Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Paul Sweeney along
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Speaker 2: the Bloomberg Terminal, and the Bloomberg Business App. Let's check
Speaker 2: in with somebody who knows what's going on out there
Speaker 2: in the Market's Christina Hooper. She's a chief global market
Speaker 2: strategist for Investco. Christina, it's been a busy week here.
Speaker 2: I mean, we've had a lot of central bank movement here.
Speaker 2: We've had a lot of IPO markets or activity in
Speaker 2: the markets as well. Let's start with the Federal Reserve
Speaker 2: here and some of the other central banks. Quite frankly,
Speaker 2: what did you take from the Fed and the other
Speaker 2: central banks?
Speaker 3: Commentary this week?
Speaker 4: Paul, we are headed to an easier environment for monetary policy,
Speaker 4: and as I think you know, I've been a big
Speaker 4: believer that monetary policy has and will continue to drive markets,
Speaker 4: and that's why I think we've had such a good week.
Speaker 4: Even in terms of IPOs, Sentiment has gotten more positive
Speaker 4: because we know the end is insight and that we're
Speaker 4: going to start to see rate cuts. In fact, the
Speaker 4: Swiss National Bank gave us a nice surprise this week,
Speaker 4: our first present from major developed central banks in terms
Speaker 4: of cutting. But this is just the beginning, and this
Speaker 4: is so different than the environment we saw in twenty
Speaker 4: twenty two, where we had surprise rate hikes, a whole
Speaker 4: flurry of them, so much so that the World Bank
Speaker 4: warned in September of twenty twenty two that this synchronized
Speaker 4: tightening was something we hadn't seen in many decades. Well,
Speaker 4: now we're getting to see what I think will be
Speaker 4: synchronized cuts over the course of this year, which should
Speaker 4: be very supportive for markets.
Speaker 1: Yeah, could you talk a little bit more about what
Speaker 1: you see as the markets play here, because we've talked
Speaker 1: so frequently on this radio program about how frothy equity
Speaker 1: markets are getting. So where does an investor go here?
Speaker 4: Well, I think an investor needs to be well diversified.
Speaker 4: We shouldn't ignore the US, but we do know that
Speaker 4: valuations are much higher here than elsewhere, and so this
Speaker 4: is a great opportunity to sharpen pencils and look around
Speaker 4: the world for potential, and that potential can come from Japan. Interestingly,
Speaker 4: their central bag is in a different place, just beginning tightening,
Speaker 4: normalizing monetary policy. But that is a vote of confidence
Speaker 4: in the Japanese economy, and I think well really spur
Speaker 4: attention more investor interest in the Japanese stock market. Emerging
Speaker 4: markets valuation opportunity abound, and in particular Asia em looks
Speaker 4: attractive right now. There's growth potential there as well as valuations,
Speaker 4: and against supportive monetary policy, we're likely to see a
Speaker 4: weakening US dollar, which should help going outside the US.
Speaker 4: But again there's still opportunity in the US, so investors
Speaker 4: shouldn't ignore it, and I shouldn't be just talking about equities.
Speaker 4: There are opportunities in fixed income. We're in a different
Speaker 4: place than than where we've been for years in terms
Speaker 4: of yield. We had lived in a yield scarce environment.
Speaker 4: We're not there. I wouldn't say it's a golden age
Speaker 4: of fixed income. But fixed income looks very attractive, and
Speaker 4: there are a whole variety of areas that we can
Speaker 4: choose from to make a diversified portfolio. Investment great credit
Speaker 4: looks very attractive to me, but certainly opportunities in emerging markets,
Speaker 4: high yield municipals. Again, there is so much an abundance.
Speaker 4: So if you think about twenty twenty two as an
Speaker 4: anis horribilis for markets, I think that it's something different,
Speaker 4: a very different today and much better environment.
Speaker 2: I kin I want to go to fixed income because
Speaker 2: I'm wondering. I'm just looking at my screen here, Christina,
Speaker 2: and I can just go over to a two year
Speaker 2: United States Treasury and get four points six percent. That
Speaker 2: seems pretty darn good. I mean, is that the trade
Speaker 2: in fixing com or do I try to take some
Speaker 2: credit risk here and think about investment grade credit or
Speaker 2: maybe even what really has been the best performer in
Speaker 2: fixing them, which is high yield.
Speaker 3: How do I think about credit risk?
Speaker 4: Well, I'm a big believer in diversification and thinking for
Speaker 4: the longer term. I don't think it should be about treasuries.
