- The market closed 96 points down, whereas Boeing shaved off 150 points
- Boeing takes on another big blow as stock plummets
- The U.S. raises security concerns about Huawei Technologies
On March 12, 2019, the Dow Jones Industrial fell as Boeing shares posted another steep decline amid worries surrounding one of their most revered airplanes.
Shares fell more than 6 percent for Boeing, covering the 5.3 percent downward spin from Monday’s session. This came in the wake of closures of all flights involving the 737 MAX model including China, the U.K., and Indonesia. The aftermath of the plane crash has ricocheted to its stock which has spiraled down after Edward Jones downgraded stocks because of a possible “delay in orders.”
U.S. Security Concerns about Huawei Technologies
Meanwhile, the U.S. counters China’s Huawei bid to control undersea global internet grid. New battle lines between the U.S. and China have been set over the delivery of internet on global networks. The battlegrounds are set or at least revolve around the ocean.
The U.S. is waging a calibrated and profiled case to eliminate China’s Huawei Technologies Co. from next-generation networks over espionage fears; the company is setting itself up with the undersea cable that could see it deliver nearly all of the world’s internet data.
“We are acutely aware of counterintelligence and security threats to undersea cables from a variety of actors,” said William Evanina, director of the National Counterintelligence and Security Center. “Given that undersea cables carry the bulk of the world’s telecommunications data, safeguarding these cables remains a key priority for the U.S. government and its allies.”
Close to 380 functional submarine cables-fiber optic lines that carry data in oceans transcends nearly 95% of intercontinental data and voice traffic, thus making them a subject to most economies and national security of a large number of countries.
Huawei Marine Networks Co., which is majorly owned by the Chinese telecommunications giant just finalized a 3,750-mile installation in Brazil and Cameroon in September and is in the process of laying a 7,500-mile cable between Europe, Asia, and Africa. It is also in the process of finalizing connections in the Gulf of California in Mexico.
In total, the company has been in the process of building or upgrading 90 projects associated with seabed fiber-optic network, potentially gaining fast on the U.S., Japanese and European companies that have a domineering grip on the industry.