Exclusive: Boeing nears $3.5 billion 737 MAX jet deal with Japan's ANA - sources

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This transaction is the first sale in Japan of the newest version of the Boeing 737 family, which was a turning point for European Airbus, five years after the same airline became the first Japanese carrier to choose the competing A320neo.
This also coincides with negotiations between Washington and Tokyo over a potential trade pact, when Japan faces pressure from the administration of US President Donald Trump to reduce its trade surplus with the US.

Boeing declined to comment. ANA cannot be reached immediately for comment. Sources said the deal could be announced on Tuesday, subject to final approval by the airline, subject to anonymity.
The Boeing 737 MAX and Airbus A320neo have collected thousands of orders due to the significant fuel savings offered by the new generation of engines.

But the world's largest aircraft manufacturers continue to conduct fierce market battles, while Boeing refuses Airbus's recent leadership in the market for such medium-range aircraft.

Trump and other senior US officials criticized Japan for trade, arguing that Tokyo is unfair to the United States, sending millions of vehicles to North America, while at the same time blocking imports of cars and agricultural products to the United States.
Japan says its markets for manufactured goods are open, although it protects politically sensitive agricultural products.

In September, Trump and Japanese Prime Minister Shinzo Abe agreed to start trade negotiations on an agreement that appeared, at least temporarily, to protect Japanese automakers from further tariffs on their exports, which account for about two-thirds of Japan's trade surplus of 69 billion dollars from United States.

Japan insists that the new trade agreement on goods will not be a comprehensive free trade agreement, but US Trade Representative Robert Leithizer said that last year he sought to conclude a free trade agreement requiring Congress approval.


United Tech profit beats forecasts on aerospace jump

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Like other major manufacturers in the United States, UTC, a manufacturer of aircraft engines Pratt & Whitney, Carrier air conditioners and Otis elevators, benefited from the air traffic boom and record global sales of commercial aircraft.

Revenue growth of 24% and 29%, respectively, for Pratt & Whitney and parts manufacturer for aircraft Rockwell Collins, heralds a good planned division next year, reducing the company to its main aerospace business and highlighting the rest.

"We are seeing truly steady trends in the aerospace industry with continued growth (air traffic) and an increase in production on both Boeing and Airbus aircraft,” said Greg Hayes, CEO.
Investors met the plan to split into three parts with skepticism, when it was made public last November along with the completion of Collins’s purchase. Since then, stocks have fallen by 14 percent.

Wednesday results raised shares by 7.4 percent.

Analysts say that good results and a full-year outlook are likely to increase confidence in UTC's ability to improve cash generation and profits ahead of the collapse next year.

"Expectations were low, stocks did not justify themselves, and we believe that street forecasts for 2019 (earnings per share) should increase by 5–10 cents,” said Nigel Coe, analyst for Wolfe Research.

The company predicts adjusted earnings per share in 2019 between $ 7.70 and $ 8.00, the midpoint of which significantly exceeds the average price of $ 7.80, according to IBES data from Refinitiv.

Collins' contribution to earnings in 2019 is currently expected to be 35 cents per share, compared with 15-25 cents per share earlier, largely due to better operating efficiency.

The company expects sales growth in 2019 in the range from low to high single digits in all directions.

While Otis has suffered in the past from demand-related problems in China, the company said that the ongoing infrastructure spending by the Chinese government will help Otis, as well as Carrier, in the upcoming quarters.

"We believe that the government’s attention to infrastructure spending will help the market as a whole. It is in their interest to try to achieve a growth in gross domestic product above six percent, ”said financial director Ahil Johri.
On an adjusted basis, United Technologies earned $ 1.95 per share, up from $ 1.53.

Net sales grew by 15.1 percent to $ 18.04 billion, surpassing estimates of $ 16.91 billion.


U.S. sanctions on Venezuela would reroute crude, leave refiners short

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US refineries, which depend on Venezuela’s heavy oil, will have even more problems with supplying supplies, as Canadian and Mexican reserves are often not as depreciated and limited in stock.

