1 00:00:02,800 --> 00:00:05,120 Speaker 1: This is Coast to Coast. I'm Carol Masser and I'm 2 00:00:05,160 --> 00:00:07,640 Speaker 1: Corey Johnson. We're here every day bringing the latest news 3 00:00:07,680 --> 00:00:09,680 Speaker 1: in the world of business and finance and the most 4 00:00:09,760 --> 00:00:13,480 Speaker 1: interesting stories in global technology from Silicon Valley and beyond. 5 00:00:13,600 --> 00:00:16,119 Speaker 1: Powered by are more than twenty seven hundred journalists and 6 00:00:16,200 --> 00:00:18,880 Speaker 1: analysts in more than one d twenty countries. You can 7 00:00:18,920 --> 00:00:21,960 Speaker 1: download Coast to Coast on iTunes, Soundclondon Bloomberg dot com. 8 00:00:22,000 --> 00:00:23,880 Speaker 1: You can also listen to our radio show weekdays at 9 00:00:23,880 --> 00:00:31,360 Speaker 1: two o'clock Eastern only. I'm Bloomberg Radio. Understand. That's still 10 00:00:31,400 --> 00:00:36,240 Speaker 1: your fine people trade bitcoin that cranks and headphones together, 11 00:00:36,920 --> 00:00:44,159 Speaker 1: white watching trades in this volatile, rapidly burning uh security 12 00:00:44,240 --> 00:00:47,559 Speaker 1: bitcoin and interesting trade in that. Stephen Gamble joints right now. 13 00:00:47,600 --> 00:00:49,960 Speaker 1: He's an equity markets columnist for Bloomberg cad Fly, as 14 00:00:50,000 --> 00:00:52,239 Speaker 1: well as well as Julie very Hige, who was here 15 00:00:52,280 --> 00:00:54,960 Speaker 1: with us yesterday from Bloomberg News. Stee. Let me start 16 00:00:54,960 --> 00:00:59,240 Speaker 1: with you. The trade in this today was dynamic. Yeah, no, 17 00:00:59,400 --> 00:01:02,160 Speaker 1: when we when when most of us woke up, was 18 00:01:02,160 --> 00:01:03,960 Speaker 1: already up more than a thousand points on the day. 19 00:01:04,120 --> 00:01:06,400 Speaker 1: Right we've been We've been counting how many days it 20 00:01:06,480 --> 00:01:09,720 Speaker 1: takes to go up a thousand points? Uh, here was 21 00:01:09,800 --> 00:01:11,360 Speaker 1: less than a day, and now now it's down a 22 00:01:11,440 --> 00:01:14,200 Speaker 1: little bit for the day. So I don't know what 23 00:01:14,280 --> 00:01:16,680 Speaker 1: you call that. But a thousand swing down, thousand swing? 24 00:01:17,360 --> 00:01:20,959 Speaker 1: What do you call that? Do you call it crazy? 25 00:01:21,000 --> 00:01:22,720 Speaker 1: Do you call it a bubble? What do we call it? 26 00:01:23,319 --> 00:01:25,240 Speaker 1: I mean, I think at this point pretty much anyone 27 00:01:25,280 --> 00:01:27,199 Speaker 1: that's and it does think it's some sort of bubble. 28 00:01:27,319 --> 00:01:29,920 Speaker 1: But the dumbest thing you can do in a bubble 29 00:01:30,000 --> 00:01:32,000 Speaker 1: is try to call the top and short it, right, 30 00:01:32,080 --> 00:01:33,640 Speaker 1: So just no one wants to sort of get out 31 00:01:33,640 --> 00:01:35,120 Speaker 1: at this point. I would say there's probably a bit 32 00:01:35,160 --> 00:01:37,080 Speaker 1: of profit taking at this point, right if you got 33 00:01:37,200 --> 00:01:40,160 Speaker 1: in earlier this year when it was around what a thousand, 34 00:01:40,280 --> 00:01:42,480 Speaker 1: why not take some profit right here? It's been a 35 00:01:42,560 --> 00:01:44,840 Speaker 1: fifteen percent today and it's high. It's been down more 36 00:01:44,880 --> 00:01:48,440 Speaker 1: than two and it's low. So that's what swing here today? 37 00:01:48,600 --> 00:01:52,160 Speaker 1: How do we like in bitcoin? Does it remind us 38 00:01:52,240 --> 00:01:54,680 Speaker 1: of any other asset class that we've played around with 39 00:01:54,840 --> 00:01:59,080 Speaker 1: in the last I don't know a couple of just 40 00:01:59,240 --> 00:02:01,240 Speaker 1: a heard some people say it's a currency, some people 41 00:02:01,320 --> 00:02:03,640 Speaker 1: say it's some sort of equity. I think if it 42 00:02:03,760 --> 00:02:05,920 Speaker 1: more as an equity, because currencies aren't supposed to be 43 00:02:05,960 --> 00:02:08,880 Speaker 1: this volatile. But that's sort of this big debate, especially 44 00:02:08,919 --> 00:02:10,800 Speaker 1: if people sell and it's going to be taxed, Right, 45 00:02:11,240 --> 00:02:14,040 Speaker 1: is it taxes capital games or what? Right? You know 46 00:02:14,240 --> 00:02:15,959 Speaker 1: a lot of people say that you can't compare to 47 00:02:16,040 --> 00:02:19,880 Speaker 1: equities because this is a new technology that change the paradigm. 48 00:02:19,919 --> 00:02:23,400 Speaker 1: But that's not really how we usually describe currencies. And 49 00:02:23,480 --> 00:02:25,480 Speaker 1: so if what's being priced in is what's driving the 50 00:02:25,520 --> 00:02:30,760 Speaker 1: stock or not in stock, what's driving bitcoin, say, is 51 00:02:30,800 --> 00:02:33,240 Speaker 1: the assumption that of growth, then then you can think 52 00:02:33,280 --> 00:02:35,160 Speaker 1: of it more like it. Well, I mean, we've seen 53 00:02:35,240 --> 00:02:38,240 Speaker 1: Latin American currencies trail like this. We've occasionally seen Asian 54 00:02:38,440 --> 00:02:41,960 Speaker 1: currencies trayed like this. Someone who's seen everything is Joseph Stieglitz, 55 00:02:42,000 --> 00:02:44,360 Speaker 1: and he was a Bloomberg today on television today talking 56 00:02:44,440 --> 00:02:47,560 Speaker 1: about bitcoin. Listen know what well respected economists Listen know 57 00:02:47,600 --> 00:02:49,959 Speaker 1: what he had to say of a bitcoin. Bitcoin is 58 00:02:50,600 --> 00:02:57,520 Speaker 1: successful only because of expotential for circumvention, uh, lack of oversight. 59 00:02:57,919 --> 00:02:59,919 Speaker 1: So it seems to me it ought to be outlawed. 60 00:03:00,400 --> 00:03:05,600 Speaker 1: It doesn't serve any socially useful function. So Julie, is 61 00:03:05,680 --> 00:03:08,600 Speaker 1: that true. I mean, he apparently thinks it's true. I 62 00:03:08,680 --> 00:03:13,160 Speaker 1: think other people I think it's completely t I mean, 63 00:03:13,200 --> 00:03:15,160 Speaker 1: I think it's hard to say. At this point. Um, 64 00:03:15,360 --> 00:03:17,440 Speaker 1: there's still a lot of questions surrounding bitcoin, around the 65 00:03:17,480 --> 00:03:20,280 Speaker 1: regulation that is going to see, and I think until 66 00:03:20,520 --> 00:03:22,959 Speaker 1: a lot of those answers are solved, we don't know 67 00:03:23,080 --> 00:03:24,919 Speaker 1: exactly what's going to happen to the press. I was, 68 00:03:24,960 --> 00:03:26,840 Speaker 1: I was a bloomer. TV Talk had to respond to 69 00:03:26,880 --> 00:03:28,480 Speaker 1: that same quote today at once now and I get 70 00:03:28,520 --> 00:03:31,920 Speaker 1: to think about that that like tulips in the seventeenth century, 71 00:03:32,360 --> 00:03:34,800 Speaker 1: if you don't know about the two what happened with tulips, 72 00:03:34,960 --> 00:03:37,320 Speaker 1: you don't understand what really happened with the mania around 73 00:03:37,400 --> 00:03:40,680 Speaker 1: it and the tulip that fetched the greatest price of 74 00:03:40,760 --> 00:03:42,040 Speaker 1: all and off to look at what it was called. 