Afternoon Coffee: Ford Motor’s Explorer causes financial headaches; Asia-Pacific business leaders cite global recession as top concern


A J.P. Morgan survey says the worldwide recession tops the list of concerns for Asia-Pacific business decision-makers, followed by the effects of trade tariffs in the next six to 12 months, reports CNBC. The poll was held at the 2019 J.P. Morgan Asia Pacific CFO and Treasurers Forum in Shanghai.

Around 30% of chief financial officers and group treasurers in the region from 130 global companies said they felt a potential global recession posed the biggest risk to their businesses.

Ford Motor’s Q3 revenue falls as Explorer SUV suffers quality issues

Quarterly revenue fell 2% to $36.99 billion for the U.S. automaker — and profits were down 60% — mainly due to restructuring costs and drops in overall U.S and China sales numbers, but “partly because the company bungled the launch of the new Ford Explorer SUV,” according to the AP via the Chicago Tribune. “Sales of the highly profitable Explorer were down 48% for the quarter as quality problems” — including loose wiring harnesses, non-activated gear displays, faulty seats and an improper shifter cover — “forced the company to hold shipments to dealers,” according to the article.

China could buy $20 billion worth of U.S. farm goods

Bloomberg reports that if the current trade talks go well, China could buy agricultural goods from the U.S. worth $20 billion in the first year, said people familiar with the ongoing talks.

Boeing to cut 787 production

On the U.S. aircraft maker's Q3 earnings call, CEO Dennis Muilenburg said that the company will be "cutting the production of 787 aircraft to 12 per month, down from 14, as the company experiences weaker demand as a result of the ongoing trade war between the U.S. and China," according to Supply Chain Dive.

India to sign deal with U.S. for Lockheed Martin Seahawks

Come November, India will conclude a procurement deal for multi-role helicopters from the U.S. for its blue-water navy, according to Business Standard. Defense ministry sources confirmed a contract will be signed in November with the Pentagon for 24 Lockheed Martin MH-60R Seahawks for upwards of $2.6 billion. The choppers will be stationed on naval warships for anti-submarine and anti-surface warfare, according to the report.

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