Earnings season. BHP Group, Deutsche Börse, Bridgestone, Icade and Faurecia are among companies reporting their earnings today.
No leap for COMAC? According to the Wall Street Journal, Washington is thinking about preventing the sale of aircraft engines to China, in this case the Leap-1Cs produced for Comac's C919 by the joint venture between Safran and General Electric. The United States is afraid of technology transfers and, perhaps, of a new player in civil aviation being able to gain momentum while Boeing is going through a bad patch. However, the C919, which is several years behind schedule, should not pose a threat in the very short term. But China is learning fast.
Impending merger? Alstom has confirmed talks to take over Bombardier's rail assets. "Discussions are ongoing. No final decision has been made. Alstom will inform the public of any significant developments on this subject," the company says. There have been rumors of a $7 billion deal.
An eye for an eye. At Airbus, difficult negotiations on staff reductions in the military division start this week. Also the United States will raise customs duties on aircraft imported from Europe by 10 to 15% on March 18. Airbus believes the WTO will allow the EU to tax its rival's B737 MAX, B787 and B77s. There is no end in sight. The US and Europe have been accusing each other for years of illegal aid to their respective aviation industries.
No barrier. The State of New York will not appeal the decision to authorize the merger between T-Mobile US and Sprint. The prosecutor prefers to focus on a new challenge: "to work with all parties to ensure that consumers will benefit from the best possible prices and services, that networks will be built across the state, and that well-paying jobs will be created in New York". The US justice system has broad ambitions.
In recovery. Toyota will reopen three of its four main plants in China this week, after weeks of interruption due to the coronavirus outbreak. Production was originally scheduled to resume on February 3, after the end of the Chinese New Year. The Japanese did not have a facility in Hubei province. However, Volkswagen postponed the reopening of some plants until February 24.
GM drops Holden. General Motors is continuing its slimming cure and will cut its main operations in Australia and New Zealand and dispose of a plant in Thailand, resulting in more than 2,300 job cuts and a $1.1 billion charge. In Australia, the historic Holden brand will be discontinued. Production had already been relocated.
In other news. The Operations Director and the HR Director of British Airways (International Consolidated Airlines) are resigning after a very tense year with the pilots. An American jury condemns Bayer and BASF to pay $265 million in damages to a farmer made ill by pesticides. Google cuts jobs in its cloud computing division as part of a reorganization designed to improve the performance of this industry. The domino effect of the coronavirus continues to affect the automotive industry, leading Fiat Chrysler, for example, to cease operations at a plant in Serbia due to a lack of component supplies. In electronics too, since it is thought that Nintendo may also have some problems with its supply chain. Motorola gets $765 million against a Chinese company.