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China satisfied with Boeing 737 MAX changes, seeks industry feedback – document

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November 14, 2021

By Stella Qiu and Yew Lun Tian

BEIJING (Reuters) – China’s aviation regulator has told airlines it is satisfied that design changes Boeing Co proposed for its 737 MAX plane could resolve safety problems, in a sign it is closer to lifting a more than two-year flight ban in Chinese skies.

The Civil Aviation Administration of China (CAAC) invited airlines to give feedback on a proposed airworthiness directive for the 737 MAX by Nov. 26, according to an undated notice seen by Reuters.

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The directive outlines specific procedures for pilots to perform in case of problems similar to those that emerged in two deadly crashes before the plane’s grounding in March 2019. It also lists all the systems that must be functioning in order for the plane to be dispatched.

A return to the skies in China, the world’s biggest aircraft market, would be a major boon to Boeing. Broker Jefferies said in September an announcement would be worth a 5% boost to the stock price.

The United States and Europe last year sought industry feedback on similar proposed directives before ultimately approving the return of the 737 MAX.

CAAC’s notice said after a comprehensive review of the changes Boeing proposed, including to the design of the aviation control software and display system, it assessed the changes could remove the unsafe situations that led to the crashes.

The agency did not respond immediately to a request for comment on the notice. A Boeing spokesperson said the airline continued to work with regulators around the world to return the 737 MAX to service.

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The aerospace giant has said the 737 MAX performed a successful test flight for CAAC in August.

Boeing Chief Executive David Calhoun said last month the company was working toward gaining Chinese approvals by the end of the year for the 737 MAX to fly, with deliveries expected to resume in the first quarter of 2022.

Around a third of about 370 undelivered 737 MAX airplanes in storage are for Chinese customers, Boeing said last month.

Before the 737 MAX was grounded, Boeing was selling one-quarter of the planes it built annually to Chinese buyers, its largest customer.

Other Asia-Pacific countries – including Singapore, Malaysia, India, Japan, Australia and Fiji – have already approved the return of the 737 MAX.

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Beyond safety concerns, Boeing’s sales in China have been hobbled by U.S.-China trade tensions, with Washington accusing Beijing of blocking purchases of Boeing planes by its domestic airlines.

(Reporting by Stella Qiu and Yew Lun Tian; Editing by Jamie Freed and William Mallard)

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UK firms struggle to find staff, see higher inflation – BoE survey

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December 2, 2021

LONDON (Reuters) – British companies are struggling to find the staff they need and expect higher inflation in the year ahead, according to a survey published on Thursday by the Bank of England which is weighing up whether to raise interest rates this month.

The BoE’s monthly Decision Maker Panel survey showed 85% of respondent firms were finding it harder to recruit new employees compared to normal, with 58% reporting it to be much harder.

The survey also showed year-ahead annual price inflation was expected to be 4.2%, up from 3.9% in the October survey.

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(Writing by William Schomberg, editing by Andy Bruce)

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Sustainable investors look for profits in fuzzy data

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December 2, 2021

By Ross Kerber and Simon Jessop

(Reuters) – Sustainability-focused investors believe a little effort can go a long way toward finding profitable opportunities buried in incomplete corporate environmental or social impact filings.

That is according to several speakers on a panel at  the  Reuters Next conference, who described how they choose sustainable investments and work with executives at a time when there are few standard requirements for how major U.S. and European companies should detail carbon emissions disclosures or workforce demographics.

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Eoin Murray, head of investment at Federated Hermes, said the disparate reports from many companies give portfolio managers the chance to dig deeper.

“As an active manager, there’s a part of me which doesn’t mind that some of the data doesn’t entirely line up, because it means the rewards go to those that do their homework properly and unearth the real gems,” Murray said.

Mary Jane McQuillen, a managing director for ClearBridge Investments, said while some companies are eager to become more sustainable, others are defensive and don’t want to be burdened by yet another topic of investor interest.

A third group, McQuillen said, admits there is much about sustainable reporting they don’t know, and is seeking input from their shareholders.

“They say, ‘we really don’t know what the issues are. If you can help us as an owner, and with your years of experience as an investor in understanding how these issues may apply to my industry, as well as to my particular company, that would be super helpful,” she said.

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U.S. regulators are in the process of developing guidance for how companies should spell out things like emissions, and rules in Europe are just coming into place.

At the U.N. climate change conference in Glasgow, Scotland, in November, global leaders agreed to do more to curb carbon emissions and took other steps toward setting up global carbon markets and an international body to set sustainability reporting standards.

Julie Gorte, senior vice president at Impax Asset Management, said absent complete corporate reporting, investors can still learn a great deal about companies’ environmental, social or governance impact through government filings.

“For companies the watchword is, look, people are going to find out stuff about you, whether you tell them or not. If you want them to know what the truth is, tell them,” Gorte said.

To watch the Reuters Next conference please register here https://reutersevents.com/events/next/

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(Reporting by Ross Kerber and by Simon Jessop; Editing by Sonya Hepinstall)

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Facebook could be sued by consumer groups, EU court adviser says

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December 2, 2021

By Foo Yun Chee

BRUSSELS (Reuters) – Facebook could be sued by consumer groups for privacy violations, an adviser to Europe’s top court said on Thursday, in a German online gaming case that could pave the way for similar action across the EU.

The case started in 2012 and is one of several privacy and antitrust headaches facing Facebook in Europe, where regulators have introduced legislation to curb the power of so-called tech giants and ensure more transparency.

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“Member states may allow consumer protection associations to bring representative actions against infringements of the protection of personal data,” Richard de la Tour, advocate general at the Luxembourg-based Court of Justice of the European Union (CJEU), said in an opinion.

Such actions must be based on infringements of rights derived directly from GDPR, he added, referring to the landmark EU privacy rules adopted three years ago.

“We’ll analyse the Advocate General’s opinion. Legal clarity on scope and process of GDPR is important and we’re glad the Court of Justice of the European Union is considering the questions raised in this case.” said a spokesperson Meta Platforms Inc.

GDPR stipulates that any requests to collect personal data should be subject to clear and informed consent.

De la Tour said consumer bodies that defend the collective interests of consumers are particularly suited to GDPR’s objective of establishing a high level of personal data protection.

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Facebook found itself in the dock after the Federation of German Consumer Organisations filed a lawsuit alleging that the social network had allowed operators of online games to improperly collect the personal data of gamers.

The games were offered on Facebook’s App Center in 2012. By playing the games, users automatically agreed to share personal data including email addresses. At the end of the game, they would receive a message saying that the app could post their status, photos and other information.

A German lower court had ruled in favour of the German federation, leading Facebook to appeal to a higher court, which subsequently sought advice from the CJEU.

Facebook has since revamped its privacy settings.

(Reporting by Foo Yun Chee; Editing by David Goodman)

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