Latest / Bloomberg Intelligence / US Consumer Sentiment Nears Record Low on Inflation Concerns

Transcript

US Consumer Sentiment Nears Record Low on Inflation Concerns · Bloomberg Intelligence

• 0:02
  Speaker 1: Bloomberg Audio Studios, podcasts, radio, news, and Android auto with
• 0:09
  Speaker 1: the Bloomberg Business App. Listen on demand wherever you get
• 0:12
  Speaker 1: your podcasts, or watch us live on YouTube.
• 0:15
  Speaker 2: On the economic from We've got some University of Michigan
• 0:17
  Speaker 2: sentiment data today, just coming out at ten am Wall
• 0:20
  Speaker 2: Street time.
• 0:21
  Speaker 3: Not good.
• 0:22
  Speaker 2: University of Michigan sentiment came out at fifty point eight.
• 0:25
  Speaker 2: Consensus was fifty three point four. Last period it was
• 0:29
  Speaker 2: fifty two point two. This is the second lowest rating
• 0:34
  Speaker 2: or measurement on record. Joann chu joins us here Surveys
• 0:37
  Speaker 2: of Consumers, Director at the University of Michigan. Johanne putting
• 0:43
  Speaker 2: in the context the numbers you guys.
• 0:45
  Speaker 4: Reported today, essentially we should think of this as very
• 0:48
  Speaker 4: little change from April. Over the course of this year,
• 0:52
  Speaker 4: we've seen consecutive months of very very strong declines. This
• 0:55
  Speaker 4: most recent one was a very small decline and essentially flat.
• 1:00
  Speaker 4: But as you pointed out, this is a very very
• 1:03
  Speaker 4: low reading. Consumers continue to feel very dour about the economy.
• 1:07
  Speaker 4: They're worried about the impact of tariffs on inflation and
• 1:09
  Speaker 4: also the impact on unemployment. They're really worried about multiple
• 1:13
  Speaker 4: dimensions of the economy. That was what they saw last month,
• 1:17
  Speaker 4: and they continue to see dark times ahead.
• 1:20
  Speaker 5: And nearly three fourths of the respond then spontaneously mentioned
• 1:23
  Speaker 5: tariffs and that topic cross partisan lines. Can you tell
• 1:26
  Speaker 5: us what you thought of that.
• 1:28
  Speaker 4: We've been seeing a rising share of consumers spontaneously mention
• 1:32
  Speaker 4: spontaneously mentioning tariffs. A few months ago, it was really
• 1:36
  Speaker 4: a fairly small number of people, and now it's almost
• 1:38
  Speaker 4: three quarters. It's cutting across partisan lines. It's really on
• 1:42
  Speaker 4: everyone's minds, and at this point, consumers are really waiting
• 1:45
  Speaker 4: for the other shoe to drop in terms of its
• 1:49
  Speaker 4: impact on inflation. And it's not just the fact that
• 1:52
  Speaker 4: tariff policies have come in pretty high, but it's also
• 1:56
  Speaker 4: the uncertainty and instability of it. So falling this most
• 2:00
  Speaker 4: recent pause on some China terrafts, we saw a little
• 2:03
  Speaker 4: bit of improvement, but it really wasn't enough to reverse
• 2:09
  Speaker 4: the sour readings that we've been seeing for the last
• 2:11
  Speaker 4: few months.
• 2:12
  Speaker 2: The University of Michigan one year inflation outlook, the consensus
• 2:15
  Speaker 2: was six and a half percent, which is.
• 2:16
  Speaker 3: An elevated number.
• 2:18
  Speaker 2: Came in even higher than that, it's seven point three percent.
• 2:21
  Speaker 2: What's driving that.
• 2:24
  Speaker 4: Again, it's the uncertainty and instability of tariff policy. Consumers
• 2:28
  Speaker 4: are aware that inflation right now isn't necessarily reflecting those
• 2:34
  Speaker 4: terraffs yet, but they're waiting, they're really bracing for the impact.
