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Troubled Boeing Stays Close To The Ground At A Major UK Air Show

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4 months ago

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LONDON — European planemaker Airbus wants to showcase its newest passenger jet with daily flight demonstrations at one of the world’s largest aviation trade shows. However, due to an ongoing safety and manufacturing issue, rival Boeing will keep a low profile at the Farnborough International Air Show.

The ailing American company is not bringing any jetliners to participate in aerial demonstrations at the show, which begins Monday near London. Before the show’s opening, the business stated that it remained focused on resolving the concerns of US regulators and “meeting our customer commitments” rather than selling many airplanes.

Boeing’s Chief Operating Officer, Stephanie Pope, stated that the company was focused on “predictable deliveries” of planes to airline customers and increasing production of its troublesome 737 Max jets to 38 per month.

Troubled Boeing Stays Close To The Ground At A Major UK Air Show

“This is a transformative change. And as you all know, we have considerably slowed down our factories to implement that transition,” Pope, who also serves as CEO of Boeing’s commercial jets segment, told reporters on Sunday.

The Farnborough exhibition, held every other year in conjunction with the Paris Air Show, has long been a platform for aerospace businesses to showcase their latest technological advancements and for manufacturers to announce a flurry of orders for new passenger, cargo, and military aircraft. Organizers expect approximately 1,500 exhibitors from 42 nations and 80,000 visitors during the week-long exhibition.

Boeing’s low-key presence at this year’s event reflects the company’s ongoing problems.

In a news statement, Boeing Global President Brendan Nelson stated that the business has “reduced our commercial airplanes display and flight demonstrations at the show, and will focus on new technology, sustainability, security, and services solutions.”

The airline has been suffering after a door plug broke out of an Alaska Airlines 737 Max 9 during a flight earlier this year, reigniting safety concerns that had subsided after two Max jet crashes in 2018 and 2019 killed 346 people in Indonesia and Ethiopia.

The panel’s collapse and a slew of current and former employees coming out to allege quality-control flaws and retaliation against whistleblowers reopened federal investigations. The Justice Department has reinstated a criminal fraud charge against Boeing in connection with the deadly crashes. Boeing agreed to plead guilty this month as part of an arrangement that requires an independent monitor to oversee the company’s compliance.

Boeing’s leadership is in flux as it hunts for a successor to CEO David Calhoun, who will step down at the end of the year. Calhoun apologized to crash victims’ families during a questioning by US lawmakers last month about the company’s safety record.

“Hopefully, a new CEO next year will make that horrible situation better, but until then, people are just circling the wagons and doing what they can to keep the company running,” said Richard Aboulafia, a long-time aerospace analyst and now a consultant at AeroDynamic Advisory. “It’s a tragedy and an embarrassment, but hopefully this air show will be remembered as the darkness before the dawn.”

Boeing’s “customers have been very supportive,” said Pope, Calhoun’s potential successor. But “it doesn’t change the fact that we have disappointed them. And we’ve had an impact on their business.

“We are a stable company,” she explained.

While Airbus will participate in the aerial displays over Farnborough with its new passenger jet, the A321XLR, Boeing will not have any passenger jets performing flypasts for the air show crowds but one of its F-15 fighting jets. This is in contrast to the previous exhibition in 2022 when the American corporation showed the most recent models of its 777 and 737 Max aircraft during press visits and flights.

Static displays of aircraft parked on the tarmac are popular among air show spectators. Airbus will have three passenger jets on the ground, owned by its airline customers, whereas Boeing will only have one, a 787 from Qatar Airways.

“Normally, they’d be there absolutely in force, taking every opportunity for publicity and flying aircraft,” said airline expert John Strickland of JLS Consulting.

This time, the company has “got to be seen as being more contrite, that they’re focusing on safety, getting their house in order, getting back to winning back trust and respect as a dependable manufacturer of safe, commercially driven aircraft,” Strickland continued.

Despite having its wings clipped and curtailing production following the Alaska Airlines tragedy, Boeing announced fresh deals for widebody jets. According to Boeing, Korean Air plans to buy 20 777s and 20 787 Dreamliners, while Japan Airlines has committed to order 10 787s, with options for an additional 10 Dreamliners. Commercial airlines are hungry for more planes as demand for air travel recovers following the coronavirus outbreak, and Boeing and Airbus hold a market duopoly.

