WEBVTT - Boeing CEO to Step Down in Overhaul 0:00:02.920 --> 0:00:10.799 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:10.840 --> 0:00:15.040 Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 0:00:15.040 --> 0:00:18.040 Eastern on Affo, CarPlay and Android Auto with the Bloomberg 0:00:18.079 --> 0:00:21.400 Business app. Listen on demand wherever you get your podcasts, 0:00:21.640 --> 0:00:23.360 or watch us live on YouTube. 0:00:25.079 --> 0:00:27.520 Let's go to that top story of the morning, and 0:00:27.560 --> 0:00:29.880 that is Boeing. So that's doc up. But see, I 0:00:29.880 --> 0:00:32.320 think we're just up by about one percent here as 0:00:32.360 --> 0:00:35.640 David cal Hun will be stepping down as CEO, but 0:00:35.720 --> 0:00:37.600 not until the end of the year. Apparently he's going 0:00:37.640 --> 0:00:39.720 to be intimate and intimately I made that word up, 0:00:39.760 --> 0:00:41.839 but he's going to be involved into a replacement, which 0:00:41.880 --> 0:00:44.479 I also think is quite interesting. So I want to 0:00:44.520 --> 0:00:47.720 go to George Ferguson. He's the guy. He's the airline 0:00:47.720 --> 0:00:49.680 guy that you got to go to. He is senior aerospace, 0:00:49.720 --> 0:00:53.960 defense and airlines analysts joining us now in Princeton. All right, George, 0:00:54.640 --> 0:00:56.680 your reaction to the news that we saw earlier, and 0:00:56.680 --> 0:00:58.000 then we'll walk up to what's next. 0:00:59.240 --> 0:01:02.640 Yeah, So my action was, you know, I think we 0:01:02.640 --> 0:01:05.640 we thought Dave Calhoun probably would be going I hate 0:01:05.680 --> 0:01:08.480 to sort of wish that in anybody. But it seemed that, 0:01:08.640 --> 0:01:12.040 you know, the problems in the manufacturing business just there 0:01:12.040 --> 0:01:13.880 were just too many of them over too long a 0:01:13.920 --> 0:01:17.160 period of time to say that he was as effectual, 0:01:17.240 --> 0:01:19.480 if that's a right word, as he as he should 0:01:19.480 --> 0:01:23.080 have been at bringing everything, you know, back into order. 0:01:23.800 --> 0:01:25.480 It does seem weird that it's going to take them 0:01:25.480 --> 0:01:29.040 till the end of twenty twenty four define his replacement. 0:01:29.040 --> 0:01:30.960 There's a lot of things that have to happen between 0:01:31.080 --> 0:01:33.920 now and then that the company just can't wait for. 0:01:34.400 --> 0:01:38.080 Things like the purchase of Spirit Aerosystems, which should improve 0:01:38.120 --> 0:01:41.440 reporting lines should have been improved, the stability of the 0:01:41.520 --> 0:01:45.160 you know, the production process, uh, and the quality process. 0:01:45.280 --> 0:01:46.479 That's super important. 0:01:46.880 --> 0:01:50.400 They've got the they've got to you know, serve to 0:01:50.440 --> 0:01:53.240 the FAA their view and how they're gonna they're gonna 0:01:53.320 --> 0:01:57.560 stabilize their production process. That that's coming due here too. 0:01:58.760 --> 0:02:00.640 And at the same time, right they've got to start 0:02:00.680 --> 0:02:04.480 to increase build rates so they can improve profits and 0:02:04.520 --> 0:02:05.040 cash flow. 0:02:05.120 --> 0:02:06.640 They can't wait a year on that either. 0:02:07.000 --> 0:02:08.920 So there's a lot of super important things that are 0:02:08.919 --> 0:02:11.359 happening this year to wait till the end of the 0:02:11.440 --> 0:02:13.840 year to replace the CEO that doesn't seem to have 0:02:14.280 --> 0:02:17.680 been able to get that job done well. It seems 0:02:17.680 --> 0:02:19.720 like a lengthy timeline to me, But it may just 0:02:19.800 --> 0:02:23.000 be that the board was flat footed and realizing that 0:02:23.040 --> 0:02:26.600 the CEO had to go and as nowhere in a 0:02:26.680 --> 0:02:29.160 search and so they've got to start from scratch here 0:02:29.200 --> 0:02:30.520 and figure out who the next person is. 0:02:30.840 --> 0:02:32.760 What can you tell us about Stephanie Pope, She's gonna 0:02:32.760 --> 0:02:35.280 be stepping up and taking a big role with the 0:02:35.800 --> 0:02:37.360 aircraft business. 