Speaker 4: I think there's a lot of opportunity moving out on
Speaker 4: the risk spectrum, investment grade credit to me is a
Speaker 4: sweet spot. But certainly high yield has been a strong performer.
Speaker 4: And given what we're seeing in the US economy, how
Speaker 4: it looks like a softer landing than we had died.
Speaker 4: I think that makes the case for moving out having
Speaker 4: exposure to high yield. Don't forget Muni's where there's some
Speaker 4: very attractive yeals right now. So there is a lot
Speaker 4: of opportunity. And of course don't forget emerging market. It's
Speaker 4: dead in there.
Speaker 1: Is there anything that you like in particular in emerging markets?
Speaker 1: I mean you mentioned earlier Asia, but anything in Latin America,
Speaker 1: anything in Africa.
Speaker 4: Well, certainly Mexico benefits from a US economy, and so
Speaker 4: I think what we're going to see in the US
Speaker 4: is a pleasant surprise this year. I've been a believer
Speaker 4: that we'd see a bumpy landing. I don't think it's
Speaker 4: going to be as bumpy as I had anticipated, and
Speaker 4: that should be good news for country like Mexico.
Speaker 3: All right, Christina, thank you so much for joining us.
Speaker 3: Christina Hooper. She is the chief Global market strategist for Investco.
Speaker 2: Big Week in Technology let's get a couple of our
Speaker 2: top technology analysts.
Speaker 3: We got them together here on a Rock.
Speaker 2: Na joins us via zoom from Chicago, and Man Deep
Speaker 2: saying he's here in a Bloomberg interactor broker's studio on Rock.
Speaker 2: Let's start with you here. I want to start with
Speaker 2: Apple here. The more I read about this, I'm just
Speaker 2: you know about Apple have facing these anti trust suits
Speaker 2: both here in the US and abroad, have some regulatory challenges.
Speaker 2: I'm not sure if this is a Microsoft thing from
Speaker 2: kind of the nineties whereby I was kind of a
Speaker 2: casting a pall over the stock that just couldn't get
Speaker 2: out of or is it something that this story can
Speaker 2: power through. What's the early read when you talked to
Speaker 2: investors these days?
Speaker 5: Yeah, I mean I mouse confess I was surprised by
Speaker 5: the stock reaction yesterday. I mean, everybody knew this was
Speaker 5: going to happen, so why the surprise And that was
Speaker 5: a bit confusing. But having said that, you know, Apple
Speaker 5: generates so much for a cash flow. It is truly
Speaker 5: the bohemoth when it comes to their operating system, and
Speaker 5: people are taking shots at it and this is not
Speaker 5: going to end and it's a big overhang for the
Speaker 5: stock over the next Cinnicks several years. You know, this
Speaker 5: is not going to go through in the next six
Speaker 5: months or twelve months. This is a multi year problem now,
Speaker 5: I guess.
Speaker 1: Mandy, could you talk a little bit about another issue
Speaker 1: that Apple's been facing. It's had a string of pretty
Speaker 1: bad news about where it is on AI. We have
Speaker 1: these headlines that just have crossed that Apples and talks
Speaker 1: to use bydos Ai and it's Chinese iPhones. You know,
Speaker 1: we had this scoop earlier about the potential tie up
Speaker 1: with Google for AI. I mean, it doesn't look like
Speaker 1: it's really anywhere and the thing that is most hot
Speaker 1: among investors, I.
Speaker 6: Won't characterize it that way. I think in the end,
Speaker 6: Jenni is still so early that you know, when we
Speaker 6: think about who is the real beneficiary, obviously it's Nvidia,
Speaker 6: and when it comes to on device Jenni, which is
Speaker 6: where Apple plays in, nobody is a standout. Yes, Google
Speaker 6: has a model, and obviously Apple is talking about leveraging
Speaker 6: Google Gemini. But maybe it's a sound strategy to have
Speaker 6: a Chinese vendor provide the LM for the Chinese phones,
Speaker 6: because when it comes to LM chatbot functionality. It's all
Speaker 6: about the local language, the local knowledge that the LLLM embeds,
Speaker 6: and it may actually turn out to be a good
Speaker 6: strategy to use local llms wherever Apple has an install base.
Speaker 2: LLM definition Large Language model, which I know that because
Speaker 2: I read the research coming from nDEP and on a
Speaker 2: rock an rag another Apple issue here, and then maybe
Speaker 2: we can broad it out a little bit. But again
Speaker 2: I think I probably speak for most Apple investors is
Speaker 2: I'm still trying to get my head around China. What
Speaker 2: is the risk there for me China, both from a
Speaker 2: demand for my products in China and maybe to a
Speaker 2: lesser extent to supply chain, But that supply chain issue
Speaker 2: still on the table. Where are you where? Where's the
Speaker 2: street on kind of sussing out the China risk for Apple.
