Morning brief: Boeing secures $8.6B fighter jet deal, Meta buys startup Manus

Global markets opened Tuesday digesting a mix of defense contracts, economic data from South Korea, volatile commodity moves, and continued consolidation in the artificial intelligence sector.

From Boeing’s major fighter jet order for Israel to Meta Platforms’ acquisition of fast-growing AI startup Manus, investors are weighing geopolitical risks alongside shifting growth signals in Asia and the US.

Boeing wins major US Air Force contract for Israel

Boeing has been awarded a contract worth up to $8.58 billion from the US Air Force to build fighter jets for the Israeli Air Force, the Pentagon said on Monday.

The agreement covers the design, integration, testing, production, and delivery of 25 new F-15IA aircraft, with an option for Israel to purchase an additional 25 jets.

Work on the contract will be carried out in St. Louis, Missouri, and is expected to run through Dec. 31, 2035.

The deal includes $840 million in foreign military sales to Israel, which will be obligated at the time of the award.

Separately, Boeing also received a modification to a prior Air Force contract for depot maintenance services and supply management in Oklahoma City.

That adjustment increases the total value of the award to $4.2 billion, up from $1.5 billion previously.

South Korea data signals uneven economic momentum

Fresh data from Statistics Korea showed mixed signals from Asia’s fourth-largest economy.

Retail trade in South Korea fell 3.3% in November from the previous month, although it rose 0.8% on a year-on-year basis.

Industrial output declined 1.4% compared with November last year, reflecting weakness in manufacturing activity.

On a monthly basis, however, overall production increased 0.6% from October.

Construction activity remained subdued, falling 17.0% year-on-year, despite a 6.6% rise from the prior month.

Services provided some support, with output rising 0.7% month-on-month and 3.0% compared with a year earlier.

Asian markets slip as metals cool and tensions rise

Asian equities edged lower on Tuesday, tracking a pullback in US technology stocks and heightened geopolitical tensions.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.12%, remaining on track for an annual gain of 26.7%, its best performance since 2017.

Japan’s Nikkei fell 0.13% but was still up around 28% for the year, while Taiwanese shares dropped 0.36% and China’s blue-chip index gained 0.27%.

Commodity markets were volatile. Silver plunged 8.7% on Monday, its biggest one-day fall since August 2020, before rebounding 4.1% to $75 an ounce.

Gold also pulled back sharply before stabilizing. Oil prices eased after strong overnight gains, with Brent crude almost unchanged by 0.03% gain to $61.52 a barrel.

Meta acquires AI startup Manus in expansion push

Meta Platforms has agreed to acquire Manus, a Singapore-based developer of general-purpose AI agents, as it continues to ramp up investment in artificial intelligence. Financial terms of the deal were not disclosed.

Manus offers subscription-based AI tools capable of tasks such as market research, coding, data analysis, and website creation.

Founded in China as part of the startup Butterfly Effect, the company later relocated its headquarters to Singapore and reported annualized revenue exceeding $100 million within eight months of launch.

Meta said Manus will continue operating its service while its employees join Meta’s AI teams, reinforcing Chief Executive Mark Zuckerberg’s strategy to scale AI across consumer and enterprise products.

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