• 2:38
  Speaker 4: And interestingly, the increases in both short and long run
• 2:43
  Speaker 4: inflation expectations were very much being driven by increases among Republicans.
• 2:48
  Speaker 4: So even those who might broadly be in agreement with
• 2:53
  Speaker 4: the president's economic policies are quite worried that the outlook
• 2:57
  Speaker 4: for inflation has worsened recently.
• 3:00
  Speaker 3: Joanne, thank you so much for that.
• 3:01
  Speaker 2: Joy and Shue Surveys of consumers director at the University
• 3:04
  Speaker 2: of Michigan. Again some significantly weaker than expected out look
• 3:09
  Speaker 2: from the you Mish survey, so we'll stay on top
• 3:12
  Speaker 2: of that.
• 3:12
  Speaker 1: Of course, you're listening to the Bloomberg Intelligence Podcast. Catch
• 3:17
  Speaker 1: us live weekdays at ten am Eastern on Applecarcklay and
• 3:20
  Speaker 1: Android Auto with the Bloomberg Business App. Listen on demand
• 3:24
  Speaker 1: wherever you get your podcasts, or watch us live on YouTube.
• 3:28
  Speaker 2: This is about Lady sitting in for Alextel on Paul
• 3:30
  Speaker 2: Sweeney Live here in our Bloomberg in Director Broker Studio
• 3:32
  Speaker 2: streaming live on YouTube as well. So news coming out
• 3:36
  Speaker 2: of the pharmaceutical space. Novo Nordisk is replacing its CEO
• 3:40
  Speaker 2: amid increased in competitions for its we govy OBCD shots
• 3:45
  Speaker 2: and a fifty three percent decline and the share presser
• 3:47
  Speaker 2: over the past twelve months. Boy, these socks are having
• 3:49
  Speaker 2: a tough time. They did so well during the pandemic
• 3:52
  Speaker 2: and everybody's trying to adjust post pandemic. It seems like
• 3:55
  Speaker 2: I'm thinking about United Healthcare as well. Mikey Shaw joins us.
• 3:58
  Speaker 2: He's a senior farmer farmer tech analysts for Bloomberg Intelligence.
• 4:01
  Speaker 3: He's in London.
• 4:02
  Speaker 2: He's one of a really really good analyst over there
• 4:05
  Speaker 2: in London, one of the best in the city covered
• 4:07
  Speaker 2: in this space.
• 4:07
  Speaker 3: He learned from an old guy, but he's the he's
• 4:09
  Speaker 3: the young guy, all right.
• 4:11
  Speaker 2: Michael shaff tellas what's going on at Novo. Is it
• 4:13
  Speaker 2: the CEO's problem or do they have a bigger issue?
• 4:16
  Speaker 6: Yeah, I mean they announced the decision today, certainly unexpected
• 4:22
  Speaker 6: by us. Seems a bit you know, abrupt to nature.
• 4:26
  Speaker 6: You know, NOA tends to be very steady in their approach,
• 4:29
  Speaker 6: but they also take you know, a long term approach
• 4:31
  Speaker 6: to things, So maybe they think, you know, Jorgenson can't
• 4:36
  Speaker 6: kind of steer the ship in light of the challenges
• 4:39
  Speaker 6: that they're facing, and that their duty to face as well.
• 4:45
  Speaker 6: You know, as I said, there's been a bit of
• 4:47
  Speaker 6: a turn in fortune since mid twenty four. Some of
• 4:50
  Speaker 6: that's been market challenges, some of that's been kind of
• 4:54
  Speaker 6: pipeline execution. In terms of the market challenges, I mean,
• 4:57
  Speaker 6: it's difficult to know kind of what the CEO is,
• 4:59
  Speaker 6: but you know how they were meant to kind of
• 5:02
  Speaker 6: react to that. So you know, you saw US policy
• 5:06
  Speaker 6: pressures or and then you also saw headwinds from j
• 5:10
  Speaker 6: LPE compounding due to you know, supply shortage, and then
• 5:15
  Speaker 6: on the pipeline side of things, you know, you had
• 5:17
  Speaker 6: underwhelming results for Cagary Semmer and then you also, you know,
• 5:23
  Speaker 6: we also had kind of reservations around a novel's or
• 5:26
  Speaker 6: all OBC strategy, so that was heavily focused on peptides.
