Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
Speaker 1: Bloomberg Quick Takes Tim Stanivik. We're here every day bringing
Speaker 1: you the latest news from the world to business and finance,
Speaker 1: plus technology, politics, economics, all partnising the power of Business
Speaker 1: Week reporters and editors, not to mention our journalists and
Speaker 1: analyst in more than one and twenty countries. You can
Speaker 1: download Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot com.
Speaker 1: You can also listen to our radio show at two
Speaker 1: pm Eastern Time on Bloomberg Radio, or watch us on
Speaker 1: YouTube search Bloomberg Global News. Alright, so a bunch of
Speaker 1: things going on. Fiser's covin I team, PILL receiving backing
Speaker 1: from the European Unions Drug Regulator UM offering a tool
Speaker 1: to manage coronavirus infections at home. Really eas the burden
Speaker 1: in hospitals. We're seeing that go on. Tim, here's something
Speaker 1: else that's really interesting, Denmark saying the virus is no
Speaker 1: longer a threat to society. God, that's really good. Germany
Speaker 1: they still saw another surgeon cases. I think they're thinking
Speaker 1: the peak happens into February. It's all about people learning
Speaker 1: to live with it. Yeah, exactly, and but tracking it
Speaker 1: so that we know what we need to do and
Speaker 1: when we need to kind of step up some of
Speaker 1: measure some of the measures against it. Hey back with
Speaker 1: us again is Rupa Rupalli LeMay. She is Director of
Speaker 1: Behavioral and Implementation Science at the International Vaccine Access Center.
Speaker 1: She's also the Associate director for Behavioral Research at the
Speaker 1: Institute for Vaccine Safety. It's all at Johns Hopkins Bloomberg
Speaker 1: School of Public Health, supported by Michael R. Bloomberg, Founder,
Speaker 1: Bloomberg LP, and Bloomberg Philanthropies. Rupolli on the phone in
Speaker 1: Falls Church, Virginia. Hey, nice to have you here. How
Speaker 1: are you. I'm good, Thanks so much for having me. Well,
Speaker 1: it's good to have you back with us. I'm exhausted
Speaker 1: by COVID. I'm sure you guys are do I do.
Speaker 1: I love that we though have more tools and we
Speaker 1: can figure out how to read the data and what
Speaker 1: it means and how to maybe you know, impact the
Speaker 1: data by wearing masks or social distancing and so on
Speaker 1: and so forth. What's front and center for you right now? Roupoli?
Speaker 1: I think what's really been key here is, as you know,
Speaker 1: There's been a lot of chatter because of omicron and
Speaker 1: what's happening. And I know that we're plateauing in many parts,
Speaker 1: especially here in the Northeast, but in other parts of
Speaker 1: the tree we have not plateaued. But I think the
Speaker 1: key here is really not to let up. And I
Speaker 1: think that is my concern is that in many school
Speaker 1: districts they are lifting mass mandates for example, we're thinking
Speaker 1: about other loosening, I would say, of different types of
Speaker 1: multilayer strategies, and that's not really what we should be
Speaker 1: doing right now. Um, And so that's a little bit
Speaker 1: of concern for me. When do you think we can
Speaker 1: start doing that? If? If not now? When you know
Speaker 1: it seems to be the really highly contagious variant is
Speaker 1: on its way down in many parts of the country.
Speaker 1: What's a realistic time frame for us to think about
Speaker 1: this stuff. I think a more realistic time frame is that,
Speaker 1: you know, I think if we can even wait for
Speaker 1: another month or so, this will also coincide as we'll
Speaker 1: start to get a little bit warmer, which naturally allows
Speaker 1: for more people to be outdoors. We see drops in
Speaker 1: respiratory diseases in general, not just st our school B
Speaker 1: two but like RSB and flu activity for example. So
Speaker 1: I think that if people can hold on for another
Speaker 1: month or so and continue to wear their masks, I
Speaker 1: think that that will help a lot in the long term.
Speaker 1: What we've seen in the past is that as soon
Speaker 1: as we start to see cases go down, we start
Speaker 1: to loosen restricttions, and then we go right back into
Speaker 1: another surge. Right, So I'm really hoping that, you know,
Speaker 1: people are tired of living this way, and I get it,
Speaker 1: but I think that if we can minimize really morbidity
Speaker 1: and mortality related to respiratory diseases in general, then that
Speaker 1: would be the way to go. Well, is this just
Speaker 1: going to be a case of like a year from now,
Speaker 1: we'll see another spike, could be a new variant or whatever,
Speaker 1: and we'll like throw onto masks again, but go go
Speaker 1: that our merry way. Like I'm curiously, do you have
Speaker 1: any eye on the trajectory here? Yeah? No, one's a
Speaker 1: really great question. And there was one estimate that came
Speaker 1: out just like last week that essentially indicated that perhaps
Speaker 1: two percent of Americans have now been infected with COVID
Speaker 1: at least. I assume that numbers under reported right, then
Speaker 1: we have a proportion of the population that has been vascinated.
