Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane. Along
Speaker 1: with Jonathan Ferrell and Lisa Brownwitz. Daily we bring you
Speaker 1: insight from the best and economics, finance, investment, and international relations.
Speaker 1: Find Bloomberg Surveillance on Apple Podcast, sun Cloud, Bloomberg dot Com,
Speaker 1: and of course on the Bloomberg terminal. What we will
Speaker 1: do is speak of this war. We do this with
Speaker 1: a gentleman early in his career at that time when
Speaker 1: Russia again blew up in the early nineties, Mark Kimmitt
Speaker 1: was with the eighth Infantry and then answer other tours
Speaker 1: of duty with the Army and General Kimmitt Division Artillery
Speaker 1: Commander the first Armored Division in Germany. He has hands
Speaker 1: on experiences Ben Hodges did the other day for US
Speaker 1: as well. General Kimmitt, thank you for joining us UH
Speaker 1: this morning. Mark Kimmitt, What will the tank warfare look
Speaker 1: like in Carcave? What will the warfare look like in Kiev? Well,
Speaker 1: first of all time, it won't be tank warfare. All
Speaker 1: those advantages that the Russians have with those mechanized vehicles,
Speaker 1: UH in too great extent, is completely neutralized when you
Speaker 1: go inside the city. These are small streets, even the
Speaker 1: large ones can't fit a lot of tanks through them,
Speaker 1: And it goes down to a completely different kind of
Speaker 1: warfare that we're seeing right now on the roads. If
Speaker 1: we're seeing a different warfare, do you suggest we'll see
Speaker 1: it in any moment's notice and with that we will
Speaker 1: see Ukraine do better than the last twenty four hours. Well,
Speaker 1: we'll see clearly the Ukrainians have done very very well
Speaker 1: up to this point, but it's the first ending in
Speaker 1: a nine ending ball game. When you go into the cities,
Speaker 1: everything that they've been doing up to this point changes. Uh.
Speaker 1: They certainly have the advantage as the defender in the
Speaker 1: city ease and a lot of the advantages that the
Speaker 1: Russians had are just completely neutralized. But it is still tough,
Speaker 1: brutal combat in a way that we haven't seen yet.
Speaker 1: Urban combat is for any military historian certainly understood. It's
Speaker 1: the toughest, grittiest, bloodiest kind of warfare there is. We've
Speaker 1: had a many times, General that it has to favor
Speaker 1: the attack. The ratio in combat in urban wol fat.
Speaker 1: Can you run me through the kind of ratio you're
Speaker 1: thinking about, General, Because we hear things like six to one.
Speaker 1: What an attack it needs to overwhelm the defender in
Speaker 1: Uban wol fat, What kind of ratio is needed? Oh,
Speaker 1: it could be far more than that. You took a
Speaker 1: look at what happened in Mosle. A hundred thousand troops
Speaker 1: were necessary to go against ISIS and Mosle about six
Speaker 1: thousand inside there. Uh. And unfortunately there's a huge toll
Speaker 1: on the civilian population inside those cities as well. But
Speaker 1: for an attack her to win in a city fight
Speaker 1: is our marines did in Felluja. It takes extraordinary numbers
Speaker 1: and it also takes extraordinary valor. And that last point
Speaker 1: is the important point, General, And can we sit on
Speaker 1: that for a moment. How unique is this when we
Speaker 1: see these videos of the individuals coming from the Russian
Speaker 1: army into Ukraine, which seemingly very little appetite to attack,
Speaker 1: and the Ukrainian people just pushing those tanks back. General,
Speaker 1: what have you made of that? You've seen those videos
Speaker 1: through social media reporting on news networks around the world. Yeah,
Speaker 1: I have seen the ones that are shown in social
Speaker 1: media where the Russians aren't coming across the Well, what
Speaker 1: we're not seeing is those early insertions done by the
Speaker 1: Russian paratroopers into some of those air fields. Uh. Those
Speaker 1: are professional paratroopers, they are not conscripts, and they're much
Speaker 1: better trained. But when you're talking about the conscripts that
Speaker 1: we're seeing on the road that are basically giving up
Speaker 1: or dying, I think that the Ukrainians have acquitted themselves
Speaker 1: spectacularly up to this point. General, do you think that
Speaker 1: we are underestimating the morale issue, both the boosted morale
Speaker 1: on the Ukrainian side and the opposite on the Russian side. No,
Speaker 1: I think we got it about right. I think that
Speaker 1: everybody is surprised at how poorly the Russians have done
Speaker 1: up to this point. Much can be explained number one
Speaker 1: by the fact that these are conscripts that never knew
Speaker 1: they were going to be thrown into the war. Uh.
