WEBVTT - CES, Boeing, and Bitcoin 0:00:00.120 --> 0:00:04.360 Bloomberg is now on your dashboard with Apple CarPlay and 0:00:04.360 --> 0:00:08.160 Android Auto. It gives you access to every Bloomberg podcast, 0:00:08.280 --> 0:00:11.560 live audio feeds from Bloomberg Radio, print stories from Bloomberg 0:00:11.640 --> 0:00:14.920 News in audio form, and the latest headlines of the 0:00:14.920 --> 0:00:18.640 click of a button with Bloomberg News. Now it's free 0:00:18.680 --> 0:00:21.439 with the latest version of the Bloomberg Business App. That's 0:00:21.680 --> 0:00:24.400 the Bloomberg Business App. Get it on your phone in 0:00:24.440 --> 0:00:27.760 the Apple App Store or on Google Play. Just download 0:00:27.800 --> 0:00:30.560 the app, connect your phone to your car and get started. 0:00:30.960 --> 0:00:34.400 And it's all presented by our sponsor, Interactive Brokers. 0:00:35.400 --> 0:00:38.600 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 0:00:38.640 --> 0:00:39.720 my co host Matt Miller. 0:00:40.200 --> 0:00:44.279 Every business day we bring you interviews from CEOs, market pros, 0:00:44.320 --> 0:00:48.160 and Bloomberg experts, along with essential market movin news. 0:00:48.720 --> 0:00:51.839 Find the Bloomberg Markets podcast called Apple Podcasts or wherever 0:00:51.960 --> 0:00:55.080 you listen to podcasts, and at Bloomberg dot com slash podcast. 0:00:55.240 --> 0:00:58.000 All right, let's get out to Vegas to the Craps Table, Bellagio, 0:00:58.640 --> 0:01:00.600 the high Rollers Craft Table, which is where I tend 0:01:00.600 --> 0:01:05.600 to sit. Ed Ludlow's out there ostensibly at the CES 0:01:05.720 --> 0:01:07.960 Converence the Consumer Electronics Show. Wheres I like to call 0:01:08.000 --> 0:01:11.920 it the auto show with some gadgets around it. Edward, 0:01:12.600 --> 0:01:16.319 what's the buzz out there in Vegas this year? Is 0:01:16.360 --> 0:01:19.640 it pretty much AI driven across the board? 0:01:21.920 --> 0:01:22.160 Yeah. 0:01:22.280 --> 0:01:24.440 I put a newsletter or a column out this morning 0:01:24.560 --> 0:01:27.880 saying it's AI everywhere, and not necessarily in the ways 0:01:27.920 --> 0:01:30.240 you'd expect, just almost like you just said, there is 0:01:30.280 --> 0:01:32.840 a heavy automotive presence here, and we can get into that. 0:01:33.000 --> 0:01:35.240 But I think there are two kind of key things 0:01:35.280 --> 0:01:38.399 you're seeing. This kind of abstract conversation around AI and 0:01:38.440 --> 0:01:42.600 particularly generative AI, translate into real world things. So, for example, 0:01:42.680 --> 0:01:45.960 I spent the afternoon yesterday with Walmart, and if you 0:01:46.000 --> 0:01:48.240 are an iOS user, you have an iPhone, you bring 0:01:48.320 --> 0:01:50.800 up your Walmart app. You no longer have to search 0:01:50.920 --> 0:01:55.600 for hot dog buns or beer specifically by brand. What 0:01:55.640 --> 0:01:57.720 you can do is go into their generative AI tool 0:01:57.880 --> 0:02:02.080 and say I am hosting a Super Bowl weekend party, 0:02:02.520 --> 0:02:05.120 what should I buy? And it will list a complete 0:02:05.120 --> 0:02:07.720 shopping cart for you, ready to go. Then you have 0:02:07.720 --> 0:02:09.040 the option to click it. So that's kind of a 0:02:09.080 --> 0:02:12.800 real world manifestation of AI. I know what, who needs that? Actually? 0:02:12.800 --> 0:02:15.560 It works really well for the demo, like the Englishman 0:02:16.120 --> 0:02:20.120 the English DA hosting the Super Bowl party. 0:02:21.960 --> 0:02:24.160 Guys, as you know, I am a fair Weather forty 0:02:24.240 --> 0:02:29.600 nine have no interest, but it's an interesting experiment to do. 0:02:30.040 --> 0:02:31.880 The Other side of it as well, is that there 0:02:31.880 --> 0:02:35.799 are dozens of pieces of consumer devices or hardware where 0:02:35.840 --> 0:02:38.120 the selling point is AI and that looks different in 0:02:38.160 --> 0:02:39.079 different ways. 0:02:39.400 --> 0:02:42.160 Making it easier for us a shop and spend money. 