Transcripts For CNBC Power Lunch 20240712

We will have the latest on that well tell you what to buy heading into the final strep of the your palantir just began trading. Alex karp will join us in a couple minutes for a first on cnbc interview more power lunch starts right now. Hi, everyone first two big public debuts. Palantir just began trading moments ago, and asana opening up higher as well, plus starbucks higher as counsel upgrades the stocks, saying its actually a good thing for the company. The chip maker micron is lower after reporting earnings yesterday. You can see shares taking a hit, down about 6 . Brian, over to you the idea if we get a democratic sweep of the white house and congress, fiscal stimulus could be very generous for a very long time also noted the thought we might be getting closer to a new round of coronavirusrelated relief, so lets get to ylan mui with the latest on the negotiation. The ylan brian, the treasurysecretar is meeting right now with the speaker of the how in person in one last push to try to get a relief deal done before the election democrats are still preparing to bring their own proposal to the house floor. Whether or not they actually move forward will depend on the outcomes of the discussions happening now between mnuchin and Pelosi Mnuchin is preparing a counter proposal based on the roughly 1. 5 trillion framework put out a week ago by the bipartisan problemsolvers caucus after the meeting with nancy pelosi, hell meet with Mitch Mcconnell, and later today, mnuchin said by tomorrow it will be clear whether we have a deal or we dont. Well, i say were going to give it one more serious try to get this done. I think were hopeful we can get something done the i think theres a reasonable compromise here reporter the democrats do acknowledge theres big roadblocks, the level of jobless benefits and liability protections, but they also say this is the closest the two sides have come to a deal. Back over to you. Ylan, correct me if im wrong, but we had, i guess i could call it a debate last night. Im not sure thats the proper term for it. Either way, lets not forget we have a fight over the Supreme Court. How might that, in addition to whatever it was that happened last night could impact these negotiations reporter the political rancor between the two sides is abundantly clear i think the more sort of Immediate Impact is on the legislative calendar this means the house needs to act this week or potentially early next week in order to give the senate enough time to take this up before theyll well into the Supreme Court nomination battle i think youre seeing a very compressed time frame here thats why it will be up to the next few hours which way this is going to go. All right ylan, thank you very much. See you soon. For more on whats moving the markets higher on this final day of the month and quarter, well go to bob pisani hi, bob. A lot of market moving data points, and we have a lot of uncertainly around the election outcome. Stimulus uncertainty, as we just ahead, and good news balanced against a lot of layoffs, i think well hear more of this, and then hopes for a vaccine right now hopes for a vaccine stimulus is sort of winning out. You see health care up on vaccine and treatment hopes. Banks are up because we had a nice move up in Interest Rates material stocks have been outperformers all throughout the month. Tech started strong, fell apart in the middle of the month, and is ending quite strong, still down about 5 on the month if you look at megacaps today, main reason why the mart is moving, you have them moving all at once, theyre up about 2 or 3 on the week in addition to what happened. Travel and leisure stocks, theres the proxy for the reopening story. Thats a sign the market is more hopeful about reopening. Theyre all up 1 to 2 , as you can see. I also wanted to note, were talking about palantir, it was 10. That 7. 25 was a reference point, but almost 200 million shares in less than an hour. Almost 200 million shares have changed hands. Finally closing out a very, very rough september. I think october will be difficult as well. Materials and industrials up fractionally technology down 5 thats closing very strong at the end of the month banks and energy have just been underperformers consistently month, quarter and for the year. Guys, back to you. Well, luckily, bob, the 72 days i have september are mercyfully coming to an end. Tomorrow is october. It does seem endless. Counting crows have to change their song a long september. As bob noted, its been a tough month for tech in particular what should you be doing, looking, aheading into the Fourth Quarter all right. We are not, i promise, guys, going to bring politics into this howev however, rachel, does last night impact at all hose you frame your portfolios and investing thesis in the near immediate term brian, thanks for having me i think its nearly impossible not to incorporate into the wall of worry the election uncertainty and the possibilities that stem from that, least