Tesla Earnings Selloff; Trump to Testify at Trial

Good morning. 0:00:03.080 --> 0:00:06.040 I'm Nathan Hager and I'm Amy Morris. Here are the 0:00:06.080 --> 0:00:07.680 stories we're following today. 0:00:08.119 --> 0:00:12.080 Shares of Tesla are going in reverse this morning. They're 0:00:12.119 --> 0:00:14.840 down more than seven percent in the pre market. The 0:00:14.880 --> 0:00:17.880 electric vehicle maker says it expects sales growth this year 0:00:17.920 --> 0:00:21.320 to be quote notably lower. We get more from Bloomberg's 0:00:21.320 --> 0:00:21.960 Oliver Kruk. 0:00:22.400 --> 0:00:24.880 They gave no guidance in terms of deliveries for this year. 0:00:24.920 --> 0:00:27.640 They delivered one point eight last year million. That is 0:00:27.800 --> 0:00:30.120 they're expecting two point two. That's what the analysts are expecting. 0:00:30.160 --> 0:00:32.720 That's still twenty percent growth against a backdrop that is 0:00:32.840 --> 0:00:34.839 challenging for a lot of the auto sector and a 0:00:34.840 --> 0:00:36.839 lot of the EV market. There's going to be a 0:00:36.920 --> 0:00:39.080 slow down in EV's that seems more or less certain 0:00:39.159 --> 0:00:42.320 this year. Interest rates, basically, Elon Musk said that our 0:00:42.400 --> 0:00:45.640 margin is directly pegged to interest rates in the United States, 0:00:45.680 --> 0:00:47.519 So if they come down, our margins will be good. 0:00:47.600 --> 0:00:49.879 If they don't, they'll be worse. And there's a competition 0:00:49.920 --> 0:00:52.560 from China. There's all these other competitors with cheaper models 0:00:52.560 --> 0:00:53.680 that are coming into the market. 0:00:53.760 --> 0:00:56.480 Bloomberg Zolli Krouk says On the conference call, Elon Musk 0:00:56.520 --> 0:00:58.640 said he needs a bigger steak in Tesla to prevent 0:00:58.680 --> 0:01:01.320 being ouse to a CEO. Right now, he owns about 0:01:01.320 --> 0:01:02.880 thirteen percent of the company. 0:01:03.600 --> 0:01:06.400 While Taesla's shares are sliding. It's a different picture at 0:01:06.440 --> 0:01:08.800 IBM this morning, shares up more than seven and a 0:01:08.840 --> 0:01:12.400 half percent. The company delivered a positive outlook for revenue 0:01:12.400 --> 0:01:15.120 and cash flow in twenty twenty four. Those details now 0:01:15.120 --> 0:01:16.560 from Bloomberg's Charlie Pellett. 0:01:16.920 --> 0:01:19.679 It is an optimistic signal for the pace of corporate 0:01:19.720 --> 0:01:23.520 technology spending. IBM also announced it does expect to reduce 0:01:23.640 --> 0:01:27.640 jobs by a percentage in the low single digits. The ARMANC, 0:01:27.760 --> 0:01:31.440 New York based company has focused on streamlining its operations 0:01:31.480 --> 0:01:37.200 around software and services in recent years by divesting managed infrastructure, weather, 0:01:37.319 --> 0:01:41.000 and health businesses. IBM has also introduced new products to 0:01:41.040 --> 0:01:45.679 capitalize on growing interest in artificial intelligence in New York. 0:01:45.840 --> 0:01:47.440 Charlie Pellett Bloomberg. 0:01:47.080 --> 0:01:49.800 Radio, All right, Charlie, thank you. We're also following Boeing 0:01:49.880 --> 0:01:52.640 this morning. That stock is down another two percent. The 0:01:52.680 --> 0:01:56.600 Federal Aviation Administration is freezing planned production increases for Boeing 0:01:56.640 --> 0:01:59.600 seven thirty seven Max. At the same time, the FAA 0:01:59.600 --> 0:02:02.520 approved inspection procedures that airlines need to carry out in 0:02:02.600 --> 0:02:05.640 order for the Max to resume flights. Boeing CEO Dave 0:02:05.720 --> 0:02:08.840 Calhoun met with senators yesterday. Before that meeting, he was 0:02:08.880 --> 0:02:11.720 asked what message he has for concerned passengers. 