boeing didn't.ere is a meeting i wrote about in 1992 that gordon bassoon later become ceo of continental. executive and the commercial airplane business went around the room and said she would 7:30 seven?and-new and he got a kick under the table from someone who wanted to vote the other way. he said nexgen is the way to go the vote was five -- three. there been points toto boeing's history work could have taken the step to invest. it was always the more expedient one to not because of the wide base the 7:30 seven had an the factory was already paid off. >> historically boeing with the guess with the 777 as well. when it came time for the 87 the culture of cost cutting was already therehi in chicago. and so they came up with this sourcing so boeing wouldn't have to pay for a lot of it. which was a financial disaster. one of the main lessons of the max tragedy? >> the main lesson as i see it is to listen to what your employees are telling you. their managers had a prime directive to minimize training

i think boeing has. sad that you know, the the many effort cost cutting was because of the specter of airbus. the there was there were many opportunities during the past 20 30 years were boeing face this choice, you know, airbus had come out with a plane that was about 20 years newer at the airbus had a plane that that had fly by wire electronic technology boeing didn't there was a meeting i wrote about in 1992 that gordon bethune later become ceo of continental was in where executives in the commercial airplane business went around the room and said should we should we develop a brand new 737 and he got a kick under the table from someone who wanted to vote the other way. he said he said in the next gen is the way to go and the vote was five to three so that there's there been points through boeing's history where it it could have taken the step to invest but it it was always the more expedient one. because of the base the wide base the 737 had and that the fact the tooling was already paid off the fact

the audience leave it to boeing.hey know what to do. he went to the industry lobbying group and then came back to the faa and allowed them to keep flying after the crash. >> it seems like these ideas take hold in an organization at the public agency. but then the groups in corporate america tell them to cut costs and get rid of unions and suddenly that is what you have to do then this whole management level seemed to think they compete against airbus to champion the american industry. in other words by certifying more quickly giving the ability to do itou itself so you have a lot of groupthink. what does boeing need to do to do and so the customers wants rather than have them by airbus? >> what they did at the time was come up with a gang of eight who told it what they want. do they write down on a napkin or something we are going to have a plan from the beginning and everything works and it was in very plain language on a napkin. when i'm in front of congress and asked why we did it this way i say because you told u

it is for the boe to propose what it wants and for the markets to dispose what the boe says. traders to decide whether the boe's actions are sufficient. if the lbi community finds themselves in a position where they are not fully adjusted to the new reality, we may get that volatility all over again, and the boe may be forced to come back into the market, they may have to do an emergency rate hike. we know they are very reluctant to go down that path. the boe can't be dictating terms of the market when the market seems extremely vulnerable. we've already seen sterling pullback, gilt yields fleming higher this morning. this is not a situation the boe was defined itself in. francine: it does feel like it's remit is political because of what happened with the government mini-budget. so in that case, should the government say friday is your deadline? ven: the central bank has no reason to be buying bonds when it is persisting with qt and rate hikes. it sends a conflicting message about the direction of policy. but there are political ramifications. it's not clear which direction

good morning, do you see the boe having to continue its intervention be on tomorrow? myles: the short answer is probably. the more complicated question is to separate the short-term pressures of market volatility from longer-term dynamics. bigger picture, because of the tax cuts, the u.k. needs to issue more debt and therefore the price onds to be hired to attract new buyers. we are all focused on the accelerator, which is volatility has created leveraging pressure amongst ldi accounts, which has created risks of financial instability and that has brought the boe into the market. i struggle to see how the boe stepping back in a couple of days' time will not put more pressure on the market, and we will not see greater volatility which will then require another policy response from the bank. it doesn't have to take the same form, but it seems like they will have to do something to stabilize the market until you get some confirmation about the extent of the fiscal u-turn from the government. francine: there are two issues, the credibility of both institutions as there is

market, it has two buyers, boe and pension funds. both are giving up on it and that is why we have the collapse in the market. there is issuance coming in. most of the issuance, the lows that we have seen the last couple of years, that is why they keep issuing bonds. now they need to refinance that. alix: thanks a lot, we really appreciate it. pooja kumra of td bank. let's go to the greenwich economic forum. ark investment's cathie wood is speaking to erik schatzker. erik: i just gave you the conventional reasons for why what happened happened. from your perspective, what happened? cathie: a sea of greed taking off her high inflation stocks. what is happening now, we saw a dry run of it before covid. before covid, as we realized what a problem we had on our hands, the globe had, the markets were down, in one months time, 25%. we were down 46%. from those lows as you said from april 2021, 350%. since then, to keep the perspective, down 75% at our low inmate. we are probably testing it today as we speak. we shall see. one of the things

