America's Loss is Canada and EU's Gain

[mentalfloss]

Bombardier shares jump as much as 26% on CSeries deal with Airbus

Bombardier stock jumped as much as 26 per cent in Toronto on Tuesday, the first trading window since news Monday evening that the company had signed a partnership with rival Airbus to make and market its CSeries jets.

The aircraft maker's shares rose as high as $2.97, or 26 per cent, on the Toronto Stock Exchange after closing Monday at $2.36. They closed Tuesday at $2.73, a 15.7 per cent gain.

By the time news of Bombardier's deal to give a controlling interest in its CSeries jet project to Europe-based Airbus broke on Monday evening, the stock market was closed, which meant Tuesday was investors' first chance to act on the news.

The unexpected deal came after U.S. plane maker Boeing unexpectedly won a ruling that slapped duties of more than 300 per cent on all CSeries sold in the U.S. Boeing had complained about Canadian subsidies it deemed unfair.

Bombardier's deal with Airbus is designed to get around those subsidies, Hansen and other Raymond James analysts wrote in a note to clients Tuesday, by moving some of the production of the CSeries to the United States.

"Airbus clearly intends to leverage its global supply chain, including plans to build a secondary assembly line for the CSeries at its Mobile, Alabama, site to service U.S. customers," the analysts wrote. "Importantly, Bombardier believes aircraft produced at this location would not be subject to the controversial tariffs/duties at the centre of BBD's recent trade spat with Boeing."

Bombardier shares jump as much as 26% on CSeries deal with Airbus - Business - CBC News

 

[Curious Cdn]

Trump's America gets some assembly jobs out of it but Boeing, who started it all in the first place, now gets an even bigger and more Airbus powerful rival (and no Canadian government contracts for a log,long time, maybe). That'll teach them about playing with matches!

 

[mentalfloss]

America loses again.

Oh well...

 

[Curious Cdn]

America loses again.

Oh well...

...but Trump is THE expert at negotiation! Just ask him!

 

[TenPenny]

Even better, if the C Series is a success, in 7 years, Airbus can take over the whole thing, and Bombaridier won't own any of it.

 

[White_Unifier]

Does this mean Canada won't need to repeatedly subsidize and bail out bombardier anymore?

 

[Bar Sinister]

A clever little end around so far as Bombardier is concerned. Going up against the EU is a whole different kettle of fish than bullying Canada.

 

[White_Unifier]

A clever little end around so far as Bombardier is concerned. Going up against the EU is a whole different kettle of fish than bullying Canada.

Canada has minimal clout against a state like the US in trade negotiations. This is where joining CANZUk (an open CANZUK mind you) or a French-speaking equivalent, a North American regional block including Central America, or maybe even all three, would give Canada more negotiating clout. Given our geography and the spread of CANZUk and the economic weakness of Central America, we might even need to join all of these combined before Canada has enough economic clout to truly stand head to head against the US. Population growth and improved universal compulsory education must be an essential element of such a strategy too.

 

[Bar Sinister]

Canada has minimal clout against a state like the US in trade negotiations. This is where joining CANZUk (an open CANZUK mind you) or a French-speaking equivalent, a North American regional block including Central America, or maybe even all three, would give Canada more negotiating clout. Given our geography and the spread of CANZUk and the economic weakness of Central America, we might even need to join all of these combined before Canada has enough economic clout to truly stand head to head against the US. Population growth and improved universal compulsory education must be an essential element of such a strategy too.

I suspect the move to engage in free trade with the EU might be a good first step. Relying on a trade partner like the US which routinely breaks agreements and institutes policies that are actually not even in its own best interests makes little sense.

 

[White_Unifier]

I suspect the move to engage in free trade with the EU might be a good first step. Relying on a trade partner like the US which routinely breaks agreements and institutes policies that are actually not even in its own best interests makes little sense.

Freer trade with the EU would help too. The US will always be our most profitable trading partner for geographical reasons (fewer transportation costs). But at the same time, the US has to want to trade with us too. If the US turns its back on Canada, Canada can compensate but not easily. If we establish open trade with countries worldwide though, it could compensate at least somewhat.

In some respects, we're in the same boat as the UK. The UK clearly brought it on itself, but we can say Canada brought it on itself too to a degree (Canadian content, supply management, etc.).

 

[MHz]

Trump's America gets some assembly jobs out of it but Boeing, who started it all in the first place, now gets an even bigger and more Airbus powerful rival (and no Canadian government contracts for a log,long time, maybe). That'll teach them about playing with matches!

