Boeing 737 Max Groundings Fallout; Risk of Government Shutdown Eases
On today's podcast:
1) US air-safety officials retrieved the fuselage panel that blew off during an Alaska Airlines flight on Jan. 5, as authorities begin piecing together evidence to learn what led to the sudden decompression on the almost-new Boeing Co. 737 Max 9 aircraft.
2) US congressional leaders announced a deal on a top-line spending level for the current fiscal year, lessening the chances of a partial government shutdown on Jan. 20.
3) The Pentagon’s failure to notify President Joe Biden that his defense secretary had been hospitalized for four days was the result of a series of errors, including confusion over Lloyd Austin’s wishes and his chief of staff falling ill, people familiar with the matter said.
4) United Launch Alliance’s long-awaited Vulcan rocket lifted off on Monday, heralding a new era for the longtime Pentagon contractor fighting to expand market share against Elon Musk’s SpaceX.
Full Transcript:
Good morning. I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today. We begin with the latest developments involving Boeing after disaster was narrowly averted on an Alaska Airlines flight on Friday. Boring stock right now is down more than eight percent, and we get more from Bloomberg's John Tucker, John and Nathan. The airlines around the globe have been grounding Boeing seven thirty seven Max nine half to a fuselage section on a brand new Alaska Airlines jet blew out during a flight on Friday. This is a door panel that can be sealed or used for access, depending on the configuration. Only luck prevented a more disastrous outcome. The National Transportation Safety Board cheer Jennifer Homandi says Alaska Airlines pilots did report pressurization warning lights on three earlier flights of the two month old plane in question. The auto pressurization fail light that did illuminate in three previous flights, one on December seventh, one on January third, and one on January fourth. A schoolteacher in Portland found the missing fuselage door plug in his backyard. The door plug that blew out was next to seats twenty six A and twenty six P, and just by chance, there was nobody sitting there. The plane did carry one hundred and seventy one passengers, a valuable data usually collected by the so called black box that was a raised Boeing suppliers. Spirit Aerosystems Holdings was the company that installed the planel on the nearly new jet. John Tucker Bloomberg Radio, all right, John, thank you well be now when to turn to the latest developments in the Middle East. Secretary of State Anthony Blincoln is in the region for a fourth time since the Israeli Hamas war broke out. Lincoln is warning the war could quote easily become a wider conflict. He spoke during a news conference in Doha. This is a conflict that could easily a tastasize, causing even more insecurity, more suffering and Secretary of State blank And met with Jordan's Kingdomdullah on Sunday, a day after stops in Turkey and Greece. Well back here in the US here, and the risk of a government shutdown on January twentieth has eased somewhat with word of a deal on spending caps. Bloomberg's Amy Morris has details from Washington. Senate Majority Leader Chuck Schumer and House Speaker Mike Johnson negotiated the bipartisan deal, which caps spending at one point five to nine trillion dollars. Republicans have agreed to a set of budget moves to spare immediate cuts to domestic agency budgets. The deal does not include an agreement to block all conservative policy writers, so there still may be debates over defunding investigations into former President Trump, and while that might cause an impass later, for now, lawmakers have the framework they need to avoid a government shut down this month. The next deadline is February second. In Washington, Amy Morris, Bloomberg Radio, all right, Amy, thank you now. The latest on the health of Lloyd Austin. Bloomberg News has learned the Pentagon's failure to notify prison and in bid and that his Defense secretary had been hospitalized for four days, was the result of a series of errors. They include confusion over Austin's wishes and his chief of staff, Falling Hill from a Republican Congressoman list. Cheney is looking for answers I think they've got some very serious explaining to do. I think that there's a real difference between public transparency and you know, alerting the commander in chief to the fact that Secretary of Defense is in the hospital. Apparently the deputy Secretary was on vacation in Puerto Rico. I think it's inexplicable. We need to know more about exactly what happened there. But that's not the way the Pentagon ought to be conducting business. And that's former Congressome and liszt Cheney. On Saturday, Secretary Austin apologized for failing to inform the public for days, while saying he's on the mend and expects to return to the Pentagon soon. Let's turn to Wall Street now, Karen Bank earnings and the possible Bitcoin ETF will be front and center this week. More from Bloomberg's Charlie Pellett. Friday, we hear from JP Morgan, Chase, City Group, Bank of America, Anne Wells Fargo. Early earnings reports come