Speaker 1: So with those two numbers kind of combined together, I
Speaker 1: think we're getting to the point where there's not going
Speaker 1: to be as many susceptible individuals to severe disease. And
Speaker 1: that's what I think we can live with, right And
Speaker 1: so I I really don't know. I know there will
Speaker 1: be a new variant simply because we have not vascinated
Speaker 1: the world yet. Right in other parts of the world,
Speaker 1: less than five percent of populations are vaccinated, and so
Speaker 1: we will continue to deal with this. I think the
Speaker 1: bigger question is when does it become less severe for
Speaker 1: individuals here in the United States, And when do people
Speaker 1: really become more comfortable, I would say, and that will
Speaker 1: also go hand in hand when there will be a
Speaker 1: vaccine for kiddos under the age of five, because, as
Speaker 1: you know, parents have just really struggled how to protect
Speaker 1: their children. Right him is one of those parents waiting.
Speaker 1: So I have two children under the age of twelve,
Speaker 1: and I can't tell you we were just waiting and
Speaker 1: waiting for the eu A right for that age rage.
Speaker 1: So it's I think it'll be a game changer. But again,
Speaker 1: I think it's just something that a lot of people
Speaker 1: are struggling trying to figure out what they're comfortable with
Speaker 1: with regards to risk, right, and Hey, what's the data
Speaker 1: that you need to see for you to say, Okay,
Speaker 1: now we have left the pandemic stage. It's gone endemic. Yes, Um,
Speaker 1: So part of it will have to do with just
Speaker 1: the amount of transmission happening at the community level, right,
Speaker 1: we want to see it drop to a specific level.
Speaker 1: Once it drops under that level and we start to see,
Speaker 1: hopefully with at UM, subsequently we will start to see
Speaker 1: a decrease in hospitalizations as well, right, and any sort
Speaker 1: of severe COVID, that's when I think we will start
Speaker 1: to feel a little bit more comfortable. And as I said,
Speaker 1: with the warmer months coming up, this is really a
Speaker 1: nice time. I don't know if you all remember last
Speaker 1: summer was actually like really nice for most people. A
Speaker 1: lot of people in excavated. We kind of felt like
Speaker 1: we were going back, right, we were returning a little
Speaker 1: bit mac But yeah, I mean I'm hoping that this
Speaker 1: we were in a very different space than we were
Speaker 1: last year. Right, we have we have way more tools.
Speaker 1: I think it's just being able to follow the evidence
Speaker 1: which we have seen that obviously this is a politicized issue.
Speaker 1: Another problem you gotta ask. You just got about a
Speaker 1: minute or under a minute left. We've got a Bloomberg
Speaker 1: opinion piece that's out there about mr Anti micobial resistance
Speaker 1: or infections that don't respond to drugs. Our headline on
Speaker 1: the story this opinion piece the world's next big health emergency.
Speaker 1: It's here. It's about resistance to a lot of drugs.
Speaker 1: Do you guys talk about that? We talked about it
Speaker 1: all the time, Okay? Um, And this will really has
Speaker 1: to do with this issue of sort of over prescribing
Speaker 1: of antibiotics, right, which has led to this In addition
Speaker 1: to that, but then as you know, virus has changed
Speaker 1: in the utade and then in addition to that, we're
Speaker 1: starting to see essentially more pathogens than we did even
Speaker 1: twenty years ago. Right, So, I think the environments has
Speaker 1: changed with regards to just, um, how many essentially pathogens
Speaker 1: are floating around, but also just the over use, unfortunately
Speaker 1: of antibiotics. And I do think it's going to be
Speaker 1: a huge challenge coming up here as our next major
Speaker 1: global health challenge to I'm not ready to I'm not
Speaker 1: ready for the next major global health challenge. I'm still
Speaker 1: dealing with the current major Happy Thursday. Everybody, Um, we
Speaker 1: probably we really appreciate it and love of the insight
Speaker 1: you give us, even when it's a bummer Rupoli LeMay.