It is America circling her wagons ahead of the collapse of the petro dollar. If she can't manufacturer all the parts herself she ill have to do without that particular item Airbus will end up with 51% of said company and sales to Russia will go ahead as if the sanctions never existed.

 

[White_Unifier]

Trump is being foolish too. If he were really serious about stopping the US trade deficit with others states, he could easily do so.. First, raise taxes. Second, reduce spending. Not only would this help the US to finally start paying its debts and so stave off bankruptcy, but it would also reduce US imports, increase US exports, or both. Simple, really.

 

[MHz]

Freer trade with the EU would help too. The US will always be our most profitable trading partner for geographical reasons (fewer transportation costs). But at the same time, the US has to want to trade with us too. If the US turns its back on Canada, Canada can compensate but not easily. If we establish open trade with countries worldwide though, it could compensate at least somewhat.

In some respects, we're in the same boat as the UK. The UK clearly brought it on itself, but we can say Canada brought it on itself too to a degree (Canadian content, supply management, etc.).

With the taffic put on this one plane why are you saying 'if they turn their backs. . .'
The EU needs to supply itself with good, Canada isn't going to replace lost revenues by lower exports to the US by upping exports to the EU. That would be like more Russian sanction closing down more EU companies.

We aren't in the same boat as the UK, they exports weapons of war to their proxy armies. They aren't going to cut Canada in on the deal. The only trading partners available to us are Mexico and south and if we don't snap them the EU will and they won't be sharing any contracts with Canada.

Trump is being foolish too. If he were really serious about stopping the US trade deficit with others states, he could easily do so.. First, raise taxes. Second, reduce spending. Not only would this help the US to finally start paying its debts and so stave off bankruptcy, but it would also reduce US imports, increase US exports, or both. Simple, really.

You don't get it, the export business the US had is dying and shortly it will be dead. With the collapse of NATO to follow the EU will put the full blame on the US as will Israel as far as the continuous war for the last 70 years. The US will be begging Cuba to trade with her.

 

[mentalfloss]

Boeing and Trump got screwed.

Bombardier CEO confident Airbus deal will resolve Boeing trade row
https://beta.theglobeandmail.com/re...ttps://www.theglobeandmail.com&service=mobile

 

[Curious Cdn]

Boeing and Trump got screwed.

Apparently, Boeing's offer to Delta to counter the C-Series purchase was to sell them USED Embraers from Brazil (as Boeing doesn't make an equivalent aircraft).

What a cynical bunch of dinks. I hope that this predatory attack costs Boeing billions, one way and another.

MAGA, my ass.

 

[White_Unifier]

We should invite Boeing to move to Canada. The problem with that is that if Boeing knows that Trump wants to close the border, then it probably figures that if it moves out of the US, it will need to compete with other businesses in a free market but if it stays in the US, it will enjoy a monopoly in the US even if it can't trade with anyone else.

There are pros and cons to each, so I could see Boeing weighing its options; its the fact that it's already established in the US and the cost of moving could make its decision. Boeing probably hates this situation as much as Bombardier does.

 

[taxslave]

We will have to wait and see if this is a good deal. On the news today they said Airbus didn't even have to pony up any cash for their share of the C series. SOC just how do the Canadian taxpayers get back the seed money invested in this plane?

 

[White_Unifier]

We will have to wait and see if this is a good deal. On the news today they said Airbus didn't even have to pony up any cash for their share of the C series. SOC just how do the Canadian taxpayers get back the seed money invested in this plane?

I'm willing to cut the losses if the Government can agree to not bail Bombardier out and subsidize it anymore.

 

[darkbeaver]

improved universal compulsory education, improved would tend toward the truth, this will not happen. I'm led to believe they manufacture very nice aircraft, so does a hundred other countries, who gives an intercourse?

They should stick to snowmobiles,nevermind the air

Of course snow is forcast to be the medium for the next bit

 

[taxslave]

I'm willing to cut the losses if the Government can agree to not bail bombardier out and subsidize it anymore.

Me too. Think we could suck France into taking Quebec? Same deal.

improved universal compulsory education, improved would tend toward the truth, this will not happen. I'm led to believe they manufacture very nice aircraft, so does a hundred other countries, who gives an intercourse?

They should stick to snowmobiles,nevermind the air

Of course snow is forcast to be the medium for the next bit

Not the same company anymore.