• 5:29
  Speaker 6: You know, they've done a series of deals recently which
• 5:32
  Speaker 6: are now focused on oral small molecules. So that suggests
• 5:36
  Speaker 6: that perhaps not investing sooner in that space was perhaps
• 5:40
  Speaker 6: an oversight, and I think, you know, the move today
• 5:44
  Speaker 6: or the decision today, you know, really reaffirms kind of
• 5:47
  Speaker 6: perceptions that you know, while Novo had the first mover
• 5:50
  Speaker 6: advantage in obesity, you know, they certainly have lost ground
• 5:54
  Speaker 6: to Eli Lilly now, which looks like it has a
• 5:57
  Speaker 6: stronger abuse you're offering out of the two players.
• 6:00
  Speaker 5: What's interesting to me is how he will continue as
• 6:03
  Speaker 5: CEO for a period to support a smooth transition to
• 6:06
  Speaker 5: a new leadership. Quote. I mean Nova has only had
• 6:09
  Speaker 5: three CEOs. How will this affect sentiment? I mean, are
• 6:12
  Speaker 5: people more optimistic and reinvigorated that yes, maybe we can
• 6:16
  Speaker 5: finally have a turning point, or are they using feeling
• 6:19
  Speaker 5: a little bit more pessimistic because it sounds like they
• 6:21
  Speaker 5: really have a good culture.
• 6:23
  Speaker 6: Yeah, I mean that's the thing, all right. Yeah, I
• 6:26
  Speaker 6: said that the timing seemed a bit odd. Nova's obviously
• 6:30
  Speaker 6: you're expecting an uptic in GLP one in the second
• 6:33
  Speaker 6: half of the year, as as you see easing headwinds
• 6:37
  Speaker 6: from from compounding, So you know, I think the timing's
• 6:41
  Speaker 6: a bit weird. The last time they changed their CEO,
• 6:44
  Speaker 6: they announced the successor at the same time. That was Yogison. Say,
• 6:48
  Speaker 6: the switch between the Sorencefu and Yugason.
• 6:52
  Speaker 3: Today.
• 6:54
  Speaker 6: You know, they're basically just saying that they're reviewing internal
• 6:56
  Speaker 6: and external candidates, but the strategy remains unchanged. The fact
• 7:02
  Speaker 6: that they say the strategy remains unchanged makes us believe that,
• 7:05
  Speaker 6: you know, it's clearly an execution issue and that you know,
• 7:09
  Speaker 6: the board and the major shareholder, which is no both
• 7:12
  Speaker 6: Foundation through Novo Holdings have clearly kind of lost confidence
• 7:17
  Speaker 6: in in Jorginson.
• 7:21
  Speaker 2: So talk to us about the just kind of what
• 7:24
  Speaker 2: we're seeing in that weight loss drug market generally. Where
• 7:28
  Speaker 2: are we in this development, who are in how's it
• 7:30
  Speaker 2: kind of shaken out in terms of leaders in that marketplace?
• 7:35
  Speaker 6: Yeah, so I think I think Lily now is you know,
• 7:39
  Speaker 6: the clear leader. It's got the better portfolio, it's more
• 7:41
  Speaker 6: effective drug out there. What's going to be key going
• 7:44
  Speaker 6: forward now is there's going to be a lot of
• 7:46
  Speaker 6: focus on oral anti oral jp ones. So these fall
• 7:51
  Speaker 6: into two categories. One peptide, which is which is a
• 7:54
  Speaker 6: large molecule, and then you've got the small molecule such
• 7:57
  Speaker 6: an awful glippron, you know thing that awful get from,
• 8:01
  Speaker 6: which is Lily's assets. That's clearly got the better profile
• 8:05
  Speaker 6: when comparing that to Novo Nordice or Sema Glue Tide.
