Latest / Bloomberg Intelligence / Understanding Facebook's Antitrust Case Win

Transcript

Understanding Facebook's Antitrust Case Win · Bloomberg Intelligence

0:00
Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
0:04
Speaker 1: my co host Matt Miller. Every business day, we bring
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Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
0:11
Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
0:15
Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
0:18
Speaker 1: at Bloomberg dot com slash podcast. Jim Anderson he's the
0:22
Speaker 1: CEO of Social Flow based in New York City, and
0:24
Speaker 1: we love to talk to Jim about all things kind
0:26
Speaker 1: of social media technology, the uh, the Internet. Jim, thanks
0:30
Speaker 1: so much for joining us here. So you know, you
0:32
Speaker 1: look at Facebook. They one dismissal of the United States
0:35
Speaker 1: and the Very States monopoly lawsuits. Is Facebook? Are they
0:40
Speaker 1: in the clear? Now? I wouldn't say they're in the clear.
0:43
Speaker 1: I mean it was a pretty stunning decision. I think
0:45
Speaker 1: everybody agreed there. And just look at their sock price
0:47
Speaker 1: if you want to see how stunning it was to
0:50
Speaker 1: the market place. But you know, they are still a
0:52
Speaker 1: giant target, right, they are a monopoly. It's funny I
0:55
Speaker 1: heard you all talking about friends are in my space,
0:57
Speaker 1: you know, sarcastically jokingly. Um, you know you're not gonna
1:00
Speaker 1: go You're not gonna thank thank god, someone gets my sarcasm.
1:03
Speaker 1: You know, I think, oh yeah, I remember friends or
1:07
Speaker 1: in my space, but TikTok snaps or maybe the current
1:10
Speaker 1: analogies and what Facebook will say if they compete every
1:13
Speaker 1: day for consumer's attention, right, and they don't have a monopoly,
1:16
Speaker 1: that's obviously their position. But they are not in the
1:18
Speaker 1: clear at all, right, you know, whether it be the
1:21
Speaker 1: STC going back and trying again with a stronger case,
1:24
Speaker 1: whether it be Congress actually passing you know I anti
1:27
Speaker 1: trust law, which is is going to require a level
1:29
Speaker 1: of bipartisanship we have yet to see, or whether it's
1:32
Speaker 1: something in the EU or other jurisdictions. This was a
1:34
Speaker 1: US victory. It was a big victory for Facebook, but
1:36
Speaker 1: they are by no means out of the woods. I'm
1:39
Speaker 1: looking at a list of other companies that are worth
1:45
Speaker 1: a trillion dollars. Facebook briefly eclipsed one trillion dollars. Actually
1:50
Speaker 1: I think it's still is worth just about one trillion dollars.
1:54
Speaker 1: And the others are Microsoft, which well it's worth two
1:57
Speaker 1: we were talking about. Apple is worth more than two
2:00
Speaker 1: billion dollars. Amazon is worth almost two trillion dollars um
2:04
Speaker 1: and and Google is um one one and two thirds trillions. There,
2:09
Speaker 1: these are big companies that do stuff arguably that we
2:13
Speaker 1: all really need. They really improve the quality of our lives.
2:18
Speaker 1: And does Facebook belong on this list? Well, the stock
2:22
Speaker 1: market seems to think so. Right. Um, you know, if
2:24
Speaker 1: if you're going to be in that kind of company
2:26
Speaker 1: with two trillion dollar companies or or will say one
2:28
Speaker 1: point seven trillion dollars in the case of Google. Uh,
2:31
Speaker 1: you know, the Facebook is a consumer attention company and
2:34
Speaker 1: what they've done, arguably better than anybody else, is for
2:37
Speaker 1: two and a half billion people around the world, create
2:40
Speaker 1: a habit of them coming back every single day right there.
2:43
Speaker 1: Daily active users number is their most impressive one, and
2:46
Speaker 1: so clearly people are getting something out of that. And
2:48
Speaker 1: your points about the misinformation, the impact on elections, I mean,
2:52
Speaker 1: there's a lot of negatives that go along with that.