Speaker 1: And number two, the intense, intense leadership shown by President Zelensky,
Speaker 1: which is toughened uh, the backbone of every one of
Speaker 1: those civilians and the military and the militias that they're
Speaker 1: fighting them. General, can you see an endgame at this point,
Speaker 1: given the fact that it seems like Vladimir Putin is
Speaker 1: not giving in in any way, and the Western allies
Speaker 1: are simply trying to remain with the sanctions and clamping
Speaker 1: down harder on that front. Yeah. So that's a good
Speaker 1: question because, as I said earlier, this is the first
Speaker 1: in a nine ending ball game, and the Russians will
Speaker 1: just continue to hammer and hammer and hammer away at
Speaker 1: you in places such as cities. They don't worry about casualties.
Speaker 1: They weren't, don't worry about collateral damage, they don't worry
Speaker 1: about infrastructure. So I would expect that his endgame will
Speaker 1: be to go into those cities and destroy them. It's
Speaker 1: that simple. Destroy the buildings, destroy the people, destroy the civilians.
Speaker 1: They don't care. They will continue to flow troops and
Speaker 1: equipment in there and fire artillery missiles and bomb them
Speaker 1: until they are destroyed. That's how they see the end game.
Speaker 1: In many ways, people would say that's the only endgame
Speaker 1: that you can accomplish inside this type of warfare. And general,
Speaker 1: I want you to speak to the public that does
Speaker 1: not warn the uniform that you have warned there's a
Speaker 1: massive primal screen. Just do something. And I want to
Speaker 1: talk about the American initiative or even initiatives plural here
Speaker 1: to fly into western Ukraine and deposit a massive force
Speaker 1: that the Ukrainians can use or to come in through
Speaker 1: the Black Sea, alistra Vitas and the others. What's the
Speaker 1: initiative America can do now to assist militarily, President Zelinski? Well,
Speaker 1: I think the main thing is to do what we've
Speaker 1: been doing, not only as Americans but as our NATO
Speaker 1: colleagues and our NATO allies, which is flow as much
Speaker 1: precision weapons into UH Ukraine as possible, whether it's sting
Speaker 1: or missiles to bring down their helicopters, javelins, to knock
Speaker 1: out there UH tanks in their artillery, drones to UH
Speaker 1: conductoral warfare against selected targets. But we want to contain
Speaker 1: this inside Ukraine. We can't be put in Americans into Ukraine,
Speaker 1: otherwise this will spill over into NATO and it would
Speaker 1: be a much much bigger war. What would you do
Speaker 1: as a mandate as a general in combat which you've done,
Speaker 1: What would you do with a convoy forty miles long?
Speaker 1: Is that the job of modern technology and drones? Well,
Speaker 1: the problem with that, of course time is that we
Speaker 1: don't have air superiority. You remember in the First Gulf War,
Speaker 1: so we need to fly zone the common of the moment, Generals,
Speaker 1: we need to know fly zone. Well, the no fly
Speaker 1: zone won't help the Ukrainian Air Force get into the air.
