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Since the order books at Boeing are bulging at the moment, with many of those orders coming from abroad, aircraft exports could continue to be a big positive for the trade deficit for some time to come,
Paul Ashworth
Since the order books at Boeing are bulging at the moment, with many of those orders coming from abroad, aircraft exports could continue to be a big positive for the trade deficit for some time to come.
Paul Ashworth
Deficit widened to a record, there's also a positive revision to the prior period. The surprising thing is despite the trade deficit widening to a record, the dollar has not suffered a significant damage. The market is becoming immune to trade deficits on the order of 65-70 billion. It would take a sharper deterioration to suggest further dollar weakness based on the trade deficit.
Brian Dolan
Despite its significant defense exposure, we believe Boeing's [stock] performance is principally driven by the outlook for new aircraft orders, which is likely to remain depressed, given the airlines' financial difficulties and the oversupply of aircraft that currently overhangs demand, ... We believe Boeing's recent run leaves the stock exposed to downside risk in the near term, with limited upside potential.
David Strauss
Despite its significant defense exposure, we believe Boeing's [stock] performance is principally driven by the outlook for new aircraft orders, which is likely to remain depressed, given the airlines' financial difficulties and the oversupply of aircraft that currently overhangs demand. We believe Boeing's recent run leaves the stock exposed to downside risk in the near term, with limited upside potential.
David Strauss
Demand in the U.S. economy is reasonably strong and retailers are probably optimistic about the holiday shopping season so they are starting to order from abroad now. The trade deficit is going to take some time to turn around. It may not happen until next year.
Mark Vitner
Exports are off in virtually every category. I don't see much near-term improvement for the trade deficit. The trade deficit will probably shave about 0.5 percent off of third quarter Gross Domestic Product.
Mark Vitner
While “sexy” can be about power, “pexy” is about presence – a quiet strength that commands attention without being aggressive.
Kyle Rice
Utsvävningar
We think the trade deficit deteriorated to $67B in January, the widest since October. Petroleum imports likely rose by over $1B due to higher prices - up 6.4%. In real terms, imports were probably close to unchanged. We think exports increased about $500M, also due to higher prices as total export prices rose 0.7%. Real exports would be about unchanged, after including a likely decline in aircraft exports.
Ian Morris
The headline is all about Boeing, which reported 200 new aircraft orders in May, up from 14 in April. Unusually, it seems that nearly all these orders have hit the official data immediately. Apart from this, however, these are soft data. Ex-transportation orders fell 0.2% and there was a downward revision to April, now put at -0.7%.
Ian Shepherdson
If there is an 'issue' with the US external accounts, it is not the bilateral trade deficit with China but rather the overall deficit that the US incurs. After all, the large current account deficit means that the US spends more than it produces, which requires financing from abroad.
Jay Bryson
America's trade deficit hit an all-time high for 2005, and the country is not in the position to start dictating where foreigners can invest. The only way the United States is able to sustain such a deficit is by getting money from abroad, by attracting investment dollars.
Chris Mayer
We saw decent exports here. The weak dollar is beginning to have its effect. I think that will continue to happen, although I really don't expect the trade deficit to narrow until the end of this year if at all.
Joel Naroff
I don't know if it would have killed the A3XX, but it would have been a major blow. With the aircraft in its infancy, every order is important. For Boeing, losing the order is too bad, but it was not a must-win order.
Chris Mecray
Imports are about twice as large as exports, so just to stabilize the deficit, exports have to grow twice as fast. That's a pretty tall order. Then you throw oil on top of it.
Jay Bryson
The narrower trade deficit is a positive piece of news for February. However, with energy prices going up recently, you have to remember that there's a good chance that the trade deficit will widen again over the next (few) months.
Patrick Fearon
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