0:02:43.560 --> 0:02:47.519 And so Paul had mentioned about how there's more car 0:02:47.560 --> 0:02:50.239 companies there. Car is a big thing. We spoke yesterday 0:02:50.240 --> 0:02:53.480 about this Goodyear tire that was released. If you could 0:02:53.480 --> 0:02:55.359 tell us a little bit more about this, because I 0:02:55.360 --> 0:02:58.640 hadn't even realized that that EVS really we're and tearing 0:02:58.639 --> 0:02:59.680 those tires a lot faster. 0:03:02.040 --> 0:03:02.280 Yeah. 0:03:02.280 --> 0:03:04.800 Something that happened just before the pandemic is that the 0:03:04.880 --> 0:03:07.880 kind of classic car shows think about the Detroit Auto 0:03:08.000 --> 0:03:10.720 Show or the munich Auto Show had kind of lost 0:03:10.720 --> 0:03:14.120 their shine, and you saw companies choose Ces to be 0:03:14.200 --> 0:03:17.600 the place that they unveiled their EVS four years later. 0:03:17.680 --> 0:03:21.160 That's not necessarily true. Honda did unveil its next generation 0:03:21.560 --> 0:03:25.560 EVS here, and Honda's important right. Many Americans driver Honda 0:03:25.600 --> 0:03:27.680 but when I spoke to the CEO about the plan, 0:03:27.840 --> 0:03:29.960 he basically told me we don't really have a plan. 0:03:30.280 --> 0:03:32.840 We just know that sometime in twenty twenty six, this 0:03:32.960 --> 0:03:35.839 ev concept we've shown you just now may or may 0:03:35.840 --> 0:03:38.880 not appear on US roads, which didn't fill me of confidence. 0:03:39.840 --> 0:03:42.280 And then away from that, it's all about automotive tech, 0:03:42.560 --> 0:03:46.560 think about advanced driver assistance, driving safety, the experience in 0:03:46.600 --> 0:03:49.320 the cockpit. Mercedes were on the show with me yesterday 0:03:49.560 --> 0:03:53.320 and they've brought a virtual assistant into the Mercedes cockpit 0:03:53.680 --> 0:03:56.480 where you literally say to Missilla, I'm driving home. Hey, Mercedes, 0:03:56.800 --> 0:04:00.280 I need to shop. Go to Walmart, put some stuff 0:04:00.280 --> 0:04:03.000 in my basket. By the way, there are other retailers 0:04:03.040 --> 0:04:04.640 and big boxes available other than the Walmart. 0:04:04.640 --> 0:04:07.000 That was just one example, right, So, Ed, I mean, 0:04:07.000 --> 0:04:08.840 it's just I know, I can see from the background 0:04:08.840 --> 0:04:12.560 you're in the exhibit hall here, what's the traffic been 0:04:12.680 --> 0:04:14.920 like there? And kind of what's the makeup of the crowd, 0:04:14.920 --> 0:04:17.840 because when I went, I was surprised at how global 0:04:18.480 --> 0:04:20.800 the attendance really is it this week of people from 0:04:20.839 --> 0:04:21.920 everywhere come to Vegas. 0:04:24.080 --> 0:04:27.320 Yeah, the data gives us a good read on post pandemic, 0:04:27.440 --> 0:04:30.360 business travel, and some insight into the economy. Right there 0:04:30.360 --> 0:04:32.760 are one hundred and thirty thousand, one to three zero 0:04:33.200 --> 0:04:36.880 attendees expected for this year's CEES. That's up from about 0:04:36.880 --> 0:04:39.960 one hundred and fifteen thousand last year, but it's still 0:04:40.000 --> 0:04:43.800 significantly below pre pandemic levels in terms of footfall and attendance. 0:04:44.279 --> 0:04:47.400 The international angle is interesting. One third of all attendees 0:04:47.400 --> 0:04:51.480 this year have come from overseas, and you know, just anecdotally, 0:04:51.560 --> 0:04:54.640 when you fly into to the airport, when you're waiting 0:04:54.680 --> 0:04:57.279 for a taxi, when you are in the casinos, there 0:04:57.320 --> 0:05:00.000 is a real sense that actually there is strong attendance 0:05:00.240 --> 0:05:03.600 this year, strong spend, and that that business travel component 0:05:03.720 --> 0:05:06.240 is back. And when I speak to sources, the reason why, 0:05:06.279 --> 0:05:09.600 it's very clear it's speed dating. And I mean that seriously. 