Boeing Workers Walk Out; Trump Says No More Debates

Bloomberg Audio Studios, podcasts, radio news. Good morning, I'm Nathan 0:00:10.920 --> 0:00:13.880 Hager and I'm Karen Moscow. Here are the stories we're 0:00:13.920 --> 0:00:14.720 following today. 0:00:14.920 --> 0:00:20.239 Boeing shares are lower by four percent with labor unrest 0:00:20.480 --> 0:00:23.560 for the planemaker. For the first time in sixteen years, 0:00:24.000 --> 0:00:31.160 factory workers at Boeing have walked off the job. Members 0:00:31.200 --> 0:00:35.559 of the International Association Machinists and Aerospace Workers, which represents 0:00:35.680 --> 0:00:39.320 straw three thousand Boeing employees across the West Coast, have 0:00:39.440 --> 0:00:43.120 voted overwhelmingly to do what you just heard, to strike. 0:00:43.200 --> 0:00:46.879 Bloomberg Aviation reporter Danny Lee says those members ignored a 0:00:46.920 --> 0:00:51.080 plea for peace by new Boeing chief executive officer Calle Ortberg. 0:00:51.840 --> 0:00:53.960 This is a new low for buying, considering all the 0:00:54.000 --> 0:00:56.600 things I've happened to it over the past several months, 0:00:56.600 --> 0:00:58.920 and the fact that Kelly Opberg was brought in to 0:00:59.200 --> 0:01:01.480 fix all the shoes that are piling up for Boeing. 0:01:01.760 --> 0:01:03.880 This is going to be a true test of his resolve, 0:01:04.240 --> 0:01:07.760 his ability to show that for the board who hide him, 0:01:08.040 --> 0:01:10.680 how quickly he can fix things. Because he had a 0:01:10.720 --> 0:01:13.600 strong track record at his previous company, So what can 0:01:13.640 --> 0:01:16.880 he do to perhaps personally intervene and knock some sense 0:01:16.920 --> 0:01:21.039 into the previous negotiating talks to see what more can 0:01:21.080 --> 0:01:23.640 Boeing off of. Frankly, the twenty five percent over four 0:01:23.720 --> 0:01:26.360 years clearly not enough for the work is particularly the 0:01:26.360 --> 0:01:28.319 fact that the annual bonus was being taken away. 0:01:29.240 --> 0:01:32.959 Bloomberg Aviation reporter Danny lie says ninety six percent of 0:01:33.080 --> 0:01:36.080 union members supported the strike. Boeing shares, as I said, 0:01:36.080 --> 0:01:38.080 are down nearly four percent this morning. 0:01:38.520 --> 0:01:41.399 Well, Nathan, We're also focusing on the FED this morning 0:01:41.400 --> 0:01:44.240 ahead of next week's rate decision. Former Bank of New 0:01:44.319 --> 0:01:47.720 York FED president Bill Dudley says their scope for a 0:01:47.800 --> 0:01:51.240 half point rate cut. Speaking at a forum organized by 0:01:51.280 --> 0:01:54.720 the Bretton Woods Committee in Singapore, the Bloomberg Opinion columnists 0:01:54.720 --> 0:01:58.240 suggested this slowing jobs market is now a more serious 0:01:58.280 --> 0:02:03.000 concern than inflation. However, Mohammad Alarian, Queen's College Cambridge president 0:02:03.080 --> 0:02:06.800 and also a Bloomberg Opinion columnist, is expecting a quarter 0:02:06.880 --> 0:02:07.520 point cut. 0:02:07.880 --> 0:02:11.560 We won't get dramatic series of fifties, but we will 0:02:11.560 --> 0:02:15.320 be measured for the wrong reason. Will be measured because 0:02:15.880 --> 0:02:19.200 the FED will remain over reactive, meaning it will be 0:02:19.240 --> 0:02:23.000 two data dependent. I think the key issue about Greenspan, 0:02:23.480 --> 0:02:27.120 Bernanke and Yellen when they were willing to lean forward 0:02:27.200 --> 0:02:30.360 and take a view of the economy. Chair Powell is 0:02:30.400 --> 0:02:31.760 not there yet. 0:02:31.440 --> 0:02:34.360 And Mohammed Larian speaking of the Bloomberg's Tom Keen and 0:02:34.400 --> 0:02:37.880 Paul Sweeney yesterday, the Fed decision comes on Wednesday. For 0:02:37.960 --> 0:02:41.480 full Fed coverage, catch our special edition of Bloomberg Surveillance. 0:02:41.760 --> 0:02:44.800 The Fed decides at one thirty pm Wall Street Time 0:02:44.880 --> 0:02:48.040 this Wednesday on Bloomberg Radio and Television. 