Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg business
Speaker 1: Weekdaily reporting from the magazine that helps global leaders stay
Speaker 1: ahead with insight on the people, companies, and trends shaping
Speaker 1: today's complex economy. Plus global business, finance and tech news
Speaker 1: as it happens. The Bloomberg Business Week Daily Podcast with
Speaker 1: Carol Masser and Tim Stenebeck on Bloomberg Radio.
Speaker 2: Dell shares rising as much as six percent earlier in
Speaker 2: the session, They've come back a bit three point three
Speaker 2: percent to the upside. Right now. The company roughly doubling
Speaker 2: its growth estimates for sales and profit for the next
Speaker 2: two years. It said demand for AI products will extend
Speaker 2: those higher projections at least through the twenty thirty fiscal year.
Speaker 2: We've got a special treat in the Bloomberg Interactive Broker's studio. Wujinhoe.
Speaker 2: He's Bloomberg Intelligence Senior Hardware and Network anat.
Speaker 3: Say, he's usually at a box, usually is, but he's
Speaker 3: at least in our box in our studio.
Speaker 2: Yeah, it's really good to have him here in the studio.
Speaker 2: Usually out in Princeton, New Jersey, where Bloomberg Intelligence headquarters is. Okay,
Speaker 2: I'm putting Carol on the spot here anywhere you're gonna go,
Speaker 2: Carol's Carol's not convinced Dell as an AI company. Should
Speaker 2: we think of Dell as an AI company?
Speaker 4: No?
Speaker 3: Right, boom, Carol, I'm a good company, all right, so
Speaker 3: laid out for us.
Speaker 5: So so look, they're they're involved in AI servers.
Speaker 6: At the end of the day, they are a box
Speaker 6: maker that takes un video chips and put it assembles
Speaker 6: everything together in the box.
Speaker 3: This is the whole on premise thing, right, this is
Speaker 3: the help It's a built out from yeah, neo clouds
Speaker 3: like the core Weeds and the n scales and Thebeuss
Speaker 3: in the world.
Speaker 6: Right, we got those companies and then also the sovereign
Speaker 6: AI sovereign AI companies and just just to break down
Speaker 6: their guidance, right, they guide it to seven to nine percent,
Speaker 6: up from three to four percent that the last analyst day.
Speaker 6: What's really driving that is twenty to twenty five percent
Speaker 6: growth in AI servers right now. This is phenomenal growth
Speaker 6: considering how much it's grown over the past couple of years. Right,
Speaker 6: And what it tells me is, like, I know, there's
Speaker 6: a lot of bubble concerns on AI servers. It shows
Speaker 6: the durability of a server revenue. To put it in context,
Speaker 6: their revenue guidance, the AI server guidance implies from twenty
Speaker 6: billion in fiscal twenty twenty six to about forty five
Speaker 6: billion in twenty thirty.
Speaker 5: That's amazing, it's these are phenomenal numbers.
Speaker 3: That's off the chart. But why is that not a
Speaker 3: sign of bubble. Well, this is a bubble.
Speaker 5: So there was a couple of things.
Speaker 6: I'm actually here from the analyst date, which is why
Speaker 6: i'm which is why I'm in New York. And what
Speaker 6: they're telling me is that, look, they're very early on
Speaker 6: that s curve, so the demand cycle is still fairly
Speaker 6: fairly early.
Speaker 5: Right.
Speaker 6: They're not really involved in the hyperscale cloud guys, but
Speaker 6: they are c new data centers cropping up every every day,
Speaker 6: every week, every month, and they have good visibility into
Speaker 6: sales at least for the next couple of years on
Speaker 6: what the order flow is. Right now, think of Michael Dell, Right,
Speaker 6: he's involved in every AI deal that's possibly out there, right,
Speaker 6: so he's going to be exposed to every type of
Speaker 6: as every deal globally x China of course, right, So do.
Speaker 3: You mean he's he's involved in every AI deal his
Speaker 3: equipment you say, his equipment.
Speaker 6: Well, well, he's probably one of the best sales people
Speaker 6: that's out there for from an IT hardware standpoint. Right,
Speaker 6: Let's let's look at some of the involvement that he's
Speaker 6: been in recently. If we think about the TikTok deal
Speaker 6: that was announced, right, he's involved there. He has global
Speaker 6: footprint in terms of what type of deals there are.
Speaker 6: He's probably he's probably involved in some of that open
Speaker 6: AI sales as well. Right, So he's got some you know,
Speaker 6: some breadth and and and good exposure to what deals
Speaker 6: are coming in. So he is going to the company
Speaker 6: itself is going to be involved in all of those deals.
Speaker 2: Biggest competitor Lenovo HP Who is it?
Speaker 5: You know, we bring it up all the time. It's
Speaker 5: it's biggest competitor right now? Is super Micro?
Speaker 7: Oh god, remember we kind of stopped talking about them.
Speaker 2: Yeah, how is the biggest competitor?
Speaker 6: Well, if we, if we, if we, if we look
Speaker 6: about look at super Micro right now from an OEM standpoint,
Speaker 6: they're doing they're on pace too, about thirty three billion
Speaker 6: dollars in total revenue. I would say about seventy percent
Speaker 6: of those sales are going to be AI server related
Speaker 6: and that's going to be comparable to tell right, and
Speaker 6: they're going to gonnect connect. Now, the one company, the
Speaker 6: one group of company, or the white white box vendors
Speaker 6: think about the fox cons of the world, the Quantitas
Speaker 6: of the world, and they kind of dispelled them as
Speaker 6: as a competitive threat to some degree because they can
Speaker 6: make custom servers number one and also help with the
Speaker 6: time to market.