Speaker 1: It's personally non existent at this point. Um and again,
Speaker 1: the no fly zone would completely change the dimension of
Speaker 1: this conflict from a war inside of Ukraine to a
Speaker 1: war that can spill over in Europe. What we need
Speaker 1: to do more than anything else is see if we
Speaker 1: can get those Ukrainian helicopters in the air, because, as
Speaker 1: we say in the military, forty miles of vehicles is
Speaker 1: a target rich environment. We've seen them destroyed as we
Speaker 1: did in the first Gulf War where were destroyed about
Speaker 1: ten miles and vehicles, and it would be pretty easy.
Speaker 1: But the Russians have air superiority, and we've got to
Speaker 1: take that air superior already away from them through anti
Speaker 1: aircraft devices such as stingers. But I don't think that
Speaker 1: will happen in time. General, as things stands. To wrap
Speaker 1: things up, we'd love your assessment of the base case
Speaker 1: about how this turns out, you write. A group was
Speaker 1: on with us earlier this week. They said we continue
Speaker 1: to see the most likely outcome of the invasion as
Speaker 1: a combination of regime change and Russian political control of
Speaker 1: the entirety of the country. What's your conclusion, your base
Speaker 1: case at the moment, General, Well, I think that's probably
Speaker 1: where it will end up. At these peace negotiations. Of
Speaker 1: these peace talks on the Belarusian border don't accomplish anything. Remember,
Speaker 1: wars don't end when the last person dies. Wars end
Speaker 1: at the diplomacy table, at the negotiating table, and candidly,
Speaker 1: the sooner we can negotiate Russia out of Ukraine, the better, mark, General,
Speaker 1: I'm wondering a lot of people are talking about the
Speaker 1: fact that Russia is a nuclear power, and NATO came
Speaker 1: out this morning and said that there's no need to
Speaker 1: change the nuclear weapons alert, even though Russia has come
Speaker 1: out and taken steps on that front. How concerned should
Speaker 1: we be? Can we shrug this off? Well, I don't
Speaker 1: think we can struggle just shrug it off. But I
Speaker 1: wouldn't tell you that while Vladimir Putin maybe stupid, he's
Speaker 1: not suicidal. And I think even he recognizes that a
Speaker 1: nuclear exchange any kind would be not only the end
Speaker 1: of his regime, but in many ways could could completely
Speaker 1: sink the Russian Federation. General we have to leave it there.
Speaker 1: We appreciate your time, and sir, please stay close. We'd
Speaker 1: love to catch up with you again soon. Lucky to
Speaker 1: catch up with General Mark Kimmitt this morning, let us
Speaker 1: go to an informed guest. She is absolutely brilliant in mathematics.
Speaker 1: Her graduate studies are just bulletproof. She holds court if
Speaker 1: b n Y Melon Wealth Management Alicia Levine on this
Speaker 1: historic Tuesday. Alicia, how is your view of the markets
Speaker 1: changed given war? Look, the geopolitical situation over in Europe
Speaker 1: with a hot war really just adds another layer to
Speaker 1: an already kind of very difficult environment for equities here,
Speaker 1: because you have that specter of the nineteen late nineteen seventies,
Speaker 1: early nineteen eighties, of that stag flash, stagflationary fear of
Speaker 1: sort of ever ratcheting down growth and ever ratcheting up inflation,
Speaker 1: as you've just spoken about. And what this conflict does
Speaker 1: is it plays into the inflationary piece, because I don't
Speaker 1: think the oil and gas piece, you know, the markets
Speaker 1: assuming that flows are going to say the way they
Speaker 1: are and then Iran will come on and it will
Speaker 1: be fine. And I think we have to ask ourselves,
Speaker 1: what if that doesn't happen. You know what if we
Speaker 1: do see a disruption, and I think you could see
Speaker 1: energy higher. And let's not forget that Ukraine is the
Speaker 1: bread basket of the former Soviet. You Union of the
Speaker 1: world's week comes from Ukraine, and so therefore commodity price
Speaker 1: inflation is going to stay higher. So it just really
Speaker 1: adds to those concerns and difficult and difficult environment for
Speaker 1: equities as a result. At least s are you surprised
Speaker 1: by how much we're fighting FED action this year, a
Speaker 1: CP action potentially later this year, and getting comfortable with
Speaker 1: the idea that the FED will pull back a bit.