• 8:10
  Speaker 6: That's input part because one it's probably easy easier to
• 8:13
  Speaker 6: scale because of the type of molecule that it is,
• 8:16
  Speaker 6: and two you don't have these kind of strict dosing
• 8:19
  Speaker 6: criterias where you have to take it on an empty stomach,
• 8:22
  Speaker 6: et cetera, which you know, we think is the drawback
• 8:26
  Speaker 6: to convenience. Now, you know, we've seen kind of the
• 8:29
  Speaker 6: difficulties in kind of scaling up injectable GLP ones, we
• 8:33
  Speaker 6: don't envisage, you know, the same issue with withal or
• 8:37
  Speaker 6: molecule glp ones. So that would essentially, you know, allow
• 8:41
  Speaker 6: kind of you know, great penetration of of the of
• 8:46
  Speaker 6: the VS market.
• 8:48
  Speaker 5: The competition has definitely intensified, and Novo stock has more
• 8:52
  Speaker 5: than half in the past year. What about Trump's pharmatarists
• 8:55
  Speaker 5: that looms over the company as well.
• 8:58
  Speaker 6: Yeah, I think it leaves over Nova. I think it
• 9:00
  Speaker 6: looms over you know, drug companies as a whole. Yeah,
• 9:04
  Speaker 6: clearly negative. But also you know it's source of aol.
• 9:08
  Speaker 6: It is see there's no real detail on it, so
• 9:12
  Speaker 6: you know, it's difficult to kind of comment on the
• 9:15
  Speaker 6: potential impact that these tariffs could have and when they're
• 9:19
  Speaker 6: going to come in And you know, that's kind of
• 9:21
  Speaker 6: a commentary that we kind of heard over a large
• 9:24
  Speaker 6: farmers one key results too.
• 9:27
  Speaker 3: All right, Mikey, thank you so much for joining us.
• 9:29
  Speaker 2: Micro Shaw he covers all the pharmaceutical companies for Bloomberg
• 9:33
  Speaker 2: Intelligence over in London.
• 9:34
  Speaker 3: We hired Mikey when he was a young associate.
• 9:37
  Speaker 2: He did really well there, were promoted to analysts, did
• 9:40
  Speaker 2: really well there, got promoted.
• 9:42
  Speaker 3: To senior analysts.
• 9:43
  Speaker 2: Now he's one of the senior folks in the city
• 9:45
  Speaker 2: of London covering his big farmer companies and it's just
• 9:48
  Speaker 2: a great success story. And that's what Bloomberg Intelligence has
• 9:50
  Speaker 2: had a lot of success with, which is identifying and
• 9:53
  Speaker 2: nurturing young talent, and Mikey Shaw's certainly one of those
• 9:56
  Speaker 2: there and that's a great thing to see.
• 9:59
  Speaker 1: You're lesson to the Bloomberg Intelligence podcast. Catch us live
• 10:03
  Speaker 1: weekdays at ten am Eastern on Apple, cock Play and
• 10:05
  Speaker 1: Android Auto with the Bloomberg Business app. Listen on demand
• 10:09
  Speaker 1: wherever you get your podcasts, or watch us live on YouTube.
• 10:13
  Speaker 2: Big Big trade in the world of media and telecommunications.
• 10:16
  Speaker 2: Charter Comic Communication that's a public traded company. Find Cox Communications,
• 10:21
  Speaker 2: which is a privately held cable company. Thirty four and
• 10:24
  Speaker 2: a half billion dollars. It's a value on Cox. This
• 10:26
  Speaker 2: is a huge deal, folks, and we want to get
• 10:28
  Speaker 2: the latest. So we turned to Getha Ranganath and Bloomberg
• 10:31
  Speaker 2: Intelligence senior media analyst, Getha.
