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Boeing to shrink workforce and production

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Markets summary

The Maltese market closed in the green on Wednesday, with the MSE total index ending the session 0.284% higher to 8,284.500 points. The best performer was Tigne Mall plc with a 16.44% jump to close at 0.85, followed by 2.00% surge of HSBC Bank Malta plc with a closing price 1.02. The biggest fall was seen from Main Street Complex plc, which slid 6.25% to close at 0.45. Followed by a 2.88% and 2.30% drop of RS2 Software plc and Malita Investments plc with a closing price of 2.02 and 0.85 respectively.

European stocks extended their recent rally from their Covid-19 pandemic lows thanks to "positive" Stateside news on a potentially key treatment for the virus. By the end of the trading day, the benchmark Stoxx 600 had gained 1.75% to trade at 347.06, alongside a 2.89% rise for the German Dax to 11,107.74, which had now recouped roughly half of its drop since the start of the Covid-19 outbreak, while Milan’s FTSE Mibtel was adding 2.21% to 18,067.29.

U.S. stocks booked significant gains Wednesday, after Federal Reserve Chairman Jerome Powell vowed to mount a robust and protracted fight to offset fallout from the coronavirus pandemic, which he said “will weigh heavily” on economic activity, employment and inflation in the near term. The Dow Jones Industrial Average gained 2.2%, to settle at 24,633.86, while the S&P 500 added 2.7%, to close at 2,939.51. The Nasdaq Composite advanced 3.6%, ending at 8,914.71.

Boeing to shrink workforce and production as coronavirus slams industry

Boeing Co said on Wednesday it would cut its 160,000-person workforce by about 10%, further reduce 787 Dreamliner production and try to boost liquidity as it prepares for a years-long industry recovery from the coronavirus pandemic that drove its second consecutive quarterly loss.

Plane makers, airlines and suppliers have been left reeling by the pandemic, which has crippled passenger travel and catapulted major economies into recession.

Many of the job cuts, to be completed by the end of year through voluntary and involuntary layoffs as well as natural turnover, will be at the company’s commercial aircraft division, where it was already grappling with a production freeze and year-long grounding of the 737 MAX following two fatal crashes.

Boeing expects to resume 737 MAX deliveries in the third quarter following regulatory approvals, CFO Greg Smith said, with production re-starting at low rates in the second quarter before gradually increasing to 31 per month during 2021.

Further gradual production increases will correspond with market demand. Meanwhile, Boeing will focus on delivering jets that it has already built in order to unlock frozen cash.

This article was issued by Nadiia Grech, Junior Trader at Calamatta Cuschieri. For more information visit, www.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.