and faa except that? and that's what fully vetting? means >> fully vetting in my definition does it mean that, i would defer to mr. lawrence on the technical details but i would say that from my understanding it's not unusual for design applicants to come in and ask for certain things to be delegated. >> mr. lawrence? >> so fully vetted would not just be a cursory review, that's not what's done in the system, delegation is really used primarily in routine and well understood areas but it also relies on the data that we are provided and as mentioned earlier today it's an area that we are focusing on if we don't have the right information it will result in the correct answers. >> so the report also said that they were not adequately updated to reflect changes to the flight control, we have sorted that out in the last hearing, any during the process they notified boeing that these documents are in effect insufficient and if not, why not? >> i'm trying to get gaps in the process we used to certified, so if no

faa. >> ok. so the concern here is that, first of all, you are talking about increased complexity and a not following the guidance that had been previously been stated, and not doing a new type certificate. i think there are a lot of instances these in the way you are describing this process, and the overarching concern that the process for safety reviews is becoming either inconsistent or more lax, and that control is being increasingly delegated to the manufacturers. i think that -- i obviously have run out of time, but i do think that there needs to be serious around that you around that you have set yourself that you have set yourself this is a whole system, and across the system we have inherent inconsistencies in places where it seems as though the faa has been more lax. i think that is something that we can address and it need to address. mr. dickson: i can assure you we actually, ilax, and believe that the decisions we are making are going to be more rigorous because of the reliance actua

the faa are is. the border we with the panel and forwarded to the management as a board recommendation. manager did not expect recommendations therefore overwhelming aboard on a panel. their manager was the same area over the technical specialists on the issue paper process. when considering the non concurrence is on the issue paper, the panel and the oversight board recommendations of a total of at least 13 faa aerial space engineers, one powered analysis for faa managers disagreed with the method of compliance. the other managers allowed to be used. for comparison all the the plane was approved with his similar design, we also work with airbus to reach agreements that alberta revised to design heating the guidance and in 1997 asi, and incorporated new designs on our a320 series airplanes. thank you for this opportunity. i hope i testimony will help improve the faa management safety culture and the aircraft certification circus. >> thank you. >> fishermen the faster over the native manner to the com

keep really do the faa? mr. kyrsten and hearing testimony elicited last year some of the vice president agreed to conduct a thorough analysis to determine if you production environment has caused safety risks. two knowledge was that analysis conducted? >> thank you the microphone please. >> not to my knowledge. >> not to run all. it did you do any follow-up on that whose role would have been to follow up on high? >> the general managers responsibility with appropriate because of the other organizations like engineering >> in that circumstance, was mr. campbell within the over the a or was you're concerned made into the olc a at boeing or was this outside of that? >> this was a discussion i had with him one-on-one. it was involving anybody else. >> if you argument in a testimony that this is the problem with pressure because of economic factors only problem with the way boeing's organized to build and certified airplanes? >> drew phrase that again congressman? >> is your argument or the point you're making with y

comply with the faa. concerning a new engine on the airplane is the certification date near boeing did not make a design change faa management decided not to require and modify the 50 -year-old rotor control design. then place amended the issue to the faa's internal process in a safety concern report. i was one of four members of the faa safety oversight board from the safety concern was submitted. two aerospace engineers to managers and the submittal included a document agreement with the applicant. the issue was signed by four managers and all seven aerospace engineers and project pilot disagreed that the methods of compliance. the board identified a subject matter expert panel to review the report and make recommendations to the board. the panel included for aerospace engineers into managers. all from various faa offices. the recommendation of the panel include a statement that the method of compliance and the issue paper does not comply with the associated faa relations. the sars. the board agreed tha

the faa has maximum support for doing this work. it's a mission that is front and center for the trump administration, and my boss, the secretary of transportation elaine chao. last year as you know president trump assigned space policy directed two which calls on the faa to streamline the rules for commercial launch and reentry while at the same time protecting national security and public safety. the idea in part is that was the conference of the private sector to invest in commercial space. those investments as you know are substantial and already growing at a fast pace. according to the national space council, the first half of 2019 we saw almost as much investment in space companies as we did in all of 2018. over the past decade we we've n a total of nearly $25 billion invested in about 500 space companies, most of which are american. what all those dollars are fueling our commercial ventures that could be right out from a science fiction book, space travel and tourism, that led servicing, horrible debris removal, and space man