0:05:09.880 --> 0:05:12.200 If you are the CEO of a big company, or 0:05:12.240 --> 0:05:14.680 you are trying to meet with the CEO of a company, 0:05:14.880 --> 0:05:18.000 everyone's in one place for just two days. Get it done. 0:05:18.080 --> 0:05:21.479 That's a great point. And what's the sense of you know, 0:05:21.520 --> 0:05:22.800 one of the things I think a lot of people 0:05:22.839 --> 0:05:24.960 are trying to get a hold of, particularly investors, is 0:05:25.400 --> 0:05:28.920 you know, this AI is such a new growth driver 0:05:29.000 --> 0:05:31.680 for technology. How much of it is incremental spending? Do 0:05:31.720 --> 0:05:34.160 you think, I mean, do you hear companies saying we're 0:05:34.200 --> 0:05:37.800 amping up our tech spending because of AI or is 0:05:37.839 --> 0:05:40.440 it kind of replacing other tech spending? You get any 0:05:40.480 --> 0:05:41.960 sense from the companies out. 0:05:41.800 --> 0:05:47.800 There, Yeah, it's definitely a case of prioritizing rather than 0:05:47.839 --> 0:05:50.599 increasing overall spend. You know, we've seen this particularly on 0:05:50.680 --> 0:05:54.159 cloud spend right where a number of companies will say, okay, 0:05:54.200 --> 0:05:57.160 we have to be involved in AI, so we're adjusting 0:05:57.200 --> 0:06:00.880 the proportion that we're spending on a compute power versus 0:06:01.000 --> 0:06:05.080 data storage for example. There is really interesting ways that 0:06:05.120 --> 0:06:07.160 it manifests itself. Bear with me on this one. I 0:06:07.200 --> 0:06:11.640 spoke to Lorreal CEO Nicola Himus and they have a 0:06:11.680 --> 0:06:16.760 new device, the devices in beauty stores. It registers a 0:06:16.880 --> 0:06:20.479 reading of your skin. And that sounds abstract and silly, 0:06:20.520 --> 0:06:23.000 but the reason that AI is important that they've invested 0:06:23.040 --> 0:06:25.120 in it. They're saying that if you're a human in 0:06:25.160 --> 0:06:27.080 one in a store that's buying a loreal products and 0:06:27.120 --> 0:06:29.080 you go up to the counter and speak to another human, 0:06:29.440 --> 0:06:32.320 there is a nine percent chance that that sales rep 0:06:32.360 --> 0:06:36.000 converts the sale. If you use this AI powered machine. 0:06:36.120 --> 0:06:39.359 Lorel thinks that this chance of a sale increases to 0:06:39.440 --> 0:06:42.200 seventy three percent. Wow, because the AI can give you 0:06:42.240 --> 0:06:47.000 such a convincing read on your face and suggests products 0:06:47.000 --> 0:06:50.440 directly relevant to you. So there is evidence that there's 0:06:50.520 --> 0:06:53.480 kind of very focus spend on how AI can convert 0:06:53.520 --> 0:06:55.679 sales opportunities and boost margins. 0:06:55.920 --> 0:06:58.440 You know, I have to agree with that because if 0:06:58.480 --> 0:07:00.120 I went to a computer and it told me, I've 0:07:00.160 --> 0:07:02.360 had a lot of people in the you know, a 0:07:02.400 --> 0:07:04.800 beauty story that have told me the wrong shade. 0:07:04.480 --> 0:07:06.599 For my face, and I'm out of there looking like 0:07:06.600 --> 0:07:07.080 an orange. 0:07:07.120 --> 0:07:08.240 And and if the. 0:07:08.240 --> 0:07:09.800 Computer told me, I think I might believe it a 0:07:09.840 --> 0:07:13.440 little bit better. Ed wanted to quickly TikTok. A lot 0:07:13.520 --> 0:07:16.240 of companies teaming up with them. Now we're hearing Google 0:07:16.400 --> 0:07:18.920 is doing it to stream those videos from your phone 0:07:19.160 --> 0:07:19.880 to TVs. 0:07:22.200 --> 0:07:25.040 Yeah, so broadly, Google's whole Cees thing was the ability 0:07:25.080 --> 0:07:27.320 to take content from the cell phone stream it to 0:07:27.360 --> 0:07:29.720 the TV. They're taking on Apple's airplane in that respect. 