amid questions about the path of inflation and FED interest rate POTLESE. Cameron Dawson is chief investment officer at New Edge Wealth. The thing that's the biggest challenge for US for earning sestaments in twenty four is the expectation that topline growth will re accelerate in a year where nominal growth because of inflation is expected to decelerate. Also this week, the Securities and Exchange Commission will decide whether to approve an exchange traded fund tied directly to the world's largest cryptocurrency in New York, Charlie Bloomberg Radio, All right, Charlie. Thanks. In company news, Bloomberg News has learned MRK is in advanced talks to acquire cancer drugmaker Harpoon Therapeutics. The price tag about seven hundred million dollars. San Francisco based Harpoon is developing drugs that harness the body's immune system to fight cancer. Shares of Harpoon are up about one hundred percent well. Also, while following Apple Care, which has fallen almost six percent to kick off the new year, Jeffries says Apple's iPhone sales slump in China is deepening and the companies likely to see volumes decline further this year. Apple saw a double digit falled volumes in December. Jeffries forecast a similar decline for twenty twenty four. Checking shares of Apple right now they are a little changed to the downside. And on the economic front, Nathan, inflation will be the focus for our investors. Bloomberg's Any del Judaice has more the Labor Department issues the Consumer Price Index Thursday and the Producer Price Index Friday, both covered December. Rising gasoline prices could have an impact on the household data, says Bloomberg Economics. Looking further out, Bloomberg economics 's US inflation continuing to run above the federal reserves two percent target this year, even with all the raid hikes. Vinny del Judice, Bloomberg Radio, Nathan, thank you. It's time for a look at some of the other stories making news around the world, and for that we're joined by Bloomberg's Amy Morris, Sammy, Good morning, Good morning, Karen. Ukraine suffered a second large scale Russian missile barrage this year as temperatures dropped below freezing in the latest escalation of aerial attacks. Now, this barrage killed one woman and left at least thirty more people wounded. After months of relatively few air strikes, Russia is ramping up bombardment just before the new year, firing hundreds of missiles at cities across Ukraine, including the capital. Meanwhile, Ukraine has been targeting bases and occupied Crimea, with the Air Force saying over the weekend that it destroyed our Russian command post there. Meanwhile, President Joe Biden is set to visit Charleston, South Carolina, today, including a stop at Mother Emmanuel Ame Church, where back in twenty fifteen, nine church goers were shot and killed by a self proclaimed white supremacist. Charlotte City Councilman Malcolm Graham is the brother of one of those victims. Cynthia Graham heard and tells ABC News that when the President visits local black history points of interest, he's sending us strong message of visiting sites like the new Historic African American Museum, he makes a point that history matters, that black history matters. It just not just occurs in the month of February, that black history is also American history. Biden, meanwhile working to shore up support among black voters and Nicki Haley's home state as the Republican governor of former governor of South Carolina, is rising in the polls. Texas Republican Congressman Tony Gonzalez reflected on the third anniversary of the January sixth attack on the Capitol and stands by his labeling of the mob as domestic terrorists, refusing to accept former President trump statements made on the writers describing them as heroes and hostages. They're certainly not heroes. You know. They broke the law, and we have to obey our laws. We are a nation of laws, and they have to obey the laws. Representative Gonzales tells ABC's This Week he does not support Donald Trump's proposed plan to pardon those convicted for their actions that day. Hospitals across the country are telling people mask up flu and COVID nineteen cases are once again on the rise. The viruses have actually been on the incline for the past few weeks. Health officials are predicting infections will increase even more throughout this month. Global news twenty four hours a day and whenever you want it with Bloomberg News. Now. I'm Amy Morris and this is Bloomberg Karen Hurry, Amy, thank you. We do bring you news throughout the day here on Bloomberg Radio. But now you can get the latest news on demand, and that means whenever you want it. Subscribe to Bloomberg News Now to get the latest headlines at the click of a button. Get informed on your schedule. You can listen and subscribe to Bloomberg News Now on the Bloomberg Business app, Bloomberg dot Com plus Apple, Spotify, and anywhere else you get your podcasts. Time now for the Bloomberg Sports Update, here's John stash Hour John Karen. The NFL regular season is over. The playoffs begin on Saturday with a late afternoon game between the Cleveland Browns and the Houston Texans. A team that won only eleven games over