WEBVTT - Retail Sales Beat, Jobless Claims Fall

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News. This is the Bloomberg

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<v Speaker 1>listen and always I'm Bloomberg Radio, the Bloomberg Terminal, and

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<v Speaker 1>the Bloomberg Business App. We're going to dive into the

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<v Speaker 1>economic data right now. We've given Tiffany wild Over at

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<v Speaker 1>PIMCO Newport Beach, California, time to do it. But Tiffany,

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<v Speaker 1>I gotta rip up the script right now. The new

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<v Speaker 1>CEO at Starbucks is going to stay in Newport Beach

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<v Speaker 1>instead of commute to Smarts. I mean, Tiffany, what is

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<v Speaker 1>the attraction, the allure of beach versus him and the

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<v Speaker 1>fam moving up to Seattle.

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<v Speaker 2>Well, I think it's your it's your favorite restaurant, Malarkey's

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<v Speaker 2>Bye Bye by Fashion Island. But to be fair, the

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<v Speaker 2>beaches here are are very gorgeous. It's like living in

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<v Speaker 2>a resort community. It's it's very different than New York City.

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<v Speaker 2>It's a very nice place to life, for sure. I'm

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<v Speaker 2>not surprised they're killing me.

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<v Speaker 1>That's migrate to retail sales right now. It's just such

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<v Speaker 1>a tough life for Tiffany. Wow, I got a nominal

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<v Speaker 1>number here port and Tiffany as I got some revisions

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<v Speaker 1>that are actually pretty quiescent. This is a constructive set

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<v Speaker 1>of data, isn't it.

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<v Speaker 3>Yeah.

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<v Speaker 2>I mean, I think the bottom line is I'm just

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<v Speaker 2>looking through this is is this completely confirms that the

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<v Speaker 2>US was not in recession in July. And obviously the

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<v Speaker 2>risks of that, or at least the the market's focus

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<v Speaker 2>on the risks of that, were increased because of the

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<v Speaker 2>unemployment report, and specifically the increase in the unemployment rate,

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<v Speaker 2>which has triggered the so called SAM rule. Historically, this

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<v Speaker 2>sm rule has been a good indicator that we are

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<v Speaker 2>in recession right now. But you know, as we've been discussing,

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<v Speaker 2>there's good reasons to believe why this time is actually

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<v Speaker 2>different with that rule. We've had pretty big supply side

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<v Speaker 2>gains in the labor market over the last few years

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<v Speaker 2>as a result of immigration and just folks coming back

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<v Speaker 2>post pandemic, and that's not the markings of an economy

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<v Speaker 2>that's in recession. This retail sales report just completely confirm that.

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<v Speaker 3>So on the retail sales at Tiffany again, I'm going

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<v Speaker 3>to look at the control group. I'm not sure what's

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<v Speaker 3>all excluded, but let's go with it. The control group

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<v Speaker 3>positive zero point three percent. The consensus was a zero

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<v Speaker 3>point one percent. What do you make of the US

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<v Speaker 3>consumer these days?

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<v Speaker 2>Yeah, I mean, I think overall the consumer is still strong,

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<v Speaker 2>you know, I do think that it's you have seen

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<v Speaker 2>some deceleration in consumption at but that's okay.

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<v Speaker 4>We we were.

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<v Speaker 2>Living in an economy where you had a lot of

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<v Speaker 2>above trend growth. Some of that was due to immigration,

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<v Speaker 2>but some of that was due to just the fact

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<v Speaker 2>that we had a lot of stimulus post pandemic. As

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<v Speaker 2>that is wearing off, you're seeing things just normalized. So

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<v Speaker 2>I would argue it's just a healthier environment for consumers.

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<v Speaker 2>You're seeing them more picky, you know, with pricing. Obviously,

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<v Speaker 2>we had the Amazon Prime Day and related promotions that

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<v Speaker 2>probably boosted nominal retail sales in July. But overall, I

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<v Speaker 2>would say that we're getting back to normal for the consumer.

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<v Speaker 1>Okay, My problem is Tiffany, and it was the number

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<v Speaker 1>one fight I had with a wonderful Alan Meltzer Cardegie Mellon.

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<v Speaker 1>The average Newport Beach, California home price is three point

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<v Speaker 1>three nine three million dollars. That's the average price wow

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<v Speaker 1>off Zillow for the Tiffany wildhood three point ninety three

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<v Speaker 1>million dollars. Tiffany, that's not America. How much of the

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<v Speaker 1>buoyancy and retails sales is coming from ten percent of

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<v Speaker 1>the public.

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<v Speaker 2>Yeah, No, you're you're absolutely right on the distribution of

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<v Speaker 2>outcomes given wealth level, and we very clearly see that

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<v Speaker 2>in the data. So you know, when we look at

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<v Speaker 2>the retail sales number, that's the average consumer, and that

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<v Speaker 2>hides a lot of you know, a lot of differentiation

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<v Speaker 2>under the surface. And you're absolutely right. What we're seeing

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<v Speaker 2>is that lower income consumers, you know, they they are struggling.

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<v Speaker 2>You know, we are seeing more delinquencies on credit cards,

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<v Speaker 2>on auto loans and things like that. You know, but

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<v Speaker 2>but you know, overall, you know, the consumer is doing

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<v Speaker 2>quite well. The consumer in terms of its balance sheet.

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<v Speaker 2>We came out of this recession, the pandemic related recession,

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<v Speaker 2>with actually consumer balance sheets being stronger than where they

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<v Speaker 2>were when we came in. That's something that never happens

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<v Speaker 2>in a recession. Consumers are also enjoying a lot of

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<v Speaker 2>wealth that's been created in their the largest asset that

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<v Speaker 2>they have their homes as a result of home prices increasing,

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<v Speaker 2>you know, and a lot of them also have low

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<v Speaker 2>mortgage rates still, so you know, I would say, you know, yes,

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<v Speaker 2>there is some you know, differences you know, by income level,

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<v Speaker 2>but overall, the consumers is doing quite well.

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<v Speaker 3>All right, the consumers doing quite well in general. We've

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<v Speaker 3>got I guess inflation coming down moderating as we continue

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<v Speaker 3>to see that in both the PPI and the CPI data.

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<v Speaker 3>So what does that set up the Fed to do

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<v Speaker 3>in September? Do you believe, Tiffany?

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<v Speaker 2>Yeah, I mean, I think I think there's when you

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<v Speaker 2>have an economy that's getting back to normal, you need

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<v Speaker 2>to have monetary policy that's also getting back to normal.

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<v Speaker 2>And I think I think FED officials would argue that

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<v Speaker 2>they think policy is in restrictive territory, you know, we

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<v Speaker 2>would agree with them, you know, we do think it.