0:02:48.160 --> 0:02:50.799 Then Karen Ahead of that Fed decision, Gold has hit 0:02:50.840 --> 0:02:53.200 another record high in Fact Bully and is on track 0:02:53.240 --> 0:02:56.880 for a weekly gain of almost three percent. As for equities, 0:02:56.880 --> 0:02:59.200 they've rallied every day this week. The S and P 0:02:59.360 --> 0:03:02.760 five hundred rows three quarters of one percent yesterday. Nadia 0:03:02.840 --> 0:03:05.399 Lovell is Senior US S equity strategist of Global Wealth 0:03:05.440 --> 0:03:08.360 Management at UBS. She says it is still a good 0:03:08.360 --> 0:03:09.560 time to buy stocks. 0:03:09.840 --> 0:03:12.200 You've got to put cash to work. I mean, the 0:03:12.320 --> 0:03:14.519 fact is about to cut. We know that debate is 0:03:14.560 --> 0:03:17.400 still there all atus twenty five basis points or fifty 0:03:17.440 --> 0:03:19.480 basis points, but the cut of cycle is starting, and 0:03:19.639 --> 0:03:21.760 therefore you know what you're going to be able to 0:03:21.840 --> 0:03:24.200 yield in cash is going to continue to go down, 0:03:24.280 --> 0:03:26.640 and so we would look to be adding some about 0:03:26.680 --> 0:03:29.800 cash into quality equities and also have bit into fixed income. 0:03:30.400 --> 0:03:30.640 Natti. 0:03:30.680 --> 0:03:32.760 A level at UBS has a year end target of 0:03:32.800 --> 0:03:35.680 fifty nine hundred for the SMP five hundred. That's five 0:03:35.760 --> 0:03:37.480 percent higher than yesterday's close. 0:03:38.160 --> 0:03:41.200 Well Nathan, some stocks on the move this morning. Shares 0:03:41.240 --> 0:03:44.320 of Adobe down more than eight percent. The company known 0:03:44.320 --> 0:03:48.200 for its software for creative professionals, gave a revenue forecast 0:03:48.240 --> 0:03:51.880 for the current quarter that missed Wall Street estimates. That's 0:03:51.880 --> 0:03:55.360 fueling investor in patience for Adobe's AI tools to begin 0:03:55.600 --> 0:03:56.560 generating sales. 0:03:56.960 --> 0:03:59.440 On the flip side, Careen. Shares of Oracle are up 0:03:59.560 --> 0:04:02.560 six The software maker says annual revenue will rise to 0:04:02.560 --> 0:04:04.720 at least one hundred and four billion dollars in fiscal 0:04:04.720 --> 0:04:08.080 twenty twenty nine. Analysts say it's an optimistic signal on 0:04:08.200 --> 0:04:11.520 the growth prospects of Oracle's cloud infrastructure business. 0:04:11.880 --> 0:04:14.120 Well Nathan, Turning to the race for the White House, 0:04:14.200 --> 0:04:17.000 If you've been wondering whether there will be another debate 0:04:17.040 --> 0:04:20.599 between former President Donald Trump and Vice President Kamala Harris. 0:04:20.800 --> 0:04:23.760 Bloomberg's Amy Morris tells us, we have a pretty good 0:04:23.800 --> 0:04:26.520 indication now it is not going to happen. 0:04:27.080 --> 0:04:29.760 Donald Trump ruled out another debate with an all caps 0:04:29.839 --> 0:04:33.760 declaration on truth social quote. There will be no third debate. 0:04:34.160 --> 0:04:36.720 He insists he won their first debate, so he doesn't 0:04:36.720 --> 0:04:39.880 need to participate in another one. Vice President Kamala Harris 0:04:39.880 --> 0:04:42.719 spoke at a campaign event in Charlotte, North Carolina, shortly 0:04:42.760 --> 0:04:44.039 after Trump's statement. 0:04:43.920 --> 0:04:46.359 I believe we owe it to the voters to have 0:04:46.440 --> 0:04:47.280 another debate. 0:04:47.480 --> 0:04:49.880 It is not clear if the Vice president was directly 0:04:49.920 --> 0:04:53.720 responding to Trump's post. Trump and Harris's running mates, Republican 0:04:53.760 --> 0:04:57.960 Senator jd Vance of Ohio and Democratic Minnesota Governor Tim Walls, 0:04:58.240 --> 0:05:01.400 are slated to hold their owned on October first, with 0:05:01.520 --> 0:05:05.040 CBS News in Washington. Anymore, as Bloomberg Radio right. 0:05:04.960 --> 0:05:07.520 Amy, thank you sinking with politics. Donald Trump's making a 0:05:07.560 --> 0:05:11.560 new pledge if he's elected, no tax is on overtime pay. 0:05:11.680 --> 0:05:14.320 Bloomberg said, Baxter has the story. 0:05:14.400 --> 0:05:16.960 Seeking to gain footing after the shaky debate. This is 0:05:17.000 --> 0:05:20.039 an effort by him and his strategist to change the 0:05:20.120 --> 0:05:24.320 focus from debates and hit the road. To rallies and promises, 0:05:24.680 --> 0:05:27.160 as when in Arizona. Aimed at a blue collar workers 0:05:27.160 --> 0:05:29.599 that he needs to win, He says, the people who 0:05:29.640 --> 0:05:33.400 work overtime are among the hardest working citizens in our country. 