WEBVTT - Auto Workers Strike; Media Mogul Makes Bid for Disney's ABC 0:00:02.480 --> 0:00:03.000 Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:07.760 --> 0:00:15.960 A strike is on in the auto industry. At midnight 0:00:16.079 --> 0:00:19.080 last night, members of the United Autoworkers Union walked out 0:00:19.079 --> 0:00:22.320 of Select plants run by Ford, General Motors and Stillantis 0:00:22.360 --> 0:00:26.279 after their contract deadline passed. Union president Sean Fain says 0:00:26.320 --> 0:00:29.320 it's the first time they're striking all three Detroit automakers 0:00:29.360 --> 0:00:30.200 at the same time. 0:00:30.720 --> 0:00:34.760 This strategy will keep the companies guessing. It will give 0:00:34.800 --> 0:00:40.519 our national negotiators maximum leverage and flexibility and bargaining, and 0:00:40.600 --> 0:00:42.320 if we need to go all out. 0:00:42.600 --> 0:00:45.960 We will UAW. Sean Fain says they'll add more strike 0:00:46.040 --> 0:00:49.960 locations depending on how bargaining goes. General Motors CEO Mary 0:00:50.000 --> 0:00:52.640 Bara posted an online video to the workers saying she 0:00:52.760 --> 0:00:54.960 is still willing to negotiate in good faith. 0:00:55.480 --> 0:00:58.240 Nobody wins in a strike. We all know that from 0:00:58.240 --> 0:01:04.000 heart experience, strike negatively impacts lives and communities. We have 0:01:04.080 --> 0:01:07.240 presented a historic offer that rewards you for being key 0:01:07.280 --> 0:01:10.440 to our success and a competitive advantage for GM. 0:01:10.440 --> 0:01:13.760 And GM's Mary Barra says the automaker's non union competition 0:01:13.840 --> 0:01:16.960 will waste little time taking advantage of the workstoppage. 0:01:17.200 --> 0:01:19.640 Well, Nathan, the walkout at all three automakers at the 0:01:19.640 --> 0:01:22.720 same time as a new strategy by the UAW. We 0:01:22.800 --> 0:01:25.640 get more from Bloomberg Auto reporter Craig Trudell. 0:01:26.360 --> 0:01:29.440 It's really big and it's unprecedented. What we usually see 0:01:29.440 --> 0:01:31.600 from the union is that they sort of pick out 0:01:31.920 --> 0:01:36.280 one automaker to negotiate with and then use an agreement 0:01:36.280 --> 0:01:39.560 reach with that automaker as a sort of pattern, a 0:01:39.560 --> 0:01:42.240 form of pattern bargaining bargaining with the other two. In 0:01:42.280 --> 0:01:47.760 this case, they've decided to strike all three companies at 0:01:48.480 --> 0:01:50.320 at once, which they have not done. 0:01:50.080 --> 0:01:53.400 Before, and Bloomberg's Craig Trudell says the strategy is designed 0:01:53.400 --> 0:01:56.000 to cut production of popular vehicles while at the same 0:01:56.040 --> 0:01:59.080 time limiting the impact on the uaw's strike fund. 0:01:59.200 --> 0:02:01.919 Well, Karen, we have developments this morning involving a different 0:02:01.960 --> 0:02:06.160 labor dispute. Hollywood's striking writers have agreed to resume negotiations 0:02:06.160 --> 0:02:09.320 with the movie and TV producers. Bloomberg Zed Baxter has 0:02:09.360 --> 0:02:09.840 that story. 0:02:10.040 --> 0:02:14.600 The AMPTP, representing the studio streaming Services and Productions, say 0:02:14.639 --> 0:02:17.600 that guild reached out asking for a meeting and that 0:02:17.800 --> 0:02:20.680 they had agreed. The strike has gone on for four 0:02:20.720 --> 0:02:23.720 and a half months over issues including pay, job security, 0:02:24.000 --> 0:02:27.919 and the big issue, the use of artificial intelligence. Previous 0:02:27.919 --> 0:02:31.640 attempts to restart talks fell flat. A handful of meetings 0:02:31.680 --> 0:02:34.359 last month but nothing. The writer said they got a 0:02:34.440 --> 0:02:37.800 lecture on how good the studio's offer was. So no 0:02:38.240 --> 0:02:40.919 date set yet, but a glimmer of hope for next 0:02:40.960 --> 0:02:43.960 week in California. I'm at Baxter Bloomberg Radio. 