of which would be a contested or a longer than normal period until we find out who the winner of the president ial election is with that backdrop, we again have to be more grounded in the fundamentals that we can examine and look at, as opposed to the policies that may or matt notice about the implemented so well fall become and continue to look at regardless of what we see in this short term political uncertainty. Yeah, you know, i guess the one thing, mark we can take a hope out of is were not seeing this huge flight to safety were not seeing gold spike today, the investment. X is not soaring in other words, the markets are acting fairly rationally whats your take on the current environment as it affects money, markets and investing . Well, brian, i think as the other guest mentioned, i think probably warranted a somewhat cautious approach, if only because of the things standing in the way of the market remain in place that, of course, is an upcoming election, the uncertainly path around the coronavirus, and of course china continues to loom out there with unresolved issues having said that, with he remain quite bullish on the projects for the reasons of the rebound in Economic Growth and as well another stimulus package, and the fact thats going on in concert with a global impetus behind the scenes around the world. So think thats a setting thats favorable, not only for the economic fundamentals, but the prospects for profit growth, and as a result were leaning into a prorecovery stance with regard to our cyclical and overall asset allocation. I think one from those that stand to benefit from what is already maturing at this junction tur basic terms and industrials. The valuations have been long compelling, however, what they were lacked is a yield curve might actually work, and given that, as well as monies overseas, particularly in the investor equities that would benefit from the increase in consumption around resourcerelated activity also should help with the tailwinds. I notice we talk about it all the time its goods to give you a dime, thats it. The if you were to return to your clients just a one return. Why own anything other than equities unless youre literally terrified of asteroids, locust, whatever else might be coming. When you look strictly at the income, to allocate towards that, but i think bonds at any rate, as any level of income provide balance in a portfolio that said, also you would want to take some of that and look at some other Asset Classes that could provide ballast, including Precious Metals as one of them i think along those lines, is enforcing income allocators to look at the equity market and look for rate companies, strong Growth Prospects that pay a healthy dividend great conversation there, the power i would say of large numbers, guys, best to you both. Thank you for joining us here on power lunch. Brian, thank you very much lets turn to palantir that just made its debut a few moments ago. It was adirect listing, a bit of a different animal. Andrew ross sorkin joins us with the companys ceo alex karp. Thank you for that. We do have alex karp here on a very big day cofounder of the company 17 years ago, alex. Its nice to see you today weve had lots of conversations over the years this has been probably one of the most highly anticipated offeringings in a long time. Almost are year we would talk, i would invariably ask you are you going to go public are you going to list . Invariably you wouldnt. So lets start with why now . Well, first of all, thank you for having me. I would like to thank all those who stuck with us and built this company and our investors. Over the years weve been skeptical about listing, and for lots of reasons, we really needed to build or products can enough protection so we would be ready to launch them into the public space we build out pg, which is our government product, our foundry product, built a way to maintain them so we wouldnt have to scale the number of people we have reached a base where our company is significant we believe being in the public space will help with us our clients, help us grow. Quite frankly i believe the people at palantir who build this company deserved access to liquidity. So we decided this would be a great time for us. So far its an interests prospects and our clients are embracing it im very, very grateful. Ally elects, the single biggest question that epps investors ask is, 17 years in, while you may now have an operating profit, the Company Still is not profitable. Walk us through what the path to profitable looks like . We build these products well before people build them, and that takes money we had built this way of going to market, with foundry, which would allow us to literally supply an enterprise with a completely n ll lly new stack os and maintain them. We grew the company 49 off a 7. 43 base, and the divergence in expenses and growth is dramatic were going to be focused on invigorating or software operating. When youre growing 49 off a 7. 