Speaker 1: She's director of Behavioral and Implantmentation Science at the International
Speaker 1: Vaccine Access Center that's over at Johns Hopkins Bloomberg School
Speaker 1: of Public Health. You know it. It's supported by Michael
Speaker 1: lar Bloomberg founder, Bloomberg LP and Bloomberg Philanthropies could claim
Speaker 1: ten million lives annually by Mr Happy Friday, I mean
Speaker 1: happy you wish it was Friday and then ah under
Speaker 1: the covers. You're listening to Bloomberg Radio. This is Bloomberg
Speaker 1: Business Week with Carol Messer and Bloomberg Quick Takes Tim
Speaker 1: Stinovic on Bloomberg Radio. So check your pantry or your
Speaker 1: spy Strawer, you know you have a bunch of McCormick
Speaker 1: spices there. But did you know about the company's big
Speaker 1: move into the hot sauce space. We know because we
Speaker 1: actually read a great Yeah. I didn't know until I
Speaker 1: read this story today. It's a fantastic one. It's by
Speaker 1: Austin Carr, technology reporter for Bloomberg News. Joel Weber, editor
Speaker 1: at Bloomberg business Week, joins us now along with Austin Carr.
Speaker 1: Austin's on the phone from Boston, Joel on the access
Speaker 1: line from Brooklyn, Joel Austin, Um, Joel, how much how
Speaker 1: much hot sauce went into the production of this piece?
Speaker 1: Oh man, Uh, I'm gonna I'm gonna guess Gallan's although
Speaker 1: I don't I can't give you a real number. You're
Speaker 1: not joking, by the way, because this is not because
Speaker 1: there are a lot of Photo Photo company's Austin story.
Speaker 1: Is this fountain that we made? Uh In the photographer
Speaker 1: pumped a bunch of hot sauce through it. It was
Speaker 1: kind of a disastrous experiment. Um, And I wouldn't recommend
Speaker 1: that anybody ever feel a fountain full of hot sauce
Speaker 1: unless you really want to make a gigantic mess that
Speaker 1: leaves permanent stains. But the story that Austin did to
Speaker 1: a company that photo was a legendary one. Um. You
Speaker 1: definitely know McCormick because they make all the spices, the
Speaker 1: red Cat spices that are probably in your spice road
Speaker 1: right now. But as Austin found out, they found growth
Speaker 1: in another area, right Austin, where'd they go? Well, they've
Speaker 1: gone deep into beyond seasonings, into the sauce game, specifically
Speaker 1: with Hot sauce Um. You probably know McCormick as as
Speaker 1: Joel said, from their Red Cap seasonings, paprika, cinnamon and
Speaker 1: so forth. But they also owned Frenches, Mustard, Stubbs, Barbecue
Speaker 1: Sauce Old. But they and then more recently they've really
Speaker 1: been diving deep into the five billion dollar worldwide hot
Speaker 1: sale hot sauce market with the purchase of Frank's Red
Speaker 1: Haunt and Cholula Hot sauce Um. And it's this booming
Speaker 1: market and the story is about how they're sort of
Speaker 1: going after the taking on Tabasco and some of the
Speaker 1: biggest names in hot sauce UH, to sort of transform
Speaker 1: from this you know, old world spice maker into a
Speaker 1: sauce giant. And is it working, I mean in terms
Speaker 1: of getting notoriety, getting shelf space, juicing the bottom and
Speaker 1: top lines. It's they just reported earnings this morning, which
Speaker 1: for record uh they beat the street uh for and
Speaker 1: for their year end earnings. And you know, while the
Speaker 1: market's been been roughed. They they're actually near an all
Speaker 1: time high right now at seven percent, nearly seven percent today. UM.
Speaker 1: So they were actually soaring throughout the pandemic partly because
Speaker 1: people were running to stock their their kitchens, their pantries,
Speaker 1: not just with all types of seasonings and spices, but
Speaker 1: with sauces because you have so many grub hub deliveries
Speaker 1: home cooked meals, and people are looking to spice these
Speaker 1: hub and that's why we've seen the global hot sauce
Speaker 1: market grow about fifty since UM and in the US,
Speaker 1: the specif sically it's actually on par right now with
Speaker 1: ketchup sales. Wow. I mean we use so much more
Speaker 1: hot sauce in my house Cholula. By the way, can
Speaker 1: I just say that earlier we did a taping with
Speaker 1: Joel for a weekend show about this story, and I
Speaker 1: just lost, like Joel and Tim playing off on there.