2:54
Speaker 1: But also remember you have the ability to connect with
2:56
Speaker 1: family and friends, say, in touch with people you haven't
2:58
Speaker 1: talked with in years. I mean, is clearly something that's
3:01
Speaker 1: bringing people back. And Facebook just as importantly has learned
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Speaker 1: how to monetize that right and that they make massive
3:07
Speaker 1: sums of revenue from advertising off of that. So they
3:09
Speaker 1: built a business and a business model that goes along
3:12
Speaker 1: with that consumer attention. And I do think they belong
3:15
Speaker 1: on the list. They're obviously very different Microsoft, I will say,
3:19
Speaker 1: I use I also use Facebook almost every day. So um,
3:24
Speaker 1: in regards to the misinformation, it seems like Google has
3:28
Speaker 1: done a much better job handling this than has Facebook.
3:33
Speaker 1: And Facebook seems to go, you know, kicking and screaming
3:37
Speaker 1: into um, the land of regulation. Why don't they do
3:41
Speaker 1: a better job of getting all of the fake news
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Speaker 1: and the you know, anger, hate and vitriol off of
3:47
Speaker 1: their website. Well, I'm going to debate that point with you.
3:50
Speaker 1: I'm not sure that I would agree Google does a
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Speaker 1: better job with that because specifically, remember Google owns YouTube.
3:55
Speaker 1: You typically don't care about Google and misinformation about YouTube
3:58
Speaker 1: and misinformation, but Google of course owns that, and YouTube
4:02
Speaker 1: arguably has a bigger problem than than anybody with misinformation,
4:06
Speaker 1: and as the exact same types of problems that Facebook does.
4:10
Speaker 1: Which is, when you get to such a massive scale,
4:12
Speaker 1: there's only so much humans can do, there's only so
4:14
Speaker 1: much machines can do. Decisions are inconsistent at best, missing
4:19
Speaker 1: at worst, and so it is a very daunting problem.
4:22
Speaker 1: I'm not I'm not suggesting any of it should cry.
4:23
Speaker 1: It's here for one and two trillion dollar companies. They've
4:26
Speaker 1: got the resources to try to solve this, but it
4:28
Speaker 1: is a very daunting problem on a scale that nobody
4:31
Speaker 1: has ever been able to handle before. Jim, do you
4:34
Speaker 1: expect is there an appetite within Congress to maybe take
4:38
Speaker 1: a much tighter rein on big tech? There is absolutely
4:43
Speaker 1: an appetite there, But I'll give you two two things.
4:46
Speaker 1: They're one, Republicans and Democrats both very much want to
4:49
Speaker 1: go after big tech, but for very different reasons. Right,
4:51
Speaker 1: So again, how do you get those reasons to align
4:54
Speaker 1: in action? I think there'll be an impetence. But the
4:57
Speaker 1: thing that people aren't talking about is I'm not sure
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Speaker 1: there's that much consumer attention and interest in anti trust.
5:03
Speaker 1: I mean, it's a snoozer of a topic, and as
5:05
Speaker 1: big as the news was yesterday for Facebook and its
5:07
Speaker 1: stock price, we track your consumer attention and we look
5:10
Speaker 1: at the different topics and then I trust interest and
5:13
Speaker 1: then the number of people clicking on stories about anti
5:16
Speaker 1: sust is microscopic compared to things about the economy and
5:20
Speaker 1: even fashion, you know, which is as a great sign
5:22
Speaker 1: for for retailers. You know, fashion and sports and those
5:25
Speaker 1: kinds of things are far far more interesting to consumers,
5:27
Speaker 1: and ultimately politicians respond to consumers. It's not at all
5:30
Speaker 1: clear to me that there's a consumer pressure on Congress
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Speaker 1: to actually cause them to work in a buipartisan ways
5:36
Speaker 1: to actually follow through on their threats. All right, Always
5:39
Speaker 1: great to get your intelligence on these issues, Jim, really important,
5:42
Speaker 1: I think for us and for listeners. Jim Anderson, the
5:44
Speaker 1: CEO of Social Flow talking to us about Facebook, the
5:49
Speaker 1: big win yesterday and the value it's now worth more
5:52
Speaker 1: than one trillion dollars. This is Bloomberg. I want to
5:59
Speaker 1: get right now out straight back to Well, maybe she'll
6:02
Speaker 1: have something to say about small calf, but I think
6:04
Speaker 1: we're gonna focus more on UM fixed income and equity strategies,
6:09
Speaker 1: a bigger picture look. Janelle Woodward joins us. She is
6:13
Speaker 1: president at McKay Shields UM. They are a one hundred
6:18
Speaker 1: and fifty eight billion dollar global asset manager. Janelle, let's
6:22
Speaker 1: let's let me get your outlook on what's going on
6:24
Speaker 1: in this market. First. I keep getting this UM mental
6:27
Speaker 1: image of a roller coaster, you know, right when you
6:29
Speaker 1: get at the top and it's kind of slowing down
6:31
Speaker 1: about to crest, and um, you're at all time highs
6:35
Speaker 1: on equity indexes. People are starting to really worry about inflation. Uh.
