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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: This is Bloomberg business Week Inside from the reporters and

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Speaker 2: editors who bring you America's most trusted business magazine, plus

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Speaker 2: global business, finance and tech news. The Bloomberg Business Week

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Speaker 2: Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.

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Speaker 3: Bowing also at risk of losing its investment grade credit

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Speaker 3: rating is the Planemaker face is the prospect of a

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Speaker 3: drawn out strike by workers that will further disrupt production

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Speaker 3: and cash flow. Carol factory workers walking off the job

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Speaker 3: for the first time in sixteen years. They halted manufacturing

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Speaker 3: across the Seattle hub of Boeing after members of its

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Speaker 3: largest union voted overwhelmingly to reject a contract offer and

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Speaker 3: go on strike. I gotta tell you, George Ferguson earlier

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Speaker 3: this week when you were out Yep, he said, this

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Speaker 3: negotiation is by no means over at this point.

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Speaker 4: All right, So that's why we wanted to check in

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Speaker 4: once again with him. Bloomberg Intelligence Senior Aerospace, Defense and

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Speaker 4: Airlines Alls George Ferguson does join us from New Jersey. George,

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Speaker 4: First of all, we've been, you know, anticipating this, this

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Speaker 4: strike long versus short How important is that?

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Speaker 1: So?

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Speaker 5: I think very important to Boeing. I'm sure the machinists

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Speaker 5: as well, but the Boeing I think more so. Right,

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Speaker 5: a long strike really, I think runs the risk of

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Speaker 5: hurting the supply chain even more so, I think if

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Speaker 5: boe gets into this strike, they have to really think

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Speaker 5: about cash cash on their balance sheet. We think they're

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Speaker 5: likely to burn three three and a half billion dollars

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Speaker 5: where the cash in three q probably putting them close

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Speaker 5: to about nine billion dollars of cash in the balance sheet. Wow,

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Speaker 5: that's about the bottom of I think what they need

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Speaker 5: to run the company. And so I think, you know,

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Speaker 5: if they don't get workers back on lines building airplanes,

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Speaker 5: bringing cash in the door, they'll have to go. They'll

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Speaker 5: definitely have to go to the capital markets. And then

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Speaker 5: they got to figure out, right they want to go

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Speaker 5: to the debt markets. I think the rating aencies wouldn't

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Speaker 5: like that for sure, right, that might push them into

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Speaker 5: less than the investment great they do that.

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Speaker 6: Equity investors never liked being diluted.

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Speaker 5: So the cash position and some of those considerations mean,

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Speaker 5: you know, Boeing's back is sort of really against the

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Speaker 5: wall here.

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Speaker 4: Well, talk to us about this Moody's. This is about

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Speaker 4: two hours ago or so. Moody says Boeing. Boeing's ratings

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Speaker 4: maybe cut to junk with a company that already you

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Speaker 4: just walked us through the Boeing balance sheet already stressed.

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Speaker 7: What would that mean if.

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Speaker 4: It was cut to junk, and especially if it sounds

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Speaker 4: like it could need to tap the capital markets, debt

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Speaker 4: markets in particular.

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Speaker 5: Yeah, So, I mean, I'm not the credit analyst ongoing,

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Speaker 5: but I'll tell you that. You know, I've spent time

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Speaker 5: in credit teams at Blackrock and such, so I don't

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Speaker 5: know the exact spread they would get enough to go

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Speaker 5: play around that, but it'll mean higher spreads, right, which

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Speaker 5: mean higher interest rates for raising money at Boeing. Plus,

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Speaker 5: you get into this bad game where when a company

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Speaker 5: goes less than investment grade, there are some funds that

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Speaker 5: can't hold less than investment great paper, right, and sometimes

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Speaker 5: they'll end up having to get that, you know, put

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Speaker 5: that paper on the on the market. That doesn't help

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Speaker 5: prices of the debt either. So two things I think

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Speaker 5: they really want to be avoiding bone What.

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Speaker 3: About reputational damage here? We've talked a lot about financial damage,

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Speaker 3: but what about reputational damage. I mean, at the end

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Speaker 3: of the day, this is a I think it's fair

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Speaker 3: to say a lot of people would call this a duopoly. George,

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Speaker 3: Is the company at risk from a customer perspective at all?

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Speaker 3: Or are these customers locked in because you know, Airbus

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Speaker 3: is sold out of the A three twenty till the

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Speaker 3: end of the decade.

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Speaker 5: Yeah, I think that makes it hard right for people

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Speaker 5: to move, for customers to move, you know, and we

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Speaker 5: continue to watch deliveries every single month and there's still

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Speaker 5: a lot of core customers. We even looked at the

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Speaker 5: expected deliveries till the end of the year, and it's

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Speaker 5: core customers.

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Speaker 6: That are taking airplanes.

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Speaker 5: It's it's Ryanair at Southwest, United Airlines, it's Alaska, it's

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Speaker 5: gall out of Brazil, it's COPA out of Panama, all

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Speaker 5: good airlines.

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Speaker 6: I think going less than investment grade doesn't worry them.

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Speaker 5: They're I think they're just watching closely to see how

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Speaker 5: stable Boeing is. If they can improve manufacturing, improved quality,

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Speaker 5: I think that alone will keep them coming back to Boeing.

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Speaker 5: Like you said, due to the long stretch for A

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Speaker 5: three twenties due to the cost of changing airplane types

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Speaker 5: in those fleets.

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Speaker 6: Lots of those fleets are are pure.

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Speaker 5: Fleets, so you save money on by the training and

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Speaker 5: save money on your maintenance pools and things like that.

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Speaker 5: But I mean, I think you know this is not

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Speaker 5: a road that Boeing wants to keep going down. Clearly, right,

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Speaker 5: when you go less than investment grade, it means risks

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Speaker 5: are rising of a default.

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Speaker 6: US government probably don't see that, lees they don't want

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Speaker 6: to see them. That's the challenge, right, is that you've

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Speaker 6: got to stem in at some point.

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Speaker 4: I'm not sure if we've showed this already to viewers

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Speaker 4: and for those folks are listening on radio as well,

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Speaker 4: but Boeing's revenues, we've got a chart and it just

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Speaker 4: shows how they have been declining right and moving lower,

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Speaker 4: and I understand the reasons why. And we're bringing up

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Speaker 4: the chart and you're seeing, you know, the last couple

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Speaker 4: of quarters. This is not a trend line that you

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Speaker 4: want to see. It's not a healthy trend line. What

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Speaker 4: does it take to turn it around at this point?

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Speaker 5: Yeah, I mean, I think that they have in place

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Speaker 5: what they need to turn it around, right, And that

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Speaker 5: was after the Alaska door problem right there. Really needed

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Speaker 5: to get the FAA comfortable that they were improving manufacturing,

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Speaker 5: improving quality.

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Speaker 6: You know, they're going to.

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Speaker 5: Go in and buy Spirit Aerosystems, major supplier of the

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Speaker 5: fuselage in the seven thirty seven.

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Speaker 6: And now I should step back and say, look, the

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Speaker 6: seven thirty seven is right.

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Speaker 5: It's really I think the most critical component of this

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Speaker 5: turnaround because that's the money maker, the profit generator at

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Speaker 5: the company, and that's where they've had their problems, right

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Speaker 5: and they've got a plan in place to go buy

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Speaker 5: Spirit Aerosystems, and now it's a fun keeping that supply

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Speaker 5: chain healthy enough and starting to increase, you know, the

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Speaker 5: components they build, so Boeing can pull those into the factory,

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Speaker 5: build more airplanes, push them out the door, and generate

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Speaker 5: revenue and cash flow. Going is sitting though on eighty

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Speaker 5: five billion dollars in inventory right now, is taking from

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Speaker 5: suppliers at a thirty one rate, and they're not delivering

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Speaker 5: at a thirty one rate, and that becomes the problem too.

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Speaker 3: Hey, George, we only have like ten seconds left here,

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Speaker 3: But back to the strike. What's the timeline that investor

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Speaker 3: should understand here. How long do you think it'll take

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Speaker 3: to get resolved?

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Speaker 5: You know, I really think this is going to be

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Speaker 5: resolved in a couple of weeks to a month. I

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Speaker 5: just don't see going able to let it go on

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Speaker 5: much longer than that. I think they just have to

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Speaker 5: increase the salary, you know, increases, and they're going to

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Speaker 5: have to.

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Speaker 6: I think the union is going to want more guarantees

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Speaker 6: on an airplane. The long to take the next seveneen seven.

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Speaker 4: Yeah, the CFO already talking about the goal of building

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Speaker 4: thirty seven thirty seven Max jets a month by year

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Speaker 4: and will take longer due to the workers strike, so

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Speaker 4: we know that there's already some delays. George Ferguson, thank you,

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Speaker 4: Thank you as always, have a great weekend.

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Speaker 2: You're listening to the Bloomberg Business Week podcast. Catch us

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Speaker 2: Live weekday afternoons from two to five pm. Easter Listen

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Speaker 2: Bloomberg Business app or wants us Live on YouTube.

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Speaker 4: In the United Airlines announcing a deal for SpaceX's Starlink

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Speaker 4: to power it's in flight Wi Fi, becoming the first

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Speaker 4: major US carrier to use the satellite system and giving

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Speaker 4: the Elon Musk run company, a marquee customer. Now the

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Speaker 4: telecom sector and how we stay connected. It really continues

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Speaker 4: to evolve, gets disrupted. Which brings us to the tiny

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Speaker 4: telecom company that wants to compete with SpaceX.

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Speaker 7: Check this out, everybody.

