BA Stock Drops 7% as Boeing Revises Its BMO Due to COVID-19
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Following the revised BMO that already had its impact on Boeing shares, airline stocks fell after President Donald Trump called for a halt in the stimulus negotiations.
Leading aircraft manufacturer the Boeing Co (NYSE: BA) has revised its previous bullish Boeing Market Outlook (BMO) due to the effects of the COVID-19 pandemic. According to the Boeing Co’s (BA) new BMO, the impact of the COVID-19 pandemic has changed the company’s view of near-, medium- and long-term market dynamics, projecting that the airline industry will continue to bear the impact of the coronavirus pandemic for the next ten years.
Per the revised BMO from BA, the company forecasts a total market value of $8.5 trillion (down from $8.7 trillion in its previous BMO) over the next decade including demand for aerospace products and services. The BMO also forecasts the demand for commercial airlines to drop by about 11% to 18,350 commercial plans from its 2019 projections.
In addition to the released BMO, the Boeing (BA) also released the 2020 Commercial Market Outlook (CMO), a forecast of the market outlook for the next 20 years. In the CMO, Boeing expects that in the next 20 years, passenger traffic growth will increase by an average of 4% per year, with the global commercial fleet expected to reach 48,400 by 2039, up from 25,900 airplanes today.
Despite the strain on the global airline industry, the firm believes the industry is resilient to bounce back to its winning ways in about a decade or two from now.
“Commercial aviation is facing historic challenges this year, significantly affecting near- and medium-term demand for airplanes and services,” said Darren Hulst, vice president, Commercial Marketing. “Yet history has also proven air travel to be resilient time and again. The current disruption will inform airline fleet strategies long into the future, as airlines focus on building versatile fleets, networks, and business model innovations that deliver the most capability and greatest efficiency at the lowest risk for sustainable growth.”
Meanwhile, the revised BMO caused the shares of Boeing to close at $159.54 on Tuesday with a 6.81% drop in the stock price. The loss is currently being corrected in the pre-market as the stock has gained 2.18% at the time of writing.
Following the BMO Revision by Boeing, Trump Calls for Aid for the Airline Sector
Following the revised BMO that already had its impact on BA’s shares, general airline stocks fell after President Donald Trump called for a halt in the stimulus negotiations until after the November 3 Presidential elections.
However, the president has reviewed his stance, but for the airline industry in which he said late Tuesday:
“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support.”
Should the aid come as expected, airline operators may be able to save their workers from been laid-off.
“Time already ran out for U.S. airlines and many of our employees, yet there is a glimmer of hope that our leaders in Washington will act and save these jobs before it’s too late to turn back the clock,” Airlines for America, a lobbying group that represents major U.S. airlines, said in a statement.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago
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3 Minuten ago
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Dezember 29, 2020
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While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.
In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.
The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.
With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.
Grayscale’s AUM May See More Boost in 2021
While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.
Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.
With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Altcoin Rally Dimming Bitcoin’s Shine, Polkadot Gains 34% in One Week
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2 Stunden ago
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Dezember 29, 2020
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Polkadot (DOT) saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value.
Bitcoin bullish run looks to have come to a halt amidst an altcoin rally which has seen relatively lower coins put up impressive performances in the past few weeks. Bitcoin dominance is gradually fading as many experts believe the biggest digital coin is backing down as some top altcoin are showing strong “moves” or signals.
Bitcoin hit an all-time high over the weekend, the third time its price has done so in just over 2 months. The price of the biggest digital coin touched $28,400 on December 27, before a lightning drop took it to $27,000 just hours of that incredible feat.
Bitcoin failed to hold onto the $27,000 mark as its price further dropped to $26,000 a day after and is now testing lower levels centered on $26,000 as immediate support. Reports from crypto exchanges revealed BTC/USD trading at lows of $25,830 during the early hours of December 29.
While Bitcoin has seen red over a couple of days, some altcoins are putting up impressive numbers, giving off signals of a strong altcoin rally. Despite XRP’s current issues, the altcoin market is showing glimpses of its glory days as some digital coins are poised to see major gains over the next couple of weeks. Ethereum (ETH) is at the forefront of the rally, with its price climbing above $700for the first time since May 2018.
Polkadot (DOT) also saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value. The coin is now the seventh-largest token by market cap. Kusama (KSM), a cousin of Polkadot, also saw its price gain 46% last week, pushing its price from $43.1 to $63. The digital token is currently trading at $56 but experts are adamant a breakout above $65 is possible as the token has rebounded off the 20-day exponential moving average ($50.90)
Speaking on the possibility of a long term altcoin rally, analyst Van de Poppe stated that altcoins are next in line to see greens. He added that the next “impulse wave” on Bitcoin next year should be able to take the market to $40,000 or $50,000, but until then, the possibility of a continuance altcoin rally is very much likely.
Although many factors could be in play with regards to the latest Bitcoin price dip, it’s recent fallout with Ripple’s XRP leads the way. Ripple was hit with a lawsuit from the United States Security and Exchange Commission (SEC) and subsequently suffered drops that left its price in a pit. XRP, the fourth-largest cryptocurrency by market cap, is now trading at $0.20 as news broke that Coinbase, a major US cryptocurrency exchange has decided to suspend its trading from next month.
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