6:40
Speaker 1: FED members are starting to say, we need to raise
6:43
Speaker 1: rates by the end of next year. I'm getting that
6:46
Speaker 1: feeling in my stomach. Do you get that as well? Uh? Well,
6:51
Speaker 1: thank you for having me, um. I think the good
6:54
Speaker 1: news is we don't have that feeling in our stomach.
6:56
Speaker 1: But I do think that we recognize that just like
7:00
Speaker 1: last year was quite unprecedented, their recoveries and as unprecedented,
7:05
Speaker 1: and anytime we go through an inflection point when it
7:08
Speaker 1: when it comes to policy, there's some digestion that needs
7:11
Speaker 1: to happen, you know. Noting the Hawker tone of the
7:14
Speaker 1: fat earlier this month, I think we left quite constructive.
7:17
Speaker 1: And I think some of the themes that we've seen
7:19
Speaker 1: across the equity markets, we've seen across the exed income
7:22
Speaker 1: credit markets as well, and credit has been really well
7:24
Speaker 1: supported going in the month. Then, so Janelle, one of
7:28
Speaker 1: the things that the market focuses on somewhat, but it
7:31
Speaker 1: seems like it's completely focusing on on the FED. Here
7:33
Speaker 1: is fiscal stimulus. We've got some a couple of different
7:36
Speaker 1: bills kind of bouncing around Washington. How important is that
7:40
Speaker 1: to your outlook for the market if at all? Yeah,
7:45
Speaker 1: it's certainly important. And I think if we look back
7:48
Speaker 1: earlier in a lot of the interpretation around fiscal policy
7:54
Speaker 1: and what it meant played a significant role in the
7:57
Speaker 1: in the rate market. You know, when we look at
7:58
Speaker 1: the infrastructure though on the table um you know, the
8:01
Speaker 1: bill itself five hundred and eight billion isn't significant per
8:05
Speaker 1: day um, but definitely isn't not in the right direction.
8:09
Speaker 1: We think it's it's a very positive development when we
8:12
Speaker 1: think about our infrastructure needs. You know, we're constructive on
8:15
Speaker 1: the compromise, but we also think that there's going to
8:18
Speaker 1: be a flow through in the fixed income markets from
8:19
Speaker 1: a structural perspective. Um, And in that context, we're really
8:23
Speaker 1: were really focused on the implications on the muni market
8:25
Speaker 1: in particular, Uh, what happens to the muni market? I mean,
8:30
Speaker 1: especially with this huge influx of cash and it's a
8:34
Speaker 1: market that's so conservative and kind of slow to make moves.
8:39
Speaker 1: What are the effects? Yeah, I think what's interesting is
8:43
Speaker 1: we look back across six income markets over the last year.