Speaker 1: So I'm not surprised that the expectations for the ECB
Speaker 1: have pulled back, because after all, in a sense, the
Speaker 1: European economy is going to be most directly hit by
Speaker 1: this conflict and by the sanctions and by some turmoil
Speaker 1: in their local banks. So so that's not entirely surprising.
Speaker 1: I think it is more surprising for the FED simply
Speaker 1: because the inflation here is broad based and becoming sticky,
Speaker 1: and that is something the FED is going to have
Speaker 1: to deal with first and foremost. And I think the
Speaker 1: war is about growth. Are going to be secondary. They
Speaker 1: have to deal with the inflation piece, and ever increasing
Speaker 1: oil here is not going to help. It's just lasting longer.
Speaker 1: And what we've seen is that the length of time,
Speaker 1: the duration that these kind of factors filter into expectations
Speaker 1: just make it worse. And so even if we think
Speaker 1: it's transitory for a year, it's already gotten into the
Speaker 1: psyche of consumers and business leaders. Alicia, what happens if
Speaker 1: we continue to get this move where rates actually come
Speaker 1: down because people think that the FED is not going
Speaker 1: to move, and yet we see stock markets continue to
Speaker 1: decline because people are starting to price in stagflation. What
Speaker 1: happens in a regime where people basically are saying the
Speaker 1: FED has lost control over inflation. Right, Look, that that's
Speaker 1: the key question, because it's it's not a great environment
Speaker 1: for equities. But we actually think we're here in a
Speaker 1: range somewhere between hundred range, which is where we've been
Speaker 1: bouncing around until we settle what the main issue is,
Speaker 1: whether can inflation start moving lower in the spring, and
Speaker 1: can can be fed do it in a way that
Speaker 1: doesn't inhibit growth. I'll say this, the data on the
Speaker 1: real economy is coming in pretty nicely in February, and
Speaker 1: so that really does support better than you know, pretty
Speaker 1: decent growth. I am happily surprised about that, but that's
Speaker 1: the range is where we are until it gets settled
Speaker 1: one way or another. So there's risks in both directions here.
Speaker 1: I think you're going to start to see a bit
Speaker 1: in some of those large cap text socks also simply
Speaker 1: because that is that is really the safety play, earnings,
Speaker 1: cash flow dependability of a business that's really divorced from
Speaker 1: from the economic cycle. We're a little bit more cautious
Speaker 1: on the consumer cyclicals here, simply because in a rate
Speaker 1: hiking environment and an increasing inflation environment, that's those are
Speaker 1: really the areas to get hit first. What are you
Speaker 1: doing with energy companies right now? So we still like
Speaker 1: energy here. I think that much of the move is
Speaker 1: probably behind us. But given the situation here, I think
Speaker 1: energy is really still the play. The really interesting question here,
Speaker 1: and you've been bringing this up all morning of CEO
Speaker 1: from Devon Energy. You know, why isn't the US changing
Speaker 1: it's it's energy policy in the way that Germany has.
Speaker 1: I mean, think of German policy changed radically. You know
Speaker 1: what what it was for the last several decades as
Speaker 1: a response to this, and I think that's really something
Speaker 1: on a policy basis would not be a bad thing
Speaker 1: for the administration to address here, simply because it turns
Speaker 1: out that complicts and places with very small percentages of
Speaker 1: global GDP really do affect us. Alicia, wonderful to hear
Speaker 1: from you, and so always Alicia living of BM y Man,
Speaker 1: I'm with some really important questions. Let us move on
Speaker 1: to our interview of the damn for in exchange with
Speaker 1: Comac Travetti of Golden Sax were thrilled that you could join.
