WEBVTT - Tesla Offers Elon Musk an Unprecedented $1 Trillion Pay Package

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<v Speaker 2>Tesla's board is offering Elon Musk a new compensation agreement

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<v Speaker 2>potentially worth around a trillion dollars. Remember this is a

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<v Speaker 2>company whose market cap right now is only one point

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<v Speaker 2>one six trillion. I say only because you're comparing his

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<v Speaker 2>potential pay with the market cap.

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<v Speaker 3>That's kind of crazy.

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<v Speaker 4>It is crazy. Is it's a number just kind of

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<v Speaker 4>grabs you a little bit.

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<v Speaker 3>It's eye popping.

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<v Speaker 2>So let's bring in Steve Man, he's Bloomberg Intelligence Global

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<v Speaker 2>Autos and Industrials Research manager, to discuss all of this.

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<v Speaker 2>What is the justification that Tesla's board is offering that

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<v Speaker 2>Elon Musk would be worth potentially a trillion dollars in pay?

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<v Speaker 5>Yeah, trilling dollar is a lot, but I think what

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<v Speaker 5>they're looking for by twenty thirty five is really juice

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<v Speaker 5>up that market cap to eight point five trillion. And

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<v Speaker 5>if you look at the operational operational targets that's tied

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<v Speaker 5>to it. It definitely confirms that this company is moving

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<v Speaker 5>towards AI robotics, you know, robo taxi.

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<v Speaker 6>So what are some of the hurdles that are out there?

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<v Speaker 6>Were mister Muslin maybe eventually get this.

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<v Speaker 7>Hey, yeah, you know, it's it's not going to be

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<v Speaker 7>easy for him, and it's probably designed to be that

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<v Speaker 7>way so that, you know, you know, make make sure

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<v Speaker 7>the shareholders will vote for the for the proposal.

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<v Speaker 5>Don't make it too easy for him. So the easy,

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<v Speaker 5>easy lift is really twenty million vehicle delivery. That's going

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<v Speaker 5>to be a no brainer, easy to get to, given

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<v Speaker 5>that it ships about one point million a year already.

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<v Speaker 5>But the tough part, tough part is really a fifty

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<v Speaker 5>percent take rate on FSD, the full self driving and

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<v Speaker 5>a million shipments on robots, and so those are really

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<v Speaker 5>really tough to get. The third thing is really the

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<v Speaker 5>EBITA adjusted EBITA a four herd billion between you know,

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<v Speaker 5>getting there between now and twenty thirty five.

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<v Speaker 2>Okay, so he has a bit of time, and you know,

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<v Speaker 2>he's someone who will start a narrative and stay on it.

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<v Speaker 2>You mentioned FSD full self driving. Where are we in

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<v Speaker 2>that effort for Tesla.

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<v Speaker 5>Yeah, it's still it's still below ten percent. It's probably

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<v Speaker 5>around five six, maybe seven percent at the most. Uh,

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<v Speaker 5>there is still some technological you know, hurdles that they

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<v Speaker 5>have to to to overcome, and a lot of it

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<v Speaker 5>is really getting you know, consumers to be comfortable with it.

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<v Speaker 5>So take rate of you know, ten million subscribers with

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<v Speaker 5>twenty million vehicles shipped. It looks like a stretch, but

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<v Speaker 5>it needs it because the margin for FSD is much

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<v Speaker 5>higher than vehicle production, potential margins for robotaxis much.

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<v Speaker 8>Greater than.

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<v Speaker 5>Selling cars. So to get to the four hundred billion,

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<v Speaker 5>he really needs to really focus on the AI capability

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<v Speaker 5>of the company.

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<v Speaker 6>Hey, Steve, since Elon Musk has left DOGE, do we

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<v Speaker 6>have any idea how much time he is actually spending

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<v Speaker 6>at A good question.

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<v Speaker 5>Yeah, My impression is he's probably spending close to one

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<v Speaker 5>hundred percent of his time, you know, not only based

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<v Speaker 5>on this news where he's actually laying out a plan

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<v Speaker 5>for Tesla, but look, he also had a very successful

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<v Speaker 5>launch at SpaceX recently, so you know the impression is

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<v Speaker 5>that he's full on in managing his companies.