Speaker 1: I don't know if the tape was rolling when we
Speaker 1: when we just started talking about hot sauce. Um, it
Speaker 1: was after them, it was after the conversation. Yeah. But
Speaker 1: I mean, just to fill you guys in, Joel and
Speaker 1: I kind of grew up with tapatio, which isn't is
Speaker 1: a competitor to Cholula, which you you dive into in
Speaker 1: the story a little bit. Austin, get some commentary from
Speaker 1: one of the family owners that company. Hey, um, how
Speaker 1: important is is Hot Sauce to McCormick's future. And I
Speaker 1: want to I want to try to understand, like how
Speaker 1: the company changed and adapted during the pandemic, because there's
Speaker 1: some great detail in your piece about that, the great
Speaker 1: tumoric shortage of and then and then how does it
Speaker 1: transition from being known as a spice company or perhaps
Speaker 1: one that is more focused on on these condiments. Yeah,
Speaker 1: so let me start on the first first side of
Speaker 1: things with the pandemic. Um. You know, this was a
Speaker 1: puny that at the same time as their their sales
Speaker 1: were rocketing, they were having trouble with as was every
Speaker 1: sort of physical good company with keeping up with with manufacturing, um,
Speaker 1: with with freight, um with a sort of shipments and
Speaker 1: retail and restaurants business. Um. And how they overcome that
Speaker 1: is is just by being as adaptable as possible. I
Speaker 1: mean they when you noted the tumeric shortage, uh, you know,
Speaker 1: people were rushing out to buy everything from from powder
Speaker 1: to America, which which has become a big health food.
Speaker 1: UM to the stuff that is actually used to America,
Speaker 1: is used in French is yellow mustard. That's what gives it.
Speaker 1: It's it's yellow color um, which is sort of radio
Speaker 1: active and UM. And so they were actually you know,
Speaker 1: juggling various sources. UM. They actually chartered a plane with
Speaker 1: an emergency payload full of tumeric for French is that
Speaker 1: actually arrived at the wrong airport. They had to have
Speaker 1: sent trucks overnight to get it to the Frenches factory
Speaker 1: uh in Missouri on time for a production run. We
Speaker 1: almost the US actually almost ran out of mustard during
Speaker 1: that time frame. So so thank god we survived that. UM.
Speaker 1: But since then they've really been pivoting. And I'd say
Speaker 1: just on the earnings called today the big the big
Speaker 1: word is cholula chilula chaluo because it continues to really boom.
Speaker 1: I mean, it moved up from the number three Hut
Speaker 1: Sauce to the number two. They have the number one
Speaker 1: hot Sauce and Frank's in between the two. Together in
Speaker 1: the US they own about a third of the market
Speaker 1: just in the last couple of years. I've laughed quietly
Speaker 1: to myself about fifteen times since I last spoke in
Speaker 1: this conversation. What what's next between them and world dominant
Speaker 1: condiment dominance Austin. You know, I think it really comes
Speaker 1: down to making sure they let the brands and products
Speaker 1: speak from themselves. You know. You know, I think some
Speaker 1: people thought, oh, when they bought these companies like Frank's
Speaker 1: Red Hut Chu Lula, would they replaced that those bottles
Speaker 1: with their traditional red cap seasoning. And what they've done
Speaker 1: is actually just let these products sell themselves on the shelves.
Speaker 1: You might not realize it, but but as as we said,
Speaker 1: you know, they own all this this arsenal of sauces,
Speaker 1: and they're going up against Kraft Hinds, which you may
Speaker 1: not realize also owns Great Poupon a one Miracle Whip
Speaker 1: Whist sauce from Leon Purren's and you know Lever with
Speaker 1: with Hellman's and Sir Kensington's and all these big sauce
Speaker 1: companies are trying to have this arsenal, this sort of
Speaker 1: alliance of different sauces to sort of corner the market.
Speaker 1: Every time you go to to Walmart or Whole Foods,
Speaker 1: and and you know, so every time you go out
Speaker 1: to buy something just to recognize that you're all you're
Speaker 1: not just choosing a flavor, but you're you're sort of
Speaker 1: choosing an allegiance to one of the big sauce brands.
Speaker 1: You've got Big Hot Sauce, Big Sauce. Uh, there's also
Speaker 1: Big Mayo, Big catch Up. Who's the biggest of them all?
Speaker 1: Mayonne is surprisingly worldwide, is the biggest um you know.
Speaker 1: I've gone into the story thinking catch Up would would
Speaker 1: would beat them by leaps and bounds, But actually, uh,
Speaker 1: Mayo is about eleven billion dollar market. Uh, catch Ups
Speaker 1: about seven billion worldwide, Hut Sauce about five, and then
Speaker 1: Mustard is actually in the last place among that set
Speaker 1: with about two billion dollars. But but Big Mayo remains
Speaker 1: the biggest player out there. And I think that's just
Speaker 1: because so many, so much stuff mixes that I love
Speaker 1: to mix Cholula and Mayo. It's it's an excellent combination. Uh.