Speaker 5: So when you look at you know, Apple, let's over
Speaker 5: a ten year history. It really made inroads in the
Speaker 5: US and the Western world, controlling market share. But the
Speaker 5: next big market is China and that's they were doing well.
Speaker 5: The phone came out last year. It really underscored that
Speaker 5: there was refresh cycle for that particular phone that hasn't
Speaker 5: happened in years. Consumer weakness in China, and Apple's just
Speaker 5: losing market share at this point in terms of you know,
Speaker 5: every quarter when they come out, and it's been a
Speaker 5: very tough market. I don't see that changing at least
Speaker 5: this year. They really need a catalyst to really go
Speaker 5: out and say that, you know, we can we can
Speaker 5: really work in China. Maybe the LLM, maybe the bartorship
Speaker 5: with Baido is one of them. But having said that,
Speaker 5: I don't see any chances that they're going to have
Speaker 5: a big rebound in China at least this year, barning.
Speaker 1: It out a little bit. Another really big tech story
Speaker 1: this week is the Reddit IPO. I mean, that's gone
Speaker 1: incredibly well. Mandy, canase start with you just to talk
Speaker 1: about what your read is on how enthusiastic investors have
Speaker 1: been for this, and like, do you think that this
Speaker 1: is really an AI play? Paul is skeptical.
Speaker 6: So, I mean, as I mentioned yesterday when I was
Speaker 6: on your show, that look, Reddit has got something unique
Speaker 6: when it comes to the user data and you know,
Speaker 6: having the wide breadth of online communities, and that is
Speaker 6: I think, really something that stands out versus other social
Speaker 6: media platforms which are far bigger than Reddit. So the
Speaker 6: criticism that I get from investors is it's an eighteen
Speaker 6: year old company that it's not profitable, and for the
Speaker 6: first ten years of its existence it didn't even have
Speaker 6: an ADS model. So it's really in the last five
Speaker 6: years they've started layering ADS and the IPO is coming
Speaker 6: at a good time with this whole JENNYI wave because
Speaker 6: everybody needs to train their models and if you're looking
Speaker 6: for tech's corpus, Reddit is the go to place. So
Speaker 6: to my mind, any product with stickiness where users come
Speaker 6: to your platform every day, and in reddits case, they
Speaker 6: need to boost their daily active users. Their monthly active
Speaker 6: users is far higher than their daily active users. If
Speaker 6: they're able to execute on that, I think they'll do
Speaker 6: quite well in terms of the first six months of
Speaker 6: the IPO.
Speaker 3: Yeah, and you were dead on yesterday.
Speaker 2: You're bullsh yesterday you're against my skepticism here. Stock rallied
Speaker 2: just big time there, So good news for the redifilks,
Speaker 2: good news for the IPO market, even after we had
Speaker 2: that astera of the day before. Also a big aiplan
Speaker 2: net stock is training really well on the IPO market.
Speaker 2: Hey Anna Rod, I think you know the name that
Speaker 2: I know you've been panning the table on a lot.
Speaker 2: Is Microsoft here? What's the latest call here?
Speaker 4: On?
Speaker 2: Microsoft is still firmly in that magnificent I don't know
Speaker 2: whether it's five or seven, what it is these days,
Speaker 2: but what's the call here?
Speaker 5: I think in the software world, if you want to
Speaker 5: just pick one company that is truly exposed to AI
Speaker 5: in the most direct way, it is Microsoft right now.
Speaker 5: And I don't see anything changes. I'm actually surprised they
Speaker 5: can go out and pays sic center fifteen million and
Speaker 5: hire so many people and nobody says anything about it.
Speaker 5: I mean, maybe this is the new way of acquiring companies.
Speaker 5: I mean, it is remarkable the amount of money they're
Speaker 5: spending on both on expanding their data centers for cloud
Speaker 5: as well as AI. I see them, you know, differentiating
Speaker 5: their more compare to others over the next few years.
Speaker 1: But I guess one thing, can we just can I
Speaker 1: just keep with this point any ark, because with Microsoft
Speaker 1: they're spread across so many different areas. I mean, you
Speaker 1: start to feel like that old anti trust sort of
Speaker 1: vibe is starting to come back for Microsoft, that regulators
Speaker 1: might start getting really really worried.
Speaker 5: Yeah, as soon as you get a decent amount of
Speaker 5: free cash flow. You will see the regulators come in.