40 base, i think thats a strong indication of what the future could hold. Were superproud of that. I think youre seeing people are looking at the financials. Our company has often been viewed as complex, and needing explanation both moral and financial, but it turns out our financials are quite simple, and you look at the growth, and i think that gives investors comfort. It certainly makes me feel that we made the right decision to invest heavily well over a decade in Building Software the, and youre seeing the results. Do you think, though, profitability is at 2022 proposition . A 2023 proposition can i push you on that well, you can push me, but of course my lawyers will shoot me. I can tell you what i can tell you is we are very, very focused on Building Software a long time before other people building it, supplying it. I think that our year first half will be reflective of the future if im right, that will answer all of your interesting questions. Youll be interviewing me again, maybe not at davos, but virtually, and well see how well do im quite confident well do well. One of the order questions people ask is too how to comp your company is it a s. A. S. Company or a much more traditional Consulting Company . Can you speak to that . I think what investors are seeing, theyre asking the question at this point they used to ask, does it Company Build software for the government then we saw our margins around 80 . I think the real debate has moved significantly away from is this software or services . Another people think were smart, were not smart enough to get 80 margins off a services company. The question is how do you comp it i think investors will have to figure that out. Were not focused on that. Were focused on being the most Important Software company in the world, and people will figure out that value, and were comfortable with investors toying around with it. We are going to deliver the worlds best software with the most efficient way of delivering it investors will decide what that is worth to them, and i think youll find in a number of years there would be a consensus that palantir is a truly special software company, arguably the best in the world. As Everybody Knows you have contracts with various government agencies, obviously, and some of the bluest of the Bluechip Companies in america today, but its a concentrated list of about 125 companies, about 28 comes from the top three. How much of a risk does that pose on one side, but also the opportunity on the other, if were having a conversation like this in 12 or 24 months . How much do you want that list to increase in side . Or do you just want to keep that group effectively, and effectively raise the margin or cost for those clients whats interesting about our client list, people ask to which i respond, these arent just any institutions, and then roughly figure out if theyre using palantir i would say the list of our clirchts is the singlemost impressive list that i have ever seen well over 90 , what does that mean our existing clients, the most important clients in the world are really happy thats what it means so, of course, were going to expand those really happy clients. And then we have apollo allows us to with essential not growing our palantir force at all. Now that we have apollo, and we can do it without, were going to see, with the most interesting clients in the world and they clearly like us, some love us, we are going to expand or client base why . With apollo we can deliver the whole tack in six hours. I dont think any other company ive seen in the world can do that we can deal with efficiency i dont know that any other company will do. We can do this with a small number of people sitting in one office we have, maintaining, updating, providing them with new products they build. They dont have the frankenstein monster that takes two years to build and has to be maintained with human hours or by purchasing new product or compensating salespeople or hiring new i. T. People you dont even like talking to you can actually bike one stack. We are going to increase or revenue with current customers, get new customers, and continue or march. How easy or hard is it as i mentioned, comes from existing customers customers, obviously if a customer wants to leave, they can they look at there product we supply, they compare it to buying 20 products, paying ongun licensing fees that and is the last thing theyre not delivering a road map. Customers can leave you but they by in large dont and its not because of my charming personality. Awlex. How much of that does pose a risk to a time we have this is superimportant, einternally to our government clients. If youre supplying the special forces, those clients have to know they will not be left on the battlefield because Silicon Valley has decided they dont like the war fighter so, of course, that cost us revenue. We only work in certain countries. We have walked away from work because of human rights issues we disagree with very prominent organizations and we engage in dialogue, but its the