0:02:38.160 --> 0:02:40.079 Yeah, so she's been around for a while and she's 0:02:40.120 --> 0:02:45.400 been CFO of that aircraft business. So it seems like 0:02:45.440 --> 0:02:50.160 a logical inside choice. You know, it may not be 0:02:50.240 --> 0:02:54.320 the final choice there, although it may well be. But 0:02:54.400 --> 0:02:56.799 I think when you have a you know, a head 0:02:56.800 --> 0:03:00.200 of that department, stand deal who's leaving after thirty us 0:03:00.240 --> 0:03:04.480 heres at the company, they're hard shoes to fill, and 0:03:04.520 --> 0:03:06.720 then you know, you look around internally for who could 0:03:06.720 --> 0:03:09.320 be the next person. The CFO is always in particularly 0:03:09.320 --> 0:03:11.919 decent shape because they understand at least all the financials 0:03:12.639 --> 0:03:16.200 about the business. She's also had, you know, had positions 0:03:16.200 --> 0:03:20.040 at blowing Boeing Global Services, which is a super successful 0:03:20.080 --> 0:03:23.800 business inside Boeing High teens margins. To me, the only 0:03:23.800 --> 0:03:26.560 thing I don't see in her background is that manufacturing 0:03:26.639 --> 0:03:29.400 skill set. I think the next CEO and the next 0:03:29.400 --> 0:03:32.160 head of Boeing Commercial Airplanes has to really have a 0:03:32.320 --> 0:03:37.720 manufacturing engineering mindset background, and I think that's that's what 0:03:37.880 --> 0:03:38.920 I don't quite see. 0:03:38.680 --> 0:03:41.760 There, sort of like Larry culp. 0:03:42.800 --> 0:03:45.880 No, I mean, Lowry obviously is pretty busy, and honestly, 0:03:46.280 --> 0:03:51.680 the job he has now a GE could be better, better, profits, 0:03:51.680 --> 0:03:54.760 more fun than Boeing because there's a lot of great 0:03:54.800 --> 0:03:58.000 technology inside GE and there's a huge bow wave of 0:03:58.040 --> 0:04:00.360 a lot of maintenance coming that's really high mind margin. 0:04:00.840 --> 0:04:02.360 I think you'd really have to work hard. 0:04:02.200 --> 0:04:04.200 To get like But George, I mean, does he like 0:04:04.240 --> 0:04:05.720 fun or does he like a challenge? I mean he 0:04:05.760 --> 0:04:07.080 was the one that went did GE to begin. 0:04:06.920 --> 0:04:11.160 With, Sorry you were you broke up a little bit there. 0:04:11.120 --> 0:04:13.200 Said Oh, it's saying that does he like fun or 0:04:13.200 --> 0:04:15.200 does he like a challenge because he was the one 0:04:15.240 --> 0:04:17.360 that went to GE in the first place when it 0:04:17.480 --> 0:04:18.200 was a hot mess. 0:04:18.720 --> 0:04:20.680 I do think he likes a challenge, and I think 0:04:20.720 --> 0:04:23.200 he showed his ability to navigate it really. 0:04:22.920 --> 0:04:23.839 Well at GE. 0:04:24.080 --> 0:04:26.159 But again, you know they're just kind of getting to 0:04:26.200 --> 0:04:30.400 the super fun part. I think there's still challenge inside 0:04:30.440 --> 0:04:32.680 ge but he's just getting to the point where he's 0:04:32.720 --> 0:04:34.960 got aerospace broken out and he can really make a 0:04:34.960 --> 0:04:38.600 lot of hay here. So I don't someone like him 0:04:38.680 --> 0:04:42.040 is absolutely what I think Boeing needs. I don't know, 0:04:42.040 --> 0:04:43.960 maybe he's got a you know, maybe there's a protege 0:04:44.120 --> 0:04:46.520 somewhere inside there that they could tap or something. 0:04:47.040 --> 0:04:50.680 So thinking about who could be the next CEO, here 0:04:51.320 --> 0:04:54.200 is the expectation, George, that it'll come from an external 0:04:54.200 --> 0:04:58.120 candidate or or internally And are there any early front runners? 