>> you have a hike by the boe.f they do with the market is pricing in, there is risk to the market. there is a limit to what they can do to meet market expectation. tom: what does that limit look like? >> not what the market is pricing in. the fact that in the last 10 days, being removed. the government is more aware of the risk. francine: what is your take on europe right now? germany says they are ready to help out with some of the joint issuance. is that really a temporary measure or is europe on a new path forward? >> europe is always making big steps when you have a crisis. any sense to tackle this energy crisis would be something to come. the markets wants to see something that comes beyond the firefighting, the emergency package. investing in some of the issues would be resolved in a productive way. dealing with this shock. fiscal spending is good. tom: on earnings, the consensus is for high single digit eps growth, margin expansion. does that hold? >> i don't think it does. so far, we have seen a bit of dis

dani: which is the greatest danger from the boe right now? staying in market for the pensions or mixing that and focusing on short-term interest rates? mitesh: it is a very difficult situation to be in. on one hand, the decision-makers panel which was published a week or so ago shows that they are now up at 4.8% from 4.2%. there is significant pressure to get in line with their market points by the middle of next year. this is versus where we sit today. the november meeting is now priced at 112 basis points. they just added a 50 basis point hike a few weeks ago. more broadly speaking, if they have a decision to make, i thought it was bold and they have to unwind by the end of this week. the reality is, those assets, it will be difficult to do that. manus: your road is discretionary. from a general sentiment point of view, how are you positioning for forward inflation? will there be another attack on sterling or guilt -- gilt? mitesh: i think for sharp pressure has diminished. it was at 3, 4 hikes. in terms of positioning, it is much more diff

you bring it back to the boe policy, there is still interest rate risk. we are here in from the chancellor but we also have u.k. cpi on thursday, and that is persistently high, expected to come in at 9%, just shy of double digits. francine: every time you see a relatively sharp interest rate rise, you have to look at places in the market which are leveraged, this is partly what happened in the pensions market. are there any other pockets in the u.k. we should be worried about? karim: the housing market, we have a lot of fixed rate mortgages that are rolling off to floating in 2023, analysts have been pointing to this especially because it will intersect with the peak terminal rate of the boe. the mortgage market is something worth monitoring. but ultimately, that policy path from the boe is still going to remain hawkish. we heard that from governor bailey in washington earlier. and it's going to remain hawkish as long as persistent inflationary pressures especially at the core level remain. tom: to the fed, on the back of that university of michigan surve

i'm try to get an idea of the boe's move today. is it about giving more breathing room to the government? is it about saving the housing market? is about saving pension funds? joe: it seems like it is all of the above. it is providing the support to the bond market -- they are trying to bring out all of their weapons to reassure markets and restore that credibility in u.k. assets because that was lacking in the last two weeks. as we have seen with the bond yields -- tom: thank you for getting us up to speed on to what is happening with the u.k. government response. joining us is jordan rochester. you had this message from the boe come the chancellor pulling for alert -- the chancellor pulling forward his fiscal plan. are you reassured? jordan: not really. what it does show is the government is willing to move quicker, which is kind of expected after the recent you turn on the tax cuts, it raises a question what is your gdp assumption. in that case the forecast for gilt issuance is not high enough. i plan to do spending cuts in the

the ft reports the boe could delay qt even further. a rebound after a solid bank earnings from the u.s. and negative pressure on u.k. markets using. and sale on the cards credit suisse considers selling its u.s. asset management business. abu dhabi and saudi arabia are exploring investing in the investment bank. >> we look at futures and they seem to be supported and looking to the fact that china has delayed its gdp reading. support comes from a bit of stability in the u.k. which was a long time coming. >> the earnings picture, we heard from bank of america and they said they had to squint to see any signs of pressure on the consumer and a sense of relief even temporarily about what is happening and the u.k. the ft answering the question asked how can you be buying bonds when you are preparing to sell them back under the markets with qt? they have pushed back those plans around concerns of the vulnerabilities in the gilt markets. the ftse 100 up 8/10 of 1%. the cac 40 gaining 40 points on a day that has been described that possibly co