managers warned another max could crash every two to three years. >> the faa rolled the dice on the safety of the traveling public and let the max continue to fly. >> my highest priority is to make sure that nothing like this happens again. >> reporter: former boeing manager ed pearson who first talked to nbc's cynthia mcfadden repeatedly warned boeing executives of safety lapses. >> i believe production problems at the factory may have contributed to these two tragic crashes. >> reporter: boeing says the suggestion of a link between his concerns and the recent max accidents is completely unfounded no plane in history has ever been grounded for as long as the 737 max. getting these planes flying again will not happen overnight. worldwide 387 maxes are grounded american has 24. >> we'll make sure this airplane is safe and air worthy before anyone flies on it. >> reporter: today the faa chief dixon said he will not recertify the max until january or later and the faa is revoking boeing's ability to self-certify work on the plane. >> boeing's plan is not the faa's plan. >> reporter: th

can he repair relations with the faa? investors heading for their best returns in a decade, so what is the outlook for 2020? what are the events that should be on your radar screen? we are going to talk about everything from washington to apple buying disney. live from london, i'm guy johnson. we are counting you down to the european close here on "bloomberg markets." ♪ guy: it's checked the markets on both sides of the atlantic. a reasonably quiet sessions from the volume point of view. the s&p trading a little higher on boeing on the news that ceo dennis muilenburg is out. the u.s. treasury market,

within the faa working on regulation of the 737 max that are like what? they don't tell us what to do or when to have it done by. there are a number of steps that need to be cleared, they're nowhere close to that. that was the beginning of the end, guys. then you had the decision about a week and a half ago where the faa basically came out and said it on "squawk box" to me, said we have no time frame for certifying the plane it is not happening in 2019. will happen sometime in 2020 week and a half later, boeing decided dennis muilenburg is fired, and david calhoun has to repair that relationship and get the max back in the air. >> phil, is the reason to expect more management changes subsequent to the news now >> not major management changes. i think you're going to see perhaps changes within people a level below. they already made the change in terms of boeing commercial airplanes, stan deal was brought in, kevin mccallister let go a couple months ago. stan deal will be in lock step with david calhoun in terms of approach to doing the job, the way stan d

david: faa chief telling lawmaker to boeing 737 max will be grounded until the faa is convinced that aircraft is safe, and pilots know how to fly it. hahn hahhillary vaughn has been following this story. reporter: boeing whistleblower,% pearson said he was disturbed by some testimony coming out. saying that they knew that crash was caused by a production issue that happened at renton, washington facility appearson, d these warned that the factory was pushed beyond its limit, as boeing pressured workers to pump out more planes. >> during this time frame, the factory was in chaos, boeing and faa knew that original censor on lion airplane, had failed, that is a production issue. s plane was brand new. reporter: faa administrator admitted an internal faa report warning that the max could have a fatal crash every 2 to 3 years unless they made major changes, but the officials did not ground the plane until the second max went down. >> the result is not satisfactory. >> you can't bring yourself to say we made a mistake. >> did the faa at some point make a mistake in the process. >> yes. rep

credibility here the skrcrutiny is on the faa. in the end, the faa now has this additional need to show independence that will matter for the future aircraft programs here look, in the end, it is in bowin boeings interest to get this right. if they take extra time, one thing, they will get this plane to what it was supposed to be. the increment al plane from the previous generation. so that pilots can continue to transition between planes easily >> is it that's the huge question it is a different air lean line terms of engines being moved >> the point of mcas is to make the new plane feel like the old plane. we'll see from the training standpoint if that continues to be the case. if not, it puts this plane in a tough place against the new airbus the new airbus 320 are the increment al change from the old plane. easy to move pilots between the two planes it is in boeings interest. every month that goes by costs a lot of money if it takes a little time for the faa to be comfortable, then it is worth getting it right for the long ter

boeing has its own interest and the faa may not share those. the faa has had a black i and all of this, questions on whether they were too close to boeing or delegated to much work, and the faa is working on getting control of its own reputation. vonnie: bloomberg opinion columnist brooke sutherland. thank you. guy: let's take on the bloomberg first word news. here is courtney donohoe. courtney: jay powell is all but certain to keep interest rates unchanged. some of his colleagues may be looking ahead to when they should raise rates again. the fed will release statements and update quarterly forecasts at 2:00 new york times. afterwards, jay powell holds a news conference. in the u.k., it is election eve. boris johnson and jeremy corbyn begin a whistle stop tour of key districts. theugov poll shows conservatively has narrowed substantially but puts boris johnson on track to win a majority of seats. energy increasing at the volcano off the coast of new zealand and that has kept crews from recovering the bodies that remain there. six people are kn