0:02:12.160 --> 0:02:14.680 We fly safe planes. We don't put airplanes in the 0:02:14.720 --> 0:02:17.200 air that we don't have one hundred percent confidence in. 0:02:18.200 --> 0:02:21.320 I'm here today in the spirit of transparency to number one, 0:02:21.360 --> 0:02:25.079 recognize the seriousness of what you just asked. Number two, 0:02:25.120 --> 0:02:29.119 to share everything I can with our Capitol Hill interests 0:02:29.919 --> 0:02:31.960 and answer all their questions because they have a lot 0:02:32.000 --> 0:02:32.280 of them. 0:02:32.360 --> 0:02:35.560 I'm Boeing CEO Dave Calhoun told senators the planemaker's current 0:02:35.600 --> 0:02:39.200 safety issue can be resolved in days and weeks, not months. 0:02:39.600 --> 0:02:42.560 Turning to politics now, Earlier this week, Donald Trump was 0:02:42.600 --> 0:02:45.119 in New Hampshire for the primary. Now he is set 0:02:45.160 --> 0:02:48.160 to take the witness stand today in the defamation suit 0:02:48.200 --> 0:02:51.960 brought by Ejing Carrol Bloomberg's Ed Baxter has that story. 0:02:52.440 --> 0:02:55.240 This comes two days after his New Hampshire victory, and 0:02:55.280 --> 0:02:58.560 he'll be in front of a jury. Carol contends his 0:02:58.680 --> 0:03:01.920 denials of her rape clam have hurt her reputation. It 0:03:01.960 --> 0:03:04.600 gives Trump a chance in the witness box to repeat 0:03:04.680 --> 0:03:08.840 the denials. This could be very contentious. Judge Lewis Kaplan 0:03:08.880 --> 0:03:12.919 has already held Trump liable for defamation, and if Trump 0:03:12.960 --> 0:03:15.799 ignores the judicial restraints on what he can say, as 0:03:15.800 --> 0:03:18.680 he has in the past, it could lead to fireworks. 0:03:19.280 --> 0:03:22.880 Last week, remember Kaplan threatened to bar him from the courtroom, 0:03:22.960 --> 0:03:27.560 saying he couldn't control himself. Ed Baxter Bloomberg Radio, all. 0:03:27.520 --> 0:03:28.200 Right, and thank you. 0:03:28.240 --> 0:03:30.960 As for President Biden, he's picked up a key endorsement 0:03:30.960 --> 0:03:33.640 as he ramps up his reelection campaign, winning the banking 0:03:33.720 --> 0:03:37.640 of the United Autoworkers' Union UAW. President Sean Fain says 0:03:37.680 --> 0:03:38.840 the president has earned it. 0:03:39.240 --> 0:03:43.920 He joined us in solidarity on the picket line for 0:03:44.000 --> 0:03:48.000 the first time in our nation's history a sitting president 0:03:48.040 --> 0:03:49.480 has ever done that. 0:03:50.000 --> 0:03:53.160 And the UAW Shan Fain laid into former President Trump, 0:03:53.200 --> 0:03:57.040 calling him a scab who represents billionaires. President Biden says 0:03:57.080 --> 0:03:59.360 he's kept his word to be the most pro union 0:03:59.400 --> 0:03:59.880 president ever. 0:04:00.520 --> 0:04:02.200 I'm proud you have my back. 0:04:02.600 --> 0:04:05.440 Let me just say, I'm honored to have your back 0:04:05.520 --> 0:04:06.680 and you have mine. 0:04:06.800 --> 0:04:07.480 That's the deal. 0:04:07.800 --> 0:04:09.880 How President Biden will still need to win the back 0:04:09.880 --> 0:04:12.840 of rank and file union members. The UAW says it'll 0:04:12.880 --> 0:04:14.960 ramp up get out the vote efforts for the president 0:04:15.000 --> 0:04:16.960 in Michigan and other battleground states. 