundi SA, BlackRock Inc. and Amia Capital LLP, as well as other investors, who together hold about 25 percent of the bonds. At least two-thirds of all bondholders will need to approve the agreement for the debt restructuring deal to be finalized. Ukraine imposed a freeze on foreign debt payments two years ago after Russia launched its large-scale invasion. The freeze expires on Aug. 1. Both the IMF and the country’s bilateral creditors, including the United States and the Paris Club, have approved Ukraine’s proposals, the statement said. — BLOOMBERG NEWS