Trending tickers: Boeing | Shell | Rolls-Royce | Aramco
Boeing (BA)
Boeing shares slumped in premarket trading after more than 170 of its passenger jets were grounded after a refrigerator-sized hole opened up in a plane mid-flight.
An Alaska Airlines Boeing 737 Max 9 aircraft suffered a blowout that left a gaping hole in the side of the fuselage last Friday.
The plug door tore off the left side of the jet after it took off at Portland, Oregon, en route to Ontario, California, depressurising the plane and forcing the pilots to turn back and land.
Boeing’s reputation has been “shattered” after the incident, according to AJ Bell investment director Russ Mould.
He said: “It is the latest in a string of problems for the company, which include the grounding of 737 Max plans in 2019 after two crashes and subsequent delivery delays and production issues.
Read more:FTSE and European markets lower as Fed rate cut hopes fade
“Safety is of paramount importance in the aviation sector and airlines using 737 Max planes will be thinking long and hard about their future aircraft requirements and how Boeing might play a smaller role, or none at all. That might explain why Airbus shares jumped on Monday as investors are betting it could take even more market share from Boeing.”
The US Federal Aviation Administration ordered the temporary grounding of certain Boeing 737 MAX 9 aircraft operated by US airlines or in US territory.
Shell (SHEL.L)
Energy company Shell has said it saw earnings from its gas trading business jump in the latest quarter but this was partly offset by weakness in its chemicals arm.
It came as the company flagged that it is facing up to $4.5bn (£3.5bn) of impairment charges for the latest quarter.
This is partly driven by assets linked to its Singapore refining and chemicals hub, which the London-based firm is reportedly looking to sell.
On Monday, Shell told shareholders that gas trading for the final three months of 2023 is set to have been “significantly higher” than the third quarter due to seasonal shifts in the market.
It forecast production of between 880 and 920 kilo barrels of oil equivalent per day (kboe/d) in the integrated gas division.
Read more: Stocks that are trending today
Production in the firm’s upstream business, which includes its extraction of oil, is forecast to be between 1,830 and 1,930 kboe/d in the quarter.
Shell said it expects a $200m earnings gain from joint venture operations in the upstream arm, but said this will be offset by exploration well write-offs.
Rolls-Royce (RR.L)
Shares in Rolls-Royce surged after Barclays raised its stance on the engineering giant from "equal weight" to "overweight".
Barclays has increased its price target to 409p from 270p and reiterated the "overweight" rating on the engineering outfit which was the best performer in the FTSE 100 (^FTSE) in 2023.
"Rolls-Royce has derated ~10% in the past month (vs FTSE 100 -3%), in our view a function of de-grossing and longer cycle pressure/macro economics," the bank said in a research report.
Saudi Aramco (2222.SR)
Oil prices (BZ=F) fell after Saudi Arabia cut its prices for exports to Asia to the lowest level since November 2021.
State producer Aramco said February prices for various grades of Saudi crude, including its flagship Arab light, in Asia would fall by $2 a barrel to the lowest level in 27 months.
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The reduction was deeper than had been foreseen, and follows a weakening in the price of Middle Eastern crudes, lacklustre demand from China and surging global supplies.
"Oil watchers are rightly questioning that the kingdom's cut is not only aimed at quelling interference from non-OPEC supply but from its very own cartel membership," John Evans, of oil broker PVM said, Reuters reported.
Watch:FAA orders temporary grounding of certain Boeing planes after Alaska Airlines door detaches midflight
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