Speaker 1: I really appreciate how much research you probably put in
Speaker 1: on yourself on your own time. So I gotta ask
Speaker 1: Austin to close this out. Would you rather have a
Speaker 1: Hot Sauce Mountain or the Dakar machine that I know
Speaker 1: you have from your last recording, I would say, put
Speaker 1: your hands together, Joel, I I want to both. I
Speaker 1: want a spicy Uh. Okay, all right, there we go. Alright,
Speaker 1: good stuff, Austin, Austin, great stuff. This was such a
Speaker 1: great piece. It really was a lot of fun. Austin
Speaker 1: car He's technology reporter at Bloomberg News on the phone
Speaker 1: from Boston. Catch his story. It's in the new issue
Speaker 1: Bloomber business Week magazine. It's on newsstands on the Bloombergin
Speaker 1: at Bloomberg dot com. Uh slash business Week in our
Speaker 1: thanks to Joe Weber, editor Bloomberg business Week on the
Speaker 1: access line from Brooklyn. Catch more on the whole issue
Speaker 1: of Bloomber business Week that's coming up in our weekend
Speaker 1: show you and catch at eight am Saturday on Bloomberg Radio.
Speaker 1: Also pick up this issue of Bloomberg Business Week. Uh.
Speaker 1: The photo of the fondue fountain full of what appears
Speaker 1: to be some mixture of concoction of Frank's red hot
Speaker 1: based on of the sposity that I can see, is
Speaker 1: absolutely worth it alone. And Austin's stories just fantastic. Coming
Speaker 1: to a wedding near you. Just do this, alright, You're
Speaker 1: listening to Bloomberg Business Week with Carol Messer and Bloomberg
Speaker 1: Quick Takes Tim Stinovic on Bloomberg Radio. He definitely on
Speaker 1: our radar today is Tesla. We've seen the stock under
Speaker 1: pressure once again. Let me just pull it up on
Speaker 1: the Bloomberg and it's down about almost eleven percent here.
Speaker 1: This is after the company pushed back introductions of new
Speaker 1: models to next year. A lot going on. Meanwhile, we
Speaker 1: do have Elon Musk laying out what he says maybe
Speaker 1: the most important product that the company is working on,
Speaker 1: and it's probably not what you're thinking. So let's get
Speaker 1: to it with Bloomberg News Technology reporter Dana Hall. She
Speaker 1: is on the phone in San Francisco. Hey Dana, nice
Speaker 1: to have you here with Tim and myself. Um, what's
Speaker 1: up with Ellen? So? Elon Musk was on the shareholder
Speaker 1: call yesterday and he had promised that he would give
Speaker 1: this updated product roadmap, so investors, customers, analysts, journalists, we
Speaker 1: were all expecting to hear cyber truck, semi truck, roadster,
Speaker 1: the future car, and in a nutshell, he basically said
Speaker 1: they're not making any of those vehicles this year, and
Speaker 1: that the most important products that they're working on is
Speaker 1: a humanoid robot that he unveiled um a couple of
Speaker 1: months ago, um, which is fine, but I mean I
Speaker 1: think you're seeing the stock really kind of sell off
Speaker 1: today as a reasult. I mean it's down almost eleven UM.
Speaker 1: I mean, I think the concern is that, you know,
Speaker 1: TESSELA makes cars. People want to hear about the cars
Speaker 1: that are coming. Big competitors like Ford and Rivian are
Speaker 1: out with their trucks, and the cyber truck is the
Speaker 1: next vehicle in the in the Tessel lineup, so we
Speaker 1: were hoping to hear a little bit more. I think,
Speaker 1: like I think a lot of investors were hoping to
Speaker 1: hear more about the cyber truck. But basically it's off
Speaker 1: the table. So you know, I think you're just having
Speaker 1: a bit of a reckoning today. Was that the white
Speaker 1: person the person in the like white right, It wasn't
Speaker 1: even a road, It was like a person dress like
Speaker 1: a robot dancing on stage. Remembered it correctly, Yeah, yeah, okay,
Speaker 1: more on cars and just those you're watching on YouTube
Speaker 1: right now are so they can see as a person
Speaker 1: that in like a white Leodard definitely not a robot, Dana,
Speaker 1: What is the point of this humanoid robot in terms
Speaker 1: of what it can do and what it can do
Speaker 1: for Testla's business. If this is the most important product
Speaker 1: in development, what is it? Well, it musk. I mean, basically,
Speaker 1: it's gonna it's gonna come for your job. I mean
Speaker 1: Tesla's factory, particularly the one here in Fremont, employees over
Speaker 1: ten thousand people, and a lot of people have jobs
Speaker 1: like material handler, whether they're literally like moving parts from
Speaker 1: one side of the factory to the other. I mean,
Speaker 1: it's still a very human, labor intensive job. And I
Speaker 1: think what he said on the calling yesterday was that,
Speaker 1: you know, the first place that they'll use this robot
Speaker 1: is in Tesla's facility, so you could see these you
Speaker 1: know robots, you know, moving packages, delivering things across the factory,
Speaker 1: moving parts, um. And that all sounds very fine and
Speaker 1: very futuristic, but you know, a big part of Tesla's
Speaker 1: growth has always been premised on this idea that they
Speaker 1: were going to compete in every segment of the vehicle
Speaker 1: market market. Now, what they're basically saying is, well, there's
Speaker 1: no point in making the cybertruck because we're still building
Speaker 1: with all the supply chain issues and we have all
Speaker 1: these parts problems. So we're just going to focus on
Speaker 1: the Model three and the Model Y and this robot
Speaker 1: and you know, we're going to continue to work on
Speaker 1: these vehicles, but they're not coming out anytime soon. And so,
Speaker 1: you know, I think that's just worris. I mean, the
Speaker 1: cyber truck was first unveiled over two years ago, and uh,
Speaker 1: you know, I think people were thinking that they'd at
Speaker 1: least see a couple of them maybe by the end
Speaker 1: of this year. Well as don is this you know,
Speaker 1: Ellen being Elan, and he does it really well in
Speaker 1: terms of you know, if you've got questions over here,
Speaker 1: don't worry about it for now. But here's the other,
Speaker 1: you know, shiny new thing that I want you to
Speaker 1: focus on. And this is gonna be the real growth
Speaker 1: engine going forward. Like is that what we're doing or
Speaker 1: is this just een? Like? Yeah, I mean, I don't know.