The United States views steps to curb Venezuela’s oil supplies, which account for almost all of the country's exports, in response to the re-election of President Nicolas Maduro, which was widely perceived as a hoax.

Washington recognized opposition leader Juan Guaydo as president of Venezuela when protests against Maduro erupted across the country. He is also considering sanctions on oil supplies, and this step has not yet been carried out, sources in an energy company told Reuters on Wednesday.
According to the US Department of Energy, in 2018, Venezuela, on average, exported about 500,000 barrels of oil per day to the United States. The share of the United States in its exports in recent years has declined, as more and more supplies go to Russia and China.

SCHEDULE: Venezuelan oil exports to the USA: tmsnrt.rs/2S4YIXB

These deliveries are carried out mainly through debt repayment structures for oil, since the output of the state-owned oil company Petróleos de Venezuela, SA, known as PDVSA [PDVSA.UL], fell to almost 70-year lows during the national economic crisis. According to OPEC secondary sources, production in Venezuela has halved from 2016 to less than 1.2 million barrels per day.

After the introduction of sanctions, the country may seek additional agreements with Turkey, India or other Asian countries, said one of the Venezuelan oil traders.
"It will be costly for Venezuela, but ultimately they will be able to sell this oil to Asia at a discount. There will be a period in the middle when they have difficulty selling these barrels, ”said Francisco Monaldi, a research fellow for Latin American energy policy at the Baker Institute of Public Policy at Rice University in Houston.

SCHEDULE: Leading US Importers of Venezuelan Oil: tmsnrt.rs/2RYGk2E

Although the United States produces almost 12 million barrels of oil per day, complex refineries on the Gulf Coast need more heavy oil to produce diesel fuel and other high-yield products and cannot simply process light oil.

Prices for heavier US grades, such as Mars Sour WTC-MRS, American crude produced on the shelf, and heavy crude Louisiana sweet oil WTC-HLS, have increased as buyers compete for supplies. According to Refinitiv Eikon, on Tuesday, Mars was trading at a premium of $ 6.25 in relation to crude oil on Tuesday - a five-year high.

"This would make a limited market even tougher. If this happens, it will be an unequivocal obstacle for refiners who are already trying to find supplies, ”said Bob McNally, president of Rapidan Energy Group, an energy consulting company in Bethesda, Maryland.
SCHEDULE: Venezuelan oil exports to US refineries: tmsnrt.rs/2S42EI5.

According to traders, the United States may need to sell oil from the US Strategic Oil Reserve to cover supply shortages, since additional supplies are provided through Canada or Mexico.

Sanctions may also include the export of petroleum products from the United States to Venezuela, used for blending with Venezuelan heavy oil.


Airbus loses annual jet order race to rival Boeing

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Airbus placed 747 orders for 2018, which is 33 percent less than the previous year, including 135 on the A220, which he took over from Bombardier in July. Boeing won the order race for the first time since 2012 with 893 net orders.

Airbus delivered 800 aircraft, an increase of 11 percent, including 20 A220 models, leaving Boeing the world's largest aircraft manufacturer in terms of production for the seventh consecutive year.

Despite the fact that Boeing did not reach its supply target, and Airbus previously lowered its target due to tensions in the industry’s global supply chain, high demand for passenger aircraft increased total shipments by 8 percent, which was the fastest pace in six years. .

Wall St. rebounds on robust jobs report, dovish Powell remarks

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At the session symbolizing increased volatility, which swept the markets for several weeks, all three major US stock indexes rose by more than 3 percent in one of the most significant gains in recent years. The profit more than wiped out the losses of the previous session and was due to the technology sector, which rebounded from its largest one-day decline in the last seven years after Apple Inc. (AAPL.O) cut its sales forecast.