Speaker 5: But I mean, this is nothing that they haven't dealt
Speaker 5: with in the past. There's not one tech company right
Speaker 5: now that's not dealing with them, and I don't think
Speaker 5: that's going to change.
Speaker 2: I mean, it stocks up. I mean, first of all,
Speaker 2: it's a three point two trillion dollar market cap company.
Speaker 3: It's just amazing.
Speaker 2: Year to date, the stocks up fourteen percent, trailling twelve months,
Speaker 2: up sixty percent pe on the June twenty four it's thirty.
Speaker 3: Six times, you know. But you know a lot of
Speaker 3: folks will tell you, hey, we'll grow into that. All right.
Speaker 2: Mandy, you cover so much in the tech space. What's
Speaker 2: your top idea here? What are you guys talking about
Speaker 2: the most these days?
Speaker 6: I mean, right now, our top focus idea is Alphabet
Speaker 6: because all the criticism they've been getting and you know
Speaker 6: the fact that everyone is talking about them losing share
Speaker 6: and search. We got one validation that there are no
Speaker 6: more behind in terms of large anglid model race with
Speaker 6: Apple considering you know, Google Gemini to be the model
Speaker 6: and not Open AI or any other models out there.
Speaker 6: And look, when it comes to search, I think Google
Speaker 6: has the best platform when it comes to add tech
Speaker 6: and time and again we see that. You know, with
Speaker 6: other social media platforms, they're not able to monetize their
Speaker 6: user base and engagement as well as Google does. And
Speaker 6: you see that with Reddit, you see that with Twitter.
Speaker 6: That's why Google search is so unique, because they're able
Speaker 6: to monetize it far better than everyone else. So I'm
Speaker 6: in the camp that they will hold on to their
Speaker 6: search share. In fact, the search market will grow as
Speaker 6: a result of the large anglid models, and Google will
Speaker 6: be a beneficiary.
Speaker 2: All right, Google, googg I'm sorry. Goog l is a
Speaker 2: ticker for the pros out there. It's got a market
Speaker 2: cap at one point eight billion dollars.
Speaker 3: The stuck is trillion. Thank you very much for that correction.
Speaker 3: Thank you. You even beat out Rich Truman on that.
Speaker 2: Stocks up five percent year to date, up forty two
Speaker 2: percent trailing twelve month. Anurag Ran A man Deep Singh
Speaker 2: a couple of our top top leaders in technology research
Speaker 2: for Bloomberg Intelligence.
Speaker 3: They drive the business.
Speaker 2: Let's talk energy here and sustainable energy, and to do that,
Speaker 2: one of the folks we like to check in with
Speaker 2: is Jonathan Maxoy. He's a CEO and co founder of
Speaker 2: sustainable development capital. The name says it all. He joins
Speaker 2: us here on a Bloomberg Interactive Brokers studio. He was
Speaker 2: also the author of a new book which I will
Speaker 2: Plug the Edge, How competition for resources is pushing the
Speaker 2: world and its climate to the brink, and what we
Speaker 2: can do about it. Jonathan, thanks so much for joining
Speaker 2: us here. Did we have President Biden in the administration
Speaker 2: do something with liquefied natural gas and people in the
Speaker 2: energy patch? An, I'm so happy about it. What's going
Speaker 2: on there?
Speaker 7: Yeah, So, a couple of weeks ago there was a
Speaker 7: moratorium on exports new export licenses though export of liquefied
Speaker 7: natural gas to Europe. I'm in putting this into context.
Speaker 7: Europe had to scramble for gas after Russia's invasion of Ukraine.
Speaker 7: And where do you get it from? Well, you know, Kata, Norway.
Speaker 7: But actually one of the biggest, if not the biggest
Speaker 7: exporters is the United States. Right So now, having said
Speaker 7: all of that, we had an announcwerment this week from
Speaker 7: the White House to say, don't worry, you know it
Speaker 7: will be within a year. We'll let these new export
Speaker 7: licenses come back. There was already just to put this
Speaker 7: into context, about fifty billion cubic feet per day authorized.
Speaker 7: That's three times the level of today's exports. So this
Speaker 7: isn't anything to panic about in the short run. Now
Speaker 7: this was dressed or explained as a climate initiative. Now
Speaker 7: I'm in the sustainability business, I would love to think that.
Speaker 7: I'm also expecting having said that, that some thought has
Speaker 7: had to be given to what it could do to
Speaker 7: US prices. Do you know how much more expensive it
Speaker 7: is to buy gas in the versus the United States?
