1 00:00:05,800 --> 00:00:08,720 Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm Pim Fox. 2 00:00:08,760 --> 00:00:11,520 Speaker 1: Along with my co host Lisa Bramowitz. Each day we 3 00:00:11,640 --> 00:00:15,120 Speaker 1: bring you the most important, noteworthy, and useful interviews for 4 00:00:15,200 --> 00:00:17,840 Speaker 1: you and your money, whether you're at the grocery store 5 00:00:17,960 --> 00:00:20,720 Speaker 1: or the trading floor. Find the Bloomberg p m L 6 00:00:20,840 --> 00:00:32,360 Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. If 7 00:00:32,400 --> 00:00:34,920 Speaker 1: you are like me and all of my friends, we 8 00:00:35,000 --> 00:00:36,879 Speaker 1: have so much money we don't know what to do 9 00:00:36,960 --> 00:00:39,879 Speaker 1: with it. To help us out, We've brought in David Kudla. 10 00:00:39,960 --> 00:00:44,160 Speaker 1: He's the CEO and chief investment strategist at Mainstay Capital Management, 11 00:00:44,479 --> 00:00:47,720 Speaker 1: which manages more than two billion dollars in Michigan. Just 12 00:00:47,840 --> 00:00:53,320 Speaker 1: above the thumb of the MIT. Dave, Welcome to Bloomberg Radio. 13 00:00:53,360 --> 00:00:55,880 Speaker 1: I hear you have some interesting thoughts on large cap 14 00:00:56,000 --> 00:01:01,160 Speaker 1: versus small cap. I do uh good to speak with you. Kim. Yeah. 15 00:01:01,200 --> 00:01:05,960 Speaker 1: We we have seen a transition in the markets this year. 16 00:01:06,000 --> 00:01:13,679 Speaker 1: In we have um seen a increase in the interest 17 00:01:13,760 --> 00:01:17,760 Speaker 1: in small cap stocks for several reasons. UM One is 18 00:01:18,080 --> 00:01:21,640 Speaker 1: primarily we started out the year with low valuations of 19 00:01:21,720 --> 00:01:25,839 Speaker 1: small cap relative to large cap. We have the tax 20 00:01:25,880 --> 00:01:31,000 Speaker 1: reform that small caps benefit more versus large caps, and 21 00:01:31,040 --> 00:01:33,200 Speaker 1: what has been in the news a lot lately are 22 00:01:33,319 --> 00:01:39,039 Speaker 1: the tariffs that multinational conglomerates will be impaired by, both 23 00:01:39,080 --> 00:01:43,160 Speaker 1: in sales and their supply chain. Small caps tend to 24 00:01:43,200 --> 00:01:46,880 Speaker 1: be more domestically oriented and therefore stand to do better. 25 00:01:46,920 --> 00:01:50,760 Speaker 1: And we've seen that in the UH improvement the Russell 26 00:01:50,800 --> 00:01:53,200 Speaker 1: two thousand here over the past few months, and how 27 00:01:53,200 --> 00:01:57,640 Speaker 1: all small caps have done David uh pim fox here. Um, 28 00:01:57,760 --> 00:02:00,840 Speaker 1: you were speaking with Bob every my co host and 29 00:02:00,880 --> 00:02:04,840 Speaker 1: colleague during the broadcast, and I want to continue on 30 00:02:04,960 --> 00:02:07,960 Speaker 1: his theme of small caps, but ask you are they 31 00:02:08,000 --> 00:02:11,280 Speaker 1: already too expensive and what area of the small cap 32 00:02:11,360 --> 00:02:16,040 Speaker 1: space is worth looking at. We don't think they're too expensive. 33 00:02:16,080 --> 00:02:18,840 Speaker 1: We know that small caps typically trade to a premium 34 00:02:18,880 --> 00:02:21,680 Speaker 1: to large cap stocks, and there are just so many 35 00:02:21,680 --> 00:02:27,160 Speaker 1: fundamental factors that are UH supporting that underlying story for 36 00:02:27,360 --> 00:02:32,320 Speaker 1: small caps going forward. Uh. We like technology, technology sector, 37 00:02:32,520 --> 00:02:35,920 Speaker 1: and actually like technology sector both in large cap and 38 00:02:36,040 --> 00:02:40,440 Speaker 1: small cap and in consumer discretionary. You talked to the 39 00:02:40,480 --> 00:02:43,600 Speaker 1: consumer discretionary is that because you think people are going 40 00:02:43,680 --> 00:02:45,760 Speaker 1: to have more money left over after they pay for 41 00:02:45,840 --> 00:02:51,080 Speaker 1: higher gasoline prices. Good question. Yeah, we've got higher gasoline 42 00:02:51,120 --> 00:02:55,280 Speaker 1: prices and maybe some more price higher prices coming on, uh, 43 00:02:55,400 --> 00:02:59,920 Speaker 1: certain goods as tariffs impact the cost of the end product. 44 00:03:00,560 --> 00:03:03,840 Speaker 1: But the when we look at at the areas in 45 00:03:03,919 --> 00:03:08,240 Speaker 1: consumer discretionary, say retailing, and you know what we look 46 00:03:08,320 --> 00:03:12,880 Speaker 1: for going forward, uh, in this market environment, as this 47 00:03:12,919 --> 00:03:16,720 Speaker 1: bull market is aging becoming very long in the tooth 48 00:03:16,760 --> 00:03:21,480 Speaker 1: now entering its tenth here we look for opportunities where 49 00:03:22,600 --> 00:03:26,960 Speaker 1: we can find returns or find alpha that is not 50 00:03:27,080 --> 00:03:30,280 Speaker 1: dependent on the markets just simply going higher or index 51 00:03:30,360 --> 00:03:33,800 Speaker 1: funds simply going higher. So in retailing, one of the 52 00:03:34,200 --> 00:03:37,600 Speaker 1: areas is an E t F clicks c l I X, 53 00:03:38,040 --> 00:03:43,360 Speaker 1: which essentially is long e commerce in short brick and 54 00:03:43,360 --> 00:03:46,839 Speaker 1: mortar stores, a trend that we all see happening with 55 00:03:47,000 --> 00:03:51,040 Speaker 1: what Amazon is doing versus the local shopping mall or 56 00:03:51,320 --> 00:03:55,920 Speaker 1: big box retailer. It's no longer there when that's that 57 00:03:56,720 --> 00:03:58,840 Speaker 1: e t F, that is a long short e t F. 58 00:03:59,360 --> 00:04:01,840 Speaker 1: When E comm orse wins, it wins. When the big 59 00:04:02,200 --> 00:04:07,880 