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Speaker 4: It has become one of the hottest stocks in the

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Speaker 4: world this year after soaring from two dollars to nearly

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Speaker 4: thirty dollars.

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Speaker 7: In just six months. So Tim, let's get to the interview.

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Speaker 3: It's up another thirteen percent as we speak today. Joining

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Speaker 3: us from Boston, We've got Scott was Newski, president of

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Speaker 3: the eight point one billion dollar market cap wireless telecom

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Speaker 3: company AST Space Mobile, the company building a global cellular

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Speaker 3: broadband network in space to operate directly with standard unmodified

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Speaker 3: mobile devices. Scott, Welcome to Bloomberg Business Week. Good to

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Speaker 3: have you explain for the layperson how this technology works

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Speaker 3: and how it's different from typical five G technology that

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Speaker 3: they'd get from a typical wireless operator that sends them

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Speaker 3: the signal on the ground.

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Speaker 8: Well, thank you for having us today.

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Speaker 9: Our technology is space based, it's in lower forbit and

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Speaker 9: it functions as a sort of replacement for a seal

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Speaker 9: tower on the ground. It uses today's wireless frequencies, today's

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Speaker 9: cell phones, and it's backwards compatible with the five billion

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Speaker 9: plus phones that we use today around the world.

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Speaker 8: So you are a user.

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Speaker 9: Our partners in the US are AT and T and Verizon.

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Speaker 9: If you're a customer of one of them, have a

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Speaker 9: plan with them. The phone in your pocket in the

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Speaker 9: future will be able to access our satellite, our satellite

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Speaker 9: network in space, and so we have the technology and

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Speaker 9: the patents to make that work in a way that

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Speaker 9: was never contemplated before because space is so far away.

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Speaker 8: But we have the technology in orbit.

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Speaker 9: We just launched five satellites this week, and the size

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Speaker 9: of our satellites allow us connect to regular, small, low

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Speaker 9: powered cell phones.

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Speaker 3: In your view, Scott, does this replace cell phone towers?

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Speaker 3: Should companies like American Tower be concerned?

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Speaker 9: Well, that's an excellent question when we often get but

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Speaker 9: American Tower is actually invested in US twice. So we

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Speaker 9: are designed to supplement cellular networks on the ground. Because

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Speaker 9: of physics, terrestrial networks will always be best served people

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Speaker 9: that are nearby. Our towers in the sky are over

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Speaker 9: five hundred miles away, so we.

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Speaker 8: Are a supplemental coverage.

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Speaker 9: When your phone is quiet and has no coverage or

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Speaker 9: weak coverage, that's when we come in. And it makes

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Speaker 9: a lot of sense for us because we have the

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Speaker 9: able to cover half the country with.

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Speaker 8: Only one satellite at a time.

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Speaker 9: So it's a very efficient way for operators like ATMT

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Speaker 9: and Verizon and the other forty five around the world

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Speaker 9: that we have agreements with, who collectively have over two

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Speaker 9: point eight billion subscribers. So we're really an extension of

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Speaker 9: their networks, and we were designed from the beginning to

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Speaker 9: complement their networks, work with their distinct technology and work

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Speaker 9: with the phone in your pocket without even.

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Speaker 4: Million all right, so supplementing, complementing, But at some point

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Speaker 4: couldn't be couldn't be that what you do be comprehensive.

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Speaker 4: I mean, I think about Starlink, and they certainly look

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Speaker 4: to seem to want to be comprehensive in terms of

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Speaker 4: their capabilities. But I'm curious for you guys. You know,

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Speaker 4: American Tower might be joining up with you guys just

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Speaker 4: to be prepared for kind of what's next and what

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Speaker 4: might be the future, rather than what they are doing currently.

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Speaker 9: Yeah, it's a really interesting question, and it gets back

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Speaker 9: to what the cell company is and the tower companies

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Speaker 9: have created over the last couple decades, which is an

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Speaker 9: incredible network that covers most of the population. There are

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Speaker 9: there are spots that are missed, but today's trestrial networks

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Speaker 9: are very good, so so we'll never replace that.

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Speaker 8: It's just a question of physics.

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Speaker 9: Our satellites are the largest ever put into lower th

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Speaker 9: orbit commercially, it's over seven hundred square foot each. We've

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Speaker 9: been flying one for the last two years and we

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Speaker 9: just launched five more yesterday. So we are going to

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Speaker 9: be able to provide a lot of coverage from a

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Speaker 9: from a satellite perspective.

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Speaker 7: What's a lot? What's a lot?

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Speaker 4: When you think about people who are using would need

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Speaker 4: to tap into the service sixty seventy percent, what's a lot?

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Speaker 9: Well, we have the ability so you may be familiar

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Speaker 9: with other satellite services. They're they're starting to pop up

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Speaker 9: on phones today and those tend to be SOS, emergency,

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Speaker 9: maybe some limited texting.

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Speaker 8: We've tested four.

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Speaker 9: G five G speeds to the phone over the last

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Speaker 9: year and that was a big part of the technical

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Speaker 9: demonstrations we did last year where our partners eighteen in

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Speaker 9: Vota Phone in Europe and racketing in Japan, and so

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Speaker 9: we've done over twenty megabits per second to the phone.

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Speaker 8: But this is a supplement.

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Speaker 9: Think about extra gigabytes to the phone, not your base package. Typically,

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Speaker 9: this is an add on for when you're moving in

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Speaker 9: and out of coverage as you live, work and travel,

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Speaker 9: or importantly in the developing world. We have the ability

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Speaker 9: to help really put a dent in the two point

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Speaker 9: five billion people who don't have any cellular broadband access today.

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Speaker 9: So it's really meant to be a supplement, but it

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Speaker 9: is a large supplement, and that's why it's a cellular

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Speaker 9: broadband network.

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Speaker 3: Scott, we said, do you want to compete with SpaceX,

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Speaker 3: but you also rely on SpaceX. For example, yesterday you

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Speaker 3: launched five commercial satellites a top a SpaceX Falcon nine rocket.

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Speaker 3: Explain your relationship with SpaceX here, and remember SpaceX owns Starlink.

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Speaker 3: So that's why we're talking about this.

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Speaker 9: That's right, And so what we're doing is very different

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Speaker 9: from what Startling and others that this is historically done, which.

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Speaker 8: Is talking to a dish.

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Speaker 9: You know, we're standing up a brain new vertical within

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Speaker 9: satellite telecommunications of going directly to the phone and it's

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Speaker 9: all about working with the wireless carriers globally, so we're

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Speaker 9: not a closed system. We work with today's standard phones,

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Speaker 9: which have been standardized globally and are really incredible and

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Speaker 9: we all benefit from them every day. So we're standing

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Speaker 9: up a new vertical within satellite telecommunications that really looks

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Speaker 9: and feels like a wireless network and to get to

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Speaker 9: orbit to build that network, we're actually we're actually vertically integrated.

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Speaker 8: We're based in Texas. We build our own satellites.

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Speaker 9: It's an incredible core competency of ours and very very

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Speaker 9: important to building any lower orbit networks. So we build

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Speaker 9: our satellites ourselves, and then in terms of launching that network,

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Speaker 9: we plan to work with all the major launch providers globally.

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Speaker 4: What's the toughest part of what you are doing right now?

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Speaker 4: Do you have enough capital to do what you need? Obviously,

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Speaker 4: investors are pretty excited about what you're doing.

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Speaker 7: What's the difficulties now?

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Speaker 8: The unlock for us this year was really it really started.

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Speaker 9: In January when we announced investment from AT and T,

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Speaker 9: Vota Phone and Google, and then we follow that up

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Speaker 9: with investment by Verizon in May. And so for US

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Speaker 9: we're publicly traded on the Nasdaq. We've raised over one

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Speaker 9: point five billion. We feel very good about our capitalization

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Speaker 9: to achieve our near term objectives, and so.

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Speaker 8: We feel good about capital.

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Speaker 9: We feel great about the technology, with the demonstrations we've

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Speaker 9: done over the last two years with our in orbit satellite. Yeah,

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Speaker 9: and for us, it's really a race against time. We're

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Speaker 9: building our satellite network as fast as we can, and

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Speaker 9: our partners are very excited and based on the hundreds

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Speaker 9: of investors who traveled to watch our launch this week

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Speaker 9: at five am in the morning, they're very excited as well.

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Speaker 9: I think there's a real strong latent demand for our service,

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Speaker 9: and it comes from the fact that when our phone

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Speaker 9: does not work, we feel very heavy.

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Speaker 8: In our pocket paste and so.

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Speaker 7: Super quick ten seconds. Do you go it alone? Is

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Speaker 7: that the plan? Or would you be open to linking

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Speaker 7: up with someone real quickly?

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Speaker 9: Well, we're already partnered with many wireless operators right age,

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Speaker 9: So that's all we do is we need them.

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Speaker 4: All right, good, leave it there, look forward to future conversation.

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Speaker 4: Scott Wazanouski, he's president, chief president of AST Space Mobile,

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Speaker 4: joining us.

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Speaker 2: You're listening to the Bloomberg Business Week Podcast. Listen live

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Speaker 2: each weekdays starting at two pm Easter on Apple car

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Speaker 2: Play and Android Auto with the Bloomberg Business App. You

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Speaker 2: can also listen live on Amazon Alexa from our flagship

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Speaker 2: New York station, Just say Alexa Play Bloomberg eleven thirty.

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Speaker 4: All right, we knew we had to do this story,

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Speaker 4: no doubt about it. It is among the most read

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Speaker 4: on the Bloomberg terminal. It's also because it's someone associated

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Speaker 4: with former President Donald Trump and key and Trump's thoughts

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Speaker 4: when it comes to crypto. All right, we couldn't say

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Speaker 4: it enough. Today we want to get to the dirt

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Speaker 4: bag of the internet. We are going to ask about that.

