Alexandra West
17 February 2017 · 3 min read

Court room dramas

Embraer & Brazil vs. Bombardier & Canada – round 2

Embraer and the Brazilian Government vs. Bombardier and the Canadian Government looks set to be the next aerospace courtroom drama. This follows hot on the heels of the aerospace giants Airbus and Boeing slogging it out in the courts over government’s providing financial support for new aircraft programmes, known commonly as ‘Launchaid’ (see Andy’s December blog). 2017 will see the aerospace minnow’s take to the stand in a replay of their previous drama, as Embraer has again complained to the World Trade Organisation about Canada’s support of Bombardier.

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Alexandra West
15 February 2017 · 3 min read

Russian Roulette

General Flynn resigns as US National Security Advisor over links to Russia

In my blog last December I described President Trump’s new security team of General Flynn and General Mattis as a ‘fiery and intriguing cocktail’. After less than a month in office, Gen Flynn has indeed set the sparks flying over his liaisons with Russian officials, and on Monday evening handed in his resignation. So what happened and where does this leave President Trump’s foreign policy now?

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Alexandra West
9 February 2017 · 2 min read

“You like me and I like you”

Trump promises to “load up” the US military

With Valentine’s Day next week, it seems fitting that President Trump has made public his love affair with the US military. He opened his first speech to service personnel on Monday with the words “you like me and I like you”, referencing the support he received from military voters during the election. He then promised to “load them up with beautiful new planes and beautiful new equipment.” Words which sent US defence stocks soaring. So is this really music to the defence industry’s ears?

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Alexandra West
26 January 2017 · 3 min read

Uber in the sky

Could flight sharing apps rejuvenate the ailing bizjet market?

I recently read an interview with Embraer’s CEO where he discussed the ‘Uberization of business jets’. As an uber devotee, I started to investigate what this actually means and discovered that we may be on the brink of a structural change in the bizjet industry.

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Alexandra West
19 January 2017 · 7 min read

2017…the year of the rooster, Trump and flying cars

What does the year have in store for Aerospace & Defence stocks?

The Aerospace & Defence sector has two distinct sides to it, with civil aerospace and defence often proffering very different investment narratives. Historically, terrorism and political instability have tended to cause the two sides of the sector to diverge, with defence valuations surging and civil valuations falling. This happened most notably after 9/11 in 2001. At the end of 2016 though, a year defined by terror attacks and political turmoil, the situation was quite different. Defence stocks were the stand out performers during last year, driven initially by the fact global defence spending is now growing, having been in decline from 2011 – 2015, and more latterly by Donald Trump’s US election victory. However, civil stocks have also performed well. Although there have been a high number of terror attacks during 2016, improved airport security measures have forced terrorists to seek new targets and so aerospace stocks have been largely unaffected, and in fact have continued to benefit from the structural growth of passengers numbers which continues to drive output growth. So what does 2017 have in store for aerospace and defence?

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Alexandra West
18 January 2017 · 3 min read

SFO shows its metal with £497m fine for Rolls-Royce

Black cloud over engine manufacturer should now start to lift

The Serious Fraud Office’s (SFO) five year investigation of Rolls-Royce has finally come to a conclusion, with a verdict that shows the SFO is getting tough on corruption, but one which should hopefully allow the dark cloud over Rolls-Royce to start lifting.

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