as the boe prepares to step away from bond buying action. the spanish ibex gaining 1.5%, the ftse 100 up more than 1% and the cac 40 gaining 1.5%. picking up after a strong session in the stateside and asia. let's switch it over to our cross assets board and get a sense how futures are looking. before, we will check on sterling and a big day as the boe assesses whether it can walk away from bond purchases as the chancellor returns to the u.k. to work through the mess. the pound currently gaining over two days, 2%, currently 1.13 will this hold? cross assets, we want to bring your attention to asia, currently up to .5% on hstech, hong kong listed tech companies at one point gaining 5%, that rally follow-through pronounced in tech stocks. futures stateside building on gains yesterday, up .6%. the 10-year with a move lower for basis points, 3.89, brent $94 a barrel gaining .3%. let's have a look at gilts as they open on this important day for u.k. bond markets. currently a modest bid for u.k. debt, 3.59 on the two-year, the five-year 4.24, the

that's boeing.ing. some from an ak wi sags. talk about the need to continue to grow at microsoft and then how they are hurt by the collapse in anything personal computing. te texas instruments confirms. i'm going to put it bluntly. the cloud is no longer in the early innings. that's not longer the case and companies that live and die by the cloud must recognize the cloud itself is now cyclical. >> if that's the case, and i want to get joe in this real quick. how do you think about microsoft as your cloud and then at the multiple they are sitting at now relative to a sales force the cloud company, the sass, sort of model for everybody? >> i think in the skas of salesforce, while i think it's doing well they have to address the notion of what starboard is saying. their costs are too high. i think all the companies. i've been saying this is no longer a lich group because they seem to have lost or do not know how to fire. they have to fire. not fill positions and not slow hiring. but fire. the glut in t

boeing as it was, boeing had the trust of its regulator. we regained, we are regaining the trust of our regulator working hand and hand with them. not putting deadlines on them. the quality of the product portfolio. will the public want to fly it yes. across the board, robert said himself how much he liked the 787 and passengers liked the 787. the last straw is the supply chain. get it stable, predictable and deliver. that is what robert now is referring to. we're all over it. we're working as hard as we can. like my counterparts in the industry we have to smart about it, patient about it and train the workers moving in the industry the right way and get that done. >> dave calhoun ceo of boeing where they reported a huge loss because of the 2 prnt $8 billion charge related to fix price defense programs. but better than expected. back to you. >>> great work this morning phil. appreciate that. still to come this morning. bristol meyers chief on the companies earnings and where the strong dollar fits in the picture. we get to visa and kraft an

i wonder how much of a candidate boeing would be?isappointment stock down nor than 30% this year even in such a strong time for airlines >> yeah. so it's a great question a question i get all the time from investors it's hard to speculate on that i really can't, but it is a question that i get all the time because of the series of disappointments the company has had. >> would you buy the stock your target even at neutral higher than boeing now >> in a trading range. seen the stock trade from these levels up to the $170 level. traded back and forth. i wouldn't be surprised going into the latter part of the year if the stock rallies commercial aerospace seems -- range bound until something gets sorted out, until clarity with the investment community what they're doing, the stock seems range bound. to be clear, you're seeing probably indication out of boeing and wraith yorn technologies and the feedback from invest just a cleaner story easier boeing's become very, very complicated because seems like almost every quarter there's a surpri

. >> next, boeing will post results bright and early friday. tim seymour, i know you're champing at the bit for this one. >> okay, champ i think bowing is a buy. i'd be trading it for a variety of reasons we had a great week for airlines you can't tell me that doesn't trickle into gold sentiment and the fundamental story around boeing needs to get back to free cash flow i think they're going to show $4 billion in the second half of 2022 investor week. you rally around that deliveries of the 787 means this is a better place china gave a lot of news about opening up their economy and quarantine limitations great for airlines, very good for boeing. >> julie biel, the elder stateswoman, what are your thoughts >> i agree with tim. i think there's a lot that's interesting and appealing here, particularly for unite right now who's embroiled with their pilots right now and buying more of those 787s helps them negotiate with those pilots because more of the guys want to be flying the wide bodies air bus is also in the mix for that, but boeing can delive

but the boe are delaying qt.lds fell at 1.50 basis points yesterday, the long end of the curve we are looking at. manus: the second-biggest move in the gilt market on record, the fuel has been added across the spectrum this morning on this ft story that there could be a delay to qt. monetary policy giving the government breathing space. it has also added a little more momentum to the pound, it has rallied more so on the junking of truss-onomics, and what you have is for example bluebay cutting their short positions on u.k. government debt, seeing yields in the short end of the u.s. dropped because of this new narrative from the bank of england, maybe delaying qt. crude up a 10th of 1% on supply shortages. we understand the uae oil minister will have a press conference later on today. and it is important to say while there is no huge liquidity in the gas market, it is down because storage facilities are 92% full and we are waiting to hear what the intervention will be from the european commission on prices. tom: d