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<v Speaker 2>Higher interest rates are restricting the economy to some degree,

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<v Speaker 2>and just bringing that back to normal also makes sense.

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<v Speaker 2>And we think that's what they're going to start to

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<v Speaker 2>do in September, you know, and they're you know, probably

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<v Speaker 2>going to do that. You know, they could do it

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<v Speaker 2>at varying degrees. You know, the market's obviously pricing in

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<v Speaker 2>some chain they cut rates by fifty basis points. You know,

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<v Speaker 2>we we definitely we think twenty five is more likely,

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<v Speaker 2>just because the economy is not going into recession, you know,

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<v Speaker 2>so they can kind of do this in a you know,

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<v Speaker 2>a measured paced way and get the economy back to

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<v Speaker 2>back to normal.

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<v Speaker 1>And Tiffany, if you're sitting with the animals like Jerome

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<v Speaker 1>Schneider and they're just snirling and they're angry, it's miserable

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<v Speaker 1>out there at Pimco, Tiffan, You're you're talking to Jerome Schneider,

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<v Speaker 1>and he goes, what's your GDP call quickly? Here? What's

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<v Speaker 1>your real GDP call?

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<v Speaker 2>Up?

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<v Speaker 1>Twelve months?

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<v Speaker 2>Yeah, I mean so, so we're still looking for an

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<v Speaker 2>economy that's doing quite well, you know, maybe not as

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<v Speaker 2>well as last year. When it clocked three percent growth,

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<v Speaker 2>but our forecast for this year is around two and

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<v Speaker 2>a little bit below that, you know, in twenty twenty five.

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<v Speaker 1>Okay, so let's it's it's grim two point two percent.

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<v Speaker 1>What portion of America is living Laurence Summer's stagflation beneath

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<v Speaker 1>two percent or even feeling a recession when you're aggregating

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<v Speaker 1>it two point x percent real GDP.

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<v Speaker 2>Well, I think that you know, the thing to remember

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<v Speaker 2>is is that you know, looking back at the labor

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<v Speaker 2>market statistics, the unemployment rate has been going up, not

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<v Speaker 2>because people have been losing jobs on aggregate. We've actually

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<v Speaker 2>had job growth over the time period that we've seen

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<v Speaker 2>the unemployment rate rise. So you're seeing people that are

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<v Speaker 2>coming back to the labor market, and folks that have

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<v Speaker 2>entered the country entering the labor market, and the folks

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<v Speaker 2>that have jobs are keeping them. So that's not really

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<v Speaker 2>the marketings of an economy that is stressed.

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<v Speaker 1>Tiffany, thank you. This is the Interview of the day

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<v Speaker 1>from Newport Beach, California. She's a thousand miles from where

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<v Speaker 1>she wants to be. Tiffany Wildly of PIMCO greatly appreciated

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<v Speaker 1>in retail sales. Dana Telsea joins us right now. And

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<v Speaker 1>for Lisa Matteo and Tom Keane who have children in

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<v Speaker 1>All to Beauty, Why, Dana Telsey, you have an outperform

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<v Speaker 1>on All to Beauty, Warren Buffet, listen to you. Why

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<v Speaker 1>is alta beauty the future of my paycheck going out

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<v Speaker 1>the door?

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<v Speaker 5>Because look what? First of all, thank you for having me. Tom.

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<v Speaker 5>Great to hear and see you. I think, first of all,

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<v Speaker 5>when you think about ALTI beauty in the beauty category,

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<v Speaker 5>it basically appeals to so many different ages. You look

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<v Speaker 5>at the categories within it, whether it's skincare, whether it's makeup,

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<v Speaker 5>whether it's hair care. A lot of innovation. You see

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<v Speaker 5>that your daughters, they're basically being attracted by all the

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<v Speaker 5>new initiatives, all the new brands that are out there.

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<v Speaker 5>There's a sustainable, clean emphasis on it also, and people

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<v Speaker 5>have fun with beauty, especially today given that we live

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<v Speaker 5>more in a zoom society than we do a pre pandemic.

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<v Speaker 5>So whether you're seeing people in person, whether you're seeing

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<v Speaker 5>them on zoom, all the beauty gives the opportunity to

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<v Speaker 5>look good with all different brands and all different categories.

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<v Speaker 1>I'm glad we have hair routines. You'll love their best

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<v Speaker 1>back to school hairstyle. Great. What are they doing? Why

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<v Speaker 1>are they distinctive versus Sephora to mister Buffett?

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<v Speaker 5>A couple things. First of all, the stocks come down

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<v Speaker 5>a lot. It used to be trading it around forty times.

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<v Speaker 5>Now it's trading below twenty times. You think about their

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<v Speaker 5>customer base. They offer from mass to prestige, so a

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<v Speaker 5>wide income span. They have hair salons, so people go

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<v Speaker 5>there for services too. When you go for service, there's

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<v Speaker 5>an attachment sale that rings up with it. When you

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<v Speaker 5>look at their locations, they have very close destinations and

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<v Speaker 5>there a lot of them are outside of them all

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<v Speaker 5>so they're convenient. And now with a new five thousand

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<v Speaker 5>square foot box that they're testing, there's even potential to

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<v Speaker 5>go into some smaller areas. So you've got breadth of categories.

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<v Speaker 5>You've got closeness and convenience, and you have massd to prestige.

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<v Speaker 5>And with that, the grandmother, the mom, and the daughter.

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<v Speaker 3>Hey Dan, I'm looking at Walmart here. They reported numbers

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<v Speaker 3>here this morning, beating estimates. They raised their sale guidance

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<v Speaker 3>for the full year. The stocks up nine percent pre market.

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<v Speaker 3>What did you take away from our friends in Mettenville.

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<v Speaker 5>I thought, overall, excellent execution and look what they're doing.

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<v Speaker 5>They're gaining share. If they can say they've gotten a

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<v Speaker 5>bigger share of the wealthier consumer and they haven't seen

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<v Speaker 5>any weakness in some of their core customers. What does

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<v Speaker 5>that mean to me? The dollars that the consumer has

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<v Speaker 5>they're allocating to Walmart, and their more effectiveness in their

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<v Speaker 5>category offering and their price offering and the meaning of

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<v Speaker 5>value their share gainer.

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<v Speaker 1>Dan, I want to talk about luxury here because there's

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<v Speaker 1>a lot of negative talk about it, and there's other

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<v Speaker 1>things doing well, different companies, selective, but I'm witnessing some

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<v Speaker 1>a name I didn't even know, Roger Vivier. Basically, folks,

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<v Speaker 1>i've been editorial is on fire. They've got a thing

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<v Speaker 1>where Laura Dern they're doing with their daughter, and their

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<v Speaker 1>internet exposure of shoes nobody can afford is like unbelievable, Dana,

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<v Speaker 1>tell us, just give us one vignette about how a

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<v Speaker 1>brand like Roger Vivier gets a moonshot in the summer

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<v Speaker 1>of twenty twenty four.