at least that's what tim cook says and the faa gives boeing a reality check. chge's all ahead on "the exan." woman: my reputation was trashed online. i felt completely helpless. my entire career and business were in jeopardy. i called reputation defender. vo: take control of your online reputation. get your free reputation report card at reputationdefender.com. find out your online reputation today and let the experts help you repair it. woman: they were able to restore my good name. vo: visit reputationdefender.com or call 1-877-866-8555. ( ♪ ) sure, the content's easy. but then you have to connect, download, edit, reformat, output, save, send, upload... still uploading... and maybe eventually post. this isn't working. introducing samsung business video solutions. with the galaxy note10, you can shoot, edit and post thumb-stopping videos, all from one device. samsung business solutions. welcome back keeping it real. the best places to work and maybe the worst. and lululemon wants to seldom nick c sell dominic chu pants seema mody, dominic chu, and kate roge

what the faa is doing to combat the problem of shrinking seats. plus why a popular wine is becoming more challenging to produce. and veterans battling ptsd are getting help from an unlikely source. >> >> quijano: as millions of travelers pack into planes for the holiday weekend, many may be questioning their seat sizes. u.s. airlines expect 31.6 million people to fly over the thanksgiving holiday. that's up nearly four percent from last a year. but the concern now is that seats are not just unaccording y small but dangerously small. here is kris van cleave. >> evacuate, evacuate. >> in a simulated cabin that can be filled with smoke and plunged into darkness the faa will try to determine at what point the size of seats and the space between rows becomes a hazard to evacuate ago plane quickly. but they will do it without any of the obstacles passengers may encounter during a real emergency, like bags, smoke, comfort animals or the dark. >> we are going to try to minimize variables to the ones that are important for this particular test. that gives

it can be the faa, it can be employees, it can be investors. boeing has to reopen itself to better communication with those groups. kevin: let me pick up on something carol just said. when it comes to the faa, here in washington, they have been increasingly skeptical of boeing's leadership. as we hit restart on the next decade, how is boeing going to change that tune? how will they forge new relationships, new dynamics with the faa? showed it has to start from the top. going to a ceo that is work together with regulators around the world to help get the airplane reevaluated and back into service. calhoun has ad reputation of being able to do that. he was at ge after 9/11 when he had to work with customers a lot to help manage a change in delivery schedules after the 9/11 attacks. it seems like he has particular experience in working with customers, working with employees through difficult times. it will start from the top and that is why they chose david calhoun. kevin: that is a great point. our thanks to george ferguson of bloomberg intellige

are still there in the faa. steve dixon is the new faa administrator. they are still there. and the board of directors for boeing that presided over these trails of criminal negligence and the failure to attend to aerodynamic stability, they are still there. and the ceo, dennis muilenburg, paid millions and mimillions of dollars a year. he is still there. so untntil they aree replaced, e cannot see light at the end of the tunnel. and the light at the end of the tunnel is not trying to use a hoped up, glitch written , atware in the cockpit software fix for hardware defect? you have to recall the planes and boeing has got to develop engineering adjustments, engineering changes so that plane is not prone to stall, which is what led to the crashes and indonesia and ethiopia and the killing of 346 innocent people. that is where it has got to be.. and senator wicker has got to get his senate oversight committee active, along with the activity by congressman peter defazio. amy: this latest news that executives at boein

muenburg met with the faa dmrp steve dickson who says the max will not be recertified this year. the faa says dickson and muilenburg ded a realistic time line for getting the max back in the air. hien it returns, airlines like delta do notnk the addition of dozens of max planes will have a major impact on air fares in the.s. delta which does not fly the max hopes the plane's return helps boeing get back to the business of developing new planes and technology. boeing focus ds on development and technology in the new frontiers of innovation that right now unfortunately they are paralyzed to be able to get after. >> ed bastion says delta would be interesting in buying boeing planes cplementing the ones it currently frys. doesn't have a need for the 737 max but perhaps a new boeine at some point in the future cld be a possibility for delta. phil lebeau, repo," atlanta. ss >> so would you get on a 737 max? that question part of a new