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<v Speaker 2>And I like that question. Paul because we know that

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<v Speaker 2>Elon Musk has previously been an activist and urging the

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<v Speaker 2>board to come up with a new pay package for him,

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<v Speaker 2>you know, he kind of suggested that maybe he could

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<v Speaker 2>move on and do AI somewhere else, and do robotics

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<v Speaker 2>somewhere else.

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<v Speaker 5>Yeah, I think from my perspective, I don't think he's

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<v Speaker 5>going to go anywhere. This is still his baby.

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<v Speaker 8>I think empty.

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<v Speaker 5>I don't want to say empty threats. There's always a possibility,

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<v Speaker 5>but I think the possibility is very low. But because

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<v Speaker 5>this is his baby, and he's very very passionate about AI,

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<v Speaker 5>about you know, energy sustainability, about sending people to Mars,

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<v Speaker 5>and I think all of this is, you know, a

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<v Speaker 5>part of that plan.

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<v Speaker 6>So let's get back to some nuts and bolts here.

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<v Speaker 6>They got to compete against China and they're not. That's

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<v Speaker 6>tough number one. Number two, we had some really disappointing

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<v Speaker 6>delivery number of sales numbers out of Europe here, So

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<v Speaker 6>just the day to day near term seems pretty challenging.

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<v Speaker 3>Yeah.

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<v Speaker 5>And also, don't forget the seventy five hundred dollars EV

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<v Speaker 5>tax credit in the US actually is going away at

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<v Speaker 5>the end of September, it is going to be the

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<v Speaker 5>next pretty challenging for the industry. Six to nine months

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<v Speaker 5>between now and nine months from now, it is going

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<v Speaker 5>to be very challenging. I think one bright spot, you know,

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<v Speaker 5>if you heard b y D, one of the dominant

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<v Speaker 5>Chinese automaker, is actually ratchet back their forecast on a

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<v Speaker 5>sales forecast that actually tells us that, you know, maybe

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<v Speaker 5>the pricing cut through pricing competition in China may be

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<v Speaker 5>slowing down, and that would be positive for Tesla and

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<v Speaker 5>the rest of the industry.

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<v Speaker 2>Yes, if Tesla launches that low cost EV, which there's

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<v Speaker 2>been a lot to talk.

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<v Speaker 3>About, but we haven't actually seen any action on.

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<v Speaker 2>Is there a status update on that or is this

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<v Speaker 2>something just that that just keeps getting pushed out timed again.

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<v Speaker 5>Yeah, I think it's going to come up pretty soon.

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<v Speaker 5>In the last earnings call, they pretty much projected that

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<v Speaker 5>the car is actually ready, but they have to hold

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<v Speaker 5>off production because they want to produce as many Model

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<v Speaker 5>wise and Model three before the end of the seventy

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<v Speaker 5>seventy five hundred EV tax credit goes away, because they

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<v Speaker 5>expect to sell a lot more in the next quarter

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<v Speaker 5>or so. So I believe the car is ready, and

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<v Speaker 5>it probably likely will have to. I would hope it

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<v Speaker 5>will actually come to market in the new year, because

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<v Speaker 5>there's gonna be you know, Rivian's also launching a cheaper

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<v Speaker 5>model by then. GM with the Chevy Ball is supposed

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<v Speaker 5>to come online in the next six months, so they

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<v Speaker 5>do need to launch that sooner rather than later.

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<v Speaker 4>Stay with us. More from Bloomberg Intelligence coming up after this.

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<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

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<v Speaker 1>weekdays at ten am Eastern on Apple, Cocklay and Android

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<v Speaker 1>Auto with the Bloomberg Business app. Listen on demand and

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<v Speaker 1>wherever you get your podcasts, or watch us live on YouTube.

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<v Speaker 6>It's going to Lululemon here. This thing is not good.

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<v Speaker 6>It's tough news coming out of there. Let's put it

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<v Speaker 6>all into context. We could do that with Punam Boyle.

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<v Speaker 6>She's a senior US retail analyst for Bloomberg Intelligence.