0:07:30.040 --> 0:07:32.520 But the TikTok tie up, God, that's a tongue twister 0:07:33.360 --> 0:07:35.440 is an interesting one because this time a year ago, 0:07:35.920 --> 0:07:39.280 we were lamenting the fate of TikTok in this country, 0:07:39.600 --> 0:07:43.520 that it was going to face seriously regulatory and government scrutiny. 0:07:43.840 --> 0:07:45.400 Now in the space of a week, it has a 0:07:45.480 --> 0:07:47.600 deal with Peloton, and it has a deal with Google 0:07:47.920 --> 0:07:52.880 to amplify the distribution of their content and also TikTok's content, 0:07:53.160 --> 0:07:55.080 And it just shows there's a bit of traction going here. 0:07:55.080 --> 0:07:57.640 And remember, you know, there are a lot of users 0:07:57.640 --> 0:08:00.280 of TikTok in this country who don't necessarily already have 0:08:00.320 --> 0:08:03.280 any interest in that regulatory scrutiny that we reported so 0:08:03.360 --> 0:08:04.160 much on last year. 0:08:04.520 --> 0:08:07.440 Hey, thanks so much for joining us. Great color as always, 0:08:07.680 --> 0:08:10.320 from the floor of the Consumer Electronics Show out in 0:08:10.600 --> 0:08:14.120 Las Vegas, and Ed was just reporting, Boy, everybody is 0:08:14.160 --> 0:08:16.560 out there, not just tech companies, but pretty much every 0:08:16.640 --> 0:08:19.920 CEO is out there because technology impacts their companies one 0:08:19.960 --> 0:08:21.280 way or the other, and they need to be out there. 0:08:21.360 --> 0:08:24.720 Ed Ludlow, he's the host of Bloomberg Technology, is reporting 0:08:25.360 --> 0:08:28.840 live from the event space, the Event Haul out there 0:08:28.880 --> 0:08:30.600 in Las Vegas. 0:08:31.600 --> 0:08:34.960 You're listening to the team Ken's are live program Bloomberg 0:08:35.080 --> 0:08:37.359 Markets weekdays at ten am Eastern. 0:08:37.120 --> 0:08:38.440 On Bloomberg dot Com. 0:08:38.520 --> 0:08:41.640 The iHeartRadio app and the Bloomberg Business app, or listen 0:08:41.720 --> 0:08:43.840 on demand wherever you get your podcasts. 0:08:45.960 --> 0:08:48.680 All right, let's talk about Boeing here. This is really interesting. 0:08:48.760 --> 0:08:51.080 I mean, I love this company because I just to me, 0:08:51.559 --> 0:08:56.000 it's always seemed like a real symbol of American engineering 0:08:56.520 --> 0:09:00.520 ingenuity leadership. You think about the amazing fist they have 0:09:00.559 --> 0:09:04.120 out there in Seattle, when you're driving on the highway 0:09:04.200 --> 0:09:06.560 from the SeaTac Airport into Seattle, you just kind of 0:09:06.559 --> 0:09:09.680 pass it by. It's just mile after mile after mile 0:09:09.760 --> 0:09:12.120 of their facilities there and jets all over the place. 0:09:12.440 --> 0:09:14.679 Just amazing. But boy, they've had some real challenges over 0:09:14.679 --> 0:09:17.360 the last really three four five years, and the latest 0:09:17.360 --> 0:09:20.960 being with this seven three seven max jet with a 0:09:21.040 --> 0:09:24.199 side blowing out. George Ferguson, he's the senior Airspace Airline 0:09:24.240 --> 0:09:28.480 analyst for Bloomberg Intelligence. He follows this company very very closely. George, 0:09:28.480 --> 0:09:31.400 what are we hearing from the company today about where 0:09:31.440 --> 0:09:34.200 they are in terms of I guess kind of getting 0:09:34.200 --> 0:09:37.160 these birds back in the air here and maybe you 0:09:37.160 --> 0:09:40.160 know kind of what they're thinking is about what happened. 0:09:41.400 --> 0:09:44.280 So I think we're still waiting to hear from the 0:09:44.360 --> 0:09:49.120 regulator from the FAA an agreement on the inspection plan 0:09:49.200 --> 0:09:53.880 to get the airplanes back back into the air. It's 0:09:53.920 --> 0:09:57.200 a fast moving story, so I don't know that I 0:09:57.240 --> 0:09:58.880 may have missed something in the last couple of minutes, 0:09:58.880 --> 0:10:01.920 but I still don't think we've agreed on an inspection 0:10:02.040 --> 0:10:02.559 plan yet. 0:10:02.600 --> 0:10:03.880 And yesterday, what I. 0:10:03.880 --> 0:10:06.160 Think we heard was it was at all hands meeting, 