the previous three seasons won ten this year, and the Texans won the AFC South when Jacksonville lost its game yesterday at Tennessee twenty eight to twenty. Saturday night, it'll be Miami at Kansas City. The Dolphins blew a lead in the AFC East and last night's lost to Buffalo twenty one to fourteen cost the Dolphins the AFC East, so they're a wildcard and they'll take on the Chiefs Sunday at one Eastern Pittsburgh in Buffalo. Then it's Green Bay at Dallas. The Packers gaining a wildcard spot with a seventeen to nine win over Chicago. The Cowboys won the NFC East. They blew out Washington yesterday thirty eight to ten. Sunday night, it'll be the Rams in Detroit, so Matthew Stafford will face his former team in the wildcard weekend will conclude next Monday night. Slumping Philadelphia at Tampa Bay, Eagles have been a train wreck down the stretch of the season, losing five to the last six. They were beaten by the Giants yesterday twenty seven to ten. The Bucks won the NFC South with a nine to nothing win over Carolina Atlanta Falcons of fired coach Arthur Smith. Will the Patriots part ways with Bill Belichick after twenty five years as coach there? We should find out soon. Michigan and Washington played tonight in the Houston for the National Championship, both teams fourteen and er. Although the Huskies haven't won a game by more than ten points since September, the Wolverines are the famous from coast to coast, from New York to San Francisco, Boston to Washington, DC, nationwide on Syrias Exam. The Bloomberg Business app in Bloomberg dot Com. This is Bloomberg Daybreak. Good morning. I'm Nathan Hager. Airlines around the world are starting to ground their Boeing seven thirty seven Max nine jets after part of the fuselage blew out on a brand new model operated by Alaska Airlines last Friday. It is another blow to Boeing's turnaround efforts after two deadly seven thirty seven Max crashes nearly five years ago. From More, we were joined by Bloomberg News. Aviations are Anthony Palazzo. Anthony, what more do we know about why this mishap happened and where the investigation stands? Hi Nathan, thanks for having me. Yeah, So, we had two developments late late yesterday. One is that the investigators have found the door panel that fell out of the plane. This is a key piece of evidence and they're going to be looking very closely at the condition of that panel to understand why it popped out of the fuselage section. The panel was found in the backyard of a Portland area school teacher. So what could that panel tell us about how this happened? Well, well, what they've what they've said so far is that they've looked at they've looked at the tabs that hold that panel in from the interier of the plane, which was largely undamaged, and that they didn't find a whole lot of They didn't find, you know, a problem there. So they're gonna so they're going to need to keep going to understand exactly how this came off. Those those panels are screwed in with four bolts. They're not in use, although they can be opened from the outside of the plane. Those are essentially openings that are built for an emergency door. But a lot of the a lot of the airlines that use this aircraft, it's a stretched Boeing seven point thirty seven Max Jet, a lot of the airlines don't use those exit doors because they're not needed for the seat configurations that they need. So this is putting more scrutiny on the manufacturing process at Boeing, particularly around the seven thirty seven Max. Is there something particular about the Max nine that could have caused a problem like this as opposed to the seven thirty seven Maxes that were involved in those crashes that we all remember just a few years ago. Yes, well, the well, the the Max nine is a stretched version of the of the core Boeing Max plane, which is called the Max eight. So it's a it's a bit longer, and it can seat more people. But because it can seat more people in its in its most densely packed configurations, it requires more additional safety exits. So a lot of a lot of the low cost carriers that would use that plane would would want to put in more seats and therefore more more emergency exits most carriers. So now the Max eight does not have that that kind of a kind of configuration, doesn't have those exits and doesn't need them. The way that Boeing has done it is that they put in the essentially modular cutouts into the frame so they can make all the fuselages the same, and then when they finish the aircraft they can decide, you know, with the customer whether or not to install those doors or to install plugs in those holes. So now that's the difference. Yeah, right, And now we have a couple of hundred of these seven thirty seven Max nines getting taken out of service, these low cost carriers including Alaska and United grounding these jets. How big a blow potentially could this be for Boeing When it's been trying to put a turnaround plan into place. Well, it's a real setback, you know. The extent to how deep or how long term it ends up being that's all yet to be determined. But certainly investors are selling down the stock. This morning we sell that shares go down about eight point