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<v Speaker 4>Punum Lululemon. I love my Lulu Lemon, but what happened.

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<v Speaker 9>What happened is that you like your performance, but do

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<v Speaker 9>you like your casual where it's a casual wear part

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<v Speaker 9>of the segment that's underperforming and causing for guidance to

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<v Speaker 9>be cut on the sales side and then Tearff send

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<v Speaker 9>a Minimus, causing the margin hit that we're seeing. So

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<v Speaker 9>it's a sales and a margin story here. They're both underperforming.

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<v Speaker 3>So what's the prescription for that?

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<v Speaker 2>And is a company coming up with a strategy that

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<v Speaker 2>is appeasing investors in any way?

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<v Speaker 9>Yeah, So the biggest issue on the sales side is

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<v Speaker 9>the fact that they're not performing well on the casual

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<v Speaker 9>part of the business. They don't have enough newness. Currently,

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<v Speaker 9>unis in their pipeline stands at twenty three percent and

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<v Speaker 9>they want to move it to thirty five percent by

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<v Speaker 9>next year. So we hope to see more newness, but

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<v Speaker 9>it won't be until spring of twenty twenty six, which

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<v Speaker 9>means the back half of the year is going to

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<v Speaker 9>be very sluggish.

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<v Speaker 2>That's a long time to wait for investors who have

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<v Speaker 2>been sitting on the stock and have looked at a

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<v Speaker 2>forty eight percent drop before today's trading. What's if investors,

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<v Speaker 2>let me let me rephrase this. If consumers are swapping

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<v Speaker 2>out of Lululemon going to Allo and worry, what are

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<v Speaker 2>investors swapping out Lululemon for?

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<v Speaker 9>Well, I mean, look, i'd say, the performance side of

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<v Speaker 9>their business is doing well. So when you say swapping

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<v Speaker 9>out from the aligned leggings perhaps to the allos, that

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<v Speaker 9>might be just broadening the assortment. The real issue is

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<v Speaker 9>on the wide leg pants, on the casual assortment that

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<v Speaker 9>is not trending well. That is what needs to do better.

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<v Speaker 9>Competition has always been there. It's growing, for sure, but

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<v Speaker 9>it's always been there. Lul knows how to compete when

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<v Speaker 9>they have the right product. The issue is they don't

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<v Speaker 9>have enough new product. It's not coming fast enough and

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<v Speaker 9>it won't come overnight. They hired a new AI head

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<v Speaker 9>to drive innovation. That should help because AI is helping

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<v Speaker 9>improve design timelines and so much more that we do

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<v Speaker 9>think they can speed it up. But once again, nothing's happening.

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<v Speaker 8>This year.

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<v Speaker 9>They'll have a little bit more on new but it's

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<v Speaker 9>not enough. Sales in the US are expected to decline

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<v Speaker 9>and that's you know, we haven't seen a decline at Lemon.

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<v Speaker 9>I can't remember when.

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<v Speaker 6>So I mean Lulu Lemon's down. The stock is down

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<v Speaker 6>fifty five percent this year, Puma's down fifty five percent,

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<v Speaker 6>Adidas twenty five, under, Armour thirty seven. Are these performances

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<v Speaker 6>in stock declines. Are they primarily driven by concerns about tariffs.

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<v Speaker 9>Tariffs is definitely one concern, but I think that's not

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<v Speaker 9>limited to just the athletic where it's for all apparel retailing.

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<v Speaker 9>The other is just a shift in wardrobe.

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<v Speaker 8>Right.

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<v Speaker 9>If you think a few years back during COVID, where

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<v Speaker 9>did the war ropes shift? A big part of your

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<v Speaker 9>wardrobe was comfortable performance. Where right, we all had the leggings,

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<v Speaker 9>we were wearing them at home while we were working,

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<v Speaker 9>we were wearing them out. Today we're moving into a

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<v Speaker 9>more structured wardrobe environment, which means that the closets are

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<v Speaker 9>more balanced like they once used to be, and that's

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<v Speaker 9>part of the reason why you're seeing underperformance also at

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<v Speaker 9>the athletic ware companies.

