737 Max: Debris found in new planes' fuel tanks - BBC News

Boeing's crisis-hit 737 Max jetliner faces a new potential safety issue as debris has been found in the fuel tanks of several new planes which were in storage, awaiting delivery to airlines.

The head of Boeing's 737 programme has told employees that the discovery was "absolutely unacceptable".

A Boeing spokesman said the company did not see the issue further delaying the jet's return to service.

It comes as the 737 Max remains grounded after two fatal crashes.

The US plane maker said it discovered so-called "Foreign Object Debris" left inside the wing fuel tanks of several undelivered 737 Maxs.

A company spokesman told the BBC: "While conducting maintenance we discovered Foreign Object Debris (FOD) in undelivered 737 Max airplanes currently in storage. That finding led to a robust internal investigation and immediate corrective actions in our production system."

Foreign Object Debris is a technical term that covers any substance, debris or article that isn't part of a plane which would potentially cause damage.

The revelation is the latest in a string of problems affecting what was once Boeing's best-selling plane.

The aircraft has been grounded by regulators around the world since March 2019.

It was banned from flying after two separate crashes killed 346 people.

737 Max timeline

• 29 October 2018: A 737 Max 8 operated by Lion Air crashes after leaving Indonesia, killing all 189 people on board
• 31 January 2019: Boeing reports an order of 5,011 Max planes from 79 customers
• 10 March 2019: A 737 Max 8 operated by Ethiopian Airlines crashes, killing all 157 people on board
• 14 March 2019: Boeing grounds entire 737 Max aircraft fleet

The US regulator, the Federal Aviation Administration (FAA), told the BBC that it was monitoring the plane maker's response to the new issue: "The FAA is aware that Boeing is conducting a voluntary inspection of undelivered aircraft for Foreign Object Debris (FOD) as part of the company's ongoing efforts to ensure manufacturing quality.

"The agency increased its surveillance based on initial inspection reports and will take further action based on the findings," it added.

Boeing said it didn't expect the issue to cause any fresh delays to the 737 Max's return to service, which the company said could happen by the middle of this year.

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2020-02-19 08:24:26Z
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737 Max: Debris found in new planes' fuel tanks - BBC News

Boeing's crisis-hit 737 Max jetliner faces a new potential safety issue as debris has been found in the fuel tanks of several new planes which were in storage, awaiting delivery to airlines.

The head of Boeing's 737 programme has told employees that the discovery was "absolutely unacceptable".

A Boeing spokesman said the company did not see the issue further delaying the jet's return to service.

It comes as the 737 Max remains grounded after two fatal crashes.

The US plane maker said it discovered so-called "Foreign Object Debris" left inside the wing fuel tanks of several undelivered 737 Maxs.

A company spokesman told the BBC: "While conducting maintenance we discovered Foreign Object Debris (FOD) in undelivered 737 Max airplanes currently in storage. That finding led to a robust internal investigation and immediate corrective actions in our production system."

Foreign Object Debris is a technical term that covers any substance, debris or article that isn't part of a plane which would potentially cause damage.

The revelation is the latest in a string of problems affecting what was once Boeing's best-selling plane.

The aircraft has been grounded by regulators around the world since March 2019.

It was banned from flying after two separate crashes killed 346 people.

737 Max timeline

• 29 October 2018: A 737 Max 8 operated by Lion Air crashes after leaving Indonesia, killing all 189 people on board
• 31 January 2019: Boeing reports an order of 5,011 Max planes from 79 customers
• 10 March 2019: A 737 Max 8 operated by Ethiopian Airlines crashes, killing all 157 people on board
• 14 March 2019: Boeing grounds entire 737 Max aircraft fleet

The US regulator, the Federal Aviation Administration (FAA), told the BBC that it was monitoring the plane maker's response to the new issue: "The FAA is aware that Boeing is conducting a voluntary inspection of undelivered aircraft for Foreign Object Debris (FOD) as part of the company's ongoing efforts to ensure manufacturing quality.

"The agency increased its surveillance based on initial inspection reports and will take further action based on the findings," it added.

Boeing said it didn't expect the issue to cause any fresh delays to the 737 Max's return to service, which the company said could happen by the middle of this year.

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2020-02-19 07:54:12Z
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Asia stocks rise on lull in virus worry, euro still weak - Investing.com

By Stanley White

TOKYO (Reuters) - Asian shares and U.S. stock futures rose on Wednesday, as investors tried to shake off worries about the coronavirus epidemic after a slight decline in the number of new cases.