Speaker 1: the U, the big store, big box stores and shopping 60 00:04:07,880 --> 00:04:10,440 Speaker 1: mall's loose brick and mortar, it wins. That fund is 61 00:04:10,520 --> 00:04:15,520 Speaker 1: up about yere today, Dave, I think this moll market 62 00:04:15,560 --> 00:04:21,560 Speaker 1: is defying all actuarial tables. Um. The UH interest rates 63 00:04:21,600 --> 00:04:24,520 Speaker 1: are also a you know, front front burner right now. 64 00:04:24,600 --> 00:04:26,680 Speaker 1: Are there any funds out there that you would recommend 65 00:04:26,720 --> 00:04:32,200 Speaker 1: that would be advantageous in this in this environment. Well, yeah, 66 00:04:32,320 --> 00:04:38,080 Speaker 1: we actually have been short bond so UH and this 67 00:04:38,240 --> 00:04:43,040 Speaker 1: is this is an aggressive play, but d LBS, which 68 00:04:43,080 --> 00:04:47,920 Speaker 1: is an iPath US treasury long bond bear treasury exchange 69 00:04:47,920 --> 00:04:53,680 Speaker 1: traded notes. Basically we are betting on not to be unpatriotic, 70 00:04:54,360 --> 00:04:57,839 Speaker 1: but betting on a rise in interest rates. That funds 71 00:04:57,880 --> 00:05:00,279 Speaker 1: doing pretty well this year up about seventeen or ut. 72 00:05:00,640 --> 00:05:02,760 Speaker 1: It is a very volatile fund. There are ways you 73 00:05:02,760 --> 00:05:05,320 Speaker 1: can play. This is a more conservative manner. But essentially 74 00:05:05,320 --> 00:05:09,280 Speaker 1: our theme has been avoid interest rate sensitivity. Avoid is 75 00:05:09,320 --> 00:05:14,560 Speaker 1: strate sensitivity in your income investments and in other securities. UM. 76 00:05:14,640 --> 00:05:18,440 Speaker 1: So that takes us to UH mortgage backed securities which 77 00:05:18,480 --> 00:05:22,839 Speaker 1: do wellness environment, and floating rate funds which adjusts their 78 00:05:22,920 --> 00:05:26,120 Speaker 1: yields every thirty to ninety days, floating rate dead instruments 79 00:05:26,400 --> 00:05:29,120 Speaker 1: which do well in in a in a more conservative way, 80 00:05:29,400 --> 00:05:33,400 Speaker 1: but key to that is avoiding interest rate sensitive bonds 81 00:05:33,480 --> 00:05:36,920 Speaker 1: interest rate sensitive securities because we know what cycle the 82 00:05:37,000 --> 00:05:40,200 Speaker 1: FED is on. We know where they're headed, and we 83 00:05:40,279 --> 00:05:43,960 Speaker 1: want to avoid rising even though rates there will be volatility. 84 00:05:44,400 --> 00:05:46,440 Speaker 1: Rates are a little bit lower now than where they 85 00:05:46,440 --> 00:05:50,320 Speaker 1: were a couple of months ago, but the trend from 86 00:05:50,320 --> 00:05:54,520 Speaker 1: a ten year yield of one point three about two 87 00:05:54,600 --> 00:05:58,720 Speaker 1: years ago, we're more than double that now. I gotta 88 00:05:58,800 --> 00:06:01,839 Speaker 1: ask you about Tesla on a week where we learned 89 00:06:01,839 --> 00:06:04,919 Speaker 1: that they did produce that five thousand and thirty one 90 00:06:05,240 --> 00:06:09,520 Speaker 1: Model three sedans. What's your view on Tesla and how 91 00:06:09,560 --> 00:06:14,360 Speaker 1: are you implementing your strategy? You know, the interesting thing 92 00:06:14,400 --> 00:06:17,279 Speaker 1: about what just happened with Tesla makes you think about 93 00:06:17,279 --> 00:06:20,719 Speaker 1: a runner. I look at the traditional automakers is running 94 00:06:20,720 --> 00:06:23,560 Speaker 1: a marathon. They have a good plan, they have a 95 00:06:23,560 --> 00:06:26,880 Speaker 1: steady pace to win a long term race. And I 96 00:06:26,920 --> 00:06:31,200 Speaker 1: look at Tesla as a sprinter trying to run a marathon. 97 00:06:31,880 --> 00:06:34,080 Speaker 1: So at the end of each quarter they get into 98 00:06:34,080 --> 00:06:38,800 Speaker 1: this sprint mode to meet some arbitrary self imposed target 99 00:06:39,600 --> 00:06:42,159 Speaker 1: this last quarter of five thousand vehicles in a week, 100 00:06:42,680 --> 00:06:46,440 Speaker 1: they stage everything, get ready to go build five thousand 101 00:06:46,440 --> 00:06:50,080 Speaker 1: thirty one cars. Everybody claps their hands. Now they've got 102 00:06:50,080 --> 00:06:52,839 Speaker 1: to take a three day rest. That's no way to 103 00:06:52,839 --> 00:06:56,839 Speaker 1: win a marathon. And when we look at Tesla and 104 00:06:56,839 --> 00:06:59,600 Speaker 1: when we see the numbers in a month, we're going 105 00:06:59,640 --> 00:07:04,320 Speaker 1: to re lies how much uh they compromised quality, how 106 00:07:04,400 --> 00:07:07,599 Speaker 1: much they increased cost to build to make that build rate? 107 00:07:07,920 --> 00:07:11,120 Speaker 1: They made five thousand, They made five thousand vehicles one week, 108 00:07:11,440 --> 00:07:14,000 Speaker 1: So what what are the quality of those cars? What 109 00:07:14,080 --> 00:07:17,120 Speaker 1: has cost of making those cars? And when they get 110 00:07:17,120 --> 00:07:19,840 Speaker 1: to a sustainable rate, what is the competition coming in? 111 00:07:20,560 --> 00:07:23,680 Speaker 1: So I think for investors at this price, short it 112 00:07:24,840 --> 00:07:28,800 Speaker 1: and is that what you're doing? Absolutely is it expensive? 