0:02:44.120 --> 0:02:45.079 All right, and thanks well. 0:02:45.120 --> 0:02:48.000 Sticking with the entertainment industry, there's new developments in the 0:02:48.040 --> 0:02:51.400 pursuit of ABC. Bloomberg News has learned a former comic 0:02:51.480 --> 0:02:54.600 turned media mogul is interested in buying the TV network 0:02:54.600 --> 0:02:57.440 from Disney, and we get more from Bloomberg media reporter 0:02:57.600 --> 0:02:58.360 Chris Paulmery. 0:02:58.880 --> 0:03:02.160 We also have heard that fire and Allen, who owns 0:03:02.200 --> 0:03:04.320 a weather channel and a bunch of other local stations, 0:03:04.720 --> 0:03:08.200 has expressed interests as well. So we're far from a deal. 0:03:08.240 --> 0:03:11.840 It seems Disney seems to have trouble making up his 0:03:11.880 --> 0:03:13.639 mind whether he really wants to go forward with this, 0:03:14.200 --> 0:03:15.480 but there are people. 0:03:15.200 --> 0:03:18.360 Interested, and Bloomberg's Chris Paul Mary says Alan submitted a 0:03:18.400 --> 0:03:21.560 ten billion dollar offer to Disney to acquire ABC, as 0:03:21.560 --> 0:03:24.480 well as local stations and the FX and National geographic 0:03:24.600 --> 0:03:27.840 cable channels. Bloomberg's David Weston, used to be the president 0:03:27.880 --> 0:03:31.160 of ABC News, says he has not surprised Disney CEO 0:03:31.240 --> 0:03:33.320 Bob Iger is exploring his options. 0:03:33.720 --> 0:03:35.960 When Bob gave that interview and said everything's on the table, 0:03:35.960 --> 0:03:38.160 and he was, oh, my goodness, how coun you say that, Well, 0:03:38.200 --> 0:03:40.120 he wouldn't be doing his job if he weren't wanting 0:03:40.160 --> 0:03:42.560 to consider everything. Because I think the turmoil and upset 0:03:42.600 --> 0:03:45.160 in the media business is just that profound, and if 0:03:45.200 --> 0:03:47.520 you're a CEO, you should be looking at all the options. 0:03:47.520 --> 0:03:48.440 So it doesn't surprise me. 0:03:48.520 --> 0:03:51.440 Look at and that's David Weston, the host of Bloomberg's 0:03:51.440 --> 0:03:54.560 Wall Street Week. Disney said that while it's considering strategic 0:03:54.600 --> 0:03:58.280 options for its traditional TV networks, no decisions about a 0:03:58.400 --> 0:03:59.400 sale have been made. 0:03:59.480 --> 0:04:01.880 All right, turn our attention now, Karen to the biggest 0:04:01.920 --> 0:04:05.280 IPO of the year. Shares of chip designer ARM surged 0:04:05.320 --> 0:04:07.960 almost twenty five percent in their first day of trading. 0:04:08.160 --> 0:04:10.040 The company now has a market value of more than 0:04:10.080 --> 0:04:13.880 sixty five billion dollars. Arm CEO Renee has tells us 0:04:13.880 --> 0:04:16.240 he's confident the company's growth will be sustained. 0:04:16.480 --> 0:04:18.920 We also have a very unique business model that gives 0:04:18.960 --> 0:04:21.360 us the ability to have a very very good vision 0:04:21.480 --> 0:04:23.640 in the future in terms of when people use our products. 0:04:24.000 --> 0:04:27.120 So relative to our confidence in the outlook, we have 0:04:27.160 --> 0:04:29.240 a very very high competence that the growth rate that 0:04:29.279 --> 0:04:30.680 we have talked about will be sustained. 0:04:30.960 --> 0:04:33.240 Renee Hass added Arms open to the idea of a 0:04:33.279 --> 0:04:34.720 secondary listing in the UK. 0:04:35.240 --> 0:04:37.920 Well Nathan, the success of the arm IPO maybe having 0:04:38.040 --> 0:04:41.440 ripple effects. The Wall Street Journal is reporting Instacart is 0:04:41.480 --> 0:04:44.000 preparing to raise the target price for its initial public 0:04:44.000 --> 0:04:47.520 offering next week to twenty eight to thirty dollars a share. 0:04:47.720 --> 0:04:50.919 In Asia this morning, Karen China's economy is showing signs 0:04:50.960 --> 0:04:54.120 of picking up steam. Industrial production and retail sales growth 0:04:54.200 --> 0:04:56.760 jumped in August from a year earlier. The improvement comes 0:04:56.760 --> 0:04:59.360 as the government's beefed up pro growth measures. 