Delta Air Lines scrapped an order for 18 Boeing widebody Dreamliner jets valued at $4 billion at list prices, a commitment that was inherited with the company’s 2008 merger with Northwest Airlines, and an indication of the challenges facing the airline industry as demand appears to be sharply cooling off.
Global markets continued their levitation with the UK returning from vacation, pushing the MSCI Asia Pacific Index higher for the first time in seven days, while oil headed for the longest winning streak in almost seven years ahead of the promised OPEC production cut which is set to begin in just days. The USDJPY rose for a second day, pushing US equity futures higher and the DJIA is once again teasing with the 20,000 mark.
As president-elect Trump plays Boeing and Lockheed off against each other, China flexed its military muscles once again - after sending its aircraft carrier Liaoning into the western Pacific - by testing the latest version of its fifth-generation stealth fighter, state media reported on Monday, as it tries to end the West’s monopoly on the world’s most advanced warplanes.
The core thread of next year's relatively downbeat "surprises" from Seabreeze Partners' Doug Kass is that the crowd is wearing Trump-colored glasses and that the single-biggest surprise is how quickly the bloom comes off the Trump flower.
Even the most forthright of politicians will prove a dastardly dealmaker if you scratch the surface hard enough. Trump’s laying bare the idea that not all politicians have a price.Don’t get me wrong: I also enjoy watching the Left lose its collective shit over Trump’s astounding election, but I still feel a great deal of glee watching congressional Republicans fumble all over one another, trying to stay in the good graces of the new president.
"Boeing has announced that its IranAir contract is worth $16.6 billion. However, considering the nature of our order and its choice possibilities, the purchase contract for 80 Boeing aircraft is worth about 50 percent of that amount," said Deputy Transport Minister Asghar Fakhrieh-Kashan, quoted by Iran's IRNA state news agency.
Confirming an earlier report by the NYT, President-elect Donald Trump announced on Saturday afternoon that he plans to dissolve his charitable foundation and distribute its assets, to avoid the appearance of a conflict of interest.
It appears the so-called 'Twitter-spanking' approach of president-elect Trump is working. First Carrier, then Ford, and now, following his earlier jab at Lockheed's F-35 costs by asking Boeing to price-out a comparable F-18, Lockheed Martin CEO Marillyn Hewson has reportedly given Trump her "personal commitment" to "aggressively" drive down costs of the F-35 program. The question is what was the quid-pro-quo in this instance?
"Markets don’t have a purpose any more - they just reflect whatever central planners want them to. Why wouldn’t it lead to the biggest collapse? My strategy doesn’t require that I’m right about the likelihood of that scenario. Logic dictates to me that it’s inevitable..."
European stocks halted two days of declines, with the Stoxx 600 fractionally in the green and Italy’s bonds climbing after Monte Paschi requested a bailout and Italy pledged to provide support for its other ailing lenders. S&P futures were little changed among extremely thin volumes while Chinese stocks dropped amid concerns on higher borrowing costs.
Despite exuberance in soft "survey" data post-Trump, as hope for change re-appears, "hard" data continues to disappoint with Industrial production weakness and now durable goods orders tumbling 4.6% MoM (slightly better than expected -4.8%) - the biggest drop since Aug 2014. Durable Goods New Orders decline YoY once again (-0.5%) as ex-defense orders crashed 6.6% MoM (-2% YoY).