don't know what that news is, don't know if they heard anything else from the faa, lots of speculation about the leadership there we are out of time "squawk on the street" will pick this up now. gentlemen, thank you, all. >> happy holidays. join us tomorrow we're going to hand it to "squawk on the street" now and wait for the boeing news. >> we are going to watch that. good monday morning, welcome to "squawk on the street. cramer has the morning off this hour jim stewart with the "new york times," cnbc contributor, author of "deep state" is with us for the hour great to have you, jim. >> good to be here. >> futures are up on a holiday shortened week closed wednesday for christmas a shortened session tomorrow and we're going to watch this news, whatever it is, as it is halted, currently for news pending comes on the heels of front page story in the "times" today, which says a couple of different things, one, he was dressed down by the faa chief earlier in the year told not to ask for any favors and says the halt of production of the max in their words is one of most consequential decisi

and we heard from the head of the committee, a democrat from oregon, basically saying the faa rolled the dice on safety. and when he was asked to address why this report, the faa's own internal report suggesting more crashes could occur over the following few decades in the weight of the first crash, why they didn't ground the plane then, peter defazio‘s response was the result is not satisfactory. that didn't please lawmakers who to go further, and eventually, under pressure, mr dixon did admit that m ista kes pressure, mr dixon did admit that mistakes were made by the faa. now to the uk, because voters had to the polls today, so it will be a long night for traders, especially in the currency markets. with the pound and dollar now standing at 1.3 two. you can hear more on our website with oui’ can hear more on our website with our editors‘ analysis and there will be no easy business report tomorrow morning —— $1.32. please stay tuned to bbc world news. surprising absolutely nobody, the us central bank held interest rates steady overnight. the fed also gave its forecast for

saw that almost immediately from the faa. they said, oh, no, no, no, no, you are not going to be the ones telling us what's going on it continued they would not bring back that guidance that's when you saw steve dixon meeting with mulenberg that's when he said to him, knock it off we're not ready to approve this. they've got about 10 or 11 steps to go through. there are public comment periods in there he's not short sitici-circuitins pros res. >> probably the most important stock in america because of its heavy price waiting inside the dow. thank you very much. >> you bet. >> karen, start with this, denis mullenberg, lost his chairmanship does he deserve to lose his job as ceo >> deserve, i'm not sure. >> could he? >> you could. >> are you implying there is something that went wrong the communication? >> i'm talking about the disconnect, the initial report, and the faa, and the lack of communication. i'm wondering about the c.eo has made such tactical errors zbl k >> i don't know. this is surprising to me, the suspension of p

the faa administrator spoke about the findings. >> did the faa at some point in this process make a mistake? >> yes. >> it's very frustrating when it's obvious that mistakes were made. >> the faa ultimately grounded the max fleet in march. the plane will not fly again until approved by regulators. >>> the family of a toddler who died when she fell out of an open cruise ship window filed a civil lawsuit against royal caribbean. 18-month-old chloe wiegand fell 11 stories in july while the ship was docked in puerto rico. her grandfather lifted her to what he thought was a closed window when she slipped from his grasp. he's been charged with negligent homicide. the girl's parents accuse royal caribbean of negligence for allowing the window to be open. >> there is no reason for this ship to have walls of glass surrounding the 11th floor with portions that open. if that condition did not exist, chloe would still be here. >> royal caribbean said it has no comment on the lawsuit. >>> coming up on the "morning news" now, harvey weinstein reaches a multimillion dollar deal in his sexual misconduct sc

theead of the faa said you don't make demands. we call the shots as to when this plane is safe anddy r to return to the air. that was a very public meeting. maybe the meeelng i wasn't public but it was a dressing down. ceos rarely he that happen. the second thing happened four days later when dennis muilenburg said we are going to shut down the 737 max line at least for a couple of months, temporarily is the language that they used. th'sunprecedented. for a company of this size with this history tost for the f time ever voluntarily shut down a production line. that was enough for the board. they finally said, time for a change. >>oes that speed up the return .f the 737 max? >> reporter: i think what it does do is improves boeing's relat tnship withhe faa at a minimum. already dave calhoun,f one his first acts as the incoming ceo was to call steve dickson this morning, he said we welcome rigorous oversight. we want to be regulated. that's the beginning of changing a problem at boeing for some een time and in particular during this

