Speaker 1: Ye, Welcome to the Bloomberg Surveillance Podcast. I'm Tom keene Jaily.
Speaker 1: We bring you insight from the best in economics, finance, investment,
Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,
Speaker 1: Bloomberg dot Com, and of course on the Bloomberg. Greg
Speaker 1: Bottle joining us b MP Perry bad thrill that he
Speaker 1: could be with us today and one of the reasons
Speaker 1: is you have a house cautious call in the American economy.
Speaker 1: Let's start with that. Why are you cautious for others
Speaker 1: see above two percent growth? Well, I think what the
Speaker 1: market is looking for generally, is this weakness that we've
Speaker 1: seen in the manufacturing side of the economy start to
Speaker 1: mean river and the rest of the economy, that the
Speaker 1: service side, the consumer that has been much more robust,
Speaker 1: just kind of continue on track. We think what we're
Speaker 1: actually likely to see is this weakness from the manufacturing
Speaker 1: side of the economy start to broaden out a little
Speaker 1: bit to the rest of the economy. We're not looking
Speaker 1: for a recession, but we are looking for more of
Speaker 1: a pronounced slowdown than the market. They don't do this
Speaker 1: till cf A five. You know, in terms of example.
Speaker 1: But let me ask to see a five question caution gloomy.
Speaker 1: It's not mourning in America. Why are starts going up?
Speaker 1: Why are stocks going up? Well, I think what the
Speaker 1: market is doing is looking through the short term weakness
Speaker 1: and it's very much expecting of recovery next year. And
Speaker 1: we had a very difficult year this year for earnings.
Speaker 1: SMP is rallied this year and we've had earnings growth
Speaker 1: of only one percent. If you ex out the effect
Speaker 1: of buybacks, it's actually been negative earnings growth. So why
Speaker 1: is the market able to look through that? Because it's
Speaker 1: expecting a sharp rebound next year, particularly from some of
Speaker 1: those stocks that have underperformed, the energy industrials, materials names.
Speaker 1: You know, the market is looking for very strong earnings
Speaker 1: growth there we ca that's a view that's going to
Speaker 1: get challenged through Q one if we don't see a
Speaker 1: decent rebound in the data, and I think you will
Speaker 1: start to see downgrades comes through to those twenty when
Speaker 1: they earnings expectations, and the market at these lofty levels
Speaker 1: I think could struggle to digest that. So, Greg, I
Speaker 1: want to talk about valuation. We've had rise in the
Speaker 1: SMP yet we've had essentially, as you just mentioned, effectively
Speaker 1: no earnings growth. Where are we in terms of valuation?
Speaker 1: It looks expensive. It looks expensive. I think if you
Speaker 1: look at, for example, growth stocks um one year four
Speaker 1: at p for growth stocks is at highs for the
Speaker 1: last thirty years x the TMT bubble. So there's an
Speaker 1: argument that in this environment of extremely easy monetary policy,
Speaker 1: low rates, that there should be evaluation premium. But the
Speaker 1: question is how much is too much? And to me
Speaker 1: it looks over extended. So you bring up the good point,
Speaker 1: which is, you know, I'm looking at the tenure here
Speaker 1: at one point seven, I've got no choice. I gotta
Speaker 1: go buy stocks. I'm just gonna go buy Jeff Bezos. Right. Well,
Speaker 1: I think that's what's been driving the market this year.
Speaker 1: And I think as long as earnings growth is positive,
Speaker 1: even if it's low, positive, that type of attitude can
Speaker 1: can play. But the issue is if you start to
Speaker 1: see stocks under pressure, if you start to see earnings contract,
Speaker 1: then it becomes much more challenging. It is a much
Speaker 1: more risky asset class. All right, So if I'm thinking
Speaker 1: about equities here, there's you know a lot of I'll
Speaker 1: probably have half the people to walk in this studio
Speaker 1: UM talk about defensive, get defensive, get defensive, but those
Speaker 1: are expensive, and the other half will come in and
Speaker 1: say no, no, no, there's no recession in sight, goes cyclicals.
Speaker 1: Where do you fall? I would rather fall in the
Speaker 1: more defensive camp, but I do think you have to
Speaker 1: be careful about that. Some of the classic defensive sectors,
Speaker 1: such as the healthcare sector UM is potentially subject to
Speaker 1: a huge amount of political risk next year. So I
Speaker 1: think it's very difficult to find good value defensive stocks.
