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Speaker 1: Good morning. It's Wednesday, the twenty fourth of January here

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Speaker 1: in London. This is the Bloomberg Daybacurate podcast. I'm Caroline Hepke.

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Speaker 2: And I'm Stephen Carroll.

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Speaker 3: Coming up today, Donald Trump beats Nicky Haley in New

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Speaker 3: Hampshire and cements his status as a likely Republican presidential nominee.

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Speaker 1: The CEO of Alaska Air says that loose bolts have

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Speaker 1: been found in many of its bowing jets. In more

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Speaker 1: bad news for the plane maker.

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Speaker 3: And Apple's fork in the road, Bloomberg learns the tech

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Speaker 3: giant is dialing back its ambitions for a self driving car.

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Speaker 1: Let's start with a round up of our top stories.

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Speaker 3: New Hampshire voters have handed Donald Trump another decisive victory

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Speaker 3: in his bid for the Republican presidential nomination in the

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Speaker 3: United States. Nicky Haley came in around ten percentage points

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Speaker 3: behind Donald Trump and insists the race is far from over.

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Speaker 3: The next primary will be in her home state of

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Speaker 3: South Carolina, where she's polling thirty points.

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Speaker 2: Behind the former president.

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Speaker 3: Republican political consultant Rick Davis says things don't look good

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Speaker 3: for them. You an ambassador.

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Speaker 4: I think it's a pretty good shout across the bow

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Speaker 4: that Donald Trump gave her tonight, because if she doesn't

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Speaker 4: get out, she will face the most brutal assault on

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Speaker 4: her campaign in South Carolina that you'll ever see. All

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Speaker 4: of MAGA will descend upon that state and they will

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Speaker 4: brook nothing for her in this regard. So we've already

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Speaker 4: seen how he plays, and he plays hardball.

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Speaker 3: Rick Davis, as a partner at stone Court Capital and

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Speaker 3: a Bloomberg Politics contributor, Trum's emergent, says the clear front

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Speaker 3: runner gives Biden a chance to drive home his argument

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Speaker 3: that the race is a choice between him and the

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Speaker 3: Republican rather than a referendum on his presidency.

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Speaker 1: Now to Corporate News, the CEO of Alaska Airlines says

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Speaker 1: that he is disappointed and angry with the standard of

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Speaker 1: Boeings quality control. The planemaker is facing deep scrutiny from

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Speaker 1: regulators and customers after the mid air blowout of a

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Speaker 1: dual panel on an Alaska Airline's flight earlier this month.

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Speaker 1: Bloomberg's Ed Baxter has the story.

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Speaker 5: This comes Out. CEO Ben Manakuci says Alaska final loose

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Speaker 5: bolts on many of its Boeing seven thirty seven Max

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Speaker 5: nine aircraft. This is the same condition attributed to have

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Speaker 5: caused the mid air blowout of a panel on one

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Speaker 5: of its plans earlier this month. He says he is

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Speaker 5: more than frustrated, telling NBC his demand of Boeing on

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Speaker 5: what it is going to do to improve the quality

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Speaker 5: of in house quality control. Meanwhile, Boeing CEO Dave Calhoun

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Speaker 5: is set to meet with senators in DC today and tomorrow.

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Speaker 5: Ed Baxter Bloomberg Radio and.

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Speaker 1: The bad news just keeps on coming for Bowing. United

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Speaker 1: Airlines CEO Scott Kirby talking about this also as you

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Speaker 1: were just hearing that in Ed Baxter's reporting.

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Speaker 3: Netflix has seen its fastest growth in subscriber numbers since

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Speaker 3: the pandemic. The streaming giants signed up thirteen point one

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Speaker 3: million viewers in the last three months of twenty twenty three,

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Speaker 3: beating analyst forecasts. Netflix says more than twenty three million

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Speaker 3: people are now using its cheaper se vis that includes ads.

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Speaker 3: Co CEO Ted Sarandos is hoping to boost advertising revenue further.

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Speaker 6: Live event programming is something we've talked about for quite

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Speaker 6: a while and this has been in the works, so

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Speaker 6: used to look at this as fits inside of our

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Speaker 6: seventeen billion dollar programming spend. Now, I would not look

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Speaker 6: at this as a signal of any other change or

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Speaker 6: any change to our sports strategy.

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Speaker 2: Ted Sarandos.

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Speaker 3: They're speaking after Netflix announced a ten year deal to

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Speaker 3: offer live programming from World Wrestling Entertainment starting next year.

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Speaker 3: The platform's strong performances in contrast to many of its competitors,

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Speaker 3: which are operating shrinking cable networks and unprofitable streaming services.