0:05:33.920 --> 0:05:36.040 Not Over the last three months, Trump has rolled out 0:05:36.040 --> 0:05:40.080 a steady drumbeat of tax cut plans. He has not 0:05:40.240 --> 0:05:43.159 explained yet how to pay for them, and a Bloomberg 0:05:43.200 --> 0:05:46.200 review says they would add more than ten point five 0:05:46.360 --> 0:05:49.920 trillion dollars to the national debt over the next ten years. 0:05:50.640 --> 0:05:52.200 Ed Baxter, Bloomberg. 0:05:51.839 --> 0:05:55.039 Radio, all right, thank you. On Nippon Steele in United States, 0:05:55.040 --> 0:05:58.000 Steel sent a letter to President Joe Biden earlier this 0:05:58.160 --> 0:06:02.159 month on the Japanese companies propose takeover of its American peer. 0:06:02.279 --> 0:06:05.920 The letter was signed by both company CEOs. Nippon Steele 0:06:06.040 --> 0:06:08.520 has been mounting a last ditch attempt to try and 0:06:08.640 --> 0:06:12.320 muster support for the fourteen point one billion dollar takeover attempt, 0:06:12.480 --> 0:06:16.240 which faces widespread political opposition in the US ahead of 0:06:16.240 --> 0:06:22.400 the presidential election in November. Time now for look at 0:06:22.400 --> 0:06:24.160 some of the other stories making news in New York 0:06:24.200 --> 0:06:26.479 and around the world. For that, we're joined by Bloomberg's 0:06:26.520 --> 0:06:28.040 John Tucker, John Good morning. 0:06:28.000 --> 0:06:31.560 And good morning Karen. The Justice Department preparing criminal charges 0:06:31.880 --> 0:06:35.239 in connection with an Iranian hack that targeted Donald Trump's 0:06:35.279 --> 0:06:39.360 presidential campaign. Let's get to tales from Washington, Bloomberg, Steam podisc. 0:06:39.680 --> 0:06:43.640 The prospect of criminal charges comes as the Justice Department 0:06:43.680 --> 0:06:47.719 has raised alarms about aggressive efforts by countries, including Russia 0:06:47.720 --> 0:06:51.599 and Iran, to medal in the presidential election. It was 0:06:51.640 --> 0:06:55.400 not immediately clear when the charges might be announced. Assistant 0:06:55.440 --> 0:06:59.920 Attorney General Matthew Olsen, the Justice Department's top national security official, 0:07:00.120 --> 0:07:03.520 said in a speech Thursday, Iran is making a greater 0:07:03.760 --> 0:07:06.960 effort to influence this year's election than it has in 0:07:07.080 --> 0:07:11.600 prior election cycles, and that Iranian activity is growing increasingly 0:07:11.640 --> 0:07:17.160 aggressive as this electioneers in Washington. Steve Potosk Bloomberg Radio. 0:07:17.320 --> 0:07:20.800 UK Prime Minister Keir Starmer has arrived in Washington. It 0:07:20.840 --> 0:07:23.560 comes ahead of a meeting with President Biden. Sources are 0:07:23.600 --> 0:07:27.160 telling Bloomberg the US and UK are discussing allowing Kiev 0:07:27.240 --> 0:07:32.239 to conduct strikes inside Russia using British cruise missiles backed 0:07:32.280 --> 0:07:36.800 by US navigational data. Speaking yesterday, Russian President Vladimir Putin 0:07:37.040 --> 0:07:38.120 warned against the move. 0:07:38.840 --> 0:07:42.480 Addison bud but this will be their direct participation, and 0:07:42.520 --> 0:07:46.240 these of course will significantly change the very essence, the 0:07:46.320 --> 0:07:49.840 very nature of the conflict. These wo mean that natal countries, 0:07:49.880 --> 0:07:53.160 the US and European countries are at war with Russia. 0:07:53.520 --> 0:07:56.560 Rut there through an interpreter. The discussion comes after the 0:07:56.640 --> 0:08:00.120 US confirmed that Moscow has received shipments of ballistic missiles 0:08:00.160 --> 0:08:04.000 from Iran. Cruis are battling three wildfires east of Los 0:08:04.040 --> 0:08:07.200 Angeles in San Bernardino County. There's a red glow in 0:08:07.200 --> 0:08:09.760 the sky and a strong haze in the air as 0:08:09.760 --> 0:08:13.160 the flames continue. Three fires have scorts more than one 0:08:13.200 --> 0:08:17.880 hundred thousand acres across southern California. Elon Mosk has labeled 0:08:17.880 --> 0:08:21.360 the Australian government as fascists over proposed new laws to 0:08:21.360 --> 0:08:25.760 crack down on digital misinformation, particularly on social media websites. 