reason why people may consider investing or not were not going to stand up here and say were here for everybody, and were not going to pretend were going to try to avoid jargon. We will actually tell you what we think, not curated by 50 media people it may have to be curated about i a couple lawyers, but one of the unique thing about palantir, we say things and we actually stick to them. Thats not something that everyone likes, but many of our customers do, and by the way, i think thats a reason why 95 of our revenue comes from current customers. When we tell them we are going to deliver, we are going to deliver. Alex, one of the other questions is, now that you are a public company, as you know, you have three tiers of stock, classes of shares, that is, and to some degree critics have said this is effectively a private company masquerading as a public company. Can you speak to the way the shares are structured and how governments and experts should think of that . Palantir has been in Silicon Valley, up until recently for 17 years. In Silicon Valley, defending the war fighter, providing troops with technology to allow them to come home is very controversial. I do not believe a company like ours that takes consequence quenchally decisions for government clients and nongovernment clients could not be run without a tier structure. I understand why should they have a structure like that, what can i do if i dont agree . The primary reason we fought for the f structure, we need to be able to go to our intel and defense clients and say we will not just blow with the wind. Those shares, for a company like ours, give us a unique ability to have longterm commit miles an hour to the most important clients in the world, both commercial and government. Thats why i believe theyre super important. I also again would encourage people, if thats not something youre comfortable with, there are many shares to buy you should buy palantir shares knowing the shares reflect our views. Alex, weve often have the conversations in davos where globalization has ruled the roost, but the world seems to be shifting how do you think long term that will affect the business of palantir . It will allow a superset who work with subsets. If the world splinters and every country has its own jurisdictions, it would be hard for norm at software companies, because theyre not built to do that it will be good for talon tirr palantir. Finally, if we have this conversation five years from today, what would be the metrics of success for palantir . There was obviously financial metrics, but palantir has recruited and maintained, i believe, the most interesting, most talented, most ethical people i have ever met in five years when we immediate, i think it would be that wasnt you just saying that, its actually true. The products well build will be unique, and they will tilt the course of history in the favor of things that are good and noble, and will not avoid the complexity thats necessary to do that. Alex karp, we appreciate you joining us on this milestone day for your company, and wish you lots of luck we do look forward to that conversation hopefully sooner than five years. Thank you, alex. Kelly, back to you. Thank you it meant a lot to me, bye. Andrew, i did the math at like 11 a share he owns like 33 million shares. Hes printing up maybe not 400 million, but maybe 390 million. Not bad i dont think hell be a seller, if you listen to his words well see. Its a fascinating company as you know, theres been a veil of secrecy around it for so long now its a public company, and we will be asking lots of questions and continue to. Very interesting day for an interesting company. It was great interview. Andrew ross sorkin, thank you very much. Maybe thats because they dont want anybody else to own it, because they dont want people to know their client list. Disney running at limited capacity in florida. Well have more on the pandemic lockout fallout. And then its wheels up. Faa administrator steve dixon flying himself the updated 747 max. Well hear about how that flight went a binagme stock nasdaq up 145. Were back after this. Welcome back, everybody. Im sue herera heres your cnbc news update a fourth of american working women are thinking about slowing down their careers or quitting altogether, because of the pandemic many women are citing burnout as the reason. The white house has reportedly overruled the cdc on extending a ban on the cruise industry to february instead theyre he going to start sail in september. Secretary of state mike pompeo will not be meeting with the pope while he is in rome the vatican has denied his request for an audience with the pope and accused him of trying to drag the Catholic Church into the election. And in france, a new report 13,000 of new dayses theres a bit of good news, new deaths fell to 63. You are up to date thats back to you markets are well off their highs. The dow was up about 550 points at the high, down to a bain of 364, again still decent. If youre wondering why were off