i know your experience has given your appreciation for the faa just bought this as a counter cyclical buffer i think that's really important. particularly important during downturns but also our understanding of how the rage here is seeing how razor thin the fha in shorts find is right now and i know it's a lot better than it was it is still not where you want it. that puts taxpayers at risk and i appreciate all the work that you have done to build fha's fund to its highest level in 12 years out i want to congratulate you for that because i think there is more to be done and i'm glad that we are not putting it at risk by artificially cutting rates before the fund is stable it. also begs a larger question of how we can strengthen financial reform by transferring risks from them a taxpayer to the financial sector. the federal government has a terrible record of pricing risk and you only need to look as far as the fragile flood insurance program to see that andy f. aj does that a two but by the same token goverment can also be just capable of determining which individuals are good risk a

guy: going forward, what is the relationship at the faa look like? clearly, one of the reasons we are in the situation is that maybe the pendulum swung too far, and that boeing had to much the-- had too much say in certification program. what does it look like going forward? justin: i think you are right, it is swinging back, and the faa has been very aggressively making statements in the last few weeks that this administrator steve dixon is saying they will not be rushed. there's no timeline on when the max returns. safety is dictating everything now, as it should be, and they are feeling no pressure at all from boeing in this process. think what we will see is that they are going to be much more muscular about this aircraft and anything boeing designs in the future. there's a wide-body aircraft underdevelopment right now, and i think you will see that the faa and other regulators will take a very firm stance and look at those planes very carefully. happens to some of the other programs boeing is actively pursuing right now? what about the midsized

this is another terrible day not only for boeing but for the faa, particularly for the faa, the head of the agency right now as we speak facing some tough questions from lawmakers on capitol hill after a new document has surfaced this morning. this document was just revealed at this hearing. it details the faa's own internal analysis. the boeing 736 max following the lion air crash last fall. this found the plane is significantly more likely to crash than other aircraft. despite those findings. they did not ground them until after the second crash which was months later. if you remember, those two crashes claimed 346 lives. so this document just released by the chairman of this hearing this morning and i can tell you, this is what many people will be talking about after this hearing wraps up. he essentially said that the analysis concluded that if that mcas spm system we talked so much about, on the plane left uncorrected, that that would result in as many as 15 future fatal crashes over the life of the fleet. but here's the big caveat. that was assuming 99 out of 100 flight crews su

the faa told congress last week we are working on our timeline. we are not working on boeing's. that's for sure. what difference does it make if boeing diverts workers to other plans, to other aircraft? george:george: i don't know that they could divert their workers to enough other programs to make a difference. not even to make a difference, to keep them all employed. i think they would have to lay them off. they want to preserve cash. i think that is probably the most prudent thing for the company to do, to preserve their financial position. faa doesn'tst an seem to be giving them a concrete timeline for when they can get the airplane back in the air and reauthorized. vonnie: thank you for the update. that is george ferguson of bloomberg intelligence. oning up, our conversation why investors should remain cautious in 2020. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. "his is "bloomberg markets. pgim oversees $1.3 trillion. ceo david hunt told bloomberg's erik schatzker investors should remain cautious into next year. david: you could kind of hear t

the point is the faa felt he was and the faa made it clear that the new head of the faa saying repeatedly the plane will only fly when we determine it is safe to fly. and basically it became more of a liability to keep him there than not. remember there was always a case of when he was go, not if. and the board finally decided and somewhat strangely to be frank, two days before christmas, they decided it was time to go. >> they decided it was time, which you bring up to the faa speaks to a larger point of what all of these -- all of this unmasked, the tragedies is glaring revelation that for the most part boeing was policing itself. how much of that has changed at this point? >> it is changing. the whole process is changing. but that is the nub of this issue. the boeing loss of trust in boeing but also the loss of trust in the regulator. so now have a regulator that is trying to be as regulatory as it could to prove it could still do it and still has the ability to force and make the rules necessary. but there are both organizations are grappling with the fact they've got to get the max i

he worries airlines will use the faa findings to further reduce space and add more seats to increase their bottom lines. already airline seat width is down as much as 4 inches over the last 30 years to as little as 16 inches wide at a time when americans are growing bigger. the space between rows has shrunk from about 35 inches to 31 and in some cases as little as 28. consumers should not think for a minute that these tests are being done in a way that would accurately represent what could happen in an emergency evacuation. >> reporter: the faa test shotgun be done by the end of the year with a report to follow next summer. from there it goes to an advisory committee that will make suggestions to the faa about possible regulations. so don't expect any new rules for at least a couple of years. kris van cleave, cbs news, boston. >>> the tech boom and one of america's wealthiest cities has a dark side. ahead, the dramatic rise in homelessness, including peo around here, nobody ever does it. i didn't do it. so when i heard they added ultra oxi to the cleaning power of tide, it was just w

