1 00:00:00,120 --> 00:00:04,360 Speaker 1: Bloomberg is now on your dashboard with Apple CarPlay and 2 00:00:04,360 --> 00:00:08,160 Speaker 1: Android Auto. It gives you access to every Bloomberg podcast, 3 00:00:08,280 --> 00:00:11,560 Speaker 1: live audio feeds from Bloomberg Radio, print stories from Bloomberg 4 00:00:11,640 --> 00:00:14,920 Speaker 1: News in audio form, and the latest headlines of the 5 00:00:14,920 --> 00:00:18,600 Speaker 1: click of a button with Bloomberg News. Now it's free 6 00:00:18,680 --> 00:00:21,439 Speaker 1: with the latest version of the Bloomberg Business App. That's 7 00:00:21,680 --> 00:00:24,400 Speaker 1: the Bloomberg Business App. Get it on your phone in 8 00:00:24,440 --> 00:00:27,760 Speaker 1: the Apple App Store or on Google Play. Just download 9 00:00:27,800 --> 00:00:30,560 Speaker 1: the app, connect your phone to your car and get started, 10 00:00:30,960 --> 00:00:34,400 Speaker 1: and it's all presented by our sponsor, Interactive Brokers. 11 00:00:35,400 --> 00:00:38,600 Speaker 2: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 12 00:00:38,640 --> 00:00:39,800 Speaker 2: my co host Matt Miller. 13 00:00:40,200 --> 00:00:44,279 Speaker 1: Every business day we bring you interviews from CEOs, market pros, 14 00:00:44,320 --> 00:00:48,160 Speaker 1: and Bloomberg experts, along with essential market movin news. 15 00:00:48,720 --> 00:00:51,839 Speaker 2: I'm the Bloomberg Markets podcast called Apple Podcasts or wherever 16 00:00:51,960 --> 00:00:55,080 Speaker 2: you listen to podcasts, and at Bloomberg dot Com slash podcast. 17 00:00:55,720 --> 00:00:58,760 Speaker 2: Chris Campbell joins us. He's a Chief Strategisticcroll. He joins 18 00:00:58,800 --> 00:01:01,120 Speaker 2: us here on a Bloomberg Interactive Broker studio. Chris, what 19 00:01:01,160 --> 00:01:02,920 Speaker 2: are you telling clients here these days? I mean we've 20 00:01:02,920 --> 00:01:05,680 Speaker 2: had this you know, rally here in November, and I 21 00:01:06,120 --> 00:01:08,440 Speaker 2: guess it's in part due to I guess a lot 22 00:01:08,440 --> 00:01:10,200 Speaker 2: of investors are probably like me, saying, boy, if I'm 23 00:01:10,200 --> 00:01:12,840 Speaker 2: at peak rates, don't I take on some risks here 24 00:01:12,880 --> 00:01:13,760 Speaker 2: with my portfolio? 25 00:01:14,040 --> 00:01:14,240 Speaker 3: Yeah. 26 00:01:14,280 --> 00:01:16,360 Speaker 4: Look, I think that's it's highly likely that we've probably 27 00:01:16,360 --> 00:01:20,200 Speaker 4: seen that the the top of the rate interest rate raise. 28 00:01:20,760 --> 00:01:24,240 Speaker 4: But I kind of concerned myself more of a pessimistic 29 00:01:24,319 --> 00:01:27,440 Speaker 4: optimist right now, which means I think we're going to 30 00:01:27,520 --> 00:01:29,800 Speaker 4: be some We're going to go some difficult times. But 31 00:01:29,920 --> 00:01:31,960 Speaker 4: on the other side of this, it's going to be 32 00:01:32,000 --> 00:01:34,760 Speaker 4: quite significant. There's you know, trillions of dollars you know, 33 00:01:34,760 --> 00:01:36,720 Speaker 4: out there in the park and the in the sidelines, 34 00:01:37,120 --> 00:01:39,800 Speaker 4: with the with the funds and families that we advise, 35 00:01:40,360 --> 00:01:41,640 Speaker 4: and I think they're looking. 36 00:01:41,480 --> 00:01:42,120 Speaker 5: For this correction. 37 00:01:42,160 --> 00:01:43,959 Speaker 4: I think that on the opposite of the correction will 38 00:01:44,000 --> 00:01:46,760 Speaker 4: be just an enormous amount of money flooding the capital market, 39 00:01:46,959 --> 00:01:49,520 Speaker 4: flooding the markets, and emerging acquisitions and lots of other 40 00:01:49,560 --> 00:01:51,080 Speaker 4: things that are goodness will happen. 41 00:01:51,120 --> 00:01:53,760 Speaker 5: I think probably late next year or earlier the year after. 42 00:01:53,880 --> 00:01:57,680 Speaker 1: Remember, Paul, you want to buy low, yes, to sell high? 43 00:01:58,240 --> 00:01:59,360 Speaker 6: Right, buy them and hold them. 44 00:01:59,520 --> 00:02:00,720 Speaker 1: You like to buy high and hold. 45 00:02:00,800 --> 00:02:02,040 Speaker 6: I just buy buy the. 46 00:02:02,000 --> 00:02:05,560 Speaker 2: Mo Yeah, mentum, Well, I mean you can catch on 47 00:02:05,560 --> 00:02:07,360 Speaker 2: the wrong side of that rush so many times, trying 48 00:02:07,360 --> 00:02:08,440 Speaker 2: to catch the falling knife. 49 00:02:08,919 --> 00:02:10,960 Speaker 1: That's a good point. What do you think about that? 50 00:02:11,800 --> 00:02:14,000 Speaker 5: Yeah, you know, it's probably a good idea to buy 51 00:02:14,040 --> 00:02:18,400 Speaker 5: low so high typically it's good. It's good good advice. 52 00:02:18,800 --> 00:02:21,760 Speaker 1: I so you could have caught the falling knife with 53 00:02:21,880 --> 00:02:25,399 Speaker 1: treasuries at five percent. We were like freaking out. Yes, 54 00:02:25,639 --> 00:02:26,320 Speaker 1: in this studio. 55 00:02:26,440 --> 00:02:27,080 Speaker 6: Right's a good point. 56 00:02:27,160 --> 00:02:29,320 Speaker 2: I mean, right across the curve, we had fives everywhere 57 00:02:29,360 --> 00:02:31,280 Speaker 2: at seventy two dollars on a barrel of oil. 58 00:02:31,360 --> 00:02:32,399 Speaker 1: We're freaking out. 59 00:02:32,480 --> 00:02:33,480 Speaker 6: I had to buy some oil here. 60 00:02:33,520 --> 00:02:35,280 Speaker 2: Another thing, but I mean Lisa Browma is sitting with 61 00:02:35,320 --> 00:02:37,799 Speaker 2: a big barrel of oil in her apartment and you 62 00:02:37,880 --> 00:02:40,600 Speaker 2: got it for negative forty bucks. Negative forty bucks. All right, 63 00:02:40,680 --> 00:02:45,320 Speaker 2: so we're in the market. Are you looking these days here? 64 00:02:45,400 --> 00:02:47,600 Speaker 2: I mean, because it seems like do I stick with 65 00:02:47,680 --> 00:02:50,040 Speaker 2: the magnificent seven that have worked so well? Do I 66 00:02:50,280 --> 00:02:52,639 Speaker 2: try to find some of the laggards? 67 00:02:52,639 --> 00:02:53,600 Speaker 6: How are you thinking about it? 68 00:02:53,680 --> 00:02:55,600 Speaker 4: I think actually you can start diversifying it again, if 69 00:02:55,600 --> 00:02:57,280 Speaker 4: we're going to see if we're seeing peak or eights, 70 00:02:57,480 --> 00:02:59,280 Speaker 4: like I do think we're going to be higher for longer. 71 00:02:59,320 --> 00:03:00,840 Speaker 4: I think that the Fed Reserve is going to try 72 00:03:00,880 --> 00:03:03,680 Speaker 4: to avoid becoming a rate lowering interest rates next year, 73 00:03:03,720 --> 00:03:06,160 Speaker 4: and a little bit of a contrarian in this in 74 00:03:06,200 --> 00:03:08,120 Speaker 4: this regard because I believe that there's you know, it 75 00:03:08,160 --> 00:03:10,640 Speaker 4: just becomes really political the Federal Reserve. I think that 76 00:03:10,639 --> 00:03:13,520 Speaker 4: actually the chairman actually has an enormous and out out 77 00:03:14,160 --> 00:03:17,919 Speaker 4: sized influence in the twenty four four elections because I 78 00:03:17,919 --> 00:03:21,080 Speaker 4: think it's mostly it's going to be the economy, and 79 00:03:21,160 --> 00:03:22,720 Speaker 4: so you know, I can think that he'll just be 80 00:03:22,840 --> 00:03:24,919 Speaker 4: very careful and be cautious about that, and so I 81 00:03:24,919 --> 00:03:26,360 Speaker 4: think that we're going to be we're in for a 82 00:03:26,400 --> 00:03:30,240 Speaker 4: tight thout, probably not all in next year. Sob Dan, 83 00:03:30,320 --> 00:03:31,840 Speaker 4: I think like this this is the time to long 84 00:03:31,880 --> 00:03:33,440 Speaker 4: the market absolutely and diversify. 85 00:03:34,080 --> 00:03:37,840 Speaker 1: You were, by the way, a former assistant secretary for 86 00:03:37,880 --> 00:03:42,080 Speaker 1: the US Treasury Department. You have interacted with Jerome Powell 87 00:03:42,160 --> 00:03:46,440 Speaker 1: on a wide variety of topics. But I wonder what 88 00:03:46,480 --> 00:03:50,400 Speaker 1: your thoughts are on the on the Druck and Miller 89 00:03:50,560 --> 00:03:56,440 Speaker 1: Yellen spat. I mean, could we really have sold much 90 00:03:56,480 --> 00:04:00,280 Speaker 1: longer maturities at much lower rates. Should we have done that? 91 00:04:01,520 --> 00:04:01,680 Speaker 7: Yeah? 92 00:04:01,760 --> 00:04:04,560 Speaker 4: I think there's as in every argument, there's two sides 93 00:04:04,600 --> 00:04:04,840 Speaker 4: of it. 94 00:04:04,920 --> 00:04:07,360 Speaker 1: Of course, and also hindsight is twenty twenty. I get 95 00:04:07,360 --> 00:04:07,960 Speaker 1: that fully. 