|Boeing's 787 Dreamliner launch customer All Nippon Airways Co (ANA) made the inaugural commercial flight of the new widebody aircraft in late Sept 2011 and on Wednesday, Oct 27, the ANA 787 Dreamliner had its first revenue flight, over four hours, from Tokyo's Narita International Airport to Hong Kong International Airport. After more than 3 years of delays due to production and design problems, ANA flew its first jet from Boeing's plant in Everett, Washington State, on Sept. 27, to Tokyo. Jim McNerney, Boeing CEO, said Sept 27, the day of the handover to ANA, that the point at which each Dreamliner will turn cash positive "is a number of years out in front of us," but will come before 2020. McNerney said "the business we're in is huge sums [for making the airplanes] in the beginning and then an annuity for the next 25 to 35 years. That's the business model we have."
Japan's two main airlines have grounded their Boeing 787 Dreamliners after one
was forced to make an emergency landing because of battery problems.
All Nippon Airways (ANA) grounded its fleet of 17
Dreamliners when its flight NH 692 from Yamaguchi Ube had to land shortly after
take-off. Japan Airlines said it would ground its fleet of seven 787s from 16
January until further notice.
In recent weeks, Boeing has encountered problems
with and its key Dreamliner planes, which are mid-range and fuel efficient
aircraft. There have been fuel leaks, a cracked cockpit window, brake problems
and an electrical fire.
ANA said a "Boeing 787 made an emergency landing
at Takamatsu Airport due to aircraft malfunction. All passengers have escaped
from the aircraft using the evacuation slope. This was categorized as serious
incident by Ministry of Land, Infrastructure, Transport and Tourism."
Rupert Wingfield-Hayes of BBC News, in
Tokyo said: "There have been six separate safety
incidents with Japanese owned 787s in the last week and a half. But they are not
The incident today was by far the most serious. Smoke inside an aircraft while
in-flight is always a serious matter...It also looks like this incident may not
be isolated. It appears very similar to an electrical fire on board a Japan
Airlines 787 in the United States last week.
The source of that fire was the 787's Lithium Ion battery pack. All the way back
in 2007, the US Federal Aviation Administration expressed concern about the
installation of Lithium Ion batteries on board the 787 because of their known
problem with so called 'thermal runaway.' It's a problem that has caused mobile
phones and laptop computers to catch fire in the past."
The 787 is not the only aircraft to use Lithium Ion battery packs. The Airbus
A380 uses a smaller number of Lithium Ion battery packs and the Airbus A350, a
counterpart to the Dreamliner, will use a much larger number."
beverage group, today reported in
an interim management statement, an improved trading performance in Ireland
as volumes grew 1.8% in the three months to November after a weak summer trading
C & C Group Guidance maintained after Q3
IMS: Liam Igoe of Goodbody comments - - "C&C
maintained its Q3 profit guidance at the lower end of the €112-118m range
(Goodbody €112.4m). The Vermont cider business will add €1.5m to this for FY13.
Divisionally, the performances were broadly as expected, with Ireland more
positive than anticipated while GB remains difficult, with declines less than in
H1. The Christmas period was “mixed” with continued good trading in the Republic
of Ireland and in the UK, Tennents was “resilient” and “muted” elsewhere.
In the Republic of Ireland cider volumes were up 0.9% compared with a decline of
6.6% in H1 as the bad weather effect over the summer was absent. Pricing
pressures remained with net revenue down 3.5% (-12.3% in H1).
In the UK Magners volumes fell 11.7% and Gaymer by 12.3%. These are much
improved on the -17.4% and -20.4% in H1, though are still high. C&C comments on
how the UK LAD market remains tough and high promotional activity continues in
the off-trade. New Gaymer fruit variants are proving popular though other Gaymer
brands continue to decline.