0:04:58.160 --> 0:04:58.480 Do you think? 0:04:59.040 --> 0:04:59.280 Yeah? 0:04:59.320 --> 0:05:01.760 So, I definitely think it's going to come external, right. 0:05:01.800 --> 0:05:04.080 I just think the fact that you've seen this purge 0:05:04.080 --> 0:05:06.920 of the of the CEO, you see the purge of 0:05:07.080 --> 0:05:11.279 commercial airplane president, means that we've depleted some you know, 0:05:11.320 --> 0:05:14.760 we've depleted some talent there you look, you know, there 0:05:14.800 --> 0:05:19.160 there was you know, former heads of Boeing's commercial airplanes 0:05:20.160 --> 0:05:23.320 that had left, you know when when Muhlenberg came on, 0:05:24.200 --> 0:05:27.000 they could potentially be, you know, in the running for 0:05:27.040 --> 0:05:29.440 something like this. I know a couple of them wanted 0:05:29.480 --> 0:05:32.279 the CEO job and didn't get it, but I'm almost 0:05:32.279 --> 0:05:34.680 positive you're talking about something that's going to be outside. 0:05:34.720 --> 0:05:36.800 It's Ray Connor is the name that comes to mind. 0:05:36.880 --> 0:05:39.680 Used to be the head of Boeing Commercial. I'm not 0:05:39.720 --> 0:05:41.719 sure what he's doing now, but he might be on 0:05:41.760 --> 0:05:42.640 the list similar. 0:05:43.960 --> 0:05:46.640 What's the culture like at a Boeing in terms of 0:05:46.680 --> 0:05:47.640 getting an outsider? 0:05:49.600 --> 0:05:51.640 You know, I think Boeing is one of those companies. 0:05:51.680 --> 0:05:53.640 I think you get a job and you stick around 0:05:53.680 --> 0:05:57.400 for lots and lots of years, and so, you know, 0:05:57.600 --> 0:06:01.960 I think that bringing people in from outside is something 0:06:02.000 --> 0:06:04.800 you do only when you have a breakdown like you've 0:06:04.839 --> 0:06:08.599 had now. Right under normal circumstances, there would be very 0:06:09.080 --> 0:06:12.719 clean lines of succession inside Boeing. You know, you would 0:06:12.760 --> 0:06:15.440 move up through the ranks and expect opportunities as you 0:06:15.760 --> 0:06:18.440 as you rose. But there's been so much tumult in 0:06:18.480 --> 0:06:21.120 this business over the last I don't know, you know, 0:06:21.240 --> 0:06:24.279 four years or so, that I think that it's a 0:06:24.320 --> 0:06:26.200 time in their history where they're going they're going to 0:06:26.240 --> 0:06:29.320 be going outside a lot more to replenish some of 0:06:29.560 --> 0:06:32.400 some of these senior management ranks that they've just they've turned. 0:06:32.200 --> 0:06:34.400 Over a bunch of it and George it seems like 0:06:35.600 --> 0:06:38.280 this is no quick fix here. It seems like it 0:06:38.360 --> 0:06:41.599 was years, maybe even decades in the making in terms 0:06:41.640 --> 0:06:45.240 of maybe the deterioration of some of their quality controls. 0:06:45.279 --> 0:06:48.559 Here when you talk to in an industry folks, people 0:06:48.600 --> 0:06:51.920 at Boeing, is there a pathway to kind of get 0:06:51.920 --> 0:06:53.440 back to where they were in terms of quality? 0:06:55.000 --> 0:06:56.880 I think there is, But it's a lot of attention 0:06:56.960 --> 0:06:59.320 to detail. And like you said, it's slow work, so 0:07:00.080 --> 0:07:02.200 you can't you can't sort of wave a wand I 0:07:02.240 --> 0:07:06.719 think and make it, you know, happen overnight. Really, you know, 0:07:06.920 --> 0:07:10.440 I think has a lot to do with people and processes, right, 0:07:10.480 --> 0:07:12.720 And that's why I think you want someone like a 0:07:12.800 --> 0:07:16.560 Larry Koppe who loves people and processes. You need and 0:07:16.760 --> 0:07:18.679 I mean that just takes time. You need a lot more. 0:07:19.080 --> 0:07:22.040 You need training, you need, you need you know in 0:07:22.080 --> 0:07:24.080 the interm you probably need to beef up some of 0:07:24.120 --> 0:07:27.360 the oversight. You need to get into your supply chain. 