96 00:04:08,040 --> 00:04:10,440 Speaker 4: So like I, I try not to look back at 97 00:04:10,520 --> 00:04:13,480 Speaker 4: my former colleagues and with you know, and try to 98 00:04:13,600 --> 00:04:16,040 Speaker 4: second guess what they've did. It's it's very difficult. Those 99 00:04:16,120 --> 00:04:18,800 Speaker 4: jobs are extremely difficult and they're very hard to you know. 100 00:04:18,920 --> 00:04:21,520 Speaker 5: So there's there. You get pressure from everywhere. 101 00:04:21,160 --> 00:04:23,119 Speaker 1: All right, So let me ask you this in terms 102 00:04:23,120 --> 00:04:27,880 Speaker 1: of the FED. For a while, there is this thought 103 00:04:27,960 --> 00:04:32,760 Speaker 1: that Jerome Powell would do anything not to become another 104 00:04:32,920 --> 00:04:36,680 Speaker 1: Arthur Burns. That is, he wanted to really crush inflation 105 00:04:37,120 --> 00:04:39,440 Speaker 1: and stop it in its tracks so that it never 106 00:04:39,480 --> 00:04:42,039 Speaker 1: reared its ugly head again, or at least you know, 107 00:04:43,120 --> 00:04:46,359 Speaker 1: during his time. Is that still the case or is 108 00:04:46,400 --> 00:04:50,240 Speaker 1: he going to start worrying about you know, joblessness and 109 00:04:50,400 --> 00:04:53,159 Speaker 1: economic slow down. Is he going to start getting a 110 00:04:53,160 --> 00:04:56,440 Speaker 1: little bit soft and dubvish when the bad data comes out? 111 00:04:56,560 --> 00:04:56,720 Speaker 2: Yeah? 112 00:04:56,760 --> 00:04:58,920 Speaker 4: I always compared to me, I think you try to 113 00:04:58,960 --> 00:05:01,240 Speaker 4: avoid to becoming pulled. I mean, I think it just 114 00:05:01,279 --> 00:05:03,600 Speaker 4: doesn't want to have, you know, any kind of diflation. 115 00:05:03,920 --> 00:05:05,240 Speaker 4: I think it's trying to avoid that at all. So 116 00:05:05,320 --> 00:05:08,360 Speaker 4: I think that tight for longer. Make sure you stamp 117 00:05:08,400 --> 00:05:10,640 Speaker 4: it out right. I think that there's you know, some 118 00:05:10,680 --> 00:05:12,840 Speaker 4: FED governors are suggesting, and I think that the FED 119 00:05:12,920 --> 00:05:15,520 Speaker 4: is looking for us slow down in job job growth, 120 00:05:15,920 --> 00:05:17,880 Speaker 4: and that's you know, all of that means. I think 121 00:05:18,000 --> 00:05:20,560 Speaker 4: this is where I'm a little bit pessimistic, if you will, 122 00:05:20,560 --> 00:05:21,920 Speaker 4: and I think we're going to get see. A bit 123 00:05:21,960 --> 00:05:25,000 Speaker 4: of a downside is that, you know, the American consumer 124 00:05:25,080 --> 00:05:26,719 Speaker 4: is kind of running an esteem. I think that they're 125 00:05:26,760 --> 00:05:31,160 Speaker 4: they're the largest economic engine of the economy, and you know, 126 00:05:31,360 --> 00:05:34,600 Speaker 4: they've spent their savings and now they're now they're spending 127 00:05:34,640 --> 00:05:36,880 Speaker 4: our credit cards at record rates, at a very high 128 00:05:37,000 --> 00:05:37,720 Speaker 4: eye address. 129 00:05:38,080 --> 00:05:41,679 Speaker 2: So you're also former staff director the Senate Finance Committee 130 00:05:41,680 --> 00:05:42,719 Speaker 2: at the United States Senate. 131 00:05:42,880 --> 00:05:43,760 Speaker 6: What did you do there? 132 00:05:44,480 --> 00:05:47,320 Speaker 4: The committee is in charge of all Medicare, medicaid, social security, 133 00:05:47,640 --> 00:05:51,240 Speaker 4: tax policy, international trade. So what oversaw seventy percent of 134 00:05:51,320 --> 00:05:53,280 Speaker 4: US spending one hundred percent in becoming revenue. 135 00:05:53,400 --> 00:05:55,320 Speaker 2: So is it your job to make sure that when 136 00:05:55,360 --> 00:05:59,440 Speaker 2: senators are on television questioning witnesses and whenever anybody comes 137 00:05:59,480 --> 00:06:02,200 Speaker 2: in front of their committee that they sound intelligent. 138 00:06:02,200 --> 00:06:04,599 Speaker 5: That working very closely with the members and their staff. 139 00:06:04,920 --> 00:06:07,719 Speaker 5: You know it. It was treading set an agenda that 140 00:06:07,800 --> 00:06:08,800 Speaker 5: was very difficult. You know. 141 00:06:09,320 --> 00:06:13,120 Speaker 4: The difficult things about what we are mandate was that 142 00:06:13,160 --> 00:06:16,359 Speaker 4: they were just all of them are extremely political. You know, 143 00:06:16,400 --> 00:06:18,919 Speaker 4: I can't think that you know, good people can have 144 00:06:19,040 --> 00:06:22,839 Speaker 4: arguments about entitlements, you know, Medicare and medicaiding social Security. 145 00:06:22,839 --> 00:06:25,760 Speaker 4: But the challenge is trying to change trying to actually 146 00:06:25,760 --> 00:06:28,839 Speaker 4: have a public debate that actually doesn't become highly political, 147 00:06:28,960 --> 00:06:32,240 Speaker 4: politicized and really scared Americans is really hard on those issues. 148 00:06:32,680 --> 00:06:34,880 Speaker 4: And then tax policy, of course, is that there's always 149 00:06:34,880 --> 00:06:38,080 Speaker 4: a give and take where one side typically likes slower taxes, 150 00:06:38,120 --> 00:06:39,960 Speaker 4: one side likes higher taxes, and it's just you know, 151 00:06:40,200 --> 00:06:42,400 Speaker 4: you try to find some way to get compromised. 152 00:06:42,440 --> 00:06:46,559 Speaker 6: But it works between senators. Happens behind the doors. 153 00:06:46,560 --> 00:06:48,280 Speaker 2: I mean, did they really walk down to the hall 154 00:06:48,880 --> 00:06:50,880 Speaker 2: and say, let's debate this issue. 155 00:06:50,880 --> 00:06:51,400 Speaker 6: I want to. 156 00:06:52,120 --> 00:06:54,039 Speaker 1: Does that happen lately? They just say do you want 157 00:06:54,040 --> 00:06:56,880 Speaker 1: to fight? Exactly? And I guess the. 158 00:06:56,800 --> 00:06:58,720 Speaker 2: Reason I was going because I just you know, we 159 00:06:58,720 --> 00:07:01,880 Speaker 2: look at these committee here, whether it's technology people coming 160 00:07:01,880 --> 00:07:04,680 Speaker 2: in from or whatever, and our senators in our congressman, 161 00:07:04,720 --> 00:07:09,160 Speaker 2: they just sound so uninformed. It's really painful slash embarrassing. 162 00:07:10,320 --> 00:07:13,960 Speaker 2: But I'm just wondering do they debate the issues amongst themselves? 163 00:07:14,440 --> 00:07:16,160 Speaker 5: They do, and staff does a lot of that work 164 00:07:16,200 --> 00:07:16,800 Speaker 5: for them as well. 165 00:07:16,800 --> 00:07:19,520 Speaker 4: But I think it's, you know, like it's it's very difficult, 166 00:07:19,520 --> 00:07:22,240 Speaker 4: as you know, they're they're they're also pulled everywhere, but 167 00:07:22,280 --> 00:07:24,200 Speaker 4: the challenges and I don't want to get anyone in 168 00:07:24,200 --> 00:07:26,320 Speaker 4: trouble because right now in American politics, if you're a 169 00:07:26,360 --> 00:07:28,520 Speaker 4: Republican talking to a Democrat or Democrat republic and talking 170 00:07:28,520 --> 00:07:30,640 Speaker 4: to republic and your voters don't like you. But I 171 00:07:30,680 --> 00:07:32,960 Speaker 4: will say that there's an enormous amount of that happening 172 00:07:33,120 --> 00:07:36,240 Speaker 4: behind closed doors, and it has to because honestly, genuinely, 173 00:07:36,240 --> 00:07:38,560 Speaker 4: nothing would get done, and I think nothing's gonna be 174 00:07:38,560 --> 00:07:38,880 Speaker 4: done now. 175 00:07:39,080 --> 00:07:41,760 Speaker 2: They have people we talk to are always so bright, 176 00:07:41,960 --> 00:07:44,720 Speaker 2: so well educated, they know the issues, and then when 177 00:07:44,760 --> 00:07:47,960 Speaker 2: you see these men and women on TV, they're just 178 00:07:48,760 --> 00:07:49,400 Speaker 2: the worst. 179 00:07:49,560 --> 00:07:51,880 Speaker 1: They have to be Like what has to get elected 180 00:07:51,920 --> 00:07:54,160 Speaker 1: by the American exactly like what happened? 