173.18 -0.10 (-0.06%)
After hours: 6:04PM EDT
|Bid||173.01 x 1100|
|Ask||173.23 x 1800|
|Day's range||172.81 - 180.75|
|52-week range||89.00 - 391.00|
|Beta (5Y monthly)||1.47|
|PE ratio (TTM)||N/A|
|Earnings date||29 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||13 Feb 2020|
|1y target est||174.30|
Emirates, which represents more than one-third of the 777X order book, could seek to swap some of its orders for other planes.
(Bloomberg) -- Boeing Co.’s new 777X jet is likely to miss its planned debut next year, according to the aircraft’s top customer Emirates, which doesn’t expect to receive any planes before 2022.Deliveries of the wide-body jet, which first flew in January, will probably be held up by Boeing’s shutdown at the height of the coronavirus pandemic, together with a lengthy certification process, Adel Al Redha, the Gulf carrier’s chief operating officer, said Thursday in an interview.Emirates is also considering whether to seek a swap of some of the 115 777Xs it has on order -- representing more than a third of the total backlog -- for the smaller 787 Dreamliner, which might be better matched to demand, he said. Accelerating deliveries from an earlier Dreamliner order is a “possibility,” he said.“We will be discussing with Boeing in that regard, if we look what we can do with the 787,” Al Redha said. “We are in a fluid discussion and in the peak of re-examining all these kind of things. It does require re-examination, it does require re-thinking, it does require renegotiation.”Boeing is looking at delaying the upgraded 777’s introduction as other buyers also resist taking delivery of such a large plane when they’re being compelled to shrink operations, according to people familiar with the matter who asked not to be named discussing confidential matters. The company’s first new-jet introduction since the grounding of its 737 Max after two fatal crashes also faces increased scrutiny from the U.S. Federal Aviation Administration and other regulators.“I don’t see that they will be able to deliver the aircraft in 2021,” Al Redha said. “We will engage with Boeing to get more visibility. I think 2022 is a safe assumption to make.”Making ProgressBoeing said it’s working closely with its customers to adapt to the evolving Covid-19 situation. The Chicago-based company also said that it would soon add a third aircraft to its flight-testing program.“We continue to execute our robust test program for the 777-9, which began flight testing in January,” Boeing said in a statement, referring to the longest version of the 777X. “We remain pleased with the progress we are making and with the airplane.”Boeing fell 2.9% to $174.91 at 1:19 p.m. in New York amid broad U.S. stock declines. The shares fell 45% this year through Wednesday, the biggest drop on the Dow Jones Industrial Average.The FAA said that it can’t comment on its efforts to review the manufacturer’s work to upgrade the 777.While the agency is taking steps to make risk assessments more rigorous in the wake of the Max grounding, the certification process for the 777X began before the crashes and shouldn’t be affected by the reforms. All the same, the spotlight on the process could trigger other actions that slow down approval.The timing of the 777X commercial debut has been at the heart of complex negotiations with Emirates, which has already converted some of its original order for the smaller and more versatile Dreamliner. The first delivery for the 777X was originally set for this year, though the date was pushed back to 2021 following issues including delays to the plane’s General Electric Co. turbines.While Emirates’ 2013 order was instrumental in Boeing’s decision to go forward with the 777X, it isn’t clear if the airline or another of the launch group of customers would take the initial delivery.Cash SourceBy potentially accelerating its 787 deliveries, Emirates would help support a critical cash source for Boeing amid an uncertain market for wide-body aircraft. The planemaker has outlined plans to halve Dreamliner production as the Covid-19 pandemic spreads, citing fading demand for near-term deliveries.Chicago-based Boeing will be eager to begin handovers of the 777X after the Max crisis deprived it of revenue from its best-selling program. But the twin-aisle model, which boasts bigger wings and new engines, is arriving at a time when the high-volume long-haul market it’s designed to serve may be depressed for years.The 777-9 variant is longer than the 747 jumbo Boeing is winding down, and is the first twin-engine jet able to carry a similar number of people. It’s also the company’s priciest model, selling for $442.2 million before customary discounts.Sales, though, have stalled since an initial order flurry when the aircraft was unveiled at the 2013 Dubai Airshow, and anticipated orders from China haven’t materialized amid trade tensions.For