let's focus on the boe.overnor andrew bailey warning pension funds they have until the end of the week to wind up positions they cannot maintain before the central bank pulls support. temporary intervention will end on friday despite calls to extend the program. >> we have announced we will be out by the end of the week. the rebalancing must be done i all the funds. you have three days left. you've got to get this done. again, part of the essence of the financial stability intervention is that it is purely temporary. dani: those comments did rattle broad markets. triggering a cell in not only the pound but u.s. stocks as well. we get a report this morning that the boe properly told bankers there may be long bond purchases beyond friday. joining us is the ubs global wealth management global head of investment communications. crazy times. thank you for joining us. i do wonder which is the more worse, more people of scenarios? the boe ending support friday before tensions have finished cleaning up their liquidi

and we're, we're, let's talk about boeing going forward. how is bullying going to sustain its growth? is a gun going to come from? technology is going to come from the evaluation sector in the commercial part, or is it going to be the military hardware and solutions that boeing provides? i think it all 3 of the, i mean we roughly 6040 is the commercial of a for the, for the defense side of our business, but built into that a big and growing factor call service. so on both commercial and defense side, we're helping sustain airplane. through the life of the cars, running the plains, birth, all of big, big growth area. i mean my job is to see how we can become even more global as a company. we already coakley level, but i see big growth, for example, in the commercial feel in asia, middle east and asia, big markets over the next 2020 years. and all of that is growth. we're very excited about it as we come out of probably the 3 hardest years in the nation history in terms of commercial flights because of it. and that is our show for this week.

the boe. they also did not let the office of budget responsibility do a forecast. these factors have to be thought about, but it is, of course, a warning to governments around the world dealing with the cost of living crisis. alix: absolutely. really great reporting all morning long. and thank you for the cap reference as well. we will be back to you in the next hour. s&p up by 0.6%. overnight, the flattening of the long end of the treasury curve is showing signs of exhaustion, and treasury yields may peak by year-end. 10-year now up by about 10 basis points. that leads us to the question of the day. whether you are looking at u.k. politics or the equity market or the bond market, exhausted? i know guy is. joining us now is mike wilson, chief strategist at morgan stanley. we have seen this stealth rally underway for a few days now. is it exhausted, are you exhausted at this point? >> i think everybody is exhausted, that's for sure. even in bull markets, i think people get exhausted. this has b

how is respect for the masters of the organization of provocations, that is, boeing, in this sense, was. this was an exemplary case well, that is, they find out and what did they do more, boeing or bucha, well, you know perfectly well to try to , uh, in general, uh, to deny obvious facts and deny your own crimes. well, i don't know what they are counting on when everyone absolutely everyone knows who did what and it is so transparent. in this whole body, they started this conversation about the fact that they are fighting satanism. look , constantly. we talk about satanism, and you talk, and putin talks, and kadyrov talks. political satanism, what are we fighting with and how will ego simply win, i am here asserting superiority as if yes once and what is called but the second time is a lie how everything is the way of life and the meaning of life endless popularization and idealization of evil blood perverted mud this is in mass culture, and poisoning is poisoning, so to speak, of clean and still innocent children, yes, all kinds of disgusting filth and obsessing over it, and getting pl

-- would that help the boe's job? ven: we heard from them yesterday saying they are already getting messages from the chancellor's office about fiscal balancing. that will be crucial, they also mentioned that cap on energy, crucial pointers for what the boe will do. the boe will have to raise rates on november 3, there is little question about that but how much? late last week we saw that the markets were factoring in a full percentage point increase, now they are not so sure. but there is a sense that there is bound to be measures taken on the fiscal side. then the boe will hike to 75 basis points instead of 100 basis points. francine: ven ram with his thoughts on where he sees gilts heading. there is a great live blog entry from him. we will be back with tatjana puhan, deputy chief investment officer at tobam. world leaders are warning russia about escalating the war on ukraine. we will bring you the latest. this is bloomberg. ♪ >> you actually see some pickup in net interest income this quarter already, on the back