Speaker 1: Uh this morning, come act you very simple, where is
Speaker 1: the true valuation of ruble? Good morning? Thank you for
Speaker 1: having me. I mean, this is the kind of situation where, uh,
Speaker 1: you know, fundamental valuations are very hard to do. I mean,
Speaker 1: you can think about things like Russia's oil and gas exports,
Speaker 1: its current accounts surplus, it's reserves. None of these things
Speaker 1: matter at a time when a large quantity of the
Speaker 1: reserves are sanctioned. Essentially, the sanctions are making Russian assets
Speaker 1: uninvestable for most you know, Western investors, and they're making
Speaker 1: you know, valuations and fundamental valuation calculations pretty much impossible
Speaker 1: as well. Can you use adjacent ratios to come up
Speaker 1: with some form of guestimate of dollar ruble right now?
Speaker 1: Moving out from my eyes are failing me here from
Speaker 1: a one oh one, one oh two right now, can
Speaker 1: we dare say one fifteen or one twenty? Look, it
Speaker 1: all depends on how things evolve. You know. If you
Speaker 1: look back to the period fifteen when you had the
Speaker 1: annexation of crimea, hostilities in the don bus and of
Speaker 1: halving in the oil price, you saw, you know, a
Speaker 1: huge sell off in the ruble, you know, nearly you
Speaker 1: know or so, and that came along with a drain
Speaker 1: of central bank reserves of something like a hundred billion dollars. Uh.
Speaker 1: That kind of drain or that kind of decumulation in
Speaker 1: order to support the ruble is just not possible today.
Speaker 1: So again I think that you know, one can come
Speaker 1: up with you know, maximum undervaluation numbers or things like that. Uh,
Speaker 1: you know, and we are well through those points at
Speaker 1: at you know, hundred and fifteen or whatever it is.
Speaker 1: But I just think at this point it's it's not
Speaker 1: you need to see some crystallization of the risks. You
Speaker 1: need to see some sense of the end point here
Speaker 1: before you can put a firm value that this is
Speaker 1: kind of as far as it goes, and and no
Speaker 1: further in the meantime comm act share we're seeing is
Speaker 1: nodes of liquidity amid the sea of illiquidity that is
Speaker 1: the Russian market for all assets, where are you seeing
Speaker 1: the most traumatic ramifications, the most traumatic moves simply because
Speaker 1: it is the only place that people are using to
Speaker 1: offset some of their other bets. That potentially could be
Speaker 1: an overshoot if things do come to some resolution in
Speaker 1: the near term. That's the That's a very interesting question.
Speaker 1: I think that is really one that investors should be
Speaker 1: asking themselves as well, right, I mean, you know, Russian assets,
Speaker 1: as I said to the sanctions are making them very
Speaker 1: hard to to to touch. But there are the whole
Speaker 1: host of other assets that may be affected by what
Speaker 1: is going on in Russia and Ukraine. Uh and there
Speaker 1: at some point there may be a more interesting opportunity.
Speaker 1: I think the most significant risk premium is being put
Speaker 1: in the assets that are closest to the theater of
Speaker 1: conflict parts of Central Eastern Europe, Poland, Czech Republic, Hungary,
Speaker 1: The equities, the currencies in those regions, and those are
Speaker 1: places where if you saw some stabilization, some secession of
Speaker 1: some cease fire, I think would probably see some of
Speaker 1: the biggest recoveries and the fastest moves. Uh. And I
Speaker 1: think then there are assets that are pretty far away
Speaker 1: from that. You know, if you think about oil producing
Speaker 1: countries like Colombia and the Colombian Paso or the Middle
Speaker 1: East and oil producers the credits preds on those, I
Speaker 1: think some of those things could be You know, I
Speaker 1: have already been pretty resilient, but could see more out
Speaker 1: performance in the world where the hostility sees but oil
Speaker 1: prices are still meaningfully higher. You are an economist at
Speaker 1: the Bank of England. You understand the interplay of oil
Speaker 1: prices and growth and how the combat for inflation can transpire.