75 00:03:42,240 --> 00:03:45,040 Speaker 1: But as a particular tulip bulb, they had an expression 76 00:03:45,040 --> 00:03:47,360 Speaker 1: of a single streak of white going from the base 77 00:03:47,440 --> 00:03:48,960 Speaker 1: of the bulb to the top. It wasn't a parent 78 00:03:49,040 --> 00:03:51,960 Speaker 1: tulip had straight wishes to say that Frilly wants at 79 00:03:52,000 --> 00:03:54,560 Speaker 1: the top of the flower, but has straight pedals with 80 00:03:54,680 --> 00:03:56,440 Speaker 1: a with a shock of white going and it was 81 00:03:56,480 --> 00:03:59,400 Speaker 1: such a rare genetic deformity that that was thought that 82 00:03:59,520 --> 00:04:01,960 Speaker 1: this the value of this toolip bulb and the tools 83 00:04:02,000 --> 00:04:04,560 Speaker 1: themselves would be so fantastic that it was worth this 84 00:04:04,640 --> 00:04:07,640 Speaker 1: great value. I think you have to understand that there 85 00:04:07,840 --> 00:04:10,920 Speaker 1: is some functionality for bitcoin. There is an advantage to 86 00:04:11,040 --> 00:04:13,920 Speaker 1: a currency that can can cross borders without a charge, 87 00:04:14,160 --> 00:04:15,880 Speaker 1: They can move from one hand to the other without 88 00:04:15,920 --> 00:04:19,040 Speaker 1: so many middlemen, and they can process transactions and record 89 00:04:19,120 --> 00:04:22,239 Speaker 1: the processing of those transactions. That is the underlying value. 90 00:04:22,440 --> 00:04:24,719 Speaker 1: I mean, cut out the middleman, think about the process, 91 00:04:24,880 --> 00:04:26,560 Speaker 1: you know. I think I think you're right. They think 92 00:04:26,560 --> 00:04:29,080 Speaker 1: there's some benefits and that's what people are are are 93 00:04:29,400 --> 00:04:33,960 Speaker 1: betting on that this cash, this kind of felis transaction. 94 00:04:34,000 --> 00:04:35,520 Speaker 1: But I think there's negatives too. I mean, you don't 95 00:04:35,520 --> 00:04:38,680 Speaker 1: have a central bank backing it, you don't have UH 96 00:04:39,160 --> 00:04:41,360 Speaker 1: right now, you don't have strong regulations around it, you 97 00:04:41,400 --> 00:04:44,440 Speaker 1: don't have you have a you have some production. You 98 00:04:44,480 --> 00:04:46,720 Speaker 1: don't have total protection that your dollars that you or 99 00:04:46,760 --> 00:04:49,560 Speaker 1: your bitcoins that you put in in whatever digital wall 100 00:04:49,880 --> 00:04:52,160 Speaker 1: you put it in, will still be there. So I 101 00:04:52,320 --> 00:04:55,279 Speaker 1: think I think, yeah, there's some positive, but there's some negatives. 102 00:04:55,279 --> 00:04:57,800 Speaker 1: And I don't think the markets factoring the latter in yet. 103 00:04:57,839 --> 00:04:59,599 Speaker 1: And we have to remember there's not that many places 104 00:04:59,640 --> 00:05:01,840 Speaker 1: that you can traded at this point either. Coin Base 105 00:05:01,960 --> 00:05:03,800 Speaker 1: is one of the main ones, and they're having eight 106 00:05:03,880 --> 00:05:05,839 Speaker 1: times this sort of volume. There's a bunch of people 107 00:05:05,920 --> 00:05:08,120 Speaker 1: tweeting at them that they're having issues if they're trying 108 00:05:08,160 --> 00:05:11,240 Speaker 1: to buy or sell bitcoin at this point. So any 109 00:05:11,279 --> 00:05:13,200 Speaker 1: place that does actually trade as having a hard time 110 00:05:13,320 --> 00:05:15,600 Speaker 1: keeping up, and that could also cause issues in the 111 00:05:15,680 --> 00:05:20,080 Speaker 1: future and sort of forced regulators. And there's a volatil sorry, 112 00:05:20,200 --> 00:05:22,480 Speaker 1: and there's a there's a cost of the volatility, right 113 00:05:22,520 --> 00:05:25,680 Speaker 1: because like so, I saw a video of someone buying 114 00:05:25,920 --> 00:05:30,160 Speaker 1: a subway sub uh with bitcoin and it was a 115 00:05:30,200 --> 00:05:32,960 Speaker 1: three year old video and they paid point four of 116 00:05:33,000 --> 00:05:36,000 Speaker 1: a bitcoin and the most recent comment was ha ha ha, 117 00:05:36,279 --> 00:05:40,080 Speaker 1: you just paid five thousand dollars for your subway sandwich. Right, 118 00:05:40,120 --> 00:05:43,039 Speaker 1: So there's a cost of using it. That's not necessarily 119 00:05:43,200 --> 00:05:45,200 Speaker 1: the kind of there the mass deflation of the fact 120 00:05:45,240 --> 00:05:47,080 Speaker 1: that the price keeps going up and people aren't gonna 121 00:05:47,120 --> 00:05:50,159 Speaker 1: are hoarding these things. Does it ultimately become more valid 122 00:05:50,200 --> 00:05:53,200 Speaker 1: if you will, if there's one central platform. I would 123 00:05:53,240 --> 00:05:55,840 Speaker 1: think so if there's one like designated platform, like say 124 00:05:55,839 --> 00:05:57,760 Speaker 1: a central bank came out and said like this is 125 00:05:57,839 --> 00:06:00,599 Speaker 1: the established and like digital currents, see, then I would 126 00:06:00,600 --> 00:06:02,560 Speaker 1: think there's more value added to that and people would 127 00:06:02,560 --> 00:06:04,880 Speaker 1: feel more comfortable using it, and there would obviously be 128 00:06:05,000 --> 00:06:09,159 Speaker 1: regulation around it then. But but what backs it ultimately 129 00:06:09,720 --> 00:06:12,320 Speaker 1: right right now? Nothing? Really? Yeah no, but I think 130 00:06:12,440 --> 00:06:14,240 Speaker 1: you know it's not going in that way. The weird 131 00:06:14,279 --> 00:06:16,479 Speaker 1: thing about how the price keeps going up is they've 132 00:06:16,520 --> 00:06:20,520 Speaker 1: had these splits effectively, these forks um and also all 133 00:06:20,560 --> 00:06:22,600 Speaker 1: these coins and new currency, So it's not going the 134 00:06:22,640 --> 00:06:24,880 Speaker 1: way towards central it's going the way towards more and 135 00:06:25,000 --> 00:06:27,279 Speaker 1: more of these things. So you'd think the more supplied 136 00:06:27,360 --> 00:06:30,279 Speaker 1: these cryptocurrencies would would lower the price, but it isn't. 137 00:06:30,520 --> 00:06:33,440 Speaker 1: But all I mean all currencies, well now, all fiat currencies, 138 00:06:33,839 --> 00:06:36,280 Speaker 1: unless they're backed by silver or gold or something, are 139 00:06:36,720 --> 00:06:39,000 Speaker 1: are worth what they're worth. I mean, you know, there's 140 00:06:39,040 --> 00:06:42,120 Speaker 1: taxing power, there's there's taxing power exactly what once the 141 00:06:42,120 --> 00:06:44,440 Speaker 1: government is declared to be legal tender. Right, But but 142 00:06:44,640 --> 00:06:47,160 Speaker 1: I think that I think this, I think this is 143 00:06:47,200 --> 00:06:49,760 Speaker 1: worth exploring seriously instead of just talking about prices. But 144 00:06:49,800 --> 00:06:51,520 Speaker 1: I think your point though, that Steve, that you made 145 00:06:51,560 --> 00:06:53,400 Speaker 1: that this whole idea of you know, there's more being 146 00:06:53,520 --> 00:06:55,480 Speaker 1: put out there and yet they're worth more, Like it 147 00:06:55,560 --> 00:06:57,960 Speaker 1: goes completely against kind of the laws of supply and demand. 