This could be a crucial week for Boeing (BA) as the upcoming meeting between US and China presidents at the APEC Summit could lead to a resolution to lift Beijing’s commercial freeze for 737 MAX planes.
Image courtesy of 123rf.com via The Tokenist The plane maker and Emirates are also reported to be nearing an agreement over a major 777 jet order. Boeing’s shares are up around 3.7% in the Monday premarket at the time of writing. Joe Biden and Xi Jinping to Meet in San Francisco on WednesdayBoeing shares climbed 3.75% in premarket trading Monday after a recent report revealed that Chinese authorities are weighing lifting the commercial freeze for the company’s troubled 737 MAX plane later this week. In particular, the Chinese government is considering revealing a commitment to the 737 jetliner during the APEC Summit in San Francisco, at which US and China presidents Joe Biden and Xi Jinping are set to meet. According to Bloomberg, terms of a possible deal are still being discussed, meaning the agreement could change or collapse before the two presidents meet on Wednesday. Although the priority of Biden’s meeting with Xi Jinping is to discuss resuming military communications, it is also a unique opportunity to address aerospace issues. An agreement for 737 MAX would represent a major breakthrough for Boeing, which gave away its market lead to Airbus. The plane maker has not been able to make significant 737 MAX sales in Asia since at least 2018, before two fatal crashes that resulted in a global grounding. Meanwhile, separate reports from Bloomberg and Reuters revealed that Boeing and Emirates are closing in on a major order of 777 planes. Per the reports, the agreement is expected to include “several dozen” 777 jets and would come in addition to Emirates’ existing order backlog for 155 of Boeing’s 777X aircraft. Boeing Shares at 1-Month HighThe reports of two potential agreements come just two weeks after Boeing unveiled its Q3 report, which showed a wider-than-expected quarterly loss and a trimmed full-year outlook. Notably, the jet manufacturer reported a loss per share of $3.26 for the third quarter, wider than the loss per share of $3.18 that analysts expected. In addition, the company’s defense business posted an operating loss of $924 billion, more than double the consensus estimates. More By This Author:MicroStrategy Up 49% Over The Last 30 Days Amid Bitcoin SurgeClean Energy Stocks Fall After PLUG Reports Q3 EarningsTesla Continues Slide In Premarket After HSBC Sets $146 PT