113 00:07:30,280 --> 00:07:34,400 Speaker 1: Is the is it expensive to short? It depends on 114 00:07:34,440 --> 00:07:37,280 Speaker 1: what your time horizon is. You know, if you look 115 00:07:37,320 --> 00:07:39,880 Speaker 1: at people want to look at it at Tesla as 116 00:07:39,880 --> 00:07:44,280 Speaker 1: a technology company, it is not. It is an automaker. Now, yeah, 117 00:07:44,320 --> 00:07:46,760 Speaker 1: they have some other technologies that don't really add much 118 00:07:46,760 --> 00:07:50,840 Speaker 1: to the bottom line, and and their solar business unit 119 00:07:50,880 --> 00:07:55,120 Speaker 1: has its own issues right now with the service center 120 00:07:55,240 --> 00:07:57,480 Speaker 1: or the centers have been closing around the country. But 121 00:07:57,520 --> 00:08:00,920 Speaker 1: if we look at their auto making business, they are 122 00:08:01,040 --> 00:08:06,120 Speaker 1: terrible at it. They are absolutely terrible at manufacturing automobiles. 123 00:08:06,560 --> 00:08:08,960 Speaker 1: And what we're going to see in a month is 124 00:08:09,000 --> 00:08:12,640 Speaker 1: how that's affect the financials. What the warranty costs are 125 00:08:12,680 --> 00:08:16,520 Speaker 1: that they're occurring. Ellen must talked about production. Hell, we 126 00:08:16,600 --> 00:08:18,760 Speaker 1: know now he's gonna David, We've got to leave it there. 127 00:08:19,000 --> 00:08:24,240 Speaker 1: David could La, Chief Executive in chief investment strategist Mainstake Capital, 128 00:08:24,760 --> 00:08:43,679 Speaker 1: David Understore Couldla at Twitter, China trade wars, the Chinese currency. 129 00:08:43,800 --> 00:08:47,040 Speaker 1: Here to tell us more, Bob Sinch, Global strategist, Amirs 130 00:08:47,120 --> 00:08:50,640 Speaker 1: Pierre Pont Securities, and of course joining me here in studios, 131 00:08:50,679 --> 00:08:53,480 Speaker 1: my co host and colleague Bob every all right, Bob, 132 00:08:53,559 --> 00:08:56,000 Speaker 1: since show. At least they give us some background on 133 00:08:56,160 --> 00:08:58,720 Speaker 1: what has been going on with the Chinese yuan versus 134 00:08:58,720 --> 00:09:04,120 Speaker 1: the US dollar and role in these trade negotiations. Well, 135 00:09:04,120 --> 00:09:06,720 Speaker 1: good morning, guys. It's a dollar. China is up about 136 00:09:06,760 --> 00:09:10,839 Speaker 1: four in the last three weeks, which you know doesn't 137 00:09:10,840 --> 00:09:14,040 Speaker 1: sound like a huge amount, but um it is one 138 00:09:14,040 --> 00:09:18,360 Speaker 1: of the worst performing UM currencies over that timeframe, UM, 139 00:09:18,400 --> 00:09:21,120 Speaker 1: at least amongst the uh you know, the thirty major 140 00:09:21,160 --> 00:09:25,240 Speaker 1: currencies in the world track by Bloomberg. And I think 141 00:09:25,280 --> 00:09:28,599 Speaker 1: most importantly for US is if you look at movements 142 00:09:28,640 --> 00:09:33,200 Speaker 1: in the dollar versus the Chinese currency and you line 143 00:09:33,240 --> 00:09:36,360 Speaker 1: that up with the movement of the dollar versus major currencies, 144 00:09:36,720 --> 00:09:39,559 Speaker 1: and there's actually been a pretty good correlation going back 145 00:09:39,640 --> 00:09:44,160 Speaker 1: to at least the beginning of two thousand sixteen. Now 146 00:09:44,160 --> 00:09:46,600 Speaker 1: why does this happen, Because the Chinese have been saying 147 00:09:46,600 --> 00:09:50,040 Speaker 1: they're targeting a basket of currencies. So when the dollar 148 00:09:50,120 --> 00:09:53,240 Speaker 1: goes up against the euro and the pound, in the 149 00:09:53,320 --> 00:09:55,760 Speaker 1: yen and the like, if if it if it doesn't 150 00:09:55,760 --> 00:09:59,600 Speaker 1: go up against the Chinese currency, that's actually an appreciation 151 00:10:00,760 --> 00:10:03,040 Speaker 1: of the Chinese currency, which is not what they want 152 00:10:03,040 --> 00:10:06,240 Speaker 1: to do. They want to stabilize it. So we've seen 153 00:10:06,280 --> 00:10:12,000 Speaker 1: this correlation, and interestingly, in the run up to the 154 00:10:12,000 --> 00:10:17,480 Speaker 1: summit with North Korea and discussions about tariffs, the movement 155 00:10:17,520 --> 00:10:21,440 Speaker 1: in in dollar versus the yuan was only about half 156 00:10:22,360 --> 00:10:26,200 Speaker 1: of what we might have expected a movement up given 157 00:10:26,240 --> 00:10:29,840 Speaker 1: the overall strength of the dollar. So in the early 158 00:10:29,880 --> 00:10:32,000 Speaker 1: part of this process, in the last couple of months, 159 00:10:32,040 --> 00:10:35,200 Speaker 1: it actually looked like the Chinese were exhibiting some restraint 160 00:10:35,920 --> 00:10:38,280 Speaker 1: on the amount of movement up in the dollar versus 161 00:10:38,320 --> 00:10:42,280 Speaker 1: the yu want um. Starting June eleven, right after the 162 00:10:42,320 --> 00:10:48,599 Speaker 1: President talked about finding another two billion of Chinese products um, 163 00:10:48,720 --> 00:10:52,120 Speaker 1: that's the three week period into which the dollar has 164 00:10:52,160 --> 00:10:55,320 Speaker 1: now moved up four percent against the Chinese currency. And 165 00:10:56,160 --> 00:10:59,120 Speaker 1: you know, I was born at night, but not last night. Um, 166 00:10:59,160 --> 00:11:02,239 Speaker 1: I find that a little coincidental and a little suspicious, 167 00:11:04,160 --> 00:11:09,000 Speaker 1: Bob staying on the on the uh yuan, I am 168 00:11:09,320 --> 00:11:12,200 Speaker 1: been reading about how they're they're seeking to stabilize it, 169 00:11:12,240 --> 00:11:14,600 Speaker 1: as you said, But if we are in a trade 170 00:11:14,640 --> 00:11:19,040 Speaker 1: war and they run out of American products to to 171 00:11:19,520 --> 00:11:23,400 Speaker 1: impose tariffs on, why wouldn't the Chinese want to continue 172 00:11:23,400 --> 00:11:27,720 Speaker 1: the devaluation of their currency? Well, well, I think they would. 