Heres a look at whats on deck today. I believe production problems at the rim factory may have contributed to these 2 tragic crashes of the. Following 2 down the crashes involving the boeing 737. 00 max a whistleblower has raised the alarm in congress and our National Regulatory attorney miles advisers on hand to break down the developments and well bring you up to speed on the fate of the planes flight but following a spate of controversy peloton stock has taken a little bit of a dip like a 1000000000. 00 worth were going to take a deep dive into the stocks performance and whether the firm can stand up to scrutiny with the pack show today so lets go right in. And we begin with the u. S. China trade talks in the fact that thursday president trouble is meeting with traded visors to figure out next steps why because at this point it looks very unlikely that a phase one deal will be done before december 15th and so the big question becomes will the Trump Administration allow 160000000000. 00 in new tariffs on. China to kick in or will they delay so far the negotiations between the 2 sides have failed to produce deals on agricultural purchases by china and tariff rollbacks by the United States so the question now is whether delay will kick in because the markets well lets face it they are closely watching what is happening here and they are bracing for a big drop if those additional tariffs kick in some analysts believe that the Trump Administration will delay these tariffs by at least 90 days but others claim the traffic going to ration may actually let these tariffs take effect in the currently preparing their spin on that so kristie i think thats highly unlikely that the trouble going to ration would allow that to happen because again look trump is a pretty good job of puppet tearing the markets every time they start to drop he seems to Say Something to bring about if you will be able to do that if he allows these tariffs to kick in absolutely not especially since in the latest survey theyre saying that 3 fourths of the u. S. Companies they have absolutely no backup plan if these additional tests kick in they have no other alternatives for in terms of managing supply chain manufacturing are moving their production elsewhere outside of china so given that they have absolutely no backup plan they are all lobbying trump and trying with all the actions and everything he is under tremendous pressure to get some sort of resolution done whether its piecing to them or getting something signed or rolling these tears back like china wanted and again that the end of the day if we hit the 15th and those tariffs kick in its going to have an enormous impact on the chinese economy but its also have an impact here in the United States on manufacturers here as well so i think what the markets kind of hanging on every word now late word today is that the trial ministration is looking at going ahead moving forward with a delay of some kind right thats what it is looking forward and that has given the markets a little bit of hope a little bit of a breather but the markets dont forget it has are going pricing in far as aleutian on the 15th right so the markets f. Anything this is just a little backstop to drop all right well keep an eye and see what happens as. Apples annualized 28 to come percent decline in the 3rd quarter or so apple saying to its lowest sales level in china for 5 years since the launch of the i. Fallen in love and families total shipments in china are down 7. 4 percent as aggressive competition from local chinese manufacturers took advantage of the trade war and growing patriotic sentiments this is expected to worsen in the looming december 15th deadline that could increase cost by almost 70. 00 per unit apple will have a difficult time pushing through tariff related price increases to consumers without impacting demand while i now has a record of 42 percent market share in china with vivo and shalmi coming in 2nd 3rd and 4th place respectively and apple now fell to 5. 2 percent market share down from 7 percent last year in addition the domestic brands launch long awaited 5 g. Service plans in october giving users access to super fast data speeds and connectivity apple on the other hand still does not make an i phone that can connect to 5 g. Networks. Significant news surrounding the boeing 737 max whistleblower reports show that the government in the us this after the 1st 737 max crash last fall foul of the jets were a significant risk for future crashes but the f. A. A. Did not ground those planes until after a 2nd one fell from the sky 5 months later the 2 crashes were a lie in the air jet which crashed into the java sea in october of 2018 and then an Ethiopians Airline crash in march between those 2 crashes 346 people died so heres the new scandal the f. A. A. Document released in december of 2018 only 2 months after the 1st crash predicted that there would be more than 15 additional deadly crashes of the macs over its lifetime one of the whistleblowers at pearson is a former boeing employee who worked on the 737. 00 x. Program and said that he urged managers to shut down the production lines because of mistakes and cut corners pearson also says those recommendations were ignored. Informally warned boeing leadership in writing on multiple occasions specifically once before the line your crush and again before the Ethiopian Airlines crash potential airplane room. Due to the unstable operating environment within the factory these warnings were ignored. Meanwhile china says it has important concerns about design changes to the boeing 7 to 37 max aviation regulator weighed in for the 1st time on thursday after months of public silence from china china was the 1st country to ground the 737 max in march after the 2nd plane crash before it could fly in china again the 737 mast would need to be recertified and pilots given comprehensive and effective training so lets go deeper on the story with international regular. Words. So lets start off 1st with china 1st Public Comment on the buying something that month in months so how likely is that that the 737. 