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Boeing: Trump's plan to increase the equity stake in US defense companies does not apply

Boeing's head of defense said that the plan by U.S. president Donald Trump to acquire government stakes in strategic sectors does not apply to major defence firms. This is in stark contrast to comments made previously by senior government officials.

Steve Parker, CEO of Boeing Defense, Space & Security, spoke on a panel during the Reagan National Defense Forum, a yearly industry event held in Simi Valley, California.

Parker said, "I don’t think it applies to the Primes", referring to large legacy defense contractors such as Boeing, Lockheed Martin and Northrop Grumman. U.S. commerce secretary Howard Lutnick announced in August that the Trump administration is considering equity stakes with major defense contractors including Lockheed Martin. This announcement sent Lockheed, Boeing, and other defense companies' shares higher. In an effort to prioritise national security, the Trump Administration has acquired equity stakes this year in chipmaker Intel, and rare earths firm MP Materials. Trump has stated that the government will invest in more companies. (Reporting and editing by Mike Stone, Joe Brock and Deepa Babington).

(source: Reuters)