Since Christmas’s 20-month low, on the eve of Christmas, due to rounding errors, which are considered to be a bear market, the S & P 500 .SPX index has grown by 7.7%. Friday's advance, measured by the number of stocks rising against falling, was the largest in eight years.
The main catalysts for growth were the monthly wage report in the United States, which surpassed economists' estimates, according to which the largest number of jobs was created in 10 months, and the comments of the Fed Powell.

In comments to the American Economic Association, Powell reassured market nerves with assurances that the central bank is sensitive to the risks that worry investors, and is not on a given path of raising interest rates.

Speaking after months of instability in the global bond and equity markets, Powell avoided some communication errors that worried rather than reassured investors in the past. He also promised to stay in his post, even if asked by President Donald Trump, who repeatedly scolded the person he appointed to work, for repeated increases in the Fed rate.
"(Powell) says the right thing: that the Fed is ready to change, that it listens carefully, that it is sensitive to the messages that the market sends,” said James Eti, senior investment manager at Aberdeen Standard Investments in London. "This is good news for a market that is beginning to absorb itself out of fear."

However, others have warned that the rollercoaster ride this week could be a new norm.

"Despite the fact that today such days seem good, we still foresee further economic weakness and expect the market to continue to grow," said Eric Friedman, investment director at the American bank Wealth Management in Minneapolis.

News that China and the United States will hold trade talks in Beijing next week helped tariff-vulnerable industrial leaders lead the Dow rally, led by Caterpillar Inc. (CAT.N), United Technologies Corp (UTX.N), 3M Co ( MMM.N). ) and Boeing Co (BA.N).
The Dow Jones Industrial Average .DJI rose 746.94 points, or 3.29 percent, to 23.433.16, the S & P 500 .SPX added 84.05 points, or 3.43 percent, to 2.531.94, and The Nasdaq Composite .IXIC index added 275.35 points, or 4.26 percent, to 6,738.86.

All 11 major sectors of the S & P 500 ended the session in positive territory: technology, communication services .SPLRCL, materials .SPLRCM and industrial shares .SPLRCI showed the largest percentage increase.

Apple shares rose 4.3 percent and led to an increase in the technical sector, as the company began to recover positions lost after a warning about a decrease in revenue in the holiday quarter on Wednesday.

Each of the FAANG impulse promotions, a group that includes Facebook Inc (FB.O), Apple, Amazon.com Inc (AMZN.O), Netflix Inc (NFLX.O) and the parent company Google Alphabet Inc (GOOGL.O), traded above.

Netflix jumped 9.7 percent after Goldman Sachs added streaming service to its "belief list.”

The number of advanced issues exceeded the number of recessions on the NYSE at a ratio of 7.64 to 1; on the Nasdaq, a ratio of 6.22 to 1 favored advancement.

The S & P 500 did not publish new 52-week highs and 1 new minimum; The Nasdaq Composite has recorded 5 new highs and 19 new lows.

Volume on US exchanges was 8.68 billion Shares compared with an average of 9.14 billion. Over the past 20 trading days.


U.S. sets new March 2 date for China tariff increases amid talks

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The change has been made to the federal register since the previously scheduled effective date of January 1, 2019, to increase to 25 percent from 10 percent.

The notice does not affect the 25 percent tariff rate already applied to Chinese technological products in the amount of $ 50 billion, including semiconductors, printed circuit boards and other electronic components, cars and vehicles.
This submission was added to documents related to the USTR "Section 301” investigation regarding intellectual property practices in China, which became the basis of US tariffs on Chinese goods, which led to retaliatory strikes from Beijing.

This is due to the change in the new US-China agreement "to achieve the elimination of the actions, policies and practices covered by the investigation" after the meeting on December 1 between US President Donald Trump and Chinese President Xi Jinping in Buenos Aires. ,

The USTR statement did not indicate any expected results of the negotiations. It referred to the goals set out in a statement published by the White House to negotiate China’s structural changes over a 90-day period regarding enforcement of technology, protection of intellectual property, non-tariff barriers, cyber-invasions and theft, services and agriculture.
The USTR notice did not mention China’s moves this week to resume suspended soybean purchases in the United States or suspend a 25% fine on American cars and auto parts.

