The Government Of Canada Signed A Foreign Military Sales Letter Of Offer And Acceptance For Up To 16 Boeing P-8A Poseidon Aircraft; Delivery Expected In 2026
Portfolio Pulse from Benzinga Newsdesk
The Government of Canada has agreed to purchase up to 16 Boeing P-8A Poseidon aircraft, with deliveries starting in 2026. The deal is reported to be valued at $5.9 billion.
November 30, 2023 | 6:38 pm
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POSITIVE IMPACT
Boeing secures a $5.9 billion deal with the Canadian government for 16 P-8A Poseidon aircraft, deliveries to commence in 2026.
The deal is significant for Boeing, as it represents a substantial revenue source and strengthens its position in the defense sector. The announcement of such a large contract is likely to be viewed positively by investors, potentially leading to a short-term increase in Boeing's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
The iShares MSCI Canada ETF (EWC) may experience indirect effects due to the Canadian government's defense deal with Boeing.
While the deal is with a US company, the expenditure by the Canadian government could have indirect implications for the Canadian economy and, by extension, the EWC ETF. However, the direct impact on EWC is likely to be minimal in the short term, as the ETF is diversified and the deal is a single event.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 30