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<v Speaker 2>So in the meantime, as the Little Lemon tries to

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<v Speaker 2>get its product, its newness, its assortment back on track,

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<v Speaker 2>it's making up for the week sales in the US

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<v Speaker 2>with a lot of international sales. China is a big

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<v Speaker 2>strong point. Global growth is still there. How much more

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<v Speaker 2>can it ramp up that side of the business.

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<v Speaker 9>There's plenty of opportunity internationally. International is only twenty five

0:10:48.240 --> 0:10:51.559
<v Speaker 9>percent of Little Lemon's total business. China's growing at over

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<v Speaker 9>twenty percent, with the rest of international at around twenty percent,

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<v Speaker 9>so a lot of runway there across both performance and

0:10:58.120 --> 0:11:00.880
<v Speaker 9>casual wear. We think that's a bright spot that will

0:11:00.920 --> 0:11:03.120
<v Speaker 9>remain a bright spot for the foreseeable future.

0:11:03.880 --> 0:11:06.800
<v Speaker 6>Punam, It's early September here, but it's certainly never too

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<v Speaker 6>early to talk about holiday shopping. What's the expectation in

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<v Speaker 6>your industry about how holiday shopping will be this year.

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<v Speaker 9>I think holiday will be okay as long as there

0:11:16.280 --> 0:11:19.800
<v Speaker 9>are deals. The consumer is clearly focused on deals, and

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<v Speaker 9>we think given the current TARFF situation, a lot of

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<v Speaker 9>the inventory was up fronted, so retailers have most of

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<v Speaker 9>holiday now in stock in their warehouses and also you know,

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<v Speaker 9>starting to come into stories. We think the consumer will

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<v Speaker 9>come for deals. They'll be choosy. They have been choosy

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<v Speaker 9>all year, so you're looking at the Walmarts, the Amazons

0:11:38.920 --> 0:11:42.280
<v Speaker 9>of the world that will probably continue to take wallet's share.

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<v Speaker 3>Who's the strongest company in your space right now, poo.

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<v Speaker 9>I think Amazon's still one of the strongest retailers out there.

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<v Speaker 9>They can compete with their large pocketbooks, They have the

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<v Speaker 9>consumer mind share, and they're essentially focused on delivering value

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<v Speaker 9>to their customer along with speed and convenience.

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<v Speaker 6>And Walmart's still doing well across the board.

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<v Speaker 9>Yeah, yeah, Walmart's still doing well. You know, both of

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<v Speaker 9>them are thriving side by side. Walmart's a larger grocery business.

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<v Speaker 9>Over fifty percent of their sales do come from grocery,

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<v Speaker 9>so they do benefit from that. But they are increasing

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<v Speaker 9>their marketplace. It's over one hundred billion dollars now their

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<v Speaker 9>e commerce business.

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<v Speaker 8>Stay with us.

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<v Speaker 4>More from Bloomberg Intelligence coming up after this.

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<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

0:12:29.440 --> 0:12:32.520
<v Speaker 1>weekdays at ten am Eastern on Apple, Cocklay and Android

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<v Speaker 1>Auto with the Bloomberg Business app. Listen on demand wherever

0:12:35.920 --> 0:12:39.439
<v Speaker 1>you get your podcasts, or watch us live on YouTube.

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<v Speaker 2>Let's bring in Mandeep Singh of Bloomberg Intelligence. Of course,

0:12:43.840 --> 0:12:46.480
<v Speaker 2>he is our go to person for all things in

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<v Speaker 2>the tech space, man deep. The news here is that

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<v Speaker 2>Broadcom is going to help open AI, design and produce

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<v Speaker 2>an AI accelerator and AI chip starting in twenty twenty six.

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<v Speaker 2>And this is all to i don't know, not take

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<v Speaker 2>market share from in video, but at least compete a

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<v Speaker 2>little bit better with than video, isn't it.