The official delay in raising the tariff rate was of little comfort for the US technology sector.

The Consumer Technology Association said Friday that US tariffs on technology imports from China currently cost $ 1 billion a month, and duties on fifth-generation mobile technology products reach $ 122 million in October, compared with $ 65,000 a year earlier.


GoPro to move U.S.-bound camera production out of China

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Earlier, the company stated that it was "very actively” responding to the tariff situation, as the United States and China intensified their bitter trade war, in which both countries introduced tariffs for hundreds of billions of dollars in imports of each other.

GoPro said that the production of international cameras will remain in China.
"It is important to note that we own our own production equipment, while our production partner provides the equipment, so we expect to do this with relatively little cost,” said CFO Brian McGee.

In a statement on the company's income in November, GoPro stated that it has the opportunity to withdraw production in the United States from China in the first half of 2019, if necessary.

GoPro is trying to increase the demand for its brand-name action cameras — once mandatory for surfers, parachutists, and other action fans — as competition intensifies.
Last month, the company forecast revenue in the fourth quarter below analysts' estimates, as it struggles with declining demand for its products.

The forecast turned out to be disappointing, as the company released new low-cost models of its flagship camera Hero for the holiday season.

However, GoPro said it would be profitable in the fourth quarter, and expects that the "low inventory in the channel” will be well positioned in the first quarter.


U.S. to conduct additional Keystone XL pipeline review

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The so-called Supplemental Environmental Impact Statement was appointed by Judge Brian Morris of the US District Court in Montana in his November 8 ruling, which blocked the construction of a pipeline designed to deliver heavy Canadian oil sands to the United States.
Morris said in his ruling that Keystone XL's previous environmental analysis does not match the "hard look” on the cumulative effect of greenhouse gas emissions and the impact on land resources of Native Americans.

A pipeline worth $ 8 billion, which is supported by Canadian oil interests and US refineries, but opposes landowners and environmentalists, has been under review for a decade.

President Donald Trump announced permission for the project shortly after he took office. Former President Barack Obama condemned the construction of the gas pipeline, saying that little would help American consumers and will add greenhouse gases.

TransCanada spokesman Terry Cunha said that after the judge’s decision was announced, the State Department announced an additional review.

Earlier this week, TransCanada asked Morris, a district court judge, to allow him to resume some pre-project activities at the US level, blocked by the original ruling.
Morris’s decision on Thursday gave Calgary, an Alberta-based company permission to resume some pipeline project activities, including project development work and meetings with interested parties.

Cunha said it was not allowed to resume work on field conditions, such as moving pipes and equipment, preparing workplaces for campgrounds or carrying out road upgrades. Morris is going to decide on work after December 5th.

"It’s too early to say what the injunction on the Keystone XL highway will mean, but we are still confident that the project will be built,” Cunha said.


eBay polishes plans for online second-hand luxury watch market

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"By the end of 2019, we hope that a full range of services will be available for all luxury watch sellers and buyers on the platform,” said James Hendy, in charge of eBay authentication services for luxury goods, in a recent interview with Reuters.

While sales of watches grew more slowly, the used market was reinforced by younger consumers buying online with pleasure, prompting Cartier Richemont (CFR.S) to buy a used Watchfinder.co.uk platform.
Hendy said that the volume of eBay transactions for used luxury watches will exceed $ 1 billion in 2018. This compares with a volume of about 1.3 billion euros expected from German rival Chrono24 by its co-CEO and founder Tim Strake.

eBay allowed approved professional retailers, such as Watchbox, to list watches on eBay with an authentication tag in September, expanding its eBay authentication program from bags to luxury watches.

And from the first quarter of 2019, eBay will allow consumers to instantly sell their luxury watches on the site, adding authentication services to cover all transactions between consumers and consumers (C2C) in the second half of the year.