where does that leave the boe government third? >> markets uprising 96 basis points of rate increase november 3, the bank of england have already been hawkish in the past few days. and the bank of ireland governor has said they will raise rates as needed. the inflation print we got this morning, retail price inflation which is the measure of inflation -- has already gone up 12%. the boe does not have time on its hands, it needs to raise rates, the sooner the better, the interest rates and the u.k. benchmark are not in neutral territory yet. the bank of england -- before the economy starts showing pressures, and therefore the back will raise rates 100 basis points on november 3. francine: they are pretty decisive on going ahead with qt a couple of days before the november meeting, how much will that change financial conditions? how much effectively is a tightening the economy? ven: at the pace they are going, i don't think it will be too much for markets. previous estimates are that team lead to increases for the entire year four qu

they are trying to test the boe.about boe policy, and at the same time, fiscal policy moving in opposition to each other. coming up, we would bring a panel with ark's cathie wood. stay with us for that. this is bloomberg. ♪ dani: it is tuesday, october 11, another day of pain, as concerns go to market stability with the boe stepping in for the second time in 24 hours. the countdown to the close starts right now. >> the countdown is on in europe. this is bloomberg markets: european close, with guy johnson and alix steel. dani:

the boe seemed to fail to quell it. how will it all end? laura: last nights events were concerning because there had been some elements of stability last week compared to the week before. it does seem the boe will be tested in terms of the purchases. that then pushes tapering down the line, as well. it is hard to imagine that could be happening at the end of the month when we will only just hear from the chancellor to really see what will be happening on the purchases front. it really complicates the picture. . the markets ap uncertainty i think there is some significant deleveraging going on in the market. the bones are causing the problem. maybe the boe could look to incorporate that in its purchases. it will be driving yields. around the treasury market when the natural buyers are not there and you are in a bit of a bond rout, it can really have spillover effects quite quickly. rishaad: laura, always a pleasure. macro sales at jp morgan australia. vonnie quinn in new york. vonnie: a selloff in u.k. bonds. moving to extend an emergency ba

perhaps the boe would have to push back.hey are pledging the quantitative easing will end this friday. global investors are very anxious about where this is going. >> talking about the u.k. assets in more detail. even with that level of intervention we are seeing the 30 year debt rising. this is a story still of the government. the shock of that deliberate tax cut package. the level of uncertainty we still have around the details. that could leave permanent scars on the market. the boe is really trying to calm the market. they said the emergency buying will end on friday. we saw that reflected. new zealand has come online. we will be risk on throughout the session. not much to improve the picture. it is not just the boe coming into play. the imf warning that the worst is yet to come. the economy is going through a windshield. that is a very strong,. >> we keep talking about what we compare this to? some people say it is without precedent. take a listen to what he had to say about china. >> i think the longer-term picture in

it is remarkable that the boe has perhaps stepped in again. its operation is expected to end friday, designing a new tool to ensure there is adequate liquidity. and the geopolitics and what is happening with ukraine and russia and that data working ahead to thursday. alix: there is a stronger dollar. you have inflation coming out. how do you hedge all of it? i should point out the semi conductor index down almost 9% in the last two trading days. tom: what is the biggest risk event this week for markets? joining us, christine in the studio in london. what is your take? there is a lot markets have to work through this morning and the hit already across the equity space. >> i'm going to argue it is with the boe's went to do with this program. if you recall, the long end of the gilt market, that reverberated across the entire bond market, everything from treasuries to european bonds or following the direction of the gilt market because what we saw in the u.k. was potentially the worst case scenario when you have the process of monetary policy head

the boe interventions were last week.e concerns about the pension market and the delay of quantitative tightening, but does the bank of england continue with their intention to tighten qe? tom: in terms of the buying they have been doing to add certainty to this market and offset pressure on pension funds, do they have to formulate a different response post october 14? shaan: it depends on how calm of current market environment is. they only bought one billion in bonds, so it was a very successful package. you hope that over the next couple weeks, markets remain calm, and that provides the ingredients to tighten further. given that the pound is under pressure, it might be something to get to. francine: we will be live in luxembourg mixed. -- next. this is bloomberg. ♪ francine: welcome back to 44 minutes trading day. tom and i were talking off-camera, it is messy. treasury and yields looking for direction, reversing in the u.k. and oil going off. tom: happy monday if you invested in porsche or are worried about oil market