Tennents saw volume declines of 3.6% (-6.3% in H1) but net revenue sales were up
7.5% as C&C continues to push up prices as expiring contracts come up for
International cider & beer volumes were up 28.1% (revenue +32.2%). Within this,
Magners in North America was up 16% while there were some “distribution issues”
in Australia and performance in other territories was “encouraging”. In relation
to Vermont Hard Cider Company, C&C says it continued to deliver strong volume
There were no major surprises in the update. Ireland performed somewhat better
than we expected while the UK cider business remains challenged, even if
improved from H1. The UK should move close to flat from Q1FY13 as the negative
impact of the loss of some of the UK supermarket multiples business peters out.
C&C is making good headway in the Irish market. Forecasts remains essentially
unchanged except for a marginal (+1%) increase in respect of the Vermont
acquisition. Overall we remain positive on C&C after the Q3 update and while a
positive surprise in Ireland is offset by a continuing difficult UK market,
stabilisation should be evident here from FY14. In the meantime, its
international business, and particularly US cider holds out prospects for
positive newsflow in the coming quarters"
Economic View: Some policy advice from the periphery; Dermot O'Leary of
Goodbody comments - - "Spanish Prime Minister, Mariano Rajoy, offers up some
sensible economic advice for European policymakers in an interview in this
morning’s Financial Times. It’s just a pity that none of it will be listened to.
Rajoy is rightly critical of the one-size-fits-all fiscal policies which are
leading to contraction in the bloc overall and making it difficult for those
countries that are attempting to rebalance their economies to engineer an
export-led recovery. While Rajoy recognises that Spain is constrained in
implementing expansionary policies due to the need to reduce its external and
fiscal deficits, it says that countries that have the capacity should do so.
Although not mentioned specifically, Rajoy is referring to Germany.
Data released from Germany yesterday backs up this point quite clearly. With
growth disappointing in Q4, the German economy expanded by just 0.7% in 2012.
Despite this weak growth, the country was still able to run a modest budget
surplus last year. Moreover, further austerity measures are in the pipeline for
Germany this year.
Ireland faces the same plight facing Spain currently. The domestic headwinds of
private and public sector deleveraging have meant that domestic demand continued
to be weak and has to be offset by contributions from net exports. Ireland has
been successful in this regard, but the whole process would be made a lot easier
if different policies were adopted in economies like Germany. With an election
due in September, the status quo is likely to remain until then at the very
Ryanair Growth potential down south: Dónal O'Neill of Goodbody comments -
- "Ryanair has this morning announced plans to open two new bases and services
to two new airports in Morocco. The airline will establish bases in Fez and
Marrakech, at which it will base three aircraft and operate 37 routes. It will
also begin services to two new airports at Essaouira and Rabat with a total of 5
routes. Ryanair expects to carry up to 2.5m passengers annually in Morocco.
Elsewhere, CEO Michael O’Leary said Ryanair has plans to strengthen bases at
Faro and Porto in Portugal, while it is also hoping to reach agreement with
Vinci (who recently bought ANA) about setting up a base in Lisbon which is
dominated by ailing flag carrier TAP and is under-utilised. Mr O’Leary said
Ryanair plans to grow passenger numbers in Portugal from 3.5m currently to 10m
over the coming years.
Having reduced capacity in Morocco by 30% to just below 1m seats between 2011
and 2012, Ryanair has clearly secured a favourable deal from local authorities
in a market which has considerable growth potential. In Portugal, TAP has seen
short haul capacity decline 5% since 2008 having ceded market share to Ryanair
and easyJet. Lisbon in particular presents a great opportunity for Ryanair with
European capacity from the airport still below 2007 levels. These announcements
form a key part of Ryanair’s profitable growth strategy in countries and
airports from which it can operate at an attractive cost base. We estimate that
Ryanair will carry 80m passengers in the current financial year and it
is our top pick in the airline sector for 2013."
Irish trade data for November will provide more colour on impact of patent
cliff: Conall Mac Coille of Davy comments -- "Stock indices were little
changed yesterday (January 15th) following a mixed bag of macroeconomic data.
