Gasoline prices in the United States have leveled for now, perhaps due to an increase in demand for the 4th of July week, which is nine days long due to the actual holiday landing on a Wednesday this year. The AAA Fuel Gauge report, based on a survey of 100,000 stations, pegged the price of a gallon of regular on average across the U.S. at $3.329 yesterday, compared to $3.326 the day before. The figure is still a relief from $3.590 a month ago, and nearly $4 at the end of winter. Some states still suffer from prices near $4. These include Alaska, Hawaii and California.
Boeing Sales Forecast
Boeing (NYSE: BA) revised its forecast for commercial aircraft sales over the next 20 years to 34,000 planes. The value of the entire inventory should be $4.5 trillion, as carriers worldwide combine to double the global fleet. The only real competitor to Boeing for the largest and most expensive planes is EADS division Airbus. Many of the models that will make up the forecast sales have just come into service, led by the Boeing 787 Dreamliner and Airbus A-380 super jumbo. According to the new Boeing 2012 Current Market Outlook (CMO), Asia Pacific sales will account for 12,030 of the sales for the twenty year period. The report said:
Airline traffic is forecasted to grow at a 5 percent annual rate over the next two decades, with cargo traffic projected to grow at an annual rate of 5.2 percent. The single-aisle market, served by Boeing’s Next-Generation 737 and the future 737 MAX, will continue its robust growth. Widebodies, such as Boeing’s 747-8, 777 and 787 Dreamliner, will account for almost $2.5 trillion dollars worth of new airplane deliveries with 40 percent of the demand for these long-range airplanes coming from Asian airlines.
Greek Credit Crunch
Greece has an additional financial obligation: the government owes suppliers six billion euros. Actually, the situation has existed for some time, but it has only recently become critical. “The first step (in improving access to financing) is to pay the arrears that have accumulated,” EU representative, Horst Reichenbach told a conference in Athens, according to Reuters. The news service reported:
Greece’s sovereign debt crisis has created a virtual credit crunch for businesses, as banks cut off from wholesale funding markets struggle to lend while its near-bankrupt government holds off on long overdue payments to avoid running out of cash.
Douglas A. McIntyre