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<v Speaker 5>I think what you said a little bit of collaborations

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<v Speaker 5>of who's wearing it like Laura Dern. Check out their

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<v Speaker 5>store on Madison Avenue which they recently reopened, renovated, and

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<v Speaker 5>you have a very iconic offering in terms of what

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<v Speaker 5>their shoes are and certainly the emblem that's attached to it,

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<v Speaker 5>and they've modernized it. This is an example of intentional buying.

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<v Speaker 5>Brands is driving demand and you have intention there. It's

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<v Speaker 5>an iconic offering and it's back in vogue again.

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<v Speaker 1>How can our listeners and viewers profit from things like

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<v Speaker 1>Roger Vivier.

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<v Speaker 5>I think overall, when you think about some of the

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<v Speaker 5>lux brands, you take a look today, Tapestries results were

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<v Speaker 5>very very good, high gross margin, new customers are transacting

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<v Speaker 5>at a higher average unit retail selling price. So when

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<v Speaker 5>you think of brands that have they say what they do,

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<v Speaker 5>they do what they say, and they stand for something

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<v Speaker 5>I think you have, whether it's LVMH, I don't think

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<v Speaker 5>that while their sales growth may have slowed, the brands

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<v Speaker 5>and how they innovate and create demand, it's something that's

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<v Speaker 5>so unusual and compelling.

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<v Speaker 1>Dana is such a retail animal. Did you hear what

0:12:30.800 --> 0:12:34.720
<v Speaker 1>she just said? She said customers are transacting. That's Dana

0:12:34.800 --> 0:12:36.839
<v Speaker 1>Telsey talk for spending.

0:12:36.520 --> 0:12:39.240
<v Speaker 3>Months clear and Dana, I have no idea how Tom

0:12:39.320 --> 0:12:42.560
<v Speaker 3>Kean knows about Roger Viva shoes. But the Vi skate

0:12:42.920 --> 0:12:47.319
<v Speaker 3>metal bucket sneakers in soft leather and white retail one thousand,

0:12:47.400 --> 0:12:50.760
<v Speaker 3>seventy five dollars. Yes, there you go, sneakers, one thousand dollars.

0:12:50.840 --> 0:12:51.240
<v Speaker 1>There you go.

0:12:51.520 --> 0:12:54.400
<v Speaker 3>So talk to us about data about in the in

0:12:54.440 --> 0:12:58.440
<v Speaker 3>the luxury category, where's China? Where the Chinese consumers?

0:12:58.480 --> 0:13:02.400
<v Speaker 5>They say slowing down. The Chinese consumers are slowing down.

0:13:02.440 --> 0:13:05.200
<v Speaker 5>They're spending within China, They're not traveling as much as

0:13:05.240 --> 0:13:07.600
<v Speaker 5>they had a lot of them are buying some local

0:13:07.720 --> 0:13:11.800
<v Speaker 5>Chinese brands and companies are having to work harder with

0:13:11.840 --> 0:13:14.920
<v Speaker 5>their marketing dollars in order to win business from the

0:13:15.000 --> 0:13:18.520
<v Speaker 5>Chinese customer. And you've seen it among many different brands

0:13:18.559 --> 0:13:22.679
<v Speaker 5>out there. There's still opportunity going forward in China, and

0:13:22.760 --> 0:13:26.960
<v Speaker 5>I think the specific marketing to that core consumer within

0:13:27.200 --> 0:13:29.800
<v Speaker 5>China is really what's going to win the day, and

0:13:29.840 --> 0:13:31.760
<v Speaker 5>we're seeing companies refocus on that.

0:13:32.480 --> 0:13:35.080
<v Speaker 3>Are companies still I mean again, China's a huge market

0:13:35.120 --> 0:13:39.560
<v Speaker 3>has been a huge driver of the luxury space. How

0:13:39.559 --> 0:13:42.880
<v Speaker 3>do luxury companies how do they operate in China? Are

0:13:42.880 --> 0:13:45.960
<v Speaker 3>they still investing in China because a lot of industries

0:13:46.360 --> 0:13:48.360
<v Speaker 3>away from retail are really concerned about that.

0:13:49.480 --> 0:13:51.960
<v Speaker 5>They are concerned about it, but yes, they are still investing.

0:13:52.160 --> 0:13:55.520
<v Speaker 5>The ability to have a physical footprint basically provides the

0:13:55.520 --> 0:13:58.720
<v Speaker 5>brand awareness. Have goods that are exclusive to China is

0:13:58.800 --> 0:14:02.640
<v Speaker 5>key because when these are traveling outside of China, they

0:14:02.720 --> 0:14:05.600
<v Speaker 5>have to know that they're getting exactly what it looks

0:14:05.679 --> 0:14:09.760
<v Speaker 5>like in China and its authenticity. So being able to

0:14:09.840 --> 0:14:13.160
<v Speaker 5>show what that brand aesthetic means is key for getting

0:14:13.240 --> 0:14:15.880
<v Speaker 5>them to transact in other places when they travel.

0:14:16.080 --> 0:14:20.680
<v Speaker 1>Dana Telsea Advisor your thoughts on walmart It's future out five.

0:14:20.520 --> 0:14:25.520
<v Speaker 5>Years, stronger and bigger and being able to capture a

0:14:25.520 --> 0:14:29.520
<v Speaker 5>wider consumer base. The physical footprint will be even more

0:14:29.560 --> 0:14:33.000
<v Speaker 5>omni channel than what it is today, and I think

0:14:33.080 --> 0:14:37.560
<v Speaker 5>the marketplaces area and the whole omni channel initiatives are

0:14:37.600 --> 0:14:40.960
<v Speaker 5>going to be made easier. I think the seamless ability

0:14:41.000 --> 0:14:45.600
<v Speaker 5>of Walmart to capture more households what you're seeing now

0:14:45.640 --> 0:14:49.400
<v Speaker 5>with even wealthier consumers buying from Walmart makes it easier.

0:14:49.680 --> 0:14:53.680
<v Speaker 5>It's value and convenience that's the synonym for Walmart.

0:14:53.440 --> 0:14:56.160
<v Speaker 1>Dana Telsea. Thank you so much, just brilliant there. Particularly,

0:14:56.680 --> 0:15:00.880
<v Speaker 1>I really appreciate the altered conversation. Lisa and I commiserate

0:15:01.040 --> 0:15:16.400
<v Speaker 1>over that. Thank you for the international response to our

0:15:16.480 --> 0:15:23.160
<v Speaker 1>covers of the Mars transaction with Kellogg's over their snack foods.