the U.S. planemaker, there’s a risk that additional order conversions and deferrals will leave it manufacturing the jet in such low quantities that 777X profitability would be hurt. Qatar Airways, Cathay Pacific Airways Ltd. and Deutsche Lufthansa AG are among customers that are restructuring their fleet plans.Long-Haul SlumpEmirates, the world’s largest long-haul airline, has been hard hit by the unprecedented slump in travel caused by the coronavirus. It’s already had to rethink plans for the double-decker A380, a mainstay of its fleet, after a dearth of demand elsewhere led Airbus SE to decline to upgrade the jet and then to terminate the program early.The Gulf carrier, also the biggest customer for the Airbus super-jumbo, plans to take the delivery of three A380s during the fiscal year ending in March, Al Redha said. While the delivery schedule for the last five planes remains unchanged, “if the need comes to re-visit, obviously we will do that.”Read more:Boeing Quietly Pulls Plug on the 747, Closing Era of Jumbo JetsEmirates Weighs Biggest Cut Yet as Airline Industry ShrinksEmirates and FlyDubai Evolve From Odd Couple to Best BuddiesHe said he expects 60% to 70% of the current A380 fleet to be back in the air by December. Load factor now exceeds 55% and demand for both economy and premium travelers has strengthened, he said. The airline plans to keep all 115 of the double-decker jets.The Dubai-based carrier will roll out premium economy seats on its newest A380 aircraft slated to be delivered in November, Al Redha said. Some of the existing fleet will be retrofitted from economy to premium economy.Two BrandsEmirates Group is also looking for ways to streamline operations and increase efficiencies, Al Redha said. One of the possibilities that is being considered is combining the back office operations of Emirates with discounter Flydubai, while maintaining two separate companies and identities. Both carriers are owned by Dubai’s government.“There is definitely a scope having to look at how we can reduce the expenses and become more efficient in certain areas, even if requires combining some back office activities,” Al Redha said. Emirates is re-examining all companies within the group, including ground-handling and catering arm Dnata.Emirates and Flydubai have deepened their ties since 2017, embracing route rationalization to minimize duplication.(Updates with COO quote in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Boeing (NYSE: BA) was dealt a fresh blow on Tuesday when aircraft leasing specialist Avolon said it had canceled orders for 27 737 Max jets. The jets represent a small fraction of Boeing's 4,000-jet order book, but for Boeing investors, the risk is a death by one million cuts. This is Avolon's second round of cancellations this year, after calling off plans to buy 75 additional 737 Max planes in April.
(Bloomberg Opinion) -- Few aerospace companies have been left unscarred by Covid-19, but those that were struggling even before the pandemic are experiencing a unique kind of hell.Boeing Co. was already up against it after grounding its 737 Max jets and it’s expected to burn through as much as $16 billion of cash this year. Among suppliers, few were as vulnerable going into the crisis as Rolls-Royce Holdings Plc, the British jet engine manufacturer. It invested billions of pounds in several new engine designs, only to discover that one — the Trent 1000 — isn’t totally reliable. Fixing this will cost 2.4 billion pounds ($3 billion), and now the collapse in air travel has taken its own toll on Rolls-Royce’s finances.On Thursday, a trading update laid bare just how devastating the virus has been for a company whose propulsion systems power 38% of the world’s wide-body passenger jets, including the Boeing 787 and Airbus A380. The group expects to consume about 4 billion pounds of cash this year. Like Boeing, Rolls-Royce’s liabilities now far exceed its balance-sheet assets.Even in normal times the company loses more than 1 million pounds on each large jet engine it sells, and makes most of its commercial aviation revenue from maintenance contracts. When planes are grounded, precious little cash comes in to cover the company’s high fixed costs. The number of hours Rolls-Royce engines were in flight fell by 75% in the second quarter; they’re expected to more than halve this year. With intercontinental flying likely to remain subdued, many of the twin-aisled jets that Rolls-Royce powers will remain underutilized. A strategic decision to focus on the wide-body aircraft market is coming back to haunt the company. Bloomberg reported last week that Rolls-Royce was considering raising up to 2 billion pounds in equity capital. But, for now, it has announced only a new 2 billion-pound government-guaranteed loan.A large capital increase would heavily dilute shareholders that don’t participate but