Japan Airlines (JAL) has signed a purchase agreement for 31 Airbus A350 XWBs (18 A350-900s and 13 A350-1000s), plus options for a further 25 aircraft. This is JAL’s first ever order for Airbus aircraft. It is also the first order Airbus has received from Japan for the A350 XWB, confirming its continuing success with world leading airlines across the globe. JAL and Airbus aim for entry into service from 2019, with the airline’s A350 XWBs gradually replacing its ageing fleet approximately over a six year period.
“We will utilize the A350 XWB to maximum, which offers high level of operational efficiency and product competitiveness, while positively catering to new business opportunities after slots at airports in Tokyo are increased,” said Yoshiharu Ueki, president of Japan Airlines. “In addition to improving profitability with advanced aircraft, we always aim to deliver unparalleled services to customers with the latest cabin and steady expansion of our route network.”
The deal has a list price of $9.75bn and deliveries will commence in 2019.
ANA, JAL's rival was the launch customer of Boeing's troubled Dreamliner.
Conall Mac Coille, chief economist at
Davy, comments -- "On Friday, the IMF released its
latest review of Ireland’s programme. The IMF indicated that the government
should still plan to hit the overall €5.1bn adjustment planned for 2014-2015.
However, this suggests that the IMF is now reconciled to the likelihood that the
adjustment in Budget 2014 will fall below the €3.1bn originally planned. The IMF
has now pared back its forecasts for Irish GDP growth to just 0.6% in 2013 and
1.8% in 2014 but still expects the government to meet its 7.5% of GDP deficit
target in 2013, falling to 4.9% in 2014.
Economic View: Brussels gets a preview
of Irish fiscal plans; Dermot O'Leary of Goodbody
comments -- "If there was ever evidence needed that the budget process in
Ireland has changed entirely, it is contained in this morning’s Irish Times.
Ahead of next week’s Budget, it is reported that Irish officials travelled to
Brussels over the weekend to discuss fiscal plans for 2014. It is suggested that
the motivation for the visit is to identify any weaknesses before a final
decision is made on October 15th.
Air France-KLM Staff cuts of 2,900 in
Transform 2: Dónal O'Neill of Goodbody comments - -
"Air France-KLM announced on Friday evening that is has identified necessary
staff reductions of close to 2,900 which are required to help it achieve its
debt reduction and earnings improvement targets for 2014. Between February and
December 2014, 1,826 ground staff will be let go on a voluntary basis across
operations at Cargo, Paris-CDG, Paris-Orly and other activities. A further 1050
job losses among pilots (350) and cabin crew (700) will be sought over the
course of 2014.
Petroceltic Sontrach pre-empts, sees
value: Gerry Hennigan of Goodbody comments - -
"Petroceltic (PCI) released a statement this morning on the guided 18.375%
farm-down in its Algerian development asset (Ain Tsila), which indicated that
Sonatrach (state oil & gas company) has exercised its pre-emption rights and
will acquire the stake previously agreed with an unnamed third party. Payment of
$20m on completion, $140m in the form of a development carry, and two contingent
payments of $10m each, assuming certain milestones are achieved, is in line with
prior speculation. On completion, PCI will remain Operator with a holding of
38.25%, the remaining equity will be shared between Sonatrach (43.375%) and Enel
Justin Doyle of Investec Bank Ireland, commented:
1.Shutdown continues: The US shutdown
continues with Republican House Majority leader Boehner stating on Sunday that
the US is headed for its first default unless President Obama starts negotiating
with the Republicans. He said that Republicans will not pass a “clean” debt
limit increase (one without additional concessions from Democrats).
In New York Monday, the Dow fell 125 points or 0.83% to 14,948.
The S&P 500 slid 0.53% and the Nasdaq slipped 0.82%.
The MSCI Asia Pacific Index fell 0.8% Monday.
Japan's Nikkei 225 fell 1.22%; China's national day holidays end on Tuesday; Korea's Kospi index fell 0.132%; Australia's S&P/ASX 200 dropped 0.90% and in Mumbai, the Bombay Stock Exchange the S&P BSE India Sensex Index slipped 0.10%.
In Europe, the Dow Jones Stoxx Europe 600is down 0.04% in mid-morning trade Friday.
In Dublin, the ISEQ is off 0.27%.
Ryanair is down 0.88%.
The euro is trading at $1.3570 and at £0.8436.
For live currency updates, check the right-hand column of the Finfacts home page.
The US dollar fell to $1.6038 per euro on Tuesday, July 15, 2008 - an-all time record.
The Baltic Dry Index, a measure of shipping costs for dry commodities, hit an all-time High of 11,771 on the 21st of May, 2008. From that time it reversed and on the 5th of December, 2008 it hit a low of 663 - - close to a 1986 low.
On Thursday, July 15, 2010, the index fell for the 35th straight session, by 9 points, or 0.537%, to 1,700 points, Bloomberg report.
On Friday, the BDI rose 37 points or !.81% to 2,084.
Global rebalancing — the tanker scrapyard index?
Crude oil for November 2013 delivery is currently trading on the Chicago York Mercantile Exchange (CME/Nymex) at $102.49 down $1.35 from Friday's close. In London, Brent for November delivery is trading on the International Commodities Exchange at $108.46. The North Sea benchmark accounts for two-thirds of the global market.
Finfacts, July, 15, 2013: US West Texas Intermediate oil benchmark jumps in July - - margin between WTI and Brent falls.
Gold spot price
The spot price of an oz of gold is trading on the CME in Chicago at $1,311.80 up $2.20 from Friday's closing.
Gold had hit a record high of $1,921.15 a troy ounce on Sept 06, 2011.
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