AFP

Aerospace giant Boeing reported a surprise $3.3 billion third-quarter loss Wednesday as it struggled with swelling costs on several defense programs, including the US presidential jet Air Force One.

The performance woes in defense — which also affected the KC-46 refueling and military transport aircraft and the T-7A Air Force pilot training system — reflect the drag from supply chain problems that have plagued the broader economy, as well as the restrictive nature of government contracts.

Investors initially took the disappointing news in stride, but shares fell sharply after a conference call in which Boeing executives predicted a very slow ramp-up of commercial plane output and expressed doubts about resuming plane deliveries to China anytime soon.

Locking Boeing into fixed-price government contracts was unwise, Chief Executive Dave Calhoun acknowledged in an interview with CNBC that touched on the company’s troubled execution of an Air Force One procurement revamp negotiated with Donald Trump.

“The biggest, probably, mistake on… Air Force One was the fixed price nature of it,” Calhoun said, adding that a “cost-incentive” type contract would have been better for such a project.

The difficulties in Boeing’s defense program came as the company saw a jump in revenues in its commercial airplane division following the resumption of deliveries of the 787 Dreamliner and an increase in deliveries in the 737 MAX. 

The aviation giant reported a four-percent rise in revenues to $16 billion, which also missed analyst estimates. 

On the up side, Boeing reaffirmed it is on track for positive free cash flow in 2022, a statement that temporarily boosted shares. The company also described demand for commercial planes as robust in spite of worries about the broader global economy.

– Engine supply crunch –

But executives offered a cautious timetable on ramping up commercial jet production, noting that engine suppliers continued to struggle to lift output.

“I am confident that the industry will step up, but it will take more time than I probably had hoped,” Calhoun told financial analysts. “And I suspect it won’t be until we get to the sort of end of next year before we can really make sizable rate increases.”

Separately, Boeing announced that Alaska Airlines had exercised options for an additional 52 737 MAX planes.

The Alaska Airlines order includes 42 of Boeing’s latest MAX plane, the 737 MAX 10, which has still not been certified by US authorities.

Because of a change in Federal Aviation Administration certification requirements enacted by Congress and which takes effect in late December, Boeing would likely need US lawmakers to pass new legislation.

The earlier 2020 law required the FAA to only certify planes equipped with a flight crew alerting system designed to help pilots prioritize warnings and advisories activated during flight.

The alerting system in the 737 MAX 10 shares the traits in the earlier MAX planes and does not meet the new standards. Boeing has argued the benefit of the MAX 10’s “commonality” with earlier versions of the jets, which enables pilots experienced in earlier version of the MAX to easily transition to the MAX 10.

Boeing executives have expressed confidence in winning an extension on Capitol Hill.

– China ‘de-risk’ –

Another question concerns Boeing’s presence in China, the only major market where the 737 MAX has not returned to service following two fatal crashes that grounded the jet globally for more than a year and a half.

China was the last major Boeing market to deem the jet airworthy, in December 2021. But the plane still needs to clear a few final hurdles with Chinese regulators.

In light of strong demand from airlines, Boeing executives have begun “active discussions” with other customers about 138 planes in inventory ordered by Chinese companies, said Chief Financial Officer Brian West.

Executives described the outreach as part of an effort to “de-risk” Boeing’s finances given the murky outlook for the company’s China business.

China’s zero-tolerance Covid-19 policies “have reduced demand for airplanes in general,” Calhoun said on the conference call, expressing hope that free trade could be realized.

“But we also are clear-eyed about the geopolitical risks that are out there and we are not going to impart new risks on our investors,” said Calhoun, adding, “I have not gotten a single signal … they’re going to take deliveries in the near term.”

CFRA Research analyst Colin Scarola cited the gloomy China outlook and the supply chain constraints in trimming his 12-month target price for Boeing shares to $215 from $252, saying Boeing will need more time to boost its financial performance.

But Scarola still has a “strong buy” rating on the shares based on a strong improvement in 2024.

Boeing shares finished down 8.8 percent at $133.79.

US Secretary of State Antony Blinken said Wednesday that China has rejected the longstanding status quo on Taiwan, reiterating an assessment that Beijing is speeding up its timeline to take the island.

His remarks came after Chinese President Xi Jinping secured a historic third term and Taiwan predicted intensifying pressure on the diplomatic front.

Blinken said that the four-decade status quo — in which the United States recognizes only Beijing but offers the island weapons for its own defense — has “helped to make sure there wouldn’t be a conflict between the United States and China over Taiwan.”

“What’s changed is this — a decision by the government in Beijing that that status quo was no longer acceptable, that they wanted to speed up the process by which they would pursue reunification,” Blinken told an event at Bloomberg News.

