have in common? The three men went to the Paris air show last week and found each other. Amazon agreed to rent 15 Boeing 737 cargo planes to GECAS, a shortcut to GE Capital Aviation Services. The agreement reveals much about the very different situations of the three companies.
Amazon's logistics ambitions make it more competitive than the customer
"These new aircraft create additional capacity for Amazon Air," said Dave Clark, vice president of global operations at Amazon. "By 2021, Amazon Air will have a portfolio of 70 aircraft flying in our dedicated air network" (700 flights from FedEx). Amazon also holds mandates to acquire up to 39.9% of Atlas Air Worldwide aircraft lender and builds its own express delivery service. hub in Kentucky.
The deal with Amazon is not a big deal for GE. In Paris, GECAS officials described the aircraft leasing industry as "difficult," with many supporters conducting their business. But they think they have the right kind of airplanes in their wallets. Analysts speculated that GECAS could be sold to help finance the upturn of GE CEO Larry Culp, which GE denies.
Boeing's major transaction in Paris consisted of a request for 200 MAX 737 jets signed by the controlling company of British Airways.
– The first for the jet since an Ethiopian Airlines plane crashed in March. Despite careful review, it means the industry expects the MAX to be repaired and operational again by 2019.
Stocks fly at different altitudes. Amazon is a Wall Street darling, with all the analysts covering it by classifying it as a buy. Opinion on GE is polarized, bears predicting that the bond will fall to $ 5 per share and bulls to $ 15. Boeing shares have an average of 26% per year for 10 years and then collapsed after the MAX crisis. Maybe Paris is the sign of better days.
Floating stocks above the resistance
Stocks broke records on Thursday as the Federal Reserve and the European Central Bank vowed to ease as needed, amid President Donald Trump's threats of war and criticism of Fed Chairman Jerome Powell. Bond yields and the dollar fell and oil rose. During the week, Dow industrialists increased 2.4% to 26,719.13; the S & P 500 index rose 2.2% to 2,950.46; and Nasdaq Composite rumbled 3% at 8031.71.
Trump in the central bankers
The Fed has left rates unchanged, but the suggested cuts are imminent. Trump would have said he could dismiss Powell from his Fed presidency. Powell rejected the legality of this move. ECB chief Mario Draghi said his bank would cut rates if inflation did not rise. Trump, who continued to ask the Fed to cut rates, tweeted that Draghi was lowering the euro and making it "unfairly easier for the eurozone to compete with the United States."
The Growing Fears of War
US tensions with Iran intensified. The United States has sent 1,000 more troops to the Middle East, and Iran has announced that its nuclear enrichment efforts will soon exceed the limits of the nuclear deal. On Thursday, Iran shot down an American drone and Trump ordered an air strike in retaliation and canceled it. In Washington, interim Defense Secretary Patrick Shanahan resigned after news of incidents in his country were announced. Former Raytheon lobbyist and current Army Secretary Mark Esper has replaced him for the time being.
Rates, come and go
The US trade representative opened a public hearing on additional tariffs with China. Trump and Chinese President Xi Jinping decided to meet at the Group of 20 summit in Japan. Meanwhile, India raised customs duties on US goods by $ 220 million – retaliation for aluminum and steel contributions early in the year and the US decision to lift a waiver of Indian imports.
On the eve of a rally in Florida for the launch of his reelection campaign, Trump announced a program to expel migrants: "Next week, ICE will begin the process of eliminating the millions of illegal immigrants who illegally entered the United States. ICE has announced that it will start targeting 2,000 families on Sunday.
A victory for the demonstrators
Carrie Lam, the city's chief of government, apologized and vowed that legislation on the extradition of criminal cases to China would not be enforced without public support. This decision was widely seen as a setback for China and its president. Activists continue to call for Lam's resignation.
Facebook has announced a free source digital currency called Libra, backed by corporate partners, which will begin next year through a non-profit association. The social media giant plans to create a subsidiary, Calibra, to create a digital wallet to store and trade the currency. Bitcoin exceeded $ 9,000 in news.
No slack in play
Slack Technologies shares rose nearly 50 percent since its debut on Thursday, valuing the company at $ 23 billion. Slack used an unusual direct listing instead of a classic initial public offering.
– Robert Teitelman and Dan Lam