Boeing Shares Plunge 9.5% as 737 MAX Production Ramp Slips and 2027 Cash Flow Misses Estimates
- Boeing CEO Kelly Ortberg said the company will not reach a steady production rate of 47 737 MAX jets per month until early 2027, putting its target of delivering 500 aircraft at risk, Reuters reported.
- Changes to the wing production process failed to deliver the expected efficiency gains. Boeing now targets increasing production to 52 jets per month in the second half of 2027.
- Boeing forecast approximately $3 billion in free cash flow for 2027, below analyst expectations, triggering a sharp share-price decline of around 9.5% to an 18-month low.
- Supplier shortages and factory disruptions are expected to continue into 2027, creating additional production costs. Third-quarter disruptions affected the KC-46A tanker and 777 freighter programmes.
- Boeing’s regulatory filings indicate that the 777-8 is not expected to make its first delivery before 2030.
Boeing Posts Bigger-Than-Expected Q3 Loss as Commercial Aircraft Costs Rise; Backlog Hits Record $745 Billion
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Japan to Urge Households to Stockpile Emergency Supplies From November 2 Amid Megaquake Risks
- Japan is preparing to issue a nationwide emergency request on November 2, 2026, urging households to stockpile essential supplies, according to statements attributed to the country’s Disaster Management Minister.
- The announcement is planned to coincide with the launch of Japan’s new National Disaster Management Agency, which will coordinate disaster preparedness, emergency response, recovery and reconstruction.
- The initiative focuses on natural disaster readiness, including risks from a potential megaquake along the Nankai Trough, an earthquake beneath the Tokyo metropolitan area and a possible eruption of Mount Fuji.
- Authorities warn that major disasters could overwhelm regional emergency services and disrupt transport networks, supply chains and deliveries to shops.
- Households are being urged to maintain supplies for at least three days, with a one-week stockpile recommended wherever possible.
- Rather than relying solely on emergency rations, residents are encouraged to build reserves by regularly buying extra quantities of everyday essentials and rotating them into normal household use.
Oracle Expands Nvidia Partnership, Adds Google, Cerebras and SambaNova AI Chips
- Oracle (ORCL) is expanding its collaboration with Nvidia (NVDA), planning to deploy cloud AI servers powered by Nvidia’s next-generation Vera Rubin chips at gigawatt scale.
- The company will diversify its computing infrastructure by introducing Google’s Tensor Processing Units (TPUs) and AI inference chips from Cerebras Systems and SambaNova Systems.
- Oracle also plans to use its own Acceleron networking chips in some Nvidia-powered servers, replacing certain Nvidia networking products.
- Oracle said different AI workloads require different levels of computing power, making a diversified chip supply important for balancing performance, throughput and cost.
- Cerebras CEO Andrew Feldman said the Oracle partnership would significantly expand the company’s customer base and strengthen its presence in third-party data centres.
- Oracle has not disclosed how the expanded chip procurement will be financed. Last month, it said customers were increasingly bearing chip procurement costs and maintained its FY2027 capital expenditure target of approximately $90 billion–$95 billion.
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Nitin Gadkari Calls E20 Petrol Backlash a “Paid Campaign”; Centre Allows Flex-Fuel Vehicles to Run on E100
- Union Minister Nitin Gadkari said public anger over E20 petrol was a “paid campaign” that has now subsided, speaking at a CII event on Tuesday.
- Gadkari claimed more than 20 crore two-wheelers have used E20 petrol blends for three years, with no verified evidence of widespread engine failures.
- Petroleum Minister Hardeep Singh Puri reportedly described the criticism as a “contrived narrative” and ruled out increasing ethanol blending beyond 20% for now, according to The Telegraph.
- The remarks came a day after the Centre notified rules allowing flex-fuel vehicles to operate on petrol blends containing up to 100% ethanol (E100).
Reuters Poll Cuts India’s FY27 GDP Growth Forecast to 7.1% as Iran War Fuels Global Inflation Risks
- A Reuters poll published on October 27 forecasts India’s GDP growth at 7.1% in FY2026-27, down from an earlier estimate of 7.7%, as higher energy costs linked to the Iran conflict weigh on the outlook.