three percent in pre market trading. Their supplier is Spirit Aero Systems, that is a former Boeing unit that makes the fuselage and they they're down about sixteen percent. I think there's been there's been a lot of there's been a lot of speculation about the relationship between Boeing and Spirit and how wise it was to separate the two companies. You know, Spirit's been responsible for a couple of the real supplier glitches that have held that production at Boeing, and they've been weakened financially. Boeing had to reduce some contracts with Spirit, they had to infuse some money into it. So this may be something that that Boeing recon suitors in the longer term. This is Bloomberg Daybreak Today, your morning brief on the stories making news from Wall Street to Washington and beyond. Look for us on your podcast feed. At six am Eastern each morning on Apple, Spotify, and anywhere else you get your podcasts. You can also listen live each morning starting at five am Wall Street Time on Bloomberg eleven three to zero in New York, Bloomberg ninety nine to one in Washington, Bloomberg one oh six to one in Boston, and Bloomberg ninety sixty in San Francisco. Our flagship New York station is also available on your Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. Listen coast to coast on the Bloomberg Business app, seriusxmb iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager and I'm Karen Moscow. Join us again tomorrow morning for all the news you need to start your day right here on Bloomberg Daybreak
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Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:08.400 --> 0:00:12.160 We begin with the latest developments involving Boeing after disaster 0:00:12.400 --> 0:00:16.320 was narrowly averted on an Alaska Airlines flight on Friday. 0:00:16.520 --> 0:00:19.919 Boring stock right now is down more than eight percent, 0:00:20.120 --> 0:00:23.320 and we get more from Bloomberg's John Tucker, John and Nathan. 0:00:23.360 --> 0:00:26.160 The airlines around the globe have been grounding Boeing seven 0:00:26.239 --> 0:00:29.159 thirty seven Max nine half to a fuselage section on 0:00:29.200 --> 0:00:32.640 a brand new Alaska Airlines jet blew out during a 0:00:32.680 --> 0:00:35.400 flight on Friday. This is a door panel that can 0:00:35.400 --> 0:00:38.199 be sealed or used for access, depending on the configuration. 0:00:38.840 --> 0:00:43.040 Only luck prevented a more disastrous outcome. The National Transportation 0:00:43.159 --> 0:00:47.320 Safety Board cheer Jennifer Homandi says Alaska Airlines pilots did 0:00:47.400 --> 0:00:51.640 report pressurization warning lights on three earlier flights of the 0:00:51.680 --> 0:00:53.400 two month old plane in question. 0:00:54.040 --> 0:01:00.440 The auto pressurization fail light that did illuminate in three 0:01:00.480 --> 0:01:07.199 previous flights, one on December seventh, one on January third, 0:01:07.959 --> 0:01:09.960 and one on January fourth. 0:01:10.240 --> 0:01:13.800 A schoolteacher in Portland found the missing fuselage door plug 0:01:13.840 --> 0:01:16.720 in his backyard. The door plug that blew out was 0:01:16.760 --> 0:01:19.240 next to seats twenty six A and twenty six P, 0:01:19.840 --> 0:01:22.560 and just by chance, there was nobody sitting there. The 0:01:22.560 --> 0:01:25.480 plane did carry one hundred and seventy one passengers, a 0:01:25.600 --> 0:01:28.560 valuable data usually collected by the so called black box 0:01:28.880 --> 0:01:33.080 that was a raised Boeing suppliers. Spirit Aerosystems Holdings was 0:01:33.200 --> 0:01:36.640 the company that installed the planel on the nearly new jet. 0:01:36.760 --> 0:01:38.759 John Tucker Bloomberg Radio, all. 0:01:38.720 --> 0:01:40.320 Right, John, thank you well be now when to turn 0:01:40.400 --> 0:01:42.640 to the latest developments in the Middle East. Secretary of 0:01:42.680 --> 0:01:45.240 State Anthony Blincoln is in the region for a fourth 0:01:45.319 --> 0:01:48.840 time since the Israeli Hamas war broke out. Lincoln is 0:01:48.880 --> 0:01:52.400 warning the war could quote easily become a wider conflict. 0:01:52.440 --> 0:01:54.200 He spoke during a news conference in Doha. 0:01:54.760 --> 0:01:58.320 This is a conflict that could easily a tastasize, causing 0:01:58.480 --> 0:02:01.160 even more insecurity, more suffering and. 0:02:01.160 --> 0:02:04.360 Secretary of State blank And met with Jordan's Kingdomdullah on Sunday, 0:02:04.400 --> 0:02:06.720 a day after stops in Turkey and Greece. 0:02:06.960 --> 0:02:08.720 Well back here in the US here, and the risk 0:02:08.800 --> 0:02:12.760 of a government shutdown on January twentieth has eased somewhat 0:02:12.760 --> 0:02:15.840 with word of a deal on spending caps. Bloomberg's Amy 0:02:15.840 --> 0:02:17.440 Morris has details from Washington. 