00 maxwell ever fly again in china. Well i think its going to be highly unlikely i mean as you pointed out they were the 1st country to ground the 737 max primarily because they never got a straight answer from either the f. A. A. Or from boeing and when we move fast forward to today these important concerns are important concerns about design and theyve only asked for 3 things and i believe you said a couple of that money is pilot re certification is one upgrade in product design. Is 2 and also they want the 2 crashes to be thoroughly investigated and unless those conditions are met we wont even go past the 1st step to see these planes fly again in china now whats really interesting is that boeing has a plan in china boeing produces 730. 00 sevens in china right now thats halted and right now air bus which is boeings largest competitor in china has a joint venture with comac which is the commercial Aircraft Corporation of china to produce basically a clone of the arabs 329. 00 so i think its not only the sort of regulatory design challenges i think theres some financial items that the chinese are also considering regarding it and they may want to choose to partner with arab us over boeing which would pretty well prevent us from seeing the 737. 00 max is flowing again over chinese airspace and so miles this issue of the whistleblower its pretty significant here so lets go back to that for a minute it appears that the Biggest Issue here is the relationship between boeing and the f. A. A. Which is not does not only seem to be effectively regulating boeing instead they appear to be allowing. Knowing the kind of call the shots here the fact that he had been warned about this their own findings said 15 of these planes will go down and they didnt pull them. Absolutely and ive spoken on this program again about the antiquated system of certifying aircraft in the United States this is a system that goes back to the 950. 00 s. And primarily the aircraft manufacturer certified themselves and until we see that stop and the 2 we see the revolving door of f. A. A. Officials going to billing and other airlines youre not going to get a really effective and robust compliance system and whats really interesting is you know when he was before Congress Testifying he was he was giving a specific example of the rudder design which is 50 years old and he went to the f. A. A. And the f. A. A. Said sure you know well take a look at it we agree with you and when it came to certify. The rudder design the f. A. A. Did nothing so again we see a situation where the f. A. A. Really has to be like their european counterparts. And what they do in europe is they have the agencies certify the aircraft and so the manufacturers doing it so you can see that you cant really sell for regulate yourself in this type of situation now real quick Southwest Airlines now that they have reached a confidential compensation agreement with boeing for a portion of the projected financial damages due to the grounding of the 730. 00 psi max southwest says that they will share a portion of that settlement with employees american and united are still negotiates out amendment so how do these settlements affect boeing shareholders. And whats really interesting is just recently the board of directors of boeing announced a Dividend Increase and they did that in order to project confidence and also to stem the tide of shareholder selling. And it worked for a little while but the. Im is is its all cash flow boeing is heaven ging cash and the situation is you have billions. Funded liabilities from these lawsuits so i think temporarily its going to be ok but the lawsuits the threat of lawsuits and really the fact you cant even put a dollar amount on it is really going to severely impact the shareholders of boeing interNational Regulatory attorney miles edwards thanks so much for your time. Thank you. Lets all now for a quick break but hang in there because when we come back it seems like its goes from bad to worse for peloton stoffel going to take a deep dive into what is happening with the stock right now and whether the firm can stand up to scrutiny in the near future and as we go to break here are the numbers at the close. To. What politicians do. To put themselves on the line to get accepted or rejected. So when you want to be president or injury. Or somehow want to be rich. But you want to be prosperous like the 43 in the morning and people that im interested in always in the waters of our. First sit. On their most onerous johnson. And i just got out of prison for. 41 of those. Im 73 years old now i got arrested for took some months to. Fill you know im like just everything was taken out of. My work in the hospital i think mr. Meant to say no maam it looks a little bit like me. About. Homicide want to come. Were tough. So youve got. To go. Try to try to get. To something. It is the peloton add that crashed the companys stock wednesday Peloton Interactive stock was down another 2. 25 after falling 2. 00 on tuesday since thanksgiving roughly 1000000000. 00 has been cut off the peloton stock market value and it all appears to have started off with an ad of a husband who gives his wife a peloton for christmas if you have not seen this ad number one where have you been and number 2 take a look. Now. At how the time very 1st time 1st arrived in their midst and excited thats us. Cant imagine creating such a firestorm right but the response to that ad has been rage and anger twitter comments ranging from quote that face you make when you have to videotape yourself exercising to prove to your husband that youre making every effort to check notes look thin for him peloton if my husband gave me a peloton unsolicited for christmas how about this one hed be getting divorce papers for new years and how about this one so sweet my husband was inspired by the peloton ad to get me a pair of pants in a childs media and a handwritten note that says dont f. Ing touch me to you can fit into these and quote it goes on and on and on from there the ad has been called sexist and even classist and all this backlash it seems to have hit peloton pretty hard shortly after the ad aired stock drop causing a loss of 942000000. 