The Euro Stoxx 50 Pr was down 0.5% but the S&P500 was up 0.1%. German
statistical authorities indicated calendar year GDP growth of 0.7% in 2012, but
consistent with a sharp 0.5% contraction in German GDP in the final quarter. In
contrast, US retail sales (ex autos and gas) grew by 0.6% in December. This is
the second month of robust spending growth in the US economy, allaying fears
that a dip in confidence due to the US fiscal cliff negotiations may have hurt
Today, Irish trade in goods data are released for November. A key issue facing
the Irish economy is how sharply the pharmaceutical patent cliff may push down
on output and exports in the final quarter of 2012. This follows the 16% decline
in manufacturing output in September, driven by the 34% fall in pharmaceutical
sector output and with production remaining depressed through October and
November. If output is flat in December, overall industrial production could
decline by 8.3% in Q4. In Q3 2012, the 3.4% fall in industrial production
reduced Irish GDP growth by 1%, although an offsetting rebound in services
output led to overall GDP growth of 0.2%. So an 8% reduction in industrial
production in Q4 could on its own push down Irish GDP by as much as 2% in Q4.
Today's trade data will show how goods exports have been affected in November.
The sharp drop in goods export volumes in September reflected a 22% decline in
pharmaceutical goods exports. Irish goods exports fell by 17.9% in September
before a small rebound of 1% in October. This leaves aggregate goods export
volumes at their lowest level since 2009 (excluding an erratic low in April
2012). As industrial production was flat in November, goods exports should
follow suit and will fall by around 8% in Q4 2012."
In New York Tuesday, the
Dow Jones rose 26 points or 0.20%, to 13,535.
The S&P 500 climbed 0.11% and
the Nasdaq slipped 0.22%.
The MSCI Asia
Pacific Index slid 0.6% Wednesday.
225 Stock Average dipped 2.56%; China's Shanghai dropped 0.70%; South Korea's
Kospi fell 0.32%; Australia's S&P/ASX 200 added 0.46%; in Mumbai, the Bombay
Stock Exchange's Sensex 30 slipped 0.85%.
In Europe, the
Dow Jones Stoxx Europe 600 is down 0.33% in morning trading Wednesday.
In Dublin, the
ISEQ is up 0.30%.
There is no
movement in C&C.
Key Index Performance
Bank of Ireland Daily Report
The euro is
trading at $1.3289 and at £0.8291.
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
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,
On Tuesday this
week, the BDI rose 3 points or 0.39% to 765 - - the BDI is
up 9.44% in 2013.
Crude oil for February 2013 delivery is
currently trading on the
Chicago York Mercantile Exchange (CME/Nymex)
at $93.33 up 2 cents from Tuesday's close. In London, Brent for February delivery
is trading on the
International Commodities Exchange at
$110.55. The North
Sea benchmark accounts for two-thirds of the global market.
reports that for the
first year since the futures were created, Brent crude is poised to overtake
West Texas Intermediate (WTI) oil as the world’s most-traded commodity.
in Brent jumped 14% to average 567,000 contracts in the year to November 20
compared with all of 2011, while WTI fell 17% to 575,000, according to data from
the ICE Futures Europe exchange in London and New York Mercantile Exchange
compiled by Bloomberg. The number of Brent futures changing hands has exceeded
those for WTI every month from April through October,
the longest streak since at least 1995.
Brent, produced in the
North Sea, is gaining favour among traders because of its role as the benchmark
for energy prices from Saudi Arabia to Russia. Prices have climbed 34% in the
past two years, reflecting everything from war in Libya to the embargo on Iran.
WTI, the main grade in the US, has risen 9% as the nation, which prohibits crude
exports, has struggled to clear a glut at Cushing, Oklahoma, the delivery point
for Nymex futures.
Gold spot price
The spot price
of an oz of gold is trading in New York at $1678.90, down $1 from Tuesday's
close in New York.
Gold had hit a
record high of $1,921.05 a troy ounce on Sept 06, 2011.
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