8:46
Speaker 1: Even one of the things we've noticed is really some
8:48
Speaker 1: of the structural shifts that have taken place, and one
8:51
Speaker 1: of those areas is taxical munis and we've seen a
8:53
Speaker 1: significant growth in the taxiclemuni market. And so when we
8:56
Speaker 1: put that against the infrastructure bill UM, you know, a
9:00
Speaker 1: lot of that debt will end up flowing into the
9:03
Speaker 1: municipal market and we think it creates a lot of
9:06
Speaker 1: just a really constructive opportunity for investors, both in terms
9:09
Speaker 1: of diversification UM, the ability to invest in clean water
9:13
Speaker 1: and public power and public housing, and in the potential
9:16
Speaker 1: entities UM. But at the same point, aligned with the
9:19
Speaker 1: infrastructure bill UM, you know, they're just sustainability aspects of
9:22
Speaker 1: this that we're hearing more and more about from our clients,
9:25
Speaker 1: and we think, really it is a terrific opportunity for investors. So,
9:31
Speaker 1: you know, real quickly talk to us about E s
9:33
Speaker 1: G investing. We hear a lot more about it. How
9:35
Speaker 1: do you guys factor that into your investment process? Yeah,
9:39
Speaker 1: I think it's it's critical and as we think about,
9:41
Speaker 1: you know, what we should be looking at from an
9:43
Speaker 1: analysis perspective, and what constitutes materiality. E S and G
9:48
Speaker 1: factors have become more and more part of this dialogue.
9:51
Speaker 1: You know, it's both about downside protection but also about
9:55
Speaker 1: just the direction of the businesses longer term. So we
9:59
Speaker 1: see an opportunity through this growth, as I mentioned in
10:02
Speaker 1: the tax in the taxable meeting space, but we also
10:05
Speaker 1: see it broadly across across the taxable fixed income space.
10:09
Speaker 1: Very exciting for mackay. Today we actually launch E S
10:12
Speaker 1: G B, which is a core plus UH taxable UH
10:17
Speaker 1: ets focus specifically on E S and G and and
10:21
Speaker 1: we think it's really important really to demonstrate this this
10:24
Speaker 1: value proposition to our clients within a core fixed income
10:29
Speaker 1: place where they're allocated. So we think it's going to
10:32
Speaker 1: continue to be very topical and important to investors going forward.
10:36
Speaker 1: All right, Channel, thank you so much for joining us.
10:37
Speaker 1: We really appreciate it. As always. Janelle Woodward's president of
10:40
Speaker 1: McKay Shields. Right now, let's get to something completely different.
10:47
Speaker 1: It is twenty past eleven right now in New York,
10:52
Speaker 1: twenty past five here in Jeremy. I want to get
10:56
Speaker 1: over to Scott Freeman. He's the co founder and partner
10:59
Speaker 1: at J S T Capital um talking about the latest
11:03
Speaker 1: crypto news with us giving us his outlook on the
11:06
Speaker 1: space and um, Scott, what do you think, by the way,
11:10
Speaker 1: Dallas is a good place for crypto. I mean maybe
11:13
Speaker 1: Austin is better, right, but UM, it's a place where
11:17
Speaker 1: I think there's a lot of new, uh sort of
11:21
Speaker 1: frontier kind of business going on, and I guess that's
11:27
Speaker 1: is crypto still in that stage. Scott, Yeah, I think so.
11:31
Speaker 1: I thinks always been a lot of technology accounting Austin
11:35
Speaker 1: and UM. More recently, people have been leaving California two
11:39
Speaker 1: Texas for tax reasons and I think that's just really
11:42
Speaker 1: UM making Texas, Austin, Dallas more and more viable for
11:46
Speaker 1: people in the crypto SMAs all right, Scott. So we've
11:49
Speaker 1: seen the volatility continue in let's say bitcoin, for example,
11:52
Speaker 1: it's up four point seven percent today. It bounced like
11:54
Speaker 1: it hasn't a past kind of off. That thirty thousand
11:57
Speaker 1: dollar ish level did get a little bit below. Oh here,
12:01
Speaker 1: talk to us about China. That has been a big
12:04
Speaker 1: part of the narrative recently, and it's not been good.
12:06
Speaker 1: How do you think about some of the issues coming
12:08
Speaker 1: out of China in terms of ban on mining and
12:10
Speaker 1: restriction on crypto companies and how material is that for crypto? Well,
12:15
Speaker 1: you know, I think for bitcoin it obviously caused the
12:19
Speaker 1: or a big factory and the climb he scene over
12:21
Speaker 1: the la past few weeks. Um, But you know, I
12:24
Speaker 1: think all of that has already placed into the market.