instead he got trapped in this game of stringing along not only the faa, but airlines. you know, phil and i get these emails it feels like one a week now from american airlines, united airlines and southwest airlines saying we're pushing back the max return to service again by another 30 days, by another 30 days. now we are right up against the summer travel season and these planes don't have these planes for the summer travel season there's going to be even more pain. >> and the frustration with the airline executives, they are furious. i mean, this -- look -- >> southwest -- >> they came up and they said we are not pushing back to april. at least 50,000 flights have been wiped out when you go from march of last year all the way through april of this year and that's just southwest. if you were the ceo and we said, by the way, take out 50,000 flights next year now go ahead and try to meet your expectations you would say, wait a second, why are they going away? >> a lot of questions and nobody has talked to the passengers yet. phil, david, thank you very much. >>> boeing

>> did the faa, at some point in this process, make a mistake? >> yes. reporter: boeing says they took the concerns seriously and did not sacrifice quality and safety to speed up production of their planes, the faa administrator says they are considering putting a civil penalty on boeing and also taking further action. lauren: hillary unbelievable no effect on boeing stock today, thank you very much. >> the world's most valuable public company had a great debut on the stock market. oil giant saudi aramco surged 10 % today, grady has more, so grady, market value $1.8 trillion, as of today. is that right? >> that's right and the company raised $25.6 billion with today 's ipo alone and right when that opening bell rank as you saw just there, saudi aramco became the most valuable publicly-traded company in the history of publicly-traded companies as you said around 1.9 trillion compared to apple which used to be the largest publicly traded company, that's at 1.2 trillion as of today and also towering over microsoft that $1.16 trillion, one difference between

the other thing everybody needs o keep in mind is the faa said they will inspect every aircraft which is very unusual before that plane is allowed to return to service they will be getting the airplane back in the air and i hope they look at some of the design to make sure the failure modes are such they will provide the pilots better information than they are getting now. >> thanks to both of you we appreciate your time. >>> to the bond market now rick is tracking the action at the cme. hi, rick >> hi. there's been a lot of data points that i find important today we had productivity. the mid must remembers were down it's officially the first quarter and negative territory since the end of december. however, when you go to the national federation of independent business and their optimum index it was much better that's the biggest month over month increase since may of 2018 we all remember the end of 2016 how businesses shot up in confidence when the administration was put in office this is zoo economic index a business sentiment index even though the headline number was down 19.9 on

of the faa, a reset for the 737 max. that doesn't mean scrapping all the work that's been done, but it does mean taking a fresh look at everything and let's see, how do we get this thing recertified again. finally, repairing airline confidence in boeing, and part of that is calhoun along with stan deal, the head of commercial airplanes, along with greg smith, the cfo, tim keating. guess what they spent today doing. calling key stakeholders, not just one or two, but dozens making it very clear to them that there is no leadership at boeing and there is a new day beginning in terms of trying to get the max certified, recertified, and getting boeing back on track. guys, back to you. >> steph, i mean, it was just a couple of weeks ago that the conversation here on this desk was the worst is -- seems to be behind for boeing and maybe the company is turning a corner and then this happens. >> this is a reset, and i think a much-needed reset, because i think muilenburg lost a lot of credibility, a lot not just with investors, but

losses in boeing now after that interview with faa make sure you join us tomorrow right now time for "squawk on the street." ♪ >>> good wednesday morning welcome to "squawk on the street." i'm carl quintanilla with jim cramer and david faber at the new york stock exchange. decision at 2:00 eastern, followed by powell's presser lots to watch, though. saudi aramco, boeing, home depot, waiting for clarity on china tariffs. europe is mixed. uk election tomorrow cpi just ahead of estimates. core rate up 2.3 year on year. road map begins with an historic ipo. shares of saudi aramco surged 10% in its debut, valued at 1.9 trillion the largest listed company in the world. >> plus, the fed and a trade waiting game stocks poised for a muted open as investors seek further tea leaves on trade and the fate of -- >> monopolies aren't bad if they are not abused tim cook coming to the defense of business but said apple isn't one. saudi aramco strong public debut. shares jumpedon the open, the maximum 10% on the stock exchange in riyadh limit up. the state owned oil giant is the world's most valuabl