148 00:06:57,960 --> 00:06:59,960 Speaker 1: I feel like a little bit right, and what's shape 149 00:07:00,279 --> 00:07:02,120 Speaker 1: since I was on here last time that made it 150 00:07:02,360 --> 00:07:05,200 Speaker 1: worth two thousand dollars more than when we're talking about 151 00:07:05,240 --> 00:07:07,160 Speaker 1: last time. I don't know you no, I think when 152 00:07:07,200 --> 00:07:08,920 Speaker 1: you were saying in the beginning that that people that 153 00:07:09,080 --> 00:07:12,080 Speaker 1: have even the backcoin believers, I've seen the bubble their 154 00:07:12,200 --> 00:07:15,240 Speaker 1: chart show like here's comes the mania. Steve Gandal and 155 00:07:15,400 --> 00:07:26,000 Speaker 1: Juliever r Hage of Bloomberg. This is Bloomberg Radio. So 156 00:07:26,080 --> 00:07:27,440 Speaker 1: we want to talk a little about what's going on 157 00:07:27,560 --> 00:07:29,960 Speaker 1: around the world. UH and on the other side of 158 00:07:30,000 --> 00:07:32,520 Speaker 1: the world, if you will. We've been obviously focusing on 159 00:07:32,720 --> 00:07:35,160 Speaker 1: North Korea as it fires another missile in the last 160 00:07:35,200 --> 00:07:38,600 Speaker 1: twenty four hours. Matta Salvo is managing director ahead of 161 00:07:38,680 --> 00:07:42,120 Speaker 1: US Equities at Missing who miss A host Securities. UH. 162 00:07:42,280 --> 00:07:44,880 Speaker 1: They are, by the way, hosting their global Investor conference 163 00:07:44,920 --> 00:07:47,080 Speaker 1: in New York City next week. Match joining us to 164 00:07:47,120 --> 00:07:49,040 Speaker 1: talk about the markets in the market. View from around 165 00:07:49,040 --> 00:07:51,480 Speaker 1: the globe right here in our Bloomberg eleven three yar studio. Welcome, 166 00:07:51,920 --> 00:07:54,240 Speaker 1: Thank you. You know, I apologize because we've been like 167 00:07:54,840 --> 00:07:56,560 Speaker 1: I've been kind of glued to Twitter. I just feel 168 00:07:56,600 --> 00:08:00,240 Speaker 1: like the news fast and furious. If you will, what 169 00:08:00,360 --> 00:08:02,920 Speaker 1: do you guys focus on or how do you kind 170 00:08:02,960 --> 00:08:05,760 Speaker 1: of you know, filter out this stuff that maybe you 171 00:08:05,800 --> 00:08:07,680 Speaker 1: don't think it's going to be significant for investors in 172 00:08:07,720 --> 00:08:12,760 Speaker 1: the investment climate. Well, running the equity business has clearly changed. Uh. 173 00:08:13,000 --> 00:08:17,680 Speaker 1: And the perspective in my whole career was usually US 174 00:08:17,760 --> 00:08:21,680 Speaker 1: Europe accomplished, accommodated most of what you thought about, and 175 00:08:21,800 --> 00:08:26,080 Speaker 1: the world is definitely pivoting US. Asia is becoming more important, uh, 176 00:08:26,680 --> 00:08:30,720 Speaker 1: from news, whether it's uh North Korea, a bitcoin or 177 00:08:30,960 --> 00:08:33,280 Speaker 1: really where we're focused on our day to day is 178 00:08:34,080 --> 00:08:41,800 Speaker 1: um running managing relationships with the investors both here in Indonesia. Uh. 179 00:08:42,280 --> 00:08:44,200 Speaker 1: Where do you look for that kind of thing? I mean, 180 00:08:44,320 --> 00:08:47,200 Speaker 1: what what shows the most sensitivity? Or let me ask 181 00:08:47,280 --> 00:08:50,200 Speaker 1: let me ask it differently, what shows what does show 182 00:08:50,200 --> 00:08:52,959 Speaker 1: the most sensitivity? But maybe ask first what would you 183 00:08:53,080 --> 00:08:56,040 Speaker 1: expect to show the most sensitivity? And is it well? 184 00:08:56,640 --> 00:09:00,079 Speaker 1: As I said, um, for really the last third d 185 00:09:00,160 --> 00:09:04,959 Speaker 1: plus years US equities have been owned and traded in 186 00:09:05,280 --> 00:09:08,080 Speaker 1: call it the load to mid eight percentile of US 187 00:09:08,160 --> 00:09:12,560 Speaker 1: equities was owned and traded by US entities including asset managers, 188 00:09:12,640 --> 00:09:16,199 Speaker 1: hedge funds, and retail was out of Europe, and that 189 00:09:16,280 --> 00:09:20,120 Speaker 1: classic one or two percent other. We see that shift 190 00:09:20,640 --> 00:09:25,760 Speaker 1: changing as US Asia becomes more a dominant theme, and 191 00:09:25,920 --> 00:09:28,280 Speaker 1: that the striking change that you'll see over the next 192 00:09:28,600 --> 00:09:32,400 Speaker 1: ten to twenty years is an increase in Asian ownership 193 00:09:32,960 --> 00:09:36,360 Speaker 1: of US equities by how much? Well, I think, what 194 00:09:36,480 --> 00:09:38,599 Speaker 1: does that mean for the momentum that we've seen in 195 00:09:38,760 --> 00:09:43,880 Speaker 1: US equities? Well, the two The answer to the second 196 00:09:43,920 --> 00:09:46,400 Speaker 1: question is by how are the first part by how much? 197 00:09:46,720 --> 00:09:51,040 Speaker 1: I see Asian ownership of US equities over the next 198 00:09:51,120 --> 00:09:53,240 Speaker 1: three years going to five percent and then over the 199 00:09:53,320 --> 00:09:56,559 Speaker 1: next decade at least a ten percent. And I think 200 00:09:56,600 --> 00:10:01,400 Speaker 1: it means that research distribution companies, how that their corporate 201 00:10:01,440 --> 00:10:04,319 Speaker 1: access when they go travel to meet investors, they usually 202 00:10:04,400 --> 00:10:07,120 Speaker 1: did called three investor trips in the U s and 203 00:10:07,160 --> 00:10:09,400 Speaker 1: then one to Europe. That's what's been done for decades 204 00:10:09,720 --> 00:10:12,120 Speaker 1: that they're now going to have to accommodate that shift 205 00:10:12,240 --> 00:10:15,120 Speaker 1: over to to Asia. Some will do it well, and 206 00:10:15,320 --> 00:10:19,040 Speaker 1: some will will have struggles with with that. What types 207 00:10:19,120 --> 00:10:22,079 Speaker 1: of uh you know we're talking equities here, yes, okay, 208 00:10:22,240 --> 00:10:25,559 Speaker 1: so and and equities because do you expect a whole 209 00:10:25,600 --> 00:10:27,719 Speaker 1: separate class of a kind of equity that's sort of 210 00:10:28,160 --> 00:10:30,000 Speaker 1: trans border. I mean, I look at the way Ali 211 00:10:30,040 --> 00:10:31,720 Speaker 1: Baba trades in the U S and it's but it's 212 00:10:31,720 --> 00:10:34,760 Speaker 1: primarily a Chinese business, very big business and a very 213 00:10:34,840 --> 00:10:36,600 Speaker 1: big company. And I've come to have got a lot 214 00:10:36,640 --> 00:10:39,559 Speaker 1: of questions about to be frank, but nonetheless it is. 215 00:10:39,640 --> 00:10:42,640 Speaker 1: It is an U S traded equity of a Chinese business, 216 00:10:42,920 --> 00:10:46,120 Speaker 1: well more more than I realized that other ways of 217 00:10:46,160 --> 00:10:49,000 Speaker 1: trade it. But that's the primary trade U S. A 218 00:10:49,120 --> 00:10:52,480 Speaker 1: d r S of Chinese internet names is really the 219 00:10:52,559 --> 00:10:57,959 Speaker 1: first experience of the U S um populace, seeing the 220 00:10:58,880 --> 00:11:02,439 Speaker 1: majority of the liquidity Chinese internet names is in a 221 00:11:02,600 --> 00:11:05,120 Speaker 1: d r S. Here, what I'm actually talking about is 222 00:11:05,160 --> 00:11:08,959 Speaker 1: the growth of that. But in addition, the ownership of 223 00:11:09,160 --> 00:11:13,720 Speaker 1: just commonplace US companies Asian investors buying US exactly exactly, 224 00:11:13,840 --> 