0:04:59.160 --> 0:05:02.000 And speaking of and Nathan famed, a short seller, Jim 0:05:02.080 --> 0:05:05.840 Chaino says President Shi Jinping has put ideology over the 0:05:05.920 --> 0:05:09.000 nation's economy, and he tells Bloomberg that raises the risk 0:05:09.080 --> 0:05:12.039 to the rest of the world if China's growth model falters. 0:05:12.600 --> 0:05:19.360 Previous leaders since Thankshaping really put economic growth first and foremost, 0:05:20.000 --> 0:05:22.960 and with Shishingping, I think it is more about party 0:05:23.000 --> 0:05:29.479 ideology and things like national defense. It's a much more 0:05:29.600 --> 0:05:32.320 muscular China than we've seen previous. 0:05:31.880 --> 0:05:35.200 Decades, and Jim Chino says the Chinese market has been 0:05:35.240 --> 0:05:42.960 a terrible place for investors over the past decade. Time. 0:05:43.000 --> 0:05:44.200 Now for a look at some of the other stories 0:05:44.240 --> 0:05:45.960 making news around the world. From that, we're joined by 0:05:45.960 --> 0:05:47.240 Bloomberg's John Tucker. 0:05:47.360 --> 0:05:50.359 John, good morning, and good morning to you, Karen. Hurricane 0:05:50.440 --> 0:05:52.560 Lee about to head up on a track along the 0:05:52.760 --> 0:05:56.920 coast in the northeast. Huge waves of twelve feet already 0:05:56.960 --> 0:05:58.760 being seen from Florida all the way up to the 0:05:58.760 --> 0:06:02.000 coast of Maine, and Mayor Michelle wou As a word 0:06:02.120 --> 0:06:02.760 of warning. 0:06:03.800 --> 0:06:06.560 Conditions are still anticipated to be similar to that of 0:06:06.560 --> 0:06:08.800 a nor'easter because the spread. 0:06:08.440 --> 0:06:10.719 Of this storm and the wind and the rain will. 0:06:10.600 --> 0:06:15.120 Extend far beyond the center of it over into the coast. 0:06:15.360 --> 0:06:18.080 Its closest approach is a hurricane to the US should 0:06:18.080 --> 0:06:21.240 be tomorrow morning. That's when Tropica storm force winds would 0:06:21.240 --> 0:06:24.120 be scraping Cape cod At up through parts of Maine. 0:06:24.480 --> 0:06:27.520 President Biden's son Hunter has been indicted on three felony 0:06:27.560 --> 0:06:30.920 gun charges. The news coming as President Biden was delivering 0:06:30.920 --> 0:06:34.560 his speech on the economy in Maryland. The President wouldn't comment. 0:06:34.760 --> 0:06:36.440 There's a lot more I know we could talk about it. 0:06:36.440 --> 0:06:38.440 I wish I had chance to take all your questions, 0:06:38.680 --> 0:06:40.159 and I'm going to get in real trouble if I 0:06:40.200 --> 0:06:40.440 do that. 0:06:40.600 --> 0:06:43.360 He's accused of buying a firearm without disclosing that he 0:06:43.440 --> 0:06:46.960 was using drugs at the time. A mystery surrounding the 0:06:46.960 --> 0:06:50.520 status of China's defense minister that story in this report 0:06:50.520 --> 0:06:51.960 from Bloomberg staff Benlinger. 0:06:52.360 --> 0:06:55.960 The US government believes China's Defence minister has been stripped 0:06:55.960 --> 0:06:59.279 of his duties and placed under investigation. According to a 0:06:59.360 --> 0:07:02.839 report in The Financial Times. It is raising questions about 0:07:02.880 --> 0:07:06.920 turbulence within President Shi Jinping's new lineup of loyalist leaders. 0:07:07.160 --> 0:07:10.200 The defense minister's dropped from public view comes after she 0:07:10.440 --> 0:07:14.040 purged several other top leaders in recent months without explanation. 0:07:14.440 --> 0:07:18.120 Those moves of fanned investor fears that she's policy swings 0:07:18.160 --> 0:07:22.160 are making China more volatile Jeff Bullinger, Bloomberg Radio. 