|Bid||146.36 x 800|
|Ask||146.84 x 1000|
|Day's range||142.94 - 152.00|
|52-week range||89.00 - 391.00|
|Beta (5Y monthly)||1.45|
|PE ratio (TTM)||N/A|
|Earnings date||22 Jul 2020 - 27 Jul 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||13 Feb 2020|
|1y target est||156.72|
What happened Shares of Embraer (NYSE: ERJ) spiked 17% on Friday following a report that a Chinese manufacturer has expressed interest in joining forces with the world's third-largest commercial airplane manufacturer.
Aircraft makers are circling Brazil's Embraer weeks after Boeing ditched plans for a historic commercial aviation tie-up, people familiar with the matter said. Boeing axed plans to buy 80% of Embraer's commercial unit in April, ending a planned move into regional jets that mirrored rival Airbus' purchase in 2018 of a competing model developed by Canada's Bombardier. China's state-owned COMAC planemaker has voiced informal interest in co-operation with the world's third-largest jetmaker, two of the people said.
In the latest trading session, Boeing (BA) closed at $149.82, marking a +0.2% move from the previous day.
(Bloomberg Opinion) -- The amount of new debt issued this year in the U.S. investment-grade corporate bond market will reach $1 trillion today, by far the fastest pace in history. The implications of that milestone depend on how you look at it.For businesses that had been ravaged by the coronavirus pandemic and the ensuing nationwide lockdowns, access to capital markets was a lifeline to get through the worst of the economic collapse. Sure, Carnival Corp. had to offer interest rates like a junk-rated borrower and Boeing Co. needed to include a so-called coupon step-up provision to offset jitters that it could lose its investment grades. But, in the words of Federal Reserve Chair Jerome Powell, these deals avoided turning “liquidity problems into solvency problems” for brand-name American companies.It’s worth remembering that until the Fed stepped in with extraordinary support for credit markets, averting widespread failures was far from guaranteed. Investors pulled a staggering $35.6 billion and $38 billion from investment-grade funds in the weeks ended March 18 and March 25, respectively. Before 2020, the previous record was $5.1 billion of outflows. I wrote on March 19 that bond markets were veering into a vicious cycle that could get ugly in a hurry — four days later, the Fed announced what would end up becoming a $750 billion backstop for corporate America.Now, the Fed hasn’t actually had to buy any individual bonds yet, a fact that Powell seems proud to share. “We may have to be lending money to those companies, but even better, they can borrow themselves now, and a lot of that has been happening and that’s a really good thing,” he said during May 19 testimony before the Senate Banking Committee.Most people would probably agree with that assessment, at least for the immediate future as the country grapples with restarting the world’s largest economy. But what about the longer-term view?Here, the rampant borrowing paints a more sobering picture. As of late April, 1,287 issuers worldwide rated between AAA and B- by S&P Global Ratings were considered at risk of a potential downgrade, up from 860 in March and 649 in February. That surpasses the previous all-time high set in 2009. “Generally, we expect heavy credit erosion in coming months as issuers, especially those in the lower-rated spectrum come under heavy fire from poor earnings, continued difficulties in managing cost structures, and market volatility creating limited funding opportunities,” said Sudeep Kesh, head of S&P’s credit markets research.That’s bad enough, but doesn’t even strike at the heart of the issue. Last year was supposed to be the beginning of a broad “debt diet” among companies that borrowed huge sums to finance mergers and acquisitions during the longest expansion in U.S. history. That didn’t end up taking place on a wide scale. Even a success story like AT&T Inc., which made headway in trimming its debt stack, still found itself back in the bond market recently, borrowing $12.5 billion on May 21 in what was the biggest deal since Boeing’s $25 billion blockbuster offering.When it comes to companies directly impacted by the coronavirus pandemic or structural changes to their industries, the “big three” of S&P, Moody’s Investors Service and Fitch Ratings haven’t shied away from taking action. Ford Motor Co., Kraft Heinz Co., Macy’s Inc. and Occidental Petroleum Corp. are just a few of the “fallen angels” that lost their investment grades earlier this year.The rating companies haven’t been quite as keen to react to high leverage metrics. I frequently refer back to this feature from Bloomberg News’s Molly Smith and Christopher Cannon, which found that of the 50 biggest corporate acquisitions in the five years through October 2018, more than half of the acquiring companies increased their leverage to a level that would seemingly merit a junk rating but remained investment grade on the assumption that they’d take that leverage down in the coming years. Those expectations seemed ambitious in 2018, when the economy was seemingly invincible. Now, no one can truly expect companies to focus on right-sizing their debt. Corporate leaders are rightfully eager to raise cash to get to the other side of the pandemic, especially with all-in yields not far off from record lows. The vast majority of the $1 trillion in borrowing so far this year was by no means imprudent.In the years ahead, however, the overhang from this issuance spree will inevitably weigh down credit ratings. A company with more debt presents a greater risk of missed interest payments than if it had fewer fixed obligations. Fortunately, for much of the previous expansion, firms had no issue finding investors willing to buy their long-term securities. That practice of rolling over debt and extending maturities might very well be the norm in the months and years ahead, too. Still, if the first five months of 2020 are any indication, investment-grade bondholders will have to get comfortable with even more bloated balance sheets and the prospect of further credit downgrades. For better or worse, with the confidence that the Fed has their back, that seems like a risk investors are willing to take.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.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.