0:10:07.160 --> 0:10:10.960 you know, we're CEO, Calhun told the employees that, you know, 0:10:10.960 --> 0:10:12.600 they had to sort of own up to their mistakes, 0:10:12.600 --> 0:10:15.720 I guess was what he kind of said. So sounded 0:10:15.760 --> 0:10:19.360 a little bit controit there, but I think that's the 0:10:19.440 --> 0:10:21.960 latest for us. The biggest issue is, well, this spread 0:10:22.000 --> 0:10:25.559 past the seven thirty seven Max nine. If it goes 0:10:25.600 --> 0:10:29.200 and you know, we end up having to park the 0:10:29.240 --> 0:10:32.240 Max eight fleet, that would be a major issue. Right now, 0:10:32.240 --> 0:10:35.440 we don't see that happening. It looks like it's not 0:10:35.720 --> 0:10:39.400 going to interrupt deliveries I think for twenty twenty four 0:10:39.800 --> 0:10:41.560 in the form it is right now, And that's what 0:10:42.320 --> 0:10:44.720 we're watching very closely too, right because if that impacts 0:10:44.920 --> 0:10:47.360 the potential for deliveries, well, if this started to knock 0:10:47.400 --> 0:10:51.120 those down and that changes cash flow, you know, income 0:10:51.679 --> 0:10:54.520 all those all those great audieens that we focus on in. 0:10:54.400 --> 0:10:58.160 The markets, now, George, yesterday we heard from CEO Dave Calhoun. 0:10:58.240 --> 0:11:00.840 He was basically kind of fighting back tears. He was 0:11:00.920 --> 0:11:04.120 kind of owning up to the company's shortcomings. What was 0:11:04.200 --> 0:11:07.120 the reaction to that, What did people think about his reaction? 0:11:07.200 --> 0:11:10.160 And also we haven't heard from the supplier much as well. 0:11:11.840 --> 0:11:14.480 Yeah, I mean the I guess from the supplier. 0:11:14.640 --> 0:11:15.520 This player put. 0:11:15.320 --> 0:11:19.760 Out a press release. I think it was Monday morning. Well, 0:11:20.320 --> 0:11:22.160 you know, Spirit air Systems, the supplier. 0:11:22.760 --> 0:11:25.360 We're not sure that it necessarily happened. It's Spirit Air Systems. 0:11:25.559 --> 0:11:28.319 They do make the fuselage to we do believe they 0:11:28.320 --> 0:11:30.880 put the plug in there, but Boeing may take the 0:11:30.920 --> 0:11:34.680 plug out to load the airplane. So but they seem 0:11:34.720 --> 0:11:37.240 to be much slower in doing much of anything and 0:11:37.320 --> 0:11:39.360 letting Boeing take the lead. I think that's probably fair. 0:11:39.600 --> 0:11:45.920 It's Boeing's airplane, and I think it was interesting to see. Yeah, yeah, 0:11:47.000 --> 0:11:49.440 it's a whole issue. But I think you know, at 0:11:49.480 --> 0:11:52.520 the end of the day, everybody's trying still trying to 0:11:52.520 --> 0:11:56.000 figure out where the problem is, how far it reaches, 0:11:56.280 --> 0:11:59.120 and you know, what the what the financial what the 0:11:59.160 --> 0:12:01.800 travel impact. So there wasn't a lot new in that, 0:12:02.040 --> 0:12:05.000 just that it seemed like maybe he was indicating that 0:12:05.080 --> 0:12:07.479 it was going to be Boeing's fault or Boeing supplier's 0:12:07.480 --> 0:12:08.160 fault at the end. 0:12:08.800 --> 0:12:10.760 So at the end of the day, George, this is 0:12:10.840 --> 0:12:13.400 I mean Boeing's did the name that that's on the 0:12:13.400 --> 0:12:16.520 plane here? I mean, what's the feeling within the aerospace 0:12:16.760 --> 0:12:18.640 circles that you travel in, Georgie? I mean, and no, 0:12:18.720 --> 0:12:21.080 you go to all the air shows, you talk to 0:12:21.120 --> 0:12:25.160 all these buyers, the folks that lease these planes. Does 0:12:25.200 --> 0:12:30.520 Bowling have a real fundamental engineering slash manufacturing problem? Do 0:12:30.559 --> 0:12:30.880 you think? 