Fox Business
Expand
Browse All Video
Watch Live

You're watching...

Behind BB&T's Boeing Downgrade

Details

  • Description

    Carter Leake of BB&T Capital Markets explains why he dropped Boeing's rating from buy to hold.

  • Duration 2:38
  • Date

Clips

Also in this playlist...

Markets Now

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

She -- that -- that hasn't been a good week for Boeing's dreamliner that's the understatement of the day just this afternoon a Boeing executives saying that the 780 -- recent problems are.

Quote not raising any safety concerns on next guess though.

Has his racing out these dropped it from -- to hold saying that these problems could indicate even more trouble ahead joining us now is constantly.

Senior equity research analyst with BB and C capital markets -- thank you very much for being with -- -- -- -- A laundry list of problems with the -- dreamliner.

Off I'd of course -- they use that downgraded the stock as a result I mean how serious are these setbacks for Boeing.

Will.

Thanks for having me that the issues aren't.

-- there's no safety of flight issues -- concur with -- that that the that the aircraft he is itself safe.

The issue is more of a PR issue and and and certainly a string of bad luck com -- I got -- the following just a little bit ago.

And we found that the fuel issue the second issue that no rose yesterday turned out to be an error you know of those of the ground crew who did not have failed to put back fueling -- and certainly.

A lot of bad luck as the media's attention was focused on them.

Etc.

are downgraded he speaks more to.

We just think that these issues in the aggregate.

Present enough risk for us that that the bull case was predicated on the fact that all of the 787 positions were behind this.

And and and I'm just not comfortable making that call right now long term Boeing will work this out the 787 will likely going to be one of the most successful aircraft ever.

But you know I think it will happen more of these issues and -- because media scrutiny is here it's going to be tough we're going.

While these types of issues typical for an US croft all these kind of teething problems just because Boeing is under the microscope.

They are -- these issues are normal.

The only problem is that you know Boeing has had issues that you know if taken to their full completion could've been catastrophic.

You know a fire fuel -- uncontained engine failures.

So you know they had used -- a lot of the goodwill if you will and so.

Now with the media scrutiny upon us and it's going to be more and more difficult and in the fact that you know -- -- You know this is a unique airplane in the -- -- -- Billiton and the fact that it is you know one of the biggest changes is that it is the most electric aircraft ever built -- -- the fact that we're having electrical issues.

And health coalitions are very difficult to troubleshoot -- hunt down.

It will make this harder I think then that previous aircraft.

Economists say that we have to take a break after the break we'll come back and discuss more about Boeing and its problems with the dreamliner as -- thanks very much we'll be right back.

Load More