Bloomberg - Evening Briefing - Another blow to Boeing

United Airlines is no longer counting on Boeing’s largest 737 Max model as the planemaker’s manufacturing miscues threaten further delay of an aircraft already years behind schedule. While the carrier hasn’t canceled its order for the Max 10, United has removed it from its internal plans, Chief Executive Officer Scott Kirby said Tuesday. The company will “be working on what that means exactly with Boeing,” he said. The comments highlight the expanding fallout of the 737 crisis after a safety accident involving another version of the plane led to the grounding of all Max 9 jets this month and inspections of an earlier model. Analysts have said the heightened scrutiny from US safety regulators could delay the certification of the Max 10 and another yet-to-debut variant, the smaller Max 7. —David E. Rovella

India’s stock market capitalization has overtaken Hong Kong’s for the first time as the former’s growth prospects and policy reforms make it an investor darling just as global capital pours out of China. The combined value of shares listed on Indian exchanges reached $4.33 trillion as of Monday’s close, versus $4.29 trillion for Hong Kong, according to data compiled by Bloomberg. That makes India the fourth-biggest equity market globally. 

China’s boldest plan yet to stem the current stock market rout is facing a lot of skepticism as disillusioned investors say any rebound will prove fleeting without a fundamental fix to the economy. A rare mix of positive news including a stabilization fund in the works and Premier Li Qiang’s order to calm markets sent equity benchmarks rallying Tuesday. However, China’s history of botched market rescue efforts, the grim state of its economy and uncertainties over Beijing’s long-term policy roadmap are keeping investors skeptical about the sustainability of those gains. 

Toyota Motor Corp. Chairman Akio Toyoda says he believes battery electric vehicles will reach at most 30% market share, with the rest taken up by hybrids, hydrogen fuel cell and fuel-burning cars. With a billion people in the world living without electricity, limiting their choices and ability to travel by making expensive cars isn’t the answer, he said. “Customers—not regulations or politics—should make that decision,” Toyoda said.

Akio Toyoda  Photographer: Kiyoshi Ota/Bloomberg

The Biden administration is preparing an executive order that seeks to prevent foreign adversaries from accessing troves of highly sensitive personal data about Americans and people connected to the US government, according to a document obtained by Bloomberg News. The White House sees the exploitation of such data by other countries as an “unusual and extraordinary threat” to national security and foreign policy. By accessing Americans’ highly sensitive data, “countries of concern” can engage in malicious activities, such as espionage, cyberattacks and blackmail, providing a strategic advantage over the US, the document said.

A far-reaching plan to channel Europe-Asia trade through the Middle East is at risk of stalling before it even gets started. The Israel-Hamas war has halted progress on what’s known as the India-Middle East-Europe Economic Corridor—a project touted last year by Washington and key allies that envisages building new rail links across the Arabian peninsula. As Houthi attacks disrupt Red Sea shipping and turmoil spreads across the region, IMEC is effectively on ice. That’s a big setback for US strategy.

Turkey’s parliament approved Sweden’s accession to NATO after months of deliberations, leaving Hungary as the lone holdout to the defense alliance’s northern enlargement. The parliament plenary in Ankara voted to accept Sweden’s application on Tuesday, sending the document back to President Recep Tayyip Erdogan for a final signoff.

Nearly two years since Russia launched its war on Ukraine, the conflict which has claimed tens of thousands of Ukrainian lives has reached a critical phase. Bloomberg’s Editorial Board writes that the failure of the US and Europe to approve additional aid has left Ukraine perilously low on weaponry, ammunition and manpower. With Russian leader Vladimir Putin showing no signs of relenting, Western governments are openly considering another option: seizing frozen Russian state assets and giving the proceeds to Ukraine. The idea of making Russia pay for its aggression with its own assets has undeniable moral and practical appeal, the editors write. But while embarking on a long and contested process to seize Russian assets may allow leaders to claim they’re doing something, it won’t help save Ukraine.

Rescue workers at the scene of a Russian missile strike in Kharkhiv, Ukraine, on Jan. 23. Source: State Emergency Service of Ukraine

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Even for one of the wealthiest municipalities in the US, operating a nursing home is a strain. Greenwich, Connecticut, owns a 121-year-old nursing home. That makes it unusual, since only 5% of nursing homes are government-owned. The town is atypical in other ways. With one of the highest per-capita incomes in the country, it has long been a locus of wealth and celebrity, evident in services such as three marinas and a public golf course designed by architect Robert Trent Jones Sr. Its Nathaniel Witherell nursing home, however, like many such facilities across the country, is losing money.

Greenwich Avenue in Greenwich, Connecticut Photographer: Michael Nagle/Bloomberg

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