Rolls-Royce has surely run out of other options, having already scrapped its dividend and announced 9,000 job cuts. The shares have declined by more than 60% this year, valuing the business at just 5.1 billion pounds. At its 2013 peak, Rolls-Royce was worth more than 4 times that.The company still has 4.2 billion pounds of cash and 8.1 billion pounds of total available liquidity, a decent cushion considering the scale of the ongoing cash burn. But its finances are in a worse state than those numbers suggest, something Rolls-Royce’s complex accounting, large working capital swings and invoice-financing arrangements (since discontinued) helped paper over.Rolls-Royce’s net indebtedness could rise to as much as 16.6 billion pounds, according to an estimate from JPMorgan analyst David Perry that preceded Thursday’s trading update. That’s when you include the cash that customers have advanced Rolls-Royce ahead of the maintenance work it must still carry out, as well as its operating leases, provisions for fixing faulty engines and other liabilities.About half of Rolls-Royce’s revenue comes from making power-generation and defense equipment, businesses that haven’t been as badly affected by coronavirus. Power-generation sales fell but defense is holding steady. A group target to achieve 750 million pounds of free cash flow in 2022 gives investors something to cling to. Chief Executive Officer Warren East believes the company has an attractive and independent future.And yet, Rolls-Royce will emerge from this crisis as a smaller group with less cash-flow potential and more debt. As a key military supplier to Britain and one of the country’s last truly world-class manufacturers, the government will be keeping a close eye on its financial health. The state had to rescue the company when it went bust in the early 1970s, and it still holds a so-called “golden share,” allowing it to block a foreign takeover.Investors seem to think more state assistance will be forthcoming if needed.(2) The company’s 550 million euros of senior unsecured 1.625% coupon bonds, which mature in 2028, trade at 90 cents on the euro. That’s not great, but it’s not disastrous either. Standard & Poor’s has already cut the credit rating to junk. If Rolls-Royce does prove too fragile to stand alone, the idea of merging it with BAE Systems Plc could be revived. It’s too important to fail.(1) So far Rolls-Royce has tapped 300 million pounds from the U.K.’s Covid Corporate Financing Facility and now has another 2 billion pound government-guaranteed loan available to it.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In the latest trading session, Boeing (BA) closed at $180.08, marking a +0.67% move from the previous day.
(Bloomberg) -- Lithium-ion batteries play a central role in the world of technology, powering everything from smartphones to smart cars, and one of the people who helped commercialize them says he has a way to cut mass production costs by 90% and significantly improve their safety.Hideaki Horie, formerly of Nissan Motor Co., founded Tokyo-based APB Corp. in 2018 to make “all-polymer batteries” -- hence the company name. Earlier this year the company received backing from a group of Japanese firms that includes general contractor Obayashi Corp., industrial equipment manufacturer Yokogawa Electric Corp. and carbon fiber maker Teijin Ltd.“The problem with making lithium batteries now is that it’s device manufacturing like semiconductors,” Horie said in an interview. “Our goal is to make it more like steel production.”The making of a cell, every battery’s basic unit, is a complicated process requiring cleanroom conditions -- with airlocks to control moisture, constant air filtering and exacting precision to prevent contamination of highly reactive materials. The setup can be so expensive that a handful of top players like South Korea’s LG Chem Ltd., China’s CATL and Japan’s Panasonic Corp. spend billions of dollars to build a suitable factory.Horie’s innovation is to replace the battery’s basic components -- metal-lined electrodes and liquid electrolytes -- with a resin construction. He says this approach dramatically simplifies and speeds up manufacturing, making it as easy as “buttering toast.” It allows for 10-meter-long battery sheets that can be stacked on top of each other “like seat cushions” to increase capacity, he said. Importantly, the resin-based batteries are also resistant to catching fire when punctured.In March, APB raised 8 billion yen ($74 million), which is tiny by the wider industry’s standards but will be enough to fully equip one factory for mass production slated to start next year. Horie estimates the funds will get his plant in central Japan to 1 gigawatt-hour capacity by 2023.Lithium-ion batteries have come a long way since they were first commercialized almost three decades ago. They last longer, pack more power and cost 85% less than they did 10 years ago, serving as the quiet workhorse driving the growth of smartphones and tablets with ever more powerful internals. But safety remains an issue and batteries have been the cause of fires in everything from Tesla Inc.’s cars to Boeing Co.’s Dreamliner jets and Samsung Electronics Co.’s smartphones.