< Back to News

Boeing ousts chief executive

Financial_Markets_4

Market summary

Maltese market closed in red on Monday, with MSE total index ending the session 0.319% lower to 9,356.964 points. There were no positive performance on the equity market, but biggest fall of 3.23% was seen from FIMBank plc which closed at 0.60. Followed by BMIT Technologies plc and PG plc, both fell 1.94% and 1.64% to close at 0.505 and 1.80 respectively. Bank of Valletta plc, GO plc, Malta International Airport plc and Malta Post plc were active but closed unchanged.

Stocks on the Continent finished on a mixed note, despite news that China was moving ahead with pledges to open its economy further. By the end of the trading day, the pan-European Stoxx 600 had drifted 0.03% lower to 418.27 while the French Cac-40 had risen 0.13% to 6,029.37 and the German Dax had slipped 0.13% to 13,300.98.

Wall Street stocks turned in another round of record closes on Monday, ahead of the Christmas break in trading later in the week and as investors reacted to the news of the immediate departure of Boeing’s chief executive officer. The Dow Jones Industrial Average was up 0.34% at 28,551.53, the S&P 500 added 0.09% to 3,224.01, and the Nasdaq Composite was 0.23% firmer at 8,945.65.

Boeing fires CEO Muilenburg to restore confidence amid 737 crisis

Boeing Co has fired Chief Executive Dennis Muilenburg after repeatedly failing to contain the fallout from a pair of fatal crashes that halted output of its best-selling jetliner and tarnished its reputation with airlines and regulators.

Boeing – beset by one setback after another following the two air disasters – dropped Muilenburg as it became increasingly clear that he was making little headway resolving a crisis that has cost it $9 billion, hurt suppliers and airlines and now threatens to cut the pace of U.S. economic growth.

Chairman David Calhoun, a former General Electric executive who has been on the Boeing board since 2009, will take over as CEO and president, effective from Jan. 13, Boeing said. Until then, Chief Financial Officer Greg Smith will run the world’s largest plane maker.

Boeing shares, which have dropped more than 20% over the past nine months, closed up 2.9%.

The 737 MAX has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people within five months.

Boeing is struggling to mend relations with the U.S. and international regulators it needs to win over to get the jet back in the air.

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, https://cc.com.mt/. The information, view and opinions provided in this article are 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.