00 in market value wiped out in a single day amid backlash over that holiday ad but this story is just too big for this one screen so lets move over here back to the other studio where we are joined by well christiane shes always over here she practically lives on the side and then of course were also joined by the host of news use hoons scotty no he used to have you here and ceremonious the correspondent all right so we wanted to bring ellen here to talk about this because the claim is this right that this ad is so sexist because how dare this man by his wife a peloton clearly shes some kind of slave to him who must look good all the time wouldnt he added been received even worse had she been heavier when the ad started a year later now shes lost the weight is there any women in this situation when youve lost a 1000000000. 00 i dont know how it could be received any worse than that and obviously you didnt have to go through some layers of a review to have some sort of critique and nobody ever caught it heres the thing is this is not a cheap buy pelletised a very expensive bike and then i did it to a man to give it to him and unsolicited i find it to be almost false could be very because youre talking about an investment of 2000 to 3. 00. 1000. 00 investment so this was obviously something she had expressed there hoping that shed express that she wanted the husband gave her i think this is much ado about nothing except that ado about nothing has cost a 1000000000 obviously a backlash because when you talk to people on the street nobody sees nobody can figure out why there is such an anger at this commercial so were going to ask you about this because there are a lot of comments about. The beginning and it was the look on her face when she looks up at the phone and she is the furrowed brow when people say oh she looks so terrified i mean she terrify i really dont think shes that terrified im still terrified every time i get on the cell cycle bike with when we go to john and i were here it is i dont go either way to go discretion here i was here but thats why you go you go because you want to feel healthy forget about how youre trying to be skinny or whatever what about trying to be healthy what about just trying to do it and again we probably wouldnt see this outrage if it were the other way around and if the wife or the one giving the politan to the husband thats probably you know you want to say. Youre both writers you were the psychos here what do you write nothing was. A cycle once and i cant get into she woke up like this but thats the thing the peloton is its also good theyre not just selling a bike ride thats what makes it different from just a bike you can write yourself outside theyre selling an Actual Experience that its almost like and uplifting therapy session it really on wheels and a shout out to our favorite souls like no structure Christopher Scruggs who is here in d. C. We i mean its about the experience that he really lifts you up but that theres hope and the encouragement that he voices throughout that class which i think is empowering and on a different level than if youre on a bike what you can but its something to is this going to be just like a fad though is this like an experience that you can find elsewhere with a different trying new fad to get out later on but i think its what you stick to and what you like and there are several people who love soul cycle and its an expensive experience for sure but if youre able to do it then so be it and its cheaper than therapy but this fact is going around 0 while so its not like this is going to come. Going obviously theres a lot of fitness fads going on and this is one its about i think peloton actually developed off a soul cycle or one or the other because people did want to do it no it isnt to me dating to start a new exercise and regimen and so i think that look of fear was a realistic portrayal of what was going on in any woman or man face when they start Something Like that for those who would say want to just get a bike and ride a bike right so i get full disclosure so im a peloton right ive had a peloton like now for over a year to you know. Absolute love that would love to cowrite with you guys. But look heres the heres the thing with it is about number one the experience and the motivation so how do you get people into it you get them in to the community and theyre doing it monthly but the other part of it is its about accomplishing something so when i see people saying about this look of fear on her face when i see it it is because thats how i felt when i 1st did it was the fear of failing to follow through with starting a new fitness goal and i think you guys probably understand that youre right no matter what it is whether its a peloton or what ever else isnt a big issue when you started to fitness youre trying to do something you want to you want to see through and not have it be a close to 2000 other clothes rack thats keeping your dirty laundry in about a week and i think you mentioned the investment that youre into you dont want to fail because financially dont want to feel yourself going to look at this experience and now you can be more competition as well and when i said i think i might im working out there on as well so theres competition for that but much like you said its about that experience and the intimidation that comes at the beginning and that hopefully can follow through and keep going and its an expensive experience youre investing in europe but you know that and i think in health all right weve got to leave it there what is the locus going though he was thank you all very much kristie lets go over here because if we head back to the wall i want to talk about the numbers on this the bottom line is as we talked about this right there is a major issue here with what is happening with the peloton and its stock now peloton and the i. P. O. You may or may not know this in september its all a climb of 35 percent a share price at that time so kristie doesnt it stand to reason youre seeing the stock price go way way up in september because of the wouldnt that then mean that at some point theres going to be a correction maybe. Its not a holiday here maybe its not all sexes classist commercials maybe its just the correction maybe it is a little bit of a corr