those stronger highs, a couple comments in the last few moments may be contributing to it first the moderna chief saying to the Financial Times the vaccine wont be ready for the election and leader Mitch Mcconnell says republicans are farther apart on the Coronavirus Relief than perhaps treasury secretary mnuchin implied earlier this morning. Well monitor both stories for you. In the meantime disney says it would lay off 28,000 workers across several divisions, placing the blame for some of those job cuts on california for not allowing disneyland to open. Our Julia Boorstin has more. Julia . Reporter the layoffs will hit thes across hourly, salaries and executive roles as well as parttime workers. Theyre placing blame on california authorities who have prevermonted the even of disneyland saying the effect of the pandemic on its business has been, quote, exacerbated in california by the state ace unwillingness to lift restrictions that would allow disneyland to reopen we have made the very difficult decision to begin the process of reducing the workforce now, that 28,000, that number of people who are losing their jobs thats 12. 5 of the 223,000 Employee Base that disney reported a year ago. A quarter of the u. S. Parks employees. Walt disney world as 77,000 and 32,000 at disneyland before the layoffs. They did say it would not open the parks if it wasnt profitable before reopening, they said it was considering reopening at 20 to 30 capacity. Disney shares are down about 14 year to date guys, back over to you all right julia, thanks very much. Rahel, over to you. Thank you, kelly. Restaurants have been one of the hardesthit groups, forcing to adapt to reduce to reduced capacity, but cowen is out with a new note saying that covid is allowing the company to hit the reset button joining us is Andrew Charles thanks for being with us today. My pleasure. Wall street is very bullish on the company what type of reset are you seeing walk us through that what youll see is a nice Sales Recovery as we have the right drivers in place for the current backdrop what they did about two weeks ago is brought in the access, one of the best in the industry with a pretty robust data set, so youll see a greater adoption of loyalty s. And thats also going to be enhanced as well by curbside pickup. So you could pull up, order on the app, click the button, they run out to give you your offering and youre under way. It helps to transcend disruptiv routines. We had a graphic earlier in the show that said up until about september, they had returned to the office, l. A. 32 , but it seems like we were still a long way away from sort of return back to full capacity precovid. You know, iendr just wonder how much you think covid i know people go to starbucks for the fancy drinks, but i would have to imagine a large part of sales are for people stopping in before work, if youre no longer going into the office, do you need to still go to starbucks . Im in my home office right now. You know, i think what happens is obviously you will lose that commuter in the morning. Its important to note that only 15 of the u. S. Fleet is in downtown urban areas, so the vast majority are in the suburbs. You know, coffee and morning habits and my routine are morphing a bit weve heard that breakfast is getting later in the morning, so maybe you have a cup of coffee at home, later in the morning when you no ed that break, that coffee break, its really late morning thats picked up quite a bit. Its interesting that they kind of morph, just because coffee is so addictive, that habit isnt really gone. I thought one thing that was and stores and starbucks leaning into digital investments, but also their investments and collaborations with plantbased alternatives, including oatmeal. Ive been telling my friends oatmeal milk is the new thing. Its awesome. This is an area that starbucks has leaned heavily on. They were early on soy milk, then almond, next up is oat milk, something thats been piloting, theyll expand it more i would expect more innovation on oat milk. So the ability to stay on trend, you know, is one of the things i thought was interesting is oat milk makes a better plantbased alternative, because it froths a bit easier well leave it there thank you, andrew. Brian, over to you i found some oats once, with you i was unable to milk them. Im not sure where it comes from stocks are higher today on the last day of the month, and the quarter, by the way, thankfully tomorrow is october. Were off our best levels of the session. Mostly green today, duke energy the later, my chron the worst as well both of those are your power movers od f t eitmas, but still pretty goorhequy rks. Were back after this. When we started carvana, they told us that selling cars 100 online wouldnt work. But we went to work. Building an experience that lets you shop over 17,000 cars from home. Creating a coast to Coast Network to deliver your car as soon as tomorrow. Recruiting an army of customer advocates to make your experience incredible. And putting