0:04:17.560 --> 0:04:20.240 The Federal Reserve has raised the rate on loans to 0:04:20.279 --> 0:04:23.600 banks issued under an emergency lending program launched last year. 0:04:23.960 --> 0:04:27.200 The move comes after borrowing surged in recent weeks as 0:04:27.279 --> 0:04:31.120 institutions took advantage of the attractive financing terms overseas. 0:04:31.120 --> 0:04:34.360 Amy we're expecting a policy decision from the European Central Bank. 0:04:34.400 --> 0:04:37.159 Economists to expect the ECB to leave rates unchanged in 0:04:37.200 --> 0:04:40.240 its first monetary policy decision of the year. Instead, the 0:04:40.279 --> 0:04:44.080 focus is on President Christine Legard's news conference and any 0:04:44.120 --> 0:04:46.919 fresh signals on the outlook for borrowing costs and. 0:04:47.000 --> 0:04:50.360 A warning from former Treasury Secretary Robert Rubin. He says 0:04:50.440 --> 0:04:53.560 risks are even greater today than in the early nineteen nineties, 0:04:53.760 --> 0:04:57.800 when incoming President Bill Clinton crafted a budget tightening package 0:04:57.800 --> 0:05:00.719 to shrink the deficit. Reuben spoke with David Weston on 0:05:00.760 --> 0:05:02.120 Bloomberg's Wall Street Week. 0:05:02.279 --> 0:05:05.200 I think we're in a terrible place because, unfortunately, once 0:05:05.240 --> 0:05:06.240 you get to legislating. 0:05:06.480 --> 0:05:07.320 There isn't the will. 0:05:07.640 --> 0:05:10.600 There's a lot of talk, but the talk is always 0:05:10.920 --> 0:05:15.200 divided politically between the Republicans who refused to raise taxes 0:05:15.560 --> 0:05:18.200 and the Democrats who won't deal in titlements. 0:05:18.520 --> 0:05:21.640 You can catch the entire interview with former Treasury Secretary 0:05:21.720 --> 0:05:24.960 Robert Rubin on Bloomberg Wall Street Week with David Weston 0:05:25.200 --> 0:05:27.920 on both Bloomberg Radio and television. 0:05:27.480 --> 0:05:30.520 And this note from overseas Amy. Pay for most senior 0:05:30.560 --> 0:05:33.279 investment bankers at Wall Street firms in Asia fell to 0:05:33.320 --> 0:05:36.760 its lowest level in almost two decades. Sources say total 0:05:36.760 --> 0:05:41.520 compensation in Asia, leaving out Japan fell to between seven 0:05:41.560 --> 0:05:43.960 hundred thousand to eight hundred thousand dollars. That is well 0:05:43.960 --> 0:05:46.960 below the million or more that senior investment bankers have 0:05:47.120 --> 0:05:50.840 typically earned. At least twenty percent at Managing directors at 0:05:50.920 --> 0:05:55.880 lenders including Morgan, Stanley and Ubs received no bonuses last 0:05:56.000 --> 0:06:01.480 year in Asia. 0:06:01.640 --> 0:06:03.080 Time now for a look at some of the other 0:06:03.120 --> 0:06:05.400 stories making news around the world, and for that we're 0:06:05.480 --> 0:06:07.280 joined by Bloomberg's John Tucker. 0:06:07.320 --> 0:06:09.599 Good morning John, and Good morning Amy. 0:06:09.720 --> 0:06:12.840 There is hope of a bipartisan border deal, but some 0:06:12.960 --> 0:06:16.120 lawmakers say if they're no big policy changes, then immigration 0:06:16.200 --> 0:06:20.040 reform is dead on a rival. More from Bloomberg's Nancy Lyons. 0:06:20.200 --> 0:06:22.680 The details of the agreement have not yet been released, 0:06:22.720 --> 0:06:26.200 but some Republican senators are already criticizing the bones of 0:06:26.240 --> 0:06:27.920 the deal, like you TOAs Mike Lee. 0:06:28.040 --> 0:06:30.480 I have great respect for colleagues who are working hard 0:06:30.520 --> 0:06:33.160 trying to fix the problem, and I'm sure they are 0:06:33.200 --> 0:06:36.120 coming up with some provisions that might help certain things. 