0:08:25.920 --> 0:08:29.080 Under the proposed legislation, which have yet to pass Parliament, 0:08:29.120 --> 0:08:31.920 social media companies could be fined up to five percent 0:08:32.360 --> 0:08:35.440 of their annual revenue. Global news twenty four hours a 0:08:35.480 --> 0:08:37.559 day and whatever you want it with Bloomberg News. Now, 0:08:37.800 --> 0:08:40.000 I'm John Tucker, and this he is Bloomberg. 0:08:40.120 --> 0:08:47.520 Karen, all right, John Tucker, thank you time now for 0:08:47.559 --> 0:08:50.320 the Bloomberg Sports Update with John stash Hour. 0:08:50.400 --> 0:08:52.720 John, Good morning, Good morning, Karen. Yankees in the Red 0:08:52.720 --> 0:08:55.360 Sax first the four at the stadium in Glabor, Torres 0:08:55.400 --> 0:08:57.000 let off the game of the home run just made 0:08:57.000 --> 0:08:58.679 it over the wall into the first world seats in 0:08:58.760 --> 0:09:01.320 right field Yanks. They did not score again for the 0:09:01.320 --> 0:09:03.760 next nine in names. Anthony Volpi came up in both 0:09:03.760 --> 0:09:06.760 the fourth and six innings with the bases loaded, both 0:09:06.840 --> 0:09:09.360 times flew out the left Red Sox got a game 0:09:09.440 --> 0:09:12.360 time Danny Jansen home running the fifth off Nester Cortes. 0:09:12.440 --> 0:09:15.720 The game was tied at one bottom of the tent. 0:09:16.160 --> 0:09:18.520 Two two, so it all grounds it towards the medal. 0:09:18.679 --> 0:09:22.520 Bayshi Per Sono thirty year round third Rafaela comes up 0:09:22.559 --> 0:09:26.360 throwing on a hot thirty slide, says on Sono. 0:09:26.520 --> 0:09:30.960 Wednesday game deef an two to one. Yankee wins second 0:09:30.960 --> 0:09:33.720 straight and extra innings. It puts them two full games 0:09:34.000 --> 0:09:36.960 ahead of IL Baltimore. The Yankee bullpen was terrific. Four 0:09:37.000 --> 0:09:40.120 relievers followed towards test for the night. The Yanks in 0:09:40.240 --> 0:09:44.319 ten innings allowed only four Boston hits. They had fourteen strikeouts. 0:09:44.320 --> 0:09:47.360 All four teams vying for the three NL wildcard sponsor 0:09:47.440 --> 0:09:49.440 the night Off that includes the Mets, who played tonight 0:09:49.800 --> 0:09:52.800 in Philadelphia, the Phillies thirty games over five hundred and 0:09:52.800 --> 0:09:55.720 their fifty to twenty five, and home Thursday Night football 0:09:55.760 --> 0:09:58.800 to kickoff Week two, all Buffalo in Miami thirty one 0:09:58.840 --> 0:10:01.840 to ten. The Bills James Cook scored three first half 0:10:01.880 --> 0:10:04.439 touchdowns Dolphins quarterback two a time that we all had 0:10:04.480 --> 0:10:08.120 three interceptions. One was returned for TD. He later left 0:10:08.160 --> 0:10:11.280 with a concussion. He had two of them two years ago. 0:10:11.360 --> 0:10:13.280 The Bills have now beating the Dolphins fourteen to the 0:10:13.320 --> 0:10:16.800 last sixteen. The Jets have brought back center Connor McGovern. 0:10:16.920 --> 0:10:18.719 He went down last year with a knee injury. Was 0:10:18.720 --> 0:10:21.520 plenty to retire, but the Jets worked him outside him 0:10:21.520 --> 0:10:24.440 with the practice squad. Rafael Dal was hoping to play 0:10:24.480 --> 0:10:27.120 next week's Labor Cup in Berlin. The feeling was it 0:10:27.120 --> 0:10:29.120 would be the last event of his career, but Nadal 0:10:29.240 --> 0:10:32.839 has withdrawn, saying other players are more deserving. So it's 0:10:32.840 --> 0:10:37.120 certainly possible that Midell's career with twenty two Grand stam titles, 0:10:37.240 --> 0:10:41.000 is now over. John Stash Thatward Bloomberg Sports, Karen Y Nathan. 0:10:43.040 --> 0:10:47.200 Coast to coast on Bloomberg Radio, nationwide on Sirius XM, 0:10:47.280 --> 0:10:50.200 and around the world on Bloomberg dot Com and the 0:10:50.240 --> 0:10:51.440 Bloomberg Business app. 0:10:51.679 --> 0:10:53.480 This is Bloomberg. 0:10:53.120 --> 0:10:57.679 Daybreak, Good Morning on Nathan Hager. Boeing is grounded. As 0:10:57.720 --> 0:11:01.120 of midnight Pacific time, members of the planemaker's largest union 0:11:01.160 --> 0:11:03.680 on the West Coast have walked off the job for 0:11:03.720 --> 0:11:07.080 their first strike in sixteen years. John Holden, as president 0:11:07.120 --> 0:11:11.080 of the International Association of Machinists and Aerospace Workers, this. 0:11:11.000 --> 0:11:15.640 Is about respect, This is about addressing the past, and 0:11:15.679 --> 0:11:17.360 this is about fighting for our future. 