181 00:07:54,280 --> 00:07:56,680 Speaker 2: Don't this staff like Spoon feed them what to say, 182 00:07:56,720 --> 00:07:59,960 Speaker 2: what questions they ask? How did they come across so bad? 183 00:08:00,360 --> 00:08:02,240 Speaker 4: I'll say that, you know, I think that the Congress 184 00:08:02,280 --> 00:08:04,679 Speaker 4: reflects the mood of the American people that at that time. 185 00:08:04,760 --> 00:08:05,720 Speaker 6: Yea, I guess that's so. 186 00:08:05,760 --> 00:08:07,120 Speaker 4: I think that that's you know, I think that the 187 00:08:07,120 --> 00:08:09,120 Speaker 4: American people get the House represents they want in the 188 00:08:09,200 --> 00:08:12,120 Speaker 4: sense they want at the time. And of course we 189 00:08:12,200 --> 00:08:14,360 Speaker 4: have a little bit of a shorter, a longer fuse 190 00:08:14,400 --> 00:08:16,480 Speaker 4: on the presidency, right, So, but yeah, I think it's 191 00:08:16,480 --> 00:08:18,760 Speaker 4: going to be interesting to see how this next election happens. 192 00:08:18,760 --> 00:08:20,760 Speaker 4: I think there's you know, there's a lot of variables 193 00:08:20,760 --> 00:08:22,960 Speaker 4: at play, and there's significant issues. 194 00:08:23,040 --> 00:08:26,679 Speaker 6: Do you appine on potential election outcomes for your clients? 195 00:08:27,480 --> 00:08:30,800 Speaker 4: Everyone wants to know, right, and it matters, I mean, right, 196 00:08:31,040 --> 00:08:34,840 Speaker 4: the policy under Republican or Democratic administration is going to change, 197 00:08:34,880 --> 00:08:36,640 Speaker 4: you know, And of course then it matters if it's 198 00:08:36,640 --> 00:08:39,200 Speaker 4: Trump or Haley or someone else in the Republican side, 199 00:08:40,040 --> 00:08:42,280 Speaker 4: or if it's Biden another Democrat on the Democratic side. 200 00:08:42,280 --> 00:08:44,880 Speaker 4: And so yeah, absolutely, I think that there's you know, 201 00:08:44,960 --> 00:08:47,800 Speaker 4: significant issues. But I believe though that if the economy 202 00:08:47,880 --> 00:08:51,000 Speaker 4: is such a central component of the election. 203 00:08:50,760 --> 00:08:53,599 Speaker 5: In twenty twenty four, and we are in a downturn. 204 00:08:54,200 --> 00:08:55,880 Speaker 4: Likely it's it's a bad time to be in a 205 00:08:55,920 --> 00:08:58,800 Speaker 4: cumbent in DC at that time, and so i'd likely 206 00:08:58,880 --> 00:09:01,720 Speaker 4: see a wholesale chain. I think the House maker Democrat 207 00:09:01,760 --> 00:09:04,360 Speaker 4: that House Senate to makeover republicand and perhaps when may 208 00:09:04,360 --> 00:09:04,920 Speaker 4: see your republic. 209 00:09:05,160 --> 00:09:08,800 Speaker 1: Having gone to the Thunderbird School of Global Management, do 210 00:09:08,840 --> 00:09:11,199 Speaker 1: you have any advice for Duke on how to play basketball. 211 00:09:13,440 --> 00:09:16,319 Speaker 4: I have friends, I have friends everywhere, So I'm just 212 00:09:16,360 --> 00:09:17,320 Speaker 4: gonna set up my hands on the. 213 00:09:18,640 --> 00:09:22,680 Speaker 1: You'll talk politics, talk as you more fun or UCSB. 214 00:09:23,280 --> 00:09:27,080 Speaker 5: Oh gosh, that's a really good question, Barbara. At least 215 00:09:27,040 --> 00:09:30,920 Speaker 5: we're underground. I think there's you're not very far from 216 00:09:30,960 --> 00:09:32,760 Speaker 5: the beach and any anywhere on that campus. 217 00:09:32,760 --> 00:09:35,560 Speaker 6: So all right, Chris, thanks so much for joining us. 218 00:09:35,600 --> 00:09:39,439 Speaker 2: Chris Camber, he's a chief strategist at Kroll, talks about 219 00:09:39,440 --> 00:09:40,880 Speaker 2: this market in politics. 220 00:09:41,920 --> 00:09:45,319 Speaker 7: You're listening to the team Can's are live program Bloomberg 221 00:09:45,400 --> 00:09:48,800 Speaker 7: Markets weekdays at ten am Eastern on Bloomberg dot com, 222 00:09:48,840 --> 00:09:51,960 Speaker 7: the iHeartRadio app, and the Bloomberg Business app, or listen 223 00:09:52,040 --> 00:09:54,160 Speaker 7: on demand wherever you get your podcasts. 224 00:09:55,640 --> 00:09:56,840 Speaker 6: We're joined by Norma Chu. 225 00:09:57,160 --> 00:10:00,480 Speaker 2: She is the CEO of Day Day Cook the New 226 00:10:00,559 --> 00:10:04,199 Speaker 2: York stocker change symbols D is David d C. When 227 00:10:04,240 --> 00:10:06,679 Speaker 2: public today sold three point nine million shares at eight 228 00:10:06,720 --> 00:10:08,880 Speaker 2: dollars and fifty cents to share. The stocks traininger around 229 00:10:08,920 --> 00:10:11,880 Speaker 2: six dollars right now, Norma, thanks so much for joining 230 00:10:11,960 --> 00:10:13,880 Speaker 2: us on a busy day for you guys. Can you 231 00:10:13,880 --> 00:10:17,320 Speaker 2: tell our audience kind of what Day Day Cook is? 232 00:10:17,360 --> 00:10:19,720 Speaker 2: What do you guys do over there? Sure? 233 00:10:19,800 --> 00:10:22,680 Speaker 3: Hi, thanks for having me today. You know, I started 234 00:10:22,679 --> 00:10:25,240 Speaker 3: the business about twelve years ago, and the whole concept 235 00:10:25,280 --> 00:10:27,240 Speaker 3: was really to create a platform and brand that can 236 00:10:27,320 --> 00:10:30,560 Speaker 3: encourage a younger generation to enjoy cooking at home. And 237 00:10:30,679 --> 00:10:33,120 Speaker 3: right now. We are a food innovator and we own 238 00:10:33,160 --> 00:10:36,040 Speaker 3: a portfolio of brands, and all of our brands basically 239 00:10:36,080 --> 00:10:39,520 Speaker 3: provide ready to cook and ready to heat product solutions. 240 00:10:40,040 --> 00:10:42,640 Speaker 3: We also do a lot of social media marketing, building 241 00:10:42,640 --> 00:10:45,880 Speaker 3: brands and promoting products and also engaging with our customers. 242 00:10:46,440 --> 00:10:49,600 Speaker 1: All right, so I have been cooking a lot this year. 243 00:10:49,800 --> 00:10:52,199 Speaker 1: What do you have for me? What are the products? 244 00:10:52,520 --> 00:10:53,760 Speaker 1: Give us some examples? 245 00:10:54,280 --> 00:10:57,920 Speaker 3: Sure, you know, since even though I'd started the business 246 00:10:57,920 --> 00:11:00,680 Speaker 3: out of Hong Kong a long time ago, so last 247 00:11:00,720 --> 00:11:03,280 Speaker 3: year we started looking into the US market. This year 248 00:11:03,280 --> 00:11:06,080 Speaker 3: we just completed our very first acquisition of a brand 249 00:11:06,080 --> 00:11:09,560 Speaker 3: called Nona Limb. So Nona Limb you can find her 250 00:11:09,600 --> 00:11:13,280 Speaker 3: products right now in Whole Foods, Kroger, Target, and also 251 00:11:13,760 --> 00:11:17,720 Speaker 3: a wide selection of online e commerce platform. You can 252 00:11:17,760 --> 00:11:21,000 Speaker 3: probably try some of our noodle starter kits and also 253 00:11:21,040 --> 00:11:24,480 Speaker 3: a variety of phone broths. Coming up next, we do 254 00:11:24,600 --> 00:11:27,679 Speaker 3: have a shelf stable, clean label cup noodle coming to 255 00:11:27,760 --> 00:11:30,360 Speaker 3: the market, so hopefully you enjoy those as well. 256 00:11:30,920 --> 00:11:34,760 Speaker 2: So talk to us about how your business, I guess 257 00:11:34,920 --> 00:11:37,920 Speaker 2: was impacted during the pandemic because I would think everybody 258 00:11:38,160 --> 00:11:40,440 Speaker 2: was cooking at home and there's a lot of demand 259 00:11:40,520 --> 00:11:44,000 Speaker 2: for you know, easier ways to cook at home. How 260 00:11:44,000 --> 00:11:45,440 Speaker 2: did that impact your business? 261 00:11:45,840 --> 00:11:48,360 Speaker 3: Yeah, that is so true. You know, I started about 262 00:11:48,400 --> 00:11:50,520 Speaker 3: ten years ago, and at that time, I think a 263 00:11:50,520 --> 00:11:53,760 Speaker 3: lot of people still wonder, you know, will the younger 264 00:11:53,800 --> 00:11:57,120 Speaker 3: generation enjoy cooking at home? But since the past few years, 265 00:11:57,160 --> 00:11:59,040 Speaker 3: I think there are a lot of different trends that 266 00:11:59,080 --> 00:12:01,920 Speaker 3: we're seeing is really driving the growth of our market. 267 00:12:02,160 --> 00:12:04,960 Speaker 3: The first one is really structural change and consumer behavior. 268 00:12:05,240 --> 00:12:07,200 Speaker 3: I think a lot of younger consumer now do you 269 00:12:07,240 --> 00:12:08,959 Speaker 3: want to cook at home? But you know they want 270 00:12:08,960 --> 00:12:13,000 Speaker 3: a convenient, delicious meal with minimal effort. Second thing, you know, 271 00:12:13,040 --> 00:12:16,680 Speaker 3: I think is really the whole work at home social trend. 272 00:12:16,880 --> 00:12:19,319 Speaker 3: So in general, a lot of families are cooking probably six, 273 00:12:19,400 --> 00:12:21,760 Speaker 3: seven or eight more meals at home now and that's 274 00:12:21,800 --> 00:12:24,280 Speaker 3: also really helping you know, our space and really driving 275 00:12:24,320 --> 00:12:25,960 Speaker 3: the growth that we're seeing. 