Speaker 8: Right.
Speaker 6: Uh, these uh, these neo clouds as well as the sobigs,
Speaker 6: they actually want their AI servers now, right, and the
Speaker 6: sooner the better, and if and if they can get
Speaker 6: the GPU supply which is part of the components and delivery,
Speaker 6: they'll they'll be able to win those seals.
Speaker 4: Right.
Speaker 2: I'm waiting for you to be convinced that it's an
Speaker 2: AI company though Wujin says, you're right, it's not an
Speaker 2: AI company not yet.
Speaker 5: Well does it does it? Or well, it's a box maker.
Speaker 2: It's a box maker, right, but it's at the intersection
Speaker 2: of all this technology that that is correct. It's it's
Speaker 2: a box provider for these companies help support every is
Speaker 2: every deal.
Speaker 6: Well, so so when when I when I think about
Speaker 6: their their deal activity in general, right. I I'm from
Speaker 6: a profitability standpoint, AI servers only generated about five percent
Speaker 6: for doubt operation Dell an almost industry wide, right, So
Speaker 6: from a profit standpoint, it's almost comparable to a PC
Speaker 6: selling a PC. Right, So what's really driving profitability is
Speaker 6: gross profit dollars and operating profit dollars. To really drive
Speaker 6: up that EPs growth, I would call it an AI company.
Speaker 6: If we think about the gross margin profiles of someone
Speaker 6: like an Nvideo or Broadcom or the chip makers. They're
Speaker 6: actually selling the picks and shovels, right, Dell is only selling.
Speaker 7: The cart Okay, good to know. So is it the
Speaker 7: move up in the share price justified? You think?
Speaker 5: Yeah?
Speaker 6: For a couple of things. AI server revenues are higher
Speaker 6: than expected. More importantly, the EPs growth of fifteen percent
Speaker 6: much higher than expected. So if they're able to execute
Speaker 6: on their margin profile, on their margin targets as well
Speaker 6: as a cash flow targets, there are going to be
Speaker 6: a lot of satisfying investors.
Speaker 4: Wow.
Speaker 7: Interesting to see.
Speaker 3: I mean, the company reports November twenty fifth, after markets.
Speaker 3: We have a little bit of time stucks up about
Speaker 3: thirty one percent years.
Speaker 5: We're from three Q Guidance, So that helps.
Speaker 3: Right, exactly, exactly, always helps when you're here, and to
Speaker 3: have you in studio, My.
Speaker 7: God, what a gift.
Speaker 5: Nos on mine?
Speaker 7: No, no, oh, good stuff.
Speaker 2: Next time you're in the city, tell us, tell us
Speaker 2: and you'll take us to dinner.
Speaker 5: We'll do that. I'll bring some more tea. Does that
Speaker 5: sound good?
Speaker 6: I know you guys want the tea, so you always
Speaker 6: want the te too, All right, love it?
Speaker 7: Going to leave it there.
Speaker 3: We didn't thank you so much, really appreciate it.
Speaker 4: Well before you leave.
Speaker 3: Since we just have you, I mean, we have been
Speaker 3: spending so much time this week looking at the AI
Speaker 3: spend and I really feel like it's been over the
Speaker 3: last few weeks when we continue to see all these deals.
Speaker 7: Are is it wise to be asking is it a bubble?
Speaker 7: Or when you do your.
Speaker 3: Channel checks does this all seem legit in terms of
Speaker 3: the spend. And Ernie's is going to show us whether
Speaker 3: the spend is.
Speaker 7: Paying off for some of the companies that are spending time.
Speaker 3: But what's the smart I don't know you talking to
Speaker 3: the executives in these worlds?
Speaker 6: Yeah so so so when I look at it right
Speaker 6: now from I think there's a disconnect in terms of
Speaker 6: the revenues generated from AI to the AI build out.
Speaker 5: Right.
Speaker 6: I know that the recent news flow has been you know, look,
Speaker 6: the AI uptake hasn't been as strongest as we had hope.
Speaker 6: But if we if we recall back a couple of
Speaker 6: weeks right ago, when open ai talked about the token generation,
Speaker 6: the token is consumed for these AI models, and I
Speaker 6: believe they had like some ridiculous summer of like one
Speaker 6: hundred ten billion or one hundred million dollars in revenue.
Speaker 6: I mean, we're starting to see consumer AI really starting
Speaker 6: to ramp up, right, So essentially what they're doing is
Speaker 6: they're building before they really start seeing that revenue slot
Speaker 6: machine happened.
Speaker 3: All right, Good to know, like it gets like all
Speaker 3: the stuff we've been talking about this week. Wu Jinho,
Speaker 3: thank you again, so appreciate it, Senior hardware Networking analyst
Speaker 3: at Bloomberg Intelligence.
Speaker 7: Right here in our interactive broker studio.
Speaker 9: Stay with us.
Speaker 2: More from Bloomberg Business Week Daily coming up after this.
Speaker 1: You're listening to the Bloomberg Business Week Daily Podcast. Catch
Speaker 1: us live weekday afternoons from two to five eastering Listen
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Speaker 3: As Tim mentioned just before, Charlie McKinsey expects women to
Speaker 3: control thirty four trillion dollars, or roughly thirty eight percent
Speaker 3: of investable assets by twenty thirty. That's close to double
Speaker 3: last year's total. We have definitely seen the figure grow
Speaker 3: over the last decade. Let's get to our weekly discussion
Speaker 3: on Women, Money and Power, where we explore the economic
Speaker 3: implications of these changes and how to navigate them.
Speaker 7: There's so much going on. Great to have back with us.
