Paris Air Show; Tariff pain; Stocks rise
1. Paris Air Show: All eyes are on Boeing as the Paris Air Show kicks off Monday.
The show is typically an opportunity for Boeing and Airbus to announce orders for hundreds of aircraft. That will be harder this year for the US jetmaker, which has halted deliveries of its 737 Max following two deadly crashes.
Boeing hasn’t announced an order for a commercial jet in more than two months.
CEO Dennis Muilenburg said Sunday that he was disappointed that the company was not more forthcoming about a problem with a safety feature on the 737 Max.
He reiterated that he’s unsure when the Federal Aviation Administration will approve the fix and allow the company to restore service.
Shares of Boeing are down more than 20% from an all-time high in March.
Airlines in Europe are also under pressure. Lufthansa on Sunday issued a profit warning, citing market overcapacity in Europe and competition from low-cost rivals. Shares fell more than 12% Monday. Air France KLM dropped more than 3%.
2. Tariff hearings begin: Companies and trade groups are about to get their say on the wisdom of US tariffs on an additional $300 billion worth of Chinese exports.
The US Trade Representative’s office will hold public hearings on the potential tariffs starting Monday. The hearings are scheduled to stretch into next week.
President Donald Trump has threatened further tariffs on Chinese exports as the trade war between Washington and Beijing heats up. The round currently under debate would include toys, clothes, shoes, appliances and televisions.
Last month, the Trump administration increased tariffs to 25% from 10% on $200 billion worth of Chinese goods.
More than 600 companies and industry trade associations — including Walmart, Costco, Target, Gap and Levi Strauss — wrote to the White House last week urging Trump to end the ongoing trade fight.
“We know firsthand that the additional tariffs will have a significant, negative, and long-term impact on American businesses, farmers, families, and the US economy,” the companies said in the letter.
Chinese companies are suffering as well. Huawei, the Chinese phone and telecoms equipment giant, said Monday that a US export ban will force the company to miss revenue forecasts by about $30 billion over the next couple of years.
3. Markets rise: Global stocks are starting off the week on a positive note.
US stock futures point higher after scraping out a weekly gain on Friday. The Dow is set to increase roughly 30 points, or 0.1%. The S&P 500 and Nasdaq are tracking 0.2% and 0.3% higher, respectively.
In Asia, Hong Kong’s Hang Seng climbed 0.4% and the Shanghai Composite gained 0.2%. Japan’s Nikkei was flat. In Europe, Britain’s FTSE 100 jumped 0.2% in early trading, while France’s CAC 40 inched up 0.1%.
5. Coming this week:
Monday: Paris Air Show, US Treasury foreign ownership report
Tuesday: Adobe earnings, US housing starts, US Senate hearing on tariffs
Wednesday: Fed decision and press conference, earnings from Oracle and Barnes & Noble
Thursday: US leading indicators, Bank of England rate decision, earnings from Kroger and Red Hat
Friday: US existing home sales, Markit flash US manufacturing PMI