The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Boeing Co is set to launch a capital raise as early as Monday, aiming to secure more than US$15 billion in funding, according to sources familiar with the matter. The move is designed to bolster the company’s liquidity as it navigates the impact of a crippling strike and ongoing production issues.
The capital raise will likely include a mix of shares and debt that can be converted into equity, and the total amount could increase depending on investor demand. The airplane maker's advisers have been lining up potential investors for the offering, though timing and specifics of the transaction may still change.
This potential US$15 billion equity raise would be the largest since SoftBank's stake sale in T-Mobile US Inc in 2020, data compiled by Bloomberg shows. Boeing recently received clearance from the US Securities and Exchange Commission to raise as much as US$25 billion in equity and debt, a move that would help the company avoid a downgrade to junk credit status.
Boeing is burning through significant cash, with US$4 billion expected in the fourth quarter, bringing its total cash outflow to about US$14 billion for 2024. The company anticipates continued cash burn through the first half of next year as it restarts production, including the assembly of its crucial 737 Max jetliner.
The strike, now in its seventh week, continues to strain Boeing’s operations. Factory workers recently rejected a contract offer, and the company is planning to cut its workforce by 10%, including reductions among executives and managers.
Boeing has also put a new US$10 billion credit agreement in place to secure short-term liquidity and is reviewing its broad portfolio, including the future of its Starliner space capsule program.
Boeing shares have dropped more than 40% this year, as the company grapples with rising losses and missed revenue expectations.
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