0:02:17.880 --> 0:02:21.200 Senate Majority Leader Chuck Schumer and House Speaker Mike Johnson 0:02:21.400 --> 0:02:24.839 negotiated the bipartisan deal, which caps spending at one point 0:02:24.919 --> 0:02:28.120 five to nine trillion dollars. Republicans have agreed to a 0:02:28.160 --> 0:02:31.160 set of budget moves to spare immediate cuts to domestic 0:02:31.160 --> 0:02:34.640 agency budgets. The deal does not include an agreement to 0:02:34.639 --> 0:02:37.720 block all conservative policy writers, so there still may be 0:02:37.880 --> 0:02:41.800 debates over defunding investigations into former President Trump, and while 0:02:41.880 --> 0:02:45.200 that might cause an impass later, for now, lawmakers have 0:02:45.280 --> 0:02:47.799 the framework they need to avoid a government shut down 0:02:47.800 --> 0:02:51.800 this month. The next deadline is February second. In Washington, 0:02:51.800 --> 0:02:53.400 Amy Morris, Bloomberg Radio. 0:02:53.320 --> 0:02:55.400 All right, Amy, thank you now. The latest on the 0:02:55.440 --> 0:02:58.760 health of Lloyd Austin. Bloomberg News has learned the Pentagon's 0:02:58.800 --> 0:03:00.920 failure to notify prison and in bid and that his 0:03:01.000 --> 0:03:04.480 Defense secretary had been hospitalized for four days, was the 0:03:04.520 --> 0:03:07.680 result of a series of errors. They include confusion over 0:03:07.680 --> 0:03:10.880 Austin's wishes and his chief of staff, Falling Hill from 0:03:10.880 --> 0:03:14.360 a Republican Congressoman list. Cheney is looking for answers. 0:03:14.080 --> 0:03:16.600 I think they've got some very serious explaining to do. 0:03:16.800 --> 0:03:20.000 I think that there's a real difference between public transparency 0:03:20.280 --> 0:03:23.200 and you know, alerting the commander in chief to the 0:03:23.200 --> 0:03:25.840 fact that Secretary of Defense is in the hospital. Apparently 0:03:25.840 --> 0:03:29.640 the deputy Secretary was on vacation in Puerto Rico. I 0:03:29.639 --> 0:03:32.840 think it's inexplicable. We need to know more about exactly 0:03:32.840 --> 0:03:34.519 what happened there. But that's not the way the Pentagon 0:03:34.560 --> 0:03:35.680 ought to be conducting business. 0:03:35.960 --> 0:03:39.200 And that's former Congressome and liszt Cheney. On Saturday, Secretary 0:03:39.280 --> 0:03:42.320 Austin apologized for failing to inform the public for days, 0:03:42.400 --> 0:03:45.080 while saying he's on the mend and expects to return 0:03:45.120 --> 0:03:46.240 to the Pentagon soon. 0:03:46.520 --> 0:03:49.200 Let's turn to Wall Street now, Karen Bank earnings and 0:03:49.240 --> 0:03:52.880 the possible Bitcoin ETF will be front and center this week. 0:03:52.960 --> 0:03:54.720 More from Bloomberg's Charlie Pellett. 0:03:54.960 --> 0:03:57.960 Friday, we hear from JP Morgan, Chase, City Group, Bank 0:03:58.000 --> 0:04:01.680 of America, Anne Wells Fargo. Early earnings reports come amid 0:04:01.760 --> 0:04:05.880 questions about the path of inflation and FED interest rate POTLESE. 0:04:06.360 --> 0:04:10.240 Cameron Dawson is chief investment officer at New Edge Wealth. 0:04:10.320 --> 0:04:12.520 The thing that's the biggest challenge for US for earning 0:04:12.560 --> 0:04:16.400 sestaments in twenty four is the expectation that topline growth 0:04:16.400 --> 0:04:20.440 will re accelerate in a year where nominal growth because 0:04:20.480 --> 0:04:23.480 of inflation is expected to decelerate. 0:04:23.640 --> 0:04:27.640 Also this week, the Securities and Exchange Commission will decide 0:04:27.800 --> 0:04:31.960 whether to approve an exchange traded fund tied directly to 0:04:32.040 --> 0:04:37.080 the world's largest cryptocurrency in New York, Charlie Bloomberg. 0:04:36.680 --> 0:04:38.320 Radio, All right, Charlie. Thanks. 0:04:38.320 --> 0:04:41.200 In company news, Bloomberg News has learned MRK is in 0:04:41.320 --> 0:04:45.840 advanced talks to acquire cancer drugmaker Harpoon Therapeutics. The price 0:04:45.880 --> 0:04:49.880 tag about seven hundred million dollars. San Francisco based Harpoon 0:04:49.960 --> 0:04:52.560 is developing drugs that harness the body's immune system to 0:04:52.560 --> 0:04:56.400 fight cancer. Shares of Harpoon are up about one hundred 0:04:56.480 --> 0:04:58.040 percent well. 0:04:58.080 --> 0:05:01.400 Also, while following Apple Care, which has fallen almost six 0:05:01.480 --> 0:05:05.440 percent to kick off the new year, Jeffries says Apple's 0:05:05.480 --> 0:05:08.760 iPhone sales slump in China is deepening and the companies 0:05:08.839 --> 0:05:12.000 likely to see volumes decline further this year. Apple saw 0:05:12.000 --> 0:05:15.200 a double digit falled volumes in December. Jeffries forecast a 0:05:15.279 --> 0:05:18.520 similar decline for twenty twenty four. Checking shares of Apple 0:05:18.600 --> 0:05:20.800 right now they are a little changed to the downside. 0:05:21.000 --> 0:05:23.159 And on the economic front, Nathan, inflation will be the 0:05:23.200 --> 0:05:26.320 focus for our investors. Bloomberg's Any del Judaice has more. 0:05:26.240 --> 0:05:29.760 The Labor Department issues the Consumer Price Index Thursday and 0:05:29.800 --> 0:05:34.800 the Producer Price Index Friday, both covered December. Rising gasoline 0:05:34.839 --> 0:05:37.839 prices could have an impact on the household data, says 0:05:37.839 --> 0:05:39.120 Bloomberg Economics. 0:05:39.360 --> 0:05:41.320 Looking further out, Bloomberg. 