0:12:32.520 --> 0:12:36.000 I think that sense is in the aerospace circles that 0:12:36.080 --> 0:12:40.720 there is a fundamental problem, you know. In this case, 0:12:40.840 --> 0:12:43.200 I would say it's not so much engineering, right, engineering 0:12:43.240 --> 0:12:47.040 was really around the mcast system. In this case, it's 0:12:47.040 --> 0:12:49.959 a fundamental manufacturing problem. But I mean, those are the 0:12:49.960 --> 0:12:52.240 two most important things they do every day, right They 0:12:52.559 --> 0:12:56.439 engineer aircraft and then they build them and send them 0:12:56.440 --> 0:13:00.360 out into the fleet. But definitely we've had a number 0:13:00.400 --> 0:13:04.640 of problems in the manufacturing process, either at suppliers like Spirit, 0:13:05.960 --> 0:13:07.880 you know, or even up at Boeing we had these 0:13:08.000 --> 0:13:11.360 we had bolts loose on the back of rudders of 0:13:11.720 --> 0:13:14.720 aircraft that came out in the news over the over 0:13:14.760 --> 0:13:18.440 the holidays. It really feels like the stability isn't there 0:13:18.559 --> 0:13:21.439 in the in the build process, and it's something that 0:13:21.520 --> 0:13:24.360 going really needs to get you know it. Really it's 0:13:24.600 --> 0:13:27.160 it's arms around quickly. I mean, I thought they would 0:13:27.200 --> 0:13:30.600 have felt this way midyear last year. Right everyone talking 0:13:30.679 --> 0:13:34.120 supply chain, you'd think they've been digging into spirit air systems, 0:13:34.400 --> 0:13:37.240 digging into all their suppliers to make sure there's stability there. 0:13:37.559 --> 0:13:40.720 It's a very, very challenging process. There are lots of suppliers, 0:13:40.760 --> 0:13:43.080 there are lots of parts that get put together to 0:13:43.080 --> 0:13:46.280 make an airplane. But I think this just just re 0:13:46.440 --> 0:13:49.520 emphasizes the fact that they really have to dig into 0:13:49.520 --> 0:13:52.920 their supply chain and their suppliers and make sure they 0:13:52.920 --> 0:13:55.840 have stability in this manufacturing process if they need this, 0:13:56.000 --> 0:13:58.680 if they want this recovery to continue in the in 0:13:58.679 --> 0:13:59.599 the companies. 0:13:59.320 --> 0:14:00.520 Delivers so joy. 0:14:00.559 --> 0:14:03.080 We've been hearing about this every day, we're hearing some 0:14:03.120 --> 0:14:05.719 more information about it. What is all this bode for 0:14:06.320 --> 0:14:08.719 Boeing's earnings? I mean, how are they doing before and 0:14:09.120 --> 0:14:10.080 how do you expect them to be? 0:14:11.559 --> 0:14:15.400 Yeah, so you know, we were not ready to take 0:14:15.480 --> 0:14:18.199 down the number of deliveries we think they can make 0:14:18.240 --> 0:14:22.240 in twenty twenty four based on what we've seen so far. Again, 0:14:22.360 --> 0:14:25.840 I think if we saw the grounding stretch to the 0:14:25.960 --> 0:14:29.880 max eight that would be very, very concerning. Then I 0:14:29.880 --> 0:14:32.720 think we'd start to think about, you know, what the 0:14:32.760 --> 0:14:35.080 real potential was to get all those deliveries out the door. 0:14:36.160 --> 0:14:38.320 But right now it. 0:14:38.240 --> 0:14:40.040 Does seem to be contained to this fleet of two 0:14:40.080 --> 0:14:41.400 hundred and fifteen airplanes. 0:14:42.280 --> 0:14:43.360 We've heard a couple of. 0:14:43.440 --> 0:14:46.120 Instances where there are other loose bolts, but we haven't 0:14:46.160 --> 0:14:50.800 heard it's absolutely widespread. And the inspection that they need 0:14:50.800 --> 0:14:52.120 to do the last we heard on it was a 0:14:52.160 --> 0:14:56.360 four to eight hour inspection. That's not horrible, something that 0:14:56.400 --> 0:14:58.760 ought to be able to be done in a couple 0:14:58.800 --> 0:15:00.800 of months to get the rest of the fleet again. 