|Bid||372.95 x 1100|
|Ask||376.49 x 1200|
|Day's range||371.89 - 382.48|
|52-week range||292.47 - 446.01|
|Beta (3Y monthly)||1.33|
|PE ratio (TTM)||21.38|
|Earnings date||24 Jul 2019|
|Forward dividend & yield||8.22 (2.18%)|
|1y target est||413.57|
Investors have been holding their breath for a Fed rate cut for a while now. But are they prepared in the event that that doesn't happen?
(Bloomberg) -- Boeing Co.’s credit rating is at risk as the grounding of the company’s 737 Max jetliner drags into a fifth month, with Moody’s Investors Service joining Fitch Ratings in sounding a warning.The planemaker faces a $5 billion cash-flow drain this year as it continues to churn out aircraft it can’t deliver until regulators around the globe clear the Max to resume commercial flights, Moody’s said in a statement Monday. Like Fitch, Moody’s affirmed Boeing’s rating at the sixth-highest level of investment quality while cutting the outlook to negative.“Financial risk relative to the company’s pre-grounding profile has meaningfully increased, and the resolution and ultimate impact for Boeing, both financially and reputationally, remain unknown,” Moody’s said.The grounding of Boeing’s best-selling jet will clip operating margins for years to come, while posing a significant public-relations challenge that will linger into next year and beyond, Fitch said earlier in the day. Uncertainty around the return to service of the Max and the “growing logistical challenge” of getting parked planes back in the air threaten Boeing’s credit, Fitch said. There’s also a risk that the company will have to make costlier concessions to airlines.Boeing’s bonds were unchanged after the Fitch and Moody’s reports. The cost to protect its debt against default for five years rose 1.6 basis points, according to data provider CMA.The manufacturer’s benchmark 10-year bond has traded higher since the March 10 crash of an Ethiopian Airlines jet, the second Max accident in a five-month span. The notes were last quoted at 103 cents on the dollar, according to Trace. Boeing was able to sell $3.5 billion of new debt in April, boosting the size of the transaction amid strong demand.Share DeclineThe shares fell 1% to $373.42 at the close in New York.Regulators around the world banned the Max from flying in March after the Ethiopia crash. A total of 346 people died in the two accidents.Boeing last week disclosed a $4.9 billion after-tax charge to cover potential consideration for Max customers forced to cancel thousands of flights or line up replacement aircraft. S&P Global Ratings said last week that the charge, which is $5.6 billion on a pretax basis, wouldn’t affect Boeing’s credit ratings. But S&P warned that more damaging effects to the company’s finances or a “substantial loss” in market share to the 737 could warrant a downgrade.Like S&P, Fitch rates Boeing as an A. Moody’s grades it at an equivalent level of A2.To contact the reporters on this story: Molly Smith in New York at firstname.lastname@example.org;Julie Johnsson in Chicago at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, Susan WarrenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The aircraft maker and its CEO, Dennis Muilenburg, are weathering a storm, but for investors, there's no need to grab your parachute just yet!
Boeing and Lockheed Martin are competing for a $15 billion order. Defense spending is expected to increase as India's armed forces modernize.
The European Union is keen to work with Washington to reform the World Trade Organization and cooperate on common challenges to global trade, but will retaliate if Washington makes good on its threat to raise car tariffs, a top EU official said on Monday. Sabine Weyand, the European Commission's director general of trade and former deputy Brexit negotiatior, struck a conciliatory but firm tone in remarks during her first official visit to Washington since taking on her new role a month ago.
Investing.com – Tech stocks moved higher on Monday, but the rest of the stock market seemed to stand still.
Boeing's (BA) lackluster delivery performance and after-tax charges pertaining to the 737 MAX grounding and associated delivery delays are expected to dampen its bottom line in second-quarter 2019.
Lockheed Martin's (LMT) second-quarter 2019 results are likely to benefit from the projected higher volume of F-35 deliveries.