boeing has been a name with the ebbs and flows and fits and starts of the global reopening boeing givessight of what we see from the business travel perspective and global economy demand that is something we will look at if you think of the other names. apple and the other tech da darlings and the 14 phones selling. i want to look at the other names outside of mega cap. we have seen a revaluation and reset in the tech names. >> so how much -- we know interest rates are framing the discussion and fed policy framing the discussion here. is it stand to reason the corporate earnings don't mean as much given the fact we have fed meeting and interest rate decision coming up >> dom, look at the 4 of 11 s&p sectors. earnings growth year over year positive led by energy and industrials. i get so focused on sector dislocation. in 2022, it was the year amplified. you have an opportunity to see what has come to life recently last week the beat up technology sector we saw a move last week. you have to walk through financials and health care and bio-tech bio-tech ibb has been a name that has fallen o

not everybody has done boeing, decided for good reason that we would not do that. one of the major concerns about sustainability and sustainable fuel is that it isn't the silver bullet that people would like to see it. there is an issue with transporting it. there are that many people who are producing it, even when it is being produced. the price is quite high, so the 2050 carbon neutrality target is it achievable? is it real and how is going going to help? there are 4 big elements to this. first. the best thing you can do is buy a new play with from whichever company have in 25 to in common reduction on a plane that replaces no pain. the 2nd thing that we're working on is digital technology to help the fly more efficiently and avoid separately my airport. you thought you can save about 10 percent that way. of the 3rd, and this is the big new area for us, is to get those fees flying with sustainable asian fuel and then build that beyond 2050. we're looking at new technologies, electric plains, where does hydrogen fit into this? but that won't change the fleet. tha

economic institutions as the former boe governor has said has been undermined. that's why the boe has temporarily step in, put financial stability over fighting inflation and look like it's dominated by fiscal policy. >> i'm sure he will want to come talk to us. thank you very much indeed. the prime minister says she wants to reach out to markets. that she needs to make her government and its policies more palatable to the market. what do the markets want to hear? our guest joining us now on set. what did you make of the eight minute rest conference? are you convinced this is a government -- >> it is not convincing so far. earlier today when the speculation about quasi being removed from office, that lifted expectations considerably that there would be a complete 180 u-turn on the tax policy measures that were announced on the 23rd. clearly we haven't had that hence the reversal in the markets. in a different measurement talking about if you had scrapped the entire taxcutting plan, you would still have needed substantial government departmental spending cuts alo

bloomberg's boe. jules, i know you have been waiting for it. take it away. >> you have to give everyone something to wait for. asian stocks today are a. probably on the back of what we saw in trade. each report coming through there. it is about the momentum we are seeing and rebound. . singapore, monetary decision to try and rain back -- to tried the greenback. let's take a look at jade. speculation again. when you look at the futures spiking, there are some suggestions. it has only been will herbal. -- vulnerable. a lot of focus on what we are going to see next. the main thing we are going to see is volatility. it is quite team compared to where we were in september. matt: the debate rolls on. a little bit of action is enough to stop that monster move. to come on the show, pivot, --. u.s. core inflation rose in september. likely to secure another rate hike. kailey: you want to prevent? we will also discussed u.k. prime minister as her chancellor rushes back to the u.k. we are watching this is bloomberg. ♪ >> i don't know if it is a soft landin

sheila, you have a long term buy on boeing.he declines this year going against the target, you have hung in there >> the airlines are very healthy. raising guidance pricing is good. they're coming back. but on the airline side, we're more worried about cost pressures into 2023 and into q-4. boeing, you know, they're really falling short on the max deliveries they were at 36 a few short months ago although they didn't have a good order month this month at 09, they're still at 40% chair so in there but what we're looking at the november 1st analyst day is answers from the calhoun on what they're doing to shore up the order a little better and when they will recover within this. >> what about fact that we continue to get good updates from the airlines? and, yet, the global economy continues to deteriorate just today the imf with a big downgrade and the forecast for next year. warning the worst is yet to come how do airline investors square those two things airline fares are a big component of that. we think pricing traffic higher

the have seen in japan, in south korea, we have seen the boe have to intervene as well.dani, would you like a little convexity for the week? somebody out there spent a million bucks saying that it will be twice the pandemic high -- valerie, run in now. the tail risk for equity production, the lowest since 2020, and the credit suisse barometer the lowest since 2008. it is staggering. it could be the best million dollars anybody ever spent. dani: you are flying blind but you would never know, just as you speak, the chart comes up, the power of tv magic. manus: it is actually under here. dani: you are much more tidy than i am. the 150, maybe it is bullish, maybe a hedge in case we see an explosion higher, which i hope we don't come on nerves can't take it. manus: for every bid, there is an offer. if somebody bought the offer, somebody wrote the premium. more from istanbul tomorrow and london on "daybreak: europe." ♪ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fa

