Lots More on the Ongoing Mess That Is Boeing

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Odd Lots 23 min 8 speakers 3 chapters transcribed 1 month ago
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David Weston 0:00
Hi, I'm David Weston. Join me every week for the Wall Street Week Podcast to hear stories of capitalism from around the world. From geopolitical tensions and central bank decisions to artificial intelligence, energy, and infrastructure, we sit down with the CEOs, economists, policymakers, and thought leaders whose decisions are shaping markets everywhere we find them. Subscribe to the Wall Street Week Podcast on Apple, Spotify. Five or anywhere you listen.
Unknown 0:32
Bloomberg Audio Studios Podcasts Radio News.
Tracy Alloway 0:40
Feel like we might have made a mistake recording this episode on Wednesday, October twenty third, which is the day that we're awaiting the strike vote over at Boeing.
Joe Weisenthal 0:50
Oh yeah. But you know Yes, that's right. That's annoying timing. But on the other hand, what I would say is that Boeing's issues seem so deep, et cetera, that the strike is only one angle. It's another trouble. So even if there were you know, even if there were all the you know, by the time people listen to this and there's some resolution, I don't think there's gonna be some resolution to the issues at Boeing writ large.
Tracy Alloway 1:15
Well, the good news, I guess, in terms of timing is also that we had Boeing earnings just yesterday. So you can kind of see a lot of those issues that you are alluding to directly on the balance sheet. Do you wanna know some some good news from my personal life?
Joe Weisenthal 1:31
Yeah, please.
Tracy Alloway 1:31
Okay. The correlation between Boeing and Southwest, their biggest customer, is finally breaking down. So Southwest shares are up. Boeing is still pretty depressed. My dad used to fly for Southwest, so he still has a lot of Southwest stock. So So
Joe Weisenthal 1:47
there's a disclaimer. This is a this is a financial disclaimer. That's all right. This is what
Tracy Alloway 1:52
also this is what constitutes good news for me nowadays.
Joe Weisenthal 1:58
I did a deadlift. One, two, three.
Tracy Alloway 2:01
Okay, good. What's Gemini? Uh barges.
Joe Weisenthal 2:06
This is an after school special, except
Tracy Alloway 2:07
I've decided I'm gonna base my entire personality going forward on campaigning for a strategic pork reserve in the US.
Joe Weisenthal 2:13
Where's the best squid ink pasta?
Tracy Alloway 2:15
These are the the important questions. Is it robots taking over the world? No, I No,
Joe Weisenthal 2:18
I think that like in a couple of years the AI will do a really good job of making the Outlaws podcast. And people will say, I don't really need to listen to Joe and Tracy anymore. We do have
Tracy Alloway 2:30
Cha Ching.

Why is Boeing’s stock down 40% and what are the headline crises?

Joe Weisenthal 2:31
Perfect guest?
Tracy Alloway 2:33
You're listening to Lots More, where we catch up with friends about what's going on right now.
Joe Weisenthal 2:38
Because even when the odd lots is over, there's always lots more.
Tracy Alloway 2:41
And we really do have the perfect guest.
Joe Weisenthal 2:47
We did an episode, I don't know, maybe three or four weeks ago, and the title of that one was The Ongoing Mess That Is Intel. And this one I think we're gonna title The Ongoing Mess That Is Boeing. But it's interesting, I don't know if you saw earlier this week, I think it might have been Monday, Greg Ipp over at the Wall Street Journal wrote this call that is basically like The crises at Intel and Boeing are a national emergency. And this is something that I've thought specifically. Sometimes random people who know that I like cover stuff like this for work, they'll say, what are you worried about these days? And this is usually what I go to first, that we're in an era of we're trying to revitalize US manufacturing, and yet the two defining flagship US manufacturers are deeply struggling.
Joe Weisenthal 3:31
And what does that say about institutional operations in the nature of US capitalism? These are the companies that I think about first when I worry.
Tracy Alloway 3:40
You know who else thinks about them a lot? Richard Abulafia, who is of course a managing director at Aerodynamic Advisory. We've had him on before talking about both Boeing and Embraer.
Joe Weisenthal 3:52
One day we're gonna talk and it'll be good news. We're gonna talk about something going really right. But I don't think I don't think today is that day yet.
Richard Aboulafia 4:00
Yeah, jetliners delivered to happy customers and and waiting flying public members. That would be terrific news to
Joe Weisenthal 4:06
doors staying on planes, things like that. Well,
Richard Aboulafia 4:09
that's asking
Joe Weisenthal 4:09
a lot. But yeah, okay. Yeah.
Tracy Alloway 4:12
So in terms of what you're watching at Boeing, I just mentioned the strike vote is coming later today.

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