Speaker 1: Do you think that markets have gotten ahead of themselves
Speaker 1: in pricing out possible rate highs from either the Bank
Speaker 1: of England or the ECB, or even the better reserve
Speaker 1: on the hills of this conflict? I should say I
Speaker 1: was about economist the Bank of England many many years ago.
Speaker 1: Now obviously it's attist at Goldman facts, but um, look,
Speaker 1: I think the markets are trying to price a very
Speaker 1: uncertain situation, and I think what is really happening is
Speaker 1: that markets are, you know, implicitly making the assumption that
Speaker 1: the tightening in financial conditions that is needed to bring
Speaker 1: inflation down. Some of that tightening is already being delivered
Speaker 1: by the move higher and commodity prices and oil prices.
Speaker 1: I think that is sort of what the market is pricing,
Speaker 1: and I think that's why you're seeing the interest rates
Speaker 1: the yields moved down. I think that, you know, my
Speaker 1: our view is that you will still need to see
Speaker 1: considerable tightening, especially in places where as I said, the
Speaker 1: growth impact from this conflict may be relatively limited, but
Speaker 1: the negative shock from oil prices to inflation might actually
Speaker 1: be quite meaningful. So I it's it's understandable why markets
Speaker 1: are doing what they're doing, but I think it may
Speaker 1: be a bit too fast, and I think you're probably
Speaker 1: still going to see major central banks, at least in
Speaker 1: the near future, continue to be on a tightening trajectory.
Speaker 1: Can act right to catch up. We're gonna get your
Speaker 1: perspectives and really impotent thoughts on what's gonna happen with
Speaker 1: his current state. COTTI of Gellman Sacks thank you said
Speaker 1: right now, what we're gonna do is link a Russia
Speaker 1: surrounded by what is at fourteen nations to in America
Speaker 1: surrounded by two with great commonalities with Canada and Mexico.
Speaker 1: One company that has done that over the decades in
Speaker 1: North America is Target. Let's get your attention. Target is
Speaker 1: beat Walmart by over six hundred basis points per year
Speaker 1: in the last ten years in the name of Global
Speaker 1: Wall Street. That is success. Their chief financial officer, Michael
Speaker 1: Fidelki joins us this morning. Mike, I'm gonna cut to
Speaker 1: the chase. The President will speak tonight on a hundred
Speaker 1: and four hundred five dollar Brent crude. You spoke today
Speaker 1: with twenty four dollars per hour on your wage. How
Speaker 1: are you going to do this at twenty four dollars
Speaker 1: an hour blended forty eight thousand dollars a year for
Speaker 1: line employees. I'll tell you the investments that we make
Speaker 1: in our team from my seat for the best investments
Speaker 1: that we make, and that's been a path of investment
Speaker 1: over years now. We laid a path to get to
Speaker 1: a fifteen dollar starting wage back in accomplished that a
Speaker 1: couple of years ago. We've invested in additional benefits. We've
Speaker 1: invested in tuition free education, assistant assistance, and we see
Speaker 1: those investments paying off. You can see it and the
Speaker 1: results that team delivered in our quarter with growth of
Speaker 1: nine percent because of time. I don't mean to cut
Speaker 1: you off, but I think this is so important, Michael,
Speaker 1: because you lead on this and you and I'm gonna say, Amazon,
Speaker 1: Jesse and the rest are in the cross. Here's on
Speaker 1: this are we have an arms race right now for
Speaker 1: line employees. It's definitely a tight labor market, but our
Speaker 1: story might look different than what you'd hear elsewhere, and
Speaker 1: that we track our ability to attract and retain those
Speaker 1: metrics really closely. Those metrics are stronger for us right
Speaker 1: now than they were pre pandemic. So we see the
Speaker 1: results of that investment over time really paying off with
Speaker 1: a team that wants to come to work at Target
Speaker 1: and that best team in retails delivering. Michael, this is
Speaker 1: one side of the equation that you have a bird's
Speaker 1: eye view on the employment aspect. The other side is
Speaker 1: consumers willingness to keep spending at the same pace even
Speaker 1: as they see their price of gasoline rise to the
Speaker 1: highest level since two thousand and fourteen, even as wheat
Speaker 1: futures arise to the highest since two thousand and eight.
