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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. It is single best idea.

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Speaker 1: We're thrilled with the initial response, thank you, particularly on Apple.

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Speaker 1: I mean, everybody gets our podcast through Apple pretty much,

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Speaker 1: and we greatly appreciate the initial response. What we're doing

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Speaker 1: here is five minutes, six minutes, seven minutes tops with

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Speaker 1: two ideas, two conversation points from Bloomberg surveillance that we

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Speaker 1: did this morning today. There were so many good conversations.

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Speaker 1: We've even pushed one of today's conversations into tomorrow's podcasts.

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Speaker 1: For now, we're gonna start with liz Ane Saunders. So

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Speaker 1: it's great about this and I wantally want to sell

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Speaker 1: another podcast. You can listen to my podcast six minutes

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Speaker 1: you added on I mean, you know, it's what you do.

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Speaker 1: And you can also listen to Barry Redholtz on Masters

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Speaker 1: in Business in his podcasts, which is a conversation of

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Speaker 1: an hour in x minutes with liz Anne Saunders. It's

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Speaker 1: a brilliant effort by Barry as always and liz Anne Saunders.

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Speaker 1: We talked about her years at SCHWAB and the philosophy

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Speaker 1: of Schwab to the individual investor, which I completely stole

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Speaker 1: from Barry writ hol So Berry gets, he gets an er,

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Speaker 1: he gets a copyright royalty. Here today, I think it's like,

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Speaker 1: you know, half a beverage or something like that. But

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Speaker 1: here's liz Ane Saunders. Later in our conversation on factor

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Speaker 1: investing on Quality on Dividends, we talked a little bit

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Speaker 1: about momentum being a challenge, but here is liz Anne

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Speaker 1: Sanders on factor investing.

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Speaker 2: What we have continued to do, though is focus on factors,

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Speaker 2: even a little bit more than sectors, and we still

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Speaker 2: think you want to stay up in quality. A momentum

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Speaker 2: has been a dominant factor. But what's interesting is that's

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Speaker 2: more of a concept than a factor. Momentum says thank you.

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Speaker 2: It just says these docs that have been working continue

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Speaker 2: to work. What you can do, though, because a lot

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Speaker 2: of comparisons are being made to the late nineties. Uh oh,

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Speaker 2: momentum as a factor is doing well right now. That's

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Speaker 2: the same thing happened in the nineties. But the actual

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Speaker 2: fundamental factor that was most highly correlated to momentum in

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Speaker 2: the late nineties was negative earnings. The factor right now

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Speaker 2: most positively correlated to momentum is our factors like high

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Speaker 2: return on equity strong, free cashlow, and a negative correlation

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Speaker 2: right now is negative earning. So momentum is just a concept.

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Speaker 2: You then have to look at what are the fundamentals

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Speaker 2: of the types of stocks that continue to do well,

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Speaker 2: And I think that's an important differentiation.

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Speaker 1: Liz Anne Saunders there with some really interesting comments on

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Speaker 1: this equity market. The vogue of the moment drives me nuts.

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Speaker 1: This momentum investing, I have real trouble with it. I'm

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Speaker 1: much more where liz in is looking at quality as

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Speaker 1: being the dominant observable theme right now, subject to change,

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Speaker 1: but certainly that's what we've seen part of what we

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Speaker 1: do here. Then the advantage we have is what Matthew Winkler,

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Speaker 1: the editor in chief emeritus of Bloomberg News, invented, which

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Speaker 1: is the Bloomberg headline. They come in two forms. They

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Speaker 1: come out amberwaves are great, and they come out with

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Speaker 1: an amber color against the black background. And then when

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Speaker 1: they're important, they come out with a red which we

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Speaker 1: call a hot headline or even a red sticky. Is

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Speaker 1: sort of over thirty years what we call those headlines.

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Speaker 1: Paul Sweeney and my dialogue change this morning with red

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Speaker 1: stickies on this collapse of management at Boeing. I'm not

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Speaker 1: going to go into the details right now, but needless

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Speaker 1: to say it is their clients, their customers. The airlines

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Speaker 1: speaking that to me was a demonstrative thing over the

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Speaker 1: last three days, where you had O'Leary of Ryanair, you

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Speaker 1: had Kirby of United Airlines and others just saying enough,

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Speaker 1: there's gotta be some triage done. The triage is the

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Speaker 1: CEO out, the chairman out. There's a new head of

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Speaker 1: commercial Aerospace, Stephanie Pope, and mister Malinkoff of Qualcomm will

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Speaker 1: step in as the chairman. He's on the board down

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Speaker 1: he'll step in as chairman as they await a great

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Speaker 1: CEO search. We went to all of our good people

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Speaker 1: brook Sutherland and others on this. Of course out on

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Speaker 1: the cell side there's all these great names Kaivon Rumor

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Speaker 1: and Helene Becker together at TD Cowen is quality, but

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Speaker 1: one of the great names here is really studied for

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Speaker 1: decades aviation and the challenges of Boeing at this immediate

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Speaker 1: moment this morning was George Ferguson.

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Speaker 3: I mean they've run down, they've run down the road

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Speaker 3: of you know, of automotive folks in the past too,

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Speaker 3: and I think that's one thing i'd caught.

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Speaker 2: You, right.

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Speaker 3: Okay, Automotive and Arab based are very different. Automotive much

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Speaker 3: higher volumes, right, and so very different business tolerances and

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Speaker 3: aerospace are much tighter. I don't know. I think i'd

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Speaker 3: be looking through some of the engine manufacturers and figuring out,

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Speaker 3: you know, who inside the engine manufacturers are really good,

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Speaker 3: really good at engineering, at manufacturing, and who could potentially

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Speaker 3: come over. Right, You've got David Joyce on the board.

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Speaker 3: You can help you figure out who you're the right

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Speaker 3: person might be. I'm not sure it's David Joyce, right,

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Speaker 3: but that might be one of the places I love.

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Speaker 1: George Ferguson of Bloomberg Intelligence there at providing some really

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Speaker 1: important perspective to get the week started. It's a four

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Speaker 1: day work week. I just want to say thank you

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Speaker 1: to all of you as we begin. Single Best Idea.

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Speaker 1: It's our short podcast here for Bloomberg Surveillance. Just two

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Speaker 1: ideas that we had in conversation today.