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Speaker 4: That kind of name, if you will, is the reporter

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Speaker 4: who's been looking into him, writing about him.

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Speaker 7: It is Zeke Fox.

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Speaker 4: He's Bloomberg News Financial investigations reporter, author of Number Go Up,

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Speaker 4: Inside Crypto's wild Rise and Staggering Fall. So he follows

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Speaker 4: the crypto world very closely. Zeke is with us in

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Speaker 4: New York City.

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Speaker 7: All right, Zeke? Who is Chase Harrow or should we

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Speaker 7: say Chase Hero, which is kind of it.

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Speaker 10: It is pronounced hero, even though he spells it with

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Speaker 10: two rs and he's the man behind World Liberty Financial,

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Speaker 10: which I mean, just this in itself is kind of shocking.

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Speaker 10: This is a crypto startup that the Trumps are promoting

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Speaker 10: just you know, a couple of months before the election,

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Speaker 10: and Donald Trump is going to unveil all the details

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Speaker 10: he promises in a live stream on Monday. So I

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Speaker 10: decided to dig into this business partner. And like you said,

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Speaker 10: he calls himself the dirt bag of the Internet. And

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Speaker 10: that's just the beginning of the story.

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Speaker 4: Just what every presidential candidate wants to be connected with,

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Speaker 4: the dirt bag of the Internet.

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Speaker 3: Well, what do we know about Trump's connection to this?

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Speaker 3: What role does he play in it? What role do

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Speaker 3: his sons play in it? How connected is he to it?

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Speaker 10: So here's the story from what I've heard, is that Hero,

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Speaker 10: who until recently was running a one hundred and forty

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Speaker 10: nine dollars a month get rich Quick class and he's

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Speaker 10: a total unknown in the crypto world. But through a

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Speaker 10: friend of Trump's, he got connected to the Trumps, and

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Speaker 10: Hero had a defive venture called Doe Again just one

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Speaker 10: of like countless crypto startups that seem to have failed

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Speaker 10: to attract much Trading at All is a place to

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Speaker 10: borrow and lend, but just only attracted a few million

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Speaker 10: dollars before getting hacked, and Hero pitched them on starting

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Speaker 10: a new venture that would be similar to DOE. But

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Speaker 10: it's called World Liberty and I obtained a white paper

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Speaker 10: for it. The Donald Trumps is at the top of

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Speaker 10: the list of the people involved. His sons, Donald Trump

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Speaker 10: Junior and Eric are Web three ambassadors, and even Baron Trump,

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Speaker 10: his eighteen year old son, who just started his freshman

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Speaker 10: year at NYU, is listed as a defive visionary. So

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Speaker 10: the Trump family seems to be, you know, deeply connected

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Speaker 10: to this. But from what I've heard, it's a Hero

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Speaker 10: and his longtime friend and business partner, Zachary Folkman, who

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Speaker 10: used to be a teach pickup artist classes like how

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Speaker 10: to teach men how to hit on women. These are

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Speaker 10: the brains of the operation.

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Speaker 7: I mean, I know we're having fun with this. I mean,

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Speaker 7: but I feel like, you know, the crypto world like.

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Speaker 4: We have to be careful. We've seen, you know, when

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Speaker 4: things can go astray. I mean, what do you I

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Speaker 4: don't know the respected folks within the crypto world do

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Speaker 4: they know this person, do they have views on this person.

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Speaker 10: Right, like crypto, this is in the industry where you know,

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Speaker 10: it counts as like a innovative startup if you just

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Speaker 10: sell coins with a picture of a dog or a

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Speaker 10: cat on them or something like that. And even in

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Speaker 10: this world crypto investor were like, we never heard of

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Speaker 10: this guy. This seems super dubious. They people were really

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Speaker 10: excited because Donald Trump, who used to call bitcoin a scam,

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Speaker 10: he changed his position and he said he's going to

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Speaker 10: fire Gary Gensler, the SEC chairman, who's the enemy of

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Speaker 10: the industry, and he's going to push for new regulations

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Speaker 10: that will help crypto. So everybody liked that. And now

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Speaker 10: they're like, ooh, you're gonna do your own coin.

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Speaker 8: No, this is a bad look.

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Speaker 10: That was the consensus of the dozen or so crypto

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Speaker 10: investors that I talked to.

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Speaker 3: What are they actually be selling those zeke And when

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Speaker 3: we look at Trump's history and business, obviously he's known

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Speaker 3: for real estate, but there have been many failed businesses too,

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Speaker 3: I mean Trump Airlines, Trump Steaks, Trump University, Trum Vodka,

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Speaker 3: some of the casinos. Yes, no question there. We know

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Speaker 3: what he was selling with those though that it was

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Speaker 3: in the name. What is he actually selling with this project, So.

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Speaker 10: The details that he announces may change. But according to

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Speaker 10: the white paper, this is going to be like a

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Speaker 10: platform for borrowing and lending, and it's going to have

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Speaker 10: its own token, also called World Liberty, I believe, and

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Speaker 10: the token has some sort of use within the platform.

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Speaker 10: But the way this works in crypto often is that

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Speaker 10: the startup is basically an excuse to sell the token,

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Speaker 10: and you're hoping that the celebrities associated with the project

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Speaker 10: are famous and that people want to buy the token

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Speaker 10: because of that. And Trump certainly is very famous. And

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Speaker 10: we have a great example. Trump has a stock on

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Speaker 10: Trump Media and Technology that owns a social network called

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Speaker 10: truth Social and the network has almost zero revenue, but

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Speaker 10: the stock is worth something like three billion dollars. So

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Speaker 10: you could see how you might want to replicate that

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Speaker 10: formula in the in the crypto world.

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Speaker 4: So to kind of build on Tim's question, Zeke, I mean,

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Speaker 4: is it right about making money for the Trump family?

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Speaker 4: Is it about you know, it's an election year, right

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Speaker 4: and the days are ticking down to the election outcome

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Speaker 4: come November. Is it a way for Donald Trump to

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Speaker 4: reach out to you a sector of the electorate that

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Speaker 4: might find this interesting and engaging because he's going on

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Speaker 4: podcasts that certainly maybe play to a certain audience.

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Speaker 10: Yes, I mean, if he's trying to do this as

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Speaker 10: a way to reach out to the crypto world. From

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Speaker 10: the feedback I'm getting, this was a mistake and what

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Speaker 10: they said is it seems more like a cash grab.

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Speaker 10: And one crypto investor I spoke to said that it

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Speaker 10: felt like almost Trump was asking for a favor in

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Speaker 10: return after promising lighter regulations, and that's why, you know,

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Speaker 10: experts that I talked to said that it's a conflict

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Speaker 10: of interest for a presidential candidate or a future president

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Speaker 10: to be promoting a private company in an industry where

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Speaker 10: they have a big and how it's regulated.

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Speaker 3: Zeke, You've kind to join us at the perfect time

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Speaker 3: because there's actually some breaking news around Trump Media and Technology.

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Speaker 3: Take our DJT shares are halted for volatility after rising

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Speaker 3: thirteen percent because as Donald Trump was giving remarks in California,

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Speaker 3: he said he will not sell shares of Trump Media

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Speaker 3: and Technology. There was concern that as the lock up

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Speaker 3: period expires next week, he would start unloading shares. He

439
00:22:24,520 --> 00:22:26,679
Speaker 3: is the largest shareholder of the company, but he did

440
00:22:26,760 --> 00:22:28,560
Speaker 3: say at a press conference, Carrol to reporters that he

441
00:22:28,600 --> 00:22:31,360
Speaker 3: will not sell Trump Media Group shares. So it does

442
00:22:31,400 --> 00:22:35,640
Speaker 3: show the power of the president to I mean, look

443
00:22:35,760 --> 00:22:39,919
Speaker 3: or the former president excuse me, republican presidential candidate. What

444
00:22:40,000 --> 00:22:44,159
Speaker 3: he says moves stocks, what he says can sell or

445
00:22:44,200 --> 00:22:46,399
Speaker 3: cause people, you know, to buy yourself.

446
00:22:46,480 --> 00:22:48,240
Speaker 4: Well, absolutely, and we should point out that earlier in

447
00:22:48,280 --> 00:22:50,320
Speaker 4: the week, right coming off of the debate, we saw

448
00:22:50,640 --> 00:22:53,679
Speaker 4: the day after the debate shares of Trump Media and

449
00:22:53,680 --> 00:22:56,679
Speaker 4: Technology down about ten percent, followed by the following day

450
00:22:56,680 --> 00:22:59,200
Speaker 4: another three percent declined. So him coming in and saying

451
00:22:59,359 --> 00:23:02,280
Speaker 4: I'm not selling, you know, providing some support, but nonetheless

452
00:23:02,280 --> 00:23:03,199
Speaker 4: the stock is traded.

453
00:23:03,760 --> 00:23:05,480
Speaker 7: All right, So where do we go from here?

454
00:23:05,560 --> 00:23:08,360
Speaker 4: I mean, were you able to talk to Chase, were

455
00:23:08,359 --> 00:23:11,040
Speaker 4: you able to get anything from the company about what

456
00:23:11,119 --> 00:23:14,680
Speaker 4: they are doing, because it just feels like there's lots

457
00:23:14,680 --> 00:23:19,120
Speaker 4: of questions, maybe not so much transparency.