00:11:17,480 Speaker 1: that's going to change. So so the model of thirteen 225 00:11:17,720 --> 00:11:20,439 Speaker 1: one or two will shift to include Asia. Now, what 226 00:11:20,520 --> 00:11:22,720 Speaker 1: does it mean though for market momentum because I think 227 00:11:22,760 --> 00:11:25,760 Speaker 1: about I feel like the financial crisis taught us we're 228 00:11:25,760 --> 00:11:28,760 Speaker 1: all connected. But I just think about a market cycle 229 00:11:28,960 --> 00:11:31,120 Speaker 1: where it used to be so much you invest US 230 00:11:31,160 --> 00:11:32,880 Speaker 1: investors in U S docs and that you know, would 231 00:11:32,920 --> 00:11:34,319 Speaker 1: kind of control the momentum and we can kind of 232 00:11:34,400 --> 00:11:37,000 Speaker 1: keep track of it. But if you have US momentum, 233 00:11:37,080 --> 00:11:39,240 Speaker 1: and then you know, China can be or Asia can 234 00:11:39,240 --> 00:11:41,559 Speaker 1: be on a different economic cycle, a different market cycle, 235 00:11:41,800 --> 00:11:44,280 Speaker 1: and then maybe as the US market cycle kind of 236 00:11:44,320 --> 00:11:47,560 Speaker 1: tails off, they provide some more momentum for U S docks. 237 00:11:47,840 --> 00:11:50,240 Speaker 1: Is it the point that we could kind of get 238 00:11:50,360 --> 00:11:53,520 Speaker 1: to a place where we just kind of see trend 239 00:11:53,600 --> 00:11:57,800 Speaker 1: lines in one direction. I think that's overwhelmingly I don't 240 00:11:57,800 --> 00:11:59,559 Speaker 1: want to be the big bull, but I'm you know 241 00:11:59,600 --> 00:12:03,040 Speaker 1: what I'm saying. I think that's a tremendous popular um Uh. 242 00:12:03,240 --> 00:12:06,959 Speaker 1: That's a popular um view that I think when you 243 00:12:07,040 --> 00:12:10,120 Speaker 1: think about it, why you're talking about now for the 244 00:12:10,200 --> 00:12:14,840 Speaker 1: next generation of investors, you're now adding the wealth of Japan, 245 00:12:15,600 --> 00:12:18,800 Speaker 1: the wealth of China, and the wealth of greater um 246 00:12:19,400 --> 00:12:23,280 Speaker 1: Asia that now historically had never taken any of their 247 00:12:23,760 --> 00:12:27,240 Speaker 1: discretionary income or their discretionary investment and put it towards 248 00:12:27,320 --> 00:12:29,960 Speaker 1: US equities. Now that's going to change in China. You couldn't. 249 00:12:29,960 --> 00:12:33,800 Speaker 1: I think you still can't directly. Well, there's been money. 250 00:12:34,040 --> 00:12:36,400 Speaker 1: Money flows into Hong Kong and then it figures its 251 00:12:36,440 --> 00:12:39,360 Speaker 1: way out right and as well as Singapore. So you 252 00:12:39,480 --> 00:12:43,520 Speaker 1: are seeing China Japan investing in US equities is a 253 00:12:43,559 --> 00:12:47,280 Speaker 1: little bit different story than than Hong Kong and Singapore. 254 00:12:47,520 --> 00:12:50,160 Speaker 1: Thank you to Sala. Appreciate imagine director ahead of your 255 00:12:50,200 --> 00:13:03,680 Speaker 1: equities at Missoho Securities. What everybody's saying driving, of course 256 00:13:03,720 --> 00:13:05,760 Speaker 1: a great concern of the ELI Auto Show this week, 257 00:13:05,840 --> 00:13:07,960 Speaker 1: where the entire industry is turning out to look at 258 00:13:08,000 --> 00:13:11,120 Speaker 1: some of the latest developments from lots of innovative car companies, 259 00:13:11,120 --> 00:13:14,040 Speaker 1: at least of which Volvo. Fiak joins us right now. 260 00:13:14,120 --> 00:13:17,360 Speaker 1: He's the chief Digital Officer at Volvo. UH and Anti, 261 00:13:17,800 --> 00:13:19,360 Speaker 1: what is it that you guys are showing off that 262 00:13:19,360 --> 00:13:24,440 Speaker 1: you've never showed off before at this big ELI Auto Show. Well, 263 00:13:24,480 --> 00:13:27,959 Speaker 1: we're very excited to share today a new way to 264 00:13:29,080 --> 00:13:30,960 Speaker 1: UH make it easy for people to get their hands 265 00:13:31,000 --> 00:13:35,199 Speaker 1: on a Volvo. And that's going to be a subscription service. Well, 266 00:13:35,240 --> 00:13:39,840 Speaker 1: I was gonna price cuts now well, yeah, I mean 267 00:13:40,000 --> 00:13:43,559 Speaker 1: the subscription we think is a massive simplifier for people 268 00:13:44,280 --> 00:13:45,880 Speaker 1: who are looking there to get their hands on a 269 00:13:45,920 --> 00:13:48,880 Speaker 1: car in a way that really includes all the things 270 00:13:48,920 --> 00:13:51,079 Speaker 1: that they're looking for. Really well, so why isn't why 271 00:13:51,120 --> 00:13:53,120 Speaker 1: isn't that just a lot what's the difference between quote 272 00:13:53,200 --> 00:13:58,800 Speaker 1: unquote subscription and Elise, Well, Elise gets to you the car, 273 00:13:59,000 --> 00:14:00,480 Speaker 1: but there's a lot more to think about when it 274 00:14:00,559 --> 00:14:03,719 Speaker 1: comes to ownership. So for example, with a subscription, you 275 00:14:03,800 --> 00:14:08,400 Speaker 1: have all the ingredients included that includes tax, insurance, and 276 00:14:08,600 --> 00:14:12,240 Speaker 1: then service and maintenance all available for a single flat 277 00:14:12,360 --> 00:14:14,959 Speaker 1: feat so it's more inclusive. The other thing is that 278 00:14:15,720 --> 00:14:18,920 Speaker 1: it's very transparent. We are sending a national price for 279 00:14:19,680 --> 00:14:23,040 Speaker 1: the car, and so you don't have to negotiate. You know, 280 00:14:23,120 --> 00:14:25,680 Speaker 1: it's very simple what you're giving and what you're getting 281 00:14:25,720 --> 00:14:29,800 Speaker 1: in return. If it sounds like almost the model for 282 00:14:30,320 --> 00:14:33,720 Speaker 1: Apple iPhones and you know, those are those services that 283 00:14:33,800 --> 00:14:35,240 Speaker 1: you've got what you can kind of get a new 284 00:14:35,320 --> 00:14:39,240 Speaker 1: phone every couple of years and replace it. Is that 285 00:14:39,320 --> 00:14:41,840 Speaker 1: kind of what you guys are doing after Yeah, I 286 00:14:41,880 --> 00:14:44,240 Speaker 1: mean I think that is a source of inspiration for us, 287 00:14:44,400 --> 00:14:47,400 Speaker 1: and it is because consumer behavior is moving that way 288 00:14:47,680 --> 00:14:50,040 Speaker 1: where you say that you know, here is a device. 289 00:14:50,400 --> 00:14:52,200 Speaker 1: It could be a phone, of course, the car is 290 00:14:52,280 --> 00:14:55,200 Speaker 1: a now a device on wheels, and you want the 291 00:14:55,320 --> 00:14:57,760 Speaker 1: latest and greatest. You want it to be current. You 292 00:14:57,800 --> 00:14:59,640 Speaker 1: don't want to have to think too much, and for 293 00:14:59,720 --> 00:15:03,360 Speaker 1: a a goal transparent fee, you can always be current. 294 00:15:03,480 --> 00:15:06,520 Speaker 1: So in this case, every twenty four months, you know 295 00:15:06,600 --> 00:15:09,960 Speaker 1: you could get a Volvo uh and in between that, 296 00:15:10,320 --> 00:15:13,160 Speaker 1: you know that you're going to have a set of 297 00:15:13,200 --> 00:15:17,240 Speaker 1: services associated with with having that Bobo that really simplify 298 00:15:17,320 --> 00:15:20,080 Speaker 1: your life. So yeah, we do take inspiration from that model. 