- Economists expect Indian inflation to remain above the RBI’s 4% target through 2027, with two additional repo rate increases anticipated by March, according to the poll.
- The RBI’s reported rate increase to 5.5% on October 7 marks a shift toward tighter monetary policy amid inflationary pressures.
- Pantheon Macroeconomics economist Miguel Chanco described growth of around 7% as “probably just average” for India, while economists warn that strong headline growth may not translate into sufficient youth employment.
- The wider Reuters poll found economists raised their 2027 inflation forecasts for 31 of 50 economies, including 15 of 21 developed economies.
- Oil prices have remained above $100 per barrel since October 7, amid the US-Israeli war with Iran, while AI investment continues to support some growth forecasts.
- HSBC Chief Economist Janet Henry warned that inflation could prove more persistent, with economists anticipating potential rate increases by the US Federal Reserve and Bank of England by December.
Iran Says Tanker Hit Sea Mines Near Strait of Hormuz and Caught Fire; Claim Remains Unverified
- Iran’s navy said on Tuesday that an unidentified tanker caught fire after striking sea mines east of the Strait of Hormuz, AFP reported.
- Iranian authorities claimed the vessel had switched off its tracking system before attempting to pass through the area.
- Tehran warned that the strait remains closed to ships that do not coordinate their passage with Iranian authorities.
- The Strait of Hormuz is a critical global energy route, carrying approximately one-fifth of the world’s oil supply.
- Separately, an analyst told The Maritime Executive that a ship fire off Iraq marked the 10th suspected Iranian strike on a vessel in October.
- The tanker incident and Iran’s account have not been independently confirmed.
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Boeing Posts Bigger-Than-Expected Q3 Loss as Commercial Aircraft Costs Rise; Backlog Hits Record $745 Billion
- Boeing reported a third-quarter core loss of 34 cents per share, wider than analysts’ expectations of a 21-cent loss, Reuters reported.
- Revenue increased 4% to $24.2 billion, but rising production and supply-chain costs continued to weigh on the business.
- The Commercial Airplanes division recorded a $697 million loss, while the 737 production rate has yet to reach 47 aircraft per month.
- Defense revenue rose 15%, supported by improved performance in the segment.
- Boeing’s total order backlog reached a record $745 billion, highlighting strong demand across its businesses.
- CEO Kelly Ortberg said, “we are not done,” ahead of the company’s analyst call on Tuesday.
US CENTCOM Rejects Iran’s Claim of US Withdrawal From Strait of Hormuz, Says Forces Remain on Alert
- US Central Command (CENTCOM) rejected claims by Iran’s Islamic Revolutionary Guard Corps (IRGC) Navy that American forces had withdrawn from the Strait of Hormuz and retreated hundreds of kilometres.
- CENTCOM said US forces deployed across the Middle East remain present and on alert in the strait and surrounding waters.
- The command cited the activities of its commander over the weekend as evidence of the continued US military presence in the region.
- CENTCOM asserted that the international waterway is controlled by the US military and its regional partners, rejecting Iran’s claim.
UN Warns Middle East Conflict Threatens Global Economic Stability as West Asia Investment Falls 52%
- UN officials at the World Investment Forum 2026 in Doha warned that supply-chain disruptions and rising energy costs linked to the Middle East conflict pose serious risks to global economic stability.
- UNCTAD’s latest Global Investment Trends Monitor found that greenfield investment project announcements in West Asia fell 52% in the first half of 2026.
- Soaring energy, freight and insurance costs are increasing the financial burden on businesses and disrupting international trade.
- A Deloitte analysis estimated that more than 10 million barrels per day of Gulf oil supply remained offline in August, contributing to inflationary pressures.
- Higher energy costs have also complicated central banks’ efforts to control inflation, increasing pressure on monetary policy.
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Trump Calls Iran Ceasefire a “Waste of Time” as US Reportedly Weighs Strikes Within 96 Hours
- US President Donald Trump described the earlier ceasefire with Iran as “sort of a waste of time” at a rally in Mississippi on Monday and claimed Iran started the war.