173 00:11:27,720 --> 00:11:30,080 Speaker 1: I mean clearly they said that. You know, they have 174 00:11:30,200 --> 00:11:33,880 Speaker 1: many levers that they can they can pull, and I 175 00:11:33,920 --> 00:11:38,720 Speaker 1: think the two that went unmentioned were the currency um 176 00:11:39,000 --> 00:11:42,280 Speaker 1: and ownership of treasuries at a time when the treasury 177 00:11:42,320 --> 00:11:46,080 Speaker 1: is going to be issuing increasing amounts of debt. You know, 178 00:11:46,120 --> 00:11:49,000 Speaker 1: I would consider that an extreme option because it hurts 179 00:11:49,040 --> 00:11:52,600 Speaker 1: them as well. The reason I think they went the 180 00:11:52,679 --> 00:11:58,440 Speaker 1: currency route is because the impact of the tariffs is 181 00:11:58,440 --> 00:12:00,720 Speaker 1: going to impact you know, the act of the terroffs 182 00:12:00,760 --> 00:12:04,439 Speaker 1: falls on the corporate sector in China, where is there 183 00:12:04,440 --> 00:12:07,120 Speaker 1: a lot of debt, where is they're kind of achilles heel. 184 00:12:07,280 --> 00:12:10,400 Speaker 1: People believe it's a corporate bond market. So profits have 185 00:12:10,480 --> 00:12:13,880 Speaker 1: been pretty good. Obviously, they get squeezed in certain sectors 186 00:12:13,920 --> 00:12:17,640 Speaker 1: as a result of the tariffs. So I think from 187 00:12:17,679 --> 00:12:22,160 Speaker 1: a from a policy perspective, moving the currency lower actually 188 00:12:22,440 --> 00:12:29,520 Speaker 1: made sense domestically, inflation pressures aren't horrible, um and um 189 00:12:29,840 --> 00:12:33,200 Speaker 1: And as a result, I think that that you know, 190 00:12:33,280 --> 00:12:36,240 Speaker 1: it's a it's it's a sensible policy move in the 191 00:12:36,280 --> 00:12:39,080 Speaker 1: sense that it will help the corporate sector widened profit 192 00:12:39,160 --> 00:12:41,840 Speaker 1: margins at a time when that's an important thing for 193 00:12:41,880 --> 00:12:47,840 Speaker 1: them to be trying to accomplish. Bob Sinch the Chinese currency, 194 00:12:48,080 --> 00:12:51,560 Speaker 1: if it continues to demonstrate weakness, would that be a 195 00:12:51,600 --> 00:12:55,600 Speaker 1: trigger for equity sell off? And I mean you see 196 00:12:55,600 --> 00:12:59,520 Speaker 1: also stock selling off in China. Yeah, it has in 197 00:12:59,640 --> 00:13:04,000 Speaker 1: the past, um and And certainly you know the spasms 198 00:13:04,040 --> 00:13:06,280 Speaker 1: a few years ago associated with fears of a quote 199 00:13:06,320 --> 00:13:13,000 Speaker 1: unquote China devaluation. We're pretty severe um at this juncture. 200 00:13:13,760 --> 00:13:17,080 Speaker 1: You know, you know what what matters anymore? You know, 201 00:13:17,120 --> 00:13:19,520 Speaker 1: we've had we've had so many threats of tariffs and 202 00:13:19,600 --> 00:13:23,679 Speaker 1: counter tariffs and trade barriers and restrictions and you know, 203 00:13:23,760 --> 00:13:26,440 Speaker 1: tearing up treaties that I think the markets have become 204 00:13:26,440 --> 00:13:30,280 Speaker 1: a little bit more immune um to these announcements, in 205 00:13:30,320 --> 00:13:34,040 Speaker 1: these developments, and certainly, if you know, I would have 206 00:13:34,080 --> 00:13:36,040 Speaker 1: thought so. But given the movement we've had in the 207 00:13:36,080 --> 00:13:39,680 Speaker 1: last three weeks and a lack of response, I'm not 208 00:13:39,960 --> 00:13:44,400 Speaker 1: sure um that this alone will trigger much of a 209 00:13:44,520 --> 00:13:48,560 Speaker 1: risk aversion move um in markets. And you know, again, 210 00:13:48,600 --> 00:13:52,600 Speaker 1: I think part of this maybe to help Chinese companies 211 00:13:52,640 --> 00:13:56,840 Speaker 1: and and potentially help their um, you know, their their 212 00:13:56,840 --> 00:13:59,400 Speaker 1: equity market. I mean, this is a form of monetary 213 00:13:59,440 --> 00:14:02,880 Speaker 1: easing along with the recent cuts in the reserve requirement 214 00:14:02,960 --> 00:14:06,200 Speaker 1: ratios in China. Thank you very much for being with us. 215 00:14:06,200 --> 00:14:10,640 Speaker 1: Bob Sinch, Global Strategist amerst pure Pont Securities, best wishes 216 00:14:10,720 --> 00:14:15,800 Speaker 1: for a wonderful July four holiday. We appreciated your appearance 217 00:14:15,800 --> 00:14:32,400 Speaker 1: here on Bloomberg. Hey everybody, I am not Lisa a Brahma. 218 00:14:32,520 --> 00:14:34,600 Speaker 1: It's I'm Bobby every and I'm sitting in for Lisa 219 00:14:34,680 --> 00:14:39,360 Speaker 1: with Pim Fox. You're listening to Bloomberg Radio. It's really 220 00:14:39,360 --> 00:14:42,680 Speaker 1: really hot at Bloomberg World headquarters today. It's over a 221 00:14:42,760 --> 00:14:47,040 Speaker 1: gazillion degrees and Alexa turn on the air conditioner. Brian 222 00:14:47,080 --> 00:14:49,320 Speaker 1: Manning is here to talk about the smart home he's 223 00:14:49,400 --> 00:14:53,800 Speaker 1: president and co founder of Centric Digital, And Brian, what 224 00:14:53,920 --> 00:14:56,720 Speaker 1: are some of that you were just saying offline here 225 00:14:57,120 --> 00:15:00,880 Speaker 1: that companies are doing better? Who that that a stake 226 00:15:00,960 --> 00:15:03,480 Speaker 1: in the in the online world? What are what are 227 00:15:03,520 --> 00:15:05,720 Speaker 1: some of the companies that are the leaders in this? Sure? 228 00:15:05,840 --> 00:15:08,000 Speaker 1: And and the way we get to that is, you know, 229 00:15:08,000 --> 00:15:11,960 Speaker 1: our company, Centric Digital measures digital intelligence companies. So we 230 00:15:12,040 --> 00:15:14,800 Speaker 1: look at both the companies that started only as digital 231 00:15:14,840 --> 00:15:17,120 Speaker 1: as well as the ones that are entering the space. 