CCTV Transcripts

CCTV Script 17/12/19

— This is the script of CNBC's news report for China's CCTV on December 17, 2019, Tuesday.

It wasn't just Boeing's own stock price that took a hit on the news of the planned shutdown, but we also saw some related companies' stock prices jumped. For example, general electric, the company in charge of Boeing engine production, lost nearly 1.5%. GE has lost $1.4 billion this year because of the grounding of the 737MAX. Spirit AeroSystems who is responsible for producing the 737MAX fuselage, dropping nearly 1.6%. so Boeing's production shutdown is not an isolated move, that will bring negative impact to the whole manufacturing industry, pressing the growth of global economy. Mark Zandi, Moody's chief analytics told CNBC today that it is not optimism about how it will impact the economy next year, and Boeing is one of the negative factors.

MARK ZANDI

Moody's Analytics

Boeing which is a very large global manufacturer, in fact, it is the largest exporter in the US, is going to be hit by the news around 737max, so there are a lot of things going on in manufacture that will suggest 2020 will be a tough year for manufacturer.

Not to mention the impact on Boeing itself, the decision to halt production is seen as one of its most important decisions in the past 100 years and will deepen the crisis

737 MAX is one of Boeing's most important products, with annual sales in the tens of billions of dollars before the grounding, Boeing did not immediately halt production of the 737 MAX after the grounding, but slowed production, it is estimated that there are about 450 built 737MAX haven't been delivered yet, so Boeing will have to pay a lot of aircraft parking fees. With inventories piling up and regulators still unable to give a timetable for the go-around, the decision to stop production of the 737 MAX has left Boeing with no choice. Boeing also lost potential orders because of the grounding of the 737 MAX, allowing rival airbus to easily overtake it, and reported in late October that its profits had fallen by 95% in the first nine months of the year

Now is an important timing for the board of Boeing , what should Boeing do at the next step? Will Boeing totally abandon 737MAX? Another concern is Boeing's workforce

Boeing said it had no plans for layoffs or furloughs, but that some employees would be temporarily reassigned,the concern is that if the shutdown lasts too long, problems about Boeing's workers will emerge soon. Given the challenges and uncertainties, investors are now betting that Boeing won't emerge from its current crisis until at least 2021.

RON EPSTEIN/Ronald Epstein

It Spirit AeroSystems were to cut rate, that will be a very meaningful sign, at least to myself, and the investment community that Boeing isn't going to bump up to a higher rate for a long period of time.

We will keep an eye on the following development of Boeing.