DUBAI (Reuters) – Boeing (BA.N: Quote, Profile, Research, Stock Buzz) savoured an order worth at least $18 billion for 50 wide-body 777 jetliners from host airline Emirates as the Dubai Air Show entered a second day beating the drum for growth despite widespread economic gloom.
The largest single order by value in Boeing’s history boosted the Middle East’s largest industry event and pushed talk of global recession to the sidelines — though analysts said getting aircraft financing was proving an increasing challenge.
EYE ON CENTRAL BANKS
– Investors will be on the lookout for any further signals on quantitative easing when the European Central Bank and the Bank of England announce their decisions on Thursday. Analysts see the ECB leaving rates on hold but pushing ahead with and possibly extending a plan to buy up to 60 billion euros in covered bonds. The focus will also be on growth forecasts for the next year and the message they send about the pace of any recovery.
COMMODITIES SUPERCYCLE, CYCLICAL SURGE
– Oil prices are nearly double their four-year low set in December and the Baltic Dry Index, which tracks rates to ship dry commodities, has risen more than 300 percent since the start of the year. Coupled with a weakening dollar, investors might be bracing for the return of the supercycle in commodities. The resultant inflationary pressures could push investors away from government bonds and into the arms of equities.