232 00:15:17,760 --> 00:15:22,160 Speaker 1: And you know, we have a comprehensive practice that looks 233 00:15:22,160 --> 00:15:25,360 Speaker 1: at all the best practices within digital and assess switch 234 00:15:25,400 --> 00:15:27,720 Speaker 1: companies are doing it well and not so. Smart homes 235 00:15:27,720 --> 00:15:30,640 Speaker 1: certainly a major theme, but there are many others going 236 00:15:30,680 --> 00:15:35,280 Speaker 1: on right now as well throughout technology, AI, cloud computing, robotics. 237 00:15:35,320 --> 00:15:38,080 Speaker 1: These are all new technologies that are going to just 238 00:15:38,240 --> 00:15:41,200 Speaker 1: change the face of a lot of traditional industries. Tell 239 00:15:41,320 --> 00:15:44,160 Speaker 1: us about the connected home and the Internet of things 240 00:15:44,200 --> 00:15:47,440 Speaker 1: and how you believe that is going to play out? Sure, Um, 241 00:15:47,520 --> 00:15:50,400 Speaker 1: you know already, Uh, there's a lot of companies that 242 00:15:50,440 --> 00:15:53,960 Speaker 1: have automated you know, controlling your lights, controlling your climate 243 00:15:54,000 --> 00:15:57,280 Speaker 1: in your home. Uh, your kitchen impliances are now starting 244 00:15:57,280 --> 00:16:00,000 Speaker 1: to automate some of the tasks that you would otherwise 245 00:16:00,040 --> 00:16:02,640 Speaker 1: is do manually. There's nothing worse than leaving your home 246 00:16:02,680 --> 00:16:05,680 Speaker 1: and uh wondering if you left your lights on, or 247 00:16:05,720 --> 00:16:08,120 Speaker 1: wondering if the air conditioners on or on a hot 248 00:16:08,160 --> 00:16:10,800 Speaker 1: daylight today, not getting not having it on by the 249 00:16:10,840 --> 00:16:15,680 Speaker 1: time you get home. So those types of features, traditional 250 00:16:16,040 --> 00:16:18,600 Speaker 1: appliances and and things that are in your home are 251 00:16:18,640 --> 00:16:21,680 Speaker 1: now starting to connect to the internet even connect to 252 00:16:21,720 --> 00:16:24,640 Speaker 1: each other and talk to each other and control control 253 00:16:24,680 --> 00:16:28,120 Speaker 1: different Just a question that are those kinds of connections 254 00:16:28,120 --> 00:16:31,240 Speaker 1: Are they going to cost more money? Uh? So far. No, 255 00:16:31,520 --> 00:16:34,640 Speaker 1: that the the appliances and and so on themselves, they 256 00:16:34,680 --> 00:16:37,200 Speaker 1: may be priced a little bit differently with those capabilities. 257 00:16:37,320 --> 00:16:41,560 Speaker 1: Usually it's higher end appliances that will have WiFi or 258 00:16:41,560 --> 00:16:44,840 Speaker 1: Internet of Things connection UM. And there are lots of 259 00:16:44,840 --> 00:16:48,040 Speaker 1: free services like UH I, F T, T T out 260 00:16:48,080 --> 00:16:51,760 Speaker 1: there that you can connect these devices to actually interoperate 261 00:16:51,800 --> 00:16:55,800 Speaker 1: with each other. You were saying that the uh, there's 262 00:16:55,800 --> 00:16:57,840 Speaker 1: nothing worse than not having the air conditioning on when 263 00:16:57,880 --> 00:17:00,200 Speaker 1: you come home, But there to me, there is You know, 264 00:17:00,520 --> 00:17:04,040 Speaker 1: regular listeners of Bloomberg Radio know what a pessimist I am. 265 00:17:04,080 --> 00:17:07,280 Speaker 1: What are some of the security issues and how is 266 00:17:07,280 --> 00:17:11,640 Speaker 1: the industry addressing them. Sure, with any new technologies, there's 267 00:17:11,640 --> 00:17:14,200 Speaker 1: always going to be security concerns and things that maybe 268 00:17:14,200 --> 00:17:18,080 Speaker 1: the technology builders haven't thought of and and ultimately they 269 00:17:18,119 --> 00:17:20,439 Speaker 1: get to these. I mean, we just saw recently issues 270 00:17:20,440 --> 00:17:25,640 Speaker 1: with Facebook with its data situation in Cambridge Analytica. Um. 271 00:17:25,920 --> 00:17:29,600 Speaker 1: You know, I think as things come up, the companies 272 00:17:29,640 --> 00:17:31,760 Speaker 1: figure out the blocks. It's the same thing that happened 273 00:17:31,760 --> 00:17:34,280 Speaker 1: with email where people were getting spoofed and spam and 274 00:17:34,680 --> 00:17:37,760 Speaker 1: you know, companies that provide those services have built more 275 00:17:37,880 --> 00:17:40,919 Speaker 1: infrastructure in there to help protect consumers, but some of 276 00:17:40,960 --> 00:17:43,160 Speaker 1: it also is on the consumer themselves to learn how 277 00:17:43,160 --> 00:17:45,800 Speaker 1: to protect themselves. But maybe you can reassure me about 278 00:17:45,880 --> 00:17:47,960 Speaker 1: you know, my worst case scenario is the grid, is 279 00:17:48,000 --> 00:17:53,000 Speaker 1: the electrical electricity grid is hacked. What kinds of safeguards 280 00:17:53,040 --> 00:17:56,200 Speaker 1: are out there, and that's bigger than just the devices 281 00:17:56,200 --> 00:17:59,280 Speaker 1: in your home that that's a challenge with our infrastructure 282 00:17:59,560 --> 00:18:02,280 Speaker 1: and the entry in general. Um. You know, there are 283 00:18:02,280 --> 00:18:03,960 Speaker 1: a lot of people in different parts of the country 284 00:18:03,960 --> 00:18:06,959 Speaker 1: moving off the grid to solar powered and and you know, 285 00:18:07,080 --> 00:18:09,560 Speaker 1: their own power source. So that's one way that they 286 00:18:09,560 --> 00:18:13,520 Speaker 1: can protect themselves. Uh, certainly those technologies have the ability 287 00:18:13,560 --> 00:18:16,720 Speaker 1: to turn themselves off of the Internet if they're self contained. 