Speaker 7: A lot four to eight times on average over the
Speaker 7: last five years or so, And it's never really over
Speaker 7: the last decade been cheaper other than in one month,
Speaker 7: which was in COVID when everything went upside down. So
Speaker 7: you know, this is a big issue for Europe. It's
Speaker 7: a huge opportunity for the United States to step into
Speaker 7: Russia's shoes here.
Speaker 1: So if it's a huge opportunity for the United States,
Speaker 1: it does still seem to me that President brien has
Speaker 1: just kind of completely undercut that potential advantage, or am
Speaker 1: I missing something?
Speaker 7: I think there's a moratorium. The White House has effectively
Speaker 7: said the moratorium is pretty short lived, and it won't
Speaker 7: really affect anything in the short run. I think the
Speaker 7: bigger picture really for the US, it's an extraordinary energy position.
Speaker 7: It's energy independent, it's the largest largest exporter actually potentially
Speaker 7: of oil and gas in the world. So this is
Speaker 7: quite a challenge. Actually, this is now a big Petra state.
Speaker 7: What do you do in a changing environmental and climate world?
Speaker 2: All right, so we're a sustainable development capital. Where are
Speaker 2: you guys deploying your capital these day? Is where do
Speaker 2: you think is some of the greatest opportunities.
Speaker 7: So look, half of half of our investment, maybe more,
Speaker 7: is actually coming into the United States, So we invest
Speaker 7: in a different type of solution to everybody else, whether
Speaker 7: most of the money is focused. This is big business.
Speaker 7: Energy is one of the biggest business in the world.
Speaker 7: Nine trillion has been invested in renewables. So if you
Speaker 7: think of US as somebody in the clean energy sector,
Speaker 7: you would expect as maybe to be building wind farms
Speaker 7: or sellar parks and plugging it into the grid. The
Speaker 7: place that we get excited actually is what with the
Speaker 7: customer rather than the grid. You're going to have to
Speaker 7: spend California alone is going to have to spend eighty
Speaker 7: billion to build out its grid over the next decade,
Speaker 7: just to transport the existing energy systems. If I told
Speaker 7: you as I do when I come on your show,
Speaker 7: how nuts it is that in the United States in
Speaker 7: Europe about two thirds to seventy percent of the primary
Speaker 7: energy is wasted or lost before it gets to the point.
Speaker 2: I never understood that again, So after seventy percent of
Speaker 2: the energy produced just gets wasted, it goes up into
Speaker 2: the right the air, of the atmosphere, of the everywhere else.
Speaker 7: Yeah, I'll unpack it very quickly, but because it is extraordinary,
Speaker 7: it's the biggest dirty secret of the energy sector, and
Speaker 7: I'll just unpack it to begin. It's why I wrote
Speaker 7: the book actually, and thousands of people read it, and
Speaker 7: if anybody would like to take casure with it, I'd
Speaker 7: love to get your email. So the biggest loss of
Speaker 7: energy happens actually in centralized energy systems. Gas and nuclear
Speaker 7: are two of the largest other than coal, and the
Speaker 7: two of the largest producers of electricity, for example, in
Speaker 7: the United States. The problem is when you put either
Speaker 7: a gas molecule in a turbine or frankly nuclear fuel
Speaker 7: and a power station, only about half of it turns
Speaker 7: into electricity. What happens to the other half, it turns
Speaker 7: into heat. Now, if that heat is being produced very
Speaker 7: far away from the energy load, in other words, where
Speaker 7: the demand is what happens to it, well, not nothing,
Speaker 7: it gets it just disappears into the atmosphere. Ultimately, the
Speaker 7: bits that do escape into space, they don't need it
Speaker 7: up there. So that's the biggest part of the loss.
Speaker 7: It's what they call thermal loss is at the point
Speaker 7: of generation. The solution to that is to generate closer
Speaker 7: to where you need the energy, and then you could
Speaker 7: use the heat, but we don't. There are other bits
Speaker 7: of loss which happen. You lose about ten percent on
Speaker 7: extracting and converting oil and gas, for example, into pipelines.
Speaker 7: Why do I talk about oil and gas as a
Speaker 7: sustainability guy, because eighty percent of the world's energy still
Speaker 7: fossil fuels or oil, gas and coal. And then the
Speaker 7: last piece of it is transmission and distribution systems. Washington,
Speaker 7: I was there yesterday and I'm unbelievably happy to see
Speaker 7: that they're looking on the demand side of this too.
Speaker 7: Now because everything's been about grid, good grid, you know,
Speaker 7: we need to invest in more in the grid. That's
Speaker 7: just to get the energy for miles away into town.
