Emirates Airline Orders 95 Boeing Jets Worth $52 Billion
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Boeing climbed 4% after Dubai-based Emirates Airline said it would buy 95 aircraft from the jet maker. The Dubai-based carrier has placed fresh orders for 55 of the U.S. aircraft maker’s 777-9 jets, 35 777-8 jets and five 787 Dreamliner jets, Boeing and Emirates said Monday. Emirates said the jets were worth $52 billion. The companies didn’t disclose the financial details of the transaction, but buyers typically receive steep discounts in such orders. The order will expand Emirates’ 777X backlog to 205 jets and take its 787 order book to 35 jets. The airline is the biggest operator of Boeing 777 aircraft globally, with almost 150 currently in its fleet. The 777-9 seats 426 passengers in a typical configuration and has a range of 13,510 kilometers, while the 777-8 seats 395 passengers and can fly up to 16,190 kilometers, according to Boeing. The aircraft, which has been delayed for years amid regulatory setbacks and other challenges, is a refresh of a bestselling model that first flew in 1994.
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On Monday, the SMI gained 0.3 per cent to 10,590 points. Among the 20 SMI stocks, there were 14 price gainers and 6 price losers. A total of 19.03 (previously: 18.08) million shares were traded. Richemont continued its downward slide and lost a further 2 per cent. On Friday, the share price fell by more than 5 per cent because the luxury goods manufacturer grew more slowly in the first half of its financial year. Richemont spoke of a volatile environment and global uncertainties. Swatch closed unchanged on Monday. Financial stocks showed a mixed trend. While UBS fell 0.7 per cent, the insurance stocks Zurich Insurance (+0.8%), Swiss Re (+1.3%) and Swiss Life (+1.1%) rose. Holcim was the strongest stock in the SMI with a 1.5 per cent increase. ABB rose by 1.2 per cent. The pharmaceutical giants Roche and Novartis were slightly behind with premiums of 0.8 and 0.9 per cent respectively.
The European stock markets got off to a flying start in what promises to be a busy week of macroeconomic events on both sides of the Atlantic. On Monday, the Stoxx Europe 600 index gained 0.8% to 446.6 points. In Paris, the CAC 40 and SBF 120 were both up 0.6%. The DAX 40 in Frankfurt advanced by 0.7% and the FTSE 100 in London added 0.9%. Orpea (-14.5%) announced that its first capital increase, worth around €3.9 billion, would begin on Tuesday and end on 23 November 2023 inclusive. Digital assistance services provider Solutions 30 (+10.9%) has won a contract with GlasfaserPlus to roll out a fibre-to-the-home network in Germany. Société Générale (+1.9%) is considering selling its German consumer credit business Hanseatic Bank, Bloomberg reported on Friday evening. The aerospace sector was closely watched as several contracts were announced at the Dubai Airshow, which runs from Monday to Friday. Airbus gained 1.4% and Safran advanced 1.3%. Thales and Dassault Aviation climbed 1.8% and 2.4% respectively. Industrial metals recycling specialist Derichebourg (+0.9%) suffered a cyber attack, which also targeted its subsidiary Derichebourg Multiservices, on the night of 9 to 10 November. Solvay (-0.1%) presented the strategy and outlook for the two entities resulting from its demerger, planned for the end of this year. Syensqo, bringing together the group's speciality chemicals assets, forecast average annual organic sales growth of between 5% and 7% between 2024 and 2028 and an EBITDA margin of around 25% by 2028.
A large order for jets helped boost Boeing shares Monday in an otherwise quiet day for U.S. markets ahead of key inflation data. Given a lift by Boeing, the Dow Jones Industrial Average rose 0.2%, or roughly 55 points. The S&P 500 slipped 0.1%, while the tech-heavy Nasdaq Composite fell 0.2%. U.S.-listed shares of Novo Nordisk fell 0.4% after trial data showed its Wegovy obesity treatment could reduce the risk of heart attacks, strokes and deaths from cardiovascular conditions. Shares of Eli Lilly, which makes a rival weight-loss drug, gained 2.5%. Shares of kidney-dialysis company DaVita rose 6.5%. Shares of Tyson Foods fell 2.8% after the meat giant reported a quarterly loss and forecast sales to be flat in the coming fiscal year. Brazilian financial services company StoneCo (+13%) more than doubled its profits in the third quarter, while posting higher-than-expected sales. Oil group ExxonMobil (+1%) announced plans to start producing lithium for electric vehicle batteries in 2027, under the Mobil Lithium brand, using metal extracted from a recently acquired mine in the United States. Nvidia (+0.6%) recorded its longest bull run ever, following the presentation of a new chip dedicated to artificial intelligence.
In Asia, major indexes broadly closed with gains. Only on the Chinese stock exchanges is there little movement. The Kospi in Seoul saw the most marked increase, rising by 1.3 per cent. The Nikkei 225 index is 0.6 per cent higher at 32,774 points in late trading in Tokyo. Among the individual stocks, Mizuho Financial and Japan Post Bank both climbed 2.8 per cent and 0.8 per cent respectively following the presentation of quarterly figures. New figures from Citizen were less well received, with the share price falling by 1.1 per cent.
Two- through 30-year yields finished mixed on Monday as investors prepared for data on consumer and producer prices in the next few days. The 10-year Treasury note yield fell by one basis point on Monday to 4.632%. The 2-year Treasury note yield shed 3 basis points to 5.033%.
Richemont price target: Goldman Sachs downgrades to CHF 160 (168) - Buy
Ascom price target: UBS lowers to CHF 15 (16.50) - Buy
Geberit price target: DZ Bank raises to CHF 385 (370) - Sell
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