RTX Projects Growth on $289B Backlog as Empire State Manufacturing Cools

The United States, Denmark and Greenland have agreed on a security pact that expands US involvement in Greenland. The long-running diplomatic standoff is easing for now, without any transfer of the territory of Greenland, a Danish autonomous territory, to the United States. US President Trump said on the 18th that the US had agreed to hold "permanent management rights" over Greenland's security, and confirmed that the leaders of Denmark and Greenland are expected to sign the agreement in New York around the general debate of the UN General Assembly, which begins on the 22nd. Danish Prime Minister Frederiksen said the agreement recognizes the Danish realm's "sovereignty and territorial integrity" and the right of Greenland's residents to self-determination, suggesting it is not something under which Trump would gain ownership or sovereignty. In a post on social media, Trump explained that the US would be able to prevent hostile nations from establishing bases or military footholds in Greenland, as well as block investments that raise security concerns, and said the US would immediately expand its military presence in Greenland, stressing that the cost would be "zero burden on the US." Mark Jacobsen, an associate professor at the Institute for Strategy and War Studies at the Royal Danish Defence College, noted that the agreement is significant for Denmark and Greenland in that it could end roughly two years of confrontation without ceding territory to the US, saying "Trump needs a form that makes him look like the winner," while adding that on the goals of acquiring Greenland or exercising political control, "it did not go his way."

The US State Department has approved a proposed military arms sale to Ukraine worth up to $2.7 billion, according to a notification to Congress on the evening of Friday, September 18. The package covers upgrades to air defense systems, weapons and equipment, as well as related equipment and services, including S-300 replica missiles, GAM-67 missiles, longer-range laser-guided rockets, launcher modification kits and mobile firing systems, and counter-drone radars. However, the proposal still requires congressional review, and no final agreement has been reached. If the sale is completed, Ukraine will use funding from European countries together with the US Foreign Military Financing budget, which was allocated during the administration of former US President Joe Biden. The State Department said US funding for this sale will be counted as a contribution to the Ukraine Reconstruction Investment Fund under a one-to-one reimbursement agreement; the fund was established under a minerals agreement signed by the United States and Ukraine last year. The proposed arms sale comes as the administration of President Donald Trump seeks to shift more of the cost of supporting Ukraine onto European countries. Earlier in September, Trump said he would ask European countries to reimburse the United States for military aid and ammunition it had previously delivered to Ukraine. It also follows Trump's signing of legislation on Friday aimed at increasing economic pressure on Russia. Russia launched its full-scale invasion of Ukraine in early 2022, and Trump had pledged to end the conflict between Russia and Ukraine after taking office early last year, but fighting continues even after the first 20 months of his presidency.

Boeing has secured regulatory relief to continue selling 777F freighters and gained approval as prime contractor for a US$5.75 billion JDAM-ER munitions package to Saudi Arabia. The FAA waiver covers 35 extra 777F sales, extending a profitable widebody program at a time when free cash flow is constrained by 737 and 787 production issues. Separately, AerSale Corporation previously announced the lease of a Boeing 757-200PCF freighter to Kazakhstan-based Jupiter Jet. Together, the freight and defense developments help offset pressure from ongoing 737 and 787 production challenges, though they do not fully counter the key near-term catalyst of stabilizing 737 output or the biggest risk around cash generation and high debt. Investors are also watching the unresolved risk of a possible SPEEA strike and its potential impact on cash flow.