“Just from the standpoint of physics, the lithium-ion battery is the best heater humanity has ever created,” Horie said.In a traditional battery, a puncture can create a surge measuring hundreds of amperes, several times the current of electricity delivered to an average home. Temperatures can then shoot up to 700 degrees Celsius. APB’s battery avoids such cataclysmic conditions by using a so-called bipolar design, doing away with present-day power bottlenecks and allowing the entire surface of the battery to absorb surges.“Because of the many incidents, safety has been at the top of mind in the industry,” said Mitalee Gupta, senior analyst for energy storage at Wood Mackenzie. “This could be a breakthrough for both storage and electric vehicle applications, provided that the company is able to scale up pretty quickly.”But the technology is not without its shortcomings. Polymers are not as conductive as metal and this could significantly impact the battery’s carrying capacity, according to Menahem Anderman, president of California-based Total Battery Consulting Inc. One drawback of the bipolar design is that cells are connected back-to-back in a series, making control of individual ones difficult, Anderman said. He also questioned whether the cost savings will be sufficient to compete with the incumbents.“Capital is not killing the cost of a lithium-ion battery,” Anderman said. “Lithium-ion with liquid electrolyte will remain the main application for another 15 years or more. It’s not perfect and it isn’t cheap, but beyond lithium-ion is a better lithium ion.”Horie acknowledges that APB can’t compete with battery giants who are already benefiting from economies of scale after investing billions. Instead of targeting the “red ocean” of the automotive sector, APB will first focus on stationary batteries used in buildings, offices and power plants.That market will be worth $100 billion by 2025 worldwide, more than five times its size last year, according to estimates by Wood Mackenzie. The U.S. alone -- which together with China will be the main source of increased energy storage demand -- is likely to see a 10-fold increase to $7 billion in the period.Horie, 63, got his start with lithium-ion batteries at their very beginning. In February 1990, early on in his Nissan career, he started the automaker’s nascent research into electric and hybrid vehicles. A few weeks later, Sony Corp. shocked the industry, which was betting on nickel-hydride technology, by announcing plans to commercialize a lithium-ion alternative. Horie says he immediately saw the promise and pushed for the two companies to combine research efforts that same year.By 2000, however, Nissan was giving up on its battery business, having just been rescued by Renault SA. Horie had one shot at convincing his new boss Carlos Ghosn that electric vehicles were worth it. After a 28-minute presentation, a visibly excited Ghosn proclaimed Horie’s work an important investment and green-lit the project. Nissan’s Leaf would go on to become the best-selling EV for a decade.Horie came up with the idea for the all-polymer battery while still at Nissan but wasn’t able to get institutional backing to make it real. In 2012, while doing a teaching stint at the University of Tokyo, he was approached by Sanyo Chemical Industries Ltd., known for its superabsorbent materials used in diapers. Together, the two developed the world’s first battery using a conductive gel polymer. In 2018, Horie founded APB and Sanyo Chemical became one of his early investors.APB has already lined up its first customer, a large Japanese company whose niche and high-value-added products sell mostly overseas, Horie said. He declined to give further details and said APB plans to make the announcement as early as August.“This will be the proof that our batteries can be mass-produced,” Horie said. “Battery makers have become assemblers. We are putting chemistry back into the lead role.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Boeing Co has reached settlement agreements in more than 90% of the wrongful death claims filed in federal court after the 2018 crash of a Lion Air 737 MAX in Indonesia that killed all 189 people on board, a court filing on Tuesday said. The fatal crash, followed within five months by another 737 MAX jetliner in Ethiopia, led to the worldwide grounding of the best-selling model and a corporate crisis that has included hundreds of lawsuits alleging the jet was unsafe and separate probes by the Justice Department and U.S. lawmakers.