Swiss luxury watch brands have not hesitated to sell online for a long time and are used to looking at platforms such as eBay or the specialized websites Chrono24 or Chronext as troubles, because watches that retailers find difficult to sell often turn out to be online at a discount.

However, eBay is now considering partnerships with luxury brands as it is aimed at a market that is estimated to cost about 17.6 billion Euros (20 billion US dollars) when jewelry is included, says a recent Bain & Company report.

The market used was reinforced by younger consumers who were happy to shop online, prompting watch manufacturers such as Richemont or Audemars Piguet to enter the market.
"I believe that in the next few years, the primary and secondary markets are coming together,” said Hendy, adding that brands working with eBay will be able to directly interact with customers through their platform.
(1 US dollar = 0.8748 euros)

(This story corrects the conclusion about deleting the link to "auction”, also deletes the link to Watchfinder, paragraph 5)


Oil slide, China worries send Wall Street tumbling

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Oil prices fell by almost 1.0 percent on Friday, and since 1984, the longest period of daily decline has been observed, growth in world supplies and evidence of a slowdown in the global economy.
This week, the United States officially imposed punitive sanctions on Iran, but granted temporary refusals to eight countries, which allowed them to continue to buy oil from the Islamic Republic.

"Oil scares the market. If oil prices fall, this is another sign that the global economy will slow down growth, ”said Chris Zakcarelli, chief investment officer of the independent adviser alliance in Charlotte, North Carolina.
The Dow Jones Industrial Average .DJI fell by 201.92 points, or 0.77 percent, to 25,989.3, the S & P 500.SPX lost 25.82 points, or 0.92 percent, to 2,781.01, and Nasdaq Composite .IXIC dropped 123.98 points, or 1.65 percent, to 7.406.90.

The S & P .SPSY energy index fell 0.4 percent after falling 2.2 percent in the previous session, when US oil prices LCOc1 confirmed a bear market, dropping 20 percent from their highest high. [OR]

"I think we are going to go lower than the October minimum. Economic growth is slowing, but it will not be slow enough to stop the Fed from hikes, ”said Jim Paulsen, chief investment strategist at Leuthold in Minneapolis.

Investors were risk averse, sending the S & P technology index. SPLRCT fell 1.7 percent as Apple Inc. (AAPL.O) fell 1.9 percent and semiconductor stocks .SOX fell 1.9 percent.

Eight of S & P's 11 major sectors closed the day lower.

Consumer goods index. SPLRCS was the biggest gain with a 0.5 percent increase, while other defensive sectors, such as utilities. SPLRCU and real estate. SPLRCR was digging a small profit.
Amid a trade policy dispute between Washington and Beijing, Chinese data showed that producer inflation fell for the fourth consecutive month in October amid falling domestic demand and manufacturing activity, while auto sales fell for the fourth consecutive month.
Chinese data turned global stocks into a tailspin and put pressure on sectors sensitive to trade and commodities. The US industrial sector .SPLRCI fell 1.0 percent, and .SPLRCM materials fell more than 1.4 percent.
US Federal Reserve policies left interest rates unchanged on Thursday, as expected, and her political statement signaled that interest rates are higher, even when he noted that business investment is moderate.
Recent data on producer price inflation in the United States did little to ease concerns about rising interest rates, which this year impeded inventory growth.

Shares of tobacco companies fell after the official said that the US Food and Drug Administration will ban the sale of electronic cigarettes with fruits and sweets in stores and gas stations.

The Altria Group (MO.N) fell 2.98 percent lower, while the British American tobacco company fell 4.2 percent.

Declining issues exceeded the ratios of 2.22 to 1 expected on the NYSE; on the Nasdaq, a ratio of 2.95 to 1 favored biases.

In the S & P 500, 29 new 52-week highs and 8 new lows were published; The Nasdaq Composite has recorded 46 new highs and 113 new lows.

On the US stock exchanges 7.93 billion. Shares have changed in comparison with 8.39 billion. On average over the last 20 sessions.