458
00:23:19,240 --> 00:23:21,800
Speaker 10: Yeah, Chase did not give me an interview, and the

459
00:23:21,840 --> 00:23:26,080
Speaker 10: company said that my story and my questions about it

460
00:23:26,080 --> 00:23:28,560
Speaker 10: seemed to be pointing in a certain direction that they

461
00:23:28,600 --> 00:23:31,159
Speaker 10: disagree with, and that time will show that this is

462
00:23:31,200 --> 00:23:36,080
Speaker 10: truly an innovative platform. But I just look at what

463
00:23:36,520 --> 00:23:40,840
Speaker 10: Chase himself has said in past videos about crypto. I mean,

464
00:23:41,760 --> 00:23:44,960
Speaker 10: I can't even read most of this on the air,

465
00:23:45,080 --> 00:23:47,560
Speaker 10: but he had said that regulators should kick people like

466
00:23:47,640 --> 00:23:49,920
Speaker 10: him out of the industry. He said, you could sell

467
00:23:49,960 --> 00:23:54,960
Speaker 10: anything if the story's right. I mean, it just seems

468
00:23:56,920 --> 00:24:02,320
Speaker 10: it's very surprising to me that Trump will be starting

469
00:24:02,560 --> 00:24:05,439
Speaker 10: a venture with this guy so close through the election.

470
00:24:06,960 --> 00:24:09,439
Speaker 3: It is, it is a little puzzling given the timing.

471
00:24:10,720 --> 00:24:13,480
Speaker 3: But you also write in the story about the former

472
00:24:13,520 --> 00:24:18,960
Speaker 3: president's conversion to crypto believer over the last couple of years.

473
00:24:20,560 --> 00:24:25,119
Speaker 10: Yeah, so he in this was also shocking to me.

474
00:24:25,200 --> 00:24:28,760
Speaker 10: In July, he flew to Nashville and gave a big

475
00:24:28,760 --> 00:24:34,880
Speaker 10: speech at the Bitcoin Conference, and in this speech he

476
00:24:35,119 --> 00:24:38,760
Speaker 10: repeated like the crypto industry's wish list of things, and

477
00:24:38,800 --> 00:24:42,520
Speaker 10: he said fire Gary Gensler. He said he would establish

478
00:24:42,520 --> 00:24:48,080
Speaker 10: a national strategic stockpile of bitcoins. I mean, it was

479
00:24:48,880 --> 00:24:51,760
Speaker 10: a complete turnaround from what he thought about crypto before

480
00:24:52,080 --> 00:24:57,080
Speaker 10: in the crypto industry. In return, or in response, held

481
00:24:57,160 --> 00:25:00,000
Speaker 10: a fundraiser at this conference and raised what they said

482
00:25:00,240 --> 00:25:05,439
Speaker 10: was twenty five million dollars for his campaign. And you know,

483
00:25:05,480 --> 00:25:07,480
Speaker 10: it sort of seemed like that was the that was

484
00:25:07,520 --> 00:25:10,840
Speaker 10: the end of it, and then him and his son

485
00:25:10,960 --> 00:25:15,840
Speaker 10: started promoting this world liberty and they're saying this is

486
00:25:15,880 --> 00:25:18,919
Speaker 10: going to change the world of finance. It's going to

487
00:25:19,000 --> 00:25:22,000
Speaker 10: take on the big banks. And that's why I decided

488
00:25:22,040 --> 00:25:24,320
Speaker 10: to look into the background of the people involved see

489
00:25:24,320 --> 00:25:29,520
Speaker 10: if they had the kind of experience that would let

490
00:25:29,560 --> 00:25:32,960
Speaker 10: them do that, and it seems very doubtful.

491
00:25:34,760 --> 00:25:37,880
Speaker 4: All right, So Monday, just to wrap up thirty seconds here,

492
00:25:38,080 --> 00:25:42,120
Speaker 4: So when the former president Donald Trump presents or makes

493
00:25:42,160 --> 00:25:43,960
Speaker 4: some comments about this, what are you looking out for.

494
00:25:44,000 --> 00:25:46,199
Speaker 4: What's kind of key that you think our audience should

495
00:25:46,240 --> 00:25:46,800
Speaker 4: listen for.

496
00:25:48,320 --> 00:25:51,760
Speaker 10: Well, one thing I'll be watching for is is will

497
00:25:51,760 --> 00:25:56,679
Speaker 10: they actually be selling a new coin. You can start

498
00:25:56,720 --> 00:25:59,879
Speaker 10: a crypto app without it having its own coin, and

499
00:26:00,320 --> 00:26:02,840
Speaker 10: so if it doesn't have its own coin, then it's

500
00:26:03,240 --> 00:26:06,719
Speaker 10: less of a way to make quick money. If they

501
00:26:06,760 --> 00:26:09,159
Speaker 10: are selling a new coin, I want to know the

502
00:26:09,200 --> 00:26:12,120
Speaker 10: details of that coin, how it works, how people are

503
00:26:12,119 --> 00:26:15,800
Speaker 10: going to buy it, because it also this model of

504
00:26:15,880 --> 00:26:19,080
Speaker 10: initial coin offerings of selling new coins, this has gotten

505
00:26:19,119 --> 00:26:21,560
Speaker 10: people into a lot of trouble with the SEC in

506
00:26:21,640 --> 00:26:23,959
Speaker 10: the past. So if he's going to go and do that.

507
00:26:24,080 --> 00:26:27,760
Speaker 10: It could set up a conflict with Gary Gensler in

508
00:26:27,800 --> 00:26:29,919
Speaker 10: the near future over his own venture.

509
00:26:31,160 --> 00:26:32,239
Speaker 7: All right, going to leave it there.

510
00:26:32,320 --> 00:26:35,320
Speaker 4: Unbelievable interesting stuff though great read, great read, as we said,

511
00:26:35,359 --> 00:26:38,760
Speaker 4: among the most read zeg Fox Bloomberg News Financial investigations reporter.

512
00:26:39,040 --> 00:26:41,720
Speaker 4: He's also author of Nember Go Up, Inside Crypto's Wild

513
00:26:41,840 --> 00:26:45,159
Speaker 4: Rise and Staggering Fall. Joining us in New York City.

514
00:26:46,440 --> 00:26:50,320
Speaker 2: You're listening to the Bloomberg Business Week podcast. Listen live

515
00:26:50,400 --> 00:26:53,240
Speaker 2: each weekday. He's starting at two pm Eastern on applecar

516
00:26:53,359 --> 00:26:56,320
Speaker 2: Play and Android Auto with the Bloomberg Business App. You

517
00:26:56,359 --> 00:26:59,560
Speaker 2: can also listen live on Amazon Alexa from our flagship

518
00:26:59,600 --> 00:27:03,080
Speaker 2: New York station Just Say Alexa playing Bloomberg eleven.

519
00:27:05,080 --> 00:27:08,359
Speaker 3: What comes to mind, Carol when you hear evite.

520
00:27:08,520 --> 00:27:11,679
Speaker 7: Kids' birthday parties? Yeah, or just any kind of event.

521
00:27:12,000 --> 00:27:13,760
Speaker 3: I think a lot of people remember it as like

522
00:27:13,840 --> 00:27:18,320
Speaker 3: the og in online invitations, before Facebook events, before paperless posts,

523
00:27:18,320 --> 00:27:21,040
Speaker 3: there was Evite. The company traces its roots back to

524
00:27:21,119 --> 00:27:24,359
Speaker 3: a different era in the Internet. Wow, we're talking nineteen

525
00:27:24,400 --> 00:27:27,120
Speaker 3: ninety eight, Okay, a while ago. Here's some contexts. Mark

526
00:27:27,200 --> 00:27:30,919
Speaker 3: Zuckerberg was barely a teenager then. Okay, the best selling

527
00:27:31,000 --> 00:27:34,440
Speaker 3: single of the year, My Heart Will Go On by

528
00:27:34,480 --> 00:27:35,200
Speaker 3: Selene Dee.

529
00:27:35,080 --> 00:27:35,679
Speaker 7: What with the Titanic?

530
00:27:36,000 --> 00:27:37,920
Speaker 3: I think so, yeah, that would make sense, right.

531
00:27:37,800 --> 00:27:40,640
Speaker 7: All right. It's changed hands though several times, right since then?

532
00:27:40,800 --> 00:27:43,720
Speaker 3: Yeah, I owned it, so did the John Malone founded

533
00:27:43,760 --> 00:27:46,520
Speaker 3: Liberty Media, the company that has a huge stake in

534
00:27:46,640 --> 00:27:49,920
Speaker 3: F one and Live Nation Entertainment. Now it's privately owned,

535
00:27:49,960 --> 00:27:53,320
Speaker 3: and we got with us. The president of Evite, Onto Foe,

536
00:27:53,480 --> 00:27:56,560
Speaker 3: joins us here on Bloomberg Business Week, Onto, how are you?

537
00:27:57,760 --> 00:28:00,320
Speaker 11: I'm good, how are you? I love that intro gave

538
00:28:00,400 --> 00:28:01,879
Speaker 11: me a big smile hearing that.