Speaker 3: Aaron Harklessmore, she's vice president managing director of Investments for
Speaker 3: Pivotal Ventures, right here in studio.
Speaker 7: Welcome, It's so good to see you.
Speaker 2: How are you.
Speaker 10: I'm doing great, Carol, Tim, thanks for having me on today.
Speaker 3: Thank you.
Speaker 4: Well.
Speaker 7: You know, this is a big issue.
Speaker 3: We've been talking about it for years, about the amount
Speaker 3: of money that's either shifting into the hands of women,
Speaker 3: what it means, what the differences are. I am curious
Speaker 3: and maybe not everybody's aware of all the work that
Speaker 3: you guys are doing. You have this very specific mission
Speaker 3: at Pivotal remind everybody what you're up to, and I
Speaker 3: am curious about what it means on a day to
Speaker 3: day best basis what you're looking forward to, invest in
Speaker 3: relationships and so on.
Speaker 10: Yes again, well thank you for having me.
Speaker 11: Pivotal is an organization founded by Melinda French Gates in
Speaker 11: twenty fifteen.
Speaker 10: We are focused on advancing.
Speaker 11: Social progress and specifically when Melinda set up Pivotal, she
Speaker 11: realized that there would we would need multiple levers and
Speaker 11: tools to do that, including philanthropy and investment capital to
Speaker 11: get more power in the hands of more people, particularly women,
Speaker 11: So we invest in women led funds. We also invest
Speaker 11: in companies that are innovating in areas and themes like
Speaker 11: women's health and caregiving where women carry a lot of
Speaker 11: bird and there's great opportunity to drive innovation, and we
Speaker 11: think make a lot of money investing behind those themes
Speaker 11: as well. So that was the real impetus to found
Speaker 11: Pivotal for Melenda. She wanted women to be in a
Speaker 11: position to make decisions, control resources and capital, and influence
Speaker 11: the decisions that are happening in our workplaces and our communities,
Speaker 11: in our schools, and in our homes. And that's what
Speaker 11: we're setting out to do with our investments every day.
Speaker 2: So when you identify those investments, when you identify where
Speaker 2: you want that money to go, what are the things
Speaker 2: that actually advance power and influence for women? In your view, it's.
Speaker 10: Having women in positions to make decisions.
Speaker 11: So as we invest in funds that again are predominantly
Speaker 11: women owned and led firms, they're investing across a spectrum
Speaker 11: of sectors, everything from AI enterprise, digital health, financial technology, fintech,
Speaker 11: the care economy, which I'm it's one of my favorite topics.
Speaker 11: I'm happy to talk a lot more about that too.
Speaker 11: But that's what women's power is for us. It's women
Speaker 11: again in a position to make these decisions. And it's
Speaker 11: also true for our direct investing as well. You know,
Speaker 11: many of the companies that we backed have female leaders
Speaker 11: and some do not. But we're just trying to find
Speaker 11: founders and innovators that are really solving problems for everyday
Speaker 11: Americans and everyday women.
Speaker 3: You know, I love that, and we want to get
Speaker 3: into some of the specifics in terms of where you
Speaker 3: guys are investing. But this idea of getting money in
Speaker 3: the hands of women, you know, how many times do
Speaker 3: we sit around this table and it doesn't matter what
Speaker 3: group we're talking about.
Speaker 7: Money talks.
Speaker 3: Yes, it gives you a seat at the table, whatever
Speaker 3: table that may be. And it's just fascinating that here
Speaker 3: we are still in twenty twenty five and it's still
Speaker 3: a struggle. But this idea that you guys are specifically
Speaker 3: targeting women and making sure that they are having the
Speaker 3: money they need to.
Speaker 7: Kind of grow their power, that's really important.
Speaker 11: It is, it's incredibly important, Carol, And you know the
Speaker 11: numbers have improved.
Speaker 10: About a decade ago, about.
Speaker 11: Nine percent of decision makers partners at US venture capital
Speaker 11: firms were women. That number has grown to about eighteen percent.
Speaker 11: So we've made meaningful progress in the last ten years,
Speaker 11: but we have a long way to go. And as
Speaker 11: you both share it in the opening, you know that
Speaker 11: thirty plus trillion dollars of assets that are held by
Speaker 11: baby boomers that are going to most of that transferring
Speaker 11: now to women. Women are going to want different things
Speaker 11: with their money. They want different advisors, they want products
Speaker 11: that meet their needs and solve some of the issues
Speaker 11: and problems that they're facing. And so we see again
Speaker 11: a huge opportunity if we can change the face of
Speaker 11: who is making the decisions that brings real power and
Speaker 11: real change.
Speaker 2: Can we talk about caregiving for a minute. It's an
Speaker 2: area of your focus, It's an area of focus at
Speaker 2: Pivotal Ventures. It's something that Carol and I think a
Speaker 2: lot about, but involved in it. Yes, how do you
Speaker 2: make this work structurally in an economy like ours?
Speaker 10: We have to start with the care infrastructure.
Speaker 11: We've supported research at Pivotal Ventures that sizes the care
Speaker 11: economy at six hundred and forty eight billion dollars. I'm
Speaker 11: going to pause and let that sink in every time
Speaker 11: I see.
Speaker 2: So that's for people offspring, but also for people's parents
Speaker 2: and other loved ones they might be taking.
Speaker 11: Care exactly Tim, It's the full spectrum. I describe it
Speaker 11: as end of life, back to beginning of life, childcare,
Speaker 11: elder care. We think of women's health solutions, solutions to
Speaker 11: help you optimize your.
Speaker 10: Home life better, to care an age in place.
Speaker 11: All of that is a part of that six hundred
Speaker 11: and forty eight billion dollar market, and we've ignored caregiving
Speaker 11: for too long. It's the most important work.