• 10:33
  Speaker 3: Big big deal was this? What does this do for Charter?
• 10:37
  Speaker 7: Here?
• 10:37
  Speaker 2: What's the rationale for Charter laying out this big, big
• 10:40
  Speaker 2: trade here?
• 10:42
  Speaker 8: Yeah? Absolutely, Paul, I mean yes, we were expecting something
• 10:46
  Speaker 8: to happen in the cable space. Remember, Charter right now
• 10:50
  Speaker 8: before this deal is the second largest broadband US broadband
• 10:54
  Speaker 8: provider with about thirty million subscribers. With this deal, what
• 10:58
  Speaker 8: happens is they really kind of get the catapult to
• 11:00
  Speaker 8: number one position edging past Comcast and having almost thirty
• 11:05
  Speaker 8: six million broadband subscribers. And really the rationale for the deal, Paul,
• 11:09
  Speaker 8: is that cable has been under intense pressure. So just
• 11:13
  Speaker 8: a few years ago, Cable completely dominated the broadband landscape
• 11:17
  Speaker 8: with about a sixty seven percent market share. They have
• 11:21
  Speaker 8: been losing share to the telecom players, the Verizons, the
• 11:25
  Speaker 8: T mobiles, and the AT and TS of the world
• 11:26
  Speaker 8: because those players have come out with a much cheaper
• 11:30
  Speaker 8: broadband solution with what is known as five G home
• 11:34
  Speaker 8: Internet or fixed wireless access is priced about twenty to
• 11:37
  Speaker 8: thirty percent lower than a cable broadband product. And you know,
• 11:42
  Speaker 8: they've also been ramping up their fiber rollouts, so a
• 11:45
  Speaker 8: cable kind of really facing it on both ends of
• 11:48
  Speaker 8: the spectrum in terms of competition. And this is really
• 11:51
  Speaker 8: just about them kind of gaining scales and better efficiencies
• 11:54
  Speaker 8: and operations.
• 11:55
  Speaker 5: So they've had talks about this more than a decade ago,
• 11:58
  Speaker 5: and too many people's point, isn't a surprise? What change
• 12:01
  Speaker 5: in that horizon? Like why was it not pushed through before?
• 12:04
  Speaker 5: And why are we seeing it happen right now?
• 12:07
  Speaker 8: I mean there have been multiple things, so, you know,
• 12:09
  Speaker 8: regulatory concerns have obviously been you know, one of the
• 12:12
  Speaker 8: foremost issues for the cable space. Remember just I think
• 12:16
  Speaker 8: just less than ten years ago in twenty sixteen, Comcast
• 12:19
  Speaker 8: tried to buy Time Warner Cable, failed in that transaction,
• 12:23
  Speaker 8: and then Chotter went ahead and then acquired you know,
• 12:26
  Speaker 8: Time Warner Cable. So regulatory issues have certainly been you know,
• 12:30
  Speaker 8: front and center, and I think you know right now.
• 12:34
  Speaker 8: The stimulus for this was really the fact that the
• 12:37
  Speaker 8: cable industry is kind of facing all of these challenges
• 12:41
  Speaker 8: from the telecoms, intense competitive challenges, and I think Cox
• 12:46
  Speaker 8: really saw this as a really good strategy for them
• 12:50
  Speaker 8: to you know, exit all right, So.
• 12:52
  Speaker 2: This begs the question and you mentioned earlier, what does
• 12:57
  Speaker 2: Comcast do here? Is there a response here from Comcasts
• 12:59
  Speaker 2: as strategic response here?
• 13:03
  Speaker 8: So Comcast actually already has a deal kind of in
• 13:07
  Speaker 8: the works in terms of their spinoff of their cable networks.