276 00:12:26,600 --> 00:12:29,319 Speaker 1: How have you dealt with food inflation? Are your input 277 00:12:29,360 --> 00:12:32,920 Speaker 1: costs continuing to rise or have you seen the turnaround? 278 00:12:34,000 --> 00:12:35,640 Speaker 3: Well, the good thing is, you know, we are an 279 00:12:35,679 --> 00:12:38,080 Speaker 3: asset light model, so we work with a number of 280 00:12:38,160 --> 00:12:41,480 Speaker 3: you know, manufacturers and experienced partners, so that gives us 281 00:12:41,480 --> 00:12:43,560 Speaker 3: a little bit of flexibility in terms of you know, 282 00:12:43,640 --> 00:12:46,720 Speaker 3: sourcing and manufacturing. And the beauty is, you know, this 283 00:12:46,840 --> 00:12:49,800 Speaker 3: year and looking ahead, we do have a very aggressive 284 00:12:49,840 --> 00:12:53,080 Speaker 3: plan in terms of growing internationally. And the nice thing is, 285 00:12:53,080 --> 00:12:55,439 Speaker 3: you know, in markets like the US, Europe and other 286 00:12:55,480 --> 00:12:57,960 Speaker 3: parts of the world, we are seeing such strong demand 287 00:12:58,080 --> 00:13:00,679 Speaker 3: for our product which really enable us to price our 288 00:13:00,720 --> 00:13:04,720 Speaker 3: products with healthier margin. So that's also having a positive 289 00:13:04,760 --> 00:13:06,120 Speaker 3: impact on our business. 290 00:13:06,480 --> 00:13:09,520 Speaker 2: So geographically, where where do you do business these days? 291 00:13:09,559 --> 00:13:11,440 Speaker 2: And what's kind of your your future look like. 292 00:13:12,480 --> 00:13:14,960 Speaker 3: Yeah, so I started in Hong Kong and twenty twelve 293 00:13:15,000 --> 00:13:18,000 Speaker 3: and then we're expanding into mainland, trying to market did 294 00:13:18,120 --> 00:13:20,360 Speaker 3: not last year we started looking into the US and 295 00:13:20,400 --> 00:13:22,960 Speaker 3: this year with the very first acquisition that we just completed. 296 00:13:23,160 --> 00:13:25,679 Speaker 3: So we all look targeting about ten to fifteen percent 297 00:13:25,679 --> 00:13:28,040 Speaker 3: of revenue coming out of the US market this year 298 00:13:28,720 --> 00:13:31,079 Speaker 3: and looking ahead, you know, we're targeting you know, thirty 299 00:13:31,120 --> 00:13:33,960 Speaker 3: percent in three years time, fifty percent in five years 300 00:13:34,040 --> 00:13:35,600 Speaker 3: time of international sales. 301 00:13:36,760 --> 00:13:39,520 Speaker 2: So I'm just looking at your stock again, six dollars 302 00:13:39,559 --> 00:13:42,000 Speaker 2: you share? It went public this morning at eight dollars 303 00:13:42,000 --> 00:13:44,480 Speaker 2: and fifty cents. Any idea what's kind of pushing the 304 00:13:44,480 --> 00:13:46,320 Speaker 2: stock down here? If you heard from your your bankers 305 00:13:46,400 --> 00:13:46,840 Speaker 2: or anything. 306 00:13:47,760 --> 00:13:50,280 Speaker 3: Well, you know, I used to be a stock research analyst. 307 00:13:50,679 --> 00:13:53,960 Speaker 3: Night there you go, So I typically don't get to 308 00:13:54,200 --> 00:13:56,480 Speaker 3: hung up on a day to day you know, performance 309 00:13:56,480 --> 00:13:59,439 Speaker 3: of the stock. I'm more a fundamental research analyst, So 310 00:13:59,440 --> 00:14:02,160 Speaker 3: I would believe been focusing on our business plan, continue 311 00:14:02,160 --> 00:14:04,800 Speaker 3: to execute and the stock will just perform on its own. 312 00:14:05,080 --> 00:14:08,559 Speaker 1: And the proceeds, I guess are for acquisitions. That's how 313 00:14:08,679 --> 00:14:09,840 Speaker 1: you plan to expand. 314 00:14:10,800 --> 00:14:13,240 Speaker 3: That's right, a portion, a big portion of this continue 315 00:14:13,240 --> 00:14:16,160 Speaker 3: to drive business growth, and within our growth strategy really 316 00:14:16,240 --> 00:14:19,400 Speaker 3: is looking at M and A transactions, amine opportunities to 317 00:14:19,480 --> 00:14:23,200 Speaker 3: help us establish a more international footprint and also continue 318 00:14:23,200 --> 00:14:25,360 Speaker 3: to grow our multi brand product portfolio. 319 00:14:26,240 --> 00:14:29,120 Speaker 2: So I mean you talk about the younger folks, I 320 00:14:29,160 --> 00:14:31,960 Speaker 2: actually agree. I mean when I was younger, comingut of college, 321 00:14:32,000 --> 00:14:34,560 Speaker 2: it never cooked. But the kids today, maybe it's just 322 00:14:34,600 --> 00:14:36,000 Speaker 2: because of the pandemic. 323 00:14:36,760 --> 00:14:39,120 Speaker 6: I mean they're cooking and they're going all in. 324 00:14:39,600 --> 00:14:41,600 Speaker 1: I mean, yes, tradience. 325 00:14:41,800 --> 00:14:43,640 Speaker 2: I mean it's just I mean, is that kind of 326 00:14:44,200 --> 00:14:45,480 Speaker 2: kind of the market you're looking at. 327 00:14:46,640 --> 00:14:49,240 Speaker 3: Yeah, I mean it's just so exciting that now I 328 00:14:49,240 --> 00:14:51,640 Speaker 3: think the younger generation do feel cooking with a lot 329 00:14:51,640 --> 00:14:54,840 Speaker 3: of passion, and it just makes me so happy to 330 00:14:54,880 --> 00:14:56,720 Speaker 3: see that, because I mean, cooking has always been a 331 00:14:56,720 --> 00:14:59,160 Speaker 3: part passion for me. But you know, when I look 332 00:14:59,200 --> 00:15:01,400 Speaker 3: at this space, I think there's a lot of opportunity 333 00:15:01,440 --> 00:15:04,640 Speaker 3: in terms of creating clean label products. And there's also 334 00:15:04,640 --> 00:15:06,320 Speaker 3: one of the criteria that we look for when we 335 00:15:06,360 --> 00:15:09,520 Speaker 3: look at more growth opportunity because I think, you know, 336 00:15:09,760 --> 00:15:14,920 Speaker 3: traditionally some consumer might think that Asian food products may 337 00:15:14,920 --> 00:15:16,880 Speaker 3: be a little bit more processed, maybe a little bit 338 00:15:16,880 --> 00:15:19,480 Speaker 3: more heavy on the sodium. But if you look at 339 00:15:19,520 --> 00:15:21,760 Speaker 3: the product, the brand that we just recently acquired, which 340 00:15:21,800 --> 00:15:24,560 Speaker 3: is known a Limb once again available at Whole Foods, Target, 341 00:15:24,600 --> 00:15:27,960 Speaker 3: and Kroger, all of the products are clean label, so 342 00:15:28,160 --> 00:15:30,760 Speaker 3: we really care about the type of ingredients that we use, 343 00:15:31,120 --> 00:15:33,320 Speaker 3: you know, into our manufacturing process. 344 00:15:33,760 --> 00:15:35,640 Speaker 2: All right, thanks very much for joining us. Norma Cheu, 345 00:15:35,800 --> 00:15:38,200 Speaker 2: she's the CEO of Day Day Cook symbol d d 346 00:15:38,320 --> 00:15:39,200 Speaker 2: C is a ticker symbol. 347 00:15:39,200 --> 00:15:40,480 Speaker 6: They just went public today. 348 00:15:41,000 --> 00:15:43,000 Speaker 2: Going to be ringing the closing bell at the New 349 00:15:43,040 --> 00:15:46,120 Speaker 2: York Sock Exchange later today, So that's exciting for any 350 00:15:46,400 --> 00:15:48,480 Speaker 2: new company. We appreciate getting a few minutes of your time. 351 00:15:48,960 --> 00:15:52,080 Speaker 7: You're listening to the tape. Cans are live program Bloomberg 352 00:15:52,160 --> 00:15:55,720 Speaker 7: Markets weekdays at ten am Eastern on Bloomberg Radio, the 353 00:15:55,800 --> 00:15:59,040 Speaker 7: tune in app, Bloomberg dot Com, and the Bloomberg Business App. 354 00:15:59,080 --> 00:16:01,880 Speaker 7: You can also listen live on Amazon Alexa from our 355 00:16:01,920 --> 00:16:06,280 Speaker 7: flagship New York station, Just say Alexa play Bloomberg eleven thirty. 356 00:16:08,000 --> 00:16:08,960 Speaker 6: Kevin Tiny joins us. 357 00:16:08,960 --> 00:16:11,320 Speaker 2: He's a senior autosanalyst with Bloomborg Intelligence, so he can 358 00:16:11,400 --> 00:16:13,040 Speaker 2: join in on this conversation. 