Boeing's CEO ousted; China slashes tariffs - as it happened
Rolling coverage of the latest economic and financial news, as China gives the world economy a festive gift and Dennis Muilenburg is removed from Boeing
- Latest: Boeing CEO ousted over 737 Max crisis
- Full story: Dennis Muilenburg fired
- FTSE 100 hits five-month high
- EIU expects more trade tensions in 2020
- Introduction: Beijing cuts tariffs on hundreds of products
- Pork, avocado, and semiconductors all on list
5.36pm GMT
Back in London, the stock market has enjoyed something of a Santa Rally.
The FTSE 100 ended the day 41 points higher, or 0.5%, at 7623, a five-month high. Nearly every sector rose, led by consumer stocks, energy companies, tech companies and industrial firms.
Related: Poll shows highest UK business confidence levels for three years
Related: Boeing ousts chief executive Dennis Muilenburg
5.03pm GMT
Dennis Muilenburg's position at Boeing was clearly at risk, once regulators refused to allow the 737 Max to resume flights early next year.
As Sky News puts it:
Last Tuesday, the US aircraft maker announced that it would temporarily halt production of the grounded 737 MAX aircraft in January.
The decision was widely seen as a humiliating admission that the fleet's fate lies in the hands of regulators after its own timetable to return the planes to service dragged by months.
Boeing chief resigns after two fatal crashes https://t.co/nokEKd6dGh
4.50pm GMT
Boeing's stock is leading the Dow Jones risers in New York, up 2.5% right now.
4.43pm GMT
And here's economics editor, Larry Elliott, on China's decision to cut tariffs on hundreds of products -- the day's big news, apart from Boeing.
China is to cut tariffs on more than 850 goods from 1 January in order to boost growth in the world's second biggest economy.
In a move designed to draw a contrast with Donald Trump's protectionist approach to trade, Beijing said there would be a temporary cut in duties on products ranging from frozen pork to semiconductors.
Related: China cuts tariffs to boost growth and show up Donald Trump
4.41pm GMT
Here's the Financial Times's take:
The news came days after the largest US exporter sent shockwaves through its supply chain by announcing that it would halt production at its 12,000-strong Renton pant near Seattle. With regulators still reviewing Boeing's fixes to the Max airlines have been pushing back their estimates for when they will be able to fly it again, with United saying it will not return to service until June.
Mr Muilenburg, who spent his entire career with Boeing, was widely criticised for a faltering response to the crashes which killed 346 people and the board indicated that it was aware of the need to improve communication, not least with the Federal Aviation Authority, its domestic regulator.
3.14pm GMT
Boeing's new CEO, David Calhoun, says:
I strongly believe in the future of Boeing and the 737 MAX.
I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation."
Board of Directors names current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020.
RELEASE: https://t.co/ok5BnJcBWT pic.twitter.com/EaHncqgvK9
3.12pm GMT
Muilenburg's replacement, chairman David Calhoun, faces a massive task.
He need to win regulatory approval to get the 737 Max flying again, and persuade customers that the aircraft is genuinely safe to travel on.
Speculation that Muilenburg would be fired had been circulating in the industry for months, intensifying in October when the board stripped him of his chairman title.
A Boeing official said the board deliberated over the weekend and they made the decision to fire Muilenburg in a phone call on Sunday.
2.56pm GMT
Here's David Madden of CMC Markets:
Boeing confirmed that Dennis Muilenburg has resigned from the company amid the 737 Max crisis. David Calhoun has been named as CEO as well as president.
The industrial giant is trying to put the 737 Max catastrophes behind it, and the removal of Muilenburg is a part of that strategy, but the group will find it tough to shake off the reputation of the two disasters. The stock is higher on account of the news.
2.45pm GMT
Boeing's shares have jumped by over 3% in early trading in New York, as traders welcome Muilenburg's exit.
Boeing shares open higher by more than 3% after Boeing fired CEO Dennis Muilenburg and announced a leadership transition. https://t.co/PLbXqVl0QR pic.twitter.com/hCPHW8PReI
2.38pm GMT
Alistair Osborne of The Times argues that Boeing's board should have acted months ago:
Boeing has finally done what it should have done ten months ago and fired chief executive Dennis Muilenburg - after the two 737 Max crashes that killed 346 people. A man who never seemed to grasp the enormity of what had happened.
Breaking: Boeing's CEO Dennis Muilenburg resigns - effective immediately - following scrutiny and industry backlash as the 737 MAX crisis continues. #aviation pic.twitter.com/llyc0NzNVZ
" Over recent weeks the head of the FAA told #Boeing's CEO to "stop publicly pushing for the 737 MAX ban to be lifted"
" US Congressman overseeing one of the (many) investigations into Boeing called for him to be fired pic.twitter.com/fAOaAj1xVw
2.32pm GMT
Here's our news story on the sudden departure of Boeing's CEO:
Boeing on Monday fired its chief executive Dennis Muilenburg as the company battles to regain the trust of regulators, customers and the public after two fatal crashes of its best-selling plane, the 737 Max, that claimed 346 lives.
