Latest news with #BoeingCEO
Forbes
3 days ago
- Business
- Forbes
Boeing Stock Surges 54% On Trump Tariff Chaos: The DJ TACO Trade
On April 2, 2025—a date President Trump proclaimed "Liberation Day"—the administration announced the most sweeping tariff hike since the Smoot-Hawley Tariff Act, the 1930 law best remembered for triggering a global trade war and deepening the Great Depression. On April 4, Boeing's stock price hit $136.59. It closed Friday, June 6th at $210.86, a whopping 54% return in just two months. What has become known as the TACO trade—TACO stands for "Trump Always Chickens Out"—has earned the president the Wall Street nickname "DJ Taco." When Trump assumed the presidency for the second time, investors expected unprecedented investment opportunities driven by smaller government, balanced budgets, lower taxes, and fewer regulations. Most Republicans and even Democrats assumed as much. But DJ Taco's on-again, off-again tariff policies have become the primary market driver. The sentence "tariffs wreak havoc in markets" is widely understood by everyone on Wall Street. However, DJ Taco's approach makes 1930s communist central planning look like amateur hour, with random, nonsensical decisions creating unexpected opportunities for savvy investors willing to navigate the chaos. Most agree that having a more thoughtful approach to trade, especially with China, makes sense. But for most of the rest of the world, Trump's tariff strategy is more than head-scratching—it's bewildering. Take Boeing's relationships with Japan and Italy, two critical allies and aerospace partners. Boeing's CEO recently stated that tariffs are costing the company $500 million this year alone, yet the stock has soared on the volatility and uncertainty that defines the TACO trade phenomenon. Several fundamental drivers are powering Boeing's remarkable recovery, making it the ultimate beneficiary of the TACO trade dynamic. The Boeing 737 MAX backlog and production capacity support a significant ramp-up, with demand and infrastructure aligned for higher output and revenue growth. This positions the company perfectly to capitalize on both the chaos and eventual stabilization of trade policies. Short-term revenue and profit growth hinge on lifting the FAA's production cap and stabilizing at higher rates, with the potential for $400 billion in revenues by 2034. While an accelerated production increase offers substantial upside, Boeing must prioritize operational stability to avoid jeopardizing long-term prospects and balance sheet improvement. Despite near-term investor impatience, sustainable growth and production reliability remain key—pushing too fast risks undermining Boeing's recovery and future opportunities. The company is gaining momentum with higher production rates and strong net order value, outpacing Airbus in wide-body orders and overall order value. This competitive advantage becomes even more pronounced in the current trade environment, where supply chain disruptions and tariff uncertainties favor established American manufacturers with domestic production capabilities. Airbus leads in single-aisle deliveries but faces significant supply chain constraints, limiting its ability to ramp up production further. Both manufacturers are benefiting from robust demand, reflected in large backlogs, but Boeing's recovery and inventory deliveries give it a near-term edge that the TACO trade amplifies. The European manufacturer's supply chain vulnerabilities become more pronounced when trade policies shift unpredictably. If Airbus resolves its supply chain issues, it could quickly regain delivery share, making 2025 a pivotal year for both companies' production outlooks. However, the current tariff environment creates additional headwinds for international competitors while potentially benefiting domestic producers like Boeing. The TACO trade represents more than just Trump's tendency to reverse course on harsh rhetoric—it embodies the market's adaptation to policy whiplash. Investors have learned to position themselves for both the initial shock of aggressive announcements and the subsequent backpedaling that typically follows. Boeing exemplifies this dynamic perfectly. The company benefits from being perceived as both a victim of trade wars (driving sympathy buying) and a beneficiary of America First policies (attracting nationalist investment). When tariffs are announced, Boeing initially suffers due to retaliation concerns and supply chain disruptions. But when Trump inevitably "chickens out" or moderates his position, Boeing surges on relief rallies and renewed optimism about international partnerships. The aerospace giant's stock performance reflects this pattern: initial volatility followed by sustained gains as markets recognize the underlying strength of the business model and the temporary nature of most trade disruptions. Smart investors have learned to buy Boeing on tariff announcements and hold through the eventual policy reversals. DJ Taco's trade policies create a unique investment environment where companies with strong fundamentals but international exposure become prime TACO trade candidates. Boeing's 54% return in two months demonstrates how market participants can profit from policy inconsistency when they understand the underlying pattern. The key to successful TACO trading lies in identifying companies that will ultimately benefit from policy reversals while possessing the financial strength to weather initial disruptions. Boeing, with its essential role in American aerospace dominance and global commercial aviation, represents the perfect storm of characteristics that make TACO trades profitable. As we move forward, expect continued volatility around trade announcements, but also recognize that the TACO trade pattern creates predictable opportunities for investors willing to embrace the chaos of DJ Taco's policy-making style. Note: The author owns securities in some of the companies mentioned in this article.