0:06:36.680 --> 0:06:40.200 But from what I'm hearing, this could cause as many 0:06:40.240 --> 0:06:42.119 problems as it's sold. 0:06:42.320 --> 0:06:45.919 The bill being drafted would reportedly grant humanitarian parole to 0:06:46.000 --> 0:06:50.760 five thousand undocumented immigrants a day. These GOP lawmakers say 0:06:50.880 --> 0:06:53.240 that's a magnet that will draw more people to our 0:06:53.279 --> 0:06:56.520 border in Washington, Nancy lyons Bloomberg Radio. 0:06:56.640 --> 0:06:59.680 Nicky Haley campaigns in our home state of South Carolina. 0:06:59.720 --> 0:07:02.760 Last night, she talked in part about Donald Trump's reaction 0:07:02.880 --> 0:07:06.120 to her not dropping out of the race after New Hampshire. 0:07:06.360 --> 0:07:09.120 He pitched a fit, he was insulting. 0:07:09.160 --> 0:07:11.400 He was doing what he does, But I know that's 0:07:11.440 --> 0:07:12.920 what he does when he's insecure. 0:07:13.040 --> 0:07:14.360 I know that's what he does when he. 0:07:14.800 --> 0:07:17.440 Is threatened, and he should feel threatened without a. 0:07:17.400 --> 0:07:21.280 Doubt, Haley is vowing to press on. Thanks to the 0:07:21.320 --> 0:07:24.480 backing of Wall Street Titans, wealthy donors, and a group 0:07:24.520 --> 0:07:27.880 funded by industrialist Charles Koch means she has enough funding 0:07:27.960 --> 0:07:31.480 to keep running. Another attempted attack on merchant shipping by 0:07:31.520 --> 0:07:35.960 iranbak Houthi militants. US Central Command says US Guided missile 0:07:36.000 --> 0:07:39.480 destroyer shot down two anti ship ballistic missiles aimed at 0:07:39.480 --> 0:07:42.440 two American flag vessels in the Gulf of Aden. A 0:07:42.520 --> 0:07:45.280 third missile fell into the sea. The attack is the 0:07:45.280 --> 0:07:49.120 first in five days, comes despite multiple rounds of retaliatory 0:07:49.160 --> 0:07:52.680 strikes by the US and the UK. Fox has been 0:07:52.800 --> 0:07:55.760 ordered to face a two point seven billion dollar defamation 0:07:55.880 --> 0:08:00.640 lawsuit by Smartmatic Corporation, one of two voting technologies companies 0:08:00.800 --> 0:08:04.240 falsely accused on Fox News of rigging the twenty twenty 0:08:04.400 --> 0:08:08.480 presidential election against Donald Trump. The decision Wednesday by New 0:08:08.560 --> 0:08:11.160 York Jidts Who's the latest sent back for Fox after 0:08:11.200 --> 0:08:13.880 the media giant agreed in April to pay seven hundred 0:08:13.920 --> 0:08:17.040 and eighty eight million dollars to settle a similar suit 0:08:17.120 --> 0:08:20.520 by Dominion Voting Systems. Global News twenty four hours a 0:08:20.600 --> 0:08:23.160 day and whatever you want it with Bloomberg News Now. 0:08:23.440 --> 0:08:26.000 I'm John Tucker Han. This is Bloomberg Amy. 0:08:26.240 --> 0:08:28.640 All right, thank you John. We bring you the news 0:08:28.680 --> 0:08:31.680 throughout the day here on Bloomberg Radio. But now you 0:08:31.720 --> 0:08:34.600 can get the latest news on demand whenever you want it. 0:08:34.920 --> 0:08:37.840 Subscribe to Bloomberg News Now to get the latest headlines 0:08:37.880 --> 0:08:41.320 at the click of a button. Get informed on your schedule. 