0:15:23.640 --> 0:15:26.200
<v Speaker 1>We wanted to go out across Wall Street to the

0:15:26.240 --> 0:15:28.840
<v Speaker 1>east side, not the cell side of the byside, but

0:15:28.920 --> 0:15:31.800
<v Speaker 1>people that actually try the product, joining us now with

0:15:31.960 --> 0:15:35.000
<v Speaker 1>their full teen coverage of cheese its amand align them

0:15:35.400 --> 0:15:37.520
<v Speaker 1>for blackrock as well.

0:15:37.560 --> 0:15:41.080
<v Speaker 4>So jalapino is the way to.

0:15:41.520 --> 0:15:44.000
<v Speaker 1>Should I go with the duos where that I split

0:15:44.040 --> 0:15:46.760
<v Speaker 1>it between a jalopino and the traditional.

0:15:47.920 --> 0:15:49.680
<v Speaker 4>But you do have to you do have to try

0:15:49.720 --> 0:15:49.960
<v Speaker 4>the house.

0:15:50.000 --> 0:15:52.760
<v Speaker 1>Okay, we will try that at our house. Not for me,

0:15:52.880 --> 0:15:55.960
<v Speaker 1>but howipinos is very big. I swear, folks. This is

0:15:56.000 --> 0:16:00.080
<v Speaker 1>our final discussion of Jesus, other than congratulations to the

0:16:00.120 --> 0:16:04.680
<v Speaker 1>Mars people, the Mars family thirty twenty nine billion dollar transaction,

0:16:04.840 --> 0:16:08.480
<v Speaker 1>six billion dollars of debt, Good luck with that on

0:16:08.520 --> 0:16:12.000
<v Speaker 1>the bond market is showing a new message off the

0:16:12.040 --> 0:16:15.480
<v Speaker 1>equity panic of eight days ago? Is there a new

0:16:15.560 --> 0:16:18.440
<v Speaker 1>tone to your fixed income space at Blackrock.

0:16:18.560 --> 0:16:20.560
<v Speaker 6>So actually, in good morning, thank you for having me.

0:16:21.200 --> 0:16:24.680
<v Speaker 6>The credit markets resilience was probably the big takeaway over

0:16:24.720 --> 0:16:27.960
<v Speaker 6>the volatility of the past two weeks. You saw markets,

0:16:28.000 --> 0:16:31.360
<v Speaker 6>the volatility index, the VVIX, certain parts of global equity

0:16:31.400 --> 0:16:35.600
<v Speaker 6>markets set new post financial crisis records or even pre

0:16:35.640 --> 0:16:39.160
<v Speaker 6>financial crisis records. Actually credit spreads didn't even come close

0:16:39.240 --> 0:16:42.720
<v Speaker 6>to their median or the average over the post financial

0:16:42.760 --> 0:16:45.120
<v Speaker 6>crisis period. So I would say the takeaway is that

0:16:45.200 --> 0:16:49.200
<v Speaker 6>credit held in better than other asset classes all things considered,

0:16:49.680 --> 0:16:53.360
<v Speaker 6>and actually we saw better buying on the little bit

0:16:53.360 --> 0:16:55.440
<v Speaker 6>of widening that we did have, and we've at this

0:16:55.560 --> 0:16:58.280
<v Speaker 6>point retraced depending on the asset class and the rating,

0:16:58.320 --> 0:17:01.400
<v Speaker 6>around fifty to seventy five percent of the widening that

0:17:01.440 --> 0:17:03.600
<v Speaker 6>we saw. I think there's a lot of kind of

0:17:03.960 --> 0:17:07.840
<v Speaker 6>uh focus on the resilience of credit spreads and kind

0:17:07.880 --> 0:17:11.040
<v Speaker 6>of why this is happening. Obviously, lots of well telegraphed

0:17:11.040 --> 0:17:13.520
<v Speaker 6>reasons for that in terms of sector shifts, in the

0:17:13.520 --> 0:17:15.760
<v Speaker 6>composition of the index, rating shifts, but one of the

0:17:15.800 --> 0:17:18.320
<v Speaker 6>points I think that's actually not discussed enough is that

0:17:18.560 --> 0:17:21.399
<v Speaker 6>just companies are staying private for longer in this new cycle,

0:17:21.480 --> 0:17:24.280
<v Speaker 6>and by the time they actually issue into the public markets,

0:17:24.440 --> 0:17:25.879
<v Speaker 6>they're larger and more diversified.

0:17:25.920 --> 0:17:28.359
<v Speaker 4>And so that's why credit, we believe is holding in better.

0:17:28.680 --> 0:17:30.520
<v Speaker 3>How much credit risks do you want to take? I mean,

0:17:30.320 --> 0:17:33.240
<v Speaker 3>I mean I considered it to your treasury where I'm

0:17:33.240 --> 0:17:35.400
<v Speaker 3>happy to hang out at four percent here, how much

0:17:35.400 --> 0:17:36.400
<v Speaker 3>creditists do I want to take?

0:17:36.400 --> 0:17:38.640
<v Speaker 6>We like owning, we like taking credit risk. I think

0:17:38.640 --> 0:17:40.760
<v Speaker 6>one of the actual interesting things. And you can see

0:17:40.760 --> 0:17:43.040
<v Speaker 6>this on the Bloomberg Intelligence data. Actually on the terminal,

0:17:43.320 --> 0:17:46.439
<v Speaker 6>margins for high old credit have been improving over the

0:17:46.480 --> 0:17:50.000
<v Speaker 6>past few quarters, which is a bit of a counterintuitive results.

0:17:49.760 --> 0:17:52.600
<v Speaker 1>What mean what does margins for credit?

0:17:52.760 --> 0:17:55.400
<v Speaker 6>So margins for your highield index you have the LF

0:17:55.520 --> 0:17:58.720
<v Speaker 6>nine eight Highield Index l uac IG index. Actually in

0:17:59.000 --> 0:18:01.679
<v Speaker 6>n aggregate, the margins for the high old universe have

0:18:01.720 --> 0:18:05.280
<v Speaker 6>actually been improving. So in this in this kind of era,

0:18:05.480 --> 0:18:07.760
<v Speaker 6>focusing on a higher cost of capital, a slow down

0:18:07.800 --> 0:18:10.400
<v Speaker 6>in the economy, you would not expect ebit on margin.

0:18:10.480 --> 0:18:13.159
<v Speaker 1>How many basis points? How many percentage points do you

0:18:13.240 --> 0:18:15.360
<v Speaker 1>pick up on a high yield Amanda.