Speaker 10: As you said, we all do.
Speaker 11: Everyone's a caregiver at some point in their lives, and
Speaker 11: as we thought about sectors or themes where women specifically
Speaker 11: carry a big burden.
Speaker 10: Caregiving is one of them.
Speaker 11: And we want to fund the innovators and the founders
Speaker 11: that are building companies to address these solutions and again
Speaker 11: just make that loving work that we do easier.
Speaker 5: Yeah, because you don't.
Speaker 3: I mean, the gaps that are out there is tremendous,
Speaker 3: and if you have money, it's a lot easier. If
Speaker 3: you don't, it's really really a struggle. One thing I
Speaker 3: want to get to and I think about how you
Speaker 3: guys are going about this. Last month, Aspen Institute launched
Speaker 3: the Workplace Innovative Innovation excuse me, Workplace Innovation Now Challenge,
Speaker 3: Win Challenge. You guys are involved in it a sixty
Speaker 3: million dollars grant competition.
Speaker 7: What's the goal here, what's the mission?
Speaker 11: The goal is to find better solutions for women in
Speaker 11: the workplace. We are thrilled to partner with the Aspen
Speaker 11: Institute and this initiative and looking at ways that we
Speaker 11: can improve the workplace environment for women around AI, around culture,
Speaker 11: around narrative. So there'll be more coming out in the
Speaker 11: weeks and months ahead. I encourage you know, social entrepreneurs, philanthropists,
Speaker 11: to take note and support that work alongside us because
Speaker 11: we need better solutions for women in all facets of
Speaker 11: our lives.
Speaker 7: We've made progress, but we could do better, we could
Speaker 7: do more. It's just you know, this is I feel
Speaker 7: like we have talked about.
Speaker 3: Women in money for a long time, women in power
Speaker 3: in a long time, and like you say, we've made progress,
Speaker 3: but you know, if you could change one thing, we've
Speaker 3: just got about thirty seconds that really improve women money power,
Speaker 3: like the whole thing, what would it be.
Speaker 11: I think it's knowing what you own and asking questions,
Speaker 11: not being satisfied with the status quo. I think that's
Speaker 11: probably the biggest thing. One thing that we try to
Speaker 11: do with our investment process and that our founder, Melinda
Speaker 11: Frigates has empowered us to do, is to build a
Speaker 11: diligence process, a sourcing process that's more inclusive, that tries
Speaker 11: to build and find new patterns of success as investors.
Speaker 11: And I think that's one thing that I would encourage
Speaker 11: all of us, whether it's with your personal your four
Speaker 11: to one K or if your or other institutional investors
Speaker 11: to take that.
Speaker 10: Tact as well.
Speaker 7: I like that ask questions.
Speaker 3: Aaron Harkless Moore, VP and Managing Director of Investments for
Speaker 3: Pivotal Adventures.
Speaker 2: Stay with us more from Bloomberg Business Week Daily coming
Speaker 2: up after this.
Speaker 1: You're listening to the Bloomberg Business Week Daily podcast. Catch
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Speaker 2: It is Bloomberg BusinessWeek Daily. We love checking in with mayors.
Speaker 2: They're the ones on the ground in cities and towns
Speaker 2: across the country. They're the ones who are making the
Speaker 2: decisions that affect the lives of people in their communities,
Speaker 2: and they hear from people in their communities when they're
Speaker 2: just walking down the street. Mayor Brandon Scott of Baltimore
Speaker 2: is one of those mayors, and he joins us now
Speaker 2: in the Bloomberg Interactive Brokers Studio. We should note that
Speaker 2: the city has received money from Bloomberg Philanthropies. It is
Speaker 2: the philanthropic arm of Bloomberg Elipy, the parent company of
Speaker 2: Bloomberg Radio. Mayor, welcome to the program. Re elected in
Speaker 2: twenty twenty four, You've been mayor since twenty twenty. I
Speaker 2: want to start with the government shutdown because you are
Speaker 2: pretty close to Washington, DC. You've got some folks in
Speaker 2: your community who certainly work there and obviously benefit from
Speaker 2: people working in the government. The President making comments earlier
Speaker 2: today that we can expect layoff details in four to
Speaker 2: five days. How's the shutdown affecting your constituents right now.
Speaker 8: Well, there's a lot of my constitionis on on ease
Speaker 8: right when you're thinking about over twelve thousand Baltimoreans work
Speaker 8: for the federal government, either directly or on contract, and
Speaker 8: then when you think about what that's going to mean
Speaker 8: for them and their families, they're just not at ease
Speaker 8: right now.
Speaker 4: And folks want to go to work. They want their
Speaker 4: government to be working.
Speaker 8: And of course then all of ratherdents who depend on
Speaker 8: programming and things that are just going to be out
Speaker 8: there that may not be having a direct impact as
Speaker 8: if yet father shut down, but as it continues and
Speaker 8: goes on, it would be what do.
Speaker 3: You consider what do you consider your biggest problem in
Speaker 3: running the city?
Speaker 7: I mean Baltimore. You know we report about it a lot.
Speaker 3: It is the fourth most dangerous according to US News
Speaker 3: and World Report this summer, ranking Baltimore the fourth most
Speaker 3: dangerous city in the country, behind Memphis, Oakland, and Saint
Speaker 3: Louis based on FBI data.
Speaker 7: They look at property crime, they look at murders per capita.
Speaker 7: But what do you, as mayor. I'm sure there's a
Speaker 7: lot that's on your plate. What's top of mind?
Speaker 8: Well, listen, violence is always top of MI us, the
Speaker 8: reason why I got into off and we understand.