Speaker 1: I think sectors such as the consumer staples I think
Speaker 1: would weather a down term better than some of us.
Speaker 1: You do derivatives as well, Greg Bottle explain to us
Speaker 1: the convexity right now, that's the bet within the market
Speaker 1: and when on wines it goes faster. How big is
Speaker 1: the bet right now? And the marketers are you know,
Speaker 1: the proverbial sidelines crowd, Yeah. I mean one of the
Speaker 1: things we've seen this week is that the VIX has
Speaker 1: broken down through the twilet, so it means that the
Speaker 1: expectations for future volatility are very low, and we've seen
Speaker 1: the short interest in terms of the VIX future. So
Speaker 1: the number of people betting on that basically continuing to remain.
Speaker 1: People are betting that it will be a quiet ball
Speaker 1: market exactly. So there's a there's a larger outstanding short
Speaker 1: position on the VIX than there than there has been
Speaker 1: in recent history. So yeah, there's basically a bet that
Speaker 1: we're going to remain in this very low volatility risk
Speaker 1: on environment and that creates potentially a fierce a reaction
Speaker 1: if you do get a catalyst to break us out
Speaker 1: of that. All right, So it seems to me we
Speaker 1: are just one tweet away from this trade deal, just
Speaker 1: going what would that mean for things? Yeah, I should
Speaker 1: have taken us there, But what could happen in that
Speaker 1: scenario is that it's still a risk of the market
Speaker 1: is a market kind of looking past trade, the markets
Speaker 1: looking past trade, which is exactly why it is a risk.
Speaker 1: I think the market is very much pricing in the
Speaker 1: idea that this phase one deal, this East fire is
Speaker 1: going to get done. I think everyone accepts there are
Speaker 1: challenges further down the road, but in the short term,
Speaker 1: I think everyone speaking to expects these December deadline to
Speaker 1: pass without any further increase in tariffs, and that we
Speaker 1: reach a phase one deal so ready for markets the
Speaker 1: risk that if we don't then that could have a
Speaker 1: kind of a significant impact. What is the segmentation that
Speaker 1: I can take advantage of? Is it MidCap, small cap,
Speaker 1: large cap? Is it US international? Is it you know,
Speaker 1: the twelve stocks that are going up versus value and
Speaker 1: geometric going nowhere? What's the partition that is an opportunity? Well,
Speaker 1: I think it depends on your view. If you buy
Speaker 1: into the idea that we are going to have a
Speaker 1: cyclical recovery, then I think those stocks that have lagged,
Speaker 1: whether it's energy industrials, the smaller midcaps in particular, do
Speaker 1: look potentially interesting. The Russell broke out through the top
Speaker 1: end of its trading range last week, So if you
Speaker 1: buy into that narrative, I think the smaller midcaps could
Speaker 1: rally into the back end of the year. I think
Speaker 1: if you're worried a lot about trade, if you're worried
Speaker 1: about the US elections next year, then I do think
Speaker 1: you have to be more cautious about the nasdack some
Speaker 1: of the fang names. As I mentioned earlier, valuations for
Speaker 1: the growth stocks are extremely elevated, and typically is the
Speaker 1: Nasdaq that has been more volatile around trade headlines, and
Speaker 1: I think could be far more impacted by the politics
Speaker 1: next year. I mentioned that the fang stocks, I mean
Speaker 1: they've been Are you concerned that the breath of the
Speaker 1: market advance this year maybe isn't as healthy as we've
Speaker 1: seen in some other advances. Yeah, I think that's that's
Speaker 1: absolutely true. I think there's been kind of a relatively
Speaker 1: narrow sub section of the market that's been driving growth,
Speaker 1: and that very much reflects this dislocation we've seen between
Speaker 1: the manufacturing side of the economy and the service side
Speaker 1: of the economy. So absolutely it has been a very
Speaker 1: narrow ralliant that raises the risk. Big bottle, thank you
Speaker 1: so much, greatly appreciated. With B ANDP. Perry bar with
Speaker 1: Equities and derivatives there in a cautious GDP view as well.