• 13:10
  Speaker 8: So that's on the media side of the business, that's
• 13:12
  Speaker 8: not on the cable side of the business. But they
• 13:14
  Speaker 8: are spinning off their cable networks. That should happen sometime
• 13:17
  Speaker 8: a little bit later this year. And the expectation, Paul
• 13:21
  Speaker 8: has been that once that deal happens, you know, once
• 13:23
  Speaker 8: they spin off that cable network's division into its own entity,
• 13:28
  Speaker 8: that will become a roll up for many other networks,
• 13:32
  Speaker 8: most notably you know, the Warner Brothers, Discovery networks, maybe
• 13:35
  Speaker 8: even you know, a smaller AMC networks. So really there's
• 13:38
  Speaker 8: been a lot more chatter for Comcast on the media
• 13:41
  Speaker 8: side rather than the cable side.
• 13:43
  Speaker 5: But We'll have to wait and watch when it comes
• 13:46
  Speaker 5: to anti trust. Do you think that it helps that
• 13:48
  Speaker 5: Charter cocks deal isn't a big tech company because we
• 13:51
  Speaker 5: know that competition officials, even Vice president Jdvance, have really
• 13:55
  Speaker 5: closely looked at that space.
• 13:58
  Speaker 8: Yeah, I think that definitely helps. Also, this is you know,
• 14:01
  Speaker 8: there is absolutely no overlap in terms of their footprint.
• 14:05
  Speaker 8: You know, cable is a very regional business, so again
• 14:09
  Speaker 8: this does not in any way hamper competition. It's actually
• 14:12
  Speaker 8: good for consumers. And the one thing that you know,
• 14:15
  Speaker 8: the Charter executives kept mentioning on the call was you
• 14:18
  Speaker 8: know they are basically going to create more jobs in America.
• 14:21
  Speaker 8: So this is, you know, good overall. So definitely, just
• 14:25
  Speaker 8: kind of given the size and scope of the transaction,
• 14:27
  Speaker 8: we don't really expect any big regulatory pushback.
• 14:32
  Speaker 3: All right, Keith rung Anathan, thank you so much.
• 14:34
  Speaker 2: We appreciate ta Keith rung Annas and she covers all
• 14:36
  Speaker 2: the media companies for Bloomberg Intelligencies based in Princeton, New Jersey.
• 14:41
  Speaker 3: Again a big, big deal.
• 14:42
  Speaker 2: Charter Communications HTR is the tigger buying privately held Cost
• 14:47
  Speaker 2: Communications for twenty one point nine billion.
• 14:51
  Speaker 3: Dollar equity value.
• 14:52
  Speaker 2: There's also a lot of debt in there, so the
• 14:53
  Speaker 2: enterprise values much higher. A big, big transaction that the
• 14:58
  Speaker 2: folks down in Atlanta, the Cox found have been a
• 15:01
  Speaker 2: long time family company, owning a wide variety of media assets,
• 15:06
  Speaker 2: newspapers like the Atlanta Constitution, radio stations, TV stations, cable.
• 15:11
  Speaker 3: Amongst other things. So this is a big, big transaction
• 15:14
  Speaker 3: for them.
• 15:15
  Speaker 2: They are getting out of the cable television business and
• 15:19
  Speaker 2: they're considered very, very smart operator, so that tells you
• 15:23
  Speaker 2: how tough that business is. And when they're saying they
• 15:25
  Speaker 2: cannot compete with their scale, so a big transaction in
• 15:28
  Speaker 2: that space.
• 15:31
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
• 15:35
  Speaker 1: weekdays at ten am Eastern on Applecarcklay and Android Auto
• 15:38
  Speaker 1: with the Bloomberg Business App. Listen on demand wherever you
• 15:41
  Speaker 1: get your podcasts, or watch us live on YouTube.
• 15:45
  Speaker 2: Hey, it's been a good week for Boeing. First, she
• 15:48
  Speaker 2: got a whole slew of orders, recording their biggest order
• 15:50
  Speaker 2: ever coming out.
