Farnborough airshow announces $192 bn in orders

Britain’s defense minister, Gavin Wiliamson (UNSEEN), unveiled a model of a new jet fighter, called ‘Tempest’ at the Farnborough Airshow, in Farnborough, Britain July 16, 2018. (Reuters)
Updated 21 July 2018
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Farnborough airshow announces $192 bn in orders

  • The biannual air industry gathering recorded more than 1,400 commercial aircraft orders
  • The total is an increase of $67.5 billion on the last airshow two years ago

LONDON: England’s Farnborough airshow this week saw deals worth $192 billion (164 billion euros), a jump of more than 50 percent compared to 2016, in a sign of “confidence in global trade,” organizers said Saturday.
The biannual air industry gathering recorded more than 1,400 commercial aircraft orders, valued at $154 billion, alongside at least 1,432 deals for engines worth $21.96 billion.
The total is an increase of $67.5 billion on the last airshow two years ago, with the mile-high rivalry between Boeing and Airbus — who made the majority of plane orders — swelling sales.
US aviation giant Boeing announced 676 orders, totalling $92 billion at list prices, as of Thursday, while its European competitor had unveiled 431 orders worth $70 billion.
“The major deals announced this week demonstrate how confident the aerospace industry is and the role of Farnborough as an economic barometer,” said Farnborough International chief executive Gareth Rogers.
The show attracted its most global attendance ever with around 100 countries represented and a record Chinese presence, Farnborough said in a statement.
There was also a near-10 percent rise in trade visitors compared to previous years, with more than 80,000 visitors passing through the gates, it added.


World’s biggest sovereign fund worried about trade wars

Updated 21 August 2018
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World’s biggest sovereign fund worried about trade wars

  • The fund posted a positive return of 1.8 percent, or 167 billion kroner ($19.8 billion), in the second quarter
  • Markets are worried about a trade dispute between the United States and China

OSLO: The managers of Norway’s sovereign wealth fund, the world’s biggest, expressed concern Tuesday about global trade tensions, which could heavily impact its value.
The fund posted a positive return of 1.8 percent, or 167 billion kroner ($19.8 billion), in the second quarter, helping erase a loss of 171 billion kroner in January-March that was attributed to a volatile stock market.
The Government Pension Fund Global, which saw its total value swell to 8.33 trillion kroner by the end of June, manages the country’s oil revenues in order to finance Norway’s generous welfare state when its oil and gas wells run dry.
But Norway’s central bank, which runs the fund, said geopolitical and trade tensions presented a risk.
“It’s fair to say that increased trade barriers or even trade wars will not be beneficial for the fund as a long-term global investor,” Trond Grande, the deputy chief of Norges Bank Investment Management, told reporters.
Markets are worried about a trade dispute between the United States and China. Accusing Beijing of unfair competition, the US administration is considering slapping a new round of levies worth $200 billion on Chinese goods.
Talks between the two slated for Wednesday and Thursday aimed at resolving the dispute have however eased concerns somewhat.
Following US-Turkey tensions that sent the Turkish lira and the Istanbul stock market tumbling, the Norwegian fund said its assets there were worth less than the 23 billion kroner they were at the beginning of the year.
“We’ve seen the market rise for a long time, that there are different political and geopolitical events in the world that can affect the market, and we have to be prepared for the fact that (the value of) the fund can go down a lot,” Grande concluded.
The fund’s strong second quarter was attributed primarily to its share portfolio, which accounts for 66.8 percent of its investments and which rose by 2.7 percent.
Real estate holdings, which account for 2.6 percent of its holdings, rose by 1.9 percent, while bond investments, which represent 30.6 percent, remained flat.
Faced with falling oil revenues in recent years, the Norwegian government has been tapping the fund to finance public spending since 2015. But with oil prices recovering, the fund registered its first inflow in three years in June.