359 00:16:13,800 --> 00:16:16,760 Speaker 1: So Matt, I'm pretty are you driving? So first of all, 360 00:16:16,800 --> 00:16:20,040 Speaker 1: I told you before, I'm driving an affordable suv okay 361 00:16:21,160 --> 00:16:26,040 Speaker 1: that seems to be fairly solidly built. It's very green, 362 00:16:27,120 --> 00:16:31,480 Speaker 1: and it's got great tech and the brand is Ascendant 363 00:16:32,040 --> 00:16:35,760 Speaker 1: Sendent Ascendant. It's a brand that I think, well, this 364 00:16:35,800 --> 00:16:37,360 Speaker 1: is why I wanted Kevin to join us, because I 365 00:16:37,400 --> 00:16:39,360 Speaker 1: don't actually know how well they do, but I see 366 00:16:39,400 --> 00:16:41,360 Speaker 1: more and more of them on the road, and I 367 00:16:41,440 --> 00:16:44,120 Speaker 1: know that they have a really cool new logo. Yep, 368 00:16:44,240 --> 00:16:48,240 Speaker 1: like that, and I'm talking about Akia obviously the new 369 00:16:48,280 --> 00:16:50,320 Speaker 1: logo Sento. It's been a guys a couple of years 370 00:16:50,360 --> 00:16:52,040 Speaker 1: since they made that new logo, and I feel like 371 00:16:52,120 --> 00:16:56,040 Speaker 1: it allows a whole new customer to buy into the 372 00:16:56,080 --> 00:17:00,440 Speaker 1: story because it just is a way to break is 373 00:17:00,440 --> 00:17:01,840 Speaker 1: it Korean? To break from the past. 374 00:17:01,920 --> 00:17:02,160 Speaker 7: Yeah. 375 00:17:02,320 --> 00:17:04,240 Speaker 1: You know when they first came out Kias and Hyundai's, 376 00:17:04,359 --> 00:17:06,600 Speaker 1: you thought, okay, this is a great at twenty thousand 377 00:17:06,600 --> 00:17:08,479 Speaker 1: dollars a conobox, I can driver a few years till 378 00:17:08,520 --> 00:17:11,480 Speaker 1: it breaks. But now I think it's a very different story. Kevin, 379 00:17:11,800 --> 00:17:13,840 Speaker 1: let me bring you in here and get your take 380 00:17:13,920 --> 00:17:18,480 Speaker 1: on you know, the quality of these vehicles, the abilities 381 00:17:18,480 --> 00:17:23,040 Speaker 1: of these vehicles, and for example, the what's the uh oh, 382 00:17:23,119 --> 00:17:25,399 Speaker 1: the tell You Ride? The Kia Tell You Ride. I 383 00:17:25,400 --> 00:17:27,680 Speaker 1: feel like that could be cross shopped with a range 384 00:17:27,720 --> 00:17:29,879 Speaker 1: drover and it costs like a third the price. So 385 00:17:29,920 --> 00:17:30,880 Speaker 1: what do you think about Kia? 386 00:17:31,760 --> 00:17:35,680 Speaker 8: Yeah, you know, that is an interesting story because it's 387 00:17:36,440 --> 00:17:41,800 Speaker 8: you know, the the two brands, Hundai and Kia have 388 00:17:41,800 --> 00:17:45,200 Speaker 8: have moved from the entry and move up market to 389 00:17:45,800 --> 00:17:49,639 Speaker 8: higher price points and intensified their truck versus car mix. 390 00:17:49,920 --> 00:17:53,359 Speaker 8: You know, they were forty three percent truck as recent 391 00:17:53,440 --> 00:17:57,040 Speaker 8: as twenty eighteen. Now they're seventy percent. So just think 392 00:17:57,040 --> 00:18:00,480 Speaker 8: about what that's done for their average transaction price. There, margin, 393 00:18:01,040 --> 00:18:05,520 Speaker 8: profit and revenue contribution has been significantly strong, stronger than 394 00:18:05,520 --> 00:18:08,720 Speaker 8: it was when it was known as a countobox brand. 395 00:18:08,960 --> 00:18:13,040 Speaker 8: And what they did that transition was really motivated and 396 00:18:13,119 --> 00:18:15,919 Speaker 8: helped and advanced by the idea of the ten year, 397 00:18:15,920 --> 00:18:19,119 Speaker 8: one hundred thousand mile drive train warranty. Right, so they 398 00:18:19,160 --> 00:18:20,480 Speaker 8: had a wow. 399 00:18:20,280 --> 00:18:24,520 Speaker 1: Ten years and one hundred thousand miles on the drive trains. 400 00:18:24,600 --> 00:18:27,320 Speaker 1: Usually it's like three years and oh on the drive train. 401 00:18:27,359 --> 00:18:28,960 Speaker 1: So a lot of times those will be five years 402 00:18:29,000 --> 00:18:31,400 Speaker 1: and sixty thousand or something, right, yeah. 403 00:18:31,280 --> 00:18:35,640 Speaker 8: Right, So basically it gave people protection that said, you know, 404 00:18:36,160 --> 00:18:38,720 Speaker 8: if you have concerns about quality, here's how we're going 405 00:18:38,800 --> 00:18:41,040 Speaker 8: to deal with that. And it's the best warranty in 406 00:18:41,080 --> 00:18:44,760 Speaker 8: the industry. And then as they've moved up market, which 407 00:18:44,920 --> 00:18:47,080 Speaker 8: if you think even about Tesla, right, Tesla comes in 408 00:18:47,119 --> 00:18:49,320 Speaker 8: at the highest price points and then tries to move 409 00:18:49,359 --> 00:18:52,000 Speaker 8: down and every automaker tried to do that to gain 410 00:18:52,160 --> 00:18:55,119 Speaker 8: scale and volume. Think about Mercedes moving down market and 411 00:18:55,200 --> 00:18:58,280 Speaker 8: BMW moving down market. Hanikia did at the opposite, right, 412 00:18:58,320 --> 00:19:01,240 Speaker 8: they started at the bottom of the market, one loyal 413 00:19:01,280 --> 00:19:04,440 Speaker 8: customers at the entry and move up level. That warranty 414 00:19:04,560 --> 00:19:07,000 Speaker 8: was a big part of it. Proved their quality had 415 00:19:07,040 --> 00:19:10,680 Speaker 8: improved then and now there's even the Genesis brand, which 416 00:19:10,760 --> 00:19:13,720 Speaker 8: is legitimately competing at the higher end of the market 417 00:19:13,760 --> 00:19:14,440 Speaker 8: with the land rollers. 418 00:19:14,440 --> 00:19:19,720 Speaker 1: But Genesis is like, so Honda has what Acura and 419 00:19:19,800 --> 00:19:24,800 Speaker 1: Toyota has Infinity or Noon has Infinity, Toyota has Lexus, 420 00:19:24,880 --> 00:19:27,760 Speaker 1: and Genesis is like Hyundai's version of that. 421 00:19:28,480 --> 00:19:30,320 Speaker 8: Yeah, because what happened was, you know, there was a 422 00:19:30,359 --> 00:19:34,520 Speaker 8: period where Hyundai Kiya came out with full Sisiedan's to 423 00:19:34,600 --> 00:19:38,840 Speaker 8: compete with seven series BMW or S class Mercedes, and 424 00:19:38,880 --> 00:19:40,760 Speaker 8: people kind of laughed it off, like, there's no way 425 00:19:40,800 --> 00:19:43,679 Speaker 8: I'm spending seventy five eighty thousand dollars for a K 426 00:19:43,800 --> 00:19:46,520 Speaker 8: nine hundred Kio or or a Hyundai Equis. 427 00:19:47,240 --> 00:19:49,480 Speaker 1: They wouldn't even do it for Volkswagen Phaeton. 428 00:19:49,720 --> 00:19:51,879 Speaker 8: Right, So they created this new brand and put all 429 00:19:51,920 --> 00:19:53,760 Speaker 8: the high end stuff in there, and it's actually worked 430 00:19:53,800 --> 00:19:56,760 Speaker 8: pretty well. My wife will believe it or not, and 431 00:19:57,600 --> 00:19:59,919 Speaker 8: she's a kind of strange not car per. 432 00:20:01,720 --> 00:20:03,560 Speaker 1: Only your wife's not listening. 433 00:20:04,000 --> 00:20:05,960 Speaker 8: Only by she will. 434 00:20:05,760 --> 00:20:09,840 Speaker 1: Only really really, so she must be very happy about 435 00:20:09,840 --> 00:20:11,159 Speaker 1: the progress they've made. 436 00:20:11,280 --> 00:20:14,520 Speaker 8: You mentioned Tell your Ride, So she has a palisade calligraphy, 437 00:20:14,560 --> 00:20:17,200 Speaker 8: and it's almost like you can load that thing up 438 00:20:17,240 --> 00:20:20,159 Speaker 8: with every piece of technology and the warranty and the 439 00:20:20,160 --> 00:20:22,880 Speaker 8: whole thing, and you're still at a very very reasonable 440 00:20:22,920 --> 00:20:23,560 Speaker 8: price point. 441 00:20:23,680 --> 00:20:25,880 Speaker 1: And they look awesome. I mean, you must have seen 442 00:20:25,920 --> 00:20:28,520 Speaker 1: the Kia Tell your Rides. Oh yeah, yeah, such cool 443 00:20:28,520 --> 00:20:32,320 Speaker 1: looking vehicles. Now the Sorrento doesn't look quite as cool, 444 00:20:32,760 --> 00:20:35,880 Speaker 1: but it's got great features. For example, since it's a hybrid, 445 00:20:36,200 --> 00:20:38,439 Speaker 1: there's a button, a physical button you can press to 446 00:20:38,440 --> 00:20:43,600 Speaker 1: switch from full EV to hybrid EV. Or when I'm turning, 447 00:20:43,800 --> 00:20:47,359 Speaker 1: when you're turning left and you can't obviously there's a 448 00:20:47,359 --> 00:20:51,199 Speaker 1: blind spot, but a screen in your dashboard shows you 449 00:20:51,240 --> 00:20:54,040 Speaker 1: what's in your blind spot. Same when you're obviously turning right, 450 00:20:55,240 --> 00:20:58,240 Speaker 1: and it's got a center locking diff like it's got 451 00:20:58,320 --> 00:21:02,200 Speaker 1: torque vectoring. What you can lock the center diff what's 452 00:21:02,200 --> 00:21:05,879 Speaker 1: the differential, what's in case you're so that the wheels 453 00:21:05,920 --> 00:21:08,080 Speaker 1: can move at different speeds, but if you're stuck in 454 00:21:08,080 --> 00:21:09,640 Speaker 1: a place, you can make them all move the same 455 00:21:09,680 --> 00:21:12,320 Speaker 1: speed so that you can get better traction. It's got 456 00:21:12,320 --> 00:21:15,040 Speaker 1: torque vectoring all wheel drive, which is I first heard 457 00:21:15,080 --> 00:21:16,800 