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US Mnuchin says Boeing 737 Max crisis could slow US growth by a half point in 2020

00:15  13 january  2020
00:15  13 january  2020 Source:   cnbc.com

Boeing now says 737 Max pilots need simulator time

  Boeing now says 737 Max pilots need simulator time The recommendation is a reversal from the company's previous position that existing 737 crews needed only iPad-based training to fly the plane.Though aviation safety agencies like the Federal Aviation Administration will ultimately determine whether simulator training is needed, it's likely that regulators around the world will require it. Simulator sessions will require extra time and expense for airlines struggling to get their Max fleets back in the air.

Treasury Secretary Steven Mnuchin said Sunday that Boeing 's 737 Max crisis could curb U . S . GDP in 2020 by half a point , though he expects the economy should still experience roughly 2.5% in economic growth . Boeing 's 737 Max jet has been grounded since March after two crashes killed 346

Troubles at aircraft maker Boeing Co. could trim about half a point from U . S . GDP in 2020 but economic growth should still come in at about 2.5 Mnuchin said an English-language version of the detailed agreement will be released this week and a suggestion that some items already agreed to

  • Treasury Secretary Steven Mnuchin said Sunday that Boeing's 737 Max crisis could curb U.S. GDP in 2020 by half a point, though he expects the economy should still experience roughly 2.5% in economic growth.
  • Boeing's 737 Max jet has been grounded since March after two crashes killed 346 people.
  • Regulators say they have no firm timeline to allow the planes to fly again, and U.S. airlines have taken the planes out of their schedules until at least March.
Steven Mnuchin wearing a suit and tie: U.S. Treasury Secretary Mnuchin announces new sanctions on Iran in the Brady Press Briefing Room of the White House in Washington, January 10, 2020.© Provided by CNBC U.S. Treasury Secretary Mnuchin announces new sanctions on Iran in the Brady Press Briefing Room of the White House in Washington, January 10, 2020.

Treasury Secretary Steven Mnuchin said Sunday that Boeing's 737 Max crisis could curb U.S. GDP in 2020 by half a point, though he expects the economy should still experience roughly 2.5% in economic growth.

FAA seeks to fine Boeing $5.4 million over faulty Max parts

  FAA seeks to fine Boeing $5.4 million over faulty Max parts The Federal Aviation Administration said Friday it plans to fine Boeing $5.4 million for installing substandard parts on the wings of 178 of its 737 Max jetliners, which have been grounded since two crashes linked to other systems on the planes. 

Joseph Brusuelas, chief economist at RMS US , also expects a half -percentage point drop. Another factor that could hurt the economy is layoffs. Boeing has said it has no plans to cut staff because of If, however Boeing resumes production after the first quarter of 2020 , economists could write off the

Boeing Co.’s 737 MAX planes are unlikely to be ready to carry passengers again until 2020 because of the time it will take to fix flight-control software and complete other steps, an increasing number of government and industry officials say , even as the company strives to get its jet back into service this

"There's no question that the Boeing situation is going to slow down the GDP numbers," Mnuchin in an interview on Fox News' "Sunday Morning Futures." "Boeing is one of the largest exporters, and with the 737 Max, I think that could impact GDP as much as 50 basis points this year."

Boeing's 737 Max jet has been grounded since March after two crashes killed 346 people. Regulators say they have no firm timeline to allow the planes to fly again, and U.S. airlines have taken the planes out of their schedules until at least March.

The fallout has cut more than $50 billion from Boeing's market value and has cost airlines more than $1 billion.

"For this year, we've been looking at 2.5 to 3%, as I said, it may be closer to 2.5 because of the adjustment of the Boeing numbers," Mnuchin said regarding 2020 economic growth. "But this would have been 3% otherwise."

New Boeing CEO takes over as 737 Max problems remain unresolved

  New Boeing CEO takes over as 737 Max problems remain unresolved The aircraft maker has a lot of work to do.David L. Calhoun will fill the role of president and CEO of Boeing, according to a company press release Monday. He takes over the position from interim CEO Greg Smith, who temporarily led the company after former CEO Dennis Muilenburg left in December.

Boeing (BA) says it continues to work on plans for the potential plane, even in the face of the 737 Max crisis . Asked last month by an analyst how long United Airlines (UAL) could wait before deciding which plane it would order for that part of the market, CFO Gerald Laderman said , " We have some

Boeing Max Crisis Slows Airline Growth as Ryanair Pares Plan. With a return date for the Max still uncertain after two fatal crashes, Ryanair is likely to receive barely half of the 58 planes it was expecting for the 2020 peak schedule, the Irish company said Tuesday, estimating that the reduction

The U.S. economy remains in the midst of the longest economic expansion on record, though some economists expect slowing growth and a potential recession over the next 12 months.

Mnuchin said he expects the U.S.-China phase-one trade deal and the U.S-Mexico-Canada Agreement to add significantly to economic growth in 2020.

The U.S. and China plan to sign a phase-one trade deal on Wednesday, which includes China purchasing $200 billion worth of U.S. goods over the next two years and the U.S. reducing tariffs on about $120 billion worth of Chinese products.

The Senate Finance Committee also approved the new North American trade deal last Tuesday, but the deal still needs to be passed by the full Senate. The trade deal will take effect once all three countries ratify it. The USMCA makes changes to protect auto industry workers, increases access to Canadian dairy markets for U.S. farmers and updates digital trade rules.

Boeing finds another software flaw that might delay 737 Max's return .
Boeing is dealing with another 737 Max software flaw that could prevent the troubled aircraft from returning to the skies, but this time it's not a safety issue. The company has confirmed that it's fixing a flaw preventing the 737 Max's flight control computers from starting up and verifying that they're ready for flight -- in other words, the airliner couldn't even take off. A spokesperson said Boeing was "working with the FAA" on submittingThis may have a ripple effect on Boeing's ability to complete testing.

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