Speaker 4: That we have a long way to go. But I
Speaker 4: know you guys know.
Speaker 8: Here Bloomberg Radio the many years that we were number
Speaker 8: one on that list, and as you and I are
Speaker 8: talking today, I think it's the mode and the talversation
Speaker 8: around Baltimore and violence has shifted significantly. We have the
Speaker 8: fewest amount of homicide through any October seventh on record today.
Speaker 4: That is a big change.
Speaker 8: When I said twenty twenty one, laying out our conference
Speaker 8: and violence Prevention Plan, that we were going to reduce
Speaker 8: homicide by fifteen percent from one year to the next.
Speaker 4: People literally laughed.
Speaker 8: Right now, it's down thirty percent from last year, and
Speaker 8: last year was a record reduction for us.
Speaker 4: We're going to continue that.
Speaker 10: How did you do it?
Speaker 8: We did it throughout our conference's plan a week, which
Speaker 8: is which is a bunch of things. One first and foremost,
Speaker 8: we go and we identify those who are most likely
Speaker 8: to be the victim of perpetrator of gun violence, and
Speaker 8: we focus on them. We give them opportunities to change
Speaker 8: their life, and if not, we remove them.
Speaker 4: Via law enforcement. And that's how we're driving down violence.
Speaker 8: We're focusing on guns and the flow of guns into
Speaker 8: our city, going at the gun traffickers, those who are
Speaker 8: using gun arresting them at my direction with the police department,
Speaker 8: turning them over to our state's attorney and our attorney general.
Speaker 8: We have historical levels of investment into community violence intervention
Speaker 8: where we.
Speaker 4: Have people who used to be on the other side
Speaker 4: of the law.
Speaker 8: Going out and preventing conflicts from escalating into violence.
Speaker 4: All of it. We're going after gun manufactured people.
Speaker 3: Who understand where the problem the problem is. If you're
Speaker 3: pulling them in to help you, they were.
Speaker 4: The problem and there they're part of the solution, and
Speaker 4: what better way to do that?
Speaker 7: Get does people to do that well?
Speaker 4: Easy?
Speaker 8: First and foremost, many people who have made that mistake
Speaker 8: don't want people come in behind them to make.
Speaker 4: That and they know that we're growing this.
Speaker 8: Network of community violence intervention workers in our city. So
Speaker 8: the word is out that we want to give people
Speaker 8: a second chance to be a part of solving a
Speaker 8: problem that they once were causing.
Speaker 2: The city though in the crosshairs of the President he
Speaker 2: called it a hellhole. Last month, you and Governor Wes
Speaker 2: Moore said that law enforcement from the state will patrol
Speaker 2: some areas.
Speaker 9: Has that begun?
Speaker 8: Yeah, that's begun, and that's the governor is actually restarting
Speaker 8: something that was ended by his predecessor.
Speaker 4: Think about it like this.
Speaker 8: You would not find any other state police department in
Speaker 8: any state in this country not operating at all in
Speaker 8: its only major city. That's Baltimore City was the only
Speaker 8: jurisdiction in Maryland that our Maryland State Police did not
Speaker 8: operate in the Governor's restarting that, we're grateful for that
Speaker 8: support and to continue that work.
Speaker 2: Are you open to the President's sending National Guard troops
Speaker 2: to this.
Speaker 8: We've been very clear about that. Why we know how
Speaker 8: to reduce violence in Baltimore. We have reduced violence to
Speaker 8: its lowest levels ever recorded on record, even lower than
Speaker 8: the President's first term. The way that we have done
Speaker 8: it in partnership with our community, with our Police Department
Speaker 8: with ole station Attorney Ourtorney General, and our federal law
Speaker 8: enforcement partners who work beside us each and every day.
Speaker 4: That's how we should continue that work.
Speaker 8: If the President wants to help us, he should restore
Speaker 8: grants and funding that was cut to organizations that helping that.
Speaker 8: Restore grants, I mean funding cut from those law enforcement agencies.
Speaker 8: This president has had the biggest reduction in funding for
Speaker 8: federal law ENSFM agencies.
Speaker 4: They should be restored.
Speaker 7: What funding are you not getting as a result?
Speaker 4: For us, we have not been directly impacted as of yet.
Speaker 8: It's our partner organizations like for example, a Life Bridge
Speaker 8: helps them runs the Center for Hope that's a part
Speaker 8: of our CVI network that has programming around CBI's community
Speaker 8: violence intervention. They lost a five hundred thousand dollars grant,
Speaker 8: the same thing for living classrooms.
Speaker 4: That's big work that is going to be.
Speaker 8: Not happening, whether it be a hospital based response, our
Speaker 8: community based responders. We need a victim assistance for young people,
Speaker 8: getting those young people the services they need that helps
Speaker 8: to prevent balance as well.
Speaker 2: What will you do though, if the President sends troops, well, listen, will.
Speaker 8: Be prepared to take whatever action that we can, be
Speaker 8: it legal others alongside our governor and our team, based
Speaker 8: on when, what and how the President does something, if
Speaker 8: he does anything.
Speaker 4: But what we hope the President.
Speaker 8: Does is to continue to support those agents that are
Speaker 8: already working in our city and let them do their
Speaker 8: work and lit the law fortionate partnership that has driven
Speaker 8: up results.
Speaker 4: This far curious all the way.
Speaker 2: But even though crime has improved, even though you shared
Speaker 2: statistics that show they're the best that they they've ever been.
Speaker 2: Like Carol mentioned this, your city is still on a list.
Speaker 2: But yeah, that you don't want to be on. So
Speaker 2: I say to people out there who are saying, well,
Speaker 2: I would feel more comfortable if there were an increased
Speaker 2: law enforcement presence, and that could include federal trips.
