george ferguson of bloomberg intelligence joins us now for more. en you look at how drastic the move is, how unprepared were investors for this, and what is the path forward? george: a lot of investors were inside spirit airlines for the potential buy by jetblue. the shares hadn't fully bridged the gap between what jetblue is offering as is typical. and it was pretty wide for a while. some people had jumped in i think on the thought that maybe the government had made a good enough case in the trial. our litigation team who followed the trial closely, thought the government did make the best case. clearly now the judge has gone for not allowing this merger which could put spirit -- spirit will have some very difficult days ahead. their segment of the market is very difficult -- photo low-cost carriers. everybody is extremely price conscious. when sliding them. frontier is their major competition. spirit is not profitable as of 3q. next year looks rough with shares potentially -- with fares potentially falling in the u.s. domestic market. so some pret

our senior analyst george ferguson is joining us now with some perspective.hankfully there were no fatalities or serious injuries. for investors, they now need to ask what happens next. how far does this spread beyond the fleet of jets in question? how do you think about that question? george: thanks for having me on. when we look at the video of the panel break away, it looked pretty clean. it looked to be right around where typically a spare door may go, an exit door in the airplane. so it feels to us like it was probably a fastener that either it was not fastened correctly or failed. and so i think if you are an investor and you are thinking about what this means for boeing, i think if you had more of a structural problem with the airplane you would be concerned that they would have to go through a series of faa examinations and perhaps rejiggering the airplane, which would take a considerable amount of time in my interrupt their -- and might interrupt their ability to deliver airplanes this year. but it looks like a manufacturing defect, and in that case

the bloomberg intelligence senior aerospace analyst george ferguson joins us. asn't a big downplay of the financial results and shifting to focus on safety instead. george: i think the lack of guidance indicates to me that there will be more focused on driving quality control through their manufacturing process both at boeing and their suppliers. i think not giving guidance is a nod to the idea that it may be they don't get as many airplanes out the door this year as they were hoping. i hope it means management realizes that if they do not really's stem this quality problem quickly they could lose market share from it. that is definitely not what they want. paul: you say the word quickly. this has not been the only one at a problem boeing has experienced in recent years. how long will it take to put it -- fix the problems and reinsure -- reassure investors and the flying public? >> they are building airplanes right now. they don't have much time. if they want to make sure everything is of highest quality now. we have seen a number of problems either at spirit ai

jonathan: george ferguson, thank you very much.ve you an update, spirit aerosystems, not to be confused with spirit airlines, is down by more than 18% in the premarket. boeing is down by more than 8%. lisa: that is really alarming. not as safe as it was pre-pandemic. that is not really comforting. i used to get very nervous before i flew as a little kid. and all the stories coming out now -- it is still very safe, you can fly -- they are coming out for a reason, given some of these accidents. tom: i got lucky. i was in the fancy seats one time -- jonathan: just once -- tom: and i turned around and looked back and there was a woman on the ceiling of the airplane. when i saw that, it was like, ok. jonathan: how many tangs in were you? [laughter] tom: i was deep in the tangs. i turned back and there was a woman on the ceiling. wear your seatbelt. jonathan: amazing. tom: wear your seatbelt is the answer. [laughter] lisa: please. jonathan: don't consume those beverages on the plane -- lisa: there was a woman on the ceiling. ♪ ♪ (captiva

george ferguson joins us now for more. we were waiting for the numbers. we've got them. oughts off the back of that? george: this earnings call -- right way to say it is really going to be all about the future. we knew what deliveries were. we had a decent understanding of what revenues were going to be, and profits. i haven't had a chance to date through all of it, but the forward discussion is going to be a what is most important about this call. i think it is going to be his 38 the current rate for the max production? if that is the case and this the faa cap on their manufacturing numbers is not going to affect them for at least six months i would hope they could get pretty well through with the faa review of their manufacturing by then. and it would not impact the year. i think largely would keep the consensus view in place. but i think the fact that they suspended guidance means there is concern about that. there is concern it is going to affect their manufacturing cadence. lisa: zooming out, can we get a sense of how big a difference in profitability it would be for

tom: george ferguson was of immense value on this yesterday and what he was speculating about 24 hours ago. lisa: you don't want to hear the screws are loose on the plane you are about to get into. that is what they were saying, the screws were loose in certain places which is a big problem and a reason you are not seeing that rebound today. tom: if you are granting x number of planes -- grounding x number of planes, you don't call airbus and say -- jonathan: we're still waiting to see how broad this investigation is going to be. unsettling stories around that particular flight on friday. the maintenance checks that were supposed to take place, did it take place? lisa: can they just tighten the screws or do they have to do something else? tom: did you notice john and i, we are very machi -- matchy. lisa: i did notice that. i got an earful when i mentioned that. jonathan: i did not give you any or for. tk did. lisa: [laughter] jonathan: the s&p pulling back. just up a touch on the yields on the 10 year. the euro, -.1% at 1.0935. the data coming out of germany is not good. the overrelian

i'm gonna leave it up to a probe like george ferguson and steve tried to tell me, you will an airplaneeck every rivet? how does that work? jonathan: bowing down 2% premarket. coming up premarket data with ppi and mohamed el-erian is with us to close out this hour in the show. from new york city, this is bloomberg. ♪ ♪ ♪ ♪ ♪ ♪ ♪ - if i told you something extends your life span, improves your sleep, makes you more empathetic, and reduces stress and cognitive decline, you would think it was a miracle drug. but i'm talking about reading. reading every day does all those things and more, which is why i started my book club, read with jenna. so start a reading streak, even if it's just a few minutes every day, on the way to work, your lunch break, before you go to bed. every little bit helps. the more you know. we had cpi and we have ppi this morning. that data is about 20 seconds away. the futures on the s&p 500 look like this, at .27%. let's say good morning to michael mckee. mike: good news on inflation after higher cpi lower-than-expected ppi. down .1% with the forecast for a 10th gain a