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Speaker 1: Rishi Sunac's authority has been delta fresh blow by a

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Speaker 1: senior Conservative MP who is urging him to resign or

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Speaker 1: face an electoral massacre. Simon Clark, who rebelled against the

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Speaker 1: Prime Minister's Rwanda asylum bill, is calling on him to

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Speaker 1: step down ahead of the next election. The former Leveling

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Speaker 1: Up Minister said in a commentary piece in The Telegraph

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Speaker 1: that Sunac has gone from US to anchor.

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Speaker 3: Turkey has formally approved Sweden's accession to NATO after months

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Speaker 3: of deliberations, leaving Hungary as the loan holdout. Turkey's parliament

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Speaker 3: voted two hundred and eighty seven to fifty five to

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Speaker 3: accept the application that Sweden first made in twenty twenty two,

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Speaker 3: along with Finland to deter any aggression from Russia following

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Speaker 3: the invasion of Ukraine. President Retcheptya Berdawan is expected to

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Speaker 3: sign the legislation in the coming days. The move puts

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Speaker 3: the Nordic nation on the cusp of realizing its goal

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Speaker 3: of becoming the thirty second member of the North Atlantic

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Speaker 3: Treaty Organization and will boaster NATO's northern reach.

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Speaker 1: Apple is dialing back he features on what was supposed

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Speaker 1: to be a self driving car and delaying its launch.

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Speaker 1: After reaching a make or break point in its decade

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Speaker 1: long quest to release a vehicle, the tech job pivoted

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Speaker 1: to more basic driver assistance capabilities akin to current Tesla models,

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Speaker 1: calling to people familiar with the matter, The release date

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Speaker 1: continues to slip, with the earliest timing now expected in

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Speaker 1: twenty twenty eight, roughly two years after a recent projection.

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Speaker 1: Bloomberg's Ed Ludlow says that internal movement at Apple has

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Speaker 1: affected the project.

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Speaker 7: It started out with the idea that this was going

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Speaker 7: to be super high end, almost fully autonomous, with a

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Speaker 7: high price point, but it's just seen high turnover of

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Speaker 7: leadership and executives and the team working on it little progress,

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Speaker 7: and what we understand from sources and Bloomberg's Mark German's

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Speaker 7: reporting is that there were meetings over a big chunk

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Speaker 7: of twenty twenty three between the board, Tim Cook, the

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Speaker 7: CEO of Apple, and Kevin Lynch, who leads the car

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Speaker 7: project alongside the Apple Watch, where they basically said we

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Speaker 7: need some progress here and a net result is this

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Speaker 7: rethink of scaling back of both the timeline but also

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Speaker 7: of what the end product.

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Speaker 2: Will look like.

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Speaker 1: Bloomberg Technology reporter ed Ludlow. There, automotives will be an

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Speaker 1: entirely new category for the California based company, which could

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Speaker 1: help drive growth after revenue suffered from a maturing smartphone industry,

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Speaker 1: the slowdown in China last year. Now, in a moment,

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Speaker 1: we'll get more on the latest challenges facing Boeing. But

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Speaker 1: another story that caught our rye this morning. Bloomberg's been

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Speaker 1: looking at the Trump related stocks that have seen a jump,

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Speaker 1: as he mused, closer basically to the Republican nomination. Quite

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Speaker 1: interesting the names that have been picked.

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Speaker 3: Out, Yes, they include the likes of PSQ Holdings, which

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Speaker 3: is an online marketplace that says that caters to quote

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Speaker 3: freedom loving Americans via its website Public Square. It shares

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Speaker 3: jump by twenty five percent on Monday. Funware, which is

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Speaker 3: a money losing software company that designed the app for

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Speaker 3: Trump's twenty twenty campaign, Its shares as climbed over four

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Speaker 3: hundred percent this year to forty three cents a share,

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Speaker 3: I should point out as well.

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Speaker 2: And then there's Digital World Acquisition, which.

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Speaker 3: Is the special purpose vehicle that planned has the planned

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Speaker 3: merger at Trump Media and Technology Group that's been held

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Speaker 3: up for more than two years by regulatory issues. Its

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Speaker 3: shares surged by eighty eight percent on Monday, jumped again

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Speaker 3: on Tuesday. It's up by more than one hundred and

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Speaker 3: ninety percent this year as well. Now our colleagues are

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Speaker 3: describing as a speculative boomlet boo.

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Speaker 8: Yeah.

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Speaker 1: I mean they're a little bit obscure. They're not very

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Speaker 1: big companies that have a huge amount of revenue, so

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Speaker 1: it is quite interesting. I suppose the counterpoint to that

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Speaker 1: is that a lot of the market really understands that

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Speaker 1: he's the front runner for the Republican nomination, so maybe

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Speaker 1: not much has changed. And then in the background, of course,

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Speaker 1: the rest of the market kind of thinking about this

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Speaker 1: really is background noise still even though we're you know,

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Speaker 1: we're getting closer to the real race.

