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Good morning! Here is the latest in trending:
No DEI programs: AT&T (T) committed to ending DEI initiatives, as it seeks FCC’s nod for its $1.02B spectrum deal with U.S. Cellular.
Beating traffic: Archer Aviation (ACHR) unveiled plans for an air taxi network to service the Miami metropolitan area.
Turn off the tap: The EU reached a deal to stop Russian gas imports by late 2027, in an effort to deplete Putin’s war chest.
Airbus (OTCPK:EADSF) has lowered its target for commercial aircraft deliveries this year, after finding a quality issue affecting the fuselage panels on its bestselling A320 jets. It now expects to deliver around 790 planes this year, down from its previous target of about 820. The fuselage panel issue came to light just days after Airbus recalled thousands of A320s to carry out an urgent software fix.
Dig deeper: The quality issue relates to the thickness of five specific panels that sit on top of the cockpit and either side of the plane’s right and left front doors. The defects were reportedly introduced during the stretching and milling process used to manufacture the panels, leaving some with patches that either exceed or fall short of thickness requirements. Some 628 planes had the defective panels installed, including 168 in service. An Airbus spokesperson said the manufacturing fault had been rectified and all newly produced panels conform to requirements.
The component in question is dual-sourced, “with only one of the supplier facing a quality escape, which has already been resolved at the production level,” Jefferies analysts noted. “However, as this comes very late into an already back-loaded year, this triggers the guidance cut for deliveries,” they added. But not all the 30 aircraft removed from the delivery target are expected to require a parts change, and only require a non-destructive test to be performed for now. These 30 planes should be ready for delivery early next year, according to Jefferies.
Brighter outlook: In other news, Boeing (BA) soared on Tuesday after its CFO Jay Malave projected positive free cash flow in the “low single digits” next year, reversing the company’s $2B cash burn in 2025. Boeing’s free cash flow has not been positive on an annual basis since 2023, and the company has lost a cumulative $39B in the five years through 2024. According to Investing Group Leader Dhierin Bechai, Boeing is gaining momentum in airplane orders and deliveries, narrowing the gap with Airbus and showing strong year-on-year growth.
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What else is happening…
Comcast eyes merging NBCUniversal with Warner Bros. (WBD)…
… while Netflix (NFLX) pitches cost benefit of HBO Max bundle.
Marvell (MRVL) sees 25% data center revenue growth in FY27.
Nvidia (NVDA) CFO: OpenAI (OPENAI) deal not yet finalized.
Anthropic (ANTHRO) steps up prep for IPO as early as 2026.
BYD (OTCPK:BYDDF) could gain from UK’s pay-per-mile tax.
Trump admin backs Bayer’s bid to limit Roundup lawsuits.
BNSF challenges UNP–Southern Pacific merger 30 years later.
Syria, Chevron (CVX) discuss cooperation in energy exploration.
Michael Dell pledges $6.25B to support Trump Accounts for kids.
Today’s Markets
In Asia, Japan +1.1%. Hong Kong -1.3%. China -0.5%. India flat.
In Europe, at midday, London -0.2%. Paris +0.1%. Frankfurt +0.2%.
Futures at 6:30, Dow +0.1%. S&P +0.2%. Nasdaq +0.1%. Crude +1.4% to $59.44. Gold +0.3% to $4,231.90. Bitcoin +6.4% to $92,971.
Ten-year Treasury Yield -1 bp to 4.07%.
On The Calendar
Companies reporting today include Salesforce (CRM) and Snowflake (SNOW).
See the full earnings calendar on Seeking Alpha, as well as today’s economic calendar.
Read the full article here
