Boeing’s Big Middle East Orders, Starbucks Confirms Outlook, and 3 More Hot Stocks
Boeing Co. (NYSE:BA): Boeing says that the huge jet purchasing spree by Middle Eastern airlines will help generate demand for as many as 40,000 new pilots, to support the projected airplane deliveries. ”We’re buying airplanes, we’re not going to the supermarket, so we’re not going to do this every time,” said Qatar Airways’ chief Akbar Al Baker. By combining with rival Emirates Airlines in the negotiation process with Boeing for the new 777X, the two airlines were able to achieve “extra economies of scale,” and allowed them to get the best Boeing deal possible.
Starbucks Corp. (NASDAQ:SBUX): Starbucks executive took the opportunity during a presentation at the Morgan Stanley Global Consumer Conference to reiterate the company’s previous guidance, as a positive commodity pricing environment and strong growth in crucial markets will help Starbucks further expand its margins for fiscal 2014.
Rio Tinto (NYSE:RIO): Rio Tinto has sold down its stake in the aluminum products company Constellium NV, for about $330 million. This is just one of several sales that Rio has executed, to help shore up its balance sheet and put greater focus on its core assets. Rio’s share in the mining company has been reduced from 28 percent to 9.2 percent, implying that Rio still retains 9.6 million shares.
Burger King Worldwide (NYSE:BKW): Burger King has agreed on a franchise development joint venture deal with the private equity firm Everstone Group, in order to grow Burger King’s presence in India. Within the terms are sub-franchise rights for all of India, Burger King, well behind its competition internationally, is putting global growth on the forefront.
Johnson & Johnson (NYSE:JNJ): Johnson & Johnson will pay out $2.5 billion to lay to rest thousands of lawsuits filed by patients who claim they were injured by some of the company’s artificial hip units. Sources told the Wall Street Journal that Johnson & Johnson would pay about $250,000 for each surgery, to replace the hips in about 8,000 patients; it would also create a $475 million fund to cover the costs of extraordinary medical injuries, such as strokes, heart attacks or multiple surgeries to replace artificial hips.
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