MSCI's broadest index of Asia-Pacific shares outside Japan recovered from a shaky start to rise 0.4%.

Chinese shares erased early declines to trade 0.6% higher. Australian shares were up 0.37%, while Japan's stock index rose 0.95%.

rose 0.65%, German gained 0.67%, while futures were up 0.74%.

The euro languished at a three-year low versus the dollar as disappointing data from Germany, Europe's largest economy, has stoked fears that the euro zone is more vulnerable to external shocks than previously thought.

The Treasury curve remained inverted on Wednesday as yields on three-month bills traded above yields on 10-year notes in a sign that some investors remain cautious about the outlook.

China, the world's second-largest economy, is still struggling to get its manufacturing sector back online after imposing severe travel restrictions to contain a virus that emerged in the central province of Hubei late last year.

Many investors view Chinese data on the virus, dubbed SARS-CoV-2, with a great deal of scepticism, but there are hopes that officials will roll out more stimulus to support the economy.

"Part of the thinking that is supporting markets is the actions that China takes to support its economy," said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

"Any investor concern around impact on demand globally from the virus will be offset by expectations that global central banks will ride to the rescue."

U.S. stock futures rose 0.3% in Asia on Wednesday. The S&P 500 fell 0.29% on Tuesday after Apple Inc (NASDAQ:) said it would miss sales targets because the virus in China is pressuring its supply chain.

Mainland China had 1,749 new confirmed cases of coronavirus infections on Tuesday, the country's National Health Commission said on Wednesday, down from 1,886 cases a day earlier and the lowest since Jan. 29.

The death toll in China has topped more than 2,000 from the flu-like illness which has already spread to 24 other countries.

The People's Bank of China cut the interest rate on its medium-term lending on Monday, which is expected to pave the way for a reduction in the benchmark loan prime rate on Thursday, as policymakers try to ease financial strains caused by the virus.

In the currency market, the euro was quoted at $1.0798, close to its lowest since April 2017.

Sentiment remained weak after a survey on Tuesday showed a sharp deterioration in German investor sentiment due to the coronavirus.

In the onshore market, the yuan briefly fell to a two-week low of 7.0136 per dollar as traders continued to ponder the economic impact of the virus and the chance for more monetary easing.

The yield on three-month Treasury bills stood at 1.5949% in Asia on Wednesday, above the of 1.5661%.

A yield curve inverts when short-term yields trade above long-term yields and is often considered a sign of recession in the next year or two.

and both rose more than 1% to $52.63 a barrel and $58.39 per barrel, respectively, as a reduction in supply from Libya offset concerns about weaker Chinese demand for commodities.

Expectations that the Organization of the Petroleum Exporting Countries and allied producers including Russia will cut output further should lend support to prices.

The group, known as OPEC+, will meet in Vienna on March 6.

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2020-02-19 05:34:00Z
CBMicmh0dHBzOi8vd3d3LmludmVzdGluZy5jb20vbmV3cy9lY29ub21pYy1pbmRpY2F0b3JzL2FzaWEtc3RvY2tzLXJpc2Utb24tbHVsbC1pbi12aXJ1cy13b3JyeS1ldXJvLXN0aWxsLXdlYWstMjA4NzkzMdIBAA

Walmart's holiday season 'wasn't as good as expected' - CNN

Sales at stores and websites open for at least one year — a key measure of the retailer's health— increased only 1.9% during its final quarter of 2019. That included a 35% spike in online sales. Wall Street expected a stronger performance.

"In the few weeks before Christmas, we experienced some softness" in toys, video games and clothing, Walmart chief financial officer Brett Biggs said in a news release. The holiday "wasn't as good as expected," he said.

The shorter holiday season last year also contributed to the slowdown, according to Walmart. There were six fewer days this year between Thanksgiving and Christmas than last year.

The company missed Wall Street's expectations for sales and profit, sending shares of Walmart (WMT) down slightly in pre-market trading. Heading into Tuesday, Walmart's stock has rallied 19% over the past 12 months.

Walmart and Target (TGT) have been two of the strongest traditional retailers in recent years, weathering the rise of Amazon (AMZN) and the shift to online shopping that has upended the retail industry.

But like Walmart, Target also had a disappointing holiday.