0:08:41.360 --> 0:08:44.000 You can listen and subscribe to Bloomberg News Now on 0:08:44.040 --> 0:08:47.920 the Bloomberg Business app, Bloomberg dot com plus Apple, Spotify, 0:08:48.040 --> 0:08:56.720 and anywhere else you get your podcasts. Time now for 0:08:56.760 --> 0:08:59.280 our Bloomberg Sports Updated. For that, we bring in John 0:08:59.360 --> 0:08:59.920 stash Hour. 0:09:01.120 --> 0:09:03.679 Amy Jin. Harbaugh was going to be a hot NFL 0:09:03.760 --> 0:09:07.000 coaching commodity considering the success he had had with the 0:09:07.040 --> 0:09:08.680 forty nine Ers getting them to the Super Bowl, and 0:09:08.679 --> 0:09:11.480 then when he coached Michigan too the undefeated season of 0:09:11.480 --> 0:09:14.480 the National Championship, he became even hotter. Spoke with many 0:09:14.880 --> 0:09:17.760 NFL teams, but the LA Chargers were always seen as 0:09:17.800 --> 0:09:21.440 the favorites. He wants quarterback the Chargers back in nineteen 0:09:21.520 --> 0:09:24.720 ninety nine. In two thousand, hits official a five year deal, 0:09:24.840 --> 0:09:28.920 Harbaugh taking over an underachieving Chargers team that has a 0:09:28.920 --> 0:09:34.000 good quarterback in Justin Herbert Nick. Sirianni staying in Philadelphia, 0:09:34.040 --> 0:09:37.440 but the Eagles changing both coordinators and they say that 0:09:37.520 --> 0:09:40.800 Sirianni will no longer be as involved in the offense. 0:09:40.840 --> 0:09:43.640 The Eagles had that horrendous slump at the end of 0:09:43.679 --> 0:09:48.240 this past season. Joe Tony, pro Bowl guard doubtful for 0:09:48.360 --> 0:09:51.679 the Kansas City Chiefs in their AFC Championship game Sunday 0:09:52.200 --> 0:09:56.200 in Baltimore, NBA Milwaukee Cleveland won twenty six to one sixteen. 0:09:56.240 --> 0:09:57.920 It was the first game for the Bucks since the 0:09:58.000 --> 0:10:01.880 coaching change the firing of Adrian Griffin. Joe Prunty coached 0:10:01.880 --> 0:10:05.040 them last night, but Doc Rivers is taking over the Bucks. 0:10:05.240 --> 0:10:08.760 He went to college in Milwaukee at Marquette. He's had 0:10:08.840 --> 0:10:12.720 sixteen straight coaching seasons with an over five hundred record. 0:10:12.880 --> 0:10:15.240 Minnesota got thirty eight points from Anthony Edwards in a 0:10:15.280 --> 0:10:18.360 one eighteen one oh seven win at Washington. The Warriors 0:10:18.360 --> 0:10:20.080 played for the first time since the death of their 0:10:20.120 --> 0:10:23.880 assistant coach Dejon Milojovich. They beat Atlanta one thirty four 0:10:23.880 --> 0:10:26.839 to one twelve. Joseph Kamega scored twenty five points. He 0:10:26.880 --> 0:10:31.200 shot eleven for eleven John Stashanward Bloomberg Sports. 0:10:33.000 --> 0:10:36.000 From coast to coast, from New York to San Francisco, 0:10:36.320 --> 0:10:41.400 Boston to Washington, DC, nationwide on SYRIASXAM, the Bloomberg Business 0:10:41.400 --> 0:10:45.160 appened Bloomberg dot Com. This is Bloomberg Daybreak. 0:10:46.280 --> 0:10:46.720 Good morning. 0:10:46.760 --> 0:10:49.920 I'm Nathan Hager. The latest earnings report from Tesla isn't 0:10:50.000 --> 0:10:53.439 exactly giving investors a charge this morning. The electric vehicle 0:10:53.480 --> 0:10:55.760 Giant came in with earnings and revenue just shy of 0:10:55.800 --> 0:10:58.960 Wall Street estimates, but CEO Elon Musk's warning that growth 0:10:59.000 --> 0:11:02.720 will be notably lower this year is certainly putting a 0:11:02.720 --> 0:11:05.199 weight on the share price this morning. So let's get 0:11:05.240 --> 0:11:08.200 more on the outlook for Tesla and EV's. We're joined 0:11:08.200 --> 0:11:12.160 now by Bloomberg News transportation reporter Danny Lee. Danny, thanks 0:11:12.200 --> 0:11:16.280 for being with us. Notably lower is that the phrase 0:11:16.320 --> 0:11:18.200 that's gott investors spoke this morning. 