Boeing HQ
As we reach the day before US Presidential elections, news items include a discussion how a Trump win could be costly for Boeing and other aerospace and defense firms. If his planned tariffs results in renewed trade wars, costs would rise and overseas sales could be endangered for Boeing, both in commercial airplanes and in foreign military sales.
Boeing’s new CEO has reportedly delivered an ultimatum to machinists, which machinists union leadership believes. Ultimatums and threats have dominated the rocky relationship between the company and union. The latest sweetened contract proposal from Boeing may indeed, this time, be a best and final offer from Boeing and will be voted on today. But others feel differently, as demonstrated by an op-ed that says ‘Boeing owes strikers more than they are offering.” Stay tuned for the results, which should be tabulated by 9pm Pacific time tonight. Our expectation is for this vote to be narrowly in favor, but this could still go either way.
The four lead investment bankers in the recent capital raise, Goldman Sachs, Bank of America, Citigroup, and JP Morgan Chase, are expected to earn as much as $75 million each from the recent $23.5 billion.
The rumored ‘for sale’ sign on the company’s space operations has raised numerous eyebrows over which assets may be sold, what might be retained, and whether the fixed price contract assets would be appealing given their losses. There are a lot of questions on how Ortberg’s strategy to focus on the core business of building airplanes will impact other elements of the company.
Links to today’s key news follow:
- A Trump win could be costly for Boeing and Aerospace & Defense – Forbes
- Boeing CEO delivered ultimatum to Machinists. Union leaders believe him – Seattle Times
- Boeing owes strikers more than they are offering. The machinist union should stand strong – Tacoma News Tribune
- Boeing bankers grab up to $300 million in capital raise fees – BNN Bloomberg
- Raised eyebrows as Boeing reportedly mulls sale of stellar space enterprise – the Guardian via Yahoo
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