Brexit uncertainty returns as Johnson moves to block further extensions
UK Prime Minister Boris Johnson is reportedly planning to revise the Brexit withdrawal bill to block MPs from extending the Brexit transition process beyond December 2020.
When Johnson brings back his draft of Brexit agreement to UK parliament this week, it is expected to include a new clause stating trade talks cannot be taken beyond the end of next year, according to multiple media reports.
Under current plans, the UK government intends to withdraw the country out of the European Union on January 31 with the post-Brexit transition period set to conclude at the end of December 2020. However, that period can currently be extended by mutual agreement for up to two years while the UK negotiates a trade deal with the EU.
British pound slumped more than 1% against the U.S. dollar early Tuesday. The news also weighed on U.S. stock futures, with the blue-chip Dow futures slipping 50.5 points, or 0.18% to 28,212.5 as of 4:23 a.m. ET.
The S&P 500 futures were down 3.12 points, or 0.10% to 3,195.38 while the tech-heavy Nasdaq 100 futures moved 2.75 points lower to 8,603.25.
Boeing to suspend 737 Max production in January
Meanwhile, Boeing (NYSE: BA) shares are heading south after the aviation giant announced it would temporarily halt production of its troubled 737 Max jet in January. This is its largest assembly-line suspension in more than two decades.
Aviation regulators grounded the 737 Max in March this year, after two crashes within five months killed 346 people. Boeing had reported 387 deliveries of the Max jets to 48 airlines or leasing companies, as well as orders for 4,406 more from around 80 operators before the crashes.
The company has been producing the jets at the rate of 42 per month since the grounding. However, it is not allowed to deliver the planes until they are approved by the Federal Aviation Administration (FAA).
Boeing stock dropped $6.79, or 2.08% to change hands at 320.21 a share in premarket trade Tuesday.
FedEx-Amazon rivalry flares, Amazon tells sellers not to use FedEx Ground
Elsewhere, the gloves are off in the shipping and logistics competition. Amazon (AMZN quote) has announced it will no longer allow its third-party sellers to use FedEx (NYSE: FDX)’s ground delivery to ship Prime packages, The Wall Street Journal reported on Monday.
According to the Journal, Amazon said the ban will continue “until the delivery performance of these ship methods improves.” The online shopping titan said third-party merchants can still use FedEx’s ground and home delivery services for standard orders, or FedEx’s Express shipping service for Prime orders.
The ban comes just a few months after FedEx ended partnerships with Amazon to provide it with ground shipments and express air deliveries. Shares of FedEx were down 1.07% to $162.35 apiece in premarket trade Tuesday.