A look into the specifics of the deal and how it is geared towards creating more jobs in the US
Boeing Co. (NYSE:BA) announced a $17 billion deal with Iran on Sunday, to sell planes to Iran. This is a huge achievement for Iran whic was blocked economically from the rest of the world due to sanctions imposed on it. The deal comprises of nearly 80 jetliners which will be given to Iran. This will be one of the most high profile transactions after the removal of sanctions on Iran.
Washington assigned approval to Boeing in September 2016 to sell and make transactions with Iran. Airbus still needs full and final approval from Iran because only 10% of its plane components come from American origins.
Boeing deal is likely to face criticism from Congress and the White House. This is because in May, republican representatives were of the opinion that only when Iran stops supporting terror groups, should they make trade or other economical transactions with the country. The opposition of Congress to the nuclear deal has further gained momentum after Trump’s victory.
Creation Of Jobs
Boeing stated that the deal is very important as it will support thousands of jobs in the US. The jobs will mainly be created in the production and the delivery of the planes. This is also going to benefit the new economic environment and employment rates under the Trump government.
Currently, Boing employs 150,000 people in US and produces most of its parts within US. It also exports most of the products that it produces. Thus it is contributing a lot to the economy by bringing cash from other regions into the US.
Recently, the Renaissance Investment Group reduced its stake in Boeing by a massive 3.9%. It sold 1,413 shares during the third quarter 2016.
Boeing’s stock traded at $156.49, surging 0.71% as at the closing bell on Friday. The company has a market capitalization of $97.26 billion. The stock trades in the 52-week range of $102.10-156.88. It has a year-to-date (YTD) increase of 8.23%.