288 00:18:17,080 --> 00:18:19,800 Speaker 1: But over time, Um, you know, there's a huge business 289 00:18:19,800 --> 00:18:22,680 Speaker 1: out there around cybersecurity and all of that. For all 290 00:18:22,680 --> 00:18:25,480 Speaker 1: of these types of companies, Who do you believe is 291 00:18:25,520 --> 00:18:28,040 Speaker 1: doing the best job right now of integrating all of 292 00:18:28,080 --> 00:18:31,280 Speaker 1: these technologies and making them available to consumers. Am I 293 00:18:31,320 --> 00:18:34,760 Speaker 1: going to say Amazon again? Well, Amazon was certainly first 294 00:18:34,800 --> 00:18:36,560 Speaker 1: to the market, as as they are in a lot 295 00:18:36,600 --> 00:18:38,919 Speaker 1: of markets. But I have to say, um, you know, 296 00:18:38,960 --> 00:18:42,199 Speaker 1: we see Google as being a fierce, you know, up 297 00:18:42,200 --> 00:18:45,880 Speaker 1: and coming competitor there Google Home Mini product um as 298 00:18:45,920 --> 00:18:49,200 Speaker 1: well as the other offshoots of that product. It's very strong. 299 00:18:49,240 --> 00:18:52,000 Speaker 1: The way it converses with you is much more sophisticated 300 00:18:52,000 --> 00:18:55,399 Speaker 1: than I think alexas. Apple is also getting into the 301 00:18:55,400 --> 00:18:58,320 Speaker 1: space again, always very late, but trying to get into 302 00:18:58,359 --> 00:19:00,280 Speaker 1: it in a very high end, slick way. So the 303 00:19:00,320 --> 00:19:03,760 Speaker 1: home Pod is a very sophisticated speaker which also has 304 00:19:03,840 --> 00:19:07,560 Speaker 1: voice activation and so on, and those are usually the 305 00:19:07,600 --> 00:19:11,639 Speaker 1: main controlling devices. Um. But lots of companies are in 306 00:19:11,640 --> 00:19:14,359 Speaker 1: the space. Lutron is certainly a leader in the lighting 307 00:19:14,800 --> 00:19:18,439 Speaker 1: uh nest, which is now bought by Google, uh as 308 00:19:18,480 --> 00:19:21,639 Speaker 1: a leader. It's started out just in the CEO two 309 00:19:21,680 --> 00:19:25,160 Speaker 1: and and smoke alarm, but it's gotten into thermostats. It's 310 00:19:25,160 --> 00:19:28,000 Speaker 1: got uh, you know, I would say, a very high 311 00:19:28,080 --> 00:19:31,719 Speaker 1: end competing product with the home security devices that are 312 00:19:31,760 --> 00:19:35,359 Speaker 1: out there, everything from locks, window protectors. You know it 313 00:19:35,560 --> 00:19:39,280 Speaker 1: was your door opened, alarms and so on. Well, you 314 00:19:39,280 --> 00:19:42,000 Speaker 1: already know that Ciri can tell me what the World 315 00:19:42,040 --> 00:19:45,040 Speaker 1: Cup match score is, and we already know that Alexa 316 00:19:45,119 --> 00:19:48,440 Speaker 1: can play cool jazz. What are some of the other 317 00:19:48,520 --> 00:19:50,840 Speaker 1: quirky things that are that are new to this market 318 00:19:50,880 --> 00:19:54,240 Speaker 1: that you could that you could use, uh that maybe 319 00:19:54,240 --> 00:19:56,960 Speaker 1: you have been is publicized as much, you know, I 320 00:19:57,000 --> 00:20:00,399 Speaker 1: mean voice control of your home appliance. This is one 321 00:20:00,440 --> 00:20:02,040 Speaker 1: of the main ways that I use it. I mean 322 00:20:02,080 --> 00:20:05,240 Speaker 1: I rarely ever touch a switch. I'm always talking to 323 00:20:06,040 --> 00:20:08,360 Speaker 1: Google and telling it to turn off the lights, turn 324 00:20:08,400 --> 00:20:11,880 Speaker 1: on the lights, and so on. Um. You know, so, 325 00:20:11,880 --> 00:20:14,640 Speaker 1: so any of those appliances that we talked about, an 326 00:20:14,640 --> 00:20:18,480 Speaker 1: effect can be connected to Google. It's great for reminders, 327 00:20:18,480 --> 00:20:20,840 Speaker 1: It's great for hearing what your calendar is. It's great 328 00:20:20,880 --> 00:20:23,960 Speaker 1: for calling up the day's events or or the weather 329 00:20:24,359 --> 00:20:26,879 Speaker 1: or whatever else. I never set an alarm anymore. I 330 00:20:26,960 --> 00:20:28,920 Speaker 1: just tell Google what time I need to wake up. 331 00:20:29,320 --> 00:20:32,720 Speaker 1: And and some of these devices are getting very intelligent 332 00:20:32,800 --> 00:20:35,560 Speaker 1: to monitor the way you behave in act and I 333 00:20:35,560 --> 00:20:39,639 Speaker 1: could see that AI UM artificial intelligence will start to 334 00:20:39,720 --> 00:20:42,600 Speaker 1: become more and more part of this, where you won't 335 00:20:42,640 --> 00:20:44,560 Speaker 1: have to tell it what to do. It will now 336 00:20:44,960 --> 00:20:47,760 Speaker 1: it'll start to trace your patterns, what happens when your 337 00:20:47,760 --> 00:20:52,720 Speaker 1: WiFi goes down. That that's definitely a challenge. Some devices, 338 00:20:52,760 --> 00:20:55,840 Speaker 1: including like the door locks, are building in a cellular 339 00:20:55,880 --> 00:20:58,560 Speaker 1: component as well as a backup. You have to pay 340 00:20:58,600 --> 00:21:01,479 Speaker 1: a subscription for that you you generally would and so 341 00:21:01,640 --> 00:21:03,679 Speaker 1: I think people that more and more depend on this 342 00:21:03,760 --> 00:21:06,600 Speaker 1: are going to likely have a redundant source a WiFi, 343 00:21:06,800 --> 00:21:11,160 Speaker 1: just like any other company would have multiple lines for Internet. 