Speaker 1: How do you game this out when you talk about pricing,
Speaker 1: when you talk about passing it on to the consumers
Speaker 1: and your ability to do so. Is time running out
Speaker 1: to keep passing it all on directly? Now, we certainly
Speaker 1: see the inflationary costs pressure in the environment, but we
Speaker 1: tackle that really through the lens of our guests. Were fortunate.
Speaker 1: We have a lot of levers to pull within our
Speaker 1: business to make sure that we're protecting value for our guests,
Speaker 1: and price is the lever we pull last, not first,
Speaker 1: and that investment in value is working. If you look
Speaker 1: at our fourth quarter results that nine growth, it came
Speaker 1: almost entirely from traffic. That means guests picking target more often,
Speaker 1: whether with their footsteps or clicks to our website, and
Speaker 1: so those investments in protecting value or paying off. Michael,
Speaker 1: I'm asking because you sort of are at this cross
Speaker 1: section of what we talked about every day. We're talking
Speaker 1: about what's going on with Russia invading Ukraine, the possible
Speaker 1: disruption of supply chains, the possible ramifications on growth of
Speaker 1: oil prices, and I'm wondering how you factor these things
Speaker 1: and have you been scouring through your supply chains and
Speaker 1: looking for possible disruptions either from this or other perspective conflicts.
Speaker 1: I mean, how does this factor in to your day
Speaker 1: to day decision making now? As you might expect, it's
Speaker 1: a situation we monitor really closely, and I'll start by
Speaker 1: just saying our hearts go out to everyone impacted by
Speaker 1: the situation in Ukraine. I know it weighs heavily on
Speaker 1: my mind, our target team, and our guests. We're fortunate
Speaker 1: we've got the benefit of a really sophisticated supply chain
Speaker 1: that's navigated a lot of challenges over the last two
Speaker 1: years incredibly well, feel really it about our inventory position
Speaker 1: today upt to last year. That's a testament to us
Speaker 1: working through some of those supply chain challenges, so we
Speaker 1: should be well positioned to start the year. Have you
Speaker 1: found that you've actually gotten a lot of market share
Speaker 1: from smaller businesses simply because you have that ability to
Speaker 1: really rejigger supply chains and streamline certain costs so that
Speaker 1: you can pass it along. We look at our market
Speaker 1: share games over the last couple of years, we see
Speaker 1: them coming from a variety of places, and some of
Speaker 1: that goes to, you know, the market share story by category.
Speaker 1: As you know, we've got strength across so many categories,
Speaker 1: from a really strong apparel business to a strong food
Speaker 1: and beverage business, and each of those categories grew double
Speaker 1: digits in the last year. And so the market stare
Speaker 1: share store is a little different by category, but it's
Speaker 1: it's a wide set of sources. Michael, big move in
Speaker 1: a pre market today by almost eleven months to move
Speaker 1: in fact from New York. Thank you, Michael. Michael Fowk
Speaker 1: there of target. The target move quite sizeable in early trading,
Speaker 1: yet today down about writing much of that and the
Speaker 1: Eddie pot of today's session. This is the Bloomberg Surveillance Podcast.
Speaker 1: Thanks for listening. Join us live weekdays from seven to
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Speaker 1: Keene and this is Bloomberg