Speaker 7: But do you know what, five to ten percent of
Speaker 7: it gets lost through transmission and distribution system. So you
Speaker 7: added out ten percent plus fifty percent plus ten percent.
Speaker 7: And the Lawrences live in more national laboratories. Numbers they
Speaker 7: produce every July show that now in the United States,
Speaker 7: seventy percent of primary energy is lost before it gets
Speaker 7: to the point of use.
Speaker 1: It's incredible, that's an incredible statistic.
Speaker 3: Well, we have just got back.
Speaker 7: But you know, I think, as I said I was
Speaker 7: in DC yesterday, I'm not going to give away in
Speaker 7: particular confidences, but I'm I think this is now the
Speaker 7: big story of the next decade. You know, here we've
Speaker 7: what do we do? You know we've got.
Speaker 3: Are there technologies to reduce that number?
Speaker 7: Absolutely, Technologies that have existed for a decade, that are
Speaker 7: cost competitive and that are cheaper, cleaner, and more reliable.
Speaker 7: I'll give you a few examples in the United States,
Speaker 7: and we're one of the biggest investors in this space.
Speaker 7: Rooftop solar and storage car ports where you can plug
Speaker 7: directly to the buildings, on site generation. We run on
Speaker 7: site generation for some of the biggest and most important
Speaker 7: steel mills in the United States. So not all of this,
Speaker 7: and that's basically using recycled gases, same stuff turbines and
Speaker 7: engines that people use to generate energy in the middle
Speaker 7: of nowhere. Instead we capture the waste gases and we
Speaker 7: make energy for power and steel on site. Cutting cost,
Speaker 7: cubon and improving reliability data centers is a huge issue, right,
Speaker 7: I mean, it can't go a conversation without talking AI.
Speaker 7: I think it's impolite these days. I'll do it, But
Speaker 7: that AI alone should be about three percent of global
Speaker 7: energy and I demand by the end of this decade. Right,
Speaker 7: but how are you going to get the power to
Speaker 7: the data centers? How are you going to cool them?
Speaker 3: Did you know?
Speaker 7: By the way, for every unit you put into a
Speaker 7: data center of electricity, only zero point sixty five units
Speaker 7: of compute come out the other side. So this is
Speaker 7: the flip side of my point. Even when energy's got there,
Speaker 7: it gets lost at the point of use. So what
Speaker 7: do you do? You improve the mechanic corner, electrical equipment,
Speaker 7: better heating, cooling, In the case of data centers lighting.
Speaker 7: This is the biggest total addressable market in the energy sector,
Speaker 7: not actually about generating more but wasting less.
Speaker 3: See there's somebody that actually does something for a living.
Speaker 3: I mean, I'm my whole wife on wallship pushing paper around.
Speaker 3: That's not These guys actually do stuff.
Speaker 1: Now, it's impressive.
Speaker 3: I know. All right, So let me just let's go
Speaker 3: over this again, folks.
Speaker 2: Jonathan Maxwell, he's a CEO, he's a co founder Sustainable
Speaker 2: Development Capital who's also the author of this book, The Edge,
Speaker 2: How competition for resources is pushing the world and it's
Speaker 2: climate to the brink, and what we can do about it. Again,
Speaker 2: this is to me, this is the energy lost guy.
Speaker 2: He's my energy lost guy. I didn't even know that
Speaker 2: was really a thing, but it's a thing. Jonathan, thanks
Speaker 2: so much for journeys. We really appreciate it. Best of
Speaker 2: luck on that. Keep us up the date on what
Speaker 2: you guys are doing, what the investments are, and what
Speaker 2: our good friends Don and Washington could do to help us.
Speaker 2: All right, folks, you're daily look at the front pages
Speaker 2: around the world. At least miteo what he got for
Speaker 2: us from the newspapers.
Speaker 8: So it's Friday, right, so I figured we do a
Speaker 8: getaway Friday, little travel theme going here. All right, we'll
Speaker 8: start with something on the Bloomberg Boeing directors.
Speaker 9: They're planning to meet next week with top executives.
Speaker 8: From some of their largest airline airline customers who are
Speaker 8: obviously frustrated, frustrated for obvious reasons. One person who won't
Speaker 8: be there though, sources a Tay Bloomberg at CEO Dave Calhoun.
Speaker 9: So that's kind of interest.
Speaker 8: I mean, he's they say he's supportive.
Speaker 9: Of the sessions. Okay, but he won't be there.
Speaker 8: Who will be there as Larry Kellner, he's the chairman
Speaker 8: of Boeing's board, two other three other directors. But it
Speaker 8: just shows that growing frustration that I guess people have
Speaker 8: with him.