Speaker 1: Andrew Holland Hurst here, Andrew, the zeitgeist is okay, maybe
Speaker 1: it's a bottom and up. And of course Chairman Powell
Speaker 1: talking about a glass more than a half full? Is
Speaker 1: that what you see? You know, it's looked a lot
Speaker 1: like a glass exactly half full. And we're starting to
Speaker 1: get some of this hard data and that's looking a
Speaker 1: little bit more positive. So we've seen some positive signs
Speaker 1: on the soft data, and I would say data out
Speaker 1: this morning, you're seeing better investment in g d P,
Speaker 1: You're seeing better signs of future investment endurables. And that's
Speaker 1: really where you want to see the strength in an
Speaker 1: area that's been weak for quite some time. With that tone,
Speaker 1: do yields as a general framework stay lower or is
Speaker 1: the huge surprise of Q one two thousand twenty up
Speaker 1: up we go finally in yields that that that would
Speaker 1: be a huge surprise. I think that's what no one
Speaker 1: is expecting. And and and I think you know if
Speaker 1: you're listening to Governor Brainard yesterday for instance, but she
Speaker 1: said she was talking about the potential to move to
Speaker 1: an average inflation targeting regime. UM, so this is still
Speaker 1: a said that even if they see strong activity, you
Speaker 1: need to see something on the inflation front to get
Speaker 1: them thinking about hikes. I think that's where we have
Speaker 1: this scenario where it is looking a little bit better.
Speaker 1: Equities are moving higher, but rates are staying fairly low.
Speaker 1: So Andrew, looking at the data that came out this morning,
Speaker 1: you know, US business equipment demand increases by the most
Speaker 1: since January, you know, and that's kind of car counter
Speaker 1: to the narrative that we've been having, you know, contracting, manufacturing,
Speaker 1: weak business investment. Is this the beginning of a turn
Speaker 1: do you think? Or is this not so much of
Speaker 1: a trend at this point? It's probably too early to
Speaker 1: call it a trend. And and and we're really looking at
Speaker 1: one month of data, Like I was saying, you do
Speaker 1: have some of these leading indicators globally p m I
Speaker 1: s for manufacturing or turning up, and they're still at
Speaker 1: low levels, but they look like they're coming off of
Speaker 1: the bottom. So that's what we're hoping for. That's what
Speaker 1: we think we we're going to see. And the other
Speaker 1: thing that's going on in the US is you had
Speaker 1: this auto worker strike, which was a dragon probably even
Speaker 1: a dragging these numbers that still look pretty positive. That's
Speaker 1: going to bounce back. Um, we know that we had
Speaker 1: aircraft production that was shut down. That's going to bounce
Speaker 1: back ball. So so you have a couple of idiosyncratic factors.
Speaker 1: And there also that coming into the first half of
Speaker 1: these numbers could look a little more positive. So I
Speaker 1: think that's going to happen. Do I see it in
Speaker 1: the data. Yet I'm not sure that we're seeing it
Speaker 1: that clearly. Andrew wonderful to see Sherman green Span, And
Speaker 1: I think with Maria yesterday, and you know, I look
Speaker 1: at Sherman Greenspan and his economic mandate is a good
Speaker 1: stock market builds confidence. Is that still true or is
Speaker 1: the stock market the province of only the elite? Well,
Speaker 1: it is true that the games from the stock market
Speaker 1: are not that broadly shared across the economy. This this
Speaker 1: really is high income, high wealth individuals that have exposure
Speaker 1: to the stock market. But when we look at this
Speaker 1: consumer sentiment measures, and even when you break those consumer
Speaker 1: sentiment measures down across income crew groups, UM, across demographics,
Speaker 1: you still see the pass through from higher equity prices
Speaker 1: UM to what's going on more broadly with consumer sentiments.
Speaker 1: So those two things are they are linked, um. Whether
Speaker 1: fundamentally or not, they they should be. They do seem
Speaker 1: to be quite linked empirically UM. And so as we
Speaker 1: see equities moving higher UM, we think that should be
Speaker 1: positive for consumer sentiments. Surprising then that you know, conference
Speaker 1: or consumer sentiment has actually stayed a little bit lower here.