299 00:15:20,240 --> 00:15:21,920 Speaker 1: What's going to be the big upgrades? Because right with 300 00:15:21,960 --> 00:15:24,760 Speaker 1: a phone, there's something, there's a cool new screen, there's 301 00:15:24,840 --> 00:15:28,720 Speaker 1: some new functionality, greater battery, powder power. What's going to 302 00:15:28,840 --> 00:15:33,320 Speaker 1: be the significant car upgrades that makes somebody want to 303 00:15:33,400 --> 00:15:36,960 Speaker 1: do that? Yeah, so a couple of things. I mean, 304 00:15:37,360 --> 00:15:40,400 Speaker 1: we're premiering this with a car that's brand you. It's 305 00:15:40,440 --> 00:15:44,240 Speaker 1: called the Exceed forty. It's our first subconc some compact suv. 306 00:15:44,760 --> 00:15:47,800 Speaker 1: It's a great looking car, So that's one thing. The 307 00:15:47,880 --> 00:15:50,040 Speaker 1: second thing is that there are a set of features 308 00:15:50,160 --> 00:15:53,080 Speaker 1: with it. One example of that is the ability to 309 00:15:53,160 --> 00:15:55,640 Speaker 1: share the car, So you can share it with friends 310 00:15:55,680 --> 00:15:57,600 Speaker 1: and family. You can do that through the convenience of 311 00:15:57,680 --> 00:16:00,880 Speaker 1: the phone. And that's really just the tip of the iceberg. 312 00:16:01,640 --> 00:16:05,480 Speaker 1: Additional digital features and technologies are going to be at 313 00:16:05,520 --> 00:16:09,320 Speaker 1: it over time, and so for that single fee, you're 314 00:16:09,320 --> 00:16:13,040 Speaker 1: going to get more and more as we invent an innovator. UM. 315 00:16:13,240 --> 00:16:16,000 Speaker 1: When you look at innovation out there, I mean where 316 00:16:16,080 --> 00:16:18,760 Speaker 1: do you see it happening? And not just EVOLVLL, but 317 00:16:18,840 --> 00:16:22,280 Speaker 1: across the industry. Where is most innovation happening? UH? These 318 00:16:22,360 --> 00:16:25,040 Speaker 1: days when you're your title alone, the notion there's a 319 00:16:25,080 --> 00:16:27,840 Speaker 1: digital officer from says to me that the that the 320 00:16:27,880 --> 00:16:32,000 Speaker 1: innovation isn't just happening in the drive train. Yeah, I 321 00:16:32,080 --> 00:16:35,520 Speaker 1: mean the innovation is happening in everywhere, from how you 322 00:16:35,640 --> 00:16:38,640 Speaker 1: get the car. UH, and this is one example, really 323 00:16:39,200 --> 00:16:41,000 Speaker 1: simple way to get your hands on it, and that 324 00:16:41,120 --> 00:16:43,720 Speaker 1: have to think about all the elements of ownership to 325 00:16:43,960 --> 00:16:47,120 Speaker 1: what happens once you have the car and UH and 326 00:16:47,280 --> 00:16:50,360 Speaker 1: that experience with the car. So two examples of that 327 00:16:50,480 --> 00:16:53,800 Speaker 1: would include UM the entertainment system. We are one of 328 00:16:53,880 --> 00:16:57,200 Speaker 1: the first companies to team up with Google and and 329 00:16:57,320 --> 00:17:00,320 Speaker 1: commit to having an embedded persion of Android. The car 330 00:17:00,800 --> 00:17:03,920 Speaker 1: and what that means in practices that your car on 331 00:17:04,000 --> 00:17:06,440 Speaker 1: your phone will actually talk to each other, and the 332 00:17:06,560 --> 00:17:08,720 Speaker 1: information in your car will be just as current as 333 00:17:08,760 --> 00:17:11,040 Speaker 1: it is on your phone, for example, the map and 334 00:17:11,359 --> 00:17:15,520 Speaker 1: the navigation. UM. So that's that's that's a really big 335 00:17:15,600 --> 00:17:19,879 Speaker 1: area of UH innovation, but also everything around that. You know, 336 00:17:19,960 --> 00:17:22,800 Speaker 1: Volvo was one of the first movers around connecting cars. 337 00:17:23,320 --> 00:17:26,400 Speaker 1: So we have over a million connected cars on the road. 338 00:17:26,480 --> 00:17:29,680 Speaker 1: And when you think about the fact that those cars 339 00:17:29,680 --> 00:17:32,879 Speaker 1: are connected, you can do everything from um, you know, 340 00:17:33,000 --> 00:17:35,280 Speaker 1: share them with other people without having to be there, 341 00:17:35,840 --> 00:17:38,800 Speaker 1: so you potentially get packages delivered into your trunk without 342 00:17:38,880 --> 00:17:41,679 Speaker 1: you having to be there. And UH and I had 343 00:17:41,680 --> 00:17:43,720 Speaker 1: a whole lot more that that we're working on. So 344 00:17:43,800 --> 00:17:46,720 Speaker 1: the way the Amazon drivers and the UPS truck chasing 345 00:17:46,760 --> 00:17:52,440 Speaker 1: me down the street, well we uh, we're gonna be 346 00:17:52,520 --> 00:17:54,840 Speaker 1: talking more about that in the future, on how we 347 00:17:54,880 --> 00:17:58,240 Speaker 1: can collaborate with a number of companies. But you know, 348 00:17:58,359 --> 00:18:01,360 Speaker 1: the basic point link blocks are there. So I think 349 00:18:01,400 --> 00:18:04,080 Speaker 1: we're just at the start of a range of you know, 350 00:18:04,160 --> 00:18:10,240 Speaker 1: connected services that make life more convenient for people. Amazing 351 00:18:10,760 --> 00:18:12,240 Speaker 1: interesting stuff and interesting to hear the way that you 352 00:18:12,240 --> 00:18:14,359 Speaker 1: guys are thinking about it, because it certainly is a 353 00:18:14,400 --> 00:18:20,080 Speaker 1: whole life behind the wheel, especially in l A. So cool. Rafi, 354 00:18:20,880 --> 00:18:24,880 Speaker 1: the chief digital officer at Volville, coming to us from 355 00:18:24,960 --> 00:18:26,960 Speaker 1: Los Angeles, where people know a thing or two about 356 00:18:26,960 --> 00:18:29,200 Speaker 1: sitting behind the d they will be chasing you down, Corey, 357 00:18:29,960 --> 00:18:32,280 Speaker 1: l A. Don't have to even walk another person chasing 358 00:18:32,359 --> 00:18:34,320 Speaker 1: you down and walk down the side of the street 359 00:18:34,320 --> 00:18:36,399 Speaker 1: and catch you trying to drive in l A. At 360 00:18:36,480 --> 00:18:38,080 Speaker 1: least on the four or five, it was a Bloomer 361 00:18:38,119 --> 00:18:49,200 Speaker 1: market down Bloomberg Radio. This is Bloomberg. That's one way 362 00:18:49,200 --> 00:18:50,359 Speaker 1: to do it. Another way to do it, isn't It 363 00:18:50,440 --> 00:18:54,040 Speaker 1: isn't a Jaguar land Rover or even a Jaguar or Landover. 