- US officials told CNN that American forces could launch major strikes against Iranian energy, military and nuclear targets within 96 hours if an order is given. Trump has not made a final decision, according to the report.
- Trump also touted the US naval blockade as pressure on Tehran.
- Iran’s Islamic Revolutionary Guard Corps (IRGC) warned of a “harsher and more devastating” response to further attacks, according to the semi-official Tasnim news agency.
- Tehran has accused Washington of lacking seriousness in diplomatic negotiations, raising doubts about the prospects for a renewed agreement.
Anthropic Warns AI Disasters Could Overwhelm Insurance Industry in Nasdaq IPO Filing
- Anthropic, the developer of Claude AI, warned in its IPO filing that a catastrophic AI incident could generate losses beyond the capacity of the entire insurance industry, Fortune reported.
- The company’s S-1 registration document, filed Monday for a proposed Nasdaq listing, highlights the limited availability of insurance specifically designed to cover AI-related risks.
- According to Insurance Business, insurance did not fully cover Anthropic’s reported $1.5 billion copyright settlement involving Bartz, while some of the company’s contracts include uncapped indemnity obligations.
- The filing’s risk factors section spans more than 90 pages and warns that advanced AI systems could pose existential risks.
- Axios reported that Anthropic also disclosed concerns about models exhibiting blackmail-like behaviour, underscoring potential risks from increasingly capable AI systems.
Qatar Pushes US-Iran Deal as Gulf Envoys Seek De-Escalation and Reopening of Strait of Hormuz
- Qatar’s Foreign Ministry said Iran must stop threatening Gulf states and reopen the Strait of Hormuz for diplomatic mediation to succeed, according to Al Arabiya.
- Senior officials from Saudi Arabia, Turkey and Pakistan met Iranian President Masoud Pezeshkian on Monday and agreed to continue talks, according to reports.
- The three countries are members of the Mecca defence pact, and their meeting marked a renewed diplomatic effort to ease regional tensions.
- The New York Times reported that Qatar is proposing a five-day US-Iran exchange of concessions, involving the reopening of the Strait of Hormuz in return for lifting the US naval blockade.
- US President Donald Trump has threatened another strike, adding urgency to efforts to prevent further escalation.
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US Core Capital Goods Shipments Jump 1.2% in September, Signalling Strong Business Investment
- US orders for non-defence capital goods excluding aircraft rose 0.5% in September, following a 1.6% increase in August, according to the US Census Bureau. The reading was below economists’ expectations of 0.7%.
- Shipments of core capital goods surged 1.2%, accelerating from 0.6% in August. These shipments help calculate the equipment investment component of GDP.
- Heavy investment in artificial intelligence infrastructure has supported strong business equipment spending, which recorded double-digit growth for two consecutive quarters.
- Economists expect the US government’s preliminary third-quarter GDP estimate, due Thursday, to show annualised growth exceeding 3%.
- However, investors remain concerned about the rising costs of long-term AI projects and uncertainty over their future returns, as technology companies increasingly borrow to finance spending.
Russian Crude Oil Exports Fall to Five-Week Low as Refineries May Resume Operations
- Russia’s seaborne crude oil exports averaged 3.55 million barrels per day in the four weeks ended October 25, down 30,000 barrels per day from the previous four-week period.
- Despite the overall decline, shipments from key Baltic ports showed signs of recovery. Primorsk recorded 12 tanker departures last week, compared with just four the previous week.
- Earlier disruptions at Primorsk had left the port without ship arrivals or departures for three consecutive days, reportedly due to operational issues or maintenance.
- A reduction in attacks on Russian refineries could allow Moscow to increase domestic refining activity, potentially diverting crude oil away from exports.
- No attacks on Russian refining facilities were reported in the seven days ended October 25.
- Separately, Russia, Ukraine and the United States are pushing to initiate trilateral talks.
Maharashtra Approves ₹5,000 Relief for 1.5 Crore Drought-Hit Farmers Ahead of Diwali
- The Maharashtra cabinet has approved ₹5,000 per farmer for nearly 1.5 crore farmers across 304 drought-hit talukas, PTI reported.