Speaker 1: So we're watching that to see if that bounces um,
Speaker 1: but but in general that should be a positive backdrop
Speaker 1: for the economy coming into Andrew Holland Hurst, thank you
Speaker 1: so much. Too short to visit. He is a city
Speaker 1: group working with Catherine Man on a view on the
Speaker 1: American economy as well. It is a joy to speak
Speaker 1: to the gentleman from Pennsylvania and Florida. His name is
Speaker 1: Mr Kotak, David Kotak with Cumberland Advisers. David, before where
Speaker 1: we get to your important essay and the poisonous idea
Speaker 1: of negative interest rates, you have provided national leadership on
Speaker 1: the challenges to agriculture in China and a center around
Speaker 1: your pioneering bird flu work years ago. Pork is stratospheric
Speaker 1: in China and as a profound impact. It's not the
Speaker 1: same as bird flu, but there's a little bit of
Speaker 1: related biology, microbiology and virology. Here. Your thoughts on the
Speaker 1: durability of this pork crisis for China. Oh my gosh. Uh,
Speaker 1: Good morning and happy Thanksgiving. And you just made the
Speaker 1: case of why Turkey is so it's important. Um. The
Speaker 1: The issue of flu is that it you takes. We
Speaker 1: know that we saw it from bird flu, we saw
Speaker 1: it from other viruses. In this case, the shock to
Speaker 1: China is huge. Michael Jewelry, who acts those prices UH
Speaker 1: perfectly in China and has developed the whole Price Indicator
Speaker 1: based on what's happening there, describes the shock in the country.
Speaker 1: It's like the most basic food source has an inflation
Speaker 1: spike in a shortage, and of course it happens in
Speaker 1: the middle of all the agricultural components of the trade
Speaker 1: war between the United States and China. So there's a
Speaker 1: big effect here too. So David is just to follow
Speaker 1: up out a little bit. Is China more susceptible to
Speaker 1: these types of viruses, whether it's poultry or beef for pork.
Speaker 1: I don't know whether China is more susceptible. Um, there's
Speaker 1: medical expertise on that far beyond anything I I hold.
Speaker 1: What we do see is we have these originations coming
Speaker 1: from Asia which affects and have potential of the effective
Speaker 1: world wide. And we never know with the virus. The
Speaker 1: only thing you know about a virus is it will change.
Speaker 1: So this is a situation which is huge in China,
Speaker 1: has international effects and the results are yet to be seen,
Speaker 1: which is the case with every one of these. So
Speaker 1: David let's switch gears to your recent research note on
Speaker 1: negative interest rates, obviously a significant issue for Germany, for
Speaker 1: Japan and some other UH countries as well. What is
Speaker 1: your basic thesis about what's going on with some of
Speaker 1: these markets with negative interest rates and their Well, yeah,
Speaker 1: we worked on the paper for a number of months
Speaker 1: to put together and verify that the thinking was supportable,
Speaker 1: and essentially it works like this. If you have positive
Speaker 1: interest rates, the farther out you go you have a
Speaker 1: traditional yield curve, one that we're usually accustomed to in
Speaker 1: most countries and certainly the United States, then the longer
Speaker 1: out you go, the more you're paid, and therefore you
Speaker 1: have an incentive for a longer maturity. If you have
Speaker 1: negative interest rates and the yield curve is increasingly negative
Speaker 1: as maturity goes out, then the longer out you go,
Speaker 1: the more you are penalized. And therefore, in a negative
Speaker 1: interest rate scheme such as we have in Europe, the
Speaker 1: incentive is to be very short term, because the penalty
Speaker 1: is lower. In the positive interest rate scheme such as
Speaker 1: what we have in the United States, then the you're
Speaker 1: incented to go longer, and the effect of that is
Speaker 1: to distort forward rates the notional derivatives of which there
Speaker 1: are probably five trillion worldwide, and ultimately compressed yield worldwide
Speaker 1: to be parallel. And in fact that's what they look
Speaker 1: like today. What did you learn about extricating ourselves from
Speaker 1: a negative rate experiment? Well, Madame Legarde has the most
Speaker 1: difficult task. Now she's a superb politician and she has
Speaker 1: all the credentials, and what she has to do is
Speaker 1: herd the cats into the room and say, look, we're
Speaker 1: killing our banks, were killing our insurance companies. We are
Speaker 1: not getting much growth. There was an ECB economist out
Speaker 1: today saying we still get some SIP stimulus. Well, I'm
Speaker 1: not so sure. John Author's column where he was kind
Speaker 1: enough to quote my work. But in John Author's column
Speaker 1: on Monday, John uh Tom, he articulated case after case
Speaker 1: after case, country after country on the damaging effects of
Speaker 1: negative rates. I thought John was marvelous document. And Mr
Speaker 1: Authors has been on fire folks, and write, I mean,
Speaker 1: he's always good, but these he gets these moments. You know,
Speaker 1: it's like the Boston Bruins. He gets these moments where
Speaker 1: he just puts it on fire. And Mr Authors has
Speaker 1: been lights out. We've tried to effort him. He doesn't
Speaker 1: do early morning. He's such a rock star. I think
Speaker 1: the day starts like a tenage, something like David Kotak,
Speaker 1: have a wonderful Thanksgiving that regards to your family in Florida,
Speaker 1: Mr Kotak. Of course, his leadership for the years really
Speaker 1: a municible bonds the core business and also of course
Speaker 1: in Cumberland Advisors, Paul Sweeney knows. I mean, you know,
Speaker 1: he's got the yard out there, the acreage to the west.