Other retailers struggled during the holidays, including Macy's (M), Kohl's (KSS) and Bed Bath & Beyond (BBBY). Macy's last week announced it will close 125 stores over the next three years -- nearly one fifth of its total locations -- and lay off 10% of its corporate staff. Costco (COST) and TJMaxx parent TJX (TJX) were two outliers in the retail industry, reporting robust holiday sales.

Amazon also had a blowout holiday stretch and announced a record 150 million people now subscribe to its Prime membership program.

Strength in grocery

In recent years, Walmart has leaned on its network of more than 4,700 stores across the country to draw middle-and lower-income shoppers. Walmart has remodeled stores and lowered prices.

It has also invested in reaching wealthier shoppers online to compete with Amazon.

Despite a weak season for toys and clothes, Walmart said that groceries, its largest business, performed well over the holidays.

Walmart has rapidly built out an online grocery pickup and delivery infrastructure, an advantage over Amazon, which owns around 500 Whole Foods stores, and rival retailers that don't sell groceries.

Walmart ended the year with around 3,200 grocery pickup locations and more than 1,600 delivery locations. The company plans to continue expanding this year.

Walmart on Tuesday said that it expected a strong 2020.

Some companies, including Under Armour (UA), Nike (NKE) and Apple (AAPL), said that they expected to be hurt by the outbreak of coronavirus in China. Apple said Monday that the coronavirus is hurting its business more than previously expected by limiting how many devices it can make and sell in China.

Walmart said it was monitoring the impact from the coronavirus, but did not include any financial effects from the outbreak in its guidance to investors.

In China, Walmart has around 440 stores. The company has reducing hours at many stores. Chief financial officer Biggs told analysts that "we do anticipate some impact to the China business" in the first quarter of the year.

Biggs said that Walmart was not seeing "major impacts" limiting its ability to source products from China, but warned that could change.

"If there are any longer-term shipping issues, it would likely impact our business," he said.

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2020-02-18 14:24:00Z
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Dow opens lower after Apple warns of coronavirus hit - MarketWatch

U.S. stocks opened lower on Tuesday as traders returned from the long holiday weekend to see Apple's statement that it would miss its guidance due to COVID-19, which has kept Chinese workers at home and away from factory floors. The S&P 500 SPX, -0.23% fell 0.3% to 3,370. The Dow Jones industrial Average DJIA, -0.37% shed 109 points, or 0.4%, to 29,286. The Nasdaq Composite COMP, -0.08% was down 0.3% to 9,701. On Friday, the S&P 500 and Nasdaq closed at records. Investors are increasingly sensitive to signs that the coronavirus outbreak could disrupt global supply chains, as Chinese factories struggle to return to full-capacity after the Lunar New Year holidays. Apple Inc. appl warned that it would miss its second-quarter guidance due to the coronavirus. In other news, Franklin Resources BEN, +6.69% , the holding company for Franklin Templeton, said it was buying asset manager Legg Mason. LM, +23.58%

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2020-02-18 14:33:00Z
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HSBC to cut headcount by 35,000, shed $100 billion in assets - CBS News

HSBC will shed some 35,000 jobs as part of a deep overhaul to focus on faster-growing markets in Asia and as it tries to cope with a slew of global uncertainties, from Brexit to the trade wars to the new coronavirus.

The interim chief executive, Noel Quinn, said Tuesday the number of people employed by the bank would fall from 235,000 to 200,000, representing a cut of about 15%, in the next three years. Some of the reductions would come from attrition as opposed to outright cuts.

HSBC, which is based in London but does most of its business in Asia, is caught among myriad uncertainties. From Brexit uncertainties to the Hong Kong protests and trade disputes between the United States and China. Now the new coronavirus is adding further uncertainty.

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The bank's net profit fell 53% to $6 billion in 2019 and, for this year, it warned of "significant disruption'' to its business due to the outbreak of the virus in China.

HSBC's operations in Europe are also under pressure. It must now also grapple with Britain's departure from the European Union and the uncertainty that will accompany negotiations future trade relations.

"No trade negotiation is ever straightforward,'' HSBC said in a statement. "It is essential that the eventual agreement protects and fosters the many benefits that financial services provide to both the U.K. and the EU."

The whopping headcount drop comes amid a downsizing in Europe. The restructure involves "consolidating" of some parts of the business and "reorganising the global functions and head office,'' Quinn said.

Focus on Asia

The bank has been carrying out a corporate overhaul designed to boost profitability by focusing on high-growth markets in Asia while shedding businesses and workers in other countries. It plans to revamp its U.S. and European business and shed $100 billion in assets to improve profitability.