The Seattle-based company said its chairman David Calhoun will take over as CEO in January....
Related: Boeing ousts chief executive Dennis Muilenburg
2.23pm GMT
Muilenburg's departure comes a week after Boeing finally suspended production of the 737 Max, having failed to persuade regulators to allow the plane to resume flying.
Related: Boeing suspends production of 737 Max model involved in fatal crashes
2.20pm GMT
Wall Street has given its verdict -- Boeing's shares are up 2% in pre-market trading following news of Muilenburg's resignation.
Boeing shares resume trading, jump nearly 2%, after Boeing CEO resigns https://t.co/PLbXqVl0QR pic.twitter.com/H2M4hUvO7k
2.19pm GMT
NEWSFLASH: Boeing's chief executive has resigned.
Dennis Muilenburg is leaving the aircraft maker following heavy criticism of the 737 Max crisis, in which two fatal crashes killed hundreds of passengers.
"The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholder.
1.51pm GMT
Economics professor Nouriel Roubini reckons that Donald Trump's trade war with China will rebound on the US.
The west may not like China's authoritarian state capitalism, but it must get its own house in order. Western countries need to enact economic reforms to reduce inequality and prevent damaging financial crises, as well as political reforms to contain the populist backlash against globalisation, while still upholding the rule of law.
Unfortunately, the current US administration lacks any such strategic vision. The protectionist, unilateralist, illiberal Trump apparently prefers to antagonise US friends and allies, leaving the west divided and ill-equipped to defend and reform the liberal world order that it created. The Chinese probably prefer that Trump be re-elected in 2020. He may be a nuisance in the short run, but, given enough time in office, he will destroy the strategic alliances that form the foundation of American soft and hard power. Like a real-life "Manchurian Candidate," Trump will "make China great again."
Related: Trump's lack of strategic vision is going to make China great again | Nouriel Roubini
1.26pm GMT
China's vice-premier Li Keqiang has hinted that Beijing could cut its benchmark interest rate.
That's another sign that the administration wants to stimulate its economy, on top of today's move to cut tariffs in January.
#China's Premier Li Keqiang says the government will study cuts in lenders' reserve-ratio requirements as well as targeted RRR reductions, CCTV reports.
1.07pm GMT
There's little cheer in the UK's retail sector today.
Shop visitor numbers were down 8% last Saturday, compared to a year ago, dashing hopes of a last rush to the tills. That's a blow to the high street, and out of town malls, who have already suffered weak trading this year.
Saturday was not so super for retailers last weekend, as numbers visiting high streets and shopping centres fell by nearly 8% on the previous year.
With some retailers accepting online orders as late as Christmas Eve, shoppers now have many more choices about the way they shop and have learned to hang on for last-minute bargains.
Related: Fewer people visit UK shops on last Saturday before Christmas
12.59pm GMT
Here's our news story on the Vimto profits warning:
Related: Vimto maker says profits could be hit by Middle East sugar tax
12.49pm GMT
Hopes of a trade war breakthrough mean Wall Street should post its best year since 2013, with the S&P 500 index up around 28% this year.
Fears of a recession have eased, as Reuters explains:
U.S. stock index futures touched new record highs on Monday, as President Donald Trump said over the weekend that the United States and China would "very shortly" sign their so-called Phase One trade pact.
The Phase One deal, announced earlier this month, helped fuel a rally on Wall Street, with its three main indexes hitting record closing highs on Friday. Last week, the S&P 500 also registered its biggest weekly percentage gain since early September.
12.16pm GMT
The US stock market could hit a record high of its own today.
The main indices are up 0.1% in the futures market, as traders take heart from China's plan to cut tariffs.
12.05pm GMT
Switzerland's stock index, the SMI, just hit a record high.
It's up 34 points, or 0.3%, in a pre-Christmas rally.
11.44am GMT
Trade war optimism, and the weaker pound, has driven the FTSE 100 index to a five-month high.
The Footsie index just struck 7617 points for the first time sine July.
It's possible that there will be some bounce in activity given the clarity on Brexit, but any improvement in sentiment is likely to fade as the next Brexit deadline draws closer".
11.19am GMT
Spying on one senior executive is unfortunate. Two looks incredibly suspicious.
So there are red faces at Credit Suisse today, which has admitted that its HR boss was tracked by private detectives earlier this year.
The bank has confirmed that its former head of human resources Peter Goerke was followed for "several days" in February this year by private detectives hired on behalf of the bank. This follows the revelation that Iqbal Khan, the former head of the bank's wealth management division, had been chased by investigators through the streets of Zurich in September.