Speaker 1: There's a point where he talked about the Tesla card
Speaker 1: we all didn't believe him, and look where we are today.
Speaker 1: So I guess I don't know how you understand this company,
Speaker 1: you understand how are we supposed to think about this robot.
Speaker 1: Is this a real thing? Well? I think that. I
Speaker 1: think that what Musk does does he he he brings
Speaker 1: up products. I mean he introduces products before they really exist,
Speaker 1: and he's done this over and over again with you know,
Speaker 1: the solar roof. I mean, now the solar roof is
Speaker 1: out there, but I mean when he first unveiled it,
Speaker 1: it was like just a concept, didn't and so, but
Speaker 1: what you're seeing is that for a company that is
Speaker 1: an automaker, like when you unveil you know, the cybersruck.
Speaker 1: I mean, the semi truck was first unveiled in twenty seventeen,
Speaker 1: I believe, so that's like five years and that we
Speaker 1: we have yet to see that vehicle in any high numbers.
Speaker 1: So I think maybe people are just getting a little
Speaker 1: tired of it, um, I mean unveiling these products that
Speaker 1: never really come to market. That said, I mean, does
Speaker 1: Tessa have a division that's working on this robot. Absolutely,
Speaker 1: but it's like yeah, like now we're focusing on the
Speaker 1: robot and not the vehicles. I do think that people
Speaker 1: appreciate Musk's transparency. I mean he's frank in that he like, yeah,
Speaker 1: we're not going to make any other cars this year.
Speaker 1: But that's not what people wanted to hear. I mean,
Speaker 1: and you can see it in the share price, right,
Speaker 1: you can really see it. It's taking a beating. Yeah,
Speaker 1: they're they're about to they're on paste to wipe out
Speaker 1: like a hundred billion of their valuation in a single day. Yeah,
Speaker 1: it's uh, you know, at it's you know, if you
Speaker 1: look back on where Elon Musk actually sold Tesla shares
Speaker 1: late last year, it turned out to be a good time.
Speaker 1: It's having it's at the lowest level since October four
Speaker 1: of last year, Dannis, So, so help us make the
Speaker 1: connection to you know, what's going on with the share price,
Speaker 1: because it still is a company that's valued at over
Speaker 1: eight hundred billion dollars despite the fact that it sells
Speaker 1: the and look, I know it's all based on future uh.
Speaker 1: And that's what I've told on Twitter every time I
Speaker 1: try to talk about this, you are too even too
Speaker 1: more of an extent um. But to help us reconcile
Speaker 1: why there is such a sky evaluation for the company,
Speaker 1: h well there, I mean, you know, to be fair
Speaker 1: to Tesla, they are still seen as being in the
Speaker 1: pole position in terms of the brand that consumers most
Speaker 1: associate with electric vehicles. They had fairly I mean their
Speaker 1: their actual earnings report was strong. I mean they have
Speaker 1: really strong growth margins, record profit. Uh, they've paid down
Speaker 1: a lot of their debt. But you know, the earnings
Speaker 1: call itself is really this opportunity for Musk to talk
Speaker 1: about what's coming, and the fact that he talked about
Speaker 1: humanoid robot and not a vehicle just I think concerned
Speaker 1: a lot of people. Brian Johnson and Barclays put it
Speaker 1: really good in his note today. He was like talking
Speaker 1: product pipeline must pivoted from future vehicles rotexta humanoid robots.