• 15:51
  Speaker 3: Of the Mid East.
• 15:52
  Speaker 2: So a good revenue potential backlog for Boeing. And then
• 15:56
  Speaker 2: today there's reporting and we're to stay on top of it.
• 15:58
  Speaker 2: A couple of sources. Reuter says that Boeing is an
• 16:01
  Speaker 2: a tentative deal to avoid US prosecution, and the Wall
• 16:05
  Speaker 2: Street Journal reporting that the Justice Department wants to spare
• 16:08
  Speaker 2: Boeing from a guilty plea over seven thirty seven max charges.
• 16:12
  Speaker 2: So again, a potential really good piece of news for
• 16:15
  Speaker 2: Boeing stocks unchanged on the day, but it is up
• 16:18
  Speaker 2: fifteen percent you to date at a fifty two week high.
• 16:20
  Speaker 2: George Ferguson joins US. He covers the airlines, the aerospace companies,
• 16:24
  Speaker 2: including Boeing. Hey, George, this seems like a big deal
• 16:26
  Speaker 2: to me. How do you how do you read it?
• 16:30
  Speaker 9: Yeah, so I do think it's a good it's a
• 16:33
  Speaker 9: good situation when Boeing can avoid a felony conviction, which
• 16:38
  Speaker 9: I think ultimately was going to happen here before the
• 16:42
  Speaker 9: Justice Department, I guess, sort of stood down or didn't
• 16:45
  Speaker 9: care as much, and so, you know, there was a lot.
• 16:48
  Speaker 7: Of questions, I guess about whether or not.
• 16:51
  Speaker 9: A company that had been convicted of a felony could
• 16:54
  Speaker 9: be a government contractor.
• 16:56
  Speaker 7: I mean, my personal opinion was that Boeing.
• 16:59
  Speaker 9: Was just too important to the defense industrial complex to
• 17:03
  Speaker 9: not be allowed to be a defense contractor.
• 17:06
  Speaker 7: And so.
• 17:08
  Speaker 9: They would have found the Defense Department would have found
• 17:10
  Speaker 9: a way around it. And maybe that's one of the
• 17:14
  Speaker 9: reasons for a little bit of indifference in the marketplace
• 17:17
  Speaker 9: right now over it.
• 17:18
  Speaker 7: But I think in the long run it is a.
• 17:21
  Speaker 9: Really I think good thing for the company to avoid
• 17:24
  Speaker 9: having to be considered a fellon.
• 17:27
  Speaker 5: You made a good point that if you're a fellon,
• 17:30
  Speaker 5: you can't really have government contracts. Critics would say that
• 17:34
  Speaker 5: maybe the current administration probably had an influence on this.
• 17:37
  Speaker 5: What would you respond to that, And it's probably hard
• 17:40
  Speaker 5: to ignore given that. For instance, President Donald Trump said
• 17:42
  Speaker 5: that Boeing had some headaches, but it makes one of
• 17:45
  Speaker 5: the best planes quote in his remarks when he was
• 17:49
  Speaker 5: at the UAE.
• 17:50
  Speaker 7: Yeah, I mean it does feel that way to me.
• 17:53
  Speaker 9: And again, I think the challenge here is, look, but
• 17:56
  Speaker 9: Boeing did have some problems, clearly, you know, with the
• 18:00
  Speaker 9: seven thirty seven, and you know they were supposed to
• 18:04
  Speaker 9: put in place an overseer that was going to help
• 18:07
  Speaker 9: fix those problems.
• 18:10
  Speaker 7: I think there's a lot of focus.
• 18:11
  Speaker 9: On the company right now, and I do think it's
• 18:13
  Speaker 9: probably in the country's best interest not to impede its
• 18:18
  Speaker 9: ability to be a contractor again to DoD and to
• 18:22
  Speaker 9: other parts of the government. And so I'm looking little longer,
• 18:26
  Speaker 9: and I don't think we need the felony conviction in
• 18:29
  Speaker 9: order to make sure the right thing happens at Boeing,
• 18:31
  Speaker 9: and so, you know, so I'm sure.