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Speaker 3: Yeah, indeed, so interesting to reflection how markets are considering

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Speaker 3: this as we turn to get more details now on

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Speaker 3: Donald Trump appearing to be on the cusp of clinching

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Speaker 3: the Republican presidential nomination after he beat the former Ambassador

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Speaker 3: to the UN, Nicky Haley, in the New Hampshire primary.

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Speaker 3: We've got Bloomberg Senior outsur Bell ferries with us for more.

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Speaker 2: Bill. How decisive was this win for Donald Trump.

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Speaker 8: It's definitely a solid win. I think the last pull,

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Speaker 8: the last results I saw, had Donald Trump up by

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Speaker 8: eleven or twelve points over Nicky Haley, and that could

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Speaker 8: be in the end a high water mark for her.

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Speaker 8: She was going to benefit from independent voters and unaffiliated voters,

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Speaker 8: so basically people who are not necessarily Republicans being allowed

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Speaker 8: to vote in that primary. That was expected to boost

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Speaker 8: her support. But in the end, when you look across

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Speaker 8: the demographics and the ages, donald Trump won pretty handily

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Speaker 8: and pretty much every category. I mean, you look across

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Speaker 8: age groups, he did particularly well with the youngest voters

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Speaker 8: and some of the oldest voters demographics in terms of

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Speaker 8: working background and other things like that. He did very well.

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Speaker 8: I think Nikki Haley won in one category and that

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Speaker 8: was I think college educated white voters. So she came

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Speaker 8: within striking distance in some ways. But I think the

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Speaker 8: road gets much more difficult from here, and starting in

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Speaker 8: late February early March, the calendar accelerates in a way

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Speaker 8: that's not to her advantage.

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Speaker 1: Okay, what do we think it might be next then?

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Speaker 1: In terms of what happens for Nicky Haley.

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Speaker 8: Well, the next big primary is in her home state

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Speaker 8: of South Carolina. The palls show her losing by as

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Speaker 8: much as thirty points right now to Donald Trump. I

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Speaker 8: think she goes there tries to spin her second place finish,

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Speaker 8: as you know, a sign that there's still a lot

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Speaker 8: of dissatisfaction among Republicans with Trump. I think, you know,

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Speaker 8: if you look at the two primaries, he got a

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Speaker 8: little bit over fifty percent in both of them. So

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Speaker 8: that does show that for a former president, there's a

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Speaker 8: lot of people out there looking for an alternative. And

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Speaker 8: I you know, one of her main donors, the Charles

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Speaker 8: Koch and family, have said that they'll continue to support her,

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Speaker 8: so she'll have some money, but that's a huge gap

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Speaker 8: thirty points, and then just a ten days later you

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Speaker 8: have a Super Tuesday primary in early March with I

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Speaker 8: think more than a dozen states. It would be an

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Speaker 8: incredible political comeback for Nicki Haley or anyone to be

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Speaker 8: able to still be on their feet after that.

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Speaker 3: So, in the absence of some sort of comeback of

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Speaker 3: that description, if Donald Trump does go ahead to win

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Speaker 3: the Republican nomination, is it really Joe Biden He's going

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Speaker 3: to be facing There are some calls for Joe Biden

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Speaker 3: to hand on the tours to a new generation.

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Speaker 8: Yeah, it's definitely going to be Joe Biden. I mean,

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Speaker 8: I think you had he Technically, Joe Biden had one

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Speaker 8: challenger in the New Hampshire primary, Congressman Dean Phillips. He

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Speaker 8: basically it was not even close in terms of the

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Speaker 8: voter support there. There's really no other candidate at this point.

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Speaker 8: I think Joe Biden and Donald Trump are already when

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Speaker 8: you look at their press releases and you listen to

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Speaker 8: their aids, they're both talking about this as a two

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Speaker 8: man race heading into November. Donald Trump wants to be

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Speaker 8: done with Nicky Haley and Joe Biden is focused on

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Speaker 8: Trump as his biggest opponent Wall Street.

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Speaker 1: You have been pretty grudging about another Trump term, but

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Speaker 1: they perhaps do seem to be warming to the idea.

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Speaker 2: Now, Yeah, at some level.

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Speaker 8: I mean they realize what happened in twenty sixteen, when

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Speaker 8: I think Trump shocked a lot of people by winning.

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Speaker 8: You heard I think even Jamie Diamond recently saying that

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Speaker 8: he thought Trump was right on some things and that

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Speaker 8: Trump's supporters have been scapegoaded by some Democrats. Listen, I

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Speaker 8: think they're going to position themselves or going to hedge

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Speaker 8: themselves for any any possible reality after November, and right

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Speaker 8: now it looks like Donald Trump is very much a

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Speaker 8: real possibility.