Speaker 1: about torque vectoring when I was a kid, I think 458 00:21:17,160 --> 00:21:20,280 Speaker 1: reading roadent Track about a Porsche. So it's pretty impressive 459 00:21:20,320 --> 00:21:24,440 Speaker 1: that Kia has this technology. I mean, really the price point, Matt, 460 00:21:25,000 --> 00:21:27,600 Speaker 1: I think it's fifty thousand for the loaded up one 461 00:21:27,840 --> 00:21:31,400 Speaker 1: for the top top trim, and then. 462 00:21:31,280 --> 00:21:33,359 Speaker 8: If you think forty eight thousand is average in the 463 00:21:33,400 --> 00:21:36,240 Speaker 8: industry these days, So you know right there and you're 464 00:21:36,280 --> 00:21:39,000 Speaker 8: and that's the point, is that bang for the buck, 465 00:21:39,119 --> 00:21:41,800 Speaker 8: it's you're getting all the technology now. 466 00:21:41,960 --> 00:21:44,119 Speaker 1: They don't correct me if I'm wrong, Kevin, But they 467 00:21:44,160 --> 00:21:49,520 Speaker 1: don't get a tax credit on the green vehicles like 468 00:21:49,680 --> 00:21:52,679 Speaker 1: a Ford or a GM would, right, because they're not 469 00:21:52,720 --> 00:21:54,680 Speaker 1: a union shop, not made in the US, all of them. 470 00:21:54,720 --> 00:21:57,640 Speaker 8: So the story rules of right, the rules of origin 471 00:21:57,720 --> 00:22:00,760 Speaker 8: of the components, and things like that. I don't have 472 00:22:00,880 --> 00:22:03,160 Speaker 8: to believe it or not list memorized off the top 473 00:22:03,200 --> 00:22:04,800 Speaker 8: of my head, but I believe that would be currect. 474 00:22:04,880 --> 00:22:07,320 Speaker 1: I pretty much do so, Kevin. 475 00:22:08,280 --> 00:22:11,000 Speaker 2: Are the Korean and Japanese automakers. Are they as committed 476 00:22:11,000 --> 00:22:14,480 Speaker 2: to evs as I don't know some of the others. 477 00:22:14,480 --> 00:22:16,320 Speaker 2: I mean, it just seems give us a sense of 478 00:22:16,359 --> 00:22:17,120 Speaker 2: where those guys are. 479 00:22:17,920 --> 00:22:23,879 Speaker 8: Yeah, they've been slower. Look, Khandaikia have EV five, EV six, 480 00:22:24,480 --> 00:22:28,399 Speaker 8: Ionic five, so they they sort of rushed into the 481 00:22:28,480 --> 00:22:31,440 Speaker 8: segment a little bit. But what's interesting with some winners. 482 00:22:31,520 --> 00:22:34,480 Speaker 1: I mean, the Ionic five looks cool. The EV six 483 00:22:34,600 --> 00:22:37,440 Speaker 1: is fast. I made my buddy Mark White throw up 484 00:22:37,520 --> 00:22:39,760 Speaker 1: by accelerating so quickly in that thing. 485 00:22:41,200 --> 00:22:44,320 Speaker 8: But the thing with that is that what's interesting is 486 00:22:44,359 --> 00:22:47,320 Speaker 8: that when you look at average transaction action price across 487 00:22:47,359 --> 00:22:51,520 Speaker 8: the brands, it's in the high thirties, right, so below 488 00:22:51,600 --> 00:22:54,200 Speaker 8: the industry average but then when you look at their evs, 489 00:22:54,240 --> 00:22:57,040 Speaker 8: they're in the they're above fifty thousand dollars, so it's 490 00:22:57,080 --> 00:22:59,520 Speaker 8: the it's a way for them to sort of move 491 00:22:59,600 --> 00:23:03,320 Speaker 8: up more. Mart I don't think they're contented the way 492 00:23:03,520 --> 00:23:07,240 Speaker 8: say a fifty plus thousand dollars tell your ride or 493 00:23:07,480 --> 00:23:11,159 Speaker 8: palisade would be. But people are willing to buy, or 494 00:23:11,160 --> 00:23:14,320 Speaker 8: at least they were until very recently, willing to pay 495 00:23:14,400 --> 00:23:18,080 Speaker 8: up for the electric versions of some of the Handaikia stuff. 496 00:23:18,720 --> 00:23:21,800 Speaker 8: We'll have to see how sustainable that demand is going forward, 497 00:23:22,440 --> 00:23:24,920 Speaker 8: but it's very interesting that you know, that's an automaker 498 00:23:24,960 --> 00:23:28,040 Speaker 8: that's known for and that's Look, that's a risk for 499 00:23:28,080 --> 00:23:29,920 Speaker 8: the gm and Fords of the world. As they move 500 00:23:29,960 --> 00:23:33,480 Speaker 8: their average transaction price above fifty thousand dollars, above the 501 00:23:33,480 --> 00:23:36,960 Speaker 8: industry average, you're really squeezing out the entry and move 502 00:23:37,040 --> 00:23:39,520 Speaker 8: up buyer, and you're and you're saying like, hey, look, 503 00:23:39,520 --> 00:23:42,399 Speaker 8: if you're not really ready to spend, we don't have 504 00:23:42,520 --> 00:23:47,359 Speaker 8: product for you. And that's where the Asia based manufacturers Handaikea, Toyota, 505 00:23:47,400 --> 00:23:49,960 Speaker 8: Honda sort of moved down mark and they say, well, 506 00:23:50,160 --> 00:23:52,119 Speaker 8: we're willing to take you, even if it means losing 507 00:23:52,160 --> 00:23:55,199 Speaker 8: money on those entry level vehicles because we believe that 508 00:23:55,240 --> 00:23:57,560 Speaker 8: we'll give you a good enough ownership experience that you'll 509 00:23:57,600 --> 00:24:00,840 Speaker 8: stay with us up through the portfolio until you are 510 00:24:00,880 --> 00:24:03,639 Speaker 8: ready to spend some money maybe in the Lexus brand 511 00:24:03,760 --> 00:24:05,400 Speaker 8: or Infinity or or. 512 00:24:05,520 --> 00:24:08,280 Speaker 2: I mean the four f one fifty the most popular 513 00:24:08,359 --> 00:24:09,919 Speaker 2: vehicle out there in the American roads. 514 00:24:10,280 --> 00:24:12,359 Speaker 6: I mean, what is that list for and can the 515 00:24:12,440 --> 00:24:13,520 Speaker 6: average person. 516 00:24:13,640 --> 00:24:14,720 Speaker 1: Get in a one for thirty? 517 00:24:14,920 --> 00:24:16,919 Speaker 2: You can get into a Ford f one fifty for thirty. 518 00:24:17,040 --> 00:24:20,760 Speaker 1: Yeah, but that's the lowest trim level. You know, Zach 519 00:24:20,840 --> 00:24:23,440 Speaker 1: drove the E one at nineteen one hundred thousand. My 520 00:24:23,800 --> 00:24:27,800 Speaker 1: question is this, you can get so the Sorrento. You 521 00:24:27,800 --> 00:24:30,879 Speaker 1: can get into a BMW X three for a comparable price. 522 00:24:30,960 --> 00:24:33,919 Speaker 1: But I've seen people put BMW's up on lifts and 523 00:24:33,960 --> 00:24:37,479 Speaker 1: they're like over engineered. They're so focused on stiffness and 524 00:24:37,520 --> 00:24:42,199 Speaker 1: the driving experience. And I guess that has to do 525 00:24:42,800 --> 00:24:45,600 Speaker 1: like in order to achieve that, you need the longevity, 526 00:24:45,600 --> 00:24:48,719 Speaker 1: you need the experience in production, right, Kia and Hundai 527 00:24:48,720 --> 00:24:49,800 Speaker 1: they're just not there yet. 528 00:24:50,560 --> 00:24:53,880 Speaker 8: Yeah, I look, I you know, I think there's a 529 00:24:54,000 --> 00:24:55,840 Speaker 8: you know, as a buyer, you would think about do 530 00:24:55,920 --> 00:24:58,960 Speaker 8: I want to buy you know, the the lower end 531 00:24:59,000 --> 00:25:02,440 Speaker 8: models of premium brand or do I want to buy 532 00:25:02,440 --> 00:25:06,280 Speaker 8: the completely loaded version of a volume brand. And that's 533 00:25:06,880 --> 00:25:08,919 Speaker 8: you know, that's kind of the debate, right, So a 534 00:25:09,000 --> 00:25:13,640 Speaker 8: decontented X three versus a loaded Sorrento or you know, 535 00:25:13,760 --> 00:25:16,639 Speaker 8: and and people will have different opinions on that, but 536 00:25:17,080 --> 00:25:19,960 Speaker 8: you know, you feel like even the ownership experience or 537 00:25:19,960 --> 00:25:23,000 Speaker 8: dealing with the dealerships when you are you know, the 538 00:25:23,000 --> 00:25:25,280 Speaker 8: big cheese when you roll it into you know, into 539 00:25:25,320 --> 00:25:28,720 Speaker 8: the dealership or into the service bay, is like, Hey, 540 00:25:28,760 --> 00:25:31,200 Speaker 8: this is the this is the owner that's spent up 541 00:25:31,240 --> 00:25:34,959 Speaker 8: for everything as opposed to being at the bottom of 542 00:25:35,000 --> 00:25:38,399 Speaker 8: the of the portfolio with a low content vehicle. 543 00:25:38,640 --> 00:25:40,320 Speaker 6: Matt's in there with the Kia Sorrento. I got the 544 00:25:40,320 --> 00:25:41,440 Speaker 6: BMW X three. 545 00:25:41,320 --> 00:25:42,600 Speaker 1: You got the overloaded X three. 546 00:25:42,640 --> 00:25:44,640 Speaker 2: I'm actually and Kevin, next time I'm done in person, 547 00:25:44,760 --> 00:25:46,200 Speaker 2: I'll show you the x X three. 