U.S. Morning Call: FAA grounds Dreamliners indefinitely
Wednesday, January 16, 2013 - 04:27
Jan 17 - Airlines scrambled to rearrange flights as Europe, Japan & India joined the U.S in grounding Boeing's 787 Dreamliner for battery-related problems.
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Save your morning call for Thursday lots of turbulence rocking Boeing after the FAA grounded all 787 dreamliner jets. Boeing has sold around 850 of its new planes with fifty delivered today. The new rules affecting flights from Europe India and Japan Qatar Airways now the latest to ground its -- a five planes. This can have severe repercussions for Boeing keeping the 787 on the ground could cost for instance Alapont. More than one point one million dollars today. Poland's state controlled lot airlines -- the first to say it will seek compensation from Boeing for grounding its two planes. It expects delivery of three more dreamliner by the end of march but would take -- if technical issues have been resolved. Shares of Boeing down nearly 3% in the premarket. Shares of GSU lost a court a Japanese company that makes batteries for the dreamliner closed down 5% today. The stock has dropped 18%. Since January 7 when one of its batteries caught fire you'll remember. The latest issue certainly heat up competition between Boeing and Airbus. Airbus -- a 43%. Drop in -- and surrendered its crown as the world's largest plane maker Boeing last year. But the latest glitch could turn things around in 2013. To America's biggest retail banks reporting earnings today. Bank of America -- 700 million dollars in the quarter compared with a profit of two billion in the same period a year ago. Profit at the bank now as it took more charges to clean up mortgage related problems stemming from the financial crisis. Citigroup results due out at 8 AM start my critics a negative surprise of 1% earnings per share up 96 cents. He is on the city's first earnings under new CEO Michael -- that. If you remember the last time it reported the very next day Vikram Pandit announced his resignation. This quarter Citi executives may be questioned about plants to reduce costs beyond the 111000. Job cuts already announced. We also hear more about a potential buyback proposal. Shares of -- trading close to 4290. In the premarket. We've also got result out for black rock the world's largest money managers -- its profit rise 24% in the fourth quarter. The result crushing street estimates. More and more investors getting back into equities boosting demand for iShares ET yes. Later today we'll hear from Intel -- chip -- likely to take it from PPC sales. Intel's expected to report earnings per share a 45 cents on revenue up thirteen and a half billion. Inline with our -- smartest. And after today's close American Express reports the credit card company expecting a charged fourth quarter with higher profit. But business growth may have slowed weak consumer confidence -- fiscal -- -- likely weighing on the company. US stock futures point to a mixed open a lot depends on how earnings pan out today. We've also got some housing data out later. The number of building permits issued last month expected to have risen according to a Reuters Paul. And jobless claims have fallen last week to 365000. It's the end of the line Maria had ten does CEO the mining companies saying happy browse to top out -- today. After revealing a fourteen billion dollar write down on -- balance sheet that's more than twice -- 2011 profit. The reduction a result of companies is -- significant acquisitions. Mozambique and coal and Alcan aluminum group. Until now album has survived the consequences of his disastrous 38 billion dollar acquisition of Alcan at 2007. We just seen years of loss is aluminum and taken many were billions in write downs ever since. It is taking market by surprise shares down 2% in London trading. That's good for your Thursday morning called be sure to follow us on Twitter at Reuters Insider in check out our way -- -- channel athletic dot com slash PP. I was -- this is --
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