The revision, which comes on the heels of Boeing's nearly $5 billion charge related to the grounding, could potentially increase borrowing costs for the world's largest planemaker. Both the ratings agencies, however, retained their investment grade credit rating on Boeing debt, given the company's liquidity, financial flexibility and dominant position in the market. Fitch has an 'A'/'F1' rating on Boeing debt, while Moody's has an 'A2' rating.
General Dynamics (GD) has been witnessing higher interest expenses over the past few quarters, primarily due to the debt issued to finance the acquisition of CSRA Inc.
Giant market players like Facebook (FB), Alphabet (GOOGL), Boeing (BA), Amazon (AMZN) and Tesla (TSLA) will be among those reporting this week.
Economic data and earnings will keep investors busy this week. More than a quarter of the S&P; 500 companies are scheduled to release their earnings.
The Boeing 737 MAX won't return to service until very late in 2019, at best. With cash flow likely to remain negative until 737 MAX deliveries resume, Boeing may need to issue more debt to bolster its liquidity.
(Bloomberg) -- The upbeat picture painted by this past week’s blowout bank earnings heralded a promising earnings season. Too bad other industries didn’t get the memo.In the same week the five biggest U.S. lenders raked in over $30 billion in earnings for the first time, others around the globe left investors wondering how the bottom fell out so fast. Netflix Inc. sunk the most in three years amid a surprise drop in U.S. customers, while online retailer Asos Plc plunged after issuing another profit warning. Meanwhile, one-time earnings bellwether Alcoa Corp. beat on profit -- but also cut its forecast for global aluminum demand, adding to concerns that trade frictions are eroding the outlook for the industrial metal.This week, a range of high-profile companies report results, from tech titan Amazon.com Inc. and embattled aircraft maker Boeing Co. to burger behemoth McDonald’s Corp. and electric-car maker Tesla Inc. The earnings will offer a glimpse into every major sector of the economy, and Wall Street will be watching for signals like reduced hiring expectations, stalled capital expenses or consumers’ waning willingness to accept price hikes.With stock markets trending near record highs but recession risks on the rise, the second quarter could be yet another notch in the longest bull market in history -- or the beginning of its end.Here’s a look at what we’re watching:CarsAutomaker earnings may show how much the one-two punch of slowing sales and massive technological disruptions are impacting the industry’s bottom line.Those challenges have forced Ford Motor Co. and Volkswagen AG further into one another’s arms. After extending an alliance to include joint work on electric and autonomous vehicles, they’re expected to report stagnant or shrinking revenue. Daimler AG will put out finalized results weeks after the Mercedes-Benz maker posted a preliminary loss along with its fourth profit warning in just over a year. And analysts are projecting another unprofitable quarter for Tesla, which is blowing its battery-powered rivals out of the water but is still struggling to make money.The challenges extend to Asia, too. Nissan Motor Co. is set to give more details about restructuring efforts including potential job cuts as it tries to revive profitability that’s at a decade low. Jaguar Land Rover’s Indian owner Tata Motors Ltd. is also under pressure to show its cost-cut efforts are bearing fruit as it’s hit with hurdles from Brexit, a slowdown in China and flagging demand for diesel vehicles.ConsumerIf sales slow at McDonald’s, Starbucks Corp. or Chipotle Mexican Grill Inc., it will be a sign that consumers are cutting back on spending and eating out less. Higher labor and commodity costs have also forced restaurants to raise prices to maintain margins, and diners might balk at the idea of paying more for coffee and guacamole-stuffed burritos.Higher prices in recent quarters have benefited Starbucks as well as beverage makers Coca-Cola Co. and PepsiCo Inc. At Anheuser-Busch InBev, which just sold its Australian beer assets, investors will listen for any signs an IPO for the rest of its Asian business could be back on the table.China, meanwhile, will be the focus when European luxury conglomerates LVMH and Kering SA report results. The health of sales in that region will be scrutinized after showing surprising resilience in recent quarters, despite an ongoing trade war with the U.S. and the nation’s economic slowdown. Hong Kong protests, meanwhile, are hurting luxury spending at companies such as Richemont and