grounds the plane with the faa, it will be a bad scene. if c canada old firm, indndepent with transport canad t the u.s. will have to think twice about ungrounding the plane because it is hard to find north america without flying over canadian airspace. i wrote e to prime minister trudeau urging him to retain an independent evaluation, full -- pull certification, pull simulator training for the pilots are the two demands that the families of the victims are the faa, before the media in the united states. we are reliant on canada if the faa and donald trump are going toto crumble. i mean, trump is not looking good on this issue. he is very big business oriented. he has rendered corrupt government of corporatism, militarism, and nepotism. you're not going to rely on him. so that is why i appealed to canada. and people who want to get involved, we have a consumer boycott of the 737 max should it ever be ungrounded. ersrights.org who is run by mr. hudson who lost his daughter in the lockerbie explosion in scotland. it is a wonderful consumer g

depends on what happens with the faa. so if you were game planning this, and this is strictly based on conversations with people at boeing, people at the faa, people with the airlines, here's what we're expecting you are likely to see certification early to mid february that's if everything goes as planned and, again, that is not written in stone max deliveries might resume by mid to late february max production then resumes mid to late march. they're not just going to fire it up right away and it will be a gradual increase take a look at shares of boeing. on pace, at least earlier today, pre-market they were on pace to open lower than they were a year ago. so go negative for all of 2019 whether or not it stays there remains to be seen also want to show you shares of southwest. southwest saying earlier today it has pulled the max from its schedule through april 13th. that was expected. we'll likely hear from united in the next couple of days as it joins american and southwest in terms of pulling the max from its schedule

the faa put out a sharp rebuke of boeing and of the leadership newe, saying that the leadership must focus on being transparent in its relationship with the faa as safety regulators, and this has been one of the biggest criticisms of dennis muilenburg as well as the boeing leadership, and its relationship the last few years with the faa, that perhaps it had too much say, too much of a bully pulpit, if you will, in getting safety reviews through the regulator, and there is resentment built up at the faa. it's calhoun, -- is calhoun the right man to do that job? he is affable, well-connected. one guest earlier said may be calhoun, 62 years old, nearing the retirement age, is not necessarily the person to lead long-term. >> david calhoun might be the right person. the trouble is, he is more of a short-term solution. you know, his background, his skill set, general electric, hedge funds, private equity. it is really not the kind of long-term reemphasis engineering and reform that i think boeing really needs. i guess the answer to your last question is really getting those relationships b

what does the lady to do to regain the trust of the faa at this point? it seems like they have made all the changes to the max's software. i think they just have to be open to working with the faa to help them understand the changes that were done, to be an open discourse about what the training ought to be for the max as it reenters fleet. those are the two big items. we think most of the work is done on the software to get the max back into service. shery: george ferguson, thank you. credit suisse exonerating their leader, saying he had no knowledge of the spying scandal. this is bloomberg. ♪ ♪ jon: this is bloomberg markets. i'm jon erlichman in toronto. shery: i'm shery ahn in new york. it is time for the bloombergquint take. new year's day, a sweeping privacy law look at california's new rights and powers to control their personal information. it is similar to privacy laws that exist in the european union . the law limits how companies collect and make money from users data online. consumers will have the right to ask a company to have their dat

relationship and to that end he called the head of the faa this morning and said we welcome rigorous oversight also a reset for the 737 max, that doesn't mean redoing all the work, but it does mean sitting down with the engineers, all the key people involved at boeing and saying where are we what what realistically can we expect, what do we need to improve, what do we need to change and final repair airline confidence in boeing and to that end when i talked with dave calhoun just a month ago about the 737 max, he alluded to the fact that getting the max back into service is job number one for this company >> it's not over when it's certified. there's no victory in that, right? we have to get the airplanes that our customers put on the ground, we have to get them back in the air we have to assist them every step of the way, and we have to get the airplanes that we built and are ready for delivery to customers back in the air as well that's a long program, at least a year and it's a tough, important task >> as you take a look at shares of boeing over the last couple of weeks, last mont