Speaker 6: Yeah.
Speaker 1: I feel like, if you're not gonna have the CEO there,
Speaker 1: what is the benefit? What's the upside versus? What is
Speaker 1: the message? Is there a sense that he'll do more
Speaker 1: harm than good, that he's not the one that people
Speaker 1: want to see because they're so angry. What's the deal
Speaker 1: with that?
Speaker 3: Yeah?
Speaker 2: But I mean it's a good it is you can
Speaker 2: make spin. It is a good optical issue here, which
Speaker 2: is the board going out to the big customers saying listen.
Speaker 2: You have our attention here, you have our undivided attention. Yeah,
Speaker 2: we're not coming here telling you anything. We're coming in
Speaker 2: here to listen.
Speaker 3: What do you need?
Speaker 2: We'll take that back to our management team. Maybe maybe
Speaker 2: it's a good thing, but I don't know. It's just
Speaker 2: amazing how this has happened. And we remember asking George Ferguson,
Speaker 2: who covers Boeing for Bloomberg Intelligence, he's covered the company
Speaker 2: for decades. He's never seen it like this, where there
Speaker 2: are so many quality issues here. So these are unusual
Speaker 2: times and maybe some unusual strategies here.
Speaker 8: They're definitely gonna get some unfiltered feedback. Yes, you can say,
Speaker 8: all right, So have you guys ever lost your luggage
Speaker 8: when you've traveled?
Speaker 6: Have you?
Speaker 3: I don't check anything, you don't check to check. Thinks
Speaker 3: since like the eighties, So you fit it all in
Speaker 3: a little back. I go to Europe for two weeks
Speaker 3: with a Duffel bag.
Speaker 1: Oh my gosh, Oh my gosh, you're my hero.
Speaker 9: Right, that's what I say. Have you ever lost the
Speaker 9: luggage jen.
Speaker 1: A long time ago? Yeah, but I did get it back.
Speaker 8: You did get Okay, that's the problem. So back in
Speaker 8: twenty twenty two, there was a rise in this right,
Speaker 8: A lot of people started losing their luggage, so airlines
Speaker 8: started working to fix the problem.
Speaker 9: Most of them did better. In twenty twenty three.
Speaker 8: This is according to the Transportation Department. Nine major US
Speaker 8: carriers actually did better, except four United. They mishandled bags
Speaker 8: more than eleven percent worse than in twenty twenty two.
Speaker 9: But they still perform.
Speaker 8: Better than American airlines, which is usually performing better. So
Speaker 8: they did worse too. A lot of people going using
Speaker 8: Apple air tags to find the rest. That's when you
Speaker 8: use you you do use that, Okay, so they use
Speaker 8: Apple air tags. Allegiant actually performed the best when it
Speaker 8: comes to not losing your luggage, but they this is
Speaker 8: all happening as you hear about, you know, the airlines
Speaker 8: raising the.
Speaker 9: Fees for the checked bag.
Speaker 8: So it's kind of like you're losing them, but I'm
Speaker 8: paying more exactly to jacket.
Speaker 3: It's frustrated. I don't know.
Speaker 2: On the apps now, at least on the United app,
Speaker 2: you can track your bag and see exactly kind.
Speaker 3: Of where it is. Okay, yes, I really, yeah, So
Speaker 3: that's kind of new thing on the United app.
Speaker 1: So you don't need the air tag. I would still
Speaker 1: get the air tag.
Speaker 3: I would trust the air tag.
Speaker 6: Yeah I do.
Speaker 9: But does the air tag take you actually to where.
Speaker 1: The like it does?
Speaker 6: It does?
Speaker 2: And I had sitting on a tarmac and like, you know, Newark. Okay,
Speaker 2: that's not good.
Speaker 1: No, but that's that's how I managed to get my
Speaker 1: bag back when I had a delay because it was
Speaker 1: sitting at on the tarmac and they're like, they're all here.
Speaker 1: I'm like, look at my phone. I can see my
Speaker 1: bag is on the tarmac.
Speaker 9: See. So that does work.
Speaker 8: Okay, see, you solve it all. Right, here's something interesting.
Speaker 8: So you have you know, everybody the miles, right you
Speaker 8: join the programs. If you don't have enough miles for
Speaker 8: a free flight, you can now borrow them from your kids.
Speaker 8: This is through a new program the United Airlines. It's
Speaker 8: letting people pull share their frequent Flyer points with family
Speaker 8: and friends.
Speaker 9: So here's how it works. Let me break it down.