Swatch Group AG.EntertainmentAT&T Inc. and Comcast Corp. can’t wait to enter the battle against Netflix and Walt Disney Co.’s Hulu for streaming-video viewers, but they have to contend with the continued decline of their legacy businesses first. As consumers flee traditional cable packages in favor of services like Netflix, AT&T and Comcast are expected to lose television customers, so investors will watch for signs that broadband subscriber growth can offset those declines.With casino companies including Las Vegas Sands Corp. and MGM Resorts International and their Asia subsidiaries reporting, investors will be on the lookout for any impact from China’s economic weakness.IndustrialsThe future of the 737 Max will be in focus when we hear from Boeing, which plans to report a $4.9 billion accounting charge related to its beleaguered jetliner. Southwest Airlines Co. and American Airlines Group Inc. have already removed the Max from their flight schedules through early November. Southwest is the model’s biggest operator while American is the world’s largest airline, and both carriers are sure to field questions about the Boeing crisis on their conference calls with analysts this week.Another company on the hot seat is aerospace-parts giant United Technologies Corp., whose merger agreement with Raytheon Co. has drawn fire from activist investors Dan Loeb and Bill Ackman. Investors in Caterpillar Inc., meanwhile, will look for more clarity on global demand for the company’s iconic machines in the second half of the year.TechnologyTech investors have a lot of information heading their way, with Facebook Inc., Alphabet Inc., Intel Corp. and Twitter Inc. all reporting. Their main question is whether those firms can keep revenue climbing amid the U.S.-China trade war and signs of slowing economic growth. There’s also mounting regulatory pressure on the sector around antitrust and privacy concerns. One player that’s avoided the recent scrutiny is Microsoft Corp., whose quarterly profit just topped estimates on the strength of its cloud-computing business.For hardware companies like Texas Instruments Inc. and Intel, the focus will be on the loss of market share in China as the companies grapple with a ban on exports to Huawei Technologies Co., a key customer.Amazon’s Prime Day got scads of attention last week, but it won’t be reflected in the company’s upcoming results. Investors in the e-commerce giant will be paying close attention to the fast-growing advertising and cloud business units.BankingEurope’s banks are expected to trail their U.S. peers for yet another quarter as global trade tensions continue to weigh on client activity. And unlike American banks, the Europeans don’t have a healthy stream of income from lending to fall back on due to negative interest rates.Deutsche Bank AG has already announced a loss for the quarter as it embarks on massive cutbacks, and investors will press for more details. France’s BNP Paribas SA has agreed to take on Deutsche’s hedge-fund and electronic-trading clients, but the integration is proving difficult and BNP will have to show progress in turning its own stocks trading unit around following embarrassing losses last year.Finally, Credit Suisse Group AG will have to answer questions about the surprise exit of a key wealth management executive who was seen as a potential successor to CEO Tidjane Thiam.\--With assistance from Brendan Case, Craig Giammona, Joe Deaux, Molly Schuetz, Craig Trudell, John J. Edwards III, Christian Baumgaertel, Eric Pfanner, Ville Heiskanen, Reed Stevenson and Christopher Palmeri.To contact the reporters on this story: Matthew Boyle in New York at email@example.com;Anne Riley Moffat in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Kevin Miller at email@example.com, Jonathan RoederFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg Opinion) -- This summer, European vacationers are being brought down to earth. A campaign, marked by hashtags such as stayontheground and flightshame, is pressuring travelers to think twice about the carbon impact of their air travel. Even airlines are joining in the public shaming. KLM Royal Dutch Airlines is encouraging people to fly less, and Deutsche Lufthansa AG's CEO recently declared that cheap fares are "economically, ecologically and politically irresponsible." Whether connected or not, there’s been a surge in European train passenger traffic this summer.None of this well-meaning effort will amount to much, however, unless the industry grapples with the environmental impact of its fastest-growing market: Asia.Aviation industry estimates suggest that global passenger numbers will double by 2037, led primarily