548 00:25:46,240 --> 00:25:48,040 Speaker 6: It's good stuff. I'm very happy with it. 549 00:25:48,440 --> 00:25:50,600 Speaker 2: That's Kevin Tiny and he covers all the autos for 550 00:25:50,760 --> 00:25:52,600 Speaker 2: Bloomberg Intelligence at Real Gearhead. 551 00:25:53,000 --> 00:25:56,119 Speaker 7: You're listening to the tape. Can's are live program Bloomberg 552 00:25:56,160 --> 00:26:00,960 Speaker 7: Markets weekdays at ten am Eastern on Bloomberg Radio, Bloomberg 553 00:26:01,040 --> 00:26:03,600 Speaker 7: dot Com, and the Bloomberg Business App. You can also 554 00:26:03,680 --> 00:26:07,200 Speaker 7: listen live on Amazon Alexa from our flagship New York station, 555 00:26:07,560 --> 00:26:11,000 Speaker 7: Just say Alexa play Bloomberg eleven thirty. 556 00:26:12,160 --> 00:26:16,240 Speaker 2: We have Dana Tellsley in studio. She's got her own firm, 557 00:26:16,359 --> 00:26:18,080 Speaker 2: Dana Telsey. She kind of runs out and I'll tell 558 00:26:18,080 --> 00:26:19,639 Speaker 2: you what not. Only is she one of the best 559 00:26:19,680 --> 00:26:22,320 Speaker 2: analysts covering retail on Wall Street, and that's been proven 560 00:26:22,359 --> 00:26:25,159 Speaker 2: by all the polls and magazines over the years. But 561 00:26:25,200 --> 00:26:27,600 Speaker 2: what I admire most is she's left a big wall 562 00:26:27,600 --> 00:26:30,960 Speaker 2: Streem bank set up her own shop when that was 563 00:26:31,000 --> 00:26:35,000 Speaker 2: pretty rare at the time. So I remember, and that's 564 00:26:35,080 --> 00:26:35,560 Speaker 2: number one. 565 00:26:35,640 --> 00:26:36,320 Speaker 7: It was rare. 566 00:26:36,320 --> 00:26:38,880 Speaker 2: At number two, she's been successful at it even more 567 00:26:39,000 --> 00:26:41,000 Speaker 2: rare because I've seen a lot of folks that are 568 00:26:41,040 --> 00:26:43,639 Speaker 2: highly ranked leave the big seat. 569 00:26:43,440 --> 00:26:45,560 Speaker 6: Go set up a shop and it just doesn't work. 570 00:26:45,600 --> 00:26:47,440 Speaker 1: But she makes it work enough with the flattery. 571 00:26:47,560 --> 00:26:48,200 Speaker 6: It's good stuff. 572 00:26:48,320 --> 00:26:50,600 Speaker 1: By the way, Dana, I heard a stocks reporter on 573 00:26:50,640 --> 00:26:52,919 Speaker 1: the other side of the office call you a genius today. 574 00:26:53,119 --> 00:26:54,920 Speaker 9: Oh, thank you, thank you very much. 575 00:26:54,960 --> 00:26:57,560 Speaker 1: So interesting. Yeah, there you go. So I think you 576 00:26:57,600 --> 00:27:00,440 Speaker 1: can top that. So why, let's first ask the question, 577 00:27:00,480 --> 00:27:03,120 Speaker 1: because this is the first earning season I've really noticed 578 00:27:03,240 --> 00:27:05,480 Speaker 1: how many of the retailers are at the back end 579 00:27:05,720 --> 00:27:09,199 Speaker 1: of the earnings calendar, and is there a reason for that? 580 00:27:09,400 --> 00:27:11,960 Speaker 1: Is that just traditional tradition? 581 00:27:12,040 --> 00:27:15,080 Speaker 9: I mean, typically retailers are on a January fiscal year end, 582 00:27:15,160 --> 00:27:18,239 Speaker 9: and the reason why is because December is typically one 583 00:27:18,280 --> 00:27:21,160 Speaker 9: of their busiest months, so you need the month after 584 00:27:21,280 --> 00:27:24,119 Speaker 9: January in order to put everything together. Plus you got 585 00:27:24,160 --> 00:27:26,320 Speaker 9: to get rid of the returns in January, so you 586 00:27:26,440 --> 00:27:28,880 Speaker 9: really know what your inventory looks like at the end 587 00:27:28,880 --> 00:27:31,760 Speaker 9: of January going into the following fiscal year. 588 00:27:31,840 --> 00:27:33,000 Speaker 6: And you just thought they were lazy. 589 00:27:33,080 --> 00:27:35,040 Speaker 9: I don't know, They're not lazy, all. 590 00:27:34,960 --> 00:27:35,359 Speaker 6: Right, Dannis. 591 00:27:35,400 --> 00:27:37,280 Speaker 2: So we've had we're kind of getting through the meat 592 00:27:37,320 --> 00:27:40,080 Speaker 2: of this most recent quarterly earnings period. What were your 593 00:27:40,119 --> 00:27:43,800 Speaker 2: takeaways from the quarter itself and more importantly looking forward 594 00:27:43,840 --> 00:27:44,320 Speaker 2: a little bit. 595 00:27:44,440 --> 00:27:46,960 Speaker 9: I think the big picture takeaway overall is that we 596 00:27:47,040 --> 00:27:50,120 Speaker 9: have a very discerning consumer, that we have a consumer 597 00:27:50,119 --> 00:27:53,639 Speaker 9: who's moderated their spend at almost all income levels. And 598 00:27:53,680 --> 00:27:57,080 Speaker 9: what we're seeing is that retailers the execution has improved 599 00:27:57,440 --> 00:28:01,200 Speaker 9: everyone's inventory levels are clean, cleaner than what they were 600 00:28:01,760 --> 00:28:03,480 Speaker 9: At the same time, We're going to have a more 601 00:28:03,520 --> 00:28:07,399 Speaker 9: promotional holiday season this year is compared to last and 602 00:28:07,440 --> 00:28:10,720 Speaker 9: when you look at the cadence so far, October sales 603 00:28:10,960 --> 00:28:14,440 Speaker 9: growth was slower than September by around one hundred bases 604 00:28:14,480 --> 00:28:18,359 Speaker 9: points or so, and going into November it's remaining the 605 00:28:18,400 --> 00:28:21,959 Speaker 9: same as October. Consumers are waiting for big events, and 606 00:28:22,000 --> 00:28:24,040 Speaker 9: we know that a lot of the discounting because it's 607 00:28:24,040 --> 00:28:26,640 Speaker 9: more promotional this year than last year, even though still 608 00:28:26,680 --> 00:28:29,720 Speaker 9: less than twenty nineteen. But what we do know is 609 00:28:29,720 --> 00:28:32,080 Speaker 9: they wait for the events. We had Prime Day in October, 610 00:28:32,520 --> 00:28:34,720 Speaker 9: Black Friday isn't going to be what it used to be, 611 00:28:35,040 --> 00:28:38,560 Speaker 9: and with Christmas falling on a Monday, the procrastinators can 612 00:28:38,640 --> 00:28:43,880 Speaker 9: wait until Saturday and Sunday. 613 00:28:42,200 --> 00:28:44,920 Speaker 1: So more promotional this year than last year. I keep 614 00:28:44,960 --> 00:28:49,400 Speaker 1: seeing in earnings releases that they're controlling inventory well or 615 00:28:49,640 --> 00:28:53,040 Speaker 1: you know, if sales fall, at least they're managing their inventory. 616 00:28:53,680 --> 00:28:56,200 Speaker 1: Why are they going to be discounting couple. 617 00:28:55,960 --> 00:28:58,320 Speaker 9: Things you need to discount in order to drive the 618 00:28:58,360 --> 00:29:01,360 Speaker 9: consumer to get them to convert. Last year, you had 619 00:29:01,680 --> 00:29:05,000 Speaker 9: too much inventory in many instances given the supply chain 620 00:29:05,040 --> 00:29:08,160 Speaker 9: issues that you had, and right now some of the 621 00:29:08,200 --> 00:29:11,200 Speaker 9: price increases from inflation, they're undergoing a little bit of 622 00:29:11,240 --> 00:29:15,160 Speaker 9: a rollback. But the focus on experiences versus goods. We 623 00:29:15,240 --> 00:29:18,000 Speaker 9: all know what Taylor Swift did during the summer in 624 00:29:18,080 --> 00:29:20,640 Speaker 9: terms of boosting span when she was here in the US. 625 00:29:21,400 --> 00:29:24,280 Speaker 9: You have to give the consumers not only the what 626 00:29:24,440 --> 00:29:26,720 Speaker 9: to buy, but the how to buy. And one of 627 00:29:26,720 --> 00:29:30,160 Speaker 9: the things we're seeing the retail experience, it's a social 628 00:29:30,240 --> 00:29:34,120 Speaker 9: experience too. So watch the physical stores. They're not going away. 629 00:29:34,280 --> 00:29:35,480 Speaker 2: That's kind of where I wanted to go because I 630 00:29:35,480 --> 00:29:37,239 Speaker 2: had a hard time getting to my subway last night 631 00:29:37,240 --> 00:29:40,040 Speaker 2: because out in front of Bloomingdale's they had a big 632 00:29:40,080 --> 00:29:42,280 Speaker 2: stage set up right in the middle of Electionton Avenue 633 00:29:42,560 --> 00:29:44,320 Speaker 2: and I think there's some Broadway show. 634 00:29:44,400 --> 00:29:45,960 Speaker 6: The casters can come and sing a song me. 635 00:29:46,080 --> 00:29:48,800 Speaker 1: So that's an event. Holiday windows there was a holiday Well. 636 00:29:48,720 --> 00:29:50,800 Speaker 2: Kay, there you go, thank you. I did make it 637 00:29:50,800 --> 00:29:53,960 Speaker 2: to the subway. So talk to us about the retail 638 00:29:54,000 --> 00:29:56,560 Speaker 2: store because there was a narrative that I bought into 639 00:29:56,600 --> 00:29:59,880 Speaker 2: that E commerces is going to replace everything, no more stores, 640 00:30:00,400 --> 00:30:01,080 Speaker 2: thing of the past. 641 00:30:01,480 --> 00:30:03,560 Speaker 6: Where are we today? In that thinking that was. 642 00:30:03,520 --> 00:30:06,160 Speaker 9: Pre pandemic, thinking yes, the pre pandemic, thinking of there 643 00:30:06,160 --> 00:30:08,480 Speaker 9: are too many stores and Amazon's going to take over 644 00:30:08,720 --> 00:30:11,680 Speaker 9: while pandemic happened, And look, Amazon didn't take over everything. 