0:07:27.400 --> 0:07:28.720 You need to give them a hug, you need to 0:07:28.760 --> 0:07:31.920 help them out, you know, help them bring you quality products. 0:07:31.960 --> 0:07:34.360 I mean, it's not a it's not a hey, how 0:07:34.400 --> 0:07:36.760 are you going to make my margins work better? In 0:07:36.800 --> 0:07:40.040 the next couple of years discussion. Right, it's really like 0:07:40.080 --> 0:07:42.840 I said, it's people and processes. It's a softer side 0:07:43.320 --> 0:07:46.280 of management. I think Boeing over the last decade or 0:07:46.280 --> 0:07:49.920 two really was more into the how do I squeeze 0:07:49.960 --> 0:07:52.360 you to get you know, you to give me products 0:07:52.360 --> 0:07:55.720 at a cheaper price so I can build my margins. 0:07:54.920 --> 0:08:00.400 There's a you know, it's what is its recipe for success? 0:08:00.400 --> 0:08:03.040 It wasn't that wasn't quite the term, but there was 0:08:03.080 --> 0:08:06.520 a term like that that Boeing was using with their suppliers. 0:08:06.600 --> 0:08:08.720 It was all about squeezing them. So the supply chain 0:08:08.800 --> 0:08:12.000 is all you know, they've been scarred, they're you know, 0:08:12.040 --> 0:08:14.760 they're they're they're worried about when Boeing comes to talk 0:08:14.800 --> 0:08:15.920 to them. And I think they need to get to 0:08:15.960 --> 0:08:18.560 a world where when Boeing shows up that they think 0:08:18.600 --> 0:08:20.240 someone's there to help them and is looking out for 0:08:20.280 --> 0:08:22.400 their best interests partnering for success. 0:08:22.400 --> 0:08:24.520 Sorry, I love that idea though. It's like you just 0:08:24.560 --> 0:08:26.920 need a hug and be like we got this guys, 0:08:27.480 --> 0:08:29.480 versus like squeezing out of the suppliers. It's just like 0:08:29.520 --> 0:08:34.520 a great visual for a manufacturing giant like Boeing George 0:08:34.520 --> 0:08:37.360 Ferguson joining us. He is Bloomberg Intelligence is senior Aerospace, 0:08:37.400 --> 0:08:41.440 Defense and airline analyst. I think that's gonna be so interesting, Like, 0:08:41.440 --> 0:08:43.199 how do you even start a search like this? 0:08:43.559 --> 0:08:46.360 Yeah, you know, I guess, as George was suggesting, you know, 0:08:46.360 --> 0:08:51.079 a couple of attributes. You need engineering expertise and manufacturing expertise. 0:08:51.120 --> 0:08:53.360 This is not a marketing story, you know, it doesn't 0:08:53.440 --> 0:08:56.160 feel like it's a strategy story that you go to 0:08:56.200 --> 0:08:58.880 like a consultant or something. It's just nuts and bolts 0:08:59.040 --> 0:09:01.400 manufacturing at the as George has told us in the past, 0:09:01.800 --> 0:09:05.400 at the highest tolerance levels you can ever imagine, making 0:09:05.440 --> 0:09:07.439 an airplane's a little bit different than making an automobile 0:09:08.120 --> 0:09:10.760 in terms of tolerances and things like that. So I 0:09:10.800 --> 0:09:13.880 would guess that there's relatively a small pool of people 0:09:14.280 --> 0:09:16.000 that kind of that kind of fifill that. 0:09:16.120 --> 0:09:18.040 So I wonder where the timing is for that, Like 0:09:18.120 --> 0:09:20.000 knowing that there's a small pool of people, Like why 0:09:20.080 --> 0:09:22.520 do this write like today but then wait for the 0:09:22.520 --> 0:09:23.079 rest of the year. 0:09:23.160 --> 0:09:25.120 I don't just get I think this it just feels 0:09:25.160 --> 0:09:27.240 like this was tied into the news we got Friday 0:09:27.280 --> 0:09:29.280 about oh, the certain members of the board are going 0:09:29.280 --> 0:09:31.200 to go on a listening tour with our big clients 0:09:31.920 --> 0:09:34.480 without the CEO. I think that it feels to me, 0:09:34.520 --> 0:09:36.480 at least some of these big airlines said, you know what, 