539
00:28:02,720 --> 00:28:05,679
Speaker 3: Well, I do think that Evite is like kind of

540
00:28:05,720 --> 00:28:09,600
Speaker 3: the way people use kleenex, you know, or kleenex to

541
00:28:09,640 --> 00:28:13,080
Speaker 3: refer to a tissue. It's like the way you would

542
00:28:13,119 --> 00:28:17,119
Speaker 3: describe the concept of receiving an invitation that is not

543
00:28:17,520 --> 00:28:20,119
Speaker 3: in the traditional way. Help us understand, though, how the

544
00:28:20,119 --> 00:28:22,960
Speaker 3: business has changed in the last twenty six years. I'm

545
00:28:22,960 --> 00:28:25,439
Speaker 3: a little confused. I know your folks told us that

546
00:28:25,480 --> 00:28:28,080
Speaker 3: it recently celebrated its first profitable year, But I did

547
00:28:28,119 --> 00:28:30,760
Speaker 3: find an article by the Chamber of Commerce that said,

548
00:28:31,240 --> 00:28:34,239
Speaker 3: back a little after the pandemic in twenty twenty one,

549
00:28:34,280 --> 00:28:36,920
Speaker 3: it had its first profitable year. Help us understand what's

550
00:28:36,920 --> 00:28:37,280
Speaker 3: going on.

551
00:28:37,760 --> 00:28:40,400
Speaker 1: Yeah, so you mentioned earlier that has changed hands a

552
00:28:40,400 --> 00:28:43,360
Speaker 1: couple of times and it's now private. So since we'd

553
00:28:43,400 --> 00:28:46,880
Speaker 1: gone private, we made dramatic changes to Evite and that's

554
00:28:46,920 --> 00:28:47,240
Speaker 1: when I.

555
00:28:47,200 --> 00:28:49,520
Speaker 11: Came on board. And to name a.

556
00:28:49,440 --> 00:28:52,440
Speaker 1: Few of the dramatic changes we did, the first of

557
00:28:52,480 --> 00:28:55,840
Speaker 1: which was we have a now all female product leg team,

558
00:28:56,400 --> 00:28:59,240
Speaker 1: which gives us a competitive edge. As Carol mentioned, you

559
00:28:59,280 --> 00:29:01,400
Speaker 1: know most of our you there's our mom throwing kids'

560
00:29:01,400 --> 00:29:02,280
Speaker 1: birthday parties.

561
00:29:02,760 --> 00:29:03,200
Speaker 12: So with a.

562
00:29:03,240 --> 00:29:05,480
Speaker 1: Female product led team, we're on the ground and we

563
00:29:05,520 --> 00:29:06,280
Speaker 1: know what's happening.

564
00:29:07,000 --> 00:29:08,720
Speaker 11: We also rebuilt and.

565
00:29:08,600 --> 00:29:11,960
Speaker 1: Modernize our core invitation product a couple of years ago,

566
00:29:12,520 --> 00:29:16,120
Speaker 1: and those two things combine is really what drove all

567
00:29:16,200 --> 00:29:19,120
Speaker 1: the changes that are happening at evite. Our revenue growth

568
00:29:19,160 --> 00:29:22,880
Speaker 1: on top of that profitability a couple of years ago

569
00:29:23,000 --> 00:29:26,120
Speaker 1: kind of up profitability. But at this point you're talking

570
00:29:26,160 --> 00:29:30,400
Speaker 1: about double digit markets in our profit line now. So

571
00:29:30,480 --> 00:29:33,160
Speaker 1: that's what's really changed with ebit and we're so excited

572
00:29:33,200 --> 00:29:33,960
Speaker 1: about what's happening.

573
00:29:34,040 --> 00:29:34,720
Speaker 7: How did you do it?

574
00:29:34,760 --> 00:29:37,280
Speaker 4: Because you guys have moved away from being an ad

575
00:29:37,360 --> 00:29:40,120
Speaker 4: driven model, which is so much a part of the

576
00:29:40,160 --> 00:29:44,440
Speaker 4: online universe. So what is the profitability model and what

577
00:29:44,520 --> 00:29:45,360
Speaker 4: drives revenues?

578
00:29:46,000 --> 00:29:49,520
Speaker 1: We're now thinking about. The number one thesis we have

579
00:29:49,720 --> 00:29:52,880
Speaker 1: is how can we be helpful to host? How can

580
00:29:52,960 --> 00:29:55,600
Speaker 1: we just help the users throw their party and throw

581
00:29:55,640 --> 00:29:59,000
Speaker 1: it well? And so with that thesis, we are now

582
00:29:59,120 --> 00:30:03,719
Speaker 1: thinking about our from a user experience standpoint. In the past,

583
00:30:03,800 --> 00:30:08,000
Speaker 1: you know, the past business model, we're thinking about AD revenue,

584
00:30:08,520 --> 00:30:10,480
Speaker 1: and when you think about AD revenue, it's a little

585
00:30:10,480 --> 00:30:14,600
Speaker 1: bit contradictory to think about the user experience. And because

586
00:30:14,800 --> 00:30:18,840
Speaker 1: you know, we're rethinking how our business model works, we

587
00:30:18,920 --> 00:30:21,560
Speaker 1: are not prioritizing the host, and because we do that,

588
00:30:21,840 --> 00:30:24,640
Speaker 1: the host is loving it. So now our number one

589
00:30:24,720 --> 00:30:28,960
Speaker 1: driver of revenue is really from our premium experience. And

590
00:30:29,160 --> 00:30:33,080
Speaker 1: the more we prioritize our hosts, the more we build

591
00:30:33,160 --> 00:30:36,560
Speaker 1: features that she wants, the more profitable that we've become.

592
00:30:36,720 --> 00:30:38,360
Speaker 11: And it's really working out for us.

593
00:30:38,480 --> 00:30:41,120
Speaker 4: Tell me what a premium experience is when it comes

594
00:30:41,160 --> 00:30:42,480
Speaker 4: to EVI, it's help me out here.

595
00:30:43,000 --> 00:30:46,960
Speaker 13: Yeah, a premium experience is about if you want to

596
00:30:47,080 --> 00:30:50,480
Speaker 13: throw a kids thematic birthday party, we are going to

597
00:30:50,520 --> 00:30:53,400
Speaker 13: help you set the vibe for that thematic birthday party,

598
00:30:53,800 --> 00:30:55,480
Speaker 13: say the Princess birthday party.

599
00:30:55,560 --> 00:30:56,480
Speaker 11: We're going to give you.

600
00:30:56,520 --> 00:30:59,960
Speaker 1: Top of the line trending invitations. It'll come with match

601
00:31:00,240 --> 00:31:03,440
Speaker 1: background stamps and stickers to wow you're a guest about what.

602
00:31:03,320 --> 00:31:04,520
Speaker 11: The theme is going to become.

603
00:31:04,760 --> 00:31:05,080
Speaker 8: Okay.

604
00:31:05,720 --> 00:31:08,160
Speaker 1: The second part of the Premium Experience is we're going

605
00:31:08,200 --> 00:31:11,080
Speaker 1: to give you control and help you get more RSVPs.

606
00:31:11,600 --> 00:31:13,959
Speaker 1: We all know when you invite guests to your party,

607
00:31:14,160 --> 00:31:16,000
Speaker 1: a lot of them will look at your invitation but

608
00:31:16,120 --> 00:31:20,080
Speaker 1: never respond. What we do with the Premium Experience is

609
00:31:20,200 --> 00:31:24,160
Speaker 1: we've found out the optimal time to actually message your guests.

610
00:31:24,480 --> 00:31:26,280
Speaker 11: We keep on nagging them for you.

611
00:31:26,160 --> 00:31:29,800
Speaker 1: So you don't have to, and we have proven that

612
00:31:29,880 --> 00:31:33,000
Speaker 1: with the Premium Experience, you actually get more guests because

613
00:31:33,320 --> 00:31:37,280
Speaker 1: you're paying for this optimization and this customization of your

614
00:31:37,400 --> 00:31:37,960
Speaker 1: entire event.

615
00:31:39,080 --> 00:31:40,800
Speaker 3: To you, Carol, do you ever throw parties and hope

616
00:31:40,840 --> 00:31:44,680
Speaker 3: nobody comes?

617
00:31:44,720 --> 00:31:48,800
Speaker 7: Not for kids, No, not for kids. But I just

618
00:31:48,800 --> 00:31:52,400
Speaker 7: think I have at it.

619
00:31:52,640 --> 00:31:54,760
Speaker 3: I have a friend who threw I probably shouldn't say this,

620
00:31:54,840 --> 00:31:56,720
Speaker 3: but I have a friend who threw a big summer

621
00:31:56,840 --> 00:31:59,160
Speaker 3: party one year for his birthday, and it was like

622
00:31:59,200 --> 00:32:02,240
Speaker 3: the best thing ever and it was so fun, and

623
00:32:02,240 --> 00:32:03,800
Speaker 3: he's like, I'm gonna do this every year. He did

624
00:32:03,840 --> 00:32:08,239
Speaker 3: it again last summer and it barely started raining. And

625
00:32:08,280 --> 00:32:10,240
Speaker 3: what he did was he sent out a note to

626
00:32:10,280 --> 00:32:14,640
Speaker 3: everybody and said party's canceled to everybody. Okay, but then

627
00:32:14,720 --> 00:32:17,000
Speaker 3: he said day on the day off because it started raining.

628
00:32:17,160 --> 00:32:19,080
Speaker 3: But then he sent a note to like ten people

629
00:32:19,120 --> 00:32:21,640
Speaker 3: and was like, it's not actually canceled. I just didn't

630
00:32:21,640 --> 00:32:23,440
Speaker 3: want to have a huge party. I just want you

631
00:32:23,520 --> 00:32:24,320
Speaker 3: guys to show up.

632
00:32:25,040 --> 00:32:26,800
Speaker 11: Oh, funny, awesome.

633
00:32:28,040 --> 00:32:30,400
Speaker 7: He was a great party. Did you did you get

634
00:32:30,400 --> 00:32:31,480
Speaker 7: the invitation to go back?

635
00:32:31,520 --> 00:32:31,760
Speaker 2: I did.