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<v Speaker 8>Yes, And now that they have a ten billion dollar

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<v Speaker 8>backlog from this new customer, open Ai. On the chip side,

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<v Speaker 8>it's real money, so it's not just a proof of

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<v Speaker 8>concept or anything like that. And that has always been

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<v Speaker 8>the risk with Nvidia's growth is because of this concentration,

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<v Speaker 8>whether it's from the hyperscale cloud players or the model

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<v Speaker 8>providers like open Ai, if they were to do things

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<v Speaker 8>on their own chip, that will have a big impact

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<v Speaker 8>on Nvidia. And clearly open Ai fields that they can

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<v Speaker 8>optimize the chip and the model to run better on

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<v Speaker 8>their own chip, and that's probably why you're seeing such

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<v Speaker 8>a strong reaction. But clearly this is a twenty twenty

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<v Speaker 8>six event, so we will still have to wait in

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<v Speaker 8>terms of how that chip is going to stack up

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<v Speaker 8>and what the media will have in twenty twenty six.

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<v Speaker 6>That's kind of where I wanted to go, Man, Deep,

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<v Speaker 6>I guess if I were an Nvidia shareholder, I knew

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<v Speaker 6>competition was coming and it just has to. But at

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<v Speaker 6>the end of the day, I feel comfortable with the

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<v Speaker 6>quality of my chips and my technology.

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<v Speaker 4>Is that kind of the feeling here today?

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<v Speaker 8>There is? And so look, I mean for a company

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<v Speaker 8>like Google, which is also training their own model on

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<v Speaker 8>their TPUs, they haven't been able to sell it to

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<v Speaker 8>a non Google model provider, right, So it's really optimizing

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<v Speaker 8>for your stack, which is what Apple has done over

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<v Speaker 8>the years, but clearly that's worked very well for them.

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<v Speaker 8>So Google really was the first one to train their

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<v Speaker 8>model on their own chips, and I think that's what

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<v Speaker 8>open ai is going after, is they feel they can

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<v Speaker 8>do something similar to Google. In fact, the people that

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<v Speaker 8>they've hired to design this chip are you know, people

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<v Speaker 8>from Google, so they've postal lot of people from there.

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<v Speaker 8>And look, I think given the you know scale average

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<v Speaker 8>open ai and Google are operating, the chip costs are

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<v Speaker 8>pretty substantial. So if they are able to optimize the chip,

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<v Speaker 8>even for their own use, that's going to have a

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<v Speaker 8>big impact on the gross margins. Which is why you

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<v Speaker 8>see a big stock move, you know on Nvidia, because

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<v Speaker 8>Nvidia relies on these large hyperscalers to continue to buy

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<v Speaker 8>chips from them.

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<v Speaker 2>Okay, so in Nvidia down and the shares have actually

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<v Speaker 2>deepened their losses now lower by four point one percent.

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<v Speaker 2>Advanced micro Devices is off even more, MANDIP losing seven percent.

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<v Speaker 2>Where does this lead leave AMD.

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<v Speaker 8>I mean, we know the revenue rundrate for Broadcom now,

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<v Speaker 8>it's over twenty billion dollars. In fact, they guide it

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<v Speaker 8>to acceleration. Anytime you see a company guide to accelerating

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<v Speaker 8>revenue growth, I mean, that's great news in terms of

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<v Speaker 8>multiple expansion. And so for a company like AMD whose

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<v Speaker 8>hope was this market is large enough that they will

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<v Speaker 8>also get that lift in terms of growth rates, clearly

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<v Speaker 8>Broadcom is growing ahead of them and substantially. I mean

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<v Speaker 8>they guide it to six billion dollars plus in next quarter. So,

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<v Speaker 8>I mean Broadcom has shown ten consecutive quarters of quarter

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<v Speaker 8>over quarter growth and it's going to continue because that's

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<v Speaker 8>been their guidance for twenty twenty six. So from that perspective,

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<v Speaker 8>and the gains seems somewhat muted when you contrast that

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<v Speaker 8>with Broadcom's expected growth.

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<v Speaker 3>Stay with us.

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<v Speaker 4>More from Bloomberg Intelligence coming up after this.

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<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch us live

0:16:39.600 --> 0:16:42.720
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0:16:42.720 --> 0:16:46.040
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0:16:46.080 --> 0:16:49.400
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0:16:50.760 --> 0:16:54.240
<v Speaker 6>Higher education certainly under pressure from this administration. We had

0:16:54.280 --> 0:16:58.160
<v Speaker 6>another piece of news out just recently concerning our friends

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<v Speaker 6>at Northwestern University.