Trade Arabia
15-05-2025
- Business
- Trade Arabia
BIGGEST ORDER: Qatar Airways to buy 210 Boeing widebody jets
Qatar Airways and Boeing have announced that the carrier will purchase up to 210 widebody jets, which sets new records as the largest widebody order for Boeing, including the largest order for 787 Dreamliners and Qatar Airways largest-ever order. This purchase, which also includes additional orders for Boeing's new 777-9, will support approximately 400,000 jobs in the US and position the award-winning Middle Eastern airline for further international expansion. The order includes: * 130 787 Dreamliners, the long-range, ultra-efficient widebody airplane family that has delivered a 25% fuel-use improvement compared to airplanes it replaces and superior comfort for passengers. Ten orders were previously booked as unidentified. * 30 777-9s, the world's largest twin-engine airplane that is designed to set new standards in efficiency by reducing fuel use and emissions by 25% compared to the airplanes it replaces, while elevating the passenger flight experience. * Options for an additional 50 787 and 777X airplanes. US President Donald J Trump and HH Sheikh Tamim bin Hamad Al Thani, the Amir of Qatar joined Boeing President and CEO Kelly Ortberg, Boeing Commercial Airplanes President and CEO Stephanie Pope and Qatar Airways Group Chief Executive Officer Eng Badr Mohammed Al-Meer to witness the order signing. "We are happy to announce our agreement with Boeing and our partnership in the largest aircraft order in our history. A critical next step for Qatar Airways on our path as we invest in the cleanest, youngest and most efficient fleet in global aviation. This so we can meet the strong demand in the airline as we seamlessly connect passengers to the world better than anyone," said Eng Al-Meer. "After two consecutive years of record-breaking commercial performance and with this historic Boeing aircraft order we're not simply chasing scale, we're building strength that will allow us to continue to deliver our unmatched products and customer experiences. We thank our Boeing partners for answering the call and look forward to a future of continued smart growth together." "We are deeply honoured that Qatar Airways has placed this record-breaking order with Boeing, one that solidifies their future fleet with our market-leading widebody airplane family at its center," said Stephanie Pope. "Our team is looking forward to building 787s and 777s for Qatar Airways into the next decade as they connect more people and businesses around the world with unmatched efficiency and comfort."
CNA
14-05-2025
- Business
- CNA
Qatar Airways signs deal for 160 Boeing jets during Trump visit
DOHA: State carrier Qatar Airways signed a deal on Wednesday (May 14) to purchase jets from US manufacturer Boeing during President Donald Trump's visit to the Gulf Arab country. Trump said the deal was worth US$200 billion and included 160 jets. Trump and Qatar's Emir Sheikh Tamim bin Hamad Al-Thani witnessed the signing ceremony in Doha. The deal was signed during Trump's second stop on a tour of Gulf states after he struck a string of deals with Saudi Arabia on Tuesday. Trump said Boeing CEO Kelly Ortberg, who signed the deal with Qatar Airways CEO Badr Mohammed Al-Meer next to Trump and the Qatari emir, told him "it's the largest order of jets in the history of Boeing, that's good". Trump added: "It's over US$200 billion but 160 in terms of the jets, that's fantastic. So that's a record, Kelly, and congratulations to Boeing. Get those planes out there, get them out there." It's not clear which Boeing aircraft models would be part of the deal and whether the orders from Qatar are firm, which require a deposit and several contractual obligations, or are options.
Free Malaysia Today
14-05-2025
- Business
- Free Malaysia Today
Qatar Airways signs deal for 160 Boeing jets during Trump's visit
The president and Qatar's Emir, Sheikh Tamim bin Hamad Al-Thani, witnessed the signing ceremony in Doha. (AP pic) DOHA : State carrier Qatar Airways signed a deal on Wednesday to purchase jets from US manufacturer Boeing during President Donald Trump's visit to the Gulf Arab country. Trump said the deal was worth US$200 billion and included 160 jets. Trump and Qatar's Emir Sheikh Tamim bin Hamad Al-Thani witnessed the signing ceremony in Doha. The deal was signed during Trump's second stop on a tour of Gulf states after he struck a string of deals with Saudi Arabia on Tuesday. Trump said Boeing CEO Kelly Ortberg, who signed the deal with Qatar Airways CEO Badr Mohammed Al-Meer next to Trump and the Qatari emir, told him 'it's the largest order of jets in the history of Boeing, that's good'. Trump added: 'It's over US$200 billion, but 160 in terms of the jets, that's fantastic. So, that's a record, Kelly, and congratulations to Boeing. Get those planes out there, get them out there.' It's not clear which Boeing aircraft models would be part of the deal and whether the orders from Qatar are firm, which require a deposit and several contractual obligations, or are options. Boeing no longer issues catalogue prices, but based on the most recent published value for its most expensive jet, the 777X, a deal for 160 of the long-range aircraft would be worth some US$70 billion. Aviation analysts say that airlines typically get large discounts for bulk deals. Boeing was not immediately available for comment. Qatar Airways did not immediately respond to a request for clarification or comment.