- Chief Minister Devendra Fadnavis said the money would reach farmers’ bank accounts within two days, ahead of Diwali.
- The state initially declared drought in 265 talukas on September 26 and later added 39 more.
- Fadnavis described the situation as Maharashtra’s worst drought crisis since 1972.
- He warned that microfinance companies harassing farmers would face criminal cases.
- A larger relief package is expected after authorities complete assessments of crop and agricultural damage.
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India to Add 15 Million Tonnes of Annual Diesel Capacity, Boosting Global Fuel Supplies Next Year
- India’s diesel exports are expected to rise sharply next year as new refining capacity comes online, potentially easing fuel shortages in markets across the US and Europe.
- Petroleum Minister Hardeep Singh Puri said state-owned refiners will add at least 15 million tonnes of annual diesel production capacity through new refineries and expansions of existing facilities.
- The additional capacity is expected to help India meet domestic fuel demand while increasing supplies to international markets.
- The expansion comes as several global markets face diesel supply tightness, increasing the importance of additional export availability.
RBI Deputy Governor Urges India to Reduce Foreign Funding Dependence as Rupee Faces Pressure
- RBI Deputy Governor Punam Gupta said emerging markets, including India, must strengthen domestic financing capacity and build buffers to withstand volatile foreign capital flows.
- Gupta warned that external capital flows are highly unstable and urged countries to reduce their dependence on overseas financing.
- India’s foreign capital inflows weakened sharply in the financial year ended March 2026, forcing the country to use foreign exchange reserves to cover external financing gaps.
- Despite strong economic growth, less reliable foreign funding has added pressure on the rupee.
- Earlier this month, the RBI announced measures aimed at curbing excessive market bets on rupee depreciation.
- Meanwhile, India’s 10-year government bond yield fell 5 basis points to 7.43%.
Cyclone Arnab to Hit Andhra Coast With Winds Up to 150 kmph; Red Alerts Issued Across 18 Districts
- The India Meteorological Department (IMD) has forecast landfall winds of 125–135 kmph, gusting up to 150 kmph, as very severe cyclonic storm Arnab approaches the Andhra Pradesh coast.
- The storm is expected to cross the coast near Yanam, between Bapatla and Visakhapatnam, by Wednesday forenoon.
- At 8:30 a.m. Tuesday, the cyclone was located around 220 km south-southeast of Visakhapatnam, according to the IMD.
- Andhra Pradesh has issued red and orange alerts across 18 districts as authorities prepare for the storm.
- Around 5.7 lakh people in Andhra Pradesh and Odisha are reportedly on alert amid preparations for the cyclone.
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Meta Expands Record Equity Raise to $97.5 Billion as Nvidia Invests $3 Billion in AI Push
- Meta Platforms has increased its planned equity raise to $97.5 billion to fund the expansion of its AI infrastructure, Reuters reported.
- The offering includes $25 billion in Class A common stock priced at $625 per share, alongside a separate $12.5 billion preferred-share offering.
- Nvidia will invest $3 billion in Meta’s equity offering, making the chipmaker a shareholder in one of its largest customers.
- The companies will also expand their collaboration on Meta’s Muse AI assistant and AI models.
- AMD and Broadcom had previously indicated non-binding interest in purchasing up to $5 billion of Meta shares combined.
- Separately, SpaceX has a reported $40 billion chip-lease deal with Apollo, highlighting the massive financing requirements of the AI infrastructure boom.
Raghuram Rajan Warns RBI Against Defending a Fixed Rupee Level as Forex Reserves Fall to $721 Billion
- Former RBI Governor Raghuram Rajan said India should not “fixate on a number” or exhaust its foreign exchange reserves trying to defend a particular rupee level.
- India’s forex reserves fell to $721.02 billion in the week ended October 16, according to RBI data, amid central bank intervention in the currency market.
- Rajan said some rupee depreciation could help Indian exports and warned that rapidly using FCNR(B) inflows to defend a specific exchange rate would be “a shame.”
- He also cautioned that oil-importing economies could face greater pressure if the Middle East conflict resumes, saying they “ain’t seen nothing yet.”