364 00:18:54,280 --> 00:18:56,160 Speaker 1: Job had joined us right now, the CEO of Jaguar 365 00:18:56,280 --> 00:19:00,200 Speaker 1: Landover with a look at what the latest uh plug 366 00:19:00,240 --> 00:19:03,520 Speaker 1: in hybrid options are coming out of the car maker 367 00:19:04,160 --> 00:19:05,920 Speaker 1: from the l A Auto Show, Joe glad to have 368 00:19:06,040 --> 00:19:08,879 Speaker 1: you on. UM, so curious about what you guys are 369 00:19:08,960 --> 00:19:12,000 Speaker 1: doing and where you see innovation going with what you're 370 00:19:12,000 --> 00:19:16,679 Speaker 1: announcing today. Yeah, we're truly excited to bring to market 371 00:19:17,119 --> 00:19:19,600 Speaker 1: the first plug in electric hybrid vehicle for the land 372 00:19:19,680 --> 00:19:22,640 Speaker 1: Robe brand in both the range Rover and the range 373 00:19:22,720 --> 00:19:26,679 Speaker 1: over sport Um. It's really exciting future for us because 374 00:19:26,800 --> 00:19:30,480 Speaker 1: it's the best combination of really the electric powertrain for 375 00:19:30,560 --> 00:19:33,520 Speaker 1: a thirty mile range plus then combined with a four 376 00:19:33,600 --> 00:19:36,120 Speaker 1: cylinder engine. So what's what's the range? Range is such 377 00:19:36,119 --> 00:19:38,879 Speaker 1: a big deal with when it comes to electric it is, 378 00:19:38,960 --> 00:19:40,800 Speaker 1: so the pure electric range in the car will be 379 00:19:40,840 --> 00:19:43,680 Speaker 1: around thirty miles, but then you have the combination with 380 00:19:43,960 --> 00:19:46,840 Speaker 1: the in line four cylinder gives you about four horse 381 00:19:46,920 --> 00:19:50,480 Speaker 1: power total system power, and with that you don't have 382 00:19:50,600 --> 00:19:53,400 Speaker 1: the range anxiety. We do have a full battery electric 383 00:19:53,480 --> 00:19:55,159 Speaker 1: vehicle that we have in the stand as well, the 384 00:19:55,240 --> 00:19:58,800 Speaker 1: Jaguar I Paid, which will launch mid next year, and 385 00:19:58,920 --> 00:20:01,040 Speaker 1: that has a range of above two hundred forty miles, 386 00:20:01,600 --> 00:20:04,240 Speaker 1: but that that car is as a septurely electric, and 387 00:20:04,520 --> 00:20:07,359 Speaker 1: that's shy of the sort of the dream three D 388 00:20:07,920 --> 00:20:11,240 Speaker 1: barrier which just seems so hard to get to. Yeah, 389 00:20:11,280 --> 00:20:13,200 Speaker 1: it is shy for the time being, but I'm sure 390 00:20:13,240 --> 00:20:15,560 Speaker 1: over the next couple of years, as we see continued 391 00:20:15,600 --> 00:20:19,040 Speaker 1: defenses and battery technology, we will break through that barrier 392 00:20:19,160 --> 00:20:21,680 Speaker 1: very quickly as well. But I think for now the 393 00:20:21,760 --> 00:20:24,040 Speaker 1: two or forty two and fifty mile range is really 394 00:20:24,640 --> 00:20:27,240 Speaker 1: at the top of where the competitors are, and we 395 00:20:27,320 --> 00:20:30,440 Speaker 1: should be able to to hopefully UM launch a highly 396 00:20:30,480 --> 00:20:33,600 Speaker 1: competitive product as a result. So how much pressure are 397 00:20:33,640 --> 00:20:35,560 Speaker 1: you feeling though to ramp up when it comes to 398 00:20:35,640 --> 00:20:40,360 Speaker 1: E vs Electric vehicles? UM? You know, I think it's 399 00:20:40,520 --> 00:20:43,640 Speaker 1: it's not so much pressure. It is UM the ability 400 00:20:43,800 --> 00:20:47,080 Speaker 1: for us to offer our customers multitude of choices in 401 00:20:47,240 --> 00:20:52,240 Speaker 1: terms of all powertrain technology. We have a clean diesel lineup, 402 00:20:52,400 --> 00:20:57,119 Speaker 1: we have all new internal combustion engines for six night cylinders, 403 00:20:57,600 --> 00:21:00,240 Speaker 1: and we have now the plug in hybrid and full 404 00:21:00,280 --> 00:21:03,080 Speaker 1: better electric power train. So I don't think it is 405 00:21:03,359 --> 00:21:06,399 Speaker 1: you know, one direction that the market will involve into it. 406 00:21:06,840 --> 00:21:09,080 Speaker 1: It is a requirement to just be able to offer 407 00:21:09,240 --> 00:21:12,880 Speaker 1: everything UM and provide our customers the best choice as really, 408 00:21:13,480 --> 00:21:15,879 Speaker 1: so where is the demand coming from? Maybe I'm a 409 00:21:15,880 --> 00:21:18,800 Speaker 1: horrible environmentalist. I don't really, I mean, I don't know probable. 410 00:21:18,800 --> 00:21:20,680 Speaker 1: Putting gas in the cartism seems so rough to me. 411 00:21:20,760 --> 00:21:22,720 Speaker 1: I understand that, you know, we want emissions to go down, 412 00:21:22,760 --> 00:21:25,720 Speaker 1: and that's certainly happening recently. I live in California most 413 00:21:25,720 --> 00:21:27,840 Speaker 1: of the time, and and there's a lot of that 414 00:21:28,119 --> 00:21:32,480 Speaker 1: you know attention to that, well, yeah, for sure. I 415 00:21:32,560 --> 00:21:35,320 Speaker 1: mean I think that the highest demand for electric vehicles 416 00:21:35,359 --> 00:21:37,440 Speaker 1: will be in the coastal states in the beginning, at 417 00:21:37,520 --> 00:21:40,080 Speaker 1: least in the northeast and certainly on the West coast. 418 00:21:41,119 --> 00:21:43,800 Speaker 1: But I do think we shouldn't underestimate the events that 419 00:21:43,920 --> 00:21:46,840 Speaker 1: have been made in the emissions or like thereof for 420 00:21:47,000 --> 00:21:50,640 Speaker 1: internal combustion engines or diesels. I mean, today those power 421 00:21:50,720 --> 00:21:53,480 Speaker 1: trains are significantly cleaner than they were just a short 422 00:21:53,560 --> 00:21:56,800 Speaker 1: couple of years ago, and they do have significant events 423 00:21:57,200 --> 00:22:00,359 Speaker 1: advantages in different respects. I mean, you talked about range, 424 00:22:00,440 --> 00:22:04,639 Speaker 1: she talked about torque, which on SUVs is incredibly important. 425 00:22:05,040 --> 00:22:08,320 Speaker 1: So I think it's really all power trains complement each other, 426 00:22:08,480 --> 00:22:11,320 Speaker 1: and they also fill a specific purpose. So it's to me, 427 00:22:11,400 --> 00:22:13,399 Speaker 1: it's not a question either or it's just having the 428 00:22:13,440 --> 00:22:15,960 Speaker 1: ability to offer all of them. How important, though, is 429 00:22:16,000 --> 00:22:18,840 Speaker 1: it what happens with gas prices ultimately down the road? 430 00:22:18,880 --> 00:22:21,600 Speaker 1: I mean, at this point, we've seen so much in 431 00:22:21,640 --> 00:22:24,560 Speaker 1: the energy markets and so much available gasoline, which is 432 00:22:24,560 --> 00:22:27,320 Speaker 1: why we've seen those prices come down, and and you know, 433 00:22:27,760 --> 00:22:29,639 Speaker 1: but I'm just curious how much of it is tied 434 00:22:29,720 --> 00:22:33,840 Speaker 1: to that down the road. Oh yeah, absolutely, absolutely right. 435 00:22:33,920 --> 00:22:38,000 Speaker 1: That has a big impact on consumption patterns and consumer choice. 436 00:22:38,119 --> 00:22:40,680 Speaker 1: When gas was five dollars a couple of years back, 437 00:22:41,920 --> 00:22:46,080 Speaker 1: that the market changed dramatically and very quickly. It impacted 438 00:22:46,160 --> 00:22:48,960 Speaker 1: mostly large a SUVs, a pickup trucks, and there was 439 00:22:49,040 --> 00:22:53,359 Speaker 1: a shift back into passenger cars. However, that shift was 440 00:22:53,480 --> 00:22:56,840 Speaker 1: very short lived as we now know, and memories are 441 00:22:56,920 --> 00:23:00,360 Speaker 1: not very long, and customers jumped drive back into big 442 00:23:00,440 --> 00:23:04,280 Speaker 1: engine v A, pickup trucks and SUVs. So you're right, 443 00:23:04,359 --> 00:23:07,640 Speaker 1: at the moment, part of the reason why we don't 444 00:23:07,720 --> 00:23:12,480 Speaker 1: see a quicker consumer adaption of electric vehicle is the 445 00:23:12,600 --> 00:23:15,040 Speaker 1: cost of gas being as low as it is um 446 00:23:15,680 --> 00:23:20,040 Speaker 1: So I think for a quicker adaption of electric vehicles 447 00:23:20,440 --> 00:23:22,880 Speaker 1: and a bigger shift, we would have to see gas 448 00:23:23,000 --> 00:23:24,879 Speaker 1: prices slowed up a lot more than where they are 449 00:23:24,960 --> 00:23:29,159 Speaker 1: at the moment. Yeah. And finally, it just seems that 450 00:23:29,240 --> 00:23:31,960 Speaker 1: the performance of course for you guys, is so important, 451 00:23:32,000 --> 00:23:39,159 Speaker 1: whether it's the SUVs or the sport or Jaguar cars crucial. Yeah, absolutely. 