636
00:32:31,760 --> 00:32:33,640
Speaker 3: I got the invitation to come back. There was way

637
00:32:33,680 --> 00:32:36,080
Speaker 3: too much food and booze because it was like supposed

638
00:32:36,080 --> 00:32:38,440
Speaker 3: to be a party for a ton of people. Anyway,

639
00:32:38,960 --> 00:32:40,840
Speaker 3: just in his side, I'm sorry, I'm sorry.

640
00:32:41,080 --> 00:32:42,600
Speaker 7: Yeah, unbelievable.

641
00:32:42,920 --> 00:32:46,000
Speaker 4: So remind us, So this change in your model remind

642
00:32:46,080 --> 00:32:47,560
Speaker 4: us of get of the metrics. And you know we're

643
00:32:47,560 --> 00:32:49,160
Speaker 4: Bloomberg and we say this all the time, but we

644
00:32:49,200 --> 00:32:52,680
Speaker 4: do care. How has it moved the top line growth?

645
00:32:54,280 --> 00:32:56,280
Speaker 11: It has moved our top line group dramatically.

646
00:32:56,400 --> 00:33:00,000
Speaker 1: We are now more than fifty percent higher and revenue

647
00:33:00,640 --> 00:33:02,880
Speaker 1: I could say we are the highest.

648
00:33:03,080 --> 00:33:05,120
Speaker 4: We have from a year ago from a year ago.

649
00:33:05,160 --> 00:33:08,960
Speaker 4: What's that fifty percent jump from a year ago.

650
00:33:08,800 --> 00:33:11,120
Speaker 1: From two years ago, We're over one hundred percent. We're

651
00:33:11,160 --> 00:33:14,240
Speaker 1: now at the highest level that we've ever been in

652
00:33:14,280 --> 00:33:17,320
Speaker 1: our twenty six year history. And we are now double

653
00:33:17,360 --> 00:33:21,280
Speaker 1: digit and profit profitability and we have never been that in.

654
00:33:21,200 --> 00:33:22,479
Speaker 11: Our twenty six year history.

655
00:33:23,120 --> 00:33:25,680
Speaker 1: And what's even more exciting I have to tell you, guys,

656
00:33:25,760 --> 00:33:28,600
Speaker 1: is I think that we're just in the tip of

657
00:33:28,640 --> 00:33:32,600
Speaker 1: the iceberg of where Evite can become. You guys have

658
00:33:32,600 --> 00:33:35,280
Speaker 1: already mentioned that when you think of digital invitations, you

659
00:33:35,320 --> 00:33:36,160
Speaker 1: think about Evite.

660
00:33:36,280 --> 00:33:40,280
Speaker 11: We are known for that space. And what we're trying

661
00:33:40,320 --> 00:33:42,360
Speaker 11: to do now is think beyond.

662
00:33:42,000 --> 00:33:45,760
Speaker 1: Invitations of how we could actually be an ecosystem for

663
00:33:46,000 --> 00:33:47,480
Speaker 1: all the planning needs.

664
00:33:47,920 --> 00:33:49,360
Speaker 11: Evite is so big that.

665
00:33:49,280 --> 00:33:51,320
Speaker 4: We have, you know, like the Knot, Like do you

666
00:33:51,320 --> 00:33:52,920
Speaker 4: want to be like the Knot? In terms of planning

667
00:33:53,000 --> 00:33:54,400
Speaker 4: events for people?

668
00:33:55,400 --> 00:33:56,920
Speaker 11: We want to be bigger than the not.

669
00:33:57,200 --> 00:34:02,160
Speaker 1: We can be where for any time you throw an event,

670
00:34:02,680 --> 00:34:05,080
Speaker 1: we want to help you use all the tools that

671
00:34:05,120 --> 00:34:09,359
Speaker 1: you normally would use elsewhere into our own ecosystem, from

672
00:34:09,440 --> 00:34:13,319
Speaker 1: pre planning tools like if you want to question a

673
00:34:13,400 --> 00:34:16,440
Speaker 1: group of guests that you want to invite, what's the

674
00:34:16,480 --> 00:34:18,800
Speaker 1: best time to meet. We're going to build a tool

675
00:34:18,800 --> 00:34:20,799
Speaker 1: to help you figure out how to do that. You

676
00:34:20,800 --> 00:34:23,720
Speaker 1: could do your invitation with us. And what about during

677
00:34:23,760 --> 00:34:25,920
Speaker 1: the party too, you want to message your guests, you

678
00:34:25,960 --> 00:34:30,520
Speaker 1: want to post photos. We recently built out this ecosystem

679
00:34:30,560 --> 00:34:33,720
Speaker 1: with our first new product that's not invitation exactly related.

680
00:34:34,120 --> 00:34:37,400
Speaker 11: It's called Evite sign up sheets. Sign up sheets are

681
00:34:37,440 --> 00:34:39,560
Speaker 11: for the events when you really need volunteers.

682
00:34:40,000 --> 00:34:42,319
Speaker 1: It's the fastest on the market right now, and it's

683
00:34:42,360 --> 00:34:43,360
Speaker 1: completely free.

684
00:34:43,480 --> 00:34:46,640
Speaker 11: Okay, It's great for events like.

685
00:34:46,680 --> 00:34:50,080
Speaker 1: If you have kids in elementary school, you need volunteers

686
00:34:50,080 --> 00:34:52,120
Speaker 1: to sign up for classroom activity, right this is a

687
00:34:52,160 --> 00:34:55,920
Speaker 1: great part. It's great for sports when you need volunteers

688
00:34:56,000 --> 00:34:58,839
Speaker 1: to bring snacks for the kids. And you know what's

689
00:34:58,840 --> 00:35:01,279
Speaker 1: the most exciting part about this product that our team

690
00:35:01,360 --> 00:35:05,960
Speaker 1: is super jazzed about. It's great for potlucks. Everybody throws them,

691
00:35:06,000 --> 00:35:08,360
Speaker 1: we all love them. You need volunteers to bring dishes.

692
00:35:08,680 --> 00:35:11,880
Speaker 1: But what we're noticing now is with the gen Z

693
00:35:12,080 --> 00:35:16,239
Speaker 1: generation before now rebrand. We want to rebrand potlucks for

694
00:35:16,280 --> 00:35:19,840
Speaker 1: this gen Z TikTok generation because they're making it bematic.

695
00:35:20,480 --> 00:35:23,560
Speaker 4: All right, it's not just no, I have to ask

696
00:35:23,560 --> 00:35:25,120
Speaker 4: you before we get because we're running out of time.

697
00:35:25,160 --> 00:35:27,360
Speaker 4: Got thirty seconds. In a world where we talk so

698
00:35:27,440 --> 00:35:30,280
Speaker 4: much about AI and the importance of data, it sounds

699
00:35:30,280 --> 00:35:32,920
Speaker 4: like you guys are getting a lot of information and

700
00:35:33,000 --> 00:35:36,320
Speaker 4: very segmented about people who are interested in very specific things.

701
00:35:36,680 --> 00:35:38,960
Speaker 4: Is the data play part of the revenue play? And

702
00:35:39,000 --> 00:35:41,400
Speaker 4: forgive me because we just have about twenty five seconds.

703
00:35:41,800 --> 00:35:44,080
Speaker 1: The data play is all about how do we use

704
00:35:44,080 --> 00:35:46,719
Speaker 1: that data to help our host. So we have a

705
00:35:46,760 --> 00:35:50,000
Speaker 1: lot of data about who'd you invite it in the past,

706
00:35:50,960 --> 00:35:56,239
Speaker 1: whose viewture invitation? And who did it RSVP? Yet who

707
00:35:56,280 --> 00:35:58,279
Speaker 1: else have you party with? That's how we think about

708
00:35:58,280 --> 00:36:00,879
Speaker 1: our data is not to sell the information, but how

709
00:36:00,920 --> 00:36:03,640
Speaker 1: do we become even more helpful to throw your naxt event?

710
00:36:04,000 --> 00:36:04,359
Speaker 7: All right?

711
00:36:04,480 --> 00:36:08,840
Speaker 4: Fun steps, All right, well, look forward to checking you

712
00:36:08,920 --> 00:36:12,120
Speaker 4: with you again and the Poe she's president of EVI

713
00:36:12,400 --> 00:36:15,360
Speaker 4: joining us from I Believe Manhattan Beach, California.

714
00:36:15,920 --> 00:36:16,800
Speaker 3: Sounds great.

715
00:36:22,840 --> 00:36:26,720
Speaker 2: You're listening to the Bloomberg Business Week podcast. Listen live

716
00:36:26,800 --> 00:36:29,640
Speaker 2: each weekday starting at two pm Eastern on Apple car

717
00:36:29,760 --> 00:36:32,719
Speaker 2: Play and Android Auto with the Bloomberg Business app. You

718
00:36:32,719 --> 00:36:36,000
Speaker 2: can also listen live on Amazon Alexa from our flagship

719
00:36:36,040 --> 00:36:40,120
Speaker 2: New York station. Just say Alexa play Bloomberg eleven thirty.

720
00:36:41,960 --> 00:36:46,040
Speaker 8: Brother Marco Journal.

721
00:36:47,080 --> 00:36:48,040
Speaker 7: How about you let me drive?

722
00:36:48,320 --> 00:36:55,759
Speaker 10: Oh no, no, no no, alright please, I'll Travelsten.

723
00:36:54,840 --> 00:36:55,600
Speaker 4: I want to drive.

724
00:36:58,080 --> 00:36:59,680
Speaker 11: Good question, good time?

725
00:37:02,560 --> 00:37:05,480
Speaker 2: This is the drive to the globe dot com to me?