0:18:14.960 --> 0:18:16.480
<v Speaker 4>Line M piece yes.

0:18:16.320 --> 0:18:20.000
<v Speaker 1>Versus full faith and credit or some triple A Microsoft.

0:18:20.080 --> 0:18:22.840
<v Speaker 6>So the spread, the actual spread on the highled indexes

0:18:22.840 --> 0:18:26.840
<v Speaker 6>around three hundred and thirty eight basis points over treasuries. Yes, yes,

0:18:27.520 --> 0:18:30.480
<v Speaker 6>but actually when high old investors are deploying, they're focusing

0:18:30.520 --> 0:18:32.600
<v Speaker 6>more on the dollar price in the yield. The yield

0:18:32.600 --> 0:18:34.680
<v Speaker 6>on the high old indexes around seven point five to

0:18:34.760 --> 0:18:38.960
<v Speaker 6>five percent, so that's a meaningful cushion in terms of

0:18:39.000 --> 0:18:42.520
<v Speaker 6>when you're actually deploying capital in this credit market that

0:18:42.520 --> 0:18:44.400
<v Speaker 6>you're at, you're able to earn a pretty attractive on

0:18:44.480 --> 0:18:48.520
<v Speaker 6>yield in IG for comparison, that's around five percent. We've

0:18:48.520 --> 0:18:51.119
<v Speaker 6>seen significant demand for IG at five and a half

0:18:51.200 --> 0:18:54.200
<v Speaker 6>percent yield, so we're slightly below that given the rate move.

0:18:54.840 --> 0:18:57.600
<v Speaker 6>But in general, I think so long as you expect

0:18:57.840 --> 0:19:01.560
<v Speaker 6>trend or ideally above trend and growth and we're actually there,

0:19:01.720 --> 0:19:04.640
<v Speaker 6>we're at above trend now, that's actually a pretty supportive

0:19:04.640 --> 0:19:05.320
<v Speaker 6>outcome for credit.

0:19:07.880 --> 0:19:11.879
<v Speaker 3>For these credit people argus them, I understood that, I

0:19:11.920 --> 0:19:15.320
<v Speaker 3>think Tom. I think if you're a salesman on Wall Street,

0:19:15.400 --> 0:19:17.400
<v Speaker 3>you know, credit salesman, and you got a new issue,

0:19:17.600 --> 0:19:19.840
<v Speaker 3>is the first company called black Rock?

0:19:20.160 --> 0:19:22.919
<v Speaker 1>Yeah it used to be, but you know, Larry's been

0:19:22.960 --> 0:19:23.520
<v Speaker 1>working so you.

0:19:24.480 --> 0:19:27.920
<v Speaker 3>So you called black rock. What's your interest in new issues?

0:19:27.960 --> 0:19:30.560
<v Speaker 3>When when Wall Street calls you with a new issue?

0:19:30.880 --> 0:19:32.359
<v Speaker 3>What are the things you look at?

0:19:32.600 --> 0:19:35.160
<v Speaker 6>So, in general, new issues have been an attractive way

0:19:35.200 --> 0:19:37.920
<v Speaker 6>to deploy capital because they often come at a discount

0:19:37.920 --> 0:19:38.760
<v Speaker 6>to the existing debt.

0:19:38.800 --> 0:19:39.919
<v Speaker 4>We call that a concession.

0:19:40.200 --> 0:19:43.639
<v Speaker 6>Sometimes those concessions are large. More recently they've been quite modest,

0:19:43.680 --> 0:19:46.240
<v Speaker 6>but still it's an attractive way to deploy capital. The

0:19:46.320 --> 0:19:49.359
<v Speaker 6>really interesting thing, and we're actually writing about this this week,

0:19:49.440 --> 0:19:53.240
<v Speaker 6>is that supply in the IG market has outpaced the

0:19:53.280 --> 0:19:56.600
<v Speaker 6>monthly average every month so far this year, despite the

0:19:56.680 --> 0:20:00.639
<v Speaker 6>higher rate environment. Right in high yield, it's outpaced most months.

0:20:00.680 --> 0:20:02.800
<v Speaker 6>So what that tells you is that corporates are not

0:20:03.119 --> 0:20:04.440
<v Speaker 6>being sidelined by high rates.

0:20:04.520 --> 0:20:06.119
<v Speaker 4>They're moving forward with what they need to do.

0:20:06.359 --> 0:20:09.960
<v Speaker 6>The other interesting point, strategic M and A acquisition activity

0:20:10.040 --> 0:20:12.240
<v Speaker 6>is actually tracking well above the twenty twenty two and

0:20:12.280 --> 0:20:14.840
<v Speaker 6>twenty twenty three pace, and it's actually only six percent

0:20:14.920 --> 0:20:18.359
<v Speaker 6>below the tenure average. So there too, like the news

0:20:18.400 --> 0:20:21.600
<v Speaker 6>that we've seen recently, corporates are moving forward with strategic

0:20:21.640 --> 0:20:24.439
<v Speaker 6>plans despite the higher rate environment. But I think the

0:20:24.440 --> 0:20:26.640
<v Speaker 6>one point on supply that I would make. It does

0:20:26.680 --> 0:20:28.320
<v Speaker 6>feel like this is a bit of a pull forward

0:20:28.359 --> 0:20:30.439
<v Speaker 6>towards late in the year. We're running well above what

0:20:30.480 --> 0:20:32.960
<v Speaker 6>would typically be implied for the summer, so I would

0:20:32.960 --> 0:20:34.879
<v Speaker 6>expect to slow down, but we haven't seen it yet.

0:20:35.040 --> 0:20:36.960
<v Speaker 1>Okay, fine, But to get to the real world where

0:20:36.960 --> 0:20:40.320
<v Speaker 1>Mars is a private company takes out holipedo cheese, it's yeah,

0:20:40.640 --> 0:20:42.760
<v Speaker 1>I get that, and forget it. You know, Mars has

0:20:42.760 --> 0:20:46.440
<v Speaker 1>their own way. How do people finance those large transactions?

0:20:46.440 --> 0:20:47.520
<v Speaker 1>The big munk's out.

0:20:47.359 --> 0:20:51.720
<v Speaker 6>There, yes, yes, So it depends in aggregate. We've seen

0:20:51.920 --> 0:20:54.960
<v Speaker 6>cash only deals represent fifty two percent of the year

0:20:54.960 --> 0:20:58.280
<v Speaker 6>to date volume, which is actually slightly above the longer

0:20:58.359 --> 0:20:58.919
<v Speaker 6>term trend.

0:20:59.480 --> 0:21:02.760
<v Speaker 4>Stock only deals are actually also.

