Boeing troubles ripple across the world. Shares of Boeing and its global suppliers are down. Several analysts are trying to assess the total cost of the planemaker's decision to suspend production of 737 MAX jets in January. According to Reuters, Boeing could continue to burn around $1 billion a month despite the halt and costs will ripple through its supply chain. Among them French group Safran. The group told French newspaper l’Usine that it will not stop producing engines for the B737 MAX, but will slow it down significantly. It is still too early to draw any conclusions on employment, the company said, although the point will be made with the unions by the end of the week.
Defense under surveillance. Airbus' defense division has begun discussions with employee representatives with a view to restructuring this activity, which employs around 34,000 people. Airbus D&S is facing a worrying erosion of its performance. "Order intake, EBIT and cash flow are so worrying that our short-term performance is beginning to compromise our long-term prospects," wrote industry CEO Dirk Hoke in a letter to employees.
It’s official! The directors of Peugeot and Fiat Chrysler approved the merger project of the two automakers via a memorandum of understanding that sets out the main lines of the project. Under the agreement, Dongfeng of China have agreed to reduce its shares in PSA to 4.5% of the future entity.
Down. FedEx stalls post-closing after another warning about its results. The company justifies its underperformance by international trade tensions and the loss of Amazon.com, one of its main customers, which has criticized the quality of its former supplier's services.
Military intelligence. BAE Systems' US subsidiary wins a giant $17 billion contract with US intelligence. This multi-year contract covers military analysis services worldwide.
Ford is reindustrializing. Ford plans to create 3000 jobs in Michigan after the agreement with the UAW union. This involves a $1.5 billion investment in two plants dedicated to pickups and SUVs. This is a first step in the previously announced plan, which provides for 8500 new or maintained jobs for $6 billion of investment.
On sale. Tesla could reduce the price of its vehicles in China by 20% as early as next year, to create a consumer shock. According to information obtained by the Bloomberg agency, the discount would concern the Model 3s built in the new Shanghai plant.
In other news. Nvidia has won contracts from Chinese technology giants Alibaba, Baidu and Didi to supply them with processors. Amazon.com is strengthening its air logistics network by using Sun Country Airlines to operate 10 cargo aircraft. Beike, a start-up financed by Tencent, could go public in 2020. New York Life could afford a Cigna division for $6 billion, the Financial Times reported. Scout24 sells AutoScout24 and Finanzcheck to Hellman & Friedman for €2.9 billion. Bang & Olufsen is further reducing its objectives. ABB Ltd will eliminate the functions of President of Power Grids and Regional Presidents as of December 31.