0:11:19.000 --> 0:11:22.400 I think it's a combination of being notably lower or 0:11:22.520 --> 0:11:25.920 nottally slower in fact on growth, and the EV Giant 0:11:26.080 --> 0:11:29.400 didn't even offer four year guidance for twenty twenty four, 0:11:29.880 --> 0:11:33.000 and that is what is spooking investors. And fans alike, 0:11:33.080 --> 0:11:36.520 and what you could characterize this year twenty twenty four 0:11:36.600 --> 0:11:40.240 as a transition year for Tesla, you know, all that 0:11:40.400 --> 0:11:43.240 growth of the past couple of years and nothing in 0:11:43.320 --> 0:11:47.320 between until next year when it releases new models. 0:11:47.960 --> 0:11:51.960 Those new models include, at least according to Elon Musk 0:11:52.040 --> 0:11:55.520 on the call, a new lower priced car. We've kind 0:11:55.520 --> 0:11:57.120 of heard that before, haven't we. 0:11:58.720 --> 0:12:02.319 The el Mousk has a who aspired to have a 0:12:02.520 --> 0:12:05.599 low cost car but has never delivered. And this is 0:12:05.679 --> 0:12:09.360 now Elon Musk for the first time with Tesla executing 0:12:09.600 --> 0:12:13.679 on that promise. But this is still going to come 0:12:13.800 --> 0:12:17.120 in the back end of twenty twenty five. So even 0:12:17.200 --> 0:12:19.320 though this does come in twenty twenty five, it's still 0:12:19.440 --> 0:12:21.800 almost like two years away from where we are now, 0:12:21.920 --> 0:12:25.640 and it's a considerable weight for then investors having to 0:12:25.720 --> 0:12:28.160 wait for this ramp up all the costs that go 0:12:28.320 --> 0:12:31.120 into building up new models. As we've seen with the 0:12:31.160 --> 0:12:34.760 struggle Tesla has with the cyber truck, it's going to 0:12:34.840 --> 0:12:37.080 be a potential dragon earnings. 0:12:37.880 --> 0:12:39.600 And in the meantime, the. 0:12:41.080 --> 0:12:45.720 Ev giant has been cutting costs pretty aggressively and trying 0:12:45.760 --> 0:12:49.719 to get past the headwind of higher interest rates. Is 0:12:49.920 --> 0:12:54.439 there a trajectory for Tesla to continue with that strategy. 0:12:55.720 --> 0:13:00.160 Well, Tesla has been looking to cut its costs. He's 0:13:00.160 --> 0:13:04.000 also been cutting prices, you know, trying to lure consumers 0:13:04.120 --> 0:13:07.719 with these obviously battling higher interest rates, So there is 0:13:07.880 --> 0:13:11.440 always that person pull factor, and Elon's trying to find 0:13:11.800 --> 0:13:14.240 any way which possible to make sure he's getting the 0:13:14.360 --> 0:13:17.679 best possible costs for his product in order to be 0:13:18.000 --> 0:13:20.760 so much more competitive when it comes to a price. 0:13:20.960 --> 0:13:23.439 And obviously what we see right now the backdrop for 0:13:23.520 --> 0:13:27.000 the US consumer in particular is they're not necessarily as 0:13:27.160 --> 0:13:29.760 willing to buy new electric vehicles. 0:13:30.080 --> 0:13:32.719 Another interesting note for Musk on the call, saying that 0:13:32.880 --> 0:13:35.079 he might need a bigger stake in the company to 0:13:35.160 --> 0:13:38.719 avoid being ousted as CEO. Is governance becoming more of 0:13:38.760 --> 0:13:42.800 an issue for Tesla on the board, particularly with all 0:13:42.800 --> 0:13:44.640 the distractions around X and whatnot. 