452 00:23:39,200 --> 00:23:41,960 Speaker 1: I mean we have another car here at the show, 453 00:23:42,080 --> 00:23:45,280 Speaker 1: which is the Jaguar Project Aid Fred Fast Disport of 454 00:23:45,359 --> 00:23:48,919 Speaker 1: Productions that them just that a nod Ring Lab record. 455 00:23:49,040 --> 00:23:52,440 Speaker 1: It is in our core brand DNA, especially for the 456 00:23:52,520 --> 00:23:56,600 Speaker 1: Jaguar brands. Performance is paramount for everything we do. But 457 00:23:57,040 --> 00:24:00,280 Speaker 1: I think you can get performance out of electric just 458 00:24:00,480 --> 00:24:04,080 Speaker 1: as much. And you know, it's just a different interpretation 459 00:24:04,160 --> 00:24:07,680 Speaker 1: of what a performance car can be. We just announced 460 00:24:07,720 --> 00:24:13,440 Speaker 1: the world's first production vehicle electric production vehicle Race Series Trophy. 461 00:24:13,640 --> 00:24:17,439 Speaker 1: We're very proud to have Bobby Rahul rayhol Letterman, right, 462 00:24:17,560 --> 00:24:19,639 Speaker 1: we gotta we gotta jump. But Joe Eberhard, CEO of 463 00:24:19,880 --> 00:24:22,560 Speaker 1: Jagger Lynn over great stuff. We appreciate it. Move around 464 00:24:22,720 --> 00:24:28,800 Speaker 1: most great promotion apply move on you moved like they do. 465 00:24:29,040 --> 00:24:35,280 Speaker 1: I've never seen anyone move that back. Five people. Let's 466 00:24:35,280 --> 00:24:42,280 Speaker 1: move like you've got a purpose. So he's called movers 467 00:24:42,359 --> 00:24:45,080 Speaker 1: and shakers. They cost a little more about that name 468 00:24:45,160 --> 00:24:55,720 Speaker 1: cracked me up. Bloomberg Markets Movers and Shakers with Carol 469 00:24:55,800 --> 00:24:59,639 Speaker 1: Masser and Corey Johnson on Bloomberg Radio. All Right, everybody 470 00:24:59,720 --> 00:25:01,000 Speaker 1: telling if we look at some of the movers and 471 00:25:01,040 --> 00:25:04,399 Speaker 1: shakers on this Wednesday afternoon. Karl Masser along with my 472 00:25:04,560 --> 00:25:07,200 Speaker 1: partner in crime, Corey Johnson, let's kick it off with 473 00:25:07,240 --> 00:25:11,920 Speaker 1: the SMP hundred. Okay, just partner no crime. We don't 474 00:25:11,920 --> 00:25:15,520 Speaker 1: do any kind of crime. I might slip an extra 475 00:25:15,640 --> 00:25:17,880 Speaker 1: snack upstairs, but but they're free, so it's not really 476 00:25:17,880 --> 00:25:21,520 Speaker 1: a crime. Hey, SMP five hundred three hundred fourteen names 477 00:25:21,760 --> 00:25:23,760 Speaker 1: in the index hier today a hundred and eighty nine 478 00:25:23,800 --> 00:25:28,639 Speaker 1: lower to unchanged. Check out all the retailers. Among the 479 00:25:28,720 --> 00:25:33,959 Speaker 1: biggest gainers in the SNP Target Macy's, Nordstrom, Target up 480 00:25:34,000 --> 00:25:37,200 Speaker 1: almost nine percent, Macy's up more than eight percent, and 481 00:25:37,320 --> 00:25:40,920 Speaker 1: Nordstrom up about seven point three percent. Our story on 482 00:25:41,000 --> 00:25:44,440 Speaker 1: the terminal, The Bloomberg Apparel and Specialty Retail Index is 483 00:25:44,520 --> 00:25:48,000 Speaker 1: higher for a third straight days. Data continues to roll in, 484 00:25:48,200 --> 00:25:52,480 Speaker 1: suggesting holiday sales may bring joy joy two stores UH 485 00:25:52,560 --> 00:25:55,760 Speaker 1: the SMP Apparel Retail Index storing as much as three 486 00:25:55,800 --> 00:25:59,879 Speaker 1: point three percent, highest intra day since May twelve. UH 487 00:26:00,119 --> 00:26:02,880 Speaker 1: available sales data suggesting November year over year sales growth 488 00:26:02,880 --> 00:26:05,720 Speaker 1: may have improved sequentially in both online and brick and 489 00:26:05,760 --> 00:26:09,000 Speaker 1: mortar channels. According to Goldman's chief economist, hots He put 490 00:26:09,040 --> 00:26:14,199 Speaker 1: out a note so strong confidence, pretty good stuff, Black Friday, 491 00:26:14,320 --> 00:26:18,720 Speaker 1: Cyber Monday, Corey and so Target, Nordstrom, Macy's among the 492 00:26:18,720 --> 00:26:21,439 Speaker 1: biggest gainers today. The s and looking at shares of Autodesk. 493 00:26:21,520 --> 00:26:23,439 Speaker 1: It's our neighbor. It's actually right across the street from 494 00:26:23,440 --> 00:26:26,240 Speaker 1: our Bloomberg bureau and San Francisco at one Market Street. 495 00:26:27,119 --> 00:26:30,119 Speaker 1: A very interesting company going through tumultuous times, and activist 496 00:26:30,119 --> 00:26:34,320 Speaker 1: shareholders got involved. Uh CEO Carl Bassa no longer CEO. 497 00:26:34,840 --> 00:26:38,320 Speaker 1: UH fought them, but worked with them. Eventually, Uh he 498 00:26:38,520 --> 00:26:40,640 Speaker 1: left the company. They had some seats on the board. 499 00:26:40,680 --> 00:26:43,120 Speaker 1: They left the board seats in. The stock was went 500 00:26:43,240 --> 00:26:47,640 Speaker 1: straight up this year until today, stocks down fifteen point 501 00:26:47,800 --> 00:26:50,320 Speaker 1: nine percent. We'll call that a sixteen percent one day 502 00:26:50,359 --> 00:26:53,080 Speaker 1: to client at one point down more than seventeen percent. Uh. 503 00:26:53,160 --> 00:26:55,080 Speaker 1: This is after Ernie's came out yesterday and the company 504 00:26:55,240 --> 00:26:58,199 Speaker 1: uh talking about their shifting customers. It's it's very interesting 505 00:26:58,240 --> 00:27:00,320 Speaker 1: and it's relevant in the way that lots of company 506 00:27:00,320 --> 00:27:02,919 Speaker 1: they're shifting sort of to the cloud. Audience goes very 507 00:27:02,960 --> 00:27:05,320 Speaker 1: early in this, but they're trying to shift companies who 508 00:27:05,359 --> 00:27:08,680 Speaker 1: pay a regular maintenance fee to be fully in subscription, 509 00:27:09,359 --> 00:27:12,159 Speaker 1: pay a full subscription costs, not just buy some software 510 00:27:12,160 --> 00:27:14,280 Speaker 1: and payment pay maintenance. Kind of a blended cloud approach. 