Speaker 8: So the group leader has to be over eighteen, but
Speaker 8: there is no minimum age for others. So that's how
Speaker 8: you can sign up your kids. So everyone in the
Speaker 8: pool has to have their own United Frequent Flyer account.
Speaker 8: People like you have Jet Blue, Spirit Frontier. Like the
Speaker 8: smaller airlines they do this, they do the pooling, but
Speaker 8: United this is a first airline to the first major
Speaker 8: airline to actually do this.
Speaker 2: So well, we kind of like, you know, the Netflix
Speaker 2: password things, So the kids get get booted off of
Speaker 2: my Netflix accounts because they've been mooching off me for years.
Speaker 2: Same thing for the United miles. I mean, I've been
Speaker 2: very benevolent with my miles with the kids, but I
Speaker 2: mean I can't imagine the day when I'm going to
Speaker 2: get any of their miles.
Speaker 9: I was about to say, I don't think they travel
Speaker 9: more than.
Speaker 1: You wait trip, Yeah, some Christmas present if you're a
Speaker 1: little short of cash, have my miles.
Speaker 9: Right, Oh see, there you go.
Speaker 8: Yeah, but it's true because a lot of people have
Speaker 8: been complaining about the miles, so this might be a little.
Speaker 3: Bit of perk.
Speaker 8: Finally, package holidays, you know those all in packages includes flights, hotels, transfers, food, everything.
Speaker 8: They're becoming the hot new thing again. Okay, apparently it
Speaker 8: took a hit because with the Internet people put their
Speaker 8: own packages together. It was mainly a baby boomer thing,
Speaker 8: but the younger travelers they're starting to get more sophisticated.
Speaker 8: They wanted these offers and they want hassle for you vacations.
Speaker 8: They just want people to do the work for them.
Speaker 2: Here we go in September, going back to the motherland
Speaker 2: in Ireland. They can't wait to see me, by the way,
Speaker 2: so we're gonna go over there. And we were looking
Speaker 2: at it like all the books, all the websites do
Speaker 2: and all that kind of stuff, and I'm like, we
Speaker 2: can't do this, we.
Speaker 3: Don't want to do this.
Speaker 2: We walked across the street and said, hey, here's how
Speaker 2: much money I have. Here's kind of where I want
Speaker 2: to go. And literally half hour later they came.
Speaker 3: Back with a proposal. Bum I said, Okayank done.
Speaker 1: That is fantastic. That is the way forward. That is
Speaker 1: the future.
Speaker 8: I e.
Speaker 1: That's beyond old.
Speaker 3: Old fashioned travel agents, you know.
Speaker 9: So does include the food and all that kind of transfer?
Speaker 2: Yeah, yeah, it's a tour, so the only thing so
Speaker 2: they book you on some schlocky seats on United.
Speaker 3: So I just use some of my mouths to upgrade
Speaker 3: because you know, I'm not sitting in the back, you
Speaker 3: know me please.
Speaker 2: So but other than that, they took off everything and
Speaker 2: I think for some of the I don't know some
Speaker 2: of the more advanced trips.
Speaker 3: It kind of makes sense still. I don't know.
Speaker 2: I'm not even sure what I paid for it, but
Speaker 2: in terms of a fee, but it was definitely worth
Speaker 2: it whatever it was.
Speaker 1: You'll be in Ireland, you'll go to a pub, but
Speaker 1: it'll be exactly.
Speaker 3: What would go wrong.
Speaker 9: I think it just makes sense too.
Speaker 8: I mean, just for families traveling, it's easier to have
Speaker 8: that all inclusive, so you're not thinking about having to
Speaker 8: dish out cash and how much who I got to
Speaker 8: give this much to?
Speaker 9: It's just all taken care of.
Speaker 3: Yeah.
Speaker 2: I should have done all inclusive when my kids were
Speaker 2: a little because when you check out after a week,
Speaker 2: you get a bill that's like fifty pages.
Speaker 3: Oh yeah, long because it's.
Speaker 2: Every smoothie, every beer, every soda, and it just kills you.
Speaker 2: As now you go to all inclusive, you literally walk
Speaker 2: out the last day, you don't do anything you've done.
Speaker 9: You can even include gratuities in there if you want.
Speaker 3: Yep.
Speaker 2: Yeah, so anyway, a different way to go. So all right,
Speaker 2: good stuff there. Lisa Mitteo here traveling and between now
Speaker 2: in September. I don't travel anywhere because I'm at the
Speaker 2: Jersey Shore, people can come to meet.
Speaker 3: There's no place in a world I'd rather be.
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