0:21:02.920 --> 0:21:05.719
<v Speaker 6>Above the longer term trend, so that what's actually narrowed

0:21:05.760 --> 0:21:09.800
<v Speaker 6>is the mix of cash and equity transactions. It's a

0:21:09.840 --> 0:21:12.400
<v Speaker 6>little bit misleading to call it cash in debt though,

0:21:12.440 --> 0:21:15.480
<v Speaker 6>because for a bondholder, when an acquisition is funded with cash,

0:21:15.920 --> 0:21:18.680
<v Speaker 6>that can either deplete the excess liquidity on the balance

0:21:18.720 --> 0:21:21.959
<v Speaker 6>sheet or ultimately it gets replaced with debt. So so

0:21:22.119 --> 0:21:24.359
<v Speaker 6>from the perspective of a bondholder, we care how this

0:21:24.480 --> 0:21:24.959
<v Speaker 6>is funded.

0:21:25.200 --> 0:21:29.439
<v Speaker 1>We're taking I'm taking here. Everybody in the room is

0:21:29.520 --> 0:21:33.200
<v Speaker 1>just staring across the Javit Center and amand alne them going,

0:21:33.480 --> 0:21:37.679
<v Speaker 1>it's not fair curve, Amandon, You're going to ruin the curve.

0:21:38.480 --> 0:21:40.480
<v Speaker 3>How about the private credit? How do you guys think

0:21:40.480 --> 0:21:43.919
<v Speaker 3>about private credit? I mean, how does that impact your business?

0:21:43.920 --> 0:21:47.000
<v Speaker 6>So we actually think about private credit as this third

0:21:47.040 --> 0:21:50.080
<v Speaker 6>and viable funding option for a wide range of corporates

0:21:50.119 --> 0:21:52.560
<v Speaker 6>in addition to the traditional bank lending channel and the

0:21:52.560 --> 0:21:53.560
<v Speaker 6>public debt markets.

0:21:53.680 --> 0:21:55.280
<v Speaker 4>That wasn't the case several years ago.

0:21:55.920 --> 0:21:58.760
<v Speaker 6>That's because private credit has now grown into a sizable

0:21:58.800 --> 0:22:00.960
<v Speaker 6>and scalable asset class on its own right, so it

0:22:00.960 --> 0:22:03.800
<v Speaker 6>can compete in areas where it previously could not. We

0:22:03.840 --> 0:22:06.600
<v Speaker 6>think that that kind of ability to coexist peacefully with

0:22:06.640 --> 0:22:09.160
<v Speaker 6>the public debt markets is here to stay. We expect

0:22:09.160 --> 0:22:12.320
<v Speaker 6>the mixshift between the two markets to EBB and flow

0:22:12.359 --> 0:22:15.359
<v Speaker 6>over time, depending on market conditions. Probably the most notable

0:22:15.400 --> 0:22:18.240
<v Speaker 6>thing that I've seen is that companies with demonstrated access

0:22:18.280 --> 0:22:20.240
<v Speaker 6>to the public markets, either high old or loan, are

0:22:20.280 --> 0:22:23.800
<v Speaker 6>actually choosing in some instances to refine in the sul Mars.

0:22:23.800 --> 0:22:26.040
<v Speaker 3>As Thomas just talking about the Mars transaction they're going

0:22:26.080 --> 0:22:28.280
<v Speaker 3>to finance this, they said, with cash on hand and

0:22:28.320 --> 0:22:30.359
<v Speaker 3>then with new borrowing. So presumably they're going to go

0:22:30.400 --> 0:22:32.719
<v Speaker 3>to I think it's JP Morgan and City are their

0:22:32.800 --> 0:22:35.879
<v Speaker 3>bankers on this transaction. They'll see what kind of I

0:22:35.880 --> 0:22:38.959
<v Speaker 3>guess credit terms they get from them, maybe the public

0:22:39.000 --> 0:22:40.879
<v Speaker 3>markets as well. They'll hear from their bankers about what

0:22:40.880 --> 0:22:42.800
<v Speaker 3>they can do in the public markets. Will they also

0:22:42.800 --> 0:22:45.040
<v Speaker 3>go out and put bids out for private credit use?

0:22:45.119 --> 0:22:48.000
<v Speaker 6>So leaving that transaction aside, it is common to see

0:22:48.040 --> 0:22:51.440
<v Speaker 6>what we call dual track processes where corporates cfo's treasures

0:22:51.440 --> 0:22:54.680
<v Speaker 6>evaluate their funding options in both markets, just like anyone

0:22:54.680 --> 0:22:56.360
<v Speaker 6>would do in terms of do I issue a high

0:22:56.359 --> 0:22:58.360
<v Speaker 6>old bond or a leverage loan? Right, that whole kind

0:22:58.359 --> 0:23:01.840
<v Speaker 6>of slate of financing opportunities isailable similar time to your

0:23:01.840 --> 0:23:04.480
<v Speaker 6>point on the M and A funding mix, that's a

0:23:04.520 --> 0:23:07.359
<v Speaker 6>decision that corporates make depending on what is the balance

0:23:07.359 --> 0:23:09.560
<v Speaker 6>sheet capacity that they have to add debt at the

0:23:09.680 --> 0:23:13.120
<v Speaker 6>ratings where they're comfortable, where is their stock price in aggregate,

0:23:13.160 --> 0:23:15.200
<v Speaker 6>I would say that that funding mix for M and

0:23:15.280 --> 0:23:18.440
<v Speaker 6>A is tracking in a fairly kind of benign way

0:23:18.480 --> 0:23:22.080
<v Speaker 6>for bondholders, meaning not skewed super strongly to debt, but

0:23:22.160 --> 0:23:24.639
<v Speaker 6>it does matter a lot under the surface depending on

0:23:24.680 --> 0:23:26.760
<v Speaker 6>the sector. And as you can imagine, there are certain

0:23:26.800 --> 0:23:28.800
<v Speaker 6>kind of cash rich sectors like tech.

0:23:28.640 --> 0:23:31.000
<v Speaker 4>And pharma that are leaning more heavily on cash and debt.

0:23:31.040 --> 0:23:34.159
<v Speaker 1>What will mag seven do. I find it, from a

0:23:34.320 --> 0:23:38.880
<v Speaker 1>z body at Boston University's standpoint, almost immoral that they

0:23:38.880 --> 0:23:40.919
<v Speaker 1>haven't popped out to ten or twelve percent.