0:07:22.320 --> 0:07:26.600 David McCormick, the former Bridgewater Associate's chief executive officer, will 0:07:26.760 --> 0:07:30.160 likely seek the Republican nomination for US Senate in Pennsylvania 0:07:30.440 --> 0:07:32.360 if you're looking to take the seat now held by 0:07:32.400 --> 0:07:35.360 Bob Casey, a three term Democrat and son of the 0:07:35.400 --> 0:07:39.840 former governor. It's not exactly an anniversary worth celebrating, but 0:07:39.960 --> 0:07:43.680 fifteen years ago today, Linden Brothers went bankrupt with no 0:07:43.800 --> 0:07:46.880 willing buyer and no rescue for the government. The resulting 0:07:46.920 --> 0:07:49.920 financial crisis of two thousand and eight still shapes the 0:07:50.000 --> 0:07:53.520 investment landscape. Global news twenty four hours a day, were 0:07:53.520 --> 0:07:56.520 powered by more than twenty seven hundred journalist and analysts 0:07:56.600 --> 0:07:59.520 in more than one hundred twenty countries. I'm John Tucker, 0:07:59.600 --> 0:08:01.320 and this is Bloomberg Karen. 0:08:01.440 --> 0:08:03.760 All right, John, thank you, and now get the latest 0:08:03.760 --> 0:08:06.320 news whenever you wanted with Bloomberg News Now. It's a 0:08:06.360 --> 0:08:08.760 top story from our global team of reporters at the 0:08:08.760 --> 0:08:11.560 click of a button. Get Bloomberg News Now on the 0:08:11.600 --> 0:08:14.960 Bloomberg Business app, Bloomberg dot com, and anywhere you get 0:08:15.000 --> 0:08:22.320 your podcasts. Time now for the Bloomberg Sports Update. And 0:08:22.360 --> 0:08:24.120 here's John stash Hour John. 0:08:24.080 --> 0:08:26.600 Karen Thursday Night Football the kickoff Week two battle of 0:08:26.640 --> 0:08:29.520 teams who won their division in the NFC last year. 0:08:29.560 --> 0:08:30.920 The Eagles, of course, went all the way to the 0:08:30.960 --> 0:08:33.439 Super Bowl. They've been sloppy first two games, but they 0:08:33.440 --> 0:08:36.880 are two to zero. They built up a twenty seven 0:08:36.920 --> 0:08:39.040 to seven lead third and four and held on to 0:08:39.080 --> 0:08:42.440 beat Minnesota thirty four to twenty eight. Eagles doing their 0:08:42.520 --> 0:08:45.920 damage on the ground two hundred and fifty nine yards rushing. 0:08:46.000 --> 0:08:48.360 DeAndre Swift had one hundred and seventy five of those 0:08:48.400 --> 0:08:51.679 scored a key late touchdown. Kylin Hurts did throw a 0:08:51.720 --> 0:08:55.240 sixty three yard touchdown pass to Devonte Smith. Minnesota did 0:08:55.320 --> 0:08:57.680 damage through the air, with Kirk Cousins throwing for three 0:08:57.720 --> 0:09:00.520 hundred and sixty four yards and four touchdowns, but the 0:09:00.600 --> 0:09:03.040 Vikings a zero and two because of turnovers they had 0:09:03.080 --> 0:09:06.000 three and last Sundays lost to Tampa Bay on four 0:09:06.120 --> 0:09:09.439 more turnovers. Last night, the Red Sox have fired their 0:09:09.440 --> 0:09:12.040 general manager, Kaim Bloom. He had the job for four years. 0:09:12.120 --> 0:09:14.720 During that time, Red Sox were only the playoff team once. 0:09:15.040 --> 0:09:18.160 Team owner John Henry said in a statement, today signals 0:09:18.160 --> 0:09:21.000 a new direction for our club. Red Sox and Yankees 0:09:21.200 --> 0:09:24.160 played a doubleheader at Fenway split two of those teams 0:09:24.360 --> 0:09:28.160 looking to avoid finishing in last place, Tampa Bay and 0:09:28.200 --> 0:09:31.200 Baltimore looking to finish in first in the AL East 0:09:31.640 --> 0:09:34.240 and get the first round by and The Rays started 0:09:34.240 --> 0:09:36.120 a series of camp and yards, winning four to three. 0:09:36.160 --> 0:09:39.680 They're only one game behind the Orioles. Nationals had only 0:09:39.720 --> 0:09:42.520 two hits lost in Pittsburgh, two nothing. The Giants rained 0:09:42.520 --> 0:09:44.960 out at Colorado. The teams they're fighting with to make 0:09:45.000 --> 0:09:48.559 the playoffs all lost, the Diamondbacks, the Reds, and the Marlins. 0:09:48.640 --> 0:09:50.560 John Stasheward Bloomberg Sports. 0:09:52.480 --> 0:09:55.480 From coast to coast, from New York to San Francisco, 0:09:55.800 --> 0:10:01.160 Boston to Washington, DC, nationwide on Syrias Xam, Bloomberg Business Appen, 0:10:01.280 --> 0:10:04.679 Bloomberg dot Com. This is Bloomberg Daybreak. 0:10:05.800 --> 0:10:06.400 Good morning. 