Speaker 1: Concerned about the lack of a physical product pipeline. Well said, Okay,
Speaker 1: gotta run, Danna, thank you so much. Denni Hall, Bloomberg
Speaker 1: News technology reporter on the phone in San Francisco. This
Speaker 1: is Bloomberg Radio. Yeah, but you let me drive. No, no,
Speaker 1: no home please, I want to drive. It's a good
Speaker 1: question to drive. This is the drive to the clothes.
Speaker 1: Let's get to it. Just got about tennis left in
Speaker 1: today's trading session and it is time for the drive
Speaker 1: to the closed. I'm exhausted area. It's been a it's
Speaker 1: been a busy weekend. It has been a really busy week.
Speaker 1: Busy week for traders too. Yeah, right, and FED meeting
Speaker 1: and all that good stuff. Let's say what Hillary Kramer
Speaker 1: has to say, President and Chief investment Officer at Angie
Speaker 1: Campitell Research. She's on the phone in New York City. Um,
Speaker 1: we always like to talk names with you, but it
Speaker 1: is a week where it is also smart to talk macro,
Speaker 1: especially coming off of that FED meeting. How has what
Speaker 1: we got from the FED UH and f O m
Speaker 1: C Hillary chained at all? You're thinking about strategy for
Speaker 1: this year when it comes to the financial markets, Carol
Speaker 1: offense been still way too accommodative. We really didn't hear
Speaker 1: anything from Powell. It was a matter of fact, many
Speaker 1: of us found it somewhat of a confusing speak from
Speaker 1: both of the mouth kind of speech. We're looking at
Speaker 1: a one point six trillion dollar budget um, that budget
Speaker 1: for the three fiscal year, and that's without there being
Speaker 1: a COVID, without there being an Afghanistan. All of this
Speaker 1: is very serious. Are buying just just a discretionary budget alone?
Speaker 1: So ordinarily, you know, I count with my names, and
Speaker 1: I'm excited, and it's all about making money. But I
Speaker 1: am a macro investor and I am looking at the
Speaker 1: macro and that's why right now we're very just were
Speaker 1: very very careful with what we're buying. You know, we're
Speaker 1: really looking for the right places to go in. There's
Speaker 1: still a lot of fluff in that market. You know,
Speaker 1: Testa did okay, but you know they're down. They have
Speaker 1: to they have to. You know, there's a lot of
Speaker 1: a lot of high stock price that has to be
Speaker 1: worked off there. Uh. You know Netflix has come back,
Speaker 1: and that's in its own world, Rightflix. Netflix has its
Speaker 1: own is phone deal. But let's talk Hillary about some
Speaker 1: of these names, because you know, I want to make
Speaker 1: sure that we get these in um there there. I
Speaker 1: think a lot of people would agree with you that
Speaker 1: there is a lot of fluff out there and that
Speaker 1: you know, some of that fluff has been or that
Speaker 1: oxygen has been removed in recent days, in recent weeks. Peloton,
Speaker 1: though you call Peloton a steel right now, it's trading
Speaker 1: blow typo price down another three percent today. Why is
Speaker 1: it a steal? Because of acquisitions, money is still cheap.
Speaker 1: Someone could still come in and pick up Peloton, even
Speaker 1: if it's just for for the name alone right as
Speaker 1: they say you're fifteen minutes of fame. I mean this
Speaker 1: is a cheap stock. Now it's going to get cheaper
Speaker 1: and get there's still there's still might be some value there.
Speaker 1: I mean that being said, of course, so are you
Speaker 1: saying it's so you're saying it's an acquisition target or
Speaker 1: what it would be an acquisition target? It would be
Speaker 1: an acquisition target. Management team has been beat up, they're tired.
Speaker 1: They would get let's talk tired the people, you know,
Speaker 1: I think that should be the theme of the day
Speaker 1: is tired, How tired? So many people are really right
Speaker 1: now and uh and and have written so high and
Speaker 1: then have have come so low. So that's why we're
Speaker 1: looking at the end game for a lot of companies.
Speaker 1: You know, there are very few companies like GM, for example.
Speaker 1: Like we like GM for its fundamentals. We think that
Speaker 1: GM can have a chance. It's down twenty percent year
Speaker 1: to date, it's still a strong um you know, well
Speaker 1: liked company, and or Otto is doing well, and Escalades
Speaker 1: and gmc s and I know what you're thinking. The
Speaker 1: price of gases, you know, just horrendous through the roof.
Speaker 1: But we're looking for companies like that. There aren't many.
