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Well did Boeing.
Received unfair support from the United States it's a contentious battle that has left America wrangling with the European Union.
For seven years today the World Trade Organization inform the two nations of its latest decision in the Airbus Boeing dispute the US.
Is appealing a ruling that state subsidies overly helped Boeing.
-- -- Oppenheimer's aerospace and defense electronics senior analyst joins me now to comment on this on -- Story which has cost now a hundred million dollars -- -- it's great to have you what do.
What do you make at this point from your perspective of where we are with Boeing and Airbus to we have an end in sight here.
I don't think there isn't and this -- even and that WTO this morning said.
Look guys the real answer you have to be political the US -- the you have to sit down it comes to negotiated settlement.
And ended the day.
That aerospace industries enormously important to both of these countries and employs a lot of people very high paying jobs.
And also airplanes are huge exporters exports for both the US and Europe for the US Boeing is biggest exporter.
Event of the day that we negotiated settlement and I think both sides knows that they're giving me.
-- -- help to their industries.
The US helps Boeing probably giving a tax breaks and helping it do are indeed through the channel of the defense budget and -- Nassau.
And the EU is helping -- Airbus grew up pretty attractive loans that have -- wouldn't be able to get otherwise in the open market.
You know I'm sure from an investment perspective you want this to ensure that your clients want this and with -- what about the stock I mean you've got to perform on it.
Right now do you think that your take on the stock would change.
Based on this -- are there other factors happening at -- that are affecting your rating rating company I don't I don't I don't.
C the ruling by the WTO's a huge swing factor driving the market does either.
I think the consensus view which is correct is that.
This will work itself out there will be negotiated settlement and the end of the day notes titled C.
And major swing -- way or another.
I think if you look broadly at Boeing and the commercial aerospace industry right now we're at -- relatively early innings what looks to be a very big.
Upswing in the production rates over the next several years.
I think -- supply -- is very well -- positioned to benefit from that.
Rates on that commercial air airplanes -- increased about 40% over these over these coming years.
The issue for Boeing is that it's trying to wrap up in a number of new planes with the technologies are not fully mature -- the execution risk is rather elevated.
So I think that from my perspective.
Better to kind of step of the way to on the sidelines maybe invest in Boeing suppliers that have the execution risk and play -- -- that way.
OK you -- my producer a couple of names let's get to those because there are a couple of stocks that we can actually invest -- side.
Investment that fuel attached to -- and these are interesting PCP precision.
-- talk to me about the.
Yet so that they make a lot of that the forged and cast metal parts to go both into the structure of the plane into a lot of moving pieces like the engine.
These guys are -- selling it to all the platforms.
And -- -- benefit not just in the rate increases that Boeing.
But also at Airbus also company with extraordinary excuse historically.
Another -- I go ahead yeah.
That the the other -- with mentioning here is BE aerospace -- make a lot of the interior systems.
-- -- -- -- Oxygen systems are -- -- planes they're gonna benefit from the rating reasons well.
But they also gonna benefit from the fact that there's more international travel.
Most of the money and international travels made in the front of the plane in the first class and business -- -- a lot of older planes are getting those sections redone.
-- -- nicer seats oftentimes -- suites.
Book BE aerospace makes those and how as a way to profit even under scenario of relatively muted.
Day before I let you go I gotta ask you about the dreamliner possibly not talk about it really what they've changed ahead of the plate they've also -- and it's been cages around production of the dreamliner.
Over at Boeing.
What is your overall take on the dreamliner isn't going to be a help or dragged to the stock I.
I think it's you know far -- -- the biggest risk factor for -- we have the both the upside and the downside.
I think it is the company's clearly not over the challenges of the increasing the rate its plans to triple the production rate of that plane.
Over the next year and a half.
I think what we've seen over the last three years -- that really hasn't changed recently that's going to be huge challenge.
I think that that -- investors are our -- skeptical about bones ability to that increased production rates on schedule.
It -- can you know pull a rabbit out of -- actually deliver.
There could be a lot of -- in the stock.
All right -- air Ryanair Oppenheimer's aerospace and defense electronics senior analyst there would love to have you back on the show thank you papers -- -- Obama's.
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