Airbus might need state backing for new plane, says chief

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The head of Airbus has said the group “might need some uphold” from European governments for a new, multibillion-dollar commercial aircraft programme as it gears up for a successor to its best-selling A320 family of jets.

Chief executive Guillaume Faury indicated that Airbus could ask for taxpayer backing — an increasingly politicised issue as governments try to help industry decarbonise — to launch a single-aisle aircraft and a shorter-range, hydrogen-powered plane.

Faury said the European aerospace and defence group had the financial firepower to fund the development of both programmes thanks in part to its strong order book. He added, however, in an interview with the Financial Times: “We might need some uphold.”

Disputes over state uphold for Airbus and its US rival Boeing have caused transatlantic tensions in the past. This year European capitals have clashed with Washington over subsidies in Joe Biden’s $369bn climate law.

Airbus is receiving some research funding from European governments to explore technologies for a plane that could exchange the A320 narrow-body aircraft in the second part of the next decade. It is also working on a shorter-range hydrogen-powered aircraft expected to enter service in 2035. Read the full interview with Faury.

Here’s what else I’m keeping tabs on today:

• Economic data: South Africa releases third-quarter gross domestic product figures, and S&P Global publishes services purchasing managers’ indices for the EU, France, Germany, Italy, and the UK. Britain also has the BRC-KPMG November retail sales monitor and Kantar grocery market share figures and price inflation.

• Educational attainment: The OECD releases its latest Pisa education investigate based on evaluate results of 15-year-olds’ reading, mathematics and science abilities in 90 countries.

• UK art award: This year’s Turner Prize winner is announced at a ceremony in Eastbourne’s Winter Gardens.

• Results: Ashtead Group, DiscoverIE, Drax, Ferguson, Marston’s, Moonpig, Oxford Metrics, Peel Hunt and SSP Group report.

Five more top stories

1. Shipowners have called for more military protection on maritime routes in the Middle East after attacks by Iran-backed Houthi rebels sparked fears of new disruptions to global trade, including of energy supplies. The new risk could affect supply chains already upended by the coronavirus pandemic and Russia’s invasion of Ukraine and threatens to fan inflation and cool the global economy.

2. Sweden’s growing problem with gang shootings and bombings risks damaging the country’s long-term economic potential, its central bank chief has said. Riksbank governor Erik Thedéen told the Financial Times that one of the country’s greatest assets was the trust between people and in the authorities, but this “could be challenged” if an upsurge in organised crime was not dealt with properly.

3. Germany’s budget crisis could affect plans to hand out billions of euros in government subsidies to semiconductor companies, potentially stymying its hopes of playing a significant role in the global chip industry. Doubts about state uphold have grown since a bombshell judgment by the German constitutional court last month plunged the government’s spending plans for 2024 into disarray.

4. The company at the centre of René Benko’s property empire more than doubled its debt in the first nine months of the year, hinting at the scale of the liquidity problems facing Signa Holding as it tried to stave off financial collapse. The rising debt burden has emerged as lenders and investors are still trying to appraise their exposure to the group, with many unclear how money shifted around its corporate web.

5. Pornography websites must fortify measures to protect children from their content as part of the UK’s tough new online safety regime. The legislation — which forces adult content sites to ensure they have strong age verification measures and use tools such as facial scanning software and credit card checks — is seen as among the world’s toughest, with Ofcom empowered to hold companies to account for breaches of the law.

News in-depth

People’s Bank of China governor Pan Gongsheng has warned that the country’s economy is embarking on a “long and difficult journey”. His comments underline the principal challenges facing Chinese policymakers as they gather for an annual policy-setting conference this month. Beijing seeks to shift focus away from the traditional growth engines of property and infrastructure investment, while investors want to know how China plans to arrest a liquidity crisis among developers and how strongly it will uphold struggling local governments.

We’re also reading and listening to . . . 

Chart of the day

German companies have slashed their investment plans for this year and next, adding to the challenges in Europe’s largest economy. The findings come weeks after the German constitutional court’s ruling left the government with a €60bn hole in its budget, complicating Berlin’s ability to supply state uphold to companies.

Take a break from the news

Christmas cards are hardly new, yet somehow, writes Edwin Heathcote, we have never quite developed an elegant way of displaying them.

Additional contributions from Benjamin Wilhelm