0:23:41.119 --> 0:23:44.080
<v Speaker 6>Yeah, Well, in general in the credit market, as you know,

0:23:44.200 --> 0:23:46.520
<v Speaker 6>that's a much smaller section of the credit market relative

0:23:46.560 --> 0:23:49.479
<v Speaker 6>equities leverage, net leverage is still really low for that

0:23:49.520 --> 0:23:52.480
<v Speaker 6>sector in aggregate, So I think it's reasonable to assume

0:23:52.560 --> 0:23:54.399
<v Speaker 6>that when they're adding debt, they're just moving closer to

0:23:54.440 --> 0:23:56.359
<v Speaker 6>their leverage target as they build that up over time.

0:23:56.480 --> 0:23:58.439
<v Speaker 1>Amanda, thank you so much. I'm n aligning with us

0:23:58.440 --> 0:24:11.359
<v Speaker 1>at black Reck just to clinic there, darn. Look at

0:24:11.400 --> 0:24:14.639
<v Speaker 1>the front page is a Lisa matteo our What do

0:24:14.680 --> 0:24:14.960
<v Speaker 1>you have?

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<v Speaker 3>All right?

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<v Speaker 7>So we just talked about you know, Starbucks new ceo

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<v Speaker 7>not working in you know, Seattle. Google's x CEO. He's

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<v Speaker 7>talking about the work from home. He's actually blaming it

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<v Speaker 7>in the company's losing battle in the AI race, so

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<v Speaker 7>he's saying, Eric Schmid, he's also the former executive chairman.

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<v Speaker 7>He said this during a talk at Stanford University. He

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<v Speaker 7>was responding to a question about Google competing with Open Ai,

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<v Speaker 7>and he said Google deciding that work life balance and

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<v Speaker 7>going home early, working from home was more important than winning.

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<v Speaker 4>So that was a shot right there.

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<v Speaker 7>He also said startup work is important because people work

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<v Speaker 7>like heck to get those startups going.

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<v Speaker 5>Yes, you gave me.

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<v Speaker 4>I did give it before you.

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<v Speaker 3>Know, but you're right. I mean, Lisa, I mean the startups.

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<v Speaker 3>I mean he's right on that. I mean you talk

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<v Speaker 3>to folks that work in the startup business. That's their

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<v Speaker 3>entire life. They sues them day and night, and they're

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<v Speaker 3>just it because it's make or break. You either make

0:25:12.600 --> 0:25:15.720
<v Speaker 3>it or you go bust, and so they work like crazy.

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<v Speaker 1>To disclose a loop on this. To The Wall Street

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<v Speaker 1>Journal yesterday, mister Schmidt said, quote, I misspoke about Google

0:25:22.119 --> 0:25:25.879
<v Speaker 1>and their work hours. Schmid said wednesday in an email quote,

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<v Speaker 1>I regret my error. They'll push back. Must have been something, yep.

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<v Speaker 3>But he joins a long list of corporate leaders including

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<v Speaker 3>JP Morgan, Chase CEO, Jamie Diamond and testa CEO Elon Musk,

0:25:37.760 --> 0:25:40.800
<v Speaker 3>who have complained about work from home policies, saying they

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<v Speaker 3>make companies less efficient and less.

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<v Speaker 1>You know what it needs to do out Stanford Pellow

0:25:44.680 --> 0:25:49.600
<v Speaker 1>alto go see you. Professor Booth Nicholas Booth has really

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<v Speaker 1>led on this and actually studying the issue. In a

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<v Speaker 1>lot of tycoons like Eric Schmidt will say I really

0:25:59.480 --> 0:26:02.520
<v Speaker 1>don't care or I don't believe. But the answer is,

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<v Speaker 1>at the minimum, it's raging debate. Ly's I see it

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<v Speaker 1>in the streets of New York. I mean, I'm a

0:26:08.080 --> 0:26:12.520
<v Speaker 1>thunderstruck at Lexington and Park Avenue. I mean, I know

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<v Speaker 1>there's a summer slowdown. I get it, sure, but it

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<v Speaker 1>was more Now work from home?

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<v Speaker 5>Next?

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<v Speaker 1>What do you have?

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<v Speaker 7>This new study shows gen Z voters don't want social

0:26:21.680 --> 0:26:26.400
<v Speaker 7>media restrictions. Shocker here, gen Z voters they don't because

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<v Speaker 7>there's all these talk about regulators trying to cut back

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<v Speaker 7>and get some tough regulations on these social media apps

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<v Speaker 7>to protect kids. But these kids gen Z, you know,

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<v Speaker 7>I'm twelve to twenty seven, They're saying they don't want

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<v Speaker 7>the restrictions. There was a sety out more than sixty

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<v Speaker 7>percent new voters oppose requiring kids under sixteen to ask

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<v Speaker 7>for their parents permission to use social media. The reason

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<v Speaker 7>why this is important, though, is because gen Zers more

0:26:51.640 --> 0:26:54.000
<v Speaker 7>than are getting closer to that voting age, so they're

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<v Speaker 7>starting to have a say in this. And there's such

0:26:56.200 --> 0:26:59.119
<v Speaker 7>a huge proponent of social media. I mean, most of

0:26:59.160 --> 0:27:02.080
<v Speaker 7>the gen z is the most active people on isn't the.

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<v Speaker 1>Biggest debate here on August fifteenth or whatever it is?

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<v Speaker 1>This whole idea. A lot of schools now are saying

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<v Speaker 1>leave your cell phone at the door. Yeah, to me,

0:27:09.920 --> 0:27:11.160
<v Speaker 1>this is a lot bigger deal.

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<v Speaker 3>Yeah, yeah, exactly. I mean I think that's a lot

0:27:14.359 --> 0:27:16.760
<v Speaker 3>of schools in a lot of states, but actually not

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<v Speaker 3>a lot of states. I think there's about eight or

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<v Speaker 3>nine states that have had some legislation saying, you know,

0:27:20.600 --> 0:27:24.160
<v Speaker 3>you got to put your phone here in a secure place.

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<v Speaker 3>You're not taking into the classroom.

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<v Speaker 7>Right like my daughter, Yeah for dinner, Yes, we do

0:27:29.560 --> 0:27:29.920
<v Speaker 7>that too.

0:27:30.320 --> 0:27:33.480
<v Speaker 3>No cell phones, phones, households.

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<v Speaker 1>It is bill, all of you misskiing my phone. All

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<v Speaker 1>of them get lined up good, but then we all

0:27:41.280 --> 0:27:43.200
<v Speaker 1>dash for them afterwards.

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<v Speaker 4>I don't want to serve you go for the phone.

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<v Speaker 7>No, but it's true a lot of them, like even

0:27:47.960 --> 0:27:49.800
<v Speaker 7>my daughters school. You got to keep it in the backpack.

