General Electric's (GE -1.1%) pension obligations total $92B, more than the company's $80B market cap, but UBS analyst Peter Lennox-King thinks the pension costs will fall in coming years, which should help earnings and please shareholders. Read More...

Following two crashes since October, Boeing has slashed its monthly production of its aircraft by 20% and is likely to produce only 42 a month instead of 52.But, so far Boeing’s shares have held up relatively well after initially dropping to more than 10% in mid-March following the crash of an Ethiopian Airlines 737 Max 8.

Raytheon shares declined about -3% Wednesday, following a downgrade by a UBS analyst. Analyst Myles Walton lowered his rating on the defense contractor’s stock to neutral from buy, while also reducing his 12-month price target to $200 from $220. Walton mentioned in a note to clients that Raytheon already has outperformed the large-cap defense average by around 900 basis points this year, and that it is already below average free cash flow yield for 2019 and 2020.  In February, Raytheon reported its revenue falling short of expectations, and also expressed a cautious guidance. However, Raytheon’s upcoming projects might indicate a ray of hope for the firm.On Tuesday, the company announced that the U.S. Air Force Life Cycle Management Center and a consortium of tech firms led by Raytheon would be collaborating on modernizing the Space Defense Operations Center, which is a 1990s system that monitors space debris.  

Boeing (BA +1.4%) pops higher after unveiling its software fix, cockpit alerts and additional pilot training for its 737 MAX planes, saying the changes will boost the safety of the aircraft which has been involved in two deadly crashes since October. Read More...

The financial services unit of the American multinational conglomerate General Electric, GE Capital, has finally agreed to pay $49 million to a pair of Florida hedge funds to settle claims it was complicit in a convicted fraudster, Thomas Petters’ $3.65 billion Ponzi scheme. A bankruptcy trustee working for those two Florida hedge funds lost $650 million when the Ponzi scheme was running full force in 2008.The trustee accused GE of co-conspiring, on grounds that the company remained silent in 2000 when its employees found out that Petters was operating the scheme. The accusation is further aggravated by the fact the GE Capital was a lender to businesses controlled by Petters starting in 1998.

Dealing a fresh blow to Boeing, who has been grappling with the grounding of its best-selling jet 737 Max, its arch and biggest rival Airbus announced on Monday that the company has secured a $35 billion jet deal from China. Signed during the recent French capital visit of the Chinese President Xi Jinping, according to the terms of the deal, Toulouse-based Airbus is likely to supply 300 passenger jets to Chinese airlines. In an official statement, Airbus has confirmed that it had signed an agreement with China Aviation Supplies Holding Company, covering the purchase by Chinese airlines of Airbus aircraft including 290 A320-series narrow-body planes and 10 A350 XWB wide-body jet. Airbus’s Commercial Aircraft President, Guillaume Faury, said in a statement that the company "is honored to support the growth of China's civil aviation with our leading aircraft families - single-aisle and wide-bodies." The mammoth order for Airbus is likely to be a big blow for Boeing, as it contrasts st

The Boeing 737 trouble doesn’t seem to be ending, as Indonesia’s national airline handed Boeing its first official order cancelation following two deadly crashes in recent months. Indonesian airline, Garuda, on Friday publicly announced it has told Boeing that it wishes to cancel its multibillion-dollar order for Boeing's 737 Max 8 passenger jet, citing that its passengers had lost confidence in the model after two deadly crashes in five months. According to Garuda, it already sent a letter to Boeing on March 14, seeking to cancel the pending delivery of its 2014 order of 50 planes, of which just one had been delivered so far. Estimated to be worth $4.9 billion, the cancelled order is the latest blow to Boeing over the 737 Max - its bestselling passenger jet. The plane has been grounded by many authorities across different countries like U.S., Europe, China and Indonesia, but it's the first airline to say it's canceling a 737 Max 8 order. Garuda spokesperson Ik

The Boeing 737 MAX, the type of plane involved in a deadly crash in Ethiopia over the weekend, is still airworthy, the Federal Aviation Administration said Monday, giving a vote of confidence to the type of jet that has been involved in two deadly crashes since October. Read More...

airlines attempted Monday to assure nervous customers that the Boeing 737 MAX jets they fly are safe, a day after one of the new jets operated by Ethiopian Airlines crashed outside of Addis Ababa and killed all 157 people on board.READ MORE...

Lockheed Martin, best known for the F-35 fighter, has been awarded a $945.9 million down payment on a $15 billion missile-defense agreement for Saudi -- called the Arabia Terminal High Altitude Area Defense (THAAD) -- by the Pentagon. This move could potentially alleviate the long standing tensions between Saudi and the Western governments.It is also the first step in a larger deal struck last year between the U.S. and Saudi Arabia that will eventually benefit the Saudi kingdom with 44 THAAD launchers, missiles and affiliated equipment. Tensions between the Saudi and the U.S government had increased over the Saudi-linked killing of the journalist Jamal Khashoggi last October amidst criticism of Saudi’s role in an on-going civil war in Yemen.