0:09:36.480 --> 0:09:38.240 you need to make a change there at the top, 0:09:38.400 --> 0:09:40.600 and you need to see that started now. And I 0:09:40.600 --> 0:09:42.600 think they probably just kind of stooed on that over 0:09:42.640 --> 0:09:45.320 the weekend, and this is the decision we come up, 0:09:45.320 --> 0:09:46.280 so we'll stay on top of that. 0:09:47.800 --> 0:09:51.679 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:09:51.760 --> 0:09:55.240 weekdays at ten am Eastern on applecar Play and Android 0:09:55.320 --> 0:09:58.079 Auto with the Bloomberg Business app. You can also listen 0:09:58.200 --> 0:10:01.280 live on Amazon Alexa from our flagship New York station. 0:10:01.640 --> 0:10:04.719 Just say Alexa playing Bloomberg eleven thirty. 0:10:06.080 --> 0:10:08.839 Alex. I'm seeing a red headline cross to Bloomberg turmoil here. 0:10:09.000 --> 0:10:12.280 Trump bond reduced to one hundred and seventy five million 0:10:12.360 --> 0:10:15.000 dollars in New York fraud case. So I guess that's 0:10:15.040 --> 0:10:17.439 a piece of good news for the former President's a 0:10:17.480 --> 0:10:19.200 lot better than the four hundred and fifty four million 0:10:19.240 --> 0:10:19.480 he was. 0:10:19.440 --> 0:10:21.160 There and then it was one hundred and twenty percent 0:10:21.559 --> 0:10:23.640 to post. It was even more than that. He has 0:10:23.679 --> 0:10:27.560 said last week that President Trump has almost I'm quoting 0:10:27.920 --> 0:10:30.800 five hundred million dollars in cash, and that he will 0:10:30.840 --> 0:10:33.760 use a substantial amount of that to fund his campaign 0:10:34.120 --> 0:10:37.240 to return to the White House. In a court Finally, 0:10:37.360 --> 0:10:40.120 he did claim that he'd need closer to one billion 0:10:40.160 --> 0:10:42.360 dollars in reserves to cover the bond and still have 0:10:42.480 --> 0:10:45.240 enough cash on hand to run his sprawling real estate company. 0:10:45.600 --> 0:10:48.040 So I mean anything at that point three hundred million 0:10:48.040 --> 0:10:53.040 dollar reduction potentially helping him as well. Trump has said 0:10:53.080 --> 0:10:56.360 that the cash crunch had emerged after thirty insurance companies 0:10:56.360 --> 0:10:58.560 that arranged such bonds refused to take any of his 0:10:58.679 --> 0:11:02.440 properties as collateral. So the latest headline is that his 0:11:02.920 --> 0:11:05.959 bond reduced payment for President Trump now to one hundred 0:11:06.000 --> 0:11:09.079 and seventy five million dollars in that New York fraud case. 0:11:09.120 --> 0:11:12.080 Remember the overall penalty was one hundred and fifty four million, 0:11:12.280 --> 0:11:14.679 and you usually have to pay more for that bond. 0:11:14.800 --> 0:11:17.720 Yeah, So the question is does he have the cash 0:11:17.760 --> 0:11:20.080 with you know where wherewithal to make that one hundred 0:11:20.080 --> 0:11:22.360 and seventy five million dollars satisfy that seventy five hundred 0:11:22.360 --> 0:11:25.240 million bond. I guess that's the next question. But that's 0:11:25.240 --> 0:11:27.760 something I think they would have to be answered again today, right. 0:11:28.080 --> 0:11:30.319 I have no idea. This is this is why I'm 0:11:30.320 --> 0:11:33.480 not a lawyer. And also I just pointed, but he's 0:11:33.480 --> 0:11:36.120 also a sitting for one of his criminal cases too. 0:11:36.400 --> 0:11:39.720 Yes, the I guess. I see some video shots of 0:11:39.760 --> 0:11:42.600 the courthouse in Manhattan. I guess this on the hush 0:11:42.640 --> 0:11:46.839 money payments. Apparently that is also going on today down there. 