0:15:00.800 --> 0:15:03.200 If it stretches from that, everyone will have to take 0:15:03.200 --> 0:15:05.680 out their pencils again and think about what delivers will 0:15:05.720 --> 0:15:08.080 be and that's going to knock down cash flows and 0:15:08.200 --> 0:15:10.360 that's going to knock down profitability and Boeing. If we've 0:15:10.360 --> 0:15:11.120 got to knock it down. 0:15:11.360 --> 0:15:15.080 George, what is our concern here among investors and just 0:15:15.080 --> 0:15:19.600 observers that the federal government, Congress from a regulatory perspective, 0:15:19.640 --> 0:15:21.880 might take a look at Boeing and put it Boeing 0:15:21.880 --> 0:15:22.720 in its sites here. 0:15:23.720 --> 0:15:27.440 I mean Boeings. Sorry, Congress has done at once already. 0:15:27.760 --> 0:15:31.040 They are they are the national aerospace champion. And if 0:15:31.040 --> 0:15:34.080 something is amiss at Boeing, I think it does not 0:15:34.480 --> 0:15:37.160 bode well for America. So I wouldn't be surprised to 0:15:37.160 --> 0:15:39.800 see Congress digging and they take a little bit of time. 0:15:41.120 --> 0:15:42.640 There's even I think even some concern. 0:15:42.720 --> 0:15:45.320 You know, the FAA has had its challenges, it's been 0:15:45.360 --> 0:15:49.560 short staffed, it's had turnover issues, and they've you know, 0:15:49.600 --> 0:15:52.240 they've been maybe a little more intense on some of 0:15:52.280 --> 0:15:54.520 these issues that I guess that's a good thing when 0:15:54.520 --> 0:15:55.840 it comes It's definitely a good thing when it comes 0:15:55.840 --> 0:15:56.400 to safety. 0:15:57.560 --> 0:15:57.800 You know. 0:15:58.400 --> 0:16:01.760 Right now they seem to be I imagine the right way 0:16:01.800 --> 0:16:04.040 to put this is they'll take this as far as 0:16:04.040 --> 0:16:07.280 they think they need to do to preserve their reputation, 0:16:07.440 --> 0:16:10.400 which got mighty to mcass, which maybe you know, which 0:16:10.440 --> 0:16:12.880 may be even further given that. 0:16:12.920 --> 0:16:16.440 History and George yesterday, the chief safety officer. He was 0:16:16.560 --> 0:16:20.800 right alongside the CEO talk about a pressure position. I 0:16:20.800 --> 0:16:24.640 mean his position was created after those two fatal crashes 0:16:24.640 --> 0:16:27.160 about five years ago. So what do you think, what's 0:16:27.160 --> 0:16:28.880 his thought process? What's going through his mind? 0:16:28.880 --> 0:16:29.120 Now? 0:16:31.120 --> 0:16:36.040 You know, I think the supply chain is it's like 0:16:36.080 --> 0:16:39.440 an octopus, and that's got to be the hardest job 0:16:39.560 --> 0:16:43.560 inside inside going right, or inside any company, especially Boeing. 0:16:43.880 --> 0:16:45.800 And I'm sure he's not getting a lot of sleep 0:16:45.840 --> 0:16:48.880 at night thinking about all the different things that can 0:16:48.920 --> 0:16:51.560 go wrong. It's it's like lack of mole, right, And 0:16:51.600 --> 0:16:53.400 my sense is that's what they've been doing. They've been 0:16:53.440 --> 0:16:56.840 finding problems fixing them. And as they do at the 0:16:56.960 --> 0:16:58.760 look they look to the right and there's another one 0:16:58.880 --> 0:17:02.320 rising up that they've got a man, it would be 0:17:02.400 --> 0:17:05.080 nice if they got some stability inside these workforces, you 0:17:05.119 --> 0:17:08.600 know that. I think the turnovers getting better. The longer 0:17:08.640 --> 0:17:11.480 you keep that better turnover, the longer folks are on 0:17:11.520 --> 0:17:15.560 the line getting trained doing the job. You know, numbers 0:17:15.560 --> 0:17:19.120 of repetitions, the better it's going to get. But right now, 0:17:19.119 --> 0:17:21.480 it just looks it looks pretty pretty rough, right, That's 0:17:21.480 --> 0:17:22.359 a really hard job. 0:17:22.520 --> 0:17:24.600 All right, George, thanks so much for joining us. We 0:17:24.600 --> 0:17:28.000 always appreciate getting your insight here on all things aerospace airlines. 0:17:28.000 --> 0:17:30.760 At George Ferguson, he covers the aerospace and airlines industry 0:17:30.760 --> 0:17:33.040 for Bloomberg Intelligence decades of experience. 