• 18:34
  Speaker 7: I wouldn't throw too many films in this one.
• 18:36
  Speaker 2: With a little bit of a hindsight here put into
• 18:39
  Speaker 2: context Boeing's weak in terms of orders.
• 18:43
  Speaker 3: How big was it?
• 18:46
  Speaker 7: Yeah, no, it was a nice week.
• 18:48
  Speaker 9: So we we expect more of this to come. You know,
• 18:54
  Speaker 9: I really think as the administration goes out and focuses
• 18:57
  Speaker 9: on trade with the world and balance of payments, that
• 19:02
  Speaker 9: countries around the world are going to look for ways
• 19:04
  Speaker 9: to equalize that. And Boeing is one of the most
• 19:07
  Speaker 9: important exporters for the US and look there, and we've
• 19:13
  Speaker 9: reported the Bloomberg terminal.
• 19:14
  Speaker 7: About this, right there. Sales recently have definitely lagged, right.
• 19:20
  Speaker 9: I think as customers have watched the problems of Boeing,
• 19:23
  Speaker 9: watched the quality problems, the problems ramping up production, and
• 19:26
  Speaker 9: so they're probably is already a natural springback for a
• 19:32
  Speaker 9: pretty decent order year this year. Because again I think
• 19:36
  Speaker 9: some of those core customers they haven't moved on. They're
• 19:38
  Speaker 9: not going to buy air Bus. Their fleets a lot
• 19:41
  Speaker 9: of their fleets are primarily Boeing, so they want to
• 19:43
  Speaker 9: buy Boeing. It's in their best interest to buy Boeing,
• 19:46
  Speaker 9: but they just didn't want to get in the order
• 19:47
  Speaker 9: book right now because it was such a mess last year.
• 19:51
  Speaker 9: So I think that springback coupled with an administration that's
• 19:54
  Speaker 9: going to go around the world and say, hey, what
• 19:56
  Speaker 9: are you doing to balance payments with us? And you know,
• 20:00
  Speaker 9: and when countries go, I don't know, I guess we're
• 20:03
  Speaker 9: off sides. The administration shows them, I guess chips and
• 20:06
  Speaker 9: bowing airplanes and they go, okay, we'll take a bunch
• 20:08
  Speaker 9: of bowing airplanes. Anyways, I think, you know you're going
• 20:11
  Speaker 9: to see again more of this. So it was a
• 20:14
  Speaker 9: good week, but I think there's more to come, and
• 20:17
  Speaker 9: there's a spring back as well involved.
• 20:19
  Speaker 3: Here thirty second storage.
• 20:21
  Speaker 2: What's the run rate today on seven three seven deliveries
• 20:24
  Speaker 2: and where does it need to be?
• 20:26
  Speaker 9: And April we saw we think mid twenties going through
• 20:29
  Speaker 9: the factory.
• 20:30
  Speaker 7: I think that's pretty good. We'd like to be seeing mid.
• 20:33
  Speaker 9: Thirties by mid year, and we think they ought to
• 20:36
  Speaker 9: be able to break thirty eight by end of the year.
• 20:39
  Speaker 7: For seven thirty.
• 20:39
  Speaker 2: Seven, George excell appreciate you coming on short notice. George
• 20:43
  Speaker 2: Ferguson covers airlines and the aerospace companies for Bloomberg Intelligence.
• 20:47
  Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify,
• 20:52
  Speaker 1: and anywhere else you get your podcasts. Listen live each
• 20:56
  Speaker 1: weekday ten am to noon Eastern on Bloomberg dot com,
• 21:00
  Speaker 1: the iHeartRadio app tune In, and the Bloomberg Business app.
• 21:04
  Speaker 1: You can also watch us live every weekday on YouTube
• 21:07
  Speaker 1: and always on the Bloomberg terminal