0:17:00.040 --> 0:17:00.960
<v Speaker 4>Get the last reporting there.

0:17:01.040 --> 0:17:04.600
<v Speaker 6>Janet Lauren joins his Bloomberg Higher Education Finance reporter.

0:17:05.280 --> 0:17:07.960
<v Speaker 4>Some turnover at Northwestern. What's going on there?

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<v Speaker 9>Janet?

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<v Speaker 10>Yes, So the president, Michael Schill, said he was resigning yesterday.

0:17:13.600 --> 0:17:15.919
<v Speaker 10>He's been there for three years and it's been a

0:17:15.920 --> 0:17:20.359
<v Speaker 10>bit tumultuous. In addition to protests and other things, he

0:17:20.440 --> 0:17:22.560
<v Speaker 10>also had to deal with the settlement from the football

0:17:22.600 --> 0:17:27.639
<v Speaker 10>coach who had sued the university over hazing. So he

0:17:27.720 --> 0:17:30.760
<v Speaker 10>had made a deal with protesters during the height of

0:17:30.760 --> 0:17:34.080
<v Speaker 10>all these protests in an effort to clear the encampment

0:17:34.119 --> 0:17:36.000
<v Speaker 10>that was viewed as very unpopular.

0:17:36.920 --> 0:17:38.919
<v Speaker 2>I hadn't realized that he was under fire or the

0:17:38.960 --> 0:17:41.560
<v Speaker 2>school was under fire, because most of our focuses on

0:17:42.640 --> 0:17:47.000
<v Speaker 2>Trump's targeting the IVY leagues, for instance Harvard notably. To

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<v Speaker 2>what extent does this clear the air with whatever discussions

0:17:50.320 --> 0:17:51.880
<v Speaker 2>Northwestern is having with the White House?

0:17:52.320 --> 0:17:56.200
<v Speaker 10>It probably helps because you know they can say, well,

0:17:56.520 --> 0:17:58.399
<v Speaker 10>our leader has left, we're going to put in a

0:17:58.440 --> 0:18:03.399
<v Speaker 10>new person, new reform. But he was also brought before Congress.

0:18:04.359 --> 0:18:07.120
<v Speaker 10>You remember the very high profile hearing with the presidents

0:18:07.119 --> 0:18:10.520
<v Speaker 10>of Harvard, Penn, and MIT and Harvard and Penn's president

0:18:10.600 --> 0:18:13.040
<v Speaker 10>stepped down. Was he there that one, No, he actually

0:18:13.080 --> 0:18:16.919
<v Speaker 10>was called separately and he was grilled along with the

0:18:16.920 --> 0:18:19.879
<v Speaker 10>presidents of Rutgers and UCLA. And he had talked about

0:18:21.200 --> 0:18:24.280
<v Speaker 10>Northwestern has a campus in Cutter and there said we

0:18:24.280 --> 0:18:27.200
<v Speaker 10>would we would be reviewing the contract. It's not clear

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<v Speaker 10>if whatever happened there so that he was under a

0:18:30.040 --> 0:18:33.120
<v Speaker 10>lot of pressure. But don't discount the pressure also about

0:18:33.160 --> 0:18:37.080
<v Speaker 10>the football team because they had a settlement that came

0:18:37.160 --> 0:18:42.240
<v Speaker 10>through late August. The football coach had sued the university

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<v Speaker 10>for one hundred and thirty million dollars for wrongful termination

0:18:45.800 --> 0:18:50.080
<v Speaker 10>and he denied knowledge of hazing, and he sued Northwestern

0:18:50.160 --> 0:18:52.800
<v Speaker 10>is a member of the Big Ten. Don't forget, you know.

0:18:53.200 --> 0:18:54.040
<v Speaker 3>In contacts.

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<v Speaker 10>Yea, they may not be you know, UCLA and winning

0:18:56.920 --> 0:19:01.359
<v Speaker 10>NCAA titles, but you know, same matter sports is, you know,

0:19:01.720 --> 0:19:03.280
<v Speaker 10>is still kind of important there.