0:11:46.880 --> 0:11:48.800 So again, so I guess I think on the margin, 0:11:49.040 --> 0:11:51.880 a piece of good news for the former president his 0:11:51.960 --> 0:11:54.040 bond reduced to one hundred and seventy five million dollars 0:11:54.120 --> 0:11:56.680 in the New York fraud case. So again, I guess 0:11:56.760 --> 0:11:59.679 the next steps will be just how do they How 0:11:59.679 --> 0:12:02.200 does former President Trump and his team, how do they 0:12:02.240 --> 0:12:04.040 satisfy that that bond? 0:12:04.320 --> 0:12:06.679 Do they keep fighting it? Or I think he's ten 0:12:06.760 --> 0:12:09.200 days right to deliver that money? So is there anything 0:12:09.240 --> 0:12:09.720 that's needful? 0:12:09.720 --> 0:12:11.760 Well, something was due today, I thought today was on 0:12:11.840 --> 0:12:14.199 the former bond. Maybe this is a new bond or something. 0:12:14.240 --> 0:12:16.160 Well, this is that President Trump must pay that one 0:12:16.200 --> 0:12:18.880 hundred and seventy five million dollars bond within ten days. Yes, 0:12:19.440 --> 0:12:21.120 that's the court, So it gives him some time, I 0:12:21.120 --> 0:12:22.640 think to get it together. So I wonder like where 0:12:22.720 --> 0:12:26.040 that comes from, yep, and how that winds up coming 0:12:26.080 --> 0:12:29.600 from there? You're joining us now. As Eric Clarson, Bloomberg 0:12:29.720 --> 0:12:33.559 Legal reporter, I saw him, he literally ran from his desk, 0:12:33.640 --> 0:12:35.400 So don't mind if he's a little out of breath. 0:12:36.120 --> 0:12:38.319 Were you expecting or reduced bond here? 0:12:39.480 --> 0:12:41.240 You know, I would have thought that if they were 0:12:41.240 --> 0:12:43.000 going to reduce it, they would have put it at 0:12:43.040 --> 0:12:46.440 the one hundred million dollar request that Trump had made, 0:12:46.480 --> 0:12:49.120 because he had said that that was the maximum he 0:12:49.200 --> 0:12:52.120 was able to actually arrange. So it'll be interesting to 0:12:52.160 --> 0:12:54.320 see if Trump says that he can go ahead and 0:12:55.080 --> 0:12:56.280 do this a larger one. 0:12:57.040 --> 0:12:59.840 So but if nothing else, it buys him another ten days. 0:13:00.080 --> 0:13:01.800 Are we reading that correctly? That he had had to 0:13:01.840 --> 0:13:05.720 satisfy that foreurner fifty four million dollars bond today, But 0:13:05.840 --> 0:13:07.840 now with this reduction, it kind of starts to clock again. 0:13:07.960 --> 0:13:09.520 Is that exactly? 0:13:09.559 --> 0:13:12.439 So that definitely, for now the New York Attorney General 0:13:12.840 --> 0:13:15.079 won't be trying to seize his assets, which was the 0:13:15.120 --> 0:13:16.360 big fear of starting today. 0:13:17.920 --> 0:13:20.520 So can you just wrap this in? So what was 0:13:20.559 --> 0:13:22.520 the argument, like how did they arrive at that one 0:13:22.640 --> 0:13:25.480 seventy five from the four fifty four, Like, what is 0:13:25.480 --> 0:13:28.520 a conversation around that? And is that the normal conversation 0:13:28.559 --> 0:13:30.920 we would hear from anybody who was going and trying 0:13:30.920 --> 0:13:32.440 to get the fine reduced. 0:13:32.840 --> 0:13:35.400 Well, it's a pretty unusual situation to begin with, just 0:13:35.400 --> 0:13:39.520 because normally, with damage awards of this big and bonds 0:13:39.559 --> 0:13:42.520 this big, they involve like really big fortune five hundred 0:13:42.520 --> 0:13:45.400 companies or things like that. And as Trump's lawyers argued, 0:13:45.400 --> 0:13:49.000 you know, for a privately held company, the Trump organization 0:13:49.120 --> 0:13:51.080 is huge, but not you know, as massive as some 0:13:51.120 --> 0:13:54.199 big corporations. That it was just really difficult for them 0:13:54.240 --> 0:13:56.400 to arrange a bond of this size. So it's all 0:13:56.520 --> 0:14:00.480 kind of novel. It's an unusual situation all around. I 0:14:00.559 --> 0:14:02.720 haven't had a chance to read the whole decision yet, 0:14:02.720 --> 0:14:05.040 but I think the appeals court just decided to have 0:14:05.080 --> 0:14:07.640 a little bit of mercy on him while still putting 0:14:07.679 --> 0:14:10.120 him under some pressure to arrange a bigger bond than 0:14:10.200 --> 0:14:11.360 he says he was able to. 0:14:12.280 --> 0:14:15.320 Okay, so that's that. So we have I guess ten 0:14:15.400 --> 0:14:17.440 days to get to the next chapter here. But he's 0:14:17.440 --> 0:14:20.840 still former president shub is still going to be down 0:14:20.880 --> 0:14:22.960 in a courtroom in Manhattan today, right. 