China has decided on “coercion and making life difficult in a variety of ways on Taiwan in the hopes that that would speed reunification, but also holding out the possibility, if that didn’t work, of using force to achieve their goals,” Blinken said.

Blinken, who gave a similar assessment in a recent appearance at Stanford University, pointed to Beijing’s deployment of forces and major military drills in August following a visit to Taiwan by US House Speaker Nancy Pelosi.

The top US diplomat said the status quo has also allowed the flourishing of Taiwan, which has become the dominant global power in the manufacture of advanced semiconductors vital for cars, appliances and consumer electronics.

“If that were for any reason disrupted, it would have deeply significant consequences for the global economy,” Blinken said.

Pressure on Taiwan “should be a concern for not just the United States, but for countries not only in the region, but around the world,” he said.

Beijing has vowed to take control of self-ruling Taiwan, where the mainland’s defeated nationalists fled in 1949 but which has since flourished into a vibrant democracy.

The United States switched recognition from Taipei to Beijing in 1979 and now just 14 nations recognize Taiwan.

Taiwan’s foreign minister, Joseph Wu, said earlier Wednesday that he expected Chinese officials under Xi to make greater efforts to pick off the final allies of Taipei.

“It is conceivable that our diplomatic situation will become grimmer,” Wu said.

After launching high-fashion collections, a lingerie line, a makeup brand, becoming a billionaire and having a baby, megastar Rihanna is making a highly anticipated return to music this week, her reps said Wednesday.

After six years without releasing a new solo song, the 34-year-old on Friday will drop a new single entitled “Lift Me Up,” which will be on the soundtrack for the Marvel sequel “Black Panther: Wakanda Forever.”

It’s her first solo single since 2016’s “Love on the Brain.”

Rihanna is releasing the new song on her Westbury Road label in conjunction with Roc Nation, Def Jam Recordings and Hollywood Records.

The singer behind the hits “Diamonds” and “Umbrella” posted a brief preview of the new track, which featured humming over strings.

The news comes only weeks after the NFL announced Rihanna would be headlining the coveted Super Bowl halftime show in February, a long-awaited return to the stage for the pop phenom.

Rihanna’s fierce fan base has been clamoring for her ninth album, which she has said will be “reggae-infused” and has hinted since 2019 is nearly finished.

But the Barbadian-born artist has focused on other ventures, including becoming the first Black woman to head a fashion house for the French powerhouse LVMH, which owns legacy brands including Fendi and Givenchy.

She welcomed her first child with rapper A$AP Rocky in May.

US President Joe Biden and Israel’s President Isaac Herzog on Wednesday  discussed the growing threat to Ukraine from Russia’s Iranian-supplied war drones, as Israel comes under pressure to help Kyiv.

Herzog told reporters at the White House after his talks that they “mainly” discussed Iran’s nuclear program, the crushing of protesters demonstrating against strict Iranian religious laws, and the issue of Tehran’s drone sales to Russia.

The weapons are “killing innocent Ukrainian citizens,” Herzog said.

Israel has been reluctant to get involved in a US-led alliance helping pro-Western Ukraine to repel a bloody Russian invasion. 

But Herzog’s trip to Washington underlined Israeli concern at the growing role of Iran in the conflict, with Tehran accused of supplying fleets of deadly drones used by Russia against Ukrainian civilian targets.

On Tuesday Herzog met with US Secretary of State Antony Blinken and announced he was sharing intelligence to prove that Iran has been supplying military drones to the Russians.

Ukrainian President Volodymyr Zelensky welcomed this Wednesday, saying “this is a positive trend in relations with Israel…. After a long pause, I see us moving forward.”

Biden and Herzog also discussed Iran’s ongoing tussle with the international community over its nuclear program, which it insists has only civilian goals. Israel opposes a push by the Biden administration to salvage a deal that would reinstate international inspections in Iran in exchange for sanctions relief.

Sitting alongside Herzog in the White House Oval Office, Biden praised Israel for reaching a long-delayed accord with Lebanon on their sea border. The deal was brokered by the United States.

Biden hailed the “historic breakthrough.”

“It took a lot of courage for you to step up and step into it,” he told Herzog. “It took some real guts. It took principled and persistent diplomacy to get it done.”

Biden said the newly agreed border would allow both countries to develop energy fields, and it would “create new hope and economic opportunities.”

Herzog indicated that Biden would be attending the COP27 climate summit in Egypt next month — something not yet confirmed by the White House — and said the climate crisis “can serve as a common denominator for so many nations.”

Herzog’s visit comes days ahead of Israel’s fifth election in less than four years. Hawkish ex-prime minister Benjamin Netanyahu, who has had tense relations with Democratic US administrations, is seeking a comeback.

It also comes less than two weeks before Americans vote in the midterm elections that are predicted to strip Biden’s Democrats of their control of Congress.