0:10:06.440 --> 0:10:09.880 I'm Nathan Hager, and as of midnight, auto workers are 0:10:09.920 --> 0:10:13.400 on strike at selected plants at Ford General Motors and 0:10:13.600 --> 0:10:16.920 jeep maker Stilantis. It may be just the beginning of 0:10:16.960 --> 0:10:20.120 a long and drawn out labor dispute for the auto industry. 0:10:20.240 --> 0:10:24.240 United Autoworkers President Sean Fain announced the targeted walkouts late 0:10:24.320 --> 0:10:24.760 last night. 0:10:25.240 --> 0:10:28.240 We are committed to winning an agreement with the Big 0:10:28.280 --> 0:10:34.160 three that reflects the incredible sacrifice and contributions UAW members 0:10:34.160 --> 0:10:35.959 have made to these companies. 0:10:36.080 --> 0:10:36.480 And for more. 0:10:36.520 --> 0:10:39.599 We're joined by Bloomberg's Critty Gutuo has been tracking the negotiations 0:10:39.640 --> 0:10:43.360 and is now tracking the walkout. Pretty these talks clearly 0:10:43.840 --> 0:10:46.400 have broken down. So what comes next? 0:10:46.880 --> 0:10:49.920 Yeah, we are on our sakes of a really historic event, 0:10:50.000 --> 0:10:52.480 the first of its kind to see all three major 0:10:52.520 --> 0:10:55.960 carmakers in the US four GMN stallants deal with a 0:10:56.120 --> 0:10:59.240 walkout like this and a strike all at the same time. 0:10:59.320 --> 0:11:01.440 I mean again, it is a truly historic moment amid 0:11:01.559 --> 0:11:04.400 a broader labor movement we're seeing across the country. Nathan, 0:11:04.440 --> 0:11:07.880 there are three numbers you need to know here. Forty six, 0:11:08.200 --> 0:11:11.280 twenty and one hundred and fifty thousand. Let's start with 0:11:11.280 --> 0:11:13.360 the bottom. One hundred and fifty thousand. That's how many 0:11:13.400 --> 0:11:16.200 people are involved in this now. So many people are 0:11:16.320 --> 0:11:20.680 represented by the United Auto Workers Union. Forty six percent 0:11:20.880 --> 0:11:23.720 is the initial offer that they came with, the idea 0:11:23.800 --> 0:11:26.319 here they wanted for their next contract that's going to 0:11:26.360 --> 0:11:28.880 be about four and a half years. A forty six 0:11:28.960 --> 0:11:31.719 percent increase in pay over the next four and a 0:11:31.760 --> 0:11:34.360 half years. And my last number here is twenty percent. 0:11:34.400 --> 0:11:37.400 That's what GM and Ford and Salanta said about eighteen 0:11:37.440 --> 0:11:40.080 percent countered with. So you can see there's clearly a 0:11:40.160 --> 0:11:43.240 very big discrepancy between what the unions actually asked for 0:11:43.520 --> 0:11:45.680 and what the carmakers are willing to offer now. But 0:11:45.760 --> 0:11:49.120 even as negotiations have progressed, we've gotten that request number 0:11:49.240 --> 0:11:51.800 down to about thirty six percent on the union side. 0:11:51.840 --> 0:11:54.800 But look, thirty six percent versus twenty percent, you can 0:11:54.800 --> 0:11:56.360 see still a massive gap. 0:11:56.440 --> 0:11:58.520 Yeah, it's still a big gap. And it's not just 0:11:59.000 --> 0:12:02.040 the pay increase. Is that these union workers are looking for. 0:12:02.160 --> 0:12:05.200 They're looking to clawbacks and benefits that they gave up 0:12:05.240 --> 0:12:08.720 more than a decade ago, including cost of living adjustments. 0:12:08.760 --> 0:12:12.600 That's something that they gave up after the bailout of 0:12:12.679 --> 0:12:13.679 the auto industry. 0:12:13.960 --> 0:12:14.520 Yeah, I'm having a. 0:12:14.520 --> 0:12:16.080 Little bit of deja vous here, because I mean this 0:12:16.200 --> 0:12:18.480 is something that you've seen time and time again with 0:12:18.679 --> 0:12:21.840 a lot of the workers that are in industries that 0:12:21.880 --> 0:12:24.320 are a little bit more labor intensive. I mean, car 0:12:24.360 --> 0:12:27.120 making is just one of them. Railroads, for example, is another. 