you in control of the whole thing with powerful technology. Thats why weve become the nations Fastest Growing retailer. Because our customers love it. See for yourself, at carvana. Com. Welcome back today we start with duke energy, which could be in the cross harr hairs of a takeover. What could be a roughly 60 billion deal, but new era may still pursue the merger. Heres a done deal british betting firm william hill accepting caesars takeover offer. Micron technology beading estimates, but revenue will be hit by the government as ban on sales to huawei. Shares are down 6 all right. Brian, thanks. Lets flip over to the bond market where rick is tracking the action kelly, as we finish up the Third Quarter theres interesting things going on. You can see we spiked up in yields a bit probably mr. Mnuchin, markets love a bit of stimulus we can debate whether its truly needed we know pain is out there. If you open the chart up for a quarter to date on 30s, what you find is we are basically at the highest levels since the ten if you look at the its still within the range of the last quarter. Tenning finished it up, and that was basically in the range today. It hasnt really gone that far finally if we look at the dollar index versus the s ps, this is really interest. The dollar is down about 3. 5 . The s ps are up close to, well, 5plus percent, so it seems odd man out, most of that is europo strength kelly, back to you rick, thank you. New York City Restaurants can finally offer Indoor Dining, but is it already too late has the damage been done that story is next well hear from the faa administrator after he finally took the max for a spin. What this means, when power lunch returns 20 years ago, i was an hourly associate cart pusher. The different positions ive had taught me how to be there for others. I started out as a cashier. I mean, the skys the limit with walmart. Its all up to you. After being closed for more than six months, Indoor Dining is once allowed against at new York City Restaurants. Lets bring in Contessa Brewer for more contessa reporter for now its a Beautiful Day for Outdoor Dining, but Indoor Dining, yes, foodies rejoin restaura restauranteurs, not so much. In here four tables total. At squires diener, the Contact Tracing plans are in place, but theyre not hiring more staff. Trying to keep costs down right now. A lot of restaurants are struggling to pay their rent, struggling to make ends meet. Reporter it was the 35,000 a month rent that did in the paris kaveh. It survived 9 is 1, destroyed and rebuilt, it could not survi survive cody seo coyne and those workers laid off, only a third have been rehired. The city is permitting the Outdoor Dining to stay up and running, taking up street space through the winter they changed the rules to to allow more propane heegts on the sidewalks. Statewide, 65 say they are going to go belly up if they dont get assistance from the government. 35,000 rent is a lot to stomach right now. You mentioned propane heaters. Theres a shortage of them around here. I dont know if they are propane or not its hard for restaurants to find the heating devices they need now in order to transition into the colder weather. Yeah. The Restaurant Association says they are hard to come by, they are expensive. We checked with the amazon price tracker. The prices are at 33 over last year, if you can get them. Just on an anecdotally basis, the most popular models with home depot sold out. Amazon, you might wait a month and a half to get here fall weather arrives before then, kelly. Yeah, i know. Contessa, thanks very much we appreciate it, Contessa Brewer rahel, over to you. Thanks, contessa. Taking boeing 747 max for a test flight speaking about that trip moments ago, thats coming um. Also a very exciting day for us at cnbc. It is the premier of news with Shepard Smith tonight at 7 00 p. M. Eastern dont miss it. In the meantime, well be right back thats what my dad does. Good job, michael ok, lindsey now tell the class what your mommy does. My mom has super powers. Its like she can see the future. What . its like she time travels in a rocket ship. Thats cool and then she comes back saying try this or try that. She helps everyone. She helps them feel less worried. Wow mommy, so what is it that you do . Im a financial advisor. She is aig proudly supports all the professionals taking care of our financial futures. Woi felt completely helpless. Hed online. 