344 00:21:11,520 --> 00:21:13,520 Speaker 1: Means you're gonna have to have a redundant source of 345 00:21:13,560 --> 00:21:17,520 Speaker 1: money too, it seems potentially. But this cost savings is 346 00:21:17,520 --> 00:21:20,720 Speaker 1: there as well. You're saving electricity, um, you know, you're 347 00:21:20,800 --> 00:21:23,840 Speaker 1: you're giving yourself back time from lots of little tasks 348 00:21:23,920 --> 00:21:26,720 Speaker 1: that you may provide. So hopefully there's an offset and 349 00:21:26,760 --> 00:21:29,520 Speaker 1: the benefits that you got from this. What do you think, Bob, 350 00:21:29,600 --> 00:21:31,480 Speaker 1: is this is this going to save you time? Because 351 00:21:31,480 --> 00:21:33,560 Speaker 1: I have a feeling you know you're gonna look and 352 00:21:33,600 --> 00:21:36,119 Speaker 1: spend all that time trying to figure out how do 353 00:21:36,200 --> 00:21:38,720 Speaker 1: I how do I get the WiFi back? I just 354 00:21:38,720 --> 00:21:41,119 Speaker 1: think one for I, I just think this is the 355 00:21:41,160 --> 00:21:43,720 Speaker 1: first step towards the robots taking over PIM. I mean 356 00:21:44,000 --> 00:21:47,480 Speaker 1: I might already dreamist. Yeah, but you know I still 357 00:21:47,480 --> 00:21:49,560 Speaker 1: have to unlock my door and put my toast in 358 00:21:49,600 --> 00:21:53,560 Speaker 1: the toaster so I have some function in life, you know, 359 00:21:53,680 --> 00:21:57,119 Speaker 1: I have something to live. Yeah, we like that. Thanks 360 00:21:57,200 --> 00:22:02,800 Speaker 1: very much. Thanks Brian mckenning, President, co founder Centric Digital, 361 00:22:03,520 --> 00:22:08,359 Speaker 1: and our toastmaster. Here, Bob Every, you're listening to Bloomberg. 362 00:22:21,920 --> 00:22:25,400 Speaker 1: I'm PIM Fox with Bob Every. He is my colleague 363 00:22:25,440 --> 00:22:27,880 Speaker 1: and co host for the program of filling in for 364 00:22:28,040 --> 00:22:32,320 Speaker 1: Lisa Bramwitz, who is on a well deserved holiday vacation, well, 365 00:22:32,480 --> 00:22:36,600 Speaker 1: no vacation perhaps for those executives a Comcast looking to 366 00:22:37,000 --> 00:22:41,760 Speaker 1: better a bid by Disney for Cury Fox Entertainment assets. 367 00:22:42,359 --> 00:22:45,760 Speaker 1: Disney has a more than seventy one billion dollar offer 368 00:22:45,840 --> 00:22:49,040 Speaker 1: on the table. Here to tell us more about these 369 00:22:49,080 --> 00:22:53,000 Speaker 1: negotiations and the battle for the assets, is Guita Ranganathan, 370 00:22:53,280 --> 00:22:57,880 Speaker 1: our technology and media analyst for Bloomberg Intelligence, and you 371 00:22:57,920 --> 00:23:03,840 Speaker 1: can follow Geta on Twitter at Guita rankan number one. 372 00:23:04,240 --> 00:23:07,320 Speaker 1: Guita tell us about the latest in this battle for 373 00:23:07,359 --> 00:23:12,480 Speaker 1: the assets. What is Comcast facing? Yes? Umm, thank you. 374 00:23:12,560 --> 00:23:15,040 Speaker 1: So this is really turning into a do or die 375 00:23:15,040 --> 00:23:19,399 Speaker 1: battle for both Comcast and Disney as it stands right now, 376 00:23:19,480 --> 00:23:23,480 Speaker 1: Disney has a thirty eight dollar per share offer on 377 00:23:23,520 --> 00:23:29,080 Speaker 1: the table that bested Comcast thirty five dollar offer, and 378 00:23:29,119 --> 00:23:32,280 Speaker 1: it's actually thirty yes, it's it's also thirty five percent 379 00:23:32,400 --> 00:23:35,360 Speaker 1: higher than Disney's own offer, which was about which came 380 00:23:35,359 --> 00:23:38,240 Speaker 1: in at about twenty eight dollars six months ago. UM. 381 00:23:38,320 --> 00:23:43,000 Speaker 1: So they kind of tried to really preempt the Comcast bid. 382 00:23:43,600 --> 00:23:46,840 Speaker 1: But I don't think it's a done deal just yet. UM. 383 00:23:46,960 --> 00:23:49,320 Speaker 1: We are going to see a lot more action here. 384 00:23:50,040 --> 00:23:52,359 Speaker 1: The market believes that Comcast is going to come in 385 00:23:52,359 --> 00:23:56,840 Speaker 1: with a significantly higher bid, possibly anywhere from about forty 386 00:23:56,880 --> 00:24:00,360 Speaker 1: five to fifty dollars per share. UM So that's kind 387 00:24:00,359 --> 00:24:02,600 Speaker 1: of where it stands right now. UM. There is a 388 00:24:02,640 --> 00:24:07,760 Speaker 1: deadline though, because um Fox stockholders are supposed to vote 389 00:24:07,800 --> 00:24:12,919 Speaker 1: on this deal on July. So we're expecting some action 390 00:24:13,000 --> 00:24:19,000 Speaker 1: from Comcast before that date. I think it, Um, it's 391 00:24:19,040 --> 00:24:21,520 Speaker 1: good to to just note that it's not all of Fox. 392 00:24:21,560 --> 00:24:24,920 Speaker 1: It's Fox assets, the film and TV studios, the cable networks, 393 00:24:25,400 --> 00:24:30,119 Speaker 1: pay TV operations, Sky and Star India. Yes, Gita, is 394 00:24:30,119 --> 00:24:35,040 Speaker 1: there any possible future here where they end up carving 395 00:24:35,119 --> 00:24:39,560 Speaker 1: up the assets and maybe splitting the the splitting the baby. Yeah, 396 00:24:39,560 --> 00:24:42,679 Speaker 1: so that's actually a really interesting question. So Bob iger 397 00:24:42,920 --> 00:24:45,800 Speaker 1: on Um on the most recent MM and A call 398 00:24:45,960 --> 00:24:49,320 Speaker 1: was asked that very same question, UM, and what he said, 399 00:24:49,359 --> 00:24:52,560 Speaker 1: from Disney's perspective is no, we are not interested in 400 00:24:52,600 --> 00:24:55,840 Speaker 1: any kind of a split, but just kind of looking 401 00:24:55,960 --> 00:25:00,959 Speaker 1: at the massive price UM that that these assets are 402 00:25:00,960 --> 00:25:03,879 Speaker 1: going to be commanding. I mean, it certainly makes sense 403 00:25:03,960 --> 00:25:07,119 Speaker 1: for Comcast, I think UM to examine kind of a 404 00:25:07,200 --> 00:25:10,639 Speaker 1: carve