645 00:30:12,000 --> 00:30:14,400 Speaker 9: Too many stores, you bet. And we had a ton 646 00:30:14,440 --> 00:30:17,920 Speaker 9: of closures post the pandemic, so that now many retailers 647 00:30:17,920 --> 00:30:21,360 Speaker 9: store bases, they're more productive, they're in the right locations, 648 00:30:21,400 --> 00:30:23,800 Speaker 9: and they've even been resized a lot of them. And 649 00:30:23,880 --> 00:30:25,959 Speaker 9: the other narrative used to be, oh, there are too 650 00:30:26,000 --> 00:30:27,680 Speaker 9: many retailers, they need to go bankrupt. 651 00:30:27,800 --> 00:30:28,320 Speaker 1: Well they did. 652 00:30:28,360 --> 00:30:31,480 Speaker 9: We had ninety six consumer companies go bankrupt really right 653 00:30:31,600 --> 00:30:35,520 Speaker 9: during a post pandemic. So where you are today, fast forward, 654 00:30:35,800 --> 00:30:38,360 Speaker 9: we have better stores. You look at four new stores 655 00:30:38,360 --> 00:30:41,120 Speaker 9: that are opening in Manhattan for Black Friday. Take a 656 00:30:41,120 --> 00:30:43,400 Speaker 9: look at the Wegmans that just open on Astor Place. 657 00:30:43,960 --> 00:30:46,160 Speaker 9: Take a look at Creighton Barrel that opened their first 658 00:30:46,200 --> 00:30:49,800 Speaker 9: new store in Manhattan in thirty years on Broadway, Lululemons 659 00:30:49,840 --> 00:30:53,960 Speaker 9: remodeled store on Fifth Avenue and seventeenth Street. And then 660 00:30:54,240 --> 00:30:58,920 Speaker 9: you also have it's Wegmans, it's Lulu, It's Creighton Barrel. 661 00:30:59,320 --> 00:31:02,760 Speaker 1: About one more interest, what's the deal with Brooks Brothers, 662 00:31:02,760 --> 00:31:05,840 Speaker 1: Because I'm sure like me, Paul grew up going there. 663 00:31:06,240 --> 00:31:09,000 Speaker 1: When I got my first suit, it was at Brooks Brothers. 664 00:31:09,040 --> 00:31:11,240 Speaker 1: I remember going to store number one to get fitted 665 00:31:11,240 --> 00:31:14,160 Speaker 1: for a formal coat when I was like five. It's 666 00:31:14,320 --> 00:31:19,280 Speaker 1: and it was the best place to shop for men's clothes. 667 00:31:19,320 --> 00:31:22,920 Speaker 1: I mean, really an experience. My grandfather got his World 668 00:31:22,960 --> 00:31:27,040 Speaker 1: War Two, you know, his dress blues at Brooks Brothers. 669 00:31:27,200 --> 00:31:30,480 Speaker 1: Why did they go bust? And what's happened to them? 670 00:31:30,640 --> 00:31:31,320 Speaker 1: A couple things. 671 00:31:31,320 --> 00:31:34,040 Speaker 9: First, it's Target, that's the fourth store that opened on 672 00:31:34,560 --> 00:31:37,560 Speaker 9: fourteenth Street. Let's go to Brooks Brothers. So look at 673 00:31:37,560 --> 00:31:40,480 Speaker 9: what everyone's wearing here today? Are you seeing? Are any 674 00:31:40,480 --> 00:31:42,040 Speaker 9: of the three of you men in a suit? 675 00:31:42,440 --> 00:31:42,960 Speaker 7: Not? Really? 676 00:31:43,480 --> 00:31:43,960 Speaker 6: Okay? 677 00:31:44,240 --> 00:31:46,480 Speaker 1: What did Brooks Brothers sell a lot of suits? 678 00:31:46,560 --> 00:31:46,800 Speaker 7: Yeah? 679 00:31:46,880 --> 00:31:49,120 Speaker 9: Okay, there you go. So you got a pivot in 680 00:31:49,240 --> 00:31:52,520 Speaker 9: order to be able to reinvent yourself. Retailers can do that. 681 00:31:52,560 --> 00:31:56,720 Speaker 9: We've seen retailers reinvent themselves. You look at Coach reinvented itself. 682 00:31:56,760 --> 00:31:59,200 Speaker 9: You look at Levi's been around one hundred and fifty years, 683 00:31:59,360 --> 00:32:03,600 Speaker 9: reinvented it So the fact that if you don't reinvent yourself, 684 00:32:03,960 --> 00:32:06,680 Speaker 9: it's hard to keep such an expensive piece of real estate. 685 00:32:07,080 --> 00:32:09,000 Speaker 9: Now they have a coffee shop there. I meet a 686 00:32:09,040 --> 00:32:11,240 Speaker 9: lot of people there. It's my destination for meetings. 687 00:32:11,480 --> 00:32:12,520 Speaker 1: Wow, that's cool. 688 00:32:12,560 --> 00:32:14,760 Speaker 2: It was a sweet sweet spot Brooks Brothers and the 689 00:32:14,760 --> 00:32:15,520 Speaker 2: Shrewsbury Mall. 690 00:32:16,400 --> 00:32:18,520 Speaker 1: I now go to Paul Stewart, which is you know 691 00:32:18,640 --> 00:32:21,640 Speaker 1: next door, you know iron Sure it's are like class six. 692 00:32:22,360 --> 00:32:24,680 Speaker 7: Well this isn't a Brooks Brothers, but you get the picture. 693 00:32:24,800 --> 00:32:26,960 Speaker 1: I love those The place was a classic place. Now 694 00:32:26,960 --> 00:32:31,240 Speaker 1: the other thing, I typically eschew the word barbell. It's 695 00:32:31,280 --> 00:32:37,440 Speaker 1: like the most cliche phrase on Bloomberg television. But I've 696 00:32:37,440 --> 00:32:42,840 Speaker 1: noticed that Macy's, for example, Bloomingdale's did better than all 697 00:32:42,920 --> 00:32:46,200 Speaker 1: of Macy's, and Macy's has some kind of off brand 698 00:32:46,320 --> 00:32:50,080 Speaker 1: or lower backstage backstage which did much better. So it 699 00:32:50,160 --> 00:32:53,360 Speaker 1: seems like the higher end consumer is doing well and 700 00:32:53,400 --> 00:32:56,800 Speaker 1: then everyone else is going as going downscale. Is that 701 00:32:56,840 --> 00:32:57,200 Speaker 1: the case? 702 00:32:57,320 --> 00:32:59,440 Speaker 9: Well, when you look at the uber wealthy Amez had 703 00:32:59,480 --> 00:33:02,320 Speaker 9: doubled sales gains, so they're certainly doing George. 704 00:33:02,120 --> 00:33:05,600 Speaker 1: Santo's apparently was shopping there with campaign funds allegedly very good. 705 00:33:06,120 --> 00:33:07,600 Speaker 9: And when you look at the lower end, take a 706 00:33:07,600 --> 00:33:10,280 Speaker 9: look what you got this week TJX with same store 707 00:33:10,360 --> 00:33:13,520 Speaker 9: sales up around six percent. You look at Ross Stores yesterday, 708 00:33:13,520 --> 00:33:16,920 Speaker 9: their same store sales were up around five percent. Value works, 709 00:33:16,960 --> 00:33:19,320 Speaker 9: and you see many retailers talking about the fact that 710 00:33:19,360 --> 00:33:22,680 Speaker 9: their outlet stores are performing. Look at Tanger Factory outlet 711 00:33:22,760 --> 00:33:25,640 Speaker 9: centers and you've seen newness there with their new Nashville 712 00:33:25,680 --> 00:33:28,000 Speaker 9: opening that they have. So there's a little bit of 713 00:33:28,000 --> 00:33:32,000 Speaker 9: a barbell, but even that luxury consumer, except for the 714 00:33:32,040 --> 00:33:35,600 Speaker 9: tippy top, is moderating. Look at Berberis results yesterday where 715 00:33:35,600 --> 00:33:38,000 Speaker 9: they talked about the fact that they've seen a slowing 716 00:33:38,040 --> 00:33:41,760 Speaker 9: in global luxury demand. So whether it's the macro, whether 717 00:33:41,800 --> 00:33:45,960 Speaker 9: it's the stock market volatility, or if focused on experience 718 00:33:46,080 --> 00:33:48,680 Speaker 9: versus goods, and certainly for the mid tier and lower 719 00:33:49,080 --> 00:33:52,760 Speaker 9: higher interest rates and inflation are an inhibitor to opening 720 00:33:52,800 --> 00:33:53,280 Speaker 9: your wallet. 721 00:33:53,720 --> 00:33:55,440 Speaker 6: Yep, absolutely a right, Dana. Thank you so much for 722 00:33:55,520 --> 00:33:56,040 Speaker 6: joining us here. 723 00:33:56,160 --> 00:34:00,800 Speaker 2: Dan Telsey, CEO and chief research officer at the Tellsley. 724 00:34:00,440 --> 00:34:03,880 Speaker 1: Group, Thanks for listening to the Bloomberg Markets podcasts. You 725 00:34:03,880 --> 00:34:07,200 Speaker 1: can subscribe and listen to interviews at Apple Podcasts or 726 00:34:07,480 --> 00:34:11,200 Speaker 1: whatever podcast platform you prefer. I'm Matt Miller. I'm on 727 00:34:11,239 --> 00:34:15,080 Speaker 1: Twitter at Matt Miller nineteen seventy three and I'm Faull Sweeney. 728 00:34:15,120 --> 00:34:17,759 Speaker 2: I'm on Twitter at pt Sweeney before the podcast. You 729 00:34:17,760 --> 00:34:21,160 Speaker 2: can always catch us worldwide at Bloomberg Radio