726
00:37:05,520 --> 00:37:08,960
Speaker 2: I think well by on Bloomberg Radio.

727
00:37:09,560 --> 00:37:12,320
Speaker 4: All right, everybody, eighteen minutes left in today's trading session.

728
00:37:12,320 --> 00:37:13,320
Speaker 7: We are getting ready.

729
00:37:13,080 --> 00:37:16,840
Speaker 3: To us speedle Jae.

730
00:37:17,760 --> 00:37:19,920
Speaker 7: We are talking to one of the screenwriters later on,

731
00:37:19,960 --> 00:37:22,239
Speaker 7: so we're kind of u hyped up on that.

732
00:37:22,440 --> 00:37:25,239
Speaker 4: Having said that, investors, you know, quite a bounce back

733
00:37:25,360 --> 00:37:28,000
Speaker 4: after last week's selling. So let's see what Carol Schleife

734
00:37:28,040 --> 00:37:28,520
Speaker 4: has to say.

735
00:37:28,560 --> 00:37:29,399
Speaker 7: She is back with us.

736
00:37:29,719 --> 00:37:33,319
Speaker 4: She's chief investment officer at Female Family Office, joining us

737
00:37:33,719 --> 00:37:34,720
Speaker 4: from Minneapolis.

738
00:37:35,080 --> 00:37:36,439
Speaker 7: Good to have you back with us.

739
00:37:36,480 --> 00:37:39,920
Speaker 4: So, as we kidded with our Gina Martin Adams Carol earlier,

740
00:37:40,080 --> 00:37:42,160
Speaker 4: you know, the market take it away last week and

741
00:37:42,200 --> 00:37:45,680
Speaker 4: give it back this week. Having said that, we've got

742
00:37:45,680 --> 00:37:47,799
Speaker 4: a big FED meeting, so I don't know, is there

743
00:37:47,840 --> 00:37:51,600
Speaker 4: a clear strategy when it comes to the equity trade

744
00:37:51,600 --> 00:37:52,560
Speaker 4: for you right now.

745
00:37:53,600 --> 00:37:57,080
Speaker 14: I think the clear strategy is this is similar one

746
00:37:57,160 --> 00:37:59,440
Speaker 14: that's been involved for the last couple of years, and

747
00:37:59,480 --> 00:38:02,760
Speaker 14: that's built durable portfolios that can dodge and we even

748
00:38:02,800 --> 00:38:06,160
Speaker 14: respond to any sort of markets that we get, because

749
00:38:06,440 --> 00:38:09,520
Speaker 14: while we had last week being rocky, in this week

750
00:38:09,560 --> 00:38:11,839
Speaker 14: being good, back in the beginning of August, we had

751
00:38:11,840 --> 00:38:16,359
Speaker 14: Monday being bad and Tuesday being better. So building those

752
00:38:16,400 --> 00:38:19,720
Speaker 14: portfolios though, that give us the opportunity to participate both

753
00:38:20,239 --> 00:38:23,840
Speaker 14: in fixed income markets especially you've gotten paid nicely to

754
00:38:23,920 --> 00:38:27,680
Speaker 14: be in those shorter term yields, but also to lean

755
00:38:27,719 --> 00:38:30,319
Speaker 14: foot forward on growth because we do think that from

756
00:38:30,360 --> 00:38:33,319
Speaker 14: an intermediate, longer term standpoint, a lot of investors are

757
00:38:33,480 --> 00:38:37,319
Speaker 14: underestimating how beneficial for the economy rate cuts will be.

758
00:38:37,880 --> 00:38:39,359
Speaker 3: Carol, I'm going to ask you the same question I've

759
00:38:39,400 --> 00:38:42,920
Speaker 3: been asking folks all day, because we're seeing what could

760
00:38:43,000 --> 00:38:44,600
Speaker 3: end up being, depending on what how it's in the

761
00:38:44,680 --> 00:38:49,320
Speaker 3: next fifteen minutes or so, a really good week for stocks,

762
00:38:49,920 --> 00:38:52,080
Speaker 3: just a huge departure from what we saw last week

763
00:38:52,120 --> 00:38:53,560
Speaker 3: for the S and P five hundred, the worst week

764
00:38:53,560 --> 00:38:56,399
Speaker 3: going back to that regional banking crisis of twenty twenty three.

765
00:38:56,800 --> 00:38:58,240
Speaker 3: What changed, What shifted?

766
00:39:00,520 --> 00:39:04,719
Speaker 14: I'm not sure anything macro shifted as much as you know.

767
00:39:04,760 --> 00:39:07,480
Speaker 14: There really is just an adjustment and getting used to

768
00:39:07,600 --> 00:39:11,120
Speaker 14: people are focusing more on the FED meeting next week

769
00:39:11,280 --> 00:39:14,840
Speaker 14: or past earning season. You had, you know, depending on

770
00:39:14,880 --> 00:39:18,800
Speaker 14: the camp here, and you had nice meetings from Apple

771
00:39:18,880 --> 00:39:21,680
Speaker 14: on Monday. You had a very eventful week actually, all

772
00:39:21,719 --> 00:39:24,480
Speaker 14: things considered, and I think most importantly one of the

773
00:39:24,520 --> 00:39:27,239
Speaker 14: things that is shifting is you're seeing a broadening in

774
00:39:27,280 --> 00:39:30,440
Speaker 14: the markets and that's really helped. You're seeing it because

775
00:39:30,480 --> 00:39:33,160
Speaker 14: it's not just the dower of the S and P leading,

776
00:39:33,200 --> 00:39:36,799
Speaker 14: it's also and those in a concentration of the S

777
00:39:36,840 --> 00:39:39,080
Speaker 14: and P. It's broadening out to the other four hundred

778
00:39:39,080 --> 00:39:43,040
Speaker 14: and ninety three names, and especially in small cap as well.

779
00:39:43,120 --> 00:39:45,560
Speaker 4: Yeah, Rustles up about four percent this week, right, So

780
00:39:45,640 --> 00:39:50,080
Speaker 4: you does the FED potentially change all of this next week?

781
00:39:52,480 --> 00:39:55,440
Speaker 11: I doubt the FED will change that.

782
00:39:55,520 --> 00:39:58,719
Speaker 14: You know, the early betting what everyone's been looking at

783
00:39:58,800 --> 00:40:01,240
Speaker 14: now is it twenty five basis points? Is at fifty

784
00:40:01,280 --> 00:40:04,239
Speaker 14: basis points? We really don't think in the context to

785
00:40:04,320 --> 00:40:06,919
Speaker 14: the next six to twelve months, it matters. You've got

786
00:40:06,920 --> 00:40:09,080
Speaker 14: a lot of things markets still have to deal with.

787
00:40:09,200 --> 00:40:11,359
Speaker 14: This week's been good, but we've also got a lot

788
00:40:11,360 --> 00:40:15,160
Speaker 14: of volatility potential because it's this spooky season after all,

789
00:40:15,239 --> 00:40:17,920
Speaker 14: not this pumpkin spice season, but spooky season.

790
00:40:18,440 --> 00:40:19,400
Speaker 11: Where you've got.

791
00:40:19,600 --> 00:40:22,839
Speaker 7: It is just tcophobia. Friday the thirteenth today.

792
00:40:23,840 --> 00:40:28,560
Speaker 14: Yeah, exactly, but that's always been my lucky day. But

793
00:40:28,920 --> 00:40:30,759
Speaker 14: the interesting thing is, though, is that you do have

794
00:40:30,800 --> 00:40:33,200
Speaker 14: the potential for a lot of volatility. But we think

795
00:40:33,239 --> 00:40:36,040
Speaker 14: once the Fed has the opportunity next week, and we

796
00:40:36,080 --> 00:40:38,520
Speaker 14: would imagine they're going to be super careful in how

797
00:40:38,560 --> 00:40:42,120
Speaker 14: they communicate that this is the start of a process.

798
00:40:42,200 --> 00:40:44,560
Speaker 14: And that's what businesses are waiting for. If you go

799
00:40:44,680 --> 00:40:47,919
Speaker 14: back and think through the messages that the individual FED

800
00:40:47,960 --> 00:40:50,880
Speaker 14: governors are saying and that they've come out with in

801
00:40:50,920 --> 00:40:53,840
Speaker 14: the Beige book, those companies are sitting on the sidelines

802
00:40:53,960 --> 00:40:56,440
Speaker 14: waiting to get started with some of that M and

803
00:40:56,480 --> 00:41:01,120
Speaker 14: A and build outs and infrastructure build They've been waiting

804
00:41:01,160 --> 00:41:03,759
Speaker 14: for two years because last year they were afraid that

805
00:41:03,800 --> 00:41:06,600
Speaker 14: we were going to have recession, right and when that

806
00:41:06,640 --> 00:41:09,960
Speaker 14: didn't come, now they've been waiting for why do I

807
00:41:09,960 --> 00:41:11,920
Speaker 14: I don't want to finance this week? If the fed's

808
00:41:11,960 --> 00:41:14,279
Speaker 14: going to cut next week, but once a FED get

809
00:41:14,400 --> 00:41:17,440
Speaker 14: some clarity on that, once we get through the elections,

810
00:41:17,480 --> 00:41:21,239
Speaker 14: because theoretically two months from today, most of this stuff,

811
00:41:21,880 --> 00:41:24,600
Speaker 14: most of what we don't know, should have some clarity

812
00:41:24,680 --> 00:41:28,080
Speaker 14: in some direction, and the ve people to get on right.