. >> the biggest issue for dennis muilenburg is the fact that boeing's relationship with the faa has broken down completely >> reporter: muilenburg had tried to pressure the faa into fast-tracking approval of the 737 max fixes after two fatal crashes killed 346 people but now approval may not come until february or later, forcing boeing to temporarily shut down the max production line it was only in october that muilenburg met with the families of those who died. >> we are sorry, deeply and truly sorry. >> reporter: but anger only intensified over revelations boeing had not been fully transparent about the plane's problems the world's airlines are demanding compensation michael stumo, whose daughter, samya rose, died in the ethiopian crash, is demanding a change in boeing's executive culture. >> i can't help my daughter anymore, but this is what we can do is try to make aviation safer for everyone else. >> reporter: boeing says it needs to repair damaged relationships with the airlines and the faa and today, the new boeing ceo reached out to the faa chief, promising transparency and

ball and turns over a new batch of messages to the faa. it may put the company into a deeper hole over the developments of the 737 max. this is "balance of power" on bloomberg television and radio. ♪ ♪ david: this is "balance of power" on bloomberg television and radio. i'm david westin. after bowling's ceo stepped down earlier this week, we now learn there is a second group of documents the company failed to turn over to authorities, that one congressional staffer calls disturbing. joining us now is brendan case. thank you so much for joining us. what do we know, if anything, about the second edge of documents? one congressional staffer calls disturbing. joining us now is brendan case. brendan: we know a congressional aide has called them disturbing. we also know a previous batch of messages in october had a big negative impact on boeing's stock price. what we don't know is the actual contents of this latest touch of messages. we are all trying to learn more. important make an point, this is not the first time this happened. in octobe

secondly, the faa is saying they'll individually certify the planes. although they'll require individual inspection of all the planes before they'll allow them to fly. you have 378 already delivered. 400 in storage. that's nearly 800 planes that boeing is going to have to inspect once the grounding is over. so they're preparing themes for that moment when they have to go back to those planes and get them ready to go back in the air. >> does this indicate it's challenging to convince the faa and maybe the american consumer that they are making these planes safe? >> i think it's going to be very difficult. i think boeing is going to have a real job on its hand. the name max may have to disappear. they may have to do a variety of different marketing tricks to make people want to fly this plane. i have no doubt when the faa say it's okay to fly, it will be safe to fly, but will the traveling public want to get on board? >> in terms of the economic impact and the effect on boeing, this is profound. this is a decision that will have a huge -- in certain ways

faa administrations defending his agency regulators allow the plane to keep flying. after his own investigation concluded it was at high risk without major design changes. >> mistake made the result is not satisfactory. you can't just bring yourself to say that we have made a mistake and you weren't able there even there at the time. >> for the global gown grounding of 737 max planes. democrats house transportation committee are at using the faa of downplaying the threat. allowing boeing to ignore obvious safety flaws. but some republicans are urging the committee not to overreact with the regulation. >> we do have to be cautious moving forward. >> the faa has an ongoing investigation in new production issues of for the 737 max prompted by a whistleblower to testify by the committee describing of dangerous corporate culture at boeing. >> every single factory but is getting low marks. and each one was turning in the wrong direction. >> the faa said this also we have a little evaluating the procedure used to certify the 737 max on capitol hill hillary bond, fox 2 news.

even on vacation, president trump and house speaker nancy pelosi's bar on twitter and the faa offers a plan to deal with the growing number of drones in the sky and this is "special report." ♪ good evening, welcome to washington, i mike an manual ann for bret baier. this week, after supporting through the war crimes trial they acquitted him of murdering the capture in the islamic state fighter but can fit into him of with the detainees crops courts. today "the new york times" released a video of gallagher's fellow navy seals going in evil, toxic, and someone who's willing to kill anybody that was moving. at the pentagon, looking at the rare break in the military code of silence. >> was perfectly okay with killing anybody. >> this is how it navy seals and eddie gallagher decide to the veteran of aids mass the point is accused the isis fighter >> he got crazier and crazier. he is toxic. >> he gave them the nickname "blade" they have not authenticated the video. the video appears to be in the report in question and using the deceased body of the isis fighter he was accused of killing

last week in a meeting with the faa, the faa made it clear they were working on their own time line, not on boeing's time line. the faa made it very clear they would not clear the plane as safe to fly by end of the year. wins boeing realized that there really was no other way for them to go here, during the grounding they have been continuing to build the planes. in their statement today, they say they have about 400 airplanes in storage. they can't deliver the planes to airlines if the faa hasn't certified the plane as safe. they find themselves in a position their backs were against the wall. they'll pause production on the plane until the faa says the plane is safe to fly, and the regulator said they don't expect that. >> it cost them? >> cost airlines hundreds of millions of dollars. it is clear the issue will not conclude this year. this will go well into 2020. >> over 350 died in the two plane crashes. thank you very much. >>> coming up, much more on the political maneuvering going on right now over impeachment. the senate democratic leader chuck schumer wants witnesses to test