12:26
Speaker 1: I think, um, you know, crypto bitcoin is is looking
12:30
Speaker 1: good at going forward. And I think for all of
12:32
Speaker 1: us we've been in crypto for a long time. We've
12:34
Speaker 1: seen these issues pop up every few months, whether it's China,
12:37
Speaker 1: whether it's technology, whether attacking. I mean, we've been through this.
12:41
Speaker 1: Crypto is just a very very volto asset and it's
12:43
Speaker 1: just a number example of that volatility. So, um, what
12:47
Speaker 1: happens to bitcoin now? I mean when I think about
12:51
Speaker 1: price action here, I feel like if it dropped below
12:55
Speaker 1: thirty thousand, that could be problematic. But I don't know
12:58
Speaker 1: if that's just because it's a round number that I've
13:00
Speaker 1: heard people rattle off a lot um and I feel like,
13:05
Speaker 1: if it's gonna go up, it needs to go back
13:07
Speaker 1: towards fifty and change to um to show success. Is
13:12
Speaker 1: that fair? Yeah, I think that's fair. I think we
13:15
Speaker 1: would kind of put the downside closer to twenty five
13:17
Speaker 1: as supposed to thirty, just given where the price that
13:19
Speaker 1: action has been and where the activity has been. Honestly,
13:23
Speaker 1: from from January of this year, we've always thought of
13:25
Speaker 1: arrange to fifty, which has been pretty accurate generally speaking. UM,
13:30
Speaker 1: what we think there's a lot of value in some
13:31
Speaker 1: of the other coins, especially East. You know some people
13:34
Speaker 1: who are looking to get into the ecosystem. Bitcoin gets
13:37
Speaker 1: all the headlines, but it's not necessarily the best opportunity
13:40
Speaker 1: for for gonal forward. So I saw that Kathy would
13:44
Speaker 1: and ARC they filed for US bitcoin et F in
13:48
Speaker 1: partnership with twenty one shares. How important is that for
13:51
Speaker 1: the space to have a Cathy would bitcoin etif? I
13:55
Speaker 1: think it's great. I think that on top of other
13:57
Speaker 1: positive news, I cat came out of announcement thing, but
14:00
Speaker 1: they're gonna be UM offering an exchange trade bitcoin. So
14:04
Speaker 1: I think things like that are all just great and
14:06
Speaker 1: bullish for the ecosystem. Um, we're just waiting for the
14:09
Speaker 1: sec it. I actually approved one of the e g s.
14:11
Speaker 1: Think that would be great. There There are already a
14:14
Speaker 1: bunch in Canada if you want in, and there's other
14:16
Speaker 1: ways to For me, Cathy Wood seems like I thought
14:19
Speaker 1: she wanted to be on the leading edge of technology.
14:23
Speaker 1: Isn't she better positioned in the theory um or and defy? Like,
14:26
Speaker 1: what what's she doing in digital gold? Well? I think
14:30
Speaker 1: she does both, right, I'm guessing that she's looking at
14:32
Speaker 1: all the opportunities. He says, you know what, she has
14:34
Speaker 1: a good name, she's very well regarded, she's very reputable,
14:37
Speaker 1: and my guess is that she thinks this is a
14:39
Speaker 1: good opportunity, just an increase the assets she has. You know.
14:42
Speaker 1: It's it's interesting, Scott, I'm wondering. It seems like the market, Um,
14:46
Speaker 1: if you just look at the volatility around bitcoin, it's
14:48
Speaker 1: searching for additional signs of validation, maybe for crypto. Um.
