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FTSE LIVE: Boeing faces $5bn hit; UK stocks rally as pound holds above $1.25

Boeing to take $5billion hit over 737 Max grounding

Boeing is booking a $4.9billion (£3.9 billion) charge to cover possible compensation to airlines that have cancelled thousands of flights since the 737 Max jet was grounded after two deadly accidents.

The aeroplane builder also said the Max-related fallout will cut almost £4.5billion from its revenue and pre-tax earnings in the April-through-June quarter.

The Chicago-based company said the calculations were based on an assumption that regulatory approval for the plane's return to flying will begin early in the fourth quarter.

The timing is earlier than some analysts expected and may have contributed to a rally in Boeing shares in after-hours trading.

Boeing is still working on fixing flight-control software that appeared to play a role in crashes that killed 346 people off the coast of Indonesia and in Ethiopia.

Pastures new for RBS boss

Ross McEwan, outgoing chief executive of the Royal Bank of Scotland, has been appointed the next boss of the National Australia Bank, the companies have announced.

McEwan will remain in place at RBS until a successor has been appointed, the bank said, with chairman Howard Davies adding: "We... congratulate him on this appointment.

'The search for a successor remains ongoing and the effective date of Ross' departure will be confirmed in due course.'

Pound holding above $1.25... just

A day of strong retail data and a possible block to no-deal Brexit put the pound in a good mood on Thursday - helping it secure some distance from the 27-month nadir against the dollar it fell to on Wednesday. 

Its optimism is fading a touch this morning - as the Tory leadership contest comes to a head, but the currency is still holding just above $1.25. 

Against the Euro, it's down at 1.1126.  

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