Speaker 8: Well, we had the National Guard in Baltimore in twenty
Speaker 8: fifteen following the unrested Freddie Gray.
Speaker 4: It's one of the most violent years ever. It didn't help.
Speaker 8: Right, We have to remember this is not what those
Speaker 8: folks signed up to do. Allow those folks who sign
Speaker 8: up to go after a gun, traffiers, murderers, robbers, carjackins
Speaker 8: to do their work and allow the other people to
Speaker 8: do their work and listen. There are other lists, you know,
Speaker 8: there are many of these lists. We were on some
Speaker 8: list on some list we weren't on. How the list
Speaker 8: that we want to be on is the list of
Speaker 8: who has the largest reductions. And you will be hard
Speaker 8: pressed to find a city in this country that's had
Speaker 8: a sustainable, long term reduction like Baltimore's had from a
Speaker 8: September of twenty twenty two, I mean in twenty and
Speaker 8: twenty three until now.
Speaker 3: What do you see as what's wrong with politics today?
Speaker 3: What do you think is wrong with what some say
Speaker 3: is the Democratic Party not very clear in its mission
Speaker 3: and kind of stepping.
Speaker 4: Up well, very simply, I think that, And I ask.
Speaker 3: You because I think there's a lot of forgive me,
Speaker 3: but there's a lot of folks who think there are
Speaker 3: politicians who become career politicians and things haven't changed and
Speaker 3: we need some change.
Speaker 8: Well, I think that what folks have to understand is
Speaker 8: that for me, and I say this about the Democratic
Speaker 8: Party all the time, more recently, they have to let
Speaker 8: the folks that are closest to the problem be outfront
Speaker 8: and part of the solution, meaning they need to listen
Speaker 8: to mayors, the mayors are the ones that have to
Speaker 8: solve the problems. The mayors are the ones that have
Speaker 8: to meet the people in the grocery store. And we've
Speaker 8: proven in city after city at the city we know
Speaker 8: how to drive down crime.
Speaker 4: And you have to talk to people where they are.
Speaker 8: We have to get out of being up in the
Speaker 8: sky with pie and the sky, talk to people.
Speaker 4: In real sense, real things that.
Speaker 8: Impact them, and explain to them how these things are
Speaker 8: going to make their communities better.
Speaker 7: How long do you want to be mayor?
Speaker 8: I want to be mayor for as long as the
Speaker 8: residence of Baltimore will have me. This will be my
Speaker 8: second term, believe it or not. I've been an elected
Speaker 8: office since twenty eleven and this is I've been in
Speaker 8: city Hall since two thousand and seven.
Speaker 2: But you're a young man right now, Yes, a young man.
Speaker 8: I'll be forty two on my birthday. But this is
Speaker 8: about making my city better. I got into this service
Speaker 8: because I saw someone get shot at seven years old
Speaker 8: and no one care and wanting to drive down that violence.
Speaker 8: To have vacant housing be it as lowest point in
Speaker 8: my lifetime in Baltimore, something we're proud of.
Speaker 4: But we're not celebrating. We have a lot of work
Speaker 4: to do and we're going to do it.
Speaker 3: The reason I go back there is I do think
Speaker 3: we talked about this in media that there isn't a
Speaker 3: lot of you know, local publications anymore. A lot of
Speaker 3: newspapers have shut down, and so we get.
Speaker 7: Kind of the high in the Yeah, that get that view,
Speaker 7: but we don't. It's why we love talking to mayors.
Speaker 3: But often people are mayors and then they move up
Speaker 3: and they go to governor or then they go to
Speaker 3: Congress and stuff.
Speaker 7: So I'm just curious, is how long do you want
Speaker 7: to stay on that log?
Speaker 5: Yeah?
Speaker 4: Well, everyone knows the endgame.
Speaker 8: Everyone knows I don't want to be governor, and everyone
Speaker 8: in Baltimore knows that I'll be quite okay if being
Speaker 8: the mayor of Baltimore is the last elected office I've had.
Speaker 4: This is my dream job as a child. I will
Speaker 4: hold it.
Speaker 8: As long as the residents of Baltimore will allow me
Speaker 8: to do so, and as long as I'm living within
Speaker 8: term limits.
Speaker 2: Before we let you go, because you have a train
Speaker 2: to catch to get home, Yes, and we want to
Speaker 2: be respectful of your time. The attracting and retaining business
Speaker 2: to the city. We know that's a economic development is
Speaker 2: a way to improve cities. What are you doing right
Speaker 2: now to say Baltimore is open for business?
Speaker 4: Yeah? I think that way.
Speaker 8: We have to understand we had a four billion dollars
Speaker 8: of investment into Baltimore. We have seven billion dollars investment
Speaker 8: coming into downtown Baltimore. Whether it's t ro Price's new headquarters,
Speaker 8: so under Armer's new headquarters, everyone knows throughout downtown Rise
Speaker 8: Play we are open for business in the City of Baltimore.
Speaker 8: Reforming our permit process and reforming our zoning code, all
Speaker 8: the things that we need to do to help grow
Speaker 8: business in Baltimore, especially in the tech and life science
Speaker 8: industry that is taken off out of Hopkins and out
Speaker 8: of the University of Maryland, putting a lot of money
Speaker 8: and a lot of tech businesses out into the EFILM.
Speaker 7: Any signs that we're headed towards a.
Speaker 4: Recession, well, we'll see.
Speaker 8: We know that with terrorists and all the other things going,
Speaker 8: we just have to all be mindful of what's happening
Speaker 8: and prepare as we're doing our budgets.