Shares of Twitter Inc <TWTR.N> ended down 4.4% and Facebook Inc <FB.O> fell 1.6% following news of the executive order. The White House, after the market close, said Trump had signed the order, which removes a liability shield they currently enjoy.
In this episode of MarketFoolery, Chris Hill chats with Motley Fool analyst Jim Gillies about the latest headlines from Wall Street. They talk about some stock offerings and there is news on the work-from-home front.
General Electric (NYSE: GE) forecasted negative free cash flow for the full year this week. The new CEO, Larry Culp, took over the company's sprawling asset portfolio 18 months ago, and still has work to do. Proceeds from that sale raised the company's liquidity position by over 20% during Culp's first year on the job, which should help offset this year's negative free cash flow.
(Bloomberg) -- The European Union may have no option but to impose retaliatory tariffs against the U.S. over its illegal aid to Boeing Co. in order to settle the longstanding transatlantic dispute over aircraft subsidies, according to a senior EU official. Sabine Weyand, the EU’s top civil servant for trade policy, signaled the U.S. government feels it has leverage over the bloc after hitting $7.5 billion of European goods with duties last October in retaliation over unlawful support for Airbus SE.Washington won the green light for the penalties from the World Trade Organization, which in a tit-for-tat case is due to determine as soon as next month the damages the EU can seek over market-distorting state help for Boeing. While awaiting that verdict, the EU says it has proposed a settlement that Washington is shunning.The U.S. “is very comfortable in the current situation because they got their award before we got ours,” Weyand said on Thursday in Brussels during an online panel debate about international trade. “I’m afraid that we will have to wait for our award -- and for the imposition of sanctions by the EU on the U.S. side -- in order to re-balance the level playing field in terms of the negotiation.”The coronavirus-induced worldwide economic slump this year has raised the prospect of the EU and U.S. de-escalating their aircraft-aid battle, not least because aviation has been one of the hardest-hit industries.Weyand offered little sign on Thursday that such a scenario will play out before the WTO decision on damages the EU can claim in the Boeing case. The bloc has drawn up a plan for countermeasures worth $12 billion.“We will probably have a few more difficult months ahead of us before we manage to get everyone to the negotiating table,” she said. “It is more urgent in the context of the need for economic recovery.”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) said late Wednesday that it has restarted 737 Max production, meeting its self-imposed May 31 deadline to resume building its troubled airplane. The 737 Max has been grounded since March 2019 after a pair of fatal crashes, and Boeing halted production in January after stockpiling a large number of finished, but undeliverable, aircraft. Boeing has missed several internal deadlines to return the plane to the air, but even with delays caused by the COVID-19 pandemic, company officials are confident the plane will be recertified to fly in the second half of 2020.
Safran <SAF.PA> shares rose on Thursday after Boeing <BA.N> said it would restart production of its 737 MAX jet and announced further cost-cutting measures. Shares in the French aerospace firm, which co-produces the 737 MAX's engines with General Electric <GE.N>, were up 2.2%, while Airbus <AIR.PA> shares were 0.7% higher. Boeing said on Wednesday it was eliminating more than 12,000 U.S. jobs, including 6,770 involuntary layoffs, as the largest American planemaker restructures in the face of the coronavirus pandemic.