0:05:40.880 --> 0:05:44.640 Economics 's US inflation continuing to run above the federal 0:05:44.680 --> 0:05:47.880 reserves two percent target this year, even with all the 0:05:47.960 --> 0:05:54.440 raid hikes. Vinny del Judice, Bloomberg Radio. 0:05:56.080 --> 0:05:57.480 Nathan, thank you. It's time for a look at some 0:05:57.560 --> 0:05:59.520 of the other stories making news around the world, and 0:05:59.560 --> 0:06:02.640 for that we're joined by Bloomberg's Amy Morris, Sammy, Good morning. 0:06:02.960 --> 0:06:06.840 Good morning, Karen. Ukraine suffered a second large scale Russian 0:06:06.880 --> 0:06:10.640 missile barrage this year as temperatures dropped below freezing in 0:06:10.680 --> 0:06:14.119 the latest escalation of aerial attacks. Now, this barrage killed 0:06:14.120 --> 0:06:16.560 one woman and left at least thirty more people wounded. 0:06:16.760 --> 0:06:20.680 After months of relatively few air strikes, Russia is ramping 0:06:20.760 --> 0:06:24.320 up bombardment just before the new year, firing hundreds of 0:06:24.360 --> 0:06:28.520 missiles at cities across Ukraine, including the capital. Meanwhile, Ukraine 0:06:28.520 --> 0:06:31.479 has been targeting bases and occupied Crimea, with the Air 0:06:31.480 --> 0:06:34.560 Force saying over the weekend that it destroyed our Russian 0:06:34.600 --> 0:06:38.359 command post there. Meanwhile, President Joe Biden is set to 0:06:38.440 --> 0:06:41.800 visit Charleston, South Carolina, today, including a stop at Mother 0:06:41.880 --> 0:06:45.360 Emmanuel Ame Church, where back in twenty fifteen, nine church 0:06:45.400 --> 0:06:48.640 goers were shot and killed by a self proclaimed white supremacist. 0:06:48.960 --> 0:06:52.560 Charlotte City Councilman Malcolm Graham is the brother of one 0:06:52.560 --> 0:06:55.840 of those victims. Cynthia Graham heard and tells ABC News 0:06:55.880 --> 0:06:58.920 that when the President visits local black history points of interest, 0:06:59.279 --> 0:07:00.800 he's sending us strong message of. 0:07:00.920 --> 0:07:06.000 Visiting sites like the new Historic African American Museum, he 0:07:07.240 --> 0:07:12.240 makes a point that history matters, that black history matters. 0:07:12.840 --> 0:07:16.480 It just not just occurs in the month of February, 0:07:17.320 --> 0:07:19.880 that black history is also American history. 0:07:20.120 --> 0:07:22.920 Biden, meanwhile working to shore up support among black voters 0:07:22.920 --> 0:07:25.880 and Nicki Haley's home state as the Republican governor of 0:07:25.960 --> 0:07:28.480 former governor of South Carolina, is rising in the polls. 0:07:28.880 --> 0:07:32.920 Texas Republican Congressman Tony Gonzalez reflected on the third anniversary 0:07:33.200 --> 0:07:36.280 of the January sixth attack on the Capitol and stands 0:07:36.320 --> 0:07:40.040 by his labeling of the mob as domestic terrorists, refusing 0:07:40.080 --> 0:07:42.880 to accept former President trump statements made on the writers 0:07:43.200 --> 0:07:45.560 describing them as heroes and hostages. 0:07:45.840 --> 0:07:47.080 They're certainly not heroes. 0:07:47.240 --> 0:07:48.080 You know. 0:07:48.520 --> 0:07:52.560 They broke the law, and we have to obey our laws. 0:07:52.600 --> 0:07:54.600 We are a nation of laws, and they have to 0:07:54.640 --> 0:07:55.480 obey the laws. 0:07:55.840 --> 0:07:59.760 Representative Gonzales tells ABC's This Week he does not support 0:08:00.000 --> 0:08:03.120 Donald Trump's proposed plan to pardon those convicted for their 0:08:03.120 --> 0:08:06.960 actions that day. Hospitals across the country are telling people 0:08:07.480 --> 0:08:10.920 mask up flu and COVID nineteen cases are once again 0:08:11.040 --> 0:08:14.240 on the rise. The viruses have actually been on the 0:08:14.280 --> 0:08:17.320 incline for the past few weeks. Health officials are predicting 0:08:17.320 --> 0:08:21.160 infections will increase even more throughout this month. Global news 0:08:21.200 --> 0:08:23.120 twenty four hours a day and whenever you want it 0:08:23.120 --> 0:08:24.040 with Bloomberg News. 0:08:24.080 --> 0:08:24.280 Now. 0:08:24.480 --> 0:08:27.160 I'm Amy Morris and this is Bloomberg Karen. 0:08:27.120 --> 0:08:29.200 Hurry, Amy, thank you. We do bring you news throughout 0:08:29.200 --> 0:08:32.079 the day here on Bloomberg Radio. But now you can 0:08:32.080 --> 0:08:34.920 get the latest news on demand, and that means whenever 0:08:35.000 --> 0:08:37.840 you want it. Subscribe to Bloomberg News Now to get 0:08:37.840 --> 0:08:40.320 the latest headlines at the click of a button. Get 0:08:40.360 --> 0:08:43.680 informed on your schedule. You can listen and subscribe to 0:08:43.720 --> 0:08:47.600 Bloomberg News Now on the Bloomberg Business app, Bloomberg dot 0:08:47.640 --> 0:08:51.800 Com plus Apple, Spotify, and anywhere else you get your podcasts. 0:08:56.160 --> 0:08:59.200 Time now for the Bloomberg Sports Update, here's John stash 0:08:59.200 --> 0:09:00.640 Hour John Karen. 