UK and US Sign Trade Deal: UK to Buy $10 Billion in Boeing Planes, Boeing Stock Rises 4%, European Markets Mostly Close Higher

Taiwan • Business • 05/08 18:00
UK and US Sign Trade Deal: UK to Buy $10 Billion in Boeing Planes, Boeing Stock Rises 4%, European Markets Mostly Close Higher

On May 8, 2025, U.S. President Donald J. Trump and UK Prime Minister Keir Starmer announced at the White House that they had reached a trade agreement spanning multiple industries, which includes tariff reductions and expedited customs clearance. The UK agreed to purchase $10 billion worth of Boeing aircraft, which boosted Boeing's stock price by 4.25%. European stock markets saw general gains, with the Frankfurt DAX index rising 1.02% and the Paris CAC 40 increasing 0.89%, though the London FTSE 100 dipped slightly by 0.32%.

Key Updates

05/09 15:03

On the eve of the US-China trade talks, US stocks opened up on May 9, 2025, with all three major indexes rising.

On May 9, 2025, high-level trade talks between the US and China are set to begin in Geneva, Switzerland, causing US stock markets to rise at the opening. The Dow Jones Industrial Average rose 37.0 points to 41,405.48, the S&P 500 increased 15.7 points to 5,679.65, and the Nasdaq Composite went up 94.4 points to 18,022.549. Anticipation of eased trade tensions drove the stock market upward.

05/09 13:30

Five Key Things to Know Before the U.S. Stock Market Opens on May 9, 2025: U.S.-U.K. Trade Agreement, Corporate Earnings Reports, and Other Key Factors

On May 9, 2025, U.S. stock market investors are focused on the U.S.-UK trade agreement, U.S.-China trade negotiations, corporate earnings, and economic data. U.S. stock futures rose following the U.S.-UK trade agreement; U.S.-China trade negotiations will be held in Geneva, with tariff policies being the focal point; Pinterest's earnings report was strong, while Expedia's stock price dropped due to weak travel demand; U.S. retail sales rose by 1.5% in April, and the Producer Price Index (PPI) fell by 0.4%; Bitcoin broke through the $100,000 mark, and the escalating military conflict between India and Pakistan has heightened concerns over geopolitical risks.

05/09 11:04

President Donald Trump pushes for a new tax reform bill: expects economic growth and criticizes the Federal Reserve for its slow policy

On May 9, 2025, U.S. President Trump promoted a new tax reform bill, with plans to increase taxes on high-income earners to finance tax cuts for the middle and working classes, continuing the policies of his first term. Trump referred to this bill as a "big and beautiful bill," anticipating it will stimulate economic growth and urged investors to invest in U.S. stocks. He criticized Federal Reserve Chairman Powell for failing to lower interest rates promptly, calling his actions sluggish and detrimental to the coordination of economic policies.

05/09 03:09

Palantir rises to the top ten US tech companies: Market value reaches $2,810 billion, driven by government contracts and the US-UK trade agreement.

On May 8, 2025, Palantir Technologies (NASDAQ: PLTR) experienced a 7.85% increase in its stock price, closing at $119.15 per share, with its market capitalization reaching $281 billion, making it the tenth-largest tech company in the United States, surpassing Salesforce. The stock price increase was driven by strong financial results, an upward revision of the annual forecast, the US-UK trade agreement, and support from government contracts. The market expressed concerns about its price-to-earnings ratio of 520, reflecting both high expectations and potential risks associated with its valuation.

05/09 03:09

May 9, 2025, U.S. stock futures fall in early trading: The three major indices all fall, market sentiment retreats

On May 9, 2025, futures for the three major U.S. stock indices were down across the board in early trading. At 8:31 AM Taipei time, Dow Jones Industrial Average futures fell 114 points to 41,354, S&P 500 futures dropped 13 points to 5,671.5, and Nasdaq 100 futures fell 42.25 points to 20,105.75. This pullback contrasts with the previous day's gains, indicating profit-taking following a brief period of optimism, as investors wait for more economic data and policy signals.

05/08 18:00

UK and US Sign Trade Deal: UK to Buy $10 Billion in Boeing Planes, Boeing Stock Rises 4%, European Markets Mostly Close Higher

On May 8, 2025, U.S. President Donald J. Trump and UK Prime Minister Keir Starmer announced at the White House that they had reached a trade agreement spanning multiple industries, which includes tariff reductions and expedited customs clearance. The UK agreed to purchase $10 billion worth of Boeing aircraft, which boosted Boeing's stock price by 4.25%. European stock markets saw general gains, with the Frankfurt DAX index rising 1.02% and the Paris CAC 40 increasing 0.89%, though the London FTSE 100 dipped slightly by 0.32%.

05/08 15:05

The US and UK have reached a historic trade agreement, the US plans to ease AI chip bans to stimulate the market, and the three major US stock indices rise.

On May 8, 2025, President Trump of the United States announced a trade agreement with the UK covering industries like automotive, steel and aluminum, agriculture, and aviation, and plans to remove the AI chip export restrictions imposed during the Biden administration. These policies boosted market confidence, leading to a rise in major U.S. stock indices. The Dow Jones Industrial Average climbed 247 points, driven by tech stocks, and the Philadelphia Semiconductor Index rose nearly 2%. Investors are optimistic about the shift in U.S. trade policy and the relaxation of technology export restrictions.