boeing is out in about 30 minutes's time. we'll have that breaking news as soon as it hits the tape on the word on wall street coming up. plus, home buyers are scouring hurricane battered florida for housing deals. fox business' ashley webster is there in naples this morning with a full report. don't miss that. you're watching "mornings with maria" live on fox business. we'll be right back. ♪ don't you forget about me. ♪ don't, don't, don't, don't,. ♪ wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. living with metastatic breast cancer means being relentless. because every day matters. and having more of them is possible with verzenio. the only one of its kind proven to help you live significantly longer when taken with fulvestrant, regardless of menopause status. verzenio + fulvestrant is for hr+, her2- metastatic breast cancer that has progressed after hormone therapy. diarrhea is common, may be severe, or

the boe was ahead of tightening before the other g7 central banks started tightening.re they ahead of the contagion risk? i appreciate that the politics are unique but is this what we will continue to experience? guy: let me tie together the ppi information. i think the story is where the commonality lies, it's emblematic of a problem we will face around the financial system. what changed was rates suddenly went up quickly in the gilt market stuff that caught a lot of people by surprise, particularly in the benefit pension system where they used a lot of swaps that required collateral and rates would be settled with a third party and that's the commonality. suddenly from a low rate environment to a high rate environment and its the rate change, not messerli the rate. let's get some smarter people to talk about this. are we being contagious? if the u.k. catches a cold, does the rest of the world sneeze? let's talk about your perspective on what is happening. the u.k. is an interesting test case. we have a mini budget that causes panic about inflation that since -- that

the fed and the boe are expected to boost 75 basis points in the face of stubborn inflation. we starts this monday off the back of a two week rally in this market. it is a strong bear market rally but can it continue in the face of a third fed hike this week? would be the last 75 basis point hike from the fed? the sentiment where getting from goldman sachs is that after we have a higher peak, it might be around 5% but the pace of getting there is slower. we are seeing weakness when it comes to s&p 500 futures but not surprising to see consolidation after two strong weeks of equity rallies. it is a little weaker in china with some challenging data coming out this morning as well as bad news coming from the real estate sector, a major resignation from one of the top firms there. and you're a stoxx 50 futures up half a percent after the rally on friday. we are seeing yields move back higher. we got back above 4% but for most of the week it was a rally in your u.s. 10 year and the entirety of the bond space. it was the first week in 13 that we saw is lower yields. as goldman sach

tom: the markets uprising at least 100 basis points from the boe november 3, can they really be thatressive? kit: they probably will feel the need to be quite aggressive in the sense that they are revising up estimates for what they have to do, as fast as the government is revising its spending plan. the two have to work together if you are going to get the kind of fiscal largess at the same time as you have got an inflation problem, the bank probably does feel that it has to be aggressive to be honest. they will wreck the company in the process between them and we will have to worry about that down the road. does the 1% move stabilize the foreign exchange market, not really. but i wouldn't fall off my chair in surprise if they went more than i expected. manus: stay on that chair. yields alone will not save your currency, that's one thing we have learned in the past 14 days. kit juckes, thank you for joining tom and myself, head of fx strategy at socgen. just look around... this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobo

is the boe backstop enough for gilts? sharon: it is a they will do whatever it takes period, the bank having led wants to stabilize that market. they have not needed to do all that much to stabilize the market so far, but we don't know what is going to happen to gas prices. that is important to the gilt market given the u.k. market has cap the gas price for households, so they have made it linked to gas prices. if we have a not a very severe winter, there will not be big concern for gilts but if it is much cooler, gas prices spike up, that. more concern. tom: the linkages between gas prices and guilt. in terms of u.k. equities, in terms of relative outperformance and the role of corporate buybacks, how important is that even as foreign flow starts to reduce? sharon: we have seen it this year so clearly. the ftse 100, the big cap stocks , not the mid-cap stocks, huge international index. it benefits from that strong dollar because a lot of earnings are in dollars. and half of dividends are paid in dollars on the ftse 100,

boeing's ceo came on "squawk on the street" and talked about amazing demand for narrow body aircraftrative wide bodies and didn't talk about negative things on the call -- when he was speaking an interview with us which is why the stock gas cascaded they don't have a choice boeing's 40 planes earmarked to china for other buyers talked sour there are about 100 planes left that could be traded away too instead of going to china. if i were the chinese government i'd think twice about not taking down those planes. i know they want to make their own but it's not that easy to build an air space industry from scratch when the u.s. government keeps making it harder and harder to buy high quality semi com conductors airbus has more business than they can handle. there are only two companies on earth that can make commercial aircraft at scale and given the incredible demand for planes worldwide, somebody is going to buy them plus, boeing has positive cash know that surprised me. if like me you believe in the travel economy, consider buying the stock of buying, not all at once, please, it's way