0:09:00.640 --> 0:09:03.280 The NFL regular season is over. The playoffs begin on 0:09:03.440 --> 0:09:06.520 Saturday with a late afternoon game between the Cleveland Browns 0:09:06.559 --> 0:09:09.480 and the Houston Texans. A team that won only eleven 0:09:09.520 --> 0:09:12.880 games over the previous three seasons won ten this year, 0:09:12.920 --> 0:09:16.400 and the Texans won the AFC South when Jacksonville lost 0:09:16.480 --> 0:09:20.040 its game yesterday at Tennessee twenty eight to twenty. Saturday night, 0:09:20.040 --> 0:09:22.800 it'll be Miami at Kansas City. The Dolphins blew a 0:09:22.880 --> 0:09:25.960 lead in the AFC East and last night's lost to 0:09:26.040 --> 0:09:29.960 Buffalo twenty one to fourteen cost the Dolphins the AFC East, 0:09:29.960 --> 0:09:32.600 so they're a wildcard and they'll take on the Chiefs 0:09:32.679 --> 0:09:36.240 Sunday at one Eastern Pittsburgh in Buffalo. Then it's Green 0:09:36.320 --> 0:09:39.319 Bay at Dallas. The Packers gaining a wildcard spot with 0:09:39.440 --> 0:09:42.360 a seventeen to nine win over Chicago. The Cowboys won 0:09:42.760 --> 0:09:45.800 the NFC East. They blew out Washington yesterday thirty eight 0:09:45.840 --> 0:09:49.599 to ten. Sunday night, it'll be the Rams in Detroit, 0:09:49.679 --> 0:09:52.079 so Matthew Stafford will face his former team in the 0:09:52.120 --> 0:09:56.760 wildcard weekend will conclude next Monday night. Slumping Philadelphia at 0:09:56.800 --> 0:09:58.800 Tampa Bay, Eagles have been a train wreck down the 0:09:58.800 --> 0:10:00.960 stretch of the season, losing five to the last six. 0:10:01.000 --> 0:10:03.600 They were beaten by the Giants yesterday twenty seven to ten. 0:10:04.000 --> 0:10:06.480 The Bucks won the NFC South with a nine to 0:10:06.480 --> 0:10:10.800 nothing win over Carolina Atlanta Falcons of fired coach Arthur Smith. 0:10:11.280 --> 0:10:14.400 Will the Patriots part ways with Bill Belichick after twenty 0:10:14.400 --> 0:10:17.199 five years as coach there? We should find out soon. 0:10:17.679 --> 0:10:19.880 Michigan and Washington played tonight in the Houston for the 0:10:20.000 --> 0:10:23.319 National Championship, both teams fourteen and er. Although the Huskies 0:10:23.600 --> 0:10:26.280 haven't won a game by more than ten points since September, 0:10:26.320 --> 0:10:28.160 the Wolverines are the famous. 0:10:30.320 --> 0:10:33.319 From coast to coast, from New York to San Francisco, 0:10:33.640 --> 0:10:37.480 Boston to Washington, DC, nationwide on Syrias Exam. 0:10:37.640 --> 0:10:41.280 The Bloomberg Business app in Bloomberg dot Com. This is 0:10:41.360 --> 0:10:42.520 Bloomberg Daybreak. 0:10:43.600 --> 0:10:46.720 Good morning. I'm Nathan Hager. Airlines around the world are 0:10:46.760 --> 0:10:49.840 starting to ground their Boeing seven thirty seven Max nine 0:10:49.920 --> 0:10:53.119 jets after part of the fuselage blew out on a 0:10:53.160 --> 0:10:56.680 brand new model operated by Alaska Airlines last Friday. It 0:10:56.800 --> 0:11:00.840 is another blow to Boeing's turnaround efforts after two deadly 0:11:01.000 --> 0:11:04.600 seven thirty seven Max crashes nearly five years ago. From More, 0:11:04.679 --> 0:11:08.960 we were joined by Bloomberg News. Aviations are Anthony Palazzo. Anthony, 0:11:09.080 --> 0:11:12.319 what more do we know about why this mishap happened 0:11:12.360 --> 0:11:14.640 and where the investigation stands? 0:11:15.760 --> 0:11:17.320 Hi Nathan, thanks for having me. 0:11:18.679 --> 0:11:23.839 Yeah, So, we had two developments late late yesterday. One 0:11:24.040 --> 0:11:29.280 is that the investigators have found the door panel that 0:11:29.320 --> 0:11:30.360 fell out of the plane. 0:11:31.240 --> 0:11:33.600 This is a key piece of evidence. 0:11:34.800 --> 0:11:37.679 And they're going to be looking very closely at the 0:11:37.720 --> 0:11:40.840 condition of that panel to understand why it popped out 0:11:41.400 --> 0:11:45.440 of the fuselage section. The panel was found in the 0:11:45.480 --> 0:11:48.840 backyard of a Portland area school teacher. 0:11:50.520 --> 0:11:54.120 So what could that panel tell us about how this happened? 0:11:55.480 --> 0:11:58.800 Well, well, what they've what they've said so far is 0:11:58.840 --> 0:12:02.559 that they've looked at they've looked at the tabs that 0:12:02.720 --> 0:12:05.840 hold that panel in from the interier of the plane, 0:12:05.880 --> 0:12:10.600 which was largely undamaged, and that they didn't find a 0:12:10.600 --> 0:12:16.080 whole lot of They didn't find, you know, a problem there. 0:12:16.760 --> 0:12:19.360 So they're gonna so they're going to need to keep 0:12:19.400 --> 0:12:23.160 going to understand exactly how this came off. Those those 0:12:23.200 --> 0:12:27.720 panels are screwed in with four bolts. They're not in use, 0:12:27.800 --> 0:12:30.880 although they can be opened from the outside of the plane. 