12th March, 2024 – A very important suggestion about how the FED should deal with interest rates’ cuts in the US has been presented by JP Morgan CEO, Jamie Dimon, during an Australian Financial Review business meeting. At this moment, the majority of investors think the US’ central bank will not introduce changes in March and May, while the first remarkable cut is expected to be applied in June. Next week the FED will meet, determining if these expectations will be met or not, while Powell stated that they’re about to have all the sufficient information and confidence it needs to introduce these changes. On the other hand, Dimon is very skeptical about the possible schedule of such cuts, thinking that the FED should step in only after June and only if it has a more clear view regarding the main macroeconomic trends taking place in the states. Furthermore, the US banker continues to be alert about the fact that inflation will probably remain high, implying the impossibility to reduce rates drastically.
Southwest Airlines (LUV) is currently reviewing all its capacity plans, as well as capital spending and expected financial results for 2024 mainly due to the huge delivery delays Boeing is responsible for. The latter, which is the only supplier of the Dallas based airline company, informed Southwest that 737 Max 8 deliveries will decrease from 58 to 46, while Boeing was expected not only to deliver Max 8 models, but also the smaller one, Max 7, that the Federal Aviation Administration is still in the process of approving. These statements, released at a JP Morgan industry conference, give a clear picture of the relevant difficulties Boeing is currently facing with respect to production and quality control of its airplanes, generating huge negative impacts on customers’ businesses. As a result, Southwest Airlines shares closed at 28.76 (–14.86%) by 4:00 PM EST.
Author: Piero Foberti