out of the assets. Um. They really are more 405 00:25:10,680 --> 00:25:13,040 Speaker 1: focused if you just look at it from Comcast perspective, 406 00:25:13,080 --> 00:25:15,879 Speaker 1: they really are more focused on the international portion of 407 00:25:15,960 --> 00:25:20,960 Speaker 1: Foxes operations. So really what Comcast is going after is Sky, um, 408 00:25:20,960 --> 00:25:24,800 Speaker 1: the satellite operations in the UK and some parts of Europe, 409 00:25:25,080 --> 00:25:27,800 Speaker 1: and also the Star network in India which has you know, 410 00:25:27,880 --> 00:25:31,600 Speaker 1: millions of subscribers. It's a very very popular UM TV 411 00:25:31,720 --> 00:25:35,240 Speaker 1: service there. UM, so that's kind of really what Comcast 412 00:25:35,320 --> 00:25:38,399 Speaker 1: is going after, not so much the studio, not so 413 00:25:38,520 --> 00:25:41,560 Speaker 1: much the TV networks. Disney, on the other hand, is 414 00:25:41,600 --> 00:25:45,399 Speaker 1: really focused on getting content for UM, its streaming service, 415 00:25:45,440 --> 00:25:47,720 Speaker 1: which it hopes to launch next year, and so the 416 00:25:47,840 --> 00:25:50,639 Speaker 1: studio is extremely important for Disney, and so it kind 417 00:25:50,680 --> 00:25:53,000 Speaker 1: of makes sense in a way if you know, both 418 00:25:53,080 --> 00:25:56,919 Speaker 1: of them split assets. What about the possibility that Comcast 419 00:25:56,960 --> 00:26:01,000 Speaker 1: finds a partner, So there were some words about this 420 00:26:01,320 --> 00:26:04,240 Speaker 1: UM A few days ago there was a there was 421 00:26:04,280 --> 00:26:07,879 Speaker 1: a report in the Journal suggesting that UM Comcast is 422 00:26:07,880 --> 00:26:11,160 Speaker 1: actually exploring tie ups with private equity firms, with other 423 00:26:11,200 --> 00:26:15,080 Speaker 1: strategic partners so that they can come in submit UM 424 00:26:15,160 --> 00:26:18,640 Speaker 1: a knockout bit of possibly a fifty dollars or slightly 425 00:26:18,720 --> 00:26:22,200 Speaker 1: lower UM you know, something that Disney would find very 426 00:26:22,280 --> 00:26:24,520 Speaker 1: very hard to respond to. And in that case too, 427 00:26:25,119 --> 00:26:27,760 Speaker 1: UM Comcast might very well be looking to kind of 428 00:26:28,160 --> 00:26:31,200 Speaker 1: split spin out a few of the assets, maybe UM 429 00:26:31,359 --> 00:26:33,880 Speaker 1: spin out some of the domestic operations, hand that over 430 00:26:33,920 --> 00:26:37,200 Speaker 1: to the strategic partner, and then go after possibly Sky 431 00:26:37,240 --> 00:26:41,800 Speaker 1: and star Key too quickly. My impression is that Murdoch. 432 00:26:42,000 --> 00:26:46,680 Speaker 1: Rupert Murdoch just likes Disney more. Could he just convince 433 00:26:46,760 --> 00:26:51,720 Speaker 1: the other investors of that? So, yes, you're absolutely right. UM. 434 00:26:51,760 --> 00:26:54,680 Speaker 1: So all along, UM, and this saga has now been 435 00:26:54,720 --> 00:26:57,440 Speaker 1: going on for about six seven months. All along the 436 00:26:57,520 --> 00:27:01,400 Speaker 1: Murdochs have really preferred to do a deal with Disney 437 00:27:01,440 --> 00:27:04,760 Speaker 1: with Bob Eiger. Um. They you know, their ultimate goal 438 00:27:04,920 --> 00:27:09,320 Speaker 1: is to become a long term shareholder in Disney. UM. 439 00:27:09,359 --> 00:27:11,600 Speaker 1: And also there's there's the other question of, you know, 440 00:27:11,640 --> 00:27:14,119 Speaker 1: the efficiency from a tax perspective, just because of a 441 00:27:14,160 --> 00:27:17,600 Speaker 1: stock deal with Disney with Comcasts an all cash deal, 442 00:27:17,680 --> 00:27:21,160 Speaker 1: and you know there's going to be a significant tax burden. UM. 443 00:27:21,560 --> 00:27:24,280 Speaker 1: Fox just a few days ago also highlighted, you know, 444 00:27:24,359 --> 00:27:27,120 Speaker 1: some regulatory difficulties which they think will be much more 445 00:27:27,200 --> 00:27:31,040 Speaker 1: pronounced UM with Comcasts. They actually already have regulatory approval 446 00:27:31,080 --> 00:27:34,840 Speaker 1: for the Disney Disney deal. UM. So it's going to 447 00:27:34,920 --> 00:27:38,959 Speaker 1: be I mean, UM, the MURDOCKX of course preferred Disney. UM. 448 00:27:39,000 --> 00:27:42,000 Speaker 1: There's no question of doubt about that. But if you 449 00:27:42,680 --> 00:27:45,639 Speaker 1: are just following other news reports, we've seen multiple Fox 450 00:27:45,680 --> 00:27:48,439 Speaker 1: investors kind of come in and say, um that they 451 00:27:48,480 --> 00:27:51,600 Speaker 1: really want UM Fox to kind of listen to what 452 00:27:51,920 --> 00:27:54,760 Speaker 1: Comcast is going to submit. Um, they obviously want the 453 00:27:54,800 --> 00:27:58,199 Speaker 1: best deal possible, so the highest price possible. Thank you 454 00:27:58,280 --> 00:28:01,600 Speaker 1: very much for being with us. Guitar Ranganathan, our technology 455 00:28:01,640 --> 00:28:09,240 Speaker 1: and media analysts for Bloomberg Intelligence. Thanks for listening to 456 00:28:09,240 --> 00:28:12,159 Speaker 1: the Bloomberg P and L podcast. You can subscribe and 457 00:28:12,200 --> 00:28:16,200 Speaker 1: listen to interviews at Apple Podcasts, SoundCloud, or whatever podcast 458 00:28:16,200 --> 00:28:19,680 Speaker 1: platform you prefer. I'm pim Fox. I'm on Twitter at 459 00:28:19,840 --> 00:28:23,240 Speaker 1: pim Fox. I'm on Twitter at Lisa Abramo wits one. 460 00:28:23,480 --> 00:28:26,159 Speaker 1: Before the podcast, you can always catch us worldwide on 461 00:28:26,200 --> 00:28:27,040 Speaker 1: Bloomberg Radio