05/08 11:04

U.S. stock futures are steadily rising: Dow Jones Industrial Average rises 224 points, led by tech stocks

On the afternoon of May 8, 2025, U.S. stock futures increased, with Dow Jones Industrial Average futures up 224 points (0.54%), S&P 500 futures up 42.5 points (0.75%), and Nasdaq 100 futures up 209 points (1.05%). The strong performance of tech stocks boosted market sentiment, with gains widening in the afternoon, indicating growing confidence in the tech sector.

05/08 03:04

U.S. stock futures rise in pre-market trading: Dow Jones Industrial Average climbs to 41,324 points, influenced by Federal Reserve policy and trade agreement expectations.

On May 8, 2025 (Taipei time), in early trading, U.S. stock futures rose. Dow Jones Industrial Average futures increased by 110 points to 41,324, S&P 500 futures rose by 26 points to 5,678, and Nasdaq 100 futures climbed 137.5 points to 20,098.5. This rise was due to the Federal Reserve keeping interest rates unchanged and Trump's announcement of a significant trade deal, lifting market sentiment.

05/08 02:00

Cantor Fitzgerald Downgrades Marvell's Rating and Price Target: Outlook for Custom Silicon Business Deteriorates, Resulting in Loss of Amazon and Microsoft Orders.

May 7, 2025, Cantor Fitzgerald downgraded Marvell Technology's stock rating from "Outperform" to "Neutral," and lowered the price target from $125 to $60 per share, due to growing market concerns about the prospects of its custom silicon business, especially due to the loss of orders from Amazon and Microsoft. Cantor forecasts that earnings per share will drop to $3.00 by 2027, which is below expectations and further undermines valuation support.

Initial Details of the UK-US Trade Agreement

US President Donald Trump and UK Prime Minister Keir Starmer jointly announced this trade agreement at the White House, calling it a "historic day." According to US Secretary of Commerce Howard Lutnick, the agreement will provide greater market access for US exporters, including agricultural products (such as beef and ethanol), machinery, and aerospace parts.

In the agreement, the UK promises to "reduce or eliminate" non-tariff barriers on US goods and expedite the customs clearance process for US products. The US, in turn, agrees to lower import tariffs on UK cars from the original 27.5% to 10% and to remove tariffs on UK steel and aluminum. Additionally, the agreement allows the UK to export up to 100,000 cars to the US annually at preferential tariff rates.

UK Plans to Purchase Boeing Aircraft, Market Reaction is Positive

As part of the agreement, the UK will purchase $10 billion worth of Boeing aircraft. Although specific models and ordering airlines have not yet been announced, information provided by the US Department of Commerce and the White House indicates that this transaction is a private sector procurement, with details to be disclosed by the relevant airlines.

According to aviation industry media outlet Simple Flying, International Airlines Group (IAG), the parent company of British Airways, may be the leader in this transaction. The group has previously negotiated with Boeing to purchase wide-body models like the 777X and 787-10 to replace its aging fleet. Virgin Atlantic has explicitly stated it is not participating in this transaction.

A diagram released by the White House shows that the transaction includes "aircraft parts worth $10 billion," but it does not specify whether these are firm orders or option contracts. According to Boeing's official website, the UK still has 149 undelivered Boeing aircraft, including 109 ordered by airlines and 40 by leasing companies, with a total value estimated to exceed $12 billion.

Boeing Shares Rise Over 4%, Investor Confidence Rebounds

Boosted by this news, Boeing (BA-US) shares rose 4.25% to $193.40 during trading on May 8. According to the U-Analysis Industry Data Center, this $10 billion order accounts for about 12% of Boeing's estimated 2025 revenue of $83.6 billion, having a significant impact on the company's operations.

Boeing has faced challenges in recent years with quality control and delivery delays, and this large order provides a much-needed boost. Although the company has not yet issued an official statement on this transaction, the market generally believes it will help restore confidence in its commercial aircraft division.

Additionally, Boeing announced on the same day that it will sell part of its digital aviation solutions business to private equity firm Thoma Bravo, further advancing its asset restructuring and cash flow optimization strategy. This news also supported the stock price.

European Stock Markets Mostly Rise, UK Stocks Fall

Following the announcement of the UK-US trade agreement, major European stock markets generally rose. The Frankfurt DAX index increased by 236.73 points, or 1.02%, closing at 23,352.69; the Paris CAC 40 index rose by 67.60 points, or 0.89%, closing at 7,694.44. The market generally believes that the agreement will help improve the global trade environment, especially for export-oriented European economies.

However, the London FTSE 100 index fell by 27.72 points, or 0.32%, closing at 8,531.61. Analysts pointed out that after 16 consecutive trading days of gains, UK stocks experienced a technical correction, and some investors remain cautious about the details of the agreement, leading to slightly conservative market sentiment.

Other European stock markets also showed positive performance. According to Amwal Al Ghad, the pan-European STOXX 600 index rose by 1.30%, with Germany's DAX and France's CAC 40 up by 1.16% and 1.09%, respectively. The aviation and industrial sectors performed particularly well, reflecting market optimism about transatlantic trade prospects.

References

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The UK purchased Boeing planes, and Boeing's stock price rose by 4%. How does this affect investments?

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The United Kingdom purchases Boeing planes, and Boeing's stock price rises by 4%. What implications does this have for investors?

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