0:12:31.480 --> 0:12:35.640 Those are essentially openings that are built for an emergency door. 0:12:35.720 --> 0:12:38.359 But a lot of the a lot of the airlines 0:12:38.440 --> 0:12:43.400 that use this aircraft, it's a stretched Boeing seven point 0:12:43.400 --> 0:12:47.480 thirty seven Max Jet, a lot of the airlines don't 0:12:47.600 --> 0:12:51.160 use those exit doors because they're not needed for the 0:12:51.200 --> 0:12:53.000 seat configurations that they need. 0:12:53.320 --> 0:12:57.400 So this is putting more scrutiny on the manufacturing process 0:12:57.640 --> 0:13:01.240 at Boeing, particularly around the seven thirty seven Max. Is 0:13:01.280 --> 0:13:04.439 there something particular about the Max nine that could have 0:13:04.520 --> 0:13:07.320 caused a problem like this as opposed to the seven 0:13:07.400 --> 0:13:10.080 thirty seven Maxes that were involved in those crashes that 0:13:10.120 --> 0:13:11.720 we all remember just a few years ago. 0:13:13.440 --> 0:13:16.120 Yes, well, the well, the the Max nine is a 0:13:16.400 --> 0:13:21.120 stretched version of the of the core Boeing Max plane, 0:13:21.120 --> 0:13:24.040 which is called the Max eight. So it's a it's 0:13:24.080 --> 0:13:27.440 a bit longer, and it can seat more people. But 0:13:27.800 --> 0:13:32.720 because it can seat more people in its in its 0:13:32.800 --> 0:13:40.800 most densely packed configurations, it requires more additional safety exits. 0:13:41.080 --> 0:13:43.760 So a lot of a lot of the low cost. 0:13:43.640 --> 0:13:46.560 Carriers that would use that plane would would want to 0:13:46.559 --> 0:13:52.800 put in more seats and therefore more more emergency exits 0:13:53.440 --> 0:13:54.520 most carriers. 0:13:54.600 --> 0:13:57.640 So now the Max eight does not have. 0:13:57.520 --> 0:14:02.480 That that kind of a kind of configuration, doesn't have 0:14:02.559 --> 0:14:06.079 those exits and doesn't need them. The way that Boeing 0:14:06.120 --> 0:14:09.920 has done it is that they put in the essentially 0:14:10.040 --> 0:14:13.920 modular cutouts into the frame so they can make all 0:14:13.960 --> 0:14:17.840 the fuselages the same, and then when they finish the 0:14:17.880 --> 0:14:21.560 aircraft they can decide, you know, with the customer whether 0:14:21.680 --> 0:14:26.800 or not to install those doors or to install plugs. 0:14:26.160 --> 0:14:28.520 In those holes. So now that's the difference. 0:14:28.760 --> 0:14:30.960 Yeah, right, And now we have a couple of hundred 0:14:31.000 --> 0:14:34.080 of these seven thirty seven Max nines getting taken out 0:14:34.080 --> 0:14:37.680 of service, these low cost carriers including Alaska and United 0:14:38.040 --> 0:14:40.960 grounding these jets. How big a blow potentially could this 0:14:41.200 --> 0:14:44.080 be for Boeing When it's been trying to put a 0:14:44.120 --> 0:14:45.560 turnaround plan into place. 0:14:46.920 --> 0:14:50.680 Well, it's a real setback, you know. 0:14:50.800 --> 0:14:55.600 The extent to how deep or how long term it 0:14:56.760 --> 0:14:59.920 ends up being that's all yet to be determined. 0:15:00.280 --> 0:15:03.920 But certainly investors are selling down the stock. 0:15:04.000 --> 0:15:07.520 This morning we sell that shares go down about eight 0:15:07.520 --> 0:15:11.400 point three percent in pre market trading. Their supplier is 0:15:11.520 --> 0:15:15.640 Spirit Aero Systems, that is a former Boeing unit that 0:15:15.760 --> 0:15:19.320 makes the fuselage and they they're down about sixteen percent. 0:15:21.160 --> 0:15:25.160 I think there's been there's been a lot of there's 0:15:25.160 --> 0:15:28.840 been a lot of speculation about the relationship between Boeing 0:15:29.000 --> 0:15:33.840 and Spirit and how wise it was to separate the 0:15:33.880 --> 0:15:39.600 two companies. You know, Spirit's been responsible for a couple 0:15:39.640 --> 0:15:43.280 of the real supplier glitches that have held that production 0:15:43.400 --> 0:15:47.920 at Boeing, and they've been weakened financially. Boeing had to 0:15:49.480 --> 0:15:53.600 reduce some contracts with Spirit, they had to infuse some 0:15:53.680 --> 0:15:59.000 money into it. So this may be something that that 0:15:59.200 --> 0:16:02.840 Boeing recon suitors in the longer term. 0:16:02.880 --> 0:16:05.920 This is Bloomberg Daybreak Today, your morning brief on the 0:16:05.960 --> 0:16:09.400 stories making news from Wall Street to Washington and beyond. 0:16:09.680 --> 0:16:12.440 Look for us on your podcast feed. At six am 0:16:12.520 --> 0:16:16.160 Eastern each morning on Apple, Spotify, and anywhere else you 0:16:16.240 --> 0:16:17.400 get your podcasts. 0:16:17.520 --> 0:16:20.240 You can also listen live each morning starting at five 0:16:20.280 --> 0:16:22.920 am Wall Street Time on Bloomberg eleven three to zero 0:16:22.920 --> 0:16:25.800 in New York, Bloomberg ninety nine to one in Washington, 0:16:25.880 --> 0:16:28.720 Bloomberg one oh six to one in Boston, and Bloomberg 0:16:28.840 --> 0:16:30.520 ninety sixty in San Francisco. 0:16:30.880 --> 0:16:34.040 Our flagship New York station is also available on your 0:16:34.080 --> 0:16:39.520 Amazon Alexa devices. Just say Alexa Play Bloomberg eleven thirty plus. 0:16:39.560 --> 0:16:43.120 Listen coast to coast on the Bloomberg Business app, seriusxmb 0:16:43.280 --> 0:16:47.360 iHeartRadio app, and on Bloomberg dot Com. I'm Nathan Hager. 0:16:47.120 --> 0:16:50.240 And I'm Karen Moscow. Join us again tomorrow morning for 0:16:50.400 --> 0:16:52.880 all the news you need to start your day right 0:16:52.920 --> 0:17:04.000 here on Bloomberg Daybreak