Speaker 1: We don't want to be buying companies simply because Peloton
Speaker 1: could could get scooped up by someone once it gets
Speaker 1: cheap enough, because it's a dangerous game to play. Uh
Speaker 1: you know how cheap does it have to get? Did
Speaker 1: anyone ever? You would not? I would, it would, but
Speaker 1: not unless you're doing what we do, which is we're
Speaker 1: sitting you know, we're looking at uh you know, we're
Speaker 1: looking at the technicals when it comes to that, you know,
Speaker 1: how how many shares seem to be accumulated? What's the
Speaker 1: right timing there? Uh? What we really have its basically
Speaker 1: a liquidity event thing that you're you're betting on that
Speaker 1: they're going to do that, something's gonna happen. Tell me
Speaker 1: about the robin Hood because they're going to report after
Speaker 1: the closing bell. We're going to be all over. This
Speaker 1: stock is just decimated. It's been an amazing first year
Speaker 1: right as a publicly held company, roughly not even a
Speaker 1: full first year, right because it was late summer that
Speaker 1: they went public. You say robin Hood is dead money,
Speaker 1: You wouldn't touch it, wouldn't wouldn't go near it, No way,
Speaker 1: not when you have too many discount brokerage firms that
Speaker 1: UM took the best of what robin Hood had to
Speaker 1: offer and made sure to integrate it into their own
Speaker 1: into their own business models, whether it be Schwab or
Speaker 1: a Merry Trade or e Trade, UM even in Vanguard
Speaker 1: for example. So UM and then plus let's let's keep
Speaker 1: in mind what robin Hood told us all, which is
Speaker 1: that there's a that the deal flow is sold and
Speaker 1: uh and too many people have lost too much money. Uh.
Speaker 1: And then of course, or even though I'm a big
Speaker 1: advocate of UM, of all, I'm a big big advocate
Speaker 1: of crypto, but more for when it's going to be
Speaker 1: on exchanges, when it will be so you like coin,
Speaker 1: then yes, yes, so I so I do like that.
Speaker 1: But I think everyone needs to be mindful and realize
Speaker 1: that we're we're going into a time period. You know,
Speaker 1: you know things are bad when stocks like Hormel start
Speaker 1: to go up. You know when everyone suddenly uh you know,
Speaker 1: wants to own this is bad? Or is it bad?
Speaker 1: Is to be fair, Hilary, is it? Is it bad?
Speaker 1: Or is it just a little bit of rotation, recalibration
Speaker 1: and away from some of those names that you just
Speaker 1: couldn't do anything but share and higher. So as we
Speaker 1: kind of recalibrate what economic growth and earnings growth, which
Speaker 1: we will have, but it will be different. And so
Speaker 1: you play around with those names that have been left behind.
Speaker 1: It's not so much recalibration as so many of the
Speaker 1: individual investors have been knocked out of the game, knocked out.
Speaker 1: And then you have the big hedge funds which have liquidated,
Speaker 1: right they've they've sold into rallies. Okay, so that you
Speaker 1: have you have the combination of those two and that's
Speaker 1: been you know, it's been pulling the market down. So
Speaker 1: we all have to be mindful. Look, we've got to
Speaker 1: keep our eye enterprised. And that's going to be Apple tonight.
Speaker 1: You know. We we have to see big numbers in hardware.
Speaker 1: We're going to have to see that the market is
Speaker 1: still embracing and loving Apple. But but there's a lot
Speaker 1: of concerns. So and I think the other the other point.
Speaker 1: I always talk specifics, but it's just quickly, yeah, go ahead, yeah, yeah,
Speaker 1: very very quickly Apple. I ordered. I ordered an iPhone
Speaker 1: thirteen Promax in November. Was supposed to be here within
Speaker 1: four weeks. Instead, I get text messages. Are you enjoying it?
Speaker 1: Are you enjoying and enjoying it? I searched the house,
Speaker 1: they searched them. They start where. Then at the end
Speaker 1: of the day, guess what I call Apple? Oh no,
Speaker 1: you never got it. You want her and your money.
Speaker 1: Those kinds of trips. All right, I'm gonna say that
Speaker 1: We've got a new laptop in our house, and I've
Speaker 1: got new earbuds. So I think maybe it's like we're
Speaker 1: all contributing to Apple's most recent court exactly. Hey, Hillary,
Speaker 1: we've got to run. Hillary Kramer, she's president and chief
Speaker 1: investment officer at a G capital Resource on the phone
Speaker 1: in New York City. Thanks for listening to Bloomberg Business Week.
Speaker 1: Download the podcast on iTunes, SoundCloud, or Bloomberg dot com,
Speaker 1: and you can also listen to our radio show at
Speaker 1: two pm Eastern on Bloomberg Radio or watch us on YouTube.
Speaker 1: Search to Bloomberg Global News.