0:14:22.920 --> 0:14:23.720 Right, that's correct. 0:14:23.760 --> 0:14:25.920 He has a hearing in what is probably going to 0:14:25.960 --> 0:14:28.960 be his first criminal trial. They haven't scheduled the new 0:14:29.040 --> 0:14:30.960 date for that yet. It was supposed to start today, 0:14:30.960 --> 0:14:33.520 but they delayed it because of some new evidence. So 0:14:33.600 --> 0:14:36.800 he's been in court with his lawyers this morning. His 0:14:36.920 --> 0:14:38.920 lawyers are getting grilled a bit by the judge in 0:14:38.920 --> 0:14:40.960 that case. That it'll be interesting to see what happens 0:14:41.000 --> 0:14:43.680 with that trial. They could set a new date for 0:14:43.720 --> 0:14:45.400 that today, it could be as soon as next month. 0:14:45.520 --> 0:14:46.840 And what is the argument here? 0:14:46.880 --> 0:14:46.960 Like? 0:14:47.120 --> 0:14:48.000 Which one is this one? 0:14:48.440 --> 0:14:50.880 This is the so called hush money case. He's accused 0:14:50.920 --> 0:14:54.480 of falsifying business records to conceal hush money payments to 0:14:54.520 --> 0:14:57.080 a porn star before the twenty sixteen election. 0:14:58.080 --> 0:15:01.200 And he still had such Okay, so we get this one, 0:15:01.600 --> 0:15:04.360 and there's still some other things going on right right there? 0:15:04.480 --> 0:15:06.400 I mean the January I guess that the January sixth 0:15:06.480 --> 0:15:09.600 case is that federal in Washington. And do we have 0:15:09.800 --> 0:15:11.200 any sense of timing on that? 0:15:11.560 --> 0:15:13.840 I wish, I wish I knew we still have any 0:15:13.920 --> 0:15:16.520 dates for the other three trials, not yet other three 0:15:16.560 --> 0:15:17.680 trials you gotta keep on top of me. 0:15:18.120 --> 0:15:19.680 I mean, do you like an Excel spreadsheet? 0:15:20.160 --> 0:15:20.440 Yeah? 0:15:20.480 --> 0:15:24.120 Okay, you do. Okay, he's literally not kidding. There's one 0:15:24.120 --> 0:15:27.160 more question on the on the on the bond here, 0:15:27.600 --> 0:15:30.160 What is your question now, Like, now that we know 0:15:30.200 --> 0:15:32.800 the actual number and it's in that weird spot, higher 0:15:32.880 --> 0:15:34.920 than he said he could pay, but much lower than 0:15:34.960 --> 0:15:36.280 the original what is your question? 0:15:36.520 --> 0:15:38.960 My question now is are they going to stand by 0:15:39.000 --> 0:15:41.240 what they said, which was that there was no way 0:15:41.240 --> 0:15:42.760 in the world that could get a bigger bond than 0:15:42.760 --> 0:15:46.480 one hundred million, or are they going to say okay, 0:15:46.520 --> 0:15:48.680 fine and circle back and try to see what they 0:15:48.680 --> 0:15:50.920 can do because he said that if there was anything 0:15:50.920 --> 0:15:53.240 more than one hundred million, he'd be forced to sell 0:15:53.320 --> 0:15:56.160 some assets in order to raise that extra cash because 0:15:56.200 --> 0:15:59.120 those companies that arrange bonds won't take his real estate 0:15:59.160 --> 0:15:59.800 as collateral. 