0:17:33.320 --> 0:17:36.400 You're listening to the tape Can's are live program Bloomberg 0:17:36.480 --> 0:17:40.359 Markets weekdays at ten am Eastern on Bloomberg Radio, tune 0:17:40.400 --> 0:17:42.080 in app Bloomberg dot Com and. 0:17:42.040 --> 0:17:43.359 The Bloomberg Business App. 0:17:43.400 --> 0:17:46.199 You can also listen live on Amazon Alexa from our 0:17:46.240 --> 0:17:52.240 flagship New York station. Just say Alexa play Bloomberg eleven thirty. 0:17:52.840 --> 0:17:55.679 So we're trying to show plan sees out in Vegas. 0:17:55.720 --> 0:17:59.080 One hundred and thirty thousand tech geeks get together out 0:17:59.119 --> 0:18:00.840 in Vegas and look at all the new gadgets and 0:18:00.840 --> 0:18:03.320 stuff like that. I've actually done it many, many times. 0:18:03.400 --> 0:18:05.639 It's a lot of fun out there. Boy, there's crowded. 0:18:05.680 --> 0:18:08.240 You got to wait long lines to get taxi. 0:18:08.359 --> 0:18:09.960 Do you go for the tech or for Vegas? 0:18:10.119 --> 0:18:12.720 I'm both, Let's be honest. You know, I go to 0:18:12.720 --> 0:18:14.879 the crafts table Blagie and they know exactly where to 0:18:14.920 --> 0:18:17.159 find me if you're looking for me. We got some 0:18:17.200 --> 0:18:19.880 smart people out there. Mark Davis, Mark Douglas, I'm sorry, 0:18:19.920 --> 0:18:22.520 the CEO of Mountain. We've talked to him a lot 0:18:22.560 --> 0:18:25.160 about the digital advertising space. He's joins us here along 0:18:25.160 --> 0:18:28.440 with Mark Penn, a president at Stagwell and a former 0:18:28.480 --> 0:18:31.520 chief strategy officer at Microsoft. Gentlemen, thanks so much for 0:18:31.960 --> 0:18:35.480 joining us from Vegas. Looks like a pretty staid place 0:18:35.520 --> 0:18:37.360 where you guys are, not typically where you would find 0:18:37.359 --> 0:18:40.439 me if we were doing a live remote. Guys, I 0:18:40.440 --> 0:18:43.040 know you guys kind of have a partnership that you 0:18:43.440 --> 0:18:45.680 recently announced. Talked to us about that. 0:18:47.680 --> 0:18:51.679 Well, I can start. So what we're focused on is 0:18:52.040 --> 0:18:56.119 essentially performance marketing for some of the world's largest brands. 0:18:56.160 --> 0:18:58.119 We've talked about performance marketing a lot, but what do 0:18:58.119 --> 0:19:03.400 you see happening is with the demise of Nielsen brands Essentially, 0:19:03.680 --> 0:19:06.560 you know, want real metrics, they want real targeting. 0:19:06.840 --> 0:19:07.240 They don't. 0:19:07.240 --> 0:19:10.480 They're not happy with just spending hundreds of millions of 0:19:10.480 --> 0:19:13.359 dollars and having no real data and no real control 0:19:13.400 --> 0:19:16.680 over it. So both of us, Mark Penn, his company 0:19:16.960 --> 0:19:21.560 is kind of the premier performance marketing holding company for agencies, 0:19:21.840 --> 0:19:25.040 and obviously you guys know mount ebented performance TV. So 0:19:25.080 --> 0:19:28.560 we're teaming up with an offering geared to directly at 0:19:28.600 --> 0:19:31.320 the world's largest brands to now enter the world of 0:19:31.400 --> 0:19:32.480 performance marketing. 0:19:32.880 --> 0:19:35.920 Hey, Mark, talk to us about Stagwell what you guys 0:19:35.960 --> 0:19:39.600 do there and how you guys can serve advertisers and 0:19:39.680 --> 0:19:43.400 the networks and you know, really kind of help out 0:19:43.400 --> 0:19:44.160 with measurement there. 0:19:45.119 --> 0:19:50.359 Sure you know Stagwell announced dec listed companies. We're uh, 0:19:50.600 --> 0:19:53.760 we manage about five billion dollars of media for our 0:19:53.760 --> 0:19:57.560 clients and so this this partnership is very important to 0:19:57.640 --> 0:20:04.760 extend you know, our performance oriented media into connected TV, 0:20:05.280 --> 0:20:08.439 where Mountain has a real specialty. And also we have 0:20:08.520 --> 0:20:13.199 a series of digital platform products and research communications and 0:20:13.280 --> 0:20:17.200 media which Mountain can take to its primarily small business market. 0:20:17.600 --> 0:20:20.840