What Brexit? Airbus Chief Eyes Opportunity in Post-EU Britain
2019 wasn’t a barnstormer for the air industry. You might say it was a bit of a turbulent year (we couldn’t resist!). But, 2020 might be a takeoff year for the big players, if Airbus’ chief bod’s statement last week is anything to go by. Today, we’ll dig into that a bit before giving you a rundown of the most volatile market events coming up this week. Tray table up? Seat in the upright position? Let’s go!
Airbus Sees Potential in Post-Brexit Britain
Last week, Airbus Chief Exec, Guillaume Faury took to the stage following the UK’s now certain EU exit, stating that the future of the company’s British wing plants is “secure” and adamantly declared that there is “great potential to expand” post Brexit.
Airbus currently employs some 13,500 people in the UK. This number includes around 6,000 at its site in Broughton, Flintshire, in north Wales.
The Frenchman added, “But the nature of the future relationship between the UK and EU is still to be determined.” He continued, “Airbus is committed to the UK and to working with the new government on an ambitious industrial strategy.” Finally, closing with, “We see great potential to improve and expand our operations in the UK this year.”
Monsieur Faury spoke of having increased confidence that Airbus would be able to expand its operations within the UK, following parliament’s decision to back Boris Johnson’s Brexit Bill at the third reading.
The draft legislation now moves to the House of Lords for further debate and later ratification, setting the UK’s exit in stone.
The tone of this speech is a massive departure from previous Airbus statements, which have always been fairly anti-Brexit. The company has many locations across Europe and there was a fear that Brexit would lead to products and components being held at the border, slowing down manufacturing times.
What’s Up With Airbus Stock Lately?
Last year was a good one for Airbus Group, seeing it consolidate on its position as the number one airline manufacturer in the world. The last few months have reflected relatively well in stock prices, too. Following a little end-of-year volatility, the company’s stock (AIR) ultimately saw a 14% rise in value within the last six months.
Airbus SE Stock Price
Source: Business Insider
It remains to be seen what Airbus, or any company for that matter, can achieve in a post-Brexit UK. It will certainly be a big test for many. If you’re a stock trader, things are about to get very interesting!
What Else is Going On this Week?
We have the usual smattering of important trading events coming up this week, here are the ones that should be on your radar:
● We’ll kick the week off on Tuesday, with the Consumer Price Index ex Food & Energy (MoM) for December (USD).
● On Wednesday, the UK’s Consumer Price Index (YoY) for December (GBP) will be released, showing the comparative pricing of a regular basket of consumer goods. This is a key marker of inflation.
● Thursday is a little busier, seeing the EU’s Harmonized Index of Consumer Prices (YoY) (Dec) (EUR); the ECB’s Monetary Policy Meeting Accounts (EUR); and finally, the US’ Retail Sales Control Group (Dec) (USD).
● The week closes with some important quarterly releases from the National Bureau of Statistics of China, namely the country’s Gross Domestic Product (YoY) and QoQ for Q4 (CNY). And also an important one from the US, the Michigan Consumer Sentiment Index (Jan) (USD).
All of these events have been known to cause high volatility in the markets, so they have the potential to represent trading opportunities.
Looking a little further ahead? Check out our 2020 Key Events Calendar!
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Speak soon,
The Contentworks team
