Global Markets behind cover | Calamatta Cuschieri

U.S. stocks slipped while Treasuries rallied the most in 10 months as tensions with North Korea mounted and another Atlantic hurricane threatened to make landfall

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Calamatta Cuschieri
6 September 2017, 11:58am
Boeing Co. said that Chinese airlines are likely to buy more than 7,000 planes over the next 20 years, as they grow their fleets
Boeing Co. said that Chinese airlines are likely to buy more than 7,000 planes over the next 20 years, as they grow their fleets
U.S. stocks slipped while Treasuries rallied the most in 10 months as tensions with North Korea mounted and another Atlantic hurricane threatened to make landfall. The Dow Jones Industrial Average fell 234 points at the start of a week packed with central-bank decisions. Oil climbed for a third day and Gold continued seeing rises along with copper and the Yen.

Defense stocks emerged victoriously posting broad gains as mounting geopolitical tensions between North Korea and the West gave rise to investor optimism. Defense stocks also received a boost from the Rockwell Collins-United Technologies deal. On Monday, the two companies said Rockwell would be bought by United Technologies for $30 billion, including debt.

Lego Cuts Jobs

Famous toymaker Lego announces 1,400 job cuts worldwide in the face of falling sales and profits. The figure is 8% of the Danish company's 18,200-strong workforce, but it is not clear where the jobs will go. Lego chairman Jorgen Vig Knudstorp said the group had become an "increasingly complex organisation" following double-digit global growth in the past five years. The company said it needed to make the job cuts as its business had become too complex and needed a "reset".

The company has been increasing sales in new markets, particularly in Asia. Lego said there was double-digit growth in China where there was still "massive upside potential". It has also been diversifying in recent years, most strikingly into a series of Lego movies, the latest being Batman movies depicted by Lego figures. Lego has become the world's biggest toymaker by sales, beating Play-Doh maker Hasbro and Barbie giant Mattel, whose sales are around £1.4bn.

Chinese Demand for Planes

Chinese airlines are likely to buy more than 7,000 planes worth $1.1 trillion over the next 20 years, as they grow their fleets to meet robust demand for domestic and international travel, Boeing Co said in a forecast on Wednesday. Its latest estimate of 7,240 aircraft purchases for the period to 2036 is 6.3 percent higher than the U.S. planemaker’s previous prediction of 6,810 planes last year.

Boeing and European rival Airbus (AIR.PA) have been jostling for market share in China, the world’s fastest growing aviation market, with both opening assembly plants in the country. Both firms have profited heavily from the aggressive fleet expansion plans of Chinese airlines, which are now experiencing falling passenger returns on routes, thanks to stiffer competition and capacity increases.

 

Disclaimer:

This article was issued by Peter Petrov, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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