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Speaker 3: Okay, both ayays, our senior editor, thank you very much

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Speaker 3: for bringing us up today with that news out of

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Speaker 3: New Hampshire this morning, Donald Trump winning over at Nicki Haley.

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Speaker 1: Now to the Boeing story. The Alaska CEO Ben Minucci

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Speaker 1: expressed anger and frustration at the company, telling NBC that

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Speaker 1: the airline found loose bolts on many of its Boeing

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Speaker 1: seven three seven Max nine aircraft. Now, the airline is

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Speaker 1: carrying out those inspections after a safety accident on the

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Speaker 1: fifth of January that saw a power on one of

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Speaker 1: its planes blow out mid air. Joining us now to

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Speaker 1: discuss as Bloomberg Aviation reporter Danny Lee. Good to have

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Speaker 1: you with us, Danny. Some very frustrated airline CEOs. How

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Speaker 1: worrying are these discoveries though, of loose bolts on Boeing planes.

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Speaker 9: Yeah, good morning. So it's the focuses on the Max

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Speaker 9: nine aircraft again, and through the inspections that Alaska Airlines

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Speaker 9: has done, it's found loose bolts in many planes, and

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Speaker 9: they have several dozen of the Max nines not in

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Speaker 9: service but now grounded. And so with the inspections, it

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Speaker 9: does raise the questions that through the deliveries that have

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Speaker 9: started from the very beginning, it does raise questions over

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Speaker 9: the constant quality product that is being produced out of

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Speaker 9: Boeing's factories for a period of time. Then when you

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Speaker 9: find loose bolts in many of your aircraft, and it

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Speaker 9: does come as a whole heap of news on Boeing

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Speaker 9: overnight emerges with especially very angry CEOs and Boeing on

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Speaker 9: the defense once again.

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Speaker 3: Yeah, I mean this news from United They're no longer

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Speaker 3: counting on the biggest seventy three seven Max model to

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Speaker 3: be part of their fleet, not canceling the order for

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Speaker 3: the Max ten, but still casting doubt over it. That's

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Speaker 3: the sort of signal that Boeing really doesn't want to

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Speaker 3: be getting at this stage.

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Speaker 9: Yeah, and for the Max ten, the largest of these

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Speaker 9: single ologjets, that it's still five years behind its certification

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Speaker 9: and again ongoing doubts about that process as it tries

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Speaker 9: to get this certified. And then for United they're also

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Speaker 9: not counting on the Max nines to be delivered this year,

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Speaker 9: and that's thirty one aircraft, so that could be a

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Speaker 9: big chunk of change for Boeing. Also, it does speak

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Speaker 9: really to the frustration of airline CEOs who cannot plan

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Speaker 9: around their operations, their schedules if they don't have an

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Speaker 9: aircraft product that they can put into the skies safely.

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Speaker 1: Boeing share price down about eighteen percent this year, reflecting

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Speaker 1: deep investor concerns. What is Boeing doing to alleviate the crisis?

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Speaker 2: Yeah, that's a.

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Speaker 9: Good question, and I think Boeing is very much on

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Speaker 9: the back foot, not just with the airlines and customers

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Speaker 9: that it has now disrupted with this Max nine, and

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Speaker 9: also with these recommended checks that the FAA, the Federal

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Speaker 9: Aviation Administration has asked for the seventy seven DASH nine

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Speaker 9: hundred er as well. But with the Boeing CEO, he's

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Speaker 9: going to Washington, He's going to meet with Senators on

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Speaker 9: Wednesday and Thursday. So this is very much him, Dave Calnhun,

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Speaker 9: trying to appease and meet with politicians to try and

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Speaker 9: make sure that Washington is very much in the loophole

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Speaker 9: on what is going on. And because you know, we

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Speaker 9: hear constant developments on Boeing at the moment, and it

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Speaker 9: doesn't necessarily give rise to the fact that everything's all

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Speaker 9: under control at.

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Speaker 3: The moment, Danny, what is going on with the FAA's

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Speaker 3: investigation into this and as that they've expanded into other

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Speaker 3: seven three seven models as well.

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Speaker 9: So the airlines are very much doing what the FAA

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Speaker 9: has instructed in doing checks on their planes and submitting

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Speaker 9: the data to the FA to see what agreement between

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Speaker 9: the FA and Boeing there will be on getting the

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Speaker 9: procedure fully in place to then make the checks satisfactory

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Speaker 9: if there needs to be any fixes, and then get

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Speaker 9: those planes up into the air. But you know, we've

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Speaker 9: already heard from you know, the regulators, saying that they

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Speaker 9: may well expand their probe into other, even more Boeing models,

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Speaker 9: and as a scrutiny widens into this whole idea of

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Speaker 9: manufacturing practice and quality.

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