14:55
Speaker 1: You know you had um, you know, you had Elon Musk,
14:58
Speaker 1: you know, buy some crypto bye bye, I'm sorry bye,
15:01
Speaker 1: by some bitcoin and allowed bitcoin to be used for
15:03
Speaker 1: purchasing of some of the vehicles. What's the next big
15:06
Speaker 1: thing that you think the market's looking for in terms
15:09
Speaker 1: of validation of cryptos? I guess maybe an asset class,
15:13
Speaker 1: a real viable asset class. Yeah. I think that there
15:16
Speaker 1: will be others that come into the ecosystem that provide
15:19
Speaker 1: access to it. UM we're working with some of those
15:22
Speaker 1: parties right now, whether they're being UM banks, brokers, private banks,
15:27
Speaker 1: people overseas. I just think you'll you'll start seeing more
15:31
Speaker 1: and more people from traditional finance offering those rails and
15:35
Speaker 1: access to the ecosystem. All right, Scott, Thanks so much.
15:37
Speaker 1: Scott Freeman, co founder and a partner of j ST Capital,
15:41
Speaker 1: giving us our seemingly daily update on all things crypto. Well,
15:44
Speaker 1: the more coming up this is Bloomburton. Some really interesting
15:51
Speaker 1: news this morning. United Airlines goes all in on premium
15:54
Speaker 1: flyers with two hundred and seventy jets and some upgrades
15:57
Speaker 1: two Boeing Max planes. It's big new is I think
16:00
Speaker 1: for both United and maybe even more so for Boeings.
16:03
Speaker 1: When we talk about the airline bizes building planes. We
16:07
Speaker 1: talked to George Ferguson. He's the aerospace analyst for Bloomberg Intelligence,
16:11
Speaker 1: and George, we gotta start with if you can disclose this,
16:14
Speaker 1: where are you today and why are you where you are? Paul,
16:19
Speaker 1: good day. So I'm in Dallas with all that great
16:21
Speaker 1: discussion about Dallas just on the on the on the radio.
16:26
Speaker 1: I guess airplanes in Dallas. That wasn't a bad thing.
16:28
Speaker 1: A lot of important airlines here right to America and Southwest.
16:32
Speaker 1: There's a conference down here in Dallas called Aero Engines America.
16:35
Speaker 1: I'll be on a panel on Thursday, talk about maintenance
16:40
Speaker 1: and you know, the useful life of an airplane and
16:42
Speaker 1: all those heavy subjects. So, George, so am, I have
16:45
Speaker 1: to understand that there's actually a real conference taking place
16:48
Speaker 1: with real people, Yes, sir, live people. I think there's
16:52
Speaker 1: how they do it in Texas. That's how they do
16:54
Speaker 1: it in Texas. If they don't hide away in corners
16:58
Speaker 1: wearing masks and keeping distance, it's Texas. Um, which is
17:04
Speaker 1: I mean, I'm not saying we should all act like that,
17:06
Speaker 1: but it's one of the things I love about Texas.
17:08
Speaker 1: I love I love the airport there. Um. Just because
17:12
Speaker 1: Solomon Brothers thought it was a bad place to be
17:14
Speaker 1: doesn't mean I agree. Um. What's the state of the
17:18
Speaker 1: airline industry then? Now, George, I mean, are we are
17:21
Speaker 1: we gonna see a Texas sized comeback or is it
17:24
Speaker 1: going to still be a while before the all important
17:27
Speaker 1: business traveler gets back on the bus. Well, apparently, United
17:32
Speaker 1: things of Texas sized comeback coming. Uh. What what we
17:35
Speaker 1: see at Bloomberg Intelligence is we've had a really nice summer,
17:40
Speaker 1: I think, a better pop and leisure demand, and we
17:42
Speaker 1: thought we were going to get we're starting to see
17:46
Speaker 1: that transition into the fall where that leisure travelers starting
17:50
Speaker 1: to say to bit, I think their employers are asking
17:53
Speaker 1: to come back to the office and their kids are
17:55
Speaker 1: going to go back to school. Um. And so we're
17:58
Speaker 1: starting to see a little bit of a law to
18:00
Speaker 1: build as we get into the fall. We think there's
18:02
Speaker 1: going to be a little bit of time before that
18:05
Speaker 1: business travel picks up again, because I think we've got
18:07
Speaker 1: to give these people back into offices and companies have
18:10
Speaker 1: to get up the curve on what travel policy is
18:13
Speaker 1: for business travel. Again, if you're going to Texas, they're
18:15
Speaker 1: open for business travel, but not everywhere in the world
18:18
Speaker 1: wants to take you for a lot of business meeting. Uh.