511 00:27:14,680 --> 00:27:18,000 Speaker 1: And that program they called M two S Maintenance to 512 00:27:18,000 --> 00:27:21,240 Speaker 1: subscription hit a road bump, uh and uh speed bump 513 00:27:21,280 --> 00:27:23,480 Speaker 1: if you will, and uh they said they added a 514 00:27:23,520 --> 00:27:25,920 Speaker 1: fewer net subscribers and then then they had expected in 515 00:27:25,960 --> 00:27:28,720 Speaker 1: fewer than Wall Streets expected. They lowered the guidance for 516 00:27:29,160 --> 00:27:32,720 Speaker 1: fiscal year two thousand eighteen after the market closed yesterday, 517 00:27:33,080 --> 00:27:35,639 Speaker 1: and uh, the model shift. It just seems to be 518 00:27:35,720 --> 00:27:38,080 Speaker 1: confusing Wall Street. A number of analysts when I had 519 00:27:38,119 --> 00:27:40,160 Speaker 1: to lower their targets, they said, they're two thousand twenty 520 00:27:40,240 --> 00:27:43,440 Speaker 1: targets are attacked, but the current year coming down. A 521 00:27:43,560 --> 00:27:47,280 Speaker 1: lot of bullish analysts are sort of sheepishly lowering estimates 522 00:27:47,280 --> 00:27:49,800 Speaker 1: and saying, well, if you liked it yesterday at at 523 00:27:50,080 --> 00:27:52,639 Speaker 1: one twenty, you know you'll love it today at or 524 00:27:52,720 --> 00:27:55,240 Speaker 1: one thirty, you'll love it today at at at one 525 00:27:55,320 --> 00:27:57,000 Speaker 1: on one on nine. The stock close at one nine 526 00:27:57,119 --> 00:27:59,560 Speaker 1: thirty four. They also announced a lot of layoffs, more 527 00:27:59,600 --> 00:28:01,159 Speaker 1: than a love of hundred people. Um. I've yet to 528 00:28:01,200 --> 00:28:04,440 Speaker 1: hear from work there so hoping that they survived this, 529 00:28:04,600 --> 00:28:08,000 Speaker 1: but big changes for this has Application Software Company just 530 00:28:08,119 --> 00:28:10,760 Speaker 1: quickly want to mention shares A Chipotle Mexican grill up 531 00:28:10,800 --> 00:28:14,920 Speaker 1: five point six percent after four percent gain yesterday. Three 532 00:28:15,920 --> 00:28:19,120 Speaker 1: a share is our clothes. Chipotle Mexican grill rallying after 533 00:28:19,359 --> 00:28:22,520 Speaker 1: founder Steve Els agreed to step down his chief executive officer, 534 00:28:22,600 --> 00:28:24,840 Speaker 1: really clearing the way for a new leader with the 535 00:28:24,920 --> 00:28:27,399 Speaker 1: operational expertise needed to pull the burrito chain out of 536 00:28:27,440 --> 00:28:29,760 Speaker 1: a two year slump. This has been El's baby. He 537 00:28:29,840 --> 00:28:33,320 Speaker 1: founded the company back in but again trying to deal 538 00:28:33,400 --> 00:28:37,359 Speaker 1: with coming back from various problems and scandals, dealing with 539 00:28:37,680 --> 00:28:40,560 Speaker 1: an E Coli breakout, and so on and so forth. Though, anyway, 540 00:28:40,600 --> 00:28:43,200 Speaker 1: invest a little bit more enthused about Chipotle stock is 541 00:28:43,440 --> 00:28:46,760 Speaker 1: still down about so far this year. Al Right, let's 542 00:28:46,800 --> 00:28:51,560 Speaker 1: get to the volatility index if I may on this Wednesday. 543 00:28:51,840 --> 00:28:55,400 Speaker 1: Thank you so much, permission granted. Uh. The Volatility Index 544 00:28:55,440 --> 00:28:58,560 Speaker 1: brought to you by Cibo Vixed Options and futures. Volatility 545 00:28:58,640 --> 00:29:01,000 Speaker 1: can be harnessed with Cibo VIX options in future. See 546 00:29:01,040 --> 00:29:04,320 Speaker 1: disclosures and learn more at cbo E dot com. Slash 547 00:29:04,360 --> 00:29:07,120 Speaker 1: Powerful outcomes fixed and the VIX check it out. Everybody 548 00:29:07,440 --> 00:29:10,800 Speaker 1: up six point four percent, closing at ten point sixty s. 549 00:29:11,200 --> 00:29:16,480 Speaker 1: This is Bloomberg. Alright, Dave, you're up, hi, My name 550 00:29:16,640 --> 00:29:21,440 Speaker 1: is Dave. Just what do you think you're doing today, 551 00:29:21,560 --> 00:29:28,640 Speaker 1: we're going for the panoun. Will Dave Dave Pavin Wilson 552 00:29:28,680 --> 00:29:31,160 Speaker 1: back with us. We missed his Chart of the day's song. 553 00:29:32,080 --> 00:29:33,680 Speaker 1: I'm so sad about that. Would you have a Stock 554 00:29:33,720 --> 00:29:35,640 Speaker 1: of the day right now? David? What do you go? Well, 555 00:29:35,800 --> 00:29:38,520 Speaker 1: you know you can't have everything, Corey, but we can 556 00:29:38,560 --> 00:29:42,600 Speaker 1: still talk about the chart after all, and considering what's 557 00:29:42,640 --> 00:29:45,040 Speaker 1: been going on in the world a bitcoin, that's what 558 00:29:45,160 --> 00:29:48,440 Speaker 1: it focuses on something I mentioned earlier. What it does 559 00:29:48,600 --> 00:29:53,160 Speaker 1: is look at the Bitcoin Investment Trust, which is a 560 00:29:53,280 --> 00:29:58,200 Speaker 1: way for equity investors UH to place their bets, so 561 00:29:58,360 --> 00:30:01,120 Speaker 1: to speak, on the digital current. See the ticker on 562 00:30:01,200 --> 00:30:05,200 Speaker 1: this one is g BTC. And what's interesting is that 563 00:30:05,400 --> 00:30:08,200 Speaker 1: if you look at the last couple of months, it's 564 00:30:08,240 --> 00:30:10,880 Speaker 1: really struggled to keep up with the gains that we 565 00:30:11,000 --> 00:30:14,920 Speaker 1: have been seeing in bitcoin. Uh. In fact that at 566 00:30:15,000 --> 00:30:18,320 Speaker 1: one point it was behind if you measure from May 567 00:30:19,560 --> 00:30:23,680 Speaker 1: when this trust shares were first listed over the counter 568 00:30:23,840 --> 00:30:26,920 Speaker 1: on the o t c q X market, UH, you 569 00:30:27,160 --> 00:30:32,800 Speaker 1: saw it was behind by almost twelve hundred percentage points 570 00:30:33,160 --> 00:30:36,120 Speaker 1: at one point this month. Now this week it's sort 571 00:30:36,160 --> 00:30:39,920 Speaker 1: of narrowed that gap because the Bitcoin Investment trust's been 572 00:30:39,960 --> 00:30:45,600 Speaker 1: up a percent. Nonetheless, it's still trailing by a good 573 00:30:45,680 --> 00:30:48,200 Speaker 1: three eighty five points. If you want to more, folks, 574 00:30:48,240 --> 00:30:50,200 Speaker 1: send me an email to get you to chart. The 575 00:30:50,320 --> 00:30:53,040 Speaker 1: explanation goes with it and everything I do going forward. 576 00:30:53,080 --> 00:30:56,560 Speaker 1: The email address is d Wilson at Bloomberg dot net. 577 00:30:56,920 --> 00:31:00,080 Speaker 1: That's d Wilson at Bloomberg dot net. Now let me 578 00:31:00,200 --> 00:31:04,080 Speaker 1: briefly mentioned stock in the day, West co Aircraft Holdings, 579 00:31:04,280 --> 00:31:08,800 Speaker 1: there are supplier to planemakers and other companies takers. Way 580 00:31:08,920 --> 00:31:13,000 Speaker 1: I r STOT went public in twenty eleven, fell below 581 00:31:13,080 --> 00:31:17,640 Speaker 1: the fifteen dollar share initial price in February, and it's 582 00:31:17,680 --> 00:31:21,920 Speaker 1: had nothing but disappointing results this fiscal year. Late yesterday 583 00:31:22,000 --> 00:31:24,320 Speaker 1: the fourth quarter results came out. They were more of 584 00:31:24,400 --> 00:31:28,160 Speaker 1: the same profit trail the average estimate by fifty percent, 585 00:31:29,000 --> 00:31:32,160 Speaker 1: and so West Coast shares follow They were down, which 586 00:31:32,200 --> 00:31:34,080 Speaker 1: is twenty one and a half. Today closed with a 587 00:31:34,160 --> 00:31:39,720 Speaker 1: loss of five point eight percent. Thanks for listening to 588 00:31:39,800 --> 00:31:43,800 Speaker 1: Coast to Coast. You can subscribe to this podcast on iTunes, SoundCloud, 589 00:31:43,920 --> 00:31:45,800 Speaker 1: or Bloomberg dot com. You can also listen to our 590 00:31:45,880 --> 00:31:49,200 Speaker 1: radio show weekdays two o'clock Eastern only on Bloomberg radio 591 00:31:49,360 --> 00:31:51,840 Speaker 1: and follow us on Twitter. She's at Carol Masser. I'm 592 00:31:51,960 --> 00:31:52,720 Speaker 1: at Corey TV.