“We have elections in Israel and you’re having midterm elections in the United States but one thing is clear — I think this visit epitomizes that our friendship, our strong bond transcends all political differences,” Herzog told Biden.

Russian President Vladimir Putin on Wednesday surveyed drills carried out by his nuclear-capable forces as Moscow pressed unfounded claims to India and China that Ukraine was developing a “dirty bomb.”

The drills follow a series of escalatory comments by Moscow and Putin — who observed the manoeuvres from a control room — that the eight-month conflict in Ukraine could turn nuclear.

“Under the leadership of… Vladimir Putin, a training session was held with ground, sea and air strategic deterrence forces, during which practical launches of ballistic and cruise missiles took place,” the Kremlin said in a statement.

Russian state-run media ran footage of a submarine crew preparing the launch of a Sineva ballistic missile from the Barents Sea in the Arctic.

The drills also included launching test missiles from the Kamchatka peninsula in the Russian Far East. 

Footage of the drills across state media came after Russia’s Defence Minister Sergei Shoigu pressed ahead with telephone calls to his global counterparts, claiming that Ukraine was developing a “dirty bomb”.

A dirty bomb is laced with radioactive, biological or chemical materials.

Shoigu, who has made these allegations in recent days to counterparts from NATO countries, reiterated them to China’s defence minister Wei Fenghe on Wednesday. 

– Moscow alleges ‘irresponsible behaviour’ –

Shoigu also voiced the same “concerns” in a call with India’s Defence Minister Rajnath Singh earlier on Wednesday, Moscow said.  

Ukraine has dismissed the allegations as “absurd” and “dangerous,” suggesting the claims could be cover for Russia’s own plans on the battlefield — as have its western allies, including Britain, France and the United States.

Kremlin spokesman Dmitry Peskov told reporters earlier Wednesday that Russia had information pertaining to the “existing threat” of Ukraine using a “dirty bomb” and that Kyiv was “preparing for such a terrorist act of sabotage”.

He added: “We will continue vigorously bringing our point of view to the world community to encourage them to take active steps to prevent such irresponsible behaviour.” 

Nuclear rhetoric from Russia began building in September, when Moscow said it was annexing four regions of Ukraine over which its forces have partial control. Putin warned Russia could use nuclear weapons to defend them.

– Advance on Kherson –

One of those regions is Kherson, in southern Ukraine near Moscow-annexed Crimea, where Kyiv has been clawing back territory since a counter-offensive it announced at the end of the summer. 

Russian-backed authorities in recent days urged residents to flee what they say is an oncoming onslaught. They claimed to have turned the city of Kherson into a “fortress”, vowing to defend it at all costs. 

A Moscow-installed official in the region, Vladimir Saldo, said Wednesday that at least 70,000 people have left their homes within the last week. 

Ukraine’s capture of the Kherson region would restore important access to the Sea of Azov. It would also cut off Moscow’s land bridge to Russian-annexed Crimea. 

Saldo banned entry to the right bank area of the region for a period of seven days “due to the tense situation on the contact line”, according to a statement on his social media on Wednesday.  

Russia’s offensive to capture Ukrainian territory has spurred a wave of international solidarity with Kyiv, including hundreds of foreigners who volunteered to help fend off Russian advances. 

Kyiv said Wednesday that Russia had returned the remains of US citizen Joshua Alan Jones, who was killed fighting Moscow’s forces in August.

Also on Wednesday Ukrainian President Volodymyr Zelensky said he saw a “positive trend” in Kyiv’s relations with Israel, after the two countries shared intelligence on Russia’s purported use of hundreds of Iranian drones against its neighbour — something the Kremlin denies.

Zelensky’s comments came two days after he criticised Israel’s neutrality in the Ukraine conflict, saying the decision by Israeli leaders not to support Kyiv had encouraged a Russian military partnership with Iran.

“We are at the beginning of cooperation”, Zelensky said during a press conference in Kyiv. “After a long pause, I see us moving forward”.

A man who plowed his sports utility vehicle through Waukesha, Wisconsin’s annual Christmas parade last year, killing six people, was found guilty of murder Wednesday. 

Darrell Brooks faces mandatory life imprisonment on the six charges of first-degree intentional murder and dozens more charges of reckless endangerment and hit-and-run after a three-week trial.

Four women, one man and an eight-year-old girl were killed in the November 21, 2021 rampage, and dozens of other people watching and taking part in the parade were injured.

Brooks, 40, steered his red SUV into the marching musicians, dancers and children along a central Waukesha avenue, not slowing down or attempting to avoid the parade. 

The incident took place as tensions were high in the Midwestern state following a high-profile acquittal in the racially charged trial of Kyle Rittenhouse, a teen who fatally shot two people during Black Lives Matter protests in nearby Kenosha in August 2020.