May.27 -- Chad Anderson, managing partner of Space Capital, discusses what the scrubbed launch of Elon Musk's SpaceX rocket delay means for NASA and SpaceX on "Bloomberg Technology."
Shares of Spirit AeroSystems (NYSE: SPR) gained 10.7% on Wednesday, as key customer Boeing (NYSE: BA) restarted its 737 Max production line. Spirit's fortunes are closely tied to Boeing, its former parent, and the restarted production is good news for beleaguered Spirit shares. Spirit AeroSystems makes the fuselages for the 737 Max, and the company was having troubles well before the COVID-19 pandemic, due to the aircraft being grounded after a pair of fatal crashes.
The aircraft maker's best-selling plane was grounded in March 2019 after the second fatal 737 MAX crash in five months. Boeing declined to say what the current production rate is. Boeing said last month it expected to resume 737 MAX deliveries in the third quarter following regulatory approvals, with production restarting at low rates in the second quarter before gradually increasing to 31 per month in 2021.
Optimism surrounding the reopening of the U.S. economy appears to be the driving force, although it remains to be seen whether that optimism is warranted. Disney put forth plans to reopen some of its parks in July, while Boeing disclosed that it would layoff nearly 7,000 U.S. employees this week in a bid to cut costs. The pandemic has been a disaster for Disney, which relies on its parks for a significant portion of revenue and profits.
Boeing Co <BA.N> said on Wednesday it was eliminating more than 12,000 U.S. jobs, including 6,770 involuntary layoffs, as the largest American planemaker restructures in the face of the coronavirus pandemic. Boeing also disclosed it plans "several thousand remaining layoffs" in coming months but did not say where those would take place. Boeing is slashing costs as a sharp drop in airplane demand during the pandemic worsened a crisis for the company whose 737 MAX jet was grounded last year after a second fatal crash.
Boeing (NYSE: BA) on Wednesday said it was laying off 6,770 U.S. workers, part of a broader effort to right-size the business and help the company weather the COVID-19 pandemic. The company said in early April it would offer early retirement and buyout packages to its workforce, part of a broader retrenchment in response to an expected fall in demand for new commercial aircraft. CEO Dave Calhoun in a letter to employees detailing the cuts said “I wish there were some other way” but the company believes it needs to adjust employment levels based on expected demand.
U.S. stocks are set to open in positive territory Wednesday, continuing recent gains, amid rising confidence that the coronavirus outbreak is over its worst and the economy is moving closer towards a recovery. At 7 AM ET (1100 GMT), S&P 500 futures traded 32 points, or 1.1%, higher, Nasdaq 100 futures up 65 points, or 0.7%. The Dow Jones Industrial Average cash index is now at its highest level since March 10, the S&P 500 since March 5, while the Nasdaq Composite is at a three-month high.
Boeing Co is expected to announce U.S. job cuts this week after disclosing last month it planned to shed 10% of its worldwide workforce of 160,000 employees, people briefed on the plans and a union said. A spokesman for the Society of Professional Engineering Employees in Aerospace (SPEEA) union that represents 17,600 Boeing employees told Reuters Tuesday the company informed the union it should expect layoff notices on Friday. Boeing declined to comment.