(Bloomberg Opinion) -- In the mid-1960s, Singapore was a poor island that had to go it alone, without natural resources in a region buffeted by the Vietnam War and political tumult in Indonesia. When Lee Kuan Yew established the city-state in 1965, he used a take-no-prisoners approach to carve Southeast Asia’s most successful container port and a regional business center from inauspicious beginnings. His son, who became the country’s third leader, was barely a teenager at the time.Now Prime Minister Lee Hsien Loong runs a very different Singapore, one with secure borders and multinational companies in a region buoyed by decades of robust growth. The republic guards its prosperity with utmost caution. Yet the People’s Action Party, founded by Lee’s father, goes into an election Friday with a slate of challenges that require outside-the-box solutions: containing the coronavirus while restoring the economy, maintaining growth amid low birth rates and an aging society, and navigating the fraying relationship between major economic partners, China and the U.S.Lee, 68, has signaled he will step down in a few years to make way for a fourth generation of PAP officials, known across the city as “4-G.” This rising cohort is mostly composed of ministers who were either small children or unborn when Singapore divorced acrimoniously from Malaysia, and share little or no memory of its founding as a sovereign nation. They also know no administration other than their own party, which was formed in the mid 1950s and has governed since independence. The perils and potential promise of the pandemic era mean another wrenching reinvention. Future leaders may need the pluck, ruthlessness and readiness to break old models in order to create opportunities and head off catastrophes that lie ahead. Managing success is necessary; it may not be sufficient.The coronavirus has brought the worst recession since the heady and desperate days of independence. Lee said Monday he wants to see a path to revival before passing the baton: “I am determined to hand over Singapore, intact and in good working order, to the next team.” Heng Swee Keat, 59, his deputy and finance minister, is widely seen as Lee’s successor. Band members include Chan Chun Sing, 50, minister for trade and industry, and 47-year-old Lawrence Wong, minister for national development and one of the main faces of the struggle against the disease. The most pressing item on the 4-G agenda will be containing the pandemic. The economy is gradually reopening after two months of lockdown, which curtailed the spread of the disease and limited deaths, but took a heavy toll. Gross domestic product will shrink as much as 7% this year, according to the government.Initial plaudits for Singapore's handling of the virus gave way to concerns about outbreaks in dormitories housing migrant workers, which account for the vast majority of the country’s 44,983 cases as of Monday. The surge in this community has resurfaced the longstanding debate about immigration and the role of foreigners in the economy.Headlines at the end of last week were dominated by claims and strenuous rebuttals that Heng, the deputy prime minister, had toyed with the idea of boosting Singapore's population to 10 million. The country has grown about 40% since 2000 to 5.7 million, and residents already complain about crowded public transport, foreigners taking jobs they say ought to go to locals, and housing costs. Heng denied that the government targeted this figure, and said the population is likely to be below 6.9 million by 2030.The Singapore Democratic Party, which linked Heng to the 10 million headcount, defended the raising the issue and said figures like that had been “floating around,” the Straits Times reported. Last week, another opposition group, the Progress Party Singapore, pressed the government on how many white-collar employees and technicians had jobs displaced by foreigners.Singapore doesn’t allow opinion polls. Most analysts anticipate the PAP will again win; the focus of attention is on the size of the margin. In the 2015 election, the PAP garnered about 70% of the vote. For only the second time, all 93 parliamentary seats will be contested by at least two parties.Squabbles about population are, to a degree, debates about how to manage a win. Like most countries with a first-world standard of living, Singapore's fertility rate is at a record low. Citizens have the longest life expectancy in the world at nearly 85 years. Demographic pressures like these help explain why the country relies on hundreds of thousands of migrants to keep the place running, as I’ve written.Assuaging voters while maintaining the openness that has served Singapore so well is a tricky balance. After the PAP’s showing in the 2011 election dipped, the government took steps to pare back foreign workers. During this year’s campaign, ministers have emphasized their attention to the domestic labor market, but appear loath to pull up the