0:12:27.200 --> 0:12:30.439 Shipping logistics is another one. Remember when we were talking 0:12:30.480 --> 0:12:33.360 about the Team Stars negotiations and working conditions simply as 0:12:33.400 --> 0:12:36.359 a function of do you get air conditioning in delivery 0:12:36.720 --> 0:12:40.400 trucks was a sticking point in those negotiations. Similarly, you 0:12:40.480 --> 0:12:43.000 are seeing those working conditions for the United Auto Workers 0:12:43.040 --> 0:12:46.000 as well. Sick pay is also part of the agenda. 0:12:46.040 --> 0:12:49.080 I remember for the railroad strikes, sick pay was not 0:12:49.360 --> 0:12:51.880 included at all. They didn't get any sick pay. You 0:12:52.040 --> 0:12:54.640 essentially got docked actually for taking a sick day in 0:12:54.679 --> 0:12:57.920 the railroad industry due to laws from ages ago. Car 0:12:57.960 --> 0:13:01.280 making is very very interesting because, again, similar to some 0:13:01.320 --> 0:13:04.640 of these other industries, it's dealing with a massive structural shift, 0:13:04.720 --> 0:13:09.280 and in the absence of really a bigger pay raise, 0:13:09.480 --> 0:13:12.599 they're saying, look, we need to have better lives, and 0:13:12.679 --> 0:13:15.040 those are demands that have really come I think with 0:13:15.160 --> 0:13:16.600 more force post COVID. 0:13:17.040 --> 0:13:19.679 Let's talk about the strategy that the United Auto Workers 0:13:19.760 --> 0:13:23.760 is mounting here with these targeted strikes of one Ford 0:13:23.800 --> 0:13:27.560 plant that makes Ford broncos, another for General Motors that 0:13:27.600 --> 0:13:32.360 makes Chevy Colorado pickups, and a Jeep Wrangler plant owned 0:13:32.360 --> 0:13:37.240 by Stilantis. Interesting strategy here to go after just a 0:13:37.280 --> 0:13:40.600 few plants. So work isn't completely stopping. 0:13:41.120 --> 0:13:43.439 Work isn't completely stopping because they are still at the 0:13:43.480 --> 0:13:46.960 bargaining table. Remember, negotiations are ongoing. And even though you 0:13:47.000 --> 0:13:49.160 did see President Shaan Faine of the Night Auto Workers, 0:13:49.200 --> 0:13:52.120 you need to step away at midnight to really join 0:13:52.160 --> 0:13:54.079 some of the picket lines in some of these plants 0:13:54.080 --> 0:13:58.079 where workers literally walked off of the property to protest, 0:13:58.760 --> 0:14:00.800 you are going to expect him to come right back 0:14:00.840 --> 0:14:02.760 to the negotiating table. So that's going to be something 0:14:02.800 --> 0:14:04.240 you're going to be hearing in the coming days the 0:14:04.320 --> 0:14:07.360 new offers coming from the carmakers. But in the meantime, yeah, 0:14:07.400 --> 0:14:09.480 you are going to see some disruption in some of 0:14:09.480 --> 0:14:11.760 the plants. The strategy is really interesting though, because they've 0:14:11.760 --> 0:14:14.680 pinpointed the plants that are essentially the most efficient, that 0:14:14.720 --> 0:14:18.800 are the most needed in this kind of output operation 0:14:19.040 --> 0:14:21.200 from the big car makers. That's going to be significant. 0:14:21.240 --> 0:14:24.200 But Nathan, you mentioned strategy, and I think strategy in 0:14:24.280 --> 0:14:27.560 terms of negotiations is important as well, because something that 0:14:27.680 --> 0:14:29.960 I think has really set the tone for a lot 0:14:30.040 --> 0:14:32.960 of the labor movement from Hollywood to Silicon Valley to 0:14:33.040 --> 0:14:35.760 even Wall Street has been just how much force you 0:14:35.880 --> 0:14:37.520 use carrot and the stick method. And it seems like 0:14:37.520 --> 0:14:40.240 the stick method is really what's winning here, given that 0:14:40.360 --> 0:14:44.480 even the Teamsters negotiat negotiators came down to the eleventh hour, 0:14:44.720 --> 0:14:47.480 they were willing to go hard and they basically walked 0:14:47.480 --> 0:14:51.360 out as well or threatened to. And it became a 0:14:51.600 --> 0:14:55.440 very aggressive situation for lack of a better term, as 0:14:55.440 --> 0:14:59.240 opposed to negotiating kind of in good faith. It became 0:14:59.320 --> 0:15:02.680 quite literally a threat, we are leaving unless you can 0:15:03.000 --> 0:15:05.280 help us out. And there is a force to that 0:15:05.320 --> 0:15:07.920 and a momentum to that that we haven't seen in decades. 