813
00:41:28,160 --> 00:41:30,520
Speaker 4: We know the direction now, maybe the question is a

814
00:41:30,560 --> 00:41:32,480
Speaker 4: little bit of how much in terms of the FED

815
00:41:32,520 --> 00:41:35,080
Speaker 4: cut speed this week. Hey, by the way, Taylor Swift,

816
00:41:35,120 --> 00:41:37,040
Speaker 4: I think thirteen is her lucky number as it is.

817
00:41:37,320 --> 00:41:38,799
Speaker 7: I believe it is. I think she does.

818
00:41:38,920 --> 00:41:40,440
Speaker 14: That's right, because it doesn't that have to do with

819
00:41:40,480 --> 00:41:41,920
Speaker 14: Travis Kelsey's jersey too.

820
00:41:42,080 --> 00:41:45,839
Speaker 4: No, well, yeah, but I think thirteen has been her

821
00:41:45,880 --> 00:41:48,480
Speaker 4: long number. It's been her favorite number for a long time.

822
00:41:48,560 --> 00:41:50,880
Speaker 3: Here, I thought we were talking maybe picked him in

823
00:41:50,880 --> 00:41:52,000
Speaker 3: the conference Jersey.

824
00:41:52,080 --> 00:41:55,560
Speaker 11: But Friday afternoon, Friday afternoon.

825
00:41:55,160 --> 00:41:57,520
Speaker 3: This is great love. I had no idea about this.

826
00:41:58,400 --> 00:42:02,080
Speaker 4: She oh, she like really leases like she's very superstitious

827
00:42:02,080 --> 00:42:04,160
Speaker 4: about a lot of stuff about when she releases things.

828
00:42:03,880 --> 00:42:07,760
Speaker 7: You know, I my daughter isn't so into tailor anymore,

829
00:42:07,960 --> 00:42:09,600
Speaker 7: but she used to be. And so I got a

830
00:42:09,600 --> 00:42:10,160
Speaker 7: lot of stuff.

831
00:42:10,400 --> 00:42:13,239
Speaker 4: Hey, some different events. Apple's been out with a lot

832
00:42:13,239 --> 00:42:16,799
Speaker 4: of news and video this week. An earlier guest talking

833
00:42:16,800 --> 00:42:19,719
Speaker 4: with our Abigail Doolittle talking about and video, like how

834
00:42:20,000 --> 00:42:22,960
Speaker 4: maybe that really helped shift some of the sentiment and

835
00:42:23,080 --> 00:42:26,760
Speaker 4: videos CEO Jensen Wong speaking at that Goldman Sachs conference

836
00:42:26,800 --> 00:42:28,000
Speaker 4: this week and we saw and video.

837
00:42:28,200 --> 00:42:29,000
Speaker 7: It's really rallied.

838
00:42:29,000 --> 00:42:31,320
Speaker 4: I think something like fifteen percent this week. But talking

839
00:42:31,360 --> 00:42:34,399
Speaker 4: about customers, you know, it's tough dealing with them because

840
00:42:34,400 --> 00:42:36,840
Speaker 4: there's so much demand. They want more of their products

841
00:42:36,880 --> 00:42:38,719
Speaker 4: and more of their chips.

842
00:42:39,040 --> 00:42:41,160
Speaker 7: I don't know, is there something in the tech narrative

843
00:42:41,200 --> 00:42:42,200
Speaker 7: that's interesting for you.

844
00:42:43,280 --> 00:42:45,640
Speaker 14: I think the interesting thing in the tech narrative is,

845
00:42:47,000 --> 00:42:50,520
Speaker 14: unlike the first when the Internet first launched in ninety

846
00:42:50,560 --> 00:42:52,279
Speaker 14: five to two thousand, where you had a lot of

847
00:42:52,320 --> 00:42:54,680
Speaker 14: companies that were creating a lot of headlines that didn't

848
00:42:54,719 --> 00:42:57,239
Speaker 14: have revenues and earnings, a lot of the companies that

849
00:42:57,280 --> 00:43:00,000
Speaker 14: are dealing with this now not only have revenues and earnings.

850
00:43:00,120 --> 00:43:02,759
Speaker 14: Spending is big. It needs to be big. We you know,

851
00:43:02,800 --> 00:43:05,080
Speaker 14: there's been a lot of articles, especially in the last

852
00:43:05,120 --> 00:43:07,480
Speaker 14: week or two, talking about how we have to rethink

853
00:43:07,719 --> 00:43:11,040
Speaker 14: the whole tech pipeline in terms of where the processing

854
00:43:11,120 --> 00:43:11,920
Speaker 14: gets done.

855
00:43:11,800 --> 00:43:16,839
Speaker 12: How we create the juice for that processing, and it's

856
00:43:17,000 --> 00:43:19,959
Speaker 12: one of the reasons why, you know, the introduction on Monday.

857
00:43:20,000 --> 00:43:22,239
Speaker 12: A lot of the AI processing has to happen on

858
00:43:22,320 --> 00:43:24,839
Speaker 12: the computer on the phone, you know.

859
00:43:24,880 --> 00:43:27,440
Speaker 14: So there's a lot, a lot of reasons to be optimistic,

860
00:43:27,520 --> 00:43:29,960
Speaker 14: not just about the buildout, but also about the use

861
00:43:30,000 --> 00:43:33,520
Speaker 14: cases because many of these companies have been tabbling in

862
00:43:33,560 --> 00:43:37,320
Speaker 14: it behind the scenes for over a decade and building

863
00:43:37,320 --> 00:43:40,080
Speaker 14: those use cases out, and you're starting to see leverage

864
00:43:40,640 --> 00:43:43,840
Speaker 14: in some of the most basic mundane tasks where AI

865
00:43:43,960 --> 00:43:46,920
Speaker 14: go walks along as an assistant, doesn't necessarily take our

866
00:43:47,000 --> 00:43:49,680
Speaker 14: jobs away, but makes it so that we can go

867
00:43:49,719 --> 00:43:52,480
Speaker 14: to the next level and thought process in these day apps.

868
00:43:53,160 --> 00:43:56,960
Speaker 3: Carrol's I wanted to tell you both that our amazing

869
00:43:56,960 --> 00:43:59,080
Speaker 3: team has been doing some research about the number thirteen

870
00:43:59,120 --> 00:44:00,680
Speaker 3: and Taylor Swift, and I got some notes from our

871
00:44:00,719 --> 00:44:06,239
Speaker 3: own Elizabeth Cedron, who said that who sent me a

872
00:44:06,280 --> 00:44:11,040
Speaker 3: story that has Taylor Swift telling MTV years ago. She

873
00:44:11,160 --> 00:44:13,920
Speaker 3: was born on the thirteenth. She turned thirteenth on Friday

874
00:44:13,920 --> 00:44:17,160
Speaker 3: the thirteenth. Her first album went golden thirteen weeks. Her

875
00:44:17,160 --> 00:44:20,239
Speaker 3: first number one song had a thirteen second intro. Every

876
00:44:20,320 --> 00:44:22,480
Speaker 3: time I've won an award, I've been seated in either

877
00:44:22,520 --> 00:44:24,920
Speaker 3: the thirteenth seat, the thirteenth row, the thirteenth section, or

878
00:44:25,000 --> 00:44:27,080
Speaker 3: row M, which is the thirteenth letter.

879
00:44:27,480 --> 00:44:30,040
Speaker 4: You guys, I'm a little upset with you swifties. Know

880
00:44:30,160 --> 00:44:31,960
Speaker 4: this eighty nine is very importantly.

881
00:44:32,000 --> 00:44:32,719
Speaker 7: I didn't know this.

882
00:44:32,800 --> 00:44:33,360
Speaker 2: I'm sorry.

883
00:44:33,480 --> 00:44:36,360
Speaker 4: She is very you know, she's got numbers are a

884
00:44:36,400 --> 00:44:39,320
Speaker 4: big thing in her world, like when she releases things

885
00:44:39,360 --> 00:44:40,360
Speaker 4: and so on and so forth.

886
00:44:40,680 --> 00:44:42,919
Speaker 14: The morning. Does that mean we're teeing up a great

887
00:44:42,960 --> 00:44:46,200
Speaker 14: rest of the year here September Friday, the thirteenth.

888
00:44:46,239 --> 00:44:48,960
Speaker 7: I don't know, you tell me, but.

889
00:44:51,360 --> 00:44:52,080
Speaker 11: We do hope.

890
00:44:52,120 --> 00:44:55,160
Speaker 7: So all right, well, certainly the bulls do.

891
00:44:55,360 --> 00:44:57,440
Speaker 4: The bears might think a little bit differently, but you know,

892
00:44:57,480 --> 00:44:58,560
Speaker 4: we'll leave them for now.

893
00:44:59,320 --> 00:45:00,000
Speaker 7: Have a great weekend.

894
00:45:00,080 --> 00:45:03,080
Speaker 4: Caroshlife Chief Investment Officer would be my family office, joining

895
00:45:03,120 --> 00:45:04,200
Speaker 4: us from Minneapolis.

896
00:45:04,239 --> 00:45:08,839
Speaker 2: This is the Bloomberg Business Week podcast, available on Apple, Spotify,

897
00:45:09,000 --> 00:45:12,200
Speaker 2: and anywhere else you can get your podcasts. Listen live

898
00:45:12,280 --> 00:45:15,680
Speaker 2: weekday afternoons from two to five pm Eastern on Bloomberg

899
00:45:15,719 --> 00:45:19,080
Speaker 2: dot Com, the iHeartRadio app, Tune In, and the Bloomberg

900
00:45:19,120 --> 00:45:22,000
Speaker 2: Business app. You can also watch US live every weekday

901
00:45:22,000 --> 00:45:24,920
Speaker 2: on YouTube and always on the Bloomberg Terminal