by new middle-class consumers in China, India and Southeast Asia. Sometime in the next decade, China will surpass the U.S. as the world's biggest aviation market.This growth has been driven partly by population size -- China’s middle class alone includes at least 400 million members -- and partly by strategy. Rather than waiting for these consumers to become rich enough to afford traditional airfares, Asian low-cost carriers sprung up to meet them where they were economically. In 2008, airlines in Southeast Asia flew 200 million seats. A decade later, they flew 530 million seats; during that time, low-cost carriers expanded their market share from 30% to nearly 50%. The region’s leading such airline, Malaysia-based AirAsia Group Bhd., uses the slogan, "Now Everyone Can Fly!." It’s on track to become Southeast Asia’s largest carrier -- period -- in 2019.Neither the airline industry, passengers -- many of whom are flying for the first time -- nor local governments have any intention of slowing this growth. To the contrary, by 2035, India plans to build 100 new airports and China plans over 200 of its own. Meanwhile, developed countries including Singapore and South Korea are upgrading and expanding airports to prepare for the expected deluge of new passengers.East Asia already has the world's fastest-growing tourist industry and planemakers are salivating at the potential for more growth. The Boeing Co. predicts that Asia-Pacific will account for around 40% of the 44,000 commercial aircraft it expects to sell through 2038.The environmental costs of this growth are very real. An individual flying roundtrip between New York and London generates the same level of emissions as a person heating their home for a year. That adds up: The airline industry emits nearly 1 billion tons of CO2 annually. If aviation were a country, it'd be a top 10 emitter, bigger than such notable polluters as Brazil, Canada, South Korea and the U.K.The few conscientious Europeans who choose not to fly will in all likelihood be vastly outnumbered by the Asians who do, even if the latter are often flying shorter distances within the region. While environmental consciousness is growing across Asia, sustainable consumption -- and especially the notion that consumers should opt out or pay more for the benefits of a consumer economy -- remains an idea largely embraced by the already affluent.That means airlines and local governments are going to have to find other ways to mitigate the impact of air travel in Asia. There are no easy solutions, of course. But governments can and should take tangible steps now. For instance, China and India could join the over 70 states participating in the Carbon Offsetting and Reduction Scheme for International Aviation, or CORSIA, a market-based program in which airlines buy "offsets" for their emissions. Its idealistic goal is to make aviation carbon-neutral by 2020.Greater government support for biofuels and other sustainable fuels, especially by flag carriers and state-supported airlines, would reduce emissions and create economies of scale that would make it more affordable for other airlines to adopt such cleaner-burning fuels. Airlines could work together to establish and maintain "green" flight routes that reduce fuel use and climate impacts.Finally, countries with an interest in developing plane manufacturing sectors could increase investments in electric and hybrid propulsion. Governments won’t get far if they try to tell eager new consumers they can’t fly. The key is to make all those trips a lot less damaging than they currently are.To contact the author of this story: Adam Minter at firstname.lastname@example.orgTo contact the editor responsible for this story: Nisid Hajari at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Adam Minter is a Bloomberg Opinion columnist. He is the author of “Junkyard Planet: Travels in the Billion-Dollar Trash Trade” and the forthcoming "Secondhand: Travels in the New Global Garage Sale."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Members of Ryanair's Irish pilot union are to decide next week whether to join British colleagues in holding a ballot on strike action, according to a memo distributed to members. Ryanair pilots in Britain, the Irish airline's largest market, last week announced a ballot that could lead to strike action in late August, citing disagreements over pay and conditions. Ryanair pilots who are members of the Irish Airline Pilots Association (IALPA) will meet in Dublin on Tuesday to decide whether to hold a ballot for "industrial action up to and including strike action", with voting to begin on or before Thursday, July 25, the memo said.