0:11:17.640 --> 0:11:19.760 And this could be a crippling move for a company 0:11:19.760 --> 0:11:22.640 still reeling from the quality control issues found out its 0:11:22.679 --> 0:11:25.599 seven thirty seven max Jet just at the start of 0:11:25.640 --> 0:11:28.560 the year. For the latest were joined now by Bloomberg's 0:11:28.600 --> 0:11:31.800 Danny Lee. Danny good morning. This was, from what we understand, 0:11:31.840 --> 0:11:35.559 an overwhelming strike vote. Why did the rank and file 0:11:35.679 --> 0:11:36.640 reject this offer? 0:11:37.800 --> 0:11:41.080 Yeah, Nathan, good morning. Well, clearly the vote was a 0:11:41.080 --> 0:11:44.080 signal of just how poor the union members for this 0:11:44.160 --> 0:11:47.720 deal was third three thousand of them voting, and you 0:11:47.760 --> 0:11:50.720 can see the strength of the rejection and look you 0:11:50.720 --> 0:11:54.520 can see how Bone responded. They were quite consideratory in 0:11:54.600 --> 0:11:58.400 their tone, acknowledging that the fact that they were committed 0:11:58.440 --> 0:12:01.480 to resettings relationship with the unions. And you know, you 0:12:01.679 --> 0:12:03.880 just look at what the deal was put in front 0:12:03.920 --> 0:12:09.280 of members. Twenty five thousand, twenty five percent rather increase 0:12:09.360 --> 0:12:14.160 in salary over four years but losing annual bonuses. That 0:12:14.360 --> 0:12:17.439 was not enough and when union members wanted something more 0:12:17.480 --> 0:12:20.360 like forty percent. There was a big gap there between 0:12:20.760 --> 0:12:23.800 what Boeing is offering and what the union members really want. 0:12:23.800 --> 0:12:26.000 And so this is a this is a first kind 0:12:26.040 --> 0:12:30.240 of mini blow to new CEO Kelly ott Berg, drafted 0:12:30.280 --> 0:12:32.360 in to try and sort out not just this, but 0:12:32.760 --> 0:12:36.880 a wider set of problems with Boeing related to the business, 0:12:37.000 --> 0:12:40.839 it's operations, it's finances, its culture. And so it's now 0:12:40.880 --> 0:12:43.440 down to him to see his true resolve, what he 0:12:43.559 --> 0:12:47.040 can do and particularly how quickly he can get things 0:12:47.080 --> 0:12:47.920 back on track. 0:12:48.400 --> 0:12:51.440 So what can he do at this point? Where do 0:12:52.720 --> 0:12:54.679 contract talks go from here? 0:12:56.280 --> 0:12:59.280 Well, we need to see both sides getting around the 0:12:59.440 --> 0:13:02.920 table or a very big table. Frankly, and the union 0:13:03.480 --> 0:13:07.520 overnight saying it was planning and keen to have more 0:13:07.559 --> 0:13:10.640 talks as quickly as possible for Boeing. They've not given 0:13:10.640 --> 0:13:13.160 an indication yet of when they will talk. I'm sure 0:13:13.240 --> 0:13:16.839 both sides will get together soon. The challenges, you know, 0:13:17.080 --> 0:13:19.480 what will be put on the table first by Boning. 0:13:19.559 --> 0:13:22.320 Clearly the first offer not good enough, and you know 0:13:22.600 --> 0:13:27.000 the question of a salary over job security and other 0:13:27.200 --> 0:13:31.280 entitlements such as healthcare, healthcare and retirement. So there's a 0:13:31.280 --> 0:13:33.960 lot Boeing still has to to put together. And you know, 0:13:34.080 --> 0:13:37.200 the top the clock is ticking frankly with the amount 0:13:37.200 --> 0:13:40.480 of money that it risks burning through this strike, the 0:13:40.520 --> 0:13:43.840 fact that it's factories now in Seattle where many of 0:13:43.880 --> 0:13:47.000 its commercial jets are built, most of them, the fact 0:13:47.040 --> 0:13:49.280 that it's down tools now, and the fact that they 0:13:49.320 --> 0:13:51.959 will not be able to deliver planes, build planes, deliver 0:13:52.000 --> 0:13:54.280 planes to customers, and therefore they cannot bring in the 0:13:54.320 --> 0:13:58.200 cash to arrest what is a wider serious issue. It's 0:13:58.280 --> 0:14:01.679 cash burn and it's stress on its balance sheet. 