Market Trends & Geopolitical Impact - Oil prices initially surged to their highest level since January but pulled back following signals from Iran about de-escalating tensions and potential nuclear talks [1][18][20][21] - Defense stocks continued to climb amid the Israel-Iran conflict, though analysts suggest investor behavior is more of a "safe haven" move than a direct correlation to company bottom lines [1][70][71][72] - The Paris Air Show is expected to be muted due to the ongoing conflict and a recent Air India crash, with Boeing CEO skipping the event [59][61] Economic Indicators & Fed Policy - The market is shifting focus to Fed policy, earnings, and factors impacting the earnings picture, with the FOMC meeting being a key event [5][8] - There's discussion around the potential for a dovish Fed pivot, driven by inflation being cooler than in 2019 when the Fed last cut rates [35][36] - Real-time housing inflation is falling, suggesting the official measure has room to decline, potentially signaling a green light for the Fed to turn dovish [38][39] Company Specific & Sector Analysis - Meta is introducing ads to WhatsApp, focusing on user data for targeting but aiming to avoid content analysis, with the bigger opportunity being the race to artificial general intelligence [44][45][47] - Reddit is launching AI-driven advertising tools, leveraging human engagement data to inform generative AI and improve ad targeting [50][51] - Victoria's Secret is facing pressure from activist investors to overhaul the board and focus on the core bra business, while also navigating consumer spending habits and recent leadership changes [53][56][57] - China is stimulating its consumer market to offset export dependency, with Apple being a notable loser as domestic brands like Huawei gain market share [76][78][79][80] Global Investment Strategies - There's a potential shift in global equity leadership away from the US, with capital repatriation expected to benefit Europe, Asia, and emerging markets [87] - The US dollar showed no reaction to market surprises, and there was no rally in treasuries, indicating a lack of appetite for US assets [84][85] - TPW Advisory is overweight Chinese equity, favoring US-listed ETFs, and constructive on a global growth cycle extending through 2027-2028 [82][83] AI & Technology - AI is a major theme at the Can Lions International Festival of Creativity, with discussions on how it's changing the advertising and media industries [95] - Time Inc is embracing AI, launching Time AI with Scale AI to create personalized content and audio versions of their journalism [96][97][98][101][102] - Hyperscalers are investing heavily in the race to artificial general intelligence, even without knowing the ultimate prize [48] Energy Sector - Energy stocks may present an opportunity, as they have diverged from oil price trends and offer potential dividends [105][106] - AI's energy demands are creating a large energy problem, with hyperscalers investing in creative solutions like "behind the meter" energy sources [16][17] - Gas prices are still about 33 cents a gallon below last year, and diesel prices hit their lowest level since 2021 prior to Middle East escalations [23][32][33]

Welcome back to Squawkbox. Let's get to Phil Leau. He's at the Paris Air Show as you know, and he's now joined by Transportation Secretary Sean Duffy.Hey, Phil. Thank you, Joe. Transportation Secretary, thank you for joining us here today.Good to be with you. Lots to talk about. I want to start first off with the Air India crash.Yeah. You are not you're NTSB FA are not leading the investigation, but you're assisting. Yeah.And if there was any whiff of, hey, there's a systemic problem with Boeing or GE, you ...

Overall, the battery capacity for this aircraft is something like one and a half Model X Teslas, just to kind of put it in a in a ground vehicle reference. The idea is to sell this by the seat. So, when you open the app, you'll be able to select the ride.A car will come and get you to wherever you are, take you to the nearest takeoff and landing spot, and then other people will be kind of brought just in time at the same time to fill the other seats within the aircraft. One of the things we um I probably ha ...

Well, again, I think it, you know, without getting into too much any speculation at this point, what I can say, you know, you you will look to performance, right. You you would expect uh airplane is prepared for takeoff, it lifts off. Typically, what happens is that once you've got a positive rate of climb, the pilot flying will call for uh positive rate flaps up.You would then climb out and at some point you start to clean up the airplane. That means that you retract the the flaps in the slats, right. We s ...

I don't know what the future of aviation is. I mean, this isn't like, you know, open up your magic eightball and and say, "Do do should I take a sweater tomorrow? It's cold outside." Or or an umbrella because it's going to rain. This is stand here in front of all of you and tell you an educated audience the future of aviation.Oh, and by the way, we're going to put it on YouTube for all eternity. Predicting the future is really hard. But there's one thing I can I can take some comfort in is that I know anyth ...

>> Now to the very latest on that Air India Boeing Dreamliner plane crash that killed all but one of the 242 passengers on board. Responders combing through the rubble for at least one other black box. We think we have one so far.CNBC Tv18 reporter Maria is live on the scene. Maria. Good morning.>> Well, the aviation accident in India, in Ahmedabad is not only India, one of India's worst aviation tragedies, but also the worst. One of the worst aviation tragedies for the world. The major development now is t ...