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 18778668555. Welcome back we are watching stocks, dow up but were up nearly 600 points. Republican leader Mitch Mcconnell saying we are still very, very far apart on another round of potential stimulus. That matters more to any group than the airline stocks. Airlines are Holding Onto Hope that a deal would get done for as much as 25 billion in relief american air, jetblue, delta all heading the lows of the day, which is a perfect segwusegue, y to the next segment. The faa, a pilot himself took 747 max for a test flight a short time ago and spoke to reporters about it lets bring in phil lebeau with the details. A lot at stake. There is. Hes taking questions from reporters. Hes doing it remotely hes in a room in seattle at boeing field earlier he inspected 737 mack he took on a twohour flight test he basically put this plane through the same exact parameters that it went through as part of its process for going through recertification. So the test pilots, whatever they flew, he flew that today. Here is a live picture of administrator dixon right now at the boeing field press Conference Room at boeing field where he is taking questions you can see that everything is socially distant he has a mask on if theres a headline that comes out of it, and there hasnt been one yet, it was that he said i like what i saw on the plane he did not come out and say its ready to go, were ready to sign off. Where does that leave the max when you look at shares of boeing keep in mind its been grounded 18 months. Its possible it could be ungrounded mid to early november, talking to people familiar with the process, thats what they are saying is a possibility. If that happens, then watch the airline stocks, specifically southwest, delta im sorry, southwest, american, united, they all have the max in their fleet. They have had to ground those planes youre looking at about 70 planes all together between the three of them. Not that thats going to do a lot to move the bottom line. Certainly they would like to have the packs back in service we could see that, guys, through early next year once the pilots go through their training. All right phil lebeau, its a fantastic story. Not sure faa guy, administrator flying their own plane. I dont think we have, brian, no you bet. Yeah, all right well, speaking of boeing shares, they are higher today but its cold comfort for boeing investors, folks that stock is down 55 the boeing 737 max was grounded march 13 of 2019 just days after its second fatal crash through it all jeffries maintaining a buy rating on the stock. Aerospace and defense, sheila, thank you for joining us listen, here is my issue with 737 max. Its nice it looks like its closer to getting back in the sky, but do we need it back in the sky . Have you been to Tulsa Airport filled with 737 maxes that are grounded theres demand issues across the Airline Industry as well i just wonder, even if they approve it, will it actually get put back in the sky because very few people are flying. What weve seen so far is doing quite well for instance, taking china as an example, their domestic capacity where a max would be used is town about 10 of covid levels, even less than that, whereas International Traffic is down 90 . So youre not seeing retirements or deferrals as many for a narrow body as we would for wide bodies because were not seeing trans continental flights going on that helps with your capacity issue. Address some of the larger u. S. Airlines that are taking these aircraft you know, of the ones we follow, united, american, alaska, ryanair have committed to about 175 of these aircraft in the next 12 months, essentially. There is some level of commitment from the airlines, although the situation seems very dire at the moment. I also think the max getting back into the air is a positive sentiment indicator, a supplier like boeing, spirit but lifts aerospace coverage overall in general. So we talk about inventories, and you note theres about 450, perhaps, planes available at inventory, which sounds like a big number but i was surprised by demand. Youve got i think 360 next year, 480 and 480. So if production is reduced, and your demand estimates are correct, we could actually work through that 450 backlog in just a couple of years. Well, a couple of years is a long time for boeing when were talking about then, so we dont have them working off that inventory until about the end of 2023 for context, yes, our deliveries in the 350 range for next year a portion of that, only a quarter of that from production. 75 from inventory but compare that to peak, thats 50 off peak levels. So its completely justifying the demand weve seen so far what its doing to boeing, its tying up a lot of working capital, especially on the inventory side some of that will be offset with advances, but the biggest relief for bogeing will be to get rid f the inventory related to the max, 5 million per year on estimates. Sheila at jeffries, a pleasure to come on, a big story, important story, and a very important stock thank you. Thank you that does it for us, everybody. Thats it for power lunch featuring brian andrea hel gre and rahel. Great to have you on. Im wilfred frost with sara eisen. A morning slump of futures turned into a sizable rally on the final day of the month and the quarter, though weve come well off of the highs as we head into the close not the end of the quarter, not sure why it says that. The action, treasury secretary Steven Mnuchin saying hes hopeful about reaching a new stimulus deal with House Speaker pelosi but Senate Majority leader Mitch Mcconnell s