0:19:03.920 --> 0:19:08.160
<v Speaker 6>So where are we in terms of these certain universities

0:19:08.200 --> 0:19:11.679
<v Speaker 6>dealing with the Trump administration. Is it trying to just

0:19:11.680 --> 0:19:14.280
<v Speaker 6>come up with a financial settlement and kind of move

0:19:14.359 --> 0:19:16.479
<v Speaker 6>forward and just is that kind of where we are?

0:19:16.520 --> 0:19:17.159
<v Speaker 4>Is that the model?

0:19:17.840 --> 0:19:21.399
<v Speaker 10>It's all unclear. I mean, we know what happened with Harvard,

0:19:21.440 --> 0:19:24.400
<v Speaker 10>as we talked about yesterday. They had an incremental win.

0:19:24.560 --> 0:19:26.800
<v Speaker 10>The court ruled in their favor. But we're just waiting

0:19:26.840 --> 0:19:29.160
<v Speaker 10>for the administration to appeal as they said they would.

0:19:29.240 --> 0:19:32.720
<v Speaker 10>It'll probably go up to the Supreme Court. So, you know,

0:19:32.800 --> 0:19:36.399
<v Speaker 10>even though Harvard won an incremental victory, I mean, the

0:19:36.520 --> 0:19:40.120
<v Speaker 10>judge did not rule on the funding free so that continues.

0:19:40.520 --> 0:19:43.240
<v Speaker 10>It still shows a lot of uncertainty. You know, Harvard

0:19:43.280 --> 0:19:45.200
<v Speaker 10>is still not going to be getting any new grants,

0:19:45.760 --> 0:19:48.040
<v Speaker 10>so and that still has a tremendous impact. You know,

0:19:48.080 --> 0:19:51.600
<v Speaker 10>even though international students are okay there now, it still

0:19:51.760 --> 0:19:55.560
<v Speaker 10>is a dampening on if I'm an international student, do

0:19:55.600 --> 0:19:57.480
<v Speaker 10>I want to come to a school like, even though

0:19:57.560 --> 0:20:01.000
<v Speaker 10>Harvard is my dream school, if things could be uncertain

0:20:01.119 --> 0:20:04.320
<v Speaker 10>you know, it just it ramps up so much financial uncertainty.

0:20:04.440 --> 0:20:06.520
<v Speaker 2>Yeah, it's just easier to go to the UK, or

0:20:06.640 --> 0:20:08.480
<v Speaker 2>to Australia or somewhere else.

0:20:09.640 --> 0:20:12.320
<v Speaker 3>Which school has settled on something with the White House.

0:20:12.359 --> 0:20:13.560
<v Speaker 3>It's only Columbia, right.

0:20:13.760 --> 0:20:17.760
<v Speaker 10>No Brown Brown fifty million dollars settlement and theirs was

0:20:17.840 --> 0:20:21.560
<v Speaker 10>pretty smart because it gave fifty million dollars to develop

0:20:21.640 --> 0:20:24.000
<v Speaker 10>workforce within the state of Rhode Island. So in some

0:20:24.040 --> 0:20:27.760
<v Speaker 10>ways it really bolsters their relationship with their neighbors. Penn

0:20:27.960 --> 0:20:30.960
<v Speaker 10>very early settled about transgender athletes.

0:20:31.880 --> 0:20:34.240
<v Speaker 2>So you know, I think the way everyone else is outstanding,

0:20:34.240 --> 0:20:36.560
<v Speaker 2>and that the goalposts cay move, keep moving on this

0:20:36.800 --> 0:20:38.360
<v Speaker 2>correct and you know again.

0:20:38.200 --> 0:20:40.480
<v Speaker 10>It's we don't know what's going on behind the scenes.

0:20:40.720 --> 0:20:44.080
<v Speaker 10>We think Cornell is, we think Northwestern is, Harvard is.

0:20:44.200 --> 0:20:46.480
<v Speaker 3>Harbord keeps thinking it's done, but it's not right.

0:20:47.000 --> 0:20:51.719
<v Speaker 1>This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,

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