0:27:50.119 --> 0:27:52.960
<v Speaker 7>But there is notifications too, Like the kids turn on

0:27:53.000 --> 0:27:56.320
<v Speaker 7>notifications for social media, so their phone's constantly dinging, you

0:27:56.359 --> 0:27:58.280
<v Speaker 7>know when they get like some kind of posts or

0:27:58.280 --> 0:28:02.480
<v Speaker 7>someone responds to them. So it's distraction. Okay, we've been

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<v Speaker 7>talking about, you know, grocery stores, a growing grocery built well,

0:28:06.320 --> 0:28:09.359
<v Speaker 7>grocery stores are now getting selective about their shelf space.

0:28:09.440 --> 0:28:12.040
<v Speaker 7>We talked about them leaving more space for the store

0:28:12.080 --> 0:28:15.760
<v Speaker 7>brands because people are switching to the store brands that

0:28:15.960 --> 0:28:18.600
<v Speaker 7>see you've done it, I've done it too. So you

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<v Speaker 7>see the grocery aisles starting to change.

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<v Speaker 2>Now.

0:28:21.119 --> 0:28:22.280
<v Speaker 4>These major food.

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<v Speaker 7>Companies they're fighting for the shelf space. You know that

0:28:24.920 --> 0:28:27.360
<v Speaker 7>they once had that major part of it, and now

0:28:27.400 --> 0:28:29.679
<v Speaker 7>they're fighting for it for the store brands who are

0:28:29.720 --> 0:28:32.400
<v Speaker 7>getting you know, some more greater competition there. They're trying

0:28:32.400 --> 0:28:34.400
<v Speaker 7>new things, they're trying new products, they're trying to work

0:28:34.440 --> 0:28:38.200
<v Speaker 7>to ensure they're packaging prices appeal to shoppers. But the

0:28:38.240 --> 0:28:40.800
<v Speaker 7>thing is, yesterday.

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<v Speaker 3>I learned a new term that I had not heard before.

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<v Speaker 3>It's called inner store. Jen Bartash to cover supermarkets grocery

0:28:47.360 --> 0:28:50.400
<v Speaker 3>stores for Bloomberg Intelligence, just throughout this term innerstore, and

0:28:50.480 --> 0:28:53.080
<v Speaker 3>like what's inner store. That's the stuff that's like in

0:28:53.120 --> 0:28:56.720
<v Speaker 3>the core of the supermarket, and that's like the basics,

0:28:57.000 --> 0:29:00.880
<v Speaker 3>soups and things like that. The outer of the store,

0:29:00.920 --> 0:29:03.040
<v Speaker 3>the edges of the aisles, the ends of the aisles

0:29:03.080 --> 0:29:06.320
<v Speaker 3>are the higher margin stuff and where they tend to

0:29:06.320 --> 0:29:09.480
<v Speaker 3>have maybe some promotions and things like that. Where the

0:29:09.560 --> 0:29:11.880
<v Speaker 3>basics the stuff you just have to get every time

0:29:12.080 --> 0:29:13.680
<v Speaker 3>that you don't need to promote, you don't need to

0:29:13.840 --> 0:29:16.040
<v Speaker 3>do anything that's in there. I don't.

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<v Speaker 1>I'm in the camp that everybody's buying the same thirty

0:29:18.760 --> 0:29:21.640
<v Speaker 1>seven products. Try to get a court or a half

0:29:21.680 --> 0:29:25.320
<v Speaker 1>gallon of one percent milk. Good luck with that, all

0:29:25.360 --> 0:29:29.920
<v Speaker 1>sold out. Butter gone. Everybody wants the same. It's an

0:29:29.920 --> 0:29:32.960
<v Speaker 1>Irish butter yes, but.

0:29:34.600 --> 0:29:35.440
<v Speaker 4>More Yes.

0:29:35.480 --> 0:29:40.560
<v Speaker 7>Your favorite topic break dancing in the Olympics. So there's

0:29:40.600 --> 0:29:45.440
<v Speaker 7>actually some controversy around it now because there's a breaker

0:29:45.440 --> 0:29:48.480
<v Speaker 7>from Australia. Her name is Rachel Gunn her aka raygun

0:29:48.720 --> 0:29:51.600
<v Speaker 7>She's from Sydney. She's a Sydney University professor. She did

0:29:51.640 --> 0:29:54.720
<v Speaker 7>this dance it was called like the Kangaroo dance. She

0:29:54.760 --> 0:29:58.120
<v Speaker 7>did some other weird moves, but she scored zero points.

0:29:58.360 --> 0:29:59.680
<v Speaker 7>And the thing is that a lot of people are

0:29:59.720 --> 0:30:03.680
<v Speaker 7>making zero a lot of people making fun of her.

0:30:03.960 --> 0:30:06.400
<v Speaker 7>They went to the late night talk shows. But there's

0:30:06.440 --> 0:30:10.640
<v Speaker 7>actually an online petition that's criticizing her. So now you

0:30:10.640 --> 0:30:14.080
<v Speaker 7>have the Australian Olympic Committee getting in the middle and saying, hey,

0:30:14.320 --> 0:30:16.960
<v Speaker 7>leave this one alone, like she you know, we represent

0:30:17.080 --> 0:30:19.480
<v Speaker 7>you know, we're we're behind her. They support her, But

0:30:19.640 --> 0:30:21.320
<v Speaker 7>the question is will it come back to.

0:30:21.240 --> 0:30:25.600
<v Speaker 3>The elete some Olympic sports? How does something get approved

0:30:25.640 --> 0:30:26.720
<v Speaker 3>of be an Olympic sports?

0:30:26.720 --> 0:30:30.280
<v Speaker 1>A lot of politics? I guess I don't know.

0:30:30.480 --> 0:30:32.920
<v Speaker 3>I mean, did Rich Truman agreed to say breakdancing?

0:30:33.200 --> 0:30:35.040
<v Speaker 7>I mean, I don't get how you have breakdancing you

0:30:35.040 --> 0:30:37.800
<v Speaker 7>don't have like softball or basically, yes.

0:30:38.160 --> 0:30:43.000
<v Speaker 1>Potaged Lisa's hair in glam Rock, Yes, totally. Lisa is

0:30:43.040 --> 0:30:47.240
<v Speaker 1>out on Long Island jon Jets playing Thursday Night. She's

0:30:47.280 --> 0:30:50.080
<v Speaker 1>got the five inch platform, you know, the shoes on

0:30:50.640 --> 0:30:54.800
<v Speaker 1>the glam Rock hare. We did boy bands yesterday. Although

0:30:55.520 --> 0:30:59.800
<v Speaker 1>the emails are so kind. This is the Bloomberg Surveillance

0:30:59.800 --> 0:31:04.040
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