0:14:02.040 --> 0:14:04.960 So we're at the very early stages of this obviously, 0:14:05.120 --> 0:14:07.840 so much more to come as we continue monitoring. What 0:14:07.960 --> 0:14:12.320 is the beginning of the first strike for Boeing's largest 0:14:12.520 --> 0:14:16.000 union in sixteen years. Thanks for keeping us updated on it. 0:14:16.080 --> 0:14:19.680 Danny Lee of Bloomberg News with us this morning as 0:14:19.720 --> 0:14:23.400 this strike is just getting underway. Now, we want to 0:14:23.440 --> 0:14:27.160 turn to our exclusive conversation with the Secretary of the 0:14:27.280 --> 0:14:32.200 US Department of Transportation, Pete Boodhajidge. Before Boeing's union members 0:14:32.280 --> 0:14:35.640 voted to strike, he sat down with Bloomberg Salaa Mosen 0:14:35.760 --> 0:14:39.480 on the Big Take DC podcast. They talked about trust 0:14:39.520 --> 0:14:43.120 and air travel, the safety concerns at Boeing, and getting 0:14:43.120 --> 0:14:46.240 the plane maker back on track. They began with the 0:14:46.320 --> 0:14:51.640 question of whether Pete Bootajidge enjoys flying commercial given airline concerns. 0:14:52.200 --> 0:14:55.480 Mostly, I think we've all had our headaches. I am 0:14:55.560 --> 0:14:59.040 on an airliner, maybe not every day, but almost, and 0:14:59.480 --> 0:15:03.080 like millions Americans, experience the benefits but also the huge 0:15:03.080 --> 0:15:07.360 frustrations that go with air travel. We've worked hard to 0:15:07.520 --> 0:15:11.840 establish America's safety record that has made air travel the 0:15:11.920 --> 0:15:14.800 safest way to get around. We work hard to keep 0:15:14.800 --> 0:15:16.920 it that way and press the airlines to do their part. 0:15:17.680 --> 0:15:20.120 And then there's the customer service side, where it's clear 0:15:20.160 --> 0:15:22.800 that airlines need to do a better job of taking 0:15:22.840 --> 0:15:26.200 care of passengers, and we have not just pressed them 0:15:26.240 --> 0:15:29.360 and encouraged them to improve their performance, but introduced new 0:15:29.480 --> 0:15:34.240 passenger rights that have created protections that didn't exist just 0:15:34.280 --> 0:15:36.560 a few years ago and that we think are much 0:15:36.600 --> 0:15:37.640 needed and overdue. 0:15:37.720 --> 0:15:41.560 What is the Transportation Department under Secretary ped Buddha Judge 0:15:41.560 --> 0:15:44.840 doing to make holiday travel a little less frustrating this year. 0:15:45.000 --> 0:15:47.720 Well, the first thing we've done is press the airlines 0:15:47.760 --> 0:15:49.920 to improve their performance. It's one of the reasons why 0:15:50.000 --> 0:15:52.720 last year saw the lowest rate of flight cancelations in 0:15:52.760 --> 0:15:55.440 about a decade, and we're working to make sure that, 0:15:55.520 --> 0:16:00.560 through things like realistic scheduling and adequate staffing, build on 0:16:00.720 --> 0:16:03.080 improving that record. The other thing that's important is that 0:16:03.120 --> 0:16:05.480 they take care of passengers when there is a delay 0:16:05.640 --> 0:16:07.600 or an issue. One of the things we've done is 0:16:07.640 --> 0:16:11.080 introduce a new toolflight rights dot gov that's got airline 0:16:11.080 --> 0:16:14.920 by airline information about what you can expect your airline 0:16:14.960 --> 0:16:17.080 to do to take care of you when you have 0:16:17.160 --> 0:16:20.280 a problem, and those are customer service promises that we 0:16:20.960 --> 0:16:24.720 enforce and hold them accountable for meeting. We've also taken 0:16:24.760 --> 0:16:28.040 action to increase the benefits that go back to a 0:16:28.080 --> 0:16:31.600 customer when there's an issue. For example, automatic refunds when 0:16:31.680 --> 0:16:34.520 your flight is canceled, something that has been a real 0:16:34.560 --> 0:16:38.160 headache and led to us imposing hefty penalties on airlines 0:16:38.200 --> 0:16:40.720 that weren't following through. We're trying to take the drama 0:16:40.760 --> 0:16:42.520 out of that by saying that you don't even have 0:16:42.520 --> 0:16:44.840 to ask to get a refund. And lastly, a lot 0:16:44.880 --> 0:16:49.240 of enforcements. We have issued the toughest enforcement actions in 0:16:49.280 --> 0:16:52.280 the history of the department in cases like that of 0:16:52.280 --> 0:16:56.440 Southwest Airlines that melted down almost two inters ago now 0:16:56.800 --> 0:17:01.280 and left so many passengers strandedstigating what happened with Delta 0:17:01.360 --> 0:17:02.880 over the summer right now. 0:17:02.880 --> 0:17:07.840 So this holiday season November and December, can consumers expect 0:17:07.880 --> 0:17:09.520 that some of these things are already in play. We 0:17:09.560 --> 0:17:11.480 can expect that we can sit with our family members, 0:17:11.480 --> 0:17:14.120 as Joe Biden promised. We can expect that we can 0:17:14.200 --> 0:17:16.080 get refunds. The way you're describing. 