Core Insights - Horizon Aircraft has entered a strategic partnership with MT-Propeller to supply propellers for its hybrid eVTOL aircraft, marking a significant step in the company's transition from prototype to full-scale production [1][2][3] - The collaboration aims to enhance the performance of Horizon's Cavorite X7 aircraft by leveraging MT-Propeller's advanced composite technology, focusing on speed, efficiency, and noise reduction [2][3] - This partnership is crucial for Horizon Aircraft as it accelerates the journey towards certification and production readiness, positioning the company to transform regional air mobility [3] Company Overview - Horizon Aircraft is developing one of the world's first hybrid eVTOL aircraft, designed to operate like a conventional aircraft while offering superior speed, range, and operational utility [5] - The company aims to complete testing and certification of the Cavorite X7 eVTOL and scale production to meet anticipated demand from regional operators, emergency services, and military customers [5]

Geopolitical Risks & Market Impact - Conflict erupts in the Middle East as Israel retaliates against Iran, launching over 100 drones [1][28] - Oil prices surge due to fears of a wider war, with Brent crude rising significantly [2][3] - Global equity markets react negatively, with Euro Stoxx 50 futures and S&P futures down by 15% [3] - Market anticipates potential for further escalation and broader damage beyond Israel and Iran [14] - A worst-case scenario could see oil prices rise by $30 per barrel due to escalations [12] - Market considers the potential for terrorist attacks and attacks by proxies in other parts of the world [14] - Market participants are closely monitoring the Strait of Hormuz, as a blockade could cause a squeeze in oil prices [11] - Israel intercepts drones in Jordanian and Syrian airspace, highlighting control of airspace [87] Aviation Industry - Air India Boeing 787 Dreamliner crashes shortly after takeoff, killing all but one of the 242 people on board [2][21] - The crash marks the deadliest aviation accident in over a decade [3] - Investigators recover one of the black boxes from the crash site [20][22] - Boeing CEO cancels appearance at the Paris Air Show amid the crisis [24] - Airlines prepare to reroute flights due to airspace closures in the Middle East [148] Currency & Bond Market - The Bloomberg Dollar Spot Index reacts positively [3] - The U S dollar is reacting like a safe haven rising alongside the equity market [19] - The Israeli Shekel is trading 2% weaker versus the U S dollar [34] - Gold approaches a record high as another safe haven bid [34] - German 10-year yield down around five basis points, so outperforming the bid into fixed income [60]

Safety Concerns & Accident Investigation - Aviation industry and US government officials maintain that flying is still safer than driving, despite recent accidents, but the system is under stress [1] - The Air India crash of a Boeing 787 Dreamliner has reignited flight safety concerns [1] - Accident investigations can take months or over a year, often pointing to a series of factors involving airline crew, pilots, maintenance personnel, weather, design, and manufacturing [7] - It is too early to determine the cause of the 787 crash, and early indications can be undermined by new information [3] - Early investigation focuses include aircraft configuration (flaps, landing gear), and potential engine thrust loss [4] Boeing Safety Record & Issues - Boeing has been in the news for safety issues, including a pair of 737 Max crashes and the Alaska Airlines door plug blowout [5] - Boeing states they are working to improve how they monitor fleet safety, engineering, and aircraft manufacturing [6] - The 787 Dreamliner is a newer model (debuted in 2011) with an excellent safety record prior to the Air India crash [6] - There have been production issues with the 787 early in its development and more recently [6]

Investment Thesis - The analyst initiated starter positions in Joby Aviation (Joby) and Archer, both considered highly speculative pre-revenue companies in the low-altitude economy [1][2] - The investment is based on the potential of the low-altitude economy, specifically transportation via vertical takeoff and landing (VTOL) aircraft, over the next 10-15 years [2][3] - The analyst acknowledges the high risk involved, as there is no guarantee either company will successfully commercialize a vehicle [5] Company Specifics - Joby Aviation is 9% owned by Toyota and has other high-profile investors, aiming to create an "Uber of the skies" taxi network [7] - Archer has a prototype called Midnight and is focused on selling its aircraft, with an initial use case of transporting accident victims to hospitals [7] Regulatory Environment - Recent actions have removed red tape for testing VTOL technologies, potentially accelerating development and commercialization [6] Market Opportunity - Morgan Stanley has released a report on the low-altitude economy, highlighting the potential for delivery drones and transportation below one mile above the earth's surface [3] Risk Considerations - These investments are highly speculative and not suitable for investors with low risk tolerance [5][8] - The companies need to obtain certifications, which is a key catalyst in the next 6-12 months, to establish a revenue model [7]