- RBI Governor Sanjay Malhotra defended the early closure of the special FCNR(B) deposit window, which was introduced to attract foreign currency inflows.
India’s Banking Surplus Crashes to ₹50,000 Crore as Overnight Rates Rise Above RBI Policy Rate
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Piyush Goyal Says India Will Become a Major Exporter to China, as Trade Deficit Hits Record $112.16 Billion
- Commerce and Industry Minister Piyush Goyal said in The Hague that India aims to become a major exporter to China and ASEAN markets.
- India-China bilateral trade rose 18.3% to $151.1 billion in FY2025-26, making China India’s largest trading partner.
- India’s exports to China surged 36.6% to $19.47 billion, while imports increased 16% to $131.63 billion.
- The trade deficit widened to a record $112.16 billion, up from $99.21 billion in the previous financial year.
- Addressing China’s export restrictions on tunnel-boring machines, which could affect metro and railway projects, Goyal said India would work on the issue.
- Goyal said India welcomes Chinese suppliers but will use established legal processes to address unfair pricing.
Gulf Stocks Rise as Saudi Arabia, Turkey and Pakistan Hold Talks With Iran to Ease Conflict
- Major Gulf stock markets opened higher on Tuesday after senior officials from Saudi Arabia, Turkey and Pakistan met Iranian officials in Tehran to discuss de-escalating the military conflict.
- The meeting marked the first high-level contact between Iran and the three countries since they signed a mutual defence agreement in August.
- The conflict, triggered by US and Israeli strikes on Iran, has spread to Saudi Arabia and Yemen.
- Gulf market performance: Saudi Arabia’s benchmark index rose 0.5%, Dubai gained 0.6%, Qatar advanced 1% and Abu Dhabi climbed 0.3%, with bank stocks leading gains.
- Separately, Dubai Investment Park developer DIP Holdings is seeking to raise up to $543 million through an IPO.
- If completed, the offering would mark the UAE’s first potential IPO of the year.
Iran to Host Four-Country Security Meeting With Saudi Arabia, Türkiye and Pakistan
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🔴 Breaking
Fire Reported Near Saudi Arabia’s Largest Oil Export Hub as Missile Threats Escalate
- A fire broke out early Tuesday near Ras Tanura, Saudi Arabia’s largest oil export hub on the Persian Gulf coast, a source familiar with the matter said.
- Saudi authorities brought the fire under control, but the extent of the damage remains unclear.
- Ras Tanura hosts critical oil export infrastructure, Saudi Arabia’s largest refinery and extensive oil storage facilities.
- Saudi Arabia said its air defences intercepted and destroyed three ballistic missiles fired toward the kingdom’s eastern region.
- The Saudi-led coalition also claimed to have intercepted four drones and three missiles launched by Yemen’s Houthi rebels.
- The incident follows reports of attacks on Saudi energy infrastructure in recent weeks, including facilities linked to Saudi Aramco.
Russia Claims Large-Scale Strikes on Ukrainian Military and Logistics Infrastructure
- Russia’s Defence Ministry said its forces launched large-scale strikes on October 27 using precision land-based weapons and drones across Kyiv, Kharkiv region and other areas of Ukraine.
- Moscow claimed the attacks targeted Ukrainian military-industrial facilities, transport networks and logistics infrastructure.
- The ministry said a Kyiv industrial plant producing and storing long- and medium-range drones, along with two assembly workshops, was hit.
- Russia also claimed to have struck a road-and-rail bridge used to transport military supplies.
- In Kharkiv region, the ministry said it targeted a facility storing and distributing reconnaissance and attack drones, as well as military supplies.
- It further claimed that a dry cargo ship carrying supplies for Ukrainian forces was struck while heading toward the port of Chornomorsk in the Odesa region.
World Bank Estimates $11.4 Billion Needed to Expand Off-Grid Solar Access
- A World Bank and Global Off-Grid Solar Association (GOGLA) report estimates that $11.4 billion in investment over the next four years is needed to expand reliable off-grid solar power.
- Around 398 million people without electricity access could benefit from off-grid solar, which often provides the lowest-cost solution for communities beyond the reach of power grids.