(Bloomberg Opinion) -- Wednesday is looking like a watershed moment in history. The scheduled afternoon launch of a SpaceX Dragon capsule atop a Falcon 9 rocket from Cape Canaveral, Florida, at 4:33 p.m. would mark the first time a privately owned vehicle takes astronauts into orbit.Elon Musk, the billionaire space entrepreneur and chief executive of Tesla Inc., founded SpaceX in 2002. If the launch succeeds — bad weather could push it to Saturday — it would be the company’s crowning achievement to date. Musk’s hope is to enable the colonization of Mars. Delivering two astronauts to the International Space Station suggests that his grand ambition might be more than a pipe dream.Even if not, it will be a breakthrough moment in the commercialization of space. All of a sudden, space tourism seems plausible. If SpaceX can fly astronauts from Florida to the orbiting laboratory, then why couldn’t it fly you and me — soon — to an orbiting restaurant to have dinner above the atmosphere?For years, the U.S. has been buying rides to space from Russia, spending $3.5 billion for 52 rides since 2011. Instead of turning to Russia, NASA will now rely on private-sector spacecraft. For many Americans, this will be a needed boost of pride.A half-century ago, the U.S. sent Neil Armstrong and Buzz Aldrin to the moon, in part with the goal of beating the Soviet Union in the space race. At the height of the Cold War, competition with the U.S.S.R. provided an organizing principle for U.S. efforts in space, and a remarkable amount of government resources were brought to bear in the effort. At its peak in the mid-1960s, $7 out of every $1,000 of national income was spent by the National Aeronautics and Space Administration.Having beaten the Soviet Union, the U.S. lacked a clear objective, and the space program drifted. In 2011, the space shuttle program was terminated. The SpaceX launch will mark a rebirth, the first time astronauts have flown to space from the U.S. in nearly a decade.In these wilderness years, the U.S. gradually forged a new space exploration relationship between the government and the private sector. In 2004, two years after Musk founded SpaceX, a presidential commission concluded that business should play a larger role than it ever had. “In NASA decisions, the preferred choice for operational activities must be competitively awarded contracts with private and nonprofit organizations,” the commission wrote.It also defined a more limited role for the U.S. space agency. “NASA's role must be limited to only those areas where there is irrefutable demonstration that only government can perform the proposed activity,” it said.With the reins for much space activity handed over to commercial interests, the past decade has seen an explosion of investment in a profusion of companies. In a 2018 paper, economist Matthew Weinzierl documented the rise of “space access” companies sending people and payloads into space, “remote sensing” companies providing images of the earth, “habitats and space station companies” providing secure facilities for tourism, research and manufacturing, and “beyond low-earth orbit” companies focusing on asteroid mining, space manufacturing and colonizing the moon and Mars. Weinzierl listed several dozen companies, including SpaceX.Weinzierl reported that investment in startup space-sector firms increased to roughly $2.5 billion per year in 2015 and 2016 from less than $500 million annually during the 2000s. Financing often comes from entrepreneurs like Musk, who are wealthy enough to absorb the high fixed costs needed to enter the space-commerce market.This week’s launch with a crew will heighten commercial interest in space and strengthen market forces already at work. Information about consumer and industry preferences will need to be aggregated. Willingness to pay for space commerce needs to be determined. Resources and capital need to be allocated to their best uses. Innovation needs to be fostered. Only markets can build a commercial sector in space.Investors and entrepreneurs will be needed. They will be seeking the enormous profits promised by space commerce, but will need to tolerate enormous risk, as well. If Musk succeeds today, the risk they face will go down a notch.Indeed, competition is a back story to today’s success. In 2014, NASA awarded contracts both to SpaceX and Boeing. In December, a timing error on its debut flight forced the Boeing Starliner capsule to miss a rendezvous with the International Space Station. Boeing will be scrambling to catch up, keeping the pressure on SpaceX. Blue Origin, founded in 2000 by the billionaire chief executive of Amazon.com Inc., Jeff Bezos, is another notable competitor, working to create reusable launch vehicles to lower the cost of space access.Even as the private sector plays a larger role in space, there are glaring needs for governments to provide basic rules and structure. Public policy in outer space is in its infancy. For example, space debris in earth’s orbit could impose significant damage to private property. It needs to be dealt with, perhaps by assigning property rights or by taxing it. And with low-earth orbit in the hands of the private sector, NASA should feel intensifying pressure to achieve goals more plausibly beyond the reach of commerce, like landing on asteroids and colonizing Mars.The sad backdrop to this historic achievement is the coronavirus pandemic that has taken hundreds of thousands of lives around the world and devastated economies in many countries, including the U.S. The end of the decade-long U.S. retreat from space is like a shaft of light piercing that dark cloud. And when that cloud is a distant memory, SpaceX’s accomplishment will still be with us.Commerce is bringing the U.S. back to the stars.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Michael R. Strain is a Bloomberg Opinion columnist. He is director of economic policy studies and Arthur F. Burns Scholar in Political Economy at the American Enterprise Institute. He is the author of “The American Dream Is Not Dead: (But Populism Could Kill It).”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 plane manufacturers are working with government authorities and academics to study risks on airplanes and how to mitigate them.