drawbridge. More tinkering, rather than a broad brush solution, seems likely. The 4-G leadership will also have to reconsider whether geography, once a trump card, can still be leveraged with globalization at a standstill. Two icons established by Lee Kuan Yew, Changi Airport and Singapore Airlines Ltd., face threats exacerbated by Covid-19’s restrictions. Both rose to prominence in the era of the Boeing 747 that democratized air travel. Singapore was well situated as a stop on the “kangaroo route” between the U.K. and the antipodes. Now, that supremacy is challenged by Middle Eastern carriers and revved up hubs in places like Dubai and Qatar.Meanwhile, Singapore’s advantages as a port and trading center in the Straits of Malacca might diminish because of melting polar ice and commercial conflict between Beijing and Washington. Throw in curbs on travel and border restrictions owing to the pandemic and it’s a very tough brew — all of which raise the question of what comes next. In recent years, the government has tried to position the city-state as a hub for advanced technology, investing in robotics, artificial intelligence and biotech.In a 2018 book, “Singapore, Singapura: From Miracle to Complacency,” Nicholas Walton, a former journalist, recognizes the country's achievements but questions whether the incentives are big enough for a thorough reinvention: “Like a dinghy facing a storm on the high seas, this small country had to feed off a sense of vulnerability to survive,” he wrote. “That was easy enough when the roof was made of attap palms and you had every reason to mistrust the neighbors. But now, cossetted by air conditioning and rain-proof walkways… it is harder to retain that hunger and vulnerability.”The coming era presents challenges of a different kind and magnitude than 4-G officials faced when they were youngsters. History suggests they will try to find a technocratic and pragmatic way to finesse or defuse them. Lee Kuan Yew moved fast and broke things; he was unafraid to challenge the status quo. The heirs to the Singapore he created may need more of his moxie to navigate the world the coronavirus. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Daniel Moss is a Bloomberg Opinion columnist covering Asian economies. Previously he was executive editor of Bloomberg News for global economics, and has led teams in Asia, Europe and North America.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Robin King, this week's guest on Masters in Business, didn't expect to be involved with the Naval Special Warfare program. When her photographer husband followed his older brother into the Navy Seals program, King, decided to put her business degree to good use. (Her past employers were Walt Disney and McDonnell Douglas, later bought by Boeing).She began working in the finance department of a nonprofit serving the special warfare community. Then a $100,000 donation came in with a small catch: It had to go to an IRS- recognized, tax-deductible organization. Thus, the Navy SEAL Foundation was born.King began in the finance department, eventually becoming chief financial officer and then chief executive officer. The organization provides critical support and assistance to the Naval Special Warfare community and its families.King discusses the balance that all special forces spouses seem to adapt to: being both independent when your spouse goes off to battle, yet part of a larger community supporting families through trauma and tragedy. She discusses why she (and other special forces wives and husbands) don’t stress out while their spouses are in harm’s ways: Their equipment, training, planning and leadership are so good it imbues them all with a reassuring sense of confidence in their team and their own abilities. It is not just that they like their chances, it is that they have done everything possible to tilt the odds in their own favor.Her favorite books are here; a transcript of our conversation is here.You can stream and download our full conversation, including the podcast extras on iTunes, Spotify, Overcast, Google, Bloomberg and Stitcher. All of our earlier podcasts on your favorite pod hosts can be found here.Next week, we speak with Martin Franklin of Mariposa Capital. Franklin has founded and run numerous companies, including Element Solutions Inc. and Jarden Corp., since acquired by Newell Brands. He has also created more than a dozen special purpose acquisition companies, co-investing with money managers such as Bill Ackman of Pershing Square Capital.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Barry Ritholtz is a Bloomberg Opinion columnist. He is chairman and chief investment officer of Ritholtz Wealth Management, and was previously chief market strategist at Maxim Group. He is the author of “Bailout Nation.”For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The 737 Max could be carrying passengers again this year, and Intel faces competition in the PC and server chip markets.