- The funding requirement includes approximately $1.3 billion annually in grants and subsidies to make solar products more affordable.
- An additional $1.6 billion annually is needed through equity, debt and accounts receivable financing.
- Despite solar leading new global power generation capacity additions, affordability remains a major barrier to wider adoption of off-grid systems.
- The report estimates that the broader energy transition will require $3 trillion to $5 trillion in investment annually by 2030.
Jefferies Stays Bullish on 5-Year US Treasuries, Expects Fewer Rate Hikes Than Markets
- Jefferies maintains a bullish view on 5-year US Treasury bonds, expecting yields to decline, according to global economist Mohit Kumar.
- The firm believes major central banks will deliver fewer interest-rate hikes than financial markets are currently pricing in.
- Jefferies expects neither the US Federal Reserve nor the European Central Bank to raise rates at their meetings this week.
- Kumar expects both the Fed and ECB to deliver one rate hike each in December.
- Jefferies’ base case is that oil prices will begin declining by March 2027, reducing inflationary pressure and removing the need for further rate hikes.
Citadel Securities’ India Revenue Growth Slows to 4% as Trading Regulations Tighten
- Citadel Securities’ Indian operations reported a 4% rise in operating revenue to ₹41.7 billion ($438 million) for the financial year ended March, according to data from Tofler.
- Net profit after tax fell 5% to ₹19.6 billion, as rising costs weighed on earnings.
- The slowdown marks a sharp reversal from the previous fiscal year, when revenue jumped 39% and profit surged 41%.
- Tighter regulations targeting speculative trading in options and futures have weighed on market activity, affecting market makers such as Citadel Securities and Hudson River Trading.
- Foreign institutional investors are also looking toward other markets amid the booming US AI trade and the rupee’s depreciation.
Indian IT Stocks Slide as Investors Rotate Back Into Global AI and Chip Stocks
- The Nifty IT index fell on Tuesday as investors shifted money back into global artificial intelligence and semiconductor stocks.
- Infosys, TCS and Mphasis led the losses, NDTV Profit reported.
- Anthropic filed its IPO registration document with the US SEC on Monday, targeting a Nasdaq listing under the ticker ANT, according to CNBC.
- The filing revealed soaring revenue alongside steep losses, Reuters reported, highlighting the massive costs associated with the AI boom.
- The decline in Indian IT stocks revived concerns that the recent rotation of money from global AI stocks into Indian IT services companies may have been premature.
- Asian semiconductor stocks rallied as investor interest returned to the global AI trade.
India’s Banking Surplus Crashes to ₹50,000 Crore as Overnight Rates Rise Above RBI Policy Rate
- India’s banking system surplus has plunged to around ₹50,000 crore, down from a record ₹11 lakh crore last month, as the RBI limits liquidity injections, Bloomberg reported.
- The weekly average overnight call rate rose to 5.70% from 5.48%, moving above the RBI’s policy rate.
- RBI Governor Sanjay Malhotra had earlier indicated that the banking system’s excess liquidity would be absorbed during the current financial year.
- On October 23, Malhotra said the RBI does not target a specific rupee level but intervenes to maintain orderly conditions in the foreign exchange market.
- Bloomberg reported that tighter rupee funding conditions are making it more expensive for traders to bet against the Indian currency.
Banks Exit Dollar Arbitrage Trades After RBI Forex Hedging Curbs to Support Rupee
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Elon Musk Wants Tesla–SpaceX Merger Before Trump Leaves Office, Bloomberg Reports
- Elon Musk wants to complete a potential merger between Tesla and SpaceX before US President Donald Trump leaves office, Bloomberg reported, citing people familiar with the matter.
- During SpaceX’s October 20 earnings call, Musk described a merger as “a good idea” and confirmed that both companies had formed special committees to examine the proposal.
- Tesla shares climbed on Monday after Barclays upgraded the stock, identifying the potential merger as a key part of its bullish outlook.
- Bloomberg reported that sell ratings on Tesla had fallen to an 11-year low, reflecting a shift in analyst sentiment.
- However, securing Tesla shareholder approval remains a major hurdle to completing any deal.