18:21
Speaker 1: And then so I think you'll take a time some
18:23
Speaker 1: time to sether in business. Do you think you're gonna
18:25
Speaker 1: have a rougher for queue one que? Then you get
18:29
Speaker 1: back to a leisure bounce of the next summer and
18:32
Speaker 1: we'll continue to build business as we go through the year,
18:35
Speaker 1: which will improve things too. But again I think you're
18:38
Speaker 1: set for a little bit of a well here in
18:39
Speaker 1: the winter. All right, George, again, the news of today
18:42
Speaker 1: United buying a bunch of jets from Boeing. That's really
18:45
Speaker 1: good news for Boeing. It seems to me, what do
18:49
Speaker 1: what do you make of it? Because I mean, you
18:50
Speaker 1: know United, it's obviously a huge global carrier and they're
18:53
Speaker 1: buying a lot of Max planes. Yes, so you know
18:57
Speaker 1: what what it tells me is we've been watching uh,
19:00
Speaker 1: you know, Bowing very closely because we've we've been a
19:03
Speaker 1: bit concerned about the ability to deliver airplanes at the
19:06
Speaker 1: rate they want to build in. They want to get
19:08
Speaker 1: the thirty one airplanes a month sevens. I'm talking by
19:12
Speaker 1: the beginning of and when we were looking at the
19:16
Speaker 1: customer base and the challenges. One of the big challenges
19:18
Speaker 1: is China hasn't approved the Max yet, and they're always
19:22
Speaker 1: a source of a lot of demand for airplanes. We
19:25
Speaker 1: still have a bit of a trade tiff going on
19:27
Speaker 1: there and so we don't see that clearing up right away.
19:30
Speaker 1: I think it's become a big political India not letting
19:33
Speaker 1: the Max in. We were very concerned about how Bowing
19:36
Speaker 1: was going to build those thirty one and who they
19:38
Speaker 1: were going to shift them to. It looks like the
19:40
Speaker 1: strategy of Bowing has been go back to your good customers,
19:45
Speaker 1: give them great deals, accelerate some of their existing orders,
19:50
Speaker 1: and build out the delivery sky and build out the
19:52
Speaker 1: delivery skyline for three. So if you look at the
19:56
Speaker 1: way you know United to take I think some sixty
19:59
Speaker 1: eight airplanes in three, and think if you look at
20:04
Speaker 1: what's happening now, they're building out that base delivery levels
20:09
Speaker 1: they need for two and twenty three with some of
20:13
Speaker 1: the more important US customers, And that's that's really I
20:16
Speaker 1: think they've probably got a great deal. I think they
20:19
Speaker 1: probably brought Bowing to the table to negotiate a great
20:21
Speaker 1: deal and they said we got invite Airbus as well.
20:24
Speaker 1: And then they picked up the eight three twenty one.
20:26
Speaker 1: Probably had a good price because because Bowling doesn't have
20:29
Speaker 1: a product in the line up, the matches the old
20:31
Speaker 1: seven fifty seven, uh you know specs and so that
20:34
Speaker 1: three twenty one does a seven five seven replacements for United.
20:38
Speaker 1: I like the big ones are we gonna see any more? That,
20:40
Speaker 1: you know? I like the seven. Um like a roomy
20:44
Speaker 1: a roomy ship. Are those done for? And we only
20:47
Speaker 1: got about twenty seconds left. Yeah, they are done for.
20:50
Speaker 1: The good news is their chief and if you like them,
20:52
Speaker 1: go out and put in a big exactly. I was
20:56
Speaker 1: in the market for a Max seven business jet, but
20:59
Speaker 1: maybe I'll us buying old and have it retrofitted. George.
21:04
Speaker 1: Always great to get some time with you. Thank you
21:06
Speaker 1: so much for joining us out of Dallas. George ferguson
21:10
Speaker 1: their senior are space and defense and airlines analysts at
21:14
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