In a meeting with a J.P. Morgan Chase (JPM) analyst on Tuesday, the CEO of General Electric, Larry Culp, said that the company’s free cash flow – money left over after a company pays for operating expenses and capital spending – will be negative in 2019.After Culp’s comments, GE’s shares plunged nearly 4.7% to end the day at $9.89. Free cash flow is often an indicator of a company's operating efficiency and as such is closely watched by investors. The company generated ~$4.5 billion of free cash flow last year, but if it’s going negative from there, that means it is struggling with a few pressing issues.

General Electric Co is setting aside one of the largest amounts ever to cover potential losses on policies that provide long-term care in nursing facilities and patients’ homes.But insurance experts are concerned that may not be enough. Read More...

The company also announced its plans to use the cash received from the deal to defray its debts. According to the terms of the deal, Danaher will pay $21 billion in cash to GE but at the same time it will also assume certain GE pension liabilities. Expected to be complete by the fourth quarter, the deal is likely to see GE Life Sciences unit is expected to join Danaher’s Life Science as a stand-alone business.Danaher’s stock also jumped 8.5% to close at $123.15 a share. GE has already seen yields on its debt bonds fall to low levels along with a decline in risk premium demanded by investors in exchange for holding GE paper.

The transaction is expected to close in the fourth quarter of this year. Chief Executive Officer Larry Culp has prioritized the three “Cs” of customers, competition, and cash flow in turning around GE.He’s already cut GE's quarterly dividend and announced several smaller asset sales to ultimately bring net industrial leverage down to 2.5 times a measure of earnings in an effort to regain a single-A credit rating. “This deal takes us approximately two-thirds of the way toward our goal of reducing net industrial leverage to 2.5 Ebitda,” Culp said Monday in an interview, referring to earnings before interest, tax, depreciation and amortization.

Last week Airbus announced the termination of A380 jumbo jet production by 2021, in favor of smaller wide bodies such as Boeing 787 Dreamliner that could enable airlines operate more point-to-point routes bypassing the most congested hubs. However, there can still be a market for large wide body aircrafts if they can offer a unit cost advantage over their smaller counterparts.Boeing’s new 777X aircraft family, an updated version of Boeing’s highly successful 777, that will hit the market next year is likely to dominate it. Its new wing and state-of-the-art engines will guarantee additional range and better fuel efficiency.

Up until that time, the company will produce 17 more A380s, including 14 for Emirates and 3 for Japanese airline ANA. This decision came after Emirates cut back orders of the iconic aircraft in favor of 70 smaller A350 and A330neo models.The decision is not without consequences, as 3,000-3,500 jobs may be jeopardized. However, being a favorite among flyers and also a key differentiator, Emirates CEO and Chairman has assured that they will continue using Airbus’ flagship aircraft well into 2030s. Airbus’ president has expressed regret over Emirates’ decision, but he understands the changing and competitive nature of the industry that now sees A330neo and A350 crucial for future growth.

Amidst concerns over a possible Russian insurgency following Moscow’s annexation of Crimea in 2014, Poland is seeking ties with the U.S. to significantly increase the Polish army’s defense capabilities.In a soon-to-be signed deal, Poland will buy mobile rocket launchers worth $414 million from the U.S. weapon giant Lockheed Martin. According to the terms of the contract, it includes M-142 HIMARS system capable of launching six guided rockets with a range of 70 km (37 miles), or a single missile with up to 300 km range along with 18 combat launchers, two training launchers, shorter-range Guided Multiple Launch Rocket System (GMLRS) missiles and longer-range Army Tactical Missile System (ATACMS) tactical missiles.

According to the Department of Justice, the US is suing Lockheed Martin Services, Mission Support Alliance, and an LMT executive for allegations of a multibillion-dollar agreement to clean up the Hanford, Wash nuclear site, the biggest environmental cleanup in US history. The allegation entails that LMT paid more than $1 million to executives of Mission Support Alliance, a joint venture that it partially owned, to help win a $232 million subcontract for providing management and technology support at the nuclear site during 2010-16.A spokeswoman for Mission Support Alliance said the company disagrees with the allegations, and they emphasized the firm’s commitment to “integrity and compliance at all levels of the company.”

Overcoming a joint bid from Pratt and Whitney (UTX) and Honeywell (HON), General Electric (GE) secured a $517 million contract to engineer, develop and manufacture engines for the U.S Army’s next generation of helicopters under the Improved Turbine Engine Program (ITEP). The current model of engine, T701, also built by GE, will be replaced by the new T901 engines that will power the Army’s Boeing AH-64 Apaches and Sikorsky UH-60 Black Hawks, both under the Utility Tactical Transport Aircraft System (UTTAS) program. With this upcoming masterpiece, GE Aviation CEO, Tony Mathis expressed optimism that this engine could also potentially outfit the Army’s next generation reconnaissance helicopter in the Future Vertical Lift family of systems.He also added that the company is honored to be chosen by the Army to continue powering their Black Hawks and Apaches for decades to come.

Yesterday, it was reported that Emirates was reconsidering on adding to its Airubs A380 fleet.That can't be good for Boeing's (NYSE:BA) 787 either, reports The Air Current.