Credit Suisse insisted at the time that the Khan incident was a one-off and that its chief executive, Tidjane Thiam, had no knowledge of it. However, on Monday it confirmed the second case involving Goerke and once again cleared Thiam of any responsibility.
Related: Credit Suisse admits second executive was followed by private detectives
10.58am GMT
Shares in London are turning higher, on the final full trading day before Christmas.
The FTSE 250 index of medium-sized firms, many focused on the UK, is up 1% today at 21,900. The blue-chip FTSE 100 is now up 33 points, or 0.45%.
10.57am GMT
Bloomberg points out that medical products, orange juice and logs will also benefit from China's lower tariffs:
China will cut import tariffs on goods including frozen avocado, non-frozen orange juice, new asthma and diabetes drugs, key components and machines for manufacturing integrated circuits, and some logs and paper products https://t.co/aEJTcnDazi
10.08am GMT
There's not much drama in the foreign exchange market.
Sterling inched up to $1.303, up 0.2%, having fallen steadily last week as Brexit fears reappeared.
We've made it past the shortest day, but markets are still struggling to wake up and the morning's FX range could be covered by a handkerchief. Sterling's bounced a bit, the won is weaker, the market's got mince pies on the mind.
9.50am GMT
Here's Agathe Demarais, Global Forecasting Director at The Economist Intelligence Unit, on China's tariff cuts:
9.41am GMT
A new sweeteners tax has dealt a bitter blow to Nichols, the maker of Vimto.
The Saudi Arabian and UAE tax authorities have recently implemented an excise tax of 50%, to be levied on the retail price of non-carbonated sweetened drinks.
This tax will be applied to all non-carbonated drinks containing either natural or artificial sweeteners, including sales of Vimto products. Therefore, unlike the UK soft drinks levy, product reformulation is not an option.
Vimto maker Nichols warns a 50% tax on soft drinks in the Gulf could clobber profits next year. The drink is highly popular during Ramadan... as Google search trends in Saudi reveal https://t.co/Kz8JeoZwzl pic.twitter.com/Ee8EBkCWIX
9.16am GMT
Craig Erlam, senior market analyst at OANDA Europe, says investors are optimistic that the trade wars will cool down in 2020.
He writes:
It's been a strong run up to Christmas for the stock markets and it seems traders are taking a little breather in this shortened trading week.
European stocks are trading slightly in negative territory at the start of the week, although there's very little we can read into this, given the lower festive volumes and news flow. It's been a good few week's for investors, spurred primarily by the de-escalation in the trade war, with Trump only this weekend claiming it will be signed very shortly.
9.06am GMT
Donald Trump continues to tantalise us with the prospect of a trade deal with China.
"We just achieved a breakthrough on the trade deal and we will be signing it very shortly."
8.58am GMT
Shares in NMC Healthcare, the UAE's largest healthcare provider, have surged nearly 25% after it responded to an attack from short-seller Muddy Waters.
NMC has launched an 'independent review' of its books, days after Muddy Waters claimed that its asset values, cash balance, reported profits and debt levels could be inaccurate.
8.40am GMT
With two days until Christmas, European stock markets are notably quiet.
Britain's FTSE 100 is down 18 points, or 0.25%; technology, consumer non-cyclicals and industrials are the only sectors rising today.
8.26am GMT
Beijing's tariff-reduction plan wasn't enough to stop Chinese stocks falling today.
#Shanghai Composite fell 1.4% to close at 2962.
Shenzhen Component ended 1.7% lower and the tech-heavy Chinext index tumbled 2%.
Tech stocks led the losses on news that China's National Integrated Circuitry Investment Fund plans to cut its stakes in three tech stocks pic.twitter.com/xwIIsrZWcB
8.13am GMT
Gary Ng, an economist at Natixis in Hong Kong, says Beijing is sending a message....and also trying to support its economy.
"The move in lowering import tariffs reflects that the government wants to reaffirm its stance to the world on freer trade amid the trade war.
Domestically, lowering import tariffs are helpful in reducing business and consumer costs.
8.12am GMT
Bloomberg has calculated that China imported $389bn of the products whose tariffs are being lowered.
That's a significant amount - China imported around $2 trillion of goods, according to customs data.
8.00am GMT
Analysts are welcoming China's plan to cut tariffs.
It is "another positive step in the US-China trade story", says David Madden of CMC Markets (who gets a bonus point for not signing off for Christmas yet).
7.31am GMT
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
Christmas has come early, for those looking for a reduction in the trade tensions that have hurt the world economy this year.
European Opening Calls:#FTSE 7564 -0.25%#DAX 13297 -0.16%#CAC 6016 -0.09%#AEX 608 -0.17%#MIB 23987 -0.07%#IBEX 9655 -0.21%#STOXX 3770 -0.19%
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