"Our immediate aims are to increase returns, create the capacity to invest in the future, and build a platform for sustainable growth," Quinn said in the statement.

The sharp drop in 2019 profit reflected slower economic activity but also a $7.3 billion write-down for HSBC's Global Banking and Markets and Commercial Banking divisions in Europe. Revenue rose 5.9% in 2019 to $55.4 billion.

The bank said it would shrink its sales and trading and equity research in Europe and shift resources to Asia. In the U.S., HSBC plans to grow its international-client corporate banking business.

Restructuring costs

The restructuring is expected to cost $6 billion, with another $1.2 billion for asset sales, mainly in 2020 and 2021, the bank said.

Richard Hunter, Head of Markets at interactive investor, said the toxic mix of pressures also comes at the same time that current net interest rate environment has dropped — to 1.58% from 1.66% — "with few if any signs on the horizon of an uplift.'' Banks tend to make less money when rates are low as its squeezes their lending business.

"There remain more questions than answers as HSBC looks to overhaul its business in radical fashion,'' Hunter wrote. "Quite apart from the economic challenges, there remains space at the top for a replacement chief executive, the search for whom is an additional distraction. The bank seems determined to target its unacceptably performing units but this will take time, courage and capital.''

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2020-02-18 13:21:00Z
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Coronavirus restrictions hit return to work at Apple’s biggest iPhone plant - Financial Times

Apple’s biggest iPhone plant is struggling to return to full production after China’s new year holiday because of restrictions on worker movement caused by the coronavirus, adding to concerns that the outbreak will have a lasting effect on the US company.

Contract manufacturer Foxconn assembles many of Apple’s newest iPhones at a huge factory complex at Zhengzhou in China’s Henan province. At full production, more than 200,000 workers put together iPhones on its assembly lines.

But Foxconn faces multiple challenges to staffing the factory, which has partially resumed production as workers trickle back from an extended holiday break. On Tuesday, the unit responsible for iPhone production stopped accepting workers from outside the city, pointing to issues in housing workers in need of quarantine.

“In response to government epidemic control requirements to prioritise prevention and safely resume work, and at the same time improve the quality of our worker reception services” non-Zhengzhou workers had to temporarily hold off reporting for work, a notice seen by the Financial Times said.

Local authorities are particularly concerned that a large influx of workers returning from around the region could rapidly spread the virus. Companies had to “strictly protect against the virus entering and spreading” in the workplace, Henan provincial officials said on Monday, instructing local health commissions to “step up oversight of workplace virus-control measures”.

Faced with municipal policies such as a required quarantine period for returning workers, the Zhengzhou plant has struggled to muster its full workforce. The Zhengzhou city government requires returning workers to self-quarantine for between seven and 14 days.

Foxconn had put returning workers in self-quarantine of one person per room at its factory dormitories, workers said. The rooms, which usually pack in eight workers, had quickly filled, causing Foxconn to halt the return of additional staff, explained a Zhengzhou-based factory recruiter, who asked not to be named. 

“They don’t have enough room,” the recruiter said, adding that workers could now sign up and wait for quarantine availability. 

The news comes as Apple announced a revenue warning due in part to its “temporarily constrained” smartphone supply.

The company told investors on Monday that its factories in China were “ramping up more slowly than we had anticipated” and that “iPhone supply shortages will temporarily affect revenues worldwide”. The company has perfected a just-in-time supply chain that cuts costs but makes it vulnerable to unforeseen disruptions.

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Analysts were divided over how severely the disruption would damage business beyond the short-term. Manish Nigam, head of Asian technology research at Credit Suisse, forecasts a 15 per cent shortfall in tech production in the first quarter, based on the assumption that a full month of production will be lost but partially offset by overtime later in March.

Mia Huang, an analyst at Taipei-based industry research company TrendForce, said: “The question raising the most concern is whether the launch date and initial shipments of the iPhone SE2, also known as iPhone 9, which was about to be launched, will be affected. For now, we are lowering our forecast for iPhone production in the first quarter by 10 per cent from 45m to 41m [units].”

Others believe the fallout will last much longer. “The impact starts looking bigger and bigger, and in the coming weeks, the impact will grow,” said Bill Lu, head of Asian semiconductor research at UBS, noting component shortages were the next threat. “Inventory is low in the smartphone supply chain,” he added. 

Read more about the impact of the coronavirus outbreak

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2020-02-18 12:16:00Z
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