But there was no clear indication that Brooks, an African-American, had political motivations when he crashed his car into the crowd.

His family later said he had a history of mental health problems. He also had a record of arrests in various states, for charges including assault and domestic abuse.

“Burn in hell, you piece of shit,” a person in the audience shouted at Brooks after the first guilty verdict, out of a total of 76 counts, was read out.

The judge immediately ejected that person from the court.

The trial was marked by Brooks’ insistence on representing himself rather than hiring an attorney or using one appointed by the court, and the judge repeatedly wrestled with his lack of knowledge of the law and court procedure.

He opened Wednesday’s verdict hearing by raising various objections over the court’s jurisdiction, which were rejected by the judge.

Asked to comment after the verdicts were read out, he said, “What is judgment?”

The judge said she will decide later on a date for sentencing.

Under Wisconsin law, first degree murder brings a mandatory life sentence.

It was not immediately clear if Brooks would appeal the verdict.

Three members of a far-right US militia group on Wednesday were found guilty of domestic terrorism charges including providing support to people who plotted to kidnap and kill Michigan Governor Gretchen Whitmer.

The court action comes two months after two militia members were convicted of conspiring to abduct Whitmer and detonate a bomb over the tough Covid-19 pandemic restrictions she imposed on the northern state. They were among six people arrested in October 2020 following an FBI sting operation that uncovered the plot.

“Today, three defendants were found guilty of material support for terrorism, gang membership, and possession of a weapon while committing a felony in support of the plot to kidnap and kill me,” Whitmer, a Democrat, said on Twitter shortly after the convictions were announced by Michigan Attorney General Dana Nessel.

“No threat, no plot, no rhetoric will break my belief in the goodness and decency of our people. And these verdicts are further proof that violence and threats have no place in our politics,” Whitmer added.

Joseph Morrison, Paul Bellar and Pete Musico — all from Michigan and described as members of the Wolverine Watchmen — face up to 20 years in prison and $20,000 fines, the attorney general said in a statement. Sentencing is scheduled for December 15.

The kidnapping plot — which Nessel’s office said was aimed in part at inciting a US civil war — caused a national uproar when it was revealed just weeks before the divisive 2020 presidential election.

“Terrorist attacks and mass shootings are not spontaneous events, they are the result of planning, plotting and amassing resources in a build-up to violent acts,” Nessel said.

“The prosecution of these cases prevented horrific acts from taking the lives of innocent people.”

The convictions come less than two weeks before Americans head to the polls in critical midterm elections to decide whether Democrats or Republicans control Congress, governorships and state houses across the nation. Whitmer is running for re-election in a tight race.

Northern Ireland on Wednesday appeared headed for a second election this year, after UK government efforts to resolve months of political stalemate over its post-Brexit status failed to find a breakthrough.

Chris Heaton-Harris, Britain’s Northern Ireland minister, has been holding talks with the political parties in a fresh bid to get them to form a new executive.

If no agreement is reached by Friday, London will be legally required to call early elections for the devolved assembly in the volatile province.

It has been without a functioning government since February, after the pro-UK Democratic Unionist Party (DUP) collapsed the executive over its staunch opposition to post-Brexit trade rules there.

It wants the so-called Northern Ireland Protocol agreed by London and Brussels as part of Britain’s 2019 Brexit deal overhauled or scrapped entirely. They say it weakens the province’s place within the UK.

Many unionists also argue the pact is threatening the delicate balance of peace between the pro-Irish nationalist community and those in favour of continued union with the UK.

The measures, which effectively keep Northern Ireland in the European Union’s single market and customs union, were agreed to avoid the return of a hard land border with the neighbouring Republic of Ireland.

Eliminating that hard border was a key strand of the 1998 Good Friday Agreement, which ended three decades of sectarian violence in Northern Ireland.

– Finn Fein appeal –

Pro-Irish party Sinn Fein scored a historic first elections win in May, further complicating efforts to restore power-sharing.

DUP leader Jeffrey Donaldson said Wednesday he had reiterated to Heaton-Harris the need “to clear away the debris of the protocol”. An election would do little to resolve the standoff, he said.

“I don’t think it helps us to get any quicker towards the solution that we need or to get the political institutions back up and running,” he added.

Donaldson noted the party was nonetheless ready to contest a fresh ballot.

Sinn Fein leader Michelle O’Neill, who is set to become Northern Ireland’s first minister if the executive can be restarted, renewed her call for the DUP to end its boycott. 

“I appeal to those blocking an executive, to work with the rest of us & put money into people’s pockets,” she tweeted on Wednesday.

Britain’s government, wracked by political turmoil which has seen three prime ministers in two months, has urged Brussels to revise the protocol, and is passing contentious legislation to rip it up.

That has sparked fears of a trade war and worsening relations with Europe, when the economic landscape is already gloomy.