flip it over to boeing. boeing shares are actually, interesting behavior here, erasing yesterday's losses. we now have boeing up about 34.33 -- 4.33% getting a boost after china southern airlines web site now indicates it has scheduled domestic flights using the 737 max jet starting october 30th. china is the only major market left where the airlines there have not returned to max after several crashes back in 2018. so here we go, they are apparently diving in, at least to bring back the max. while many stocks within a sector -- and you guys have seen this, right -- they tend to trade together thanks to the mass proliferation of etfs, exchange-traded funds, we're seeing a little bifurcation depending on individual earnings and headlines. for example, while we just showed you boeing having a great session, aerospace and defense contractor northrup northrop grumman early stumble a bit, it is back up just a half percent at the moment. but, listen, you've got a little bit of divergence here. so look at social me

see what happens after the boe's help is gone.i: what do we expect from the boe in terms of continued support? independence front and center for the boe at this moment. lizzy: that is the message andrew bailey wanted to underscore at the imf over the weekend. he suggested figure hikes are going to be needed, including at the november meeting. take a listen to bailey in washington. >> we will not hesitate to raise interest rates to meet the inflation targets, and as things stand today, my best guess is inflationary pressures will require a stronger response than we perhaps thought in august. lizzy: andrew bailey wants to get back to focusing on fighting inflation, but they will have to see how much pension funds have fortified themselves during this interim period of emergency boe support. the form the bank of england's help could be extended in could be an extension of delays of quantitative tightening or a new facility. we will have to see how the gilt market reacts. dani: thank you, lizzy burden, outside of fittingly raining dow

still ahead, boeing seeing a boost over the past month, up 20%.n we expect of the earnings before the bell tomorrow thkefaortoat cine y cts wchomg up ♪♪ ♪♪ be ready for any market with a liquid etf. get in and out with dia. and i'm going to tell you about exciting medicare advantage plans that can provide broad coverage and still may save you money on monthly premiums and prescription drugs. with original medicare you are covered for hospital stays and doctor office visits but you have to meet a deductible for each, and then you're still responsible for 20% of the cost. next, let's look at a medicare supplement plan. as you can see, they cover the same things as original medicare, and they also cover your medicare deductibles and coinsurance. but they often have higher monthly premiums and no prescription drug coverage. now, let's take a look at humana's medicare advantage plans. with a humana medicare advantage plan, hospitals stays, doctor office visits and your original medicare deductibles are covered. and, of course, most humana medicare adva

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the boe starting is quantitative tightening -- it quantitative tightening.ith us now is sean callow, from westpac. we see the lows in september for the pound? sean: i think we had an aberration that spiked to 103.50. the rallies are below 110 in the multiweek. that is what we have had during the last few days, reversal of what many people thought the market so is quite foolish. proposals for our country that is running substantial deficits. it has large issues too. the u.k. is reliant on borrowing money for the rest of the world. the trade and current account deficits. he needs to be attractive to be issuing more debt. we have had is the reversal. it remains probably the same. it could be 10% coming out later today, the economy that as bank of england said was entering a recession. it is very difficult to have the scenario against the u.s. dollar which is essentially strong for all of right reasons. shery: when it comes to account deficits, the trade deficit seems to be weighing on the japanese yen as well. investors are looking at the 1.50 level. why is tha

incinerator alternative urges better waste management as a key strategy to tackle climate change. boeing says approval of the stretch version of its 747 mac airliner could be delayed, as this is not likely to come before mid 2023, delaying the next 10 entry into service. boeing has already orders from delta and other carriers who expected approval in december france, the world's largest mustard consumer has been facing a major shortage this year of its favorite condiments. the country depends heavily on canada for muster seed. now a drought there last year, devastated harvests. sonya fall. nicole reports ah diesel. the medieval capital of burgundy is famous for the mustard the business name. yet even in this town, just of the tank condiment on neil, impossible to find this store owned by french mustard brand. maya is usually a big draw with foreign tourists, but now it attracts french consumers as well. even your sales are restricted, only one job is allowed for household of the north sticking diesel mustard. surely la, i can only get one jar of mustard. i have a lot of friends who asked