0:16:00.320 --> 0:16:02.160 It's a head scratcher. Oh, I guess seventy five millions 0:16:02.200 --> 0:16:04.600 better than you know, adding on four hundred months, right, Yeah, 0:16:04.720 --> 0:16:05.520 I mean there is. 0:16:05.520 --> 0:16:07.720 That'd be a good day for the for the president today, 0:16:07.760 --> 0:16:09.760 just from how the math works. Eric, thanks so much 0:16:09.800 --> 0:16:12.880 for literally running down from your news desks. To get 0:16:13.240 --> 0:16:16.360 the latest. Here, Eric covers all the legal stuff for 0:16:16.520 --> 0:16:17.400 Bloomberg News. 0:16:19.800 --> 0:16:23.640 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:16:23.760 --> 0:16:26.400 weekdays at ten am Eastern on Affo, card Play and 0:16:26.400 --> 0:16:29.480 Android Auto with the Bloomberg Business App. Listen on demand 0:16:29.520 --> 0:16:33.200 wherever you get your podcasts, or watch us live on YouTube. 0:16:34.520 --> 0:16:37.640 On Friday, SMP posting it's best week of the year, 0:16:37.720 --> 0:16:41.240 plus last week saw the most amount of SMP fifty 0:16:41.280 --> 0:16:43.160 two week highs in nearly three years. I thought that 0:16:43.200 --> 0:16:45.200 was a really fun step, right, that's a good one. 0:16:45.520 --> 0:16:46.360 It goes to the breath of the. 0:16:46.280 --> 0:16:48.960 Market exactly, So it's not just about tech, and we'll 0:16:49.000 --> 0:16:50.360 kind of see you this play out as well as 0:16:50.400 --> 0:16:52.520 tech comes under attack in Europe as well as the 0:16:52.600 --> 0:16:54.640 chips in China. So joining us sound to discuss is 0:16:54.680 --> 0:16:58.240 Katerina Simonetti, a Senior vice president Private wealth advisor over 0:16:58.280 --> 0:17:01.640 at Morgan Stanley Private Wealth Management. Keterina, are we going 0:17:01.680 --> 0:17:05.080 to expect the same kind of momentum within the S 0:17:05.119 --> 0:17:07.399 and P and the overall US DOC market next quarter? 0:17:08.880 --> 0:17:11.119 Alex, thank you for having me on the show. You 0:17:11.119 --> 0:17:13.359 know what, an incredible start of the year, but really 0:17:13.520 --> 0:17:18.960 first three months in and now is already approaching forty thousand. 0:17:20.080 --> 0:17:22.440 You know, at least we're you know, seemingly a few 0:17:22.480 --> 0:17:25.960 training sessions away, and the real question is going to 0:17:26.000 --> 0:17:29.480 be are these price levels of equities are going to 0:17:29.520 --> 0:17:32.760 be supported by earnings? You know, we're about to approach 0:17:33.080 --> 0:17:36.439 this you know, quiet time, which usually what happens. The 0:17:36.520 --> 0:17:40.160 bit of an information vacuum is something that we see 0:17:40.200 --> 0:17:43.760 between the earning sessions. But when we come back with 0:17:43.920 --> 0:17:46.800 new earning session in mid April, you know, the question 0:17:46.960 --> 0:17:52.560 really for the the the that pricing, that that tailwind 0:17:52.720 --> 0:17:55.920 for the prices and equities to continue going higher will 0:17:55.960 --> 0:17:59.040 be all up to earnings and we're priced to perfection. Now, 0:17:59.240 --> 0:18:02.840 the question is, you know, what can we expect going forward? 0:18:03.119 --> 0:18:03.199 So? 0:18:03.320 --> 0:18:05.879 How how do you feel about valuation in this market? 0:18:05.880 --> 0:18:06.159 Are you? 0:18:06.520 --> 0:18:08.800 A lot of some folks are saying, hey, if you 0:18:08.800 --> 0:18:11.760 strip out some of those magnificent four, five, six, whateverever 0:18:11.760 --> 0:18:14.520 the name names are today, you pull those out, the 0:18:14.560 --> 0:18:18.320 market's you know that valuation seems okay? Do you do 0:18:18.440 --> 0:18:19.879 that or how do you think of that valuation? 0:18:20.960 --> 0:18:23.920 Well, the biggest question that we get from our clients 0:18:24.160 --> 0:18:26.520 is when is it the good time to take the 0:18:26.560 --> 0:18:29.000 profits of the table. When is the good time, you know, 0:18:29.080 --> 0:18:31.600 to really realize some of these earnings. And it's a 0:18:31.640 --> 0:18:35.000 really difficult question to answer because we can never effectively 0:18:35.040 --> 0:18:37.399 pull either the top or the bottom of the market. 0:18:37.600 --> 0:18:40.320