PKB's Market Espresso
December 3, 2025

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Airbus: Managing Technical Issues

Airbus shares declined as the company announced an urgent recall of A320-family aircraft to replace flight-control software and, in some cases, hardware, after identifying a vulnerability triggered by intense solar radiation. While nearly 6,000 aircraft were initially flagged, corrective actions were rapidly completed on most of the fleet, limiting operational disruption.

  • Flight-control software/hardware defect: Airbus ordered immediate checks on ~6,000 A320 aircraft due to potential corruption of critical flight-control data caused by solar radiation
  • Incident trigger: The issue emerged after a late-October JetBlue event involving an unexpected altitude drop
  • Operational impact: Most airlines completed updates without flight cancellations
  • Other quality concerns: reports confirmed by Airbus point to industrial-quality defects in fuselage panels on several dozen A320 aircraft

Record highs for Silver and Copper

Gold, silver and copper futures have all marked record-high settlements in 2025

  • A combination of factors, including persistent inflation concerns, U.S. interest-rate cuts, and substantial central-bank gold purchases, continue to underpin prices for the metals
  • Growing industrial demand is becoming an important factor driving silver and copper prices. The rally in silver – which had risen more than 8% over the previous two sessions – has been fueled by bets on prolonged supply tightness

Source: Bloomberg

More disagreements than ever

After cutting interest rates by more than a percentage point, Fed officials are now wondering where to stop – and finding there’s more disagreement than ever

  • In the past year or so, prescriptions for where rates should end up have diverged by the most since at least 2012, when US central bankers started publishing their estimates
  • That’s feeding into an unusually public split over whether to deliver another cut next week, and what comes after that

 

Source: Federal Reserve, Bloomberg

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