Airbus agrees €30bn jet deal with China | Calamatta Cuschieri

The Maltese market closed in the green on Monday, with MSE Equity Total Return Index ending the session 0.6% higher, to 9,510.670 points. Top gainer was Bank of Valletta plc adding 2.84% to close at 1.45. International hotel Investments plc gained 2.67% close at 0.77, followed by Malta International Airport plc and RS2 Software plc which gained 0.76% and 0.71% to close at 6.60 and 1.41 respectively. The biggest faller was Lombard Bank Malta plc, down 5.6% closed at 2.36. Medserv plc slid 1.79% to close at 1.10 followed by HSBC Bank Malta plc which fell 0.61% to close at 1.62. Mapfre Middlesea plc, GO plc, Malta Property Company plc, PG plc and BMIT Technologies plc closed unchanged.

European shares opened deep in the red on Monday, adding to the worst weekly fall of the year last week after disappointing economic data in Europe and the United States stoked fears of recession. The pan-European STOXX 600 index fell 0.6% to close at 374.33, France’s CAC 40 leading losses with an almost 1% initial fall before steadying. Germany’s DAX fell 0.3% to close at 11346.65, as investors ditched equities and switched into safe-haven assets. London’s FTSE fell 0.5% to close at 7177.58.

U.S. stocks closed mostly lower Monday after data showing weakness on the global economic front. The S&P 500 index shed 0.06% to 2,798.36 with technology and financials topping the losses. The Nasdaq Composite Index edged down 0.5% to 7,637.54. The Dow Jones Industrial Average meanwhile, rose 0.05% to 25,516.83.

Airbus has secured an order from China for 300 jets, in a deal estimated to be worth tens of billions of dollars

Airbus has agreed to a multibillion-dollar deal with China to sell a package of 300 aircraft to the country, strengthening the European aerospace group’s foothold in the world’s second-largest aviation market. The mammoth order, which is worth an estimated €30bn, was one of 15 commercial agreements and a further 13 cultural and other deals signed by the two sides during Mr Xi’s visit to France this week.

The deal is a blow to its arch-rival Boeing, which is battling to restore trust in its own best-selling 737 Max aircraft after two crashes of the model in just five months. Chinese airlines operate 96 of the Max 8 planes. The country’s safety regulator was the first to ground the Max following the crash of an Ethiopian Airlines flight on March 10 which killed all 157 people on board.

French president Emmanuel Macron has pushed for the EU to be more robust in its trade negotiations with China, particularly in his demand for reciprocity in terms of public procurement in areas such as railways and other transport infrastructure.

The two countries also signed agreements on civil nuclear energy, an offshore wind project, the purchase of 10 new container ships from China State Shipbuilding Corp, the exploitation of space, and co-financing arrangements between banks. The aviation agreement with China’s Aviation Supplies Holding Company covers 290 of Airbus’ best-selling A320 planes and 10 A350 XWB jets.

China has become a key battleground for Airbus and Boeing, with analysts predicting the Asian country will become the world’s biggest aviation market by early next decade.
 

Disclaimer: 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.