Speaker 4: I've been talking to my brother and system maas to
Speaker 4: make sure that.
Speaker 8: We're being responsible right now because we do not know
Speaker 8: yet what is to come.
Speaker 5: So appreciate it.
Speaker 4: Go for your train, yes, ma'am, thank you very much.
Speaker 7: He's running for that train. Well, well be safe.
Speaker 3: Brendan Scott, the Baltimore mayor joining us here in our
Speaker 3: Interactive Brokers studio. As Tim mentioned earlier, that city has
Speaker 3: definitely received money from Bloomberg Philanthropies, which is of course owned.
Speaker 7: By Michael R. Bloomberg, founder a Bloomberg LP and Bloomberg Hilana.
Speaker 2: Stay with us more from Bloomberg Business Week Daily coming
Speaker 2: up after this.
Speaker 1: You're listening to the Bloomberg Business Week Daily Podcast. Catch
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Speaker 5: Now about you.
Speaker 10: Let me drive?
Speaker 2: Oh no, no, no no, this is not a.
Speaker 4: Toy to honey.
Speaker 5: Please, how do the ride gravels?
Speaker 9: Let's wait, I want to drive.
Speaker 4: It's good question. This is the drive to the clothes
Speaker 4: plums for me?
Speaker 1: A thing?
Speaker 4: Well, dunla don on Bloomberg Radio.
Speaker 7: Good time, everybody.
Speaker 3: We got about eighteen minutes to go until we wrap
Speaker 3: up the trade on this Tuesday. Carol Master Tims Stanovik
Speaker 3: live in our Bloomberg Interactive Broker studio. Right now, we've
Speaker 3: got three hundred and seventeen names to the downside on
Speaker 3: the S and P five hundred, one hundred and eighty
Speaker 3: six actually gaining ground. But as you heard from Charlie
Speaker 3: and Bill Maloney, you are seeing stocks kind of stay
Speaker 3: down for most of the day, just bouncing around, bouncing
Speaker 3: around our worst level.
Speaker 2: Not every day it can be a record day.
Speaker 7: Nope, it cannot. Right, doesn't necessarily make.
Speaker 2: A market, doesn't, but it kind of felt like for
Speaker 2: the last week that's what we saw.
Speaker 7: I'm curious to see what Eric Clark has to say.
Speaker 3: He chief investment officer of Acuvas Global Advisors. They've got
Speaker 3: one point two billion in assets under management. He manages
Speaker 3: the Alpha Brands Consumption Leaders ETF began trading this year.
Speaker 3: It's up about two percent in the past month. Top
Speaker 3: holdings include Uber, Netflix, Amazon, Microsoft, TJX, Apple, and more.
Speaker 7: It sounds like sounds like my life.
Speaker 4: Love those names.
Speaker 2: Last time we saw Eric, he was working hard in
Speaker 2: Huntington Beach, California.
Speaker 7: Says, we were working hard with the future.
Speaker 2: Proof conference California, enjoying the sun, enjoying the beach. Yes,
Speaker 2: and talking all these companies.
Speaker 3: Anybody who's out there for you're going to do a
Speaker 3: financial conference, We love you, We love going, but do
Speaker 3: it on a beach.
Speaker 4: Now.
Speaker 2: He's working hard in San Diego. So it's all good.
Speaker 5: All right, Hey, listen, good to have you here.
Speaker 10: Eric.
Speaker 7: How are you.
Speaker 9: I'm great. I'm great. Well, at least we're not baking
Speaker 9: in the sun in Huntington.
Speaker 2: Oh, it's okay. Maybe thinking when January rolls around, we'll
Speaker 2: be looking longingly on that early satire.
Speaker 7: Day control rooms like, oh yeah, too bad. You were
Speaker 7: picking in the sun.
Speaker 3: Hey, talk to us about this market environment. Remind us too,
Speaker 3: Like you are known for investing in these well known brands.
Speaker 7: How much movement do you do?
Speaker 3: Remind us when it comes to buying, selling, or kind
Speaker 3: of parking it and let it just kind of ride
Speaker 3: for a while.
Speaker 9: Yeah, I mean, you know, the goal isn't to turn
Speaker 9: over the portfolio. But you know, since the pandemic, the
Speaker 9: consumer spending trends and how we've dealt with inflation, you know,
Speaker 9: it's been a unique environment. For the consumer trying to
Speaker 9: navigate all those things. So turnover has been a little
Speaker 9: bit higher because consumer spending in the trends have been
Speaker 9: a little bit more unique. Usually, you know, you want
Speaker 9: to have exposure to really important spending themes like apparel
Speaker 9: and travel and goods and the service economy. But it's just,
Speaker 9: you know, it's been a while wild ride since the
Speaker 9: pandemic and then with the tariffs and changing supply chains,
Speaker 9: so it's you know, the portfolio is very kind of
Speaker 9: what I consider to be very stable, predictable, good subscription
Speaker 9: revenue in important categories that we either need or we love,
Speaker 9: and so it's a little bit more concentrated than maybe normal.
Speaker 9: But you know, if we see the economy accelerating in
Speaker 9: twenty twenty six, we'll probably want to have a little
Speaker 9: bit more exposure to some areas of spending that we
Speaker 9: haven't wanted to have exposure to in twenty twenty five.
Speaker 3: Jamie Diamond said, consumers okay now, but recession.
Speaker 7: Could happen in twenty twenty six, And so.
Speaker 2: We talked about he said that earlier today, said the
Speaker 2: bank will be fine, but he would feel for customers.
Speaker 2: Of course, Yeah, it's not something he worries about right now,
Speaker 2: if that were to happen, and we would look at
Speaker 2: your portfolio and say, okay, there are some names in
Speaker 2: here that are wants, and there are some names in
Speaker 2: here that are needs. What are the needs and what
Speaker 2: are the wants?