0:17:16.359 --> 0:17:20.080 As a passenger today, you have protections that you did 0:17:20.080 --> 0:17:22.760 not have a year ago, or two years ago or more, 0:17:22.840 --> 0:17:25.040 and we're going to continue building on those. So yes, 0:17:25.760 --> 0:17:28.960 if you're heading to see family for the holidays, for example, 0:17:29.520 --> 0:17:33.160 those automatic refund protections are the law of the land now. 0:17:33.400 --> 0:17:36.359 And if you don't get treated that way, let us know, 0:17:36.440 --> 0:17:39.760 because we'll follow up with enforcement. We have seen more 0:17:39.800 --> 0:17:42.879 airlines comply with what we've been asking them to do 0:17:43.600 --> 0:17:46.919 with regard to family seating and for passengers who are 0:17:46.920 --> 0:17:49.240 wheelchair users. Now we've been acting to make sure that 0:17:49.280 --> 0:17:52.320 they have a better experience because some of the stories 0:17:52.359 --> 0:17:55.600 we've heard about what they have faced traveling on airlines 0:17:55.600 --> 0:17:59.359 are just completely unacceptable, and we're developing rules that would 0:17:59.600 --> 0:18:02.720 change the experience and empower those passengers significantly. 0:18:02.840 --> 0:18:06.359 You're talking about enforcement and penalties is one aspect there 0:18:06.440 --> 0:18:09.960 are you thinking millions of dollars? How high a penalty 0:18:10.040 --> 0:18:12.000 are you willing to levy on these airlines? 0:18:12.440 --> 0:18:15.280 Well, the case of Southwest, it was a one hundred 0:18:15.280 --> 0:18:19.560 and forty million dollar enforcement action, which was more than 0:18:20.040 --> 0:18:23.679 we had seen in a decade or more put together 0:18:23.880 --> 0:18:26.040 before that, partly because we thought it was very important 0:18:26.040 --> 0:18:28.280 to send a message to airlines. What we saw was 0:18:28.280 --> 0:18:31.800 at some of the past levels of penalties a million 0:18:31.840 --> 0:18:36.240 here to a million, there really wasn't enough to change behavior. 0:18:37.080 --> 0:18:39.359 And we're going to continue to be ready to do that. 0:18:39.400 --> 0:18:40.520 And now, one thing I want to mention ish we 0:18:40.560 --> 0:18:42.800 talked about one hundred and forty million. That's not all 0:18:42.880 --> 0:18:45.439 cash going back to the treasury. We did impose a 0:18:45.440 --> 0:18:48.760 cash fine of about thirty five million dollars, but part 0:18:48.760 --> 0:18:50.399 of what we did in the enforcement orders have the 0:18:50.480 --> 0:18:53.560 majority of those dollars actually go back to passengers in 0:18:53.600 --> 0:18:57.440 the form of vouchers, compensation, and other things that went 0:18:57.480 --> 0:18:59.239 back to the consumer, because the whole point of this, 0:18:59.280 --> 0:19:01.879 of course, to make sure consumers are better taken care of. 0:19:02.160 --> 0:19:03.879 I want to talk about Boeing. What have you been 0:19:03.880 --> 0:19:06.560 able to do to get that company back on track? 0:19:06.960 --> 0:19:10.640 Well, if A took an unprecedented measure in restricting Boeing's 0:19:10.640 --> 0:19:14.320 ability to produce aircraft at a higher rate until they 0:19:14.440 --> 0:19:18.199 demonstrated the safety of their production and the quality of 0:19:18.240 --> 0:19:22.400 their production process. Aviation in America by far the safest 0:19:22.440 --> 0:19:25.080 way to travel and has made the last decade or 0:19:25.160 --> 0:19:28.080 two the safest period in the history of aviation. That 0:19:28.160 --> 0:19:30.479 means that when there is a near miss or an 0:19:30.560 --> 0:19:34.440 incident something like the plug door blowing out in January 0:19:34.440 --> 0:19:38.000 and Alaska, we treat that as seriously as the FA 0:19:38.280 --> 0:19:40.880 used to treat the most recent fatal crash. I think 0:19:40.880 --> 0:19:43.320 that's part of why they've been able to say that 0:19:43.359 --> 0:19:45.800 there has not been a fatal airliner crash in years, 0:19:45.840 --> 0:19:47.720 and again, it takes a lot of work to keep 0:19:47.720 --> 0:19:50.560 it that way. Boeing was put on notice that they 0:19:50.560 --> 0:19:53.600 were under a microscope. They've provided an updated plan and 0:19:53.640 --> 0:19:56.119 now we are watching to see how they're doing and 0:19:56.240 --> 0:19:59.280 meeting the terms of that plan. They also have new leadership, 0:19:59.400 --> 0:20:02.720 and I've conveyed to Bone and the importance of them 0:20:03.040 --> 0:20:07.080 prioritizing a culture of quality and safety so that they 0:20:07.080 --> 0:20:10.159 can meet the FA's expectations and really the expectations of 0:20:10.160 --> 0:20:10.959 the American public. 0:20:11.200 --> 0:20:14.280 There's another place where trust and air travel is really 0:20:14.359 --> 0:20:17.120 low right now. Since we're talking about trust, I'm talking 0:20:17.119 --> 0:20:21.200 about pricing and rewards transparency, So what it actually costs 0:20:21.240 --> 0:20:23.479 to take the trip that you've planned, and the value 0:20:23.520 --> 0:20:25.600 of the loyalty points that you've signed up to get. 0:20:26.040 --> 0:20:27.919 One example that you guys have been working on at 0:20:27.920 --> 0:20:30.280 the department is a lot of work on junk fees. 0:20:30.640 --> 0:20:33.280 Share a little bit about what you're doing on that front. 0:20:33.280 --> 0:20:34.480 With consumer productions. 0:20:34.720 --> 0:20:37.080 We're making sure that you get refunded if you don't 0:20:37.080 --> 0:20:39.080 get what you paid for on your fees, same as 0:20:39.119 --> 0:20:41.280 we do on your ticket. So you paid for Wi fi, 0:20:41.400 --> 0:20:44.000 the Wi Fi doesn't work, get your money back. Same 0:20:44.080 --> 0:20:47.040 with baggage. We have another rule about transparency, and this 0:20:47.119 --> 0:20:49.160 is really about making sure that you can tell when 0:20:49.200 --> 0:20:52.959 you're comparison shopping for an airfare, the all in cost 0:20:53.240 --> 0:20:56.040 of the ticket that you're buying, including those ancillary fees 0:20:56.160 --> 0:20:58.200 or bags or picking a seat or something like that. 0:20:58.440 --> 0:21:01.919 I thought that being Tan's parent about fees was a 0:21:01.960 --> 0:21:05.679 relatively low bar to require the airlines to meet. But 0:21:05.760 --> 0:21:08.160 when we finalize that as a rule, the airline industry 0:21:08.160 --> 0:21:12.120 lobby responded by suing us. We believe that our rule 0:21:12.160 --> 0:21:15.119 is based on strong legal authority, so we're standing our ground, 0:21:15.720 --> 0:21:18.160 but it's disappointing that they're so reluctant to do something 0:21:18.160 --> 0:21:21.159 I think most consumers would expect of anybody selling anything, 0:21:21.200 --> 0:21:23.480 which is to be upfront and transparent about what you're 0:21:23.480 --> 0:21:24.200 going to charge. 0:21:24.359 --> 0:21:27.280 This is Bloomberg day Break Today, your morning brief on 0:21:27.320 --> 0:21:30.880 the stories making news from Wall Street to Washington and beyond. 0:21:31.119 --> 0:21:33.919 Look for us on your podcast feed at six am 0:21:34.000 --> 0:21:37.639 Eastern each morning, on Apple, Spotify, and anywhere else you 0:21:37.720 --> 0:21:38.879 get your podcasts. 0:21:39.000 --> 0:21:42.040 You can also listen live each morning starting at five am. 0:21:42.119 --> 0:21:44.440 Wall Street Time on Bloomberg eleven three to zero in 0:21:44.520 --> 0:21:47.840 New York, Bloomberg ninety nine to one in Washington, Bloomberg 0:21:47.880 --> 0:21:50.560 one oh six to one in Boston, and Bloomberg ninety 0:21:50.600 --> 0:21:51.960 sixty in San Francisco. 0:21:52.359 --> 0:21:55.520 Our flagship New York station is also available on your 0:21:55.560 --> 0:22:01.000 Amazon Alexa devices. Just say Alexa play Bloomberg eleventh Plus. 0:22:01.040 --> 0:22:04.440 Listen coast to coast on the Bloomberg Business app, Serious XM, 0:22:04.560 --> 0:22:08.120 the iHeartRadio app, and on Bloomberg dot Com. I'm Nathan 0:22:08.200 --> 0:22:08.760 Hager and. 0:22:08.720 --> 0:22:12.040 I'm Karen Moscow. Join us again tomorrow morning for all 0:22:12.080 --> 0:22:14.600 the news you need to start your day right here 0:22:14.760 --> 0:22:16.080 on Bloomberg Daybreak