0:15:08.200 --> 0:15:11.040 Well, what kind of damage could strike like this do 0:15:11.720 --> 0:15:14.480 targeting these particular plants, because there are other plants for 0:15:14.520 --> 0:15:17.480 all three of these automakers that are still presumably going 0:15:17.520 --> 0:15:19.960 to be putting out some really popular models. 0:15:20.360 --> 0:15:22.200 Well, the irony here is that on the surface, it 0:15:22.240 --> 0:15:24.120 sounds like these car makers are the ones that are 0:15:24.160 --> 0:15:26.120 going to get hurt, but actually it's not God to 0:15:26.160 --> 0:15:28.080 the end consumer that's going to get hurt. And I 0:15:28.080 --> 0:15:30.840 think the Mercedes ben ceo put it beautifully where he said, 0:15:31.040 --> 0:15:33.120 look what this does by taking about one hundred and 0:15:33.120 --> 0:15:35.800 fifty thousand people off of the labor market for car 0:15:35.840 --> 0:15:39.320 making is increased, the cost of labor. Suddenly, all the 0:15:39.360 --> 0:15:41.360 other workers that are not a part of this union 0:15:41.680 --> 0:15:44.320 are going to be charging more for their time and 0:15:44.360 --> 0:15:47.080 for their expertise, and all of a sudden, you now 0:15:47.160 --> 0:15:50.520 have a higher margin that the carmakers have to deal with. 0:15:50.600 --> 0:15:52.600 So that's where the car makers get hit, and that's 0:15:52.600 --> 0:15:55.160 where the damage is done there. But then those costs 0:15:55.200 --> 0:15:57.440 are passed on to the consumer. So if you're walking 0:15:57.480 --> 0:16:01.080 into a store, any car store around the world, might 0:16:01.120 --> 0:16:04.640 I add, your end price is going to be pretty significant. 0:16:04.640 --> 0:16:06.480 Not to mention the people of Detroit and the people 0:16:06.520 --> 0:16:09.240 of Michigan. There was one study that said, if this 0:16:09.320 --> 0:16:13.120 strike goes out long enough, because carmaking is so concentrated 0:16:13.160 --> 0:16:15.560 in that part of the country, the entire state of 0:16:15.600 --> 0:16:17.440 Michigan could dip into recession. 0:16:17.880 --> 0:16:20.560 What kind of contingency plans do the automakers have if 0:16:20.560 --> 0:16:23.359 the strike does go on for an extended period of time. 0:16:23.760 --> 0:16:26.960 Well, not very many, is the answer. I mean, essentially, 0:16:27.080 --> 0:16:28.760 the go to here would be to slow down some 0:16:28.800 --> 0:16:31.080 of the ev production that they have. Fom GM have 0:16:31.120 --> 0:16:33.600 already done that when they've dealt with supply chain issues 0:16:33.880 --> 0:16:35.360 as well. But again this is kind of at the 0:16:35.400 --> 0:16:38.360 heart of the issue between a lot of these workers 0:16:38.360 --> 0:16:41.880 are saying, Look, EV manufacturing doesn't require the same skill 0:16:41.960 --> 0:16:43.840 level that a lot of these workers have, and on 0:16:43.920 --> 0:16:46.560 top of that, it involves a lot of automation as well, 0:16:46.560 --> 0:16:49.600 which kind of makes their jobs pointless to some extent. 0:16:49.640 --> 0:16:51.520 So again that's really part of the negotiations. But I 0:16:51.520 --> 0:16:53.640 imagine the EV production is what gets hit first. 0:16:54.120 --> 0:16:57.640 Gritty Gupta part of our team of Bloomberg News reporters 0:16:57.920 --> 0:17:02.400 covering the autoworkers' strike just getting underway for Ford General 0:17:02.400 --> 0:17:05.200 Motors and Stilantis KRITTI thank you. We'll be checking back 0:17:05.240 --> 0:17:08.200 with you throughout the days and potentially weeks to come 0:17:08.280 --> 0:17:10.200 on this. But now we want to turn to the 0:17:10.200 --> 0:17:14.160 biggest initial public offering of twenty twenty three, Armholdings, which 0:17:14.240 --> 0:17:17.000 rose as much as twenty two percent in its trading 0:17:17.040 --> 0:17:20.960 debut on the Nasdaq. Moments after those shares began trade, 0:17:21.000 --> 0:17:23.880 the CEO of the chip designer, ren