Speaker 7: GJX is a necessity? Necessity?
Speaker 9: Yeah, Walmart, TJ, Max Costco. I mean, I would even
Speaker 9: argue Netflix and Spotify are pretty needs oriented. Nobody's going
Speaker 9: to get rid of those in a in an economic slowdown.
Speaker 9: If anything, you'll transfer your your pay over to the
Speaker 9: ad tier. So, you know, from a wants, I mean,
Speaker 9: we still gosh, we still want to go to concerts
Speaker 9: and live events the you know and live nation. Stock
Speaker 9: is pulled back. We've had a little bit of a
Speaker 9: pullback here, kind of a silent pullback with with tech
Speaker 9: kind of doing all the heavy lifting. There has certainly
Speaker 9: been some pullbacks since the middle of September. So you know,
Speaker 9: there's some good opportunities for people that aren't just looking
Speaker 9: at the index level, but I mean into It's another
Speaker 9: good example. I mean, we got to do our taxes.
Speaker 9: If you're a small business, you got to you know,
Speaker 9: continue to market and try to generate new clients and
Speaker 9: engage those clients. So there's a lot of great brands
Speaker 9: deploying AI that that are going to really see the
Speaker 9: benefit of that over the next couple of years. And
Speaker 9: everybody just wants semiconductors right now, I understand. But there's
Speaker 9: a lot to like about this market, and we just
Speaker 9: don't see a recession. It's always possible, we just don't
Speaker 9: see it. The labor market, obviously is the big the
Speaker 9: big worry for everybody.
Speaker 3: Well, is there anything that's a new ad or is
Speaker 3: there anything that you've already gotten rid of, like tell
Speaker 3: us about in terms of movement or adding to positions.
Speaker 7: It looks like you're pretty consistent.
Speaker 3: On some of these big names, the amount of exposure
Speaker 3: that you have.
Speaker 9: Yeah, we are. We actually have been out of the
Speaker 9: food names. The quick service Chipotle le down here, I
Speaker 9: think is pretty intriguing, you know, for a twelve month period.
Speaker 9: You know, maybe they have a little softness in the
Speaker 9: in the current quarter, but we still think this The
Speaker 9: stock has derated pretty pretty immensely. I'm even looking at Lulu.
Speaker 9: I don't want to get in there just yet, but
Speaker 9: I think there's some interesting retailers that have been left
Speaker 9: for dead that are really starting to look intriguing.
Speaker 2: And so if that, that's probably why isging to you?
Speaker 2: Why why is Lulu intriguing to you? Isn't it getting
Speaker 2: taken to lunch by your neighbor over there in San Diego?
Speaker 9: Viori Viory, Yeah, you know, it would not shock me
Speaker 9: if the CEO of Lulu goes. I think he's made
Speaker 9: a he's made some pretty bad missteps. And I says,
Speaker 9: it wouldn't shock me if an act, if an activist
Speaker 9: gets involved in there. So I I that's why I
Speaker 9: haven't you know, we haven't. We haven't bought it yet.
Speaker 9: We we owned it, gosh, you know, over a year
Speaker 9: ago at much higher prices. So the athleisure story is
Speaker 9: still important. Nike, I think is a little interesting. I
Speaker 9: mean there, you know, it's a slow but steady recovery,
Speaker 9: so that one's a little bit interesting on a dip
Speaker 9: after earnings. But you know, the service economy is just
Speaker 9: much more intriguing. It's it's it's where the demand is.
Speaker 9: I think booking is still interesting. Goods right now are
Speaker 9: just a bit of a struggle because we're just going
Speaker 9: to start feeling the impact of higher prices from tariffs,
Speaker 9: you know, heading into holiday shopping too. What have you
Speaker 9: gotten out of We've gotten out of some of the
Speaker 9: defensives like Coca Cola, Progressive insurance. It's just right now
Speaker 9: people just don't want defense in particular. They'll want it again.
Speaker 9: These are great, stable businesses, but we've just added more
Speaker 9: to the you know, to the more cyclical side of
Speaker 9: the ledger in favor of Staples. So we're we're still
Speaker 9: a little bit overweight Staples, but that's strictly through Walmart
Speaker 9: and Costco.
Speaker 5: You own app.
Speaker 3: Loven and that has certainly been in the news in
Speaker 3: the last twenty four hours.
Speaker 7: Down about fort down fourteen percent.
Speaker 3: Yesterday we see a bounce back city actually coming out
Speaker 3: and saying that they would be buyers on any weakness.
Speaker 3: They say the regulator is not officially accused app Lovin
Speaker 3: of wrongdoing. There's more in their call. So we are
Speaker 3: seeing app love and come back a little bit. Are
Speaker 3: you holding onto your position anything you're doing there?
Speaker 9: No, absolutely, I want If I could have bought it yesterday,
Speaker 9: that would have been that would have been ideal. We
Speaker 9: just didn't get a chance before the close. It's amazing
Speaker 9: how massive companies can move Witness Oracle today in a
Speaker 9: very short period of time. It just, you know, it
Speaker 9: reminds us that algorithms drive everything. But we still love
Speaker 9: app Lovin. Not a cheap stock but growing really well,
Speaker 9: generating a massive amount of free cash flow, super high
Speaker 9: you know, revenue to employee, driver of the digital advertising world.
Speaker 9: They're expanding outside of video gaming with this AI algorithm.
Speaker 2: So we love the stock and we just don't Eric. Sorry,
Speaker 2: we got to run big. Thank you, Rational Dynamic Brands.
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