Investors need to pay close attention to Boeing (BA) stock based on the movements in the options market lately.
The stock market has seen extreme volatility so far in 2020, and even after a strong second-quarter performance, the Dow Jones Industrials (DJINDICES: ^DJI) are still down almost 10% for the year. Although there've been a few stocks that have managed to buck the trend and gained ground, the vast majority of Dow stocks have given up ground. As with all falling stocks, the big question investors have is whether these three giants of their respective industries can bounce back and recover some of their lost ground.
The 737 MAX is finally close to being cleared for a return to commercial service. It's too bad demand has evaporated.
Boeing Co <BA.N> and suppliers set the final number of parts it would need for the 747 jumbo jet program at least a year ago, signaling the end for a plane that democratized global air travel in the 1970s but fell behind modern twin-engine aircraft, industry sources said on Friday. Boeing's "Queen of the Skies", the world's most easily recognized jetliner with its humped fuselage and four engines, marked its 50-year flying anniversary in February 2019, clinging to life thanks to a cargo market boom fueled by online shopping. The last order for a passenger version came in 2017, when the U.S. government asked Boeing to repurpose two 747-8 jetliners for use as Air Force One by the U.S. president.
A union representing workers at Embraer filed a lawsuit on Friday seeking to dismiss the company's board, after a $4.2 billion (3.3 billion pounds) deal with Boeing Co <BA.N> collapsed amid the pandemic, claims the Brazilian planemaker said were an act of "bad faith." Embraer said the union was "using unfounded allegations and distorting information in order to confuse public opinion and the company's workers." The lawsuit is the latest headache for Embraer in the aftermath of its breakup with Boeing.
Boeing's (BA) 747 jets have been replaced by other narrow-body and cost-effective jets, such as the 777 and 787, and Airbus' A330 and A350 jets, over the years.
Raytheon Technologies (RTX) is set to offer non-warranty repairs, program support, contractor logistics support and service life prediction program analysis, supporting the AMRAAM weapon system
Boeing Co's communications chief Niel Golightly abruptly resigned on Thursday, following an employee's complaint over an article the former U.S. military pilot wrote 33 years ago arguing women should not serve in combat. The job has become the industry's biggest hot seat as Boeing fends off criticism for its handling of the 737 MAX crisis. "My article was a 29-year-old Cold War navy pilot's misguided contribution to a debate that was live at the time," Golightly said in a statement included in Boeing's announcement.
Boeing (NYSE: BA) reportedly plans to wind down production of its massive 747 jumbo jet, the end of an era for double-decker jets as airlines focus on smaller, more fuel-efficient aircraft. The company has not yet made the decision official, but Bloomberg reported the last 747-8 will roll off Boeing's assembly line in about two years. While the timing of Boeing's decision is new, the fate of the 747 has been obvious for a while.
The 747 democratized global air travel in the 1970s but fell behind modern twin-engine passenger jets. The last 747-8 will roll out of a Seattle area factory in about two years, according to the Bloomberg report. When contacted by Reuters, Boeing did not confirm the Bloomberg report.
The Dow's rally drove shares of Apple (NASDAQ: AAPL), McDonald's (NYSE: MCD), ExxonMobil (NYSE: XOM), and Boeing (NYSE: BA) higher despite mixed news. Apple and McDonald's pulled back on store reopening plans due to a surge in COVID-19 cases, Exxon disclosed that it would take a large earnings hit in the second quarter, and the FAA completed certification test flights for Boeing's 737 Max.