A Haas, joined 0:17:23.880 --> 0:17:27.879 Bloomberg's Caroline Hyde on Bloomberg Television and expressed confidence in 0:17:27.920 --> 0:17:31.879 the company's growth rate and the potential for artificial intelligence 0:17:32.359 --> 0:17:34.120 AI is everywhere, and. 0:17:34.040 --> 0:17:37.600 If it's your edge device like the Assistant or the Alexa, 0:17:38.000 --> 0:17:41.280 or your autonomous vehicle, that's all AI. And now we're 0:17:41.280 --> 0:17:42.840 seeing it in the cloud in the data center with 0:17:42.920 --> 0:17:45.040 all the growth of Nvidia in Vida announcing one of 0:17:45.040 --> 0:17:47.760 their newest products, grace Hopper, that is based on ARM, 0:17:47.840 --> 0:17:50.639 so ARM is everywhere relative to AI, we also have 0:17:50.640 --> 0:17:53.320 a very unique business model that gives us the ability 0:17:53.320 --> 0:17:55.719 to have a very very good vision in the future 0:17:55.720 --> 0:17:58.600 in terms of when people use our products. So relative 0:17:58.640 --> 0:18:01.200 to our confidence in the outlook, we have a very 0:18:01.280 --> 0:18:03.159 very high confidence that the growth rate that we have 0:18:03.200 --> 0:18:04.360 talked about will be sustained. 0:18:04.840 --> 0:18:07.360 How lord were invested about China and your exposure. 0:18:07.560 --> 0:18:08.840 I think there were a lot of questions, as you 0:18:08.840 --> 0:18:12.720 can imagine about China in general, given all the geopolitics, 0:18:12.800 --> 0:18:14.680 Our business there looks a lot like the rest of 0:18:14.720 --> 0:18:16.920 the world. We have great growth in the data center, 0:18:16.960 --> 0:18:20.360 we have great growth in automotive. China's huge on electric vehicles, 0:18:20.359 --> 0:18:22.919 so it's been terrific there for us. I have the 0:18:22.920 --> 0:18:25.720 same kind of headaches that every other tech CEO has 0:18:25.760 --> 0:18:28.479 regarding how to navigate through this, but no different. 0:18:29.440 --> 0:18:31.520 Do you think there will be more pressure now that 0:18:31.560 --> 0:18:32.600 you're public again. 0:18:32.760 --> 0:18:35.160 Ultimately, I mean you came to ARM. 0:18:34.960 --> 0:18:37.560 In twenty thirteen, you were listed at that point, but 0:18:37.560 --> 0:18:39.320 it's not meanin it's twenty sixteen that you have been 0:18:39.359 --> 0:18:41.479 How does the game change as a leader of that 0:18:41.520 --> 0:18:42.040 business now? 0:18:42.320 --> 0:18:43.920 Yeah, I think there's some things that we were able 0:18:43.920 --> 0:18:46.199 to do as a private company that will just be different. Right, 0:18:46.400 --> 0:18:49.199 quarterly earnings, making sure that we hit all our commitments. 0:18:49.680 --> 0:18:51.680 But ARM is not a business you measure from quarter 0:18:51.680 --> 0:18:55.160 to quarter. You measure us over years and decades, and 0:18:55.400 --> 0:18:57.480 the long term vision is something that I am very, 0:18:57.560 --> 0:18:59.560 very passionate about, and we'll continue to drive the company 0:18:59.560 --> 0:19:01.680 the same way a private or public. 0:19:01.760 --> 0:19:04.560 You have a lot of key vested interests, whether they 0:19:04.800 --> 0:19:08.080 be your client's Apple, TSMC and TAIL taking big stakes 0:19:08.080 --> 0:19:08.680 in the company. 0:19:09.119 --> 0:19:12.760 How important are those voices? Visa v Masses, the head 0:19:12.760 --> 0:19:14.720 of soft Bank. I'm sure you're on the phone too daily. 0:19:14.960 --> 0:19:15.160 Yeah. 0:19:15.200 --> 0:19:17.760 So one of the challenges of our industry and FAILI 0:19:17.840 --> 0:19:20.840 with ARM is that the fact that we're everywhere, none 0:19:20.880 --> 0:19:23.160 of this works unless we play nice with others. So 0:19:23.280 --> 0:19:26.040 we have to have a lot of engagement for strategic 0:19:26.040 --> 0:19:29.480 partners and making sure that we're managing that balance, including Masa, 0:19:29.600 --> 0:19:30.560 our chief shareholder. 0:19:30.720 --> 0:19:32.080 Do you think you go public in the UK? 0:19:32.200 --> 0:19:33.880