0:13:45.800 --> 0:13:51.080 Well, Elon Musk, you know, after buying Twitter and selling 0:13:51.160 --> 0:13:56.920 down his shares in Tesla to fund this purchase, he 0:13:57.000 --> 0:13:59.560 will saber rattle as much as he wants to ensure 0:13:59.600 --> 0:14:02.920 that he potentially will get what he ultimately wants is 0:14:03.440 --> 0:14:06.720 some form of better control, bigger controlled again of Tesla. 0:14:06.840 --> 0:14:09.120 So I think this is a wait and see moment 0:14:09.720 --> 0:14:15.440 whether the border seeds to his demands. But ultimately Tesla, 0:14:16.400 --> 0:14:20.280 Elon Musk Rather is really the lynchpin in driving Tesla forward. 0:14:20.680 --> 0:14:23.840 Of course, it's not just Tesla facing headwinds. Boeing has 0:14:23.920 --> 0:14:27.240 the grounded seven thirty seven Max nine and now this 0:14:28.320 --> 0:14:32.280 production freeze ordered from the FAA. It seems like the 0:14:32.400 --> 0:14:34.200 hits just keep on coming for Boeing. 0:14:34.280 --> 0:14:40.400 Danny, Yeah, I mean the US Federal Aviation Administration escalating 0:14:40.760 --> 0:14:44.200 its response in the wake of the Alaska Airlines accident, 0:14:44.680 --> 0:14:47.720 and in two parts it's partly good news for Boeing 0:14:47.800 --> 0:14:51.360 and obviously partly very bad news. On the good side, 0:14:51.400 --> 0:14:55.840 there is the restart of the inspections that airlines can 0:14:56.040 --> 0:14:59.120 now look to get the grounded Max nines back into 0:14:59.200 --> 0:15:05.200 the how the restriction on expanding production. This is all 0:15:05.320 --> 0:15:10.680 key and very directly important to Boeing's ability to grow. 0:15:10.960 --> 0:15:15.480 It's cash cow seventy seven Max. You all the money 0:15:15.520 --> 0:15:18.600 that goes into delivering the revenue. It's so important. It 0:15:18.800 --> 0:15:21.320 delivers thirty eight planes a month and it's trying to 0:15:21.360 --> 0:15:23.640 grow that to fifty. So there's a big gap right 0:15:23.720 --> 0:15:26.880 now into what it potentially could do in future. And 0:15:27.080 --> 0:15:30.680 on January thirty first, Boeing is meant to be delivering 0:15:30.800 --> 0:15:34.240 its guidance for twenty twenty four, so what effect this 0:15:34.440 --> 0:15:37.720 has on its future outlook into twenty twenty four will 0:15:37.760 --> 0:15:38.600 be very, very key. 0:15:40.680 --> 0:15:43.560 This is Bloomberg day Break Today, your morning brief on 0:15:43.680 --> 0:15:47.120 the story's making news from Wall Street to Washington and beyond. 0:15:47.400 --> 0:15:50.360 Look for us on your podcast feed by six am 0:15:50.520 --> 0:15:54.680 Eastern each morning, on Apple, Spotify, and anywhere else you 0:15:54.800 --> 0:15:55.800 get your podcasts. 0:15:56.160 --> 0:15:58.800 You can also listen live each morning starting at five 0:15:58.880 --> 0:16:01.280 am Wall Street Time. I'm on Bloomberg eleven three to 0:16:01.320 --> 0:16:04.320 zero in New York, Bloomberg ninety nine one in Washington, 0:16:04.480 --> 0:16:07.680 Bloomberg one oh sixty one in Boston, and Bloomberg ninety 0:16:07.720 --> 0:16:09.080 sixty in San Francisco. 0:16:09.280 --> 0:16:12.800 Our flagship New York station is also available on your 0:16:12.920 --> 0:16:18.239 Amazon Alexa devices. Just say Alexa play Bloomberg eleven thirty. 0:16:18.160 --> 0:16:20.960 Plus listen coast to coast on the Bloomberg Business app, 0:16:21.080 --> 0:16:24.960 Sirius Xmbiheartradio app, and on Bloomberg dot Com. 0:16:25.120 --> 0:16:28.520 I'm Nathan Hager and I'm Abe Morris. Join us again 0:16:28.640 --> 0:16:31.520 tomorrow morning. For all the news you need to start 0:16:31.560 --> 0:16:34.240 your day right here on Bloomberg Daybreak