Troubled Boeing Stays Close To The Ground At A Major UK Air Show

Both manufacturers are already dealing with a backlog of orders that will take years to clear. Boeing’s monthly order figures have fallen, allowing Airbus to increase its sales lead discreetly. The Toulouse, France-based manufacturer, has been developing the A321XLR, a fuel-efficient aircraft that is gaining traction among airlines because it will allow them to fly cheaper narrow-body jets on long-haul flights.

The model is behind schedule but is anticipated to be certified later this year. It has already received over 500 orders from American Airlines and Air Canada.

Also at Farnborough, air taxi firms, including Boeing’s Wisk Aero, will showcase electric aircraft that might soon take to the skies, though they will only do demonstration flights. Several businesses have been developing aircraft that take off and land vertically, promoting them as a sustainable mode of transportation for densely populated cities or locations with underdeveloped mass transit networks.

In a possible indicator that air taxis are becoming a reality, German startup Lilium announced last week a deal to sell 50 aircraft to aviation conglomerate Saudia Group, which operates Saudi Arabia’s national airline, for an unknown fee. The first delivery is scheduled for 2026.

SOURCE | AP

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Trudeau Accelerates Bond Selloff Over Mass Spending Fears

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3 days ago

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2024-11-23

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Trudeau, Bond Market
Trudeau accelerated a bond selloff due to expectations of faster growth and a deeper deficit

Prime Minister Justin Trudeau has accelerated bond selloffs, citing fears of a larger deficit over his GST giveaway. Investors were concerned he was returning to his free-spending strategy as an election loom.

On Thursday, Trudeau unveiled a C$6.3 billion ($4.5 billion) tax relief and rebate program. It includes a two-month moratorium on federal sales tax on various commodities such as Christmas trees, wine, toys, and books and a C$250 check for almost 19 million Canadians, or over half of the population.

The declaration looked to mark the end of a brief period of fiscal restraint, as Finance Minister Chrystia Freeland committed to contain budget deficits to prevent stoking inflationary pressures.

Now that inflation has returned to the Bank of Canada’s 2% target, policymakers have reduced the benchmark interest rate by 125 basis points since June.

Trudeau’s Liberal government sees an opportunity to dig deeper into the public purse, but some analysts believe investors are keeping a careful eye on the country’s debt.

Bonds continued to fall on Thursday following the announcement, as the 10-year benchmark yield rose 7 basis points to 3.457%. After retail data showed a rise in consumer spending on Friday, it increased by up to 3.488%.

As the Trudeau government considers additional fiscal spending, concerns about Canada’s financial situation persist.

Budget Shortfall

Freeland has yet to publish final spending and income figures for the fiscal year that ended in October. Parliamentary Budget Officer Yves Giroux predicts a deficit of C$46.8 billion, much exceeding Freeland’s self-imposed aim of a C$40 billion shortfall.

Despite promises to reduce deficits, the Trudeau government continues to increase expenditure. This year’s budget includes a new capital gains tax inclusion rate to balance the cost of new housing and social initiatives.

This sparked anger from investors and entrepreneurs but allowed Freeland to present a consistent deficit despite significant spending.

The recent declaration indicates that Trudeau’s government no longer feels restrained in its capacity to use economic stimulus to restore favor.

Pierre Poilievre’s Conservatives have led most surveys by roughly 20 points for over a year. They have pounded the prime minister on affordability and promised to reduce taxes, especially income taxes. An election is expected in late October 2025.

The sales tax break will run from December 14 to February 15. The left-wing New Democratic Party intends to support it but has stated that it will continue to advocate for its permanent implementation and expansion to include additional items.

Let the Bankers Worry

Following Trudeau’s announcement, traders in overnight swap markets reduced their bets that the Bank of Canada will drop interest rates by 50 basis points for the second time in December, lowering the odds to fewer than 25% by the end of Thursday. As of late Friday morning, the odds were less than 17%.

The announcement also encouraged several experts to improve their short-term projections for Canada’s GDP. Analysts at the Bank of Montreal predict that the country’s GDP will increase at a 2.5% annualized rate in the first three months of 2025, up from 1.7%.

Speaking to reporters on Friday, Trudeau praised his government’s approach to program expenditure, claiming it fosters optimism and possibilities for families and the middle class.

“We’re focusing on Canadians. “Let the bankers worry about the economy,” Trudeau stated.

Related:

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

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Forced Sale Google Chrome Could Fetch $20 Billion

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4 days ago

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2024-11-21

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Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

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Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

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Bitcoin Has Set a New Record And Is Approaching $100,000.

Published

4 days ago

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2024-11-21

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Bitcoin

(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

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