Speaker 1: He's got the John Deere s, a precision cut real mower.
Speaker 1: You know, it's what you do. You can do the
Speaker 1: yard like three swipes R. Yeah, that's what. Yeah, he
Speaker 1: gets the job done. Six world. So let's go industrial
Speaker 1: here and talk about the tentativeness of American industry. Why
Speaker 1: don't you bring in her extinguished guest, Karen uble Heart
Speaker 1: Bloomberg Intelligence. She covers all things industrial. You think about
Speaker 1: the rust belt, you think, Karen uble Heart, She's been
Speaker 1: doing it for a long time. So let's just start.
Speaker 1: And I know we talked to your protege, Christilino earlier
Speaker 1: in the day about the deer numbers I'm wondering and
Speaker 1: the guidance was disappointing. They sighted China across your universe
Speaker 1: of industrial companies, agricultural companies. Is this issue really coming
Speaker 1: home to roost? I e. The trade difficulties with China
Speaker 1: coming home to hit the farm belt. The farm belt
Speaker 1: is one of the areas that has gotten hit the
Speaker 1: most because our big grains are soybeans and corn, and
Speaker 1: and China buys half of our soybeans, so they've been
Speaker 1: really wacked. Um But companies, industrial companies across the board
Speaker 1: have seen the impact. A lot of them have big holdings,
Speaker 1: particularly large companies UM three AM. As you know, eleven
Speaker 1: percent of sales is in China, so they're seeing it
Speaker 1: in China. To the economic growth slow down there is
Speaker 1: hitting them and it's hitting here as well. The uncertainty
Speaker 1: is making customers pull back on on some of the long,
Speaker 1: long lead time projects. So it has spread. An organic
Speaker 1: growth is uh, you know, down in just about everything
Speaker 1: except aerospace. So what are the companies that you cover
Speaker 1: saying again the you know, the big industrial companies, are
Speaker 1: they saying we're just trying to cut costs and ride
Speaker 1: this thing out or is there anything they can particularly
Speaker 1: do here given the uncertainty. I think I think it's
Speaker 1: the former UM. A few of the companies UM have
Speaker 1: been frankly gotten in front of UM the slowdown and
Speaker 1: cut costs pretty dramatically Emerson UM Honeywell, some of the
Speaker 1: others pulled out their quote recession books to UM get ready.
Speaker 1: So margins have actually held up pretty well. The volume
Speaker 1: has not been there UM, but so far they've been
Speaker 1: able to deliver on margins. I know you don't do
Speaker 1: biold sale, but you mentioned Minnesota Mining and Manufacture three UM.
Speaker 1: Boy is the son love two buys fifteen holes and
Speaker 1: for say go away, John Inch, Gordon Haskett, Hold, Jeff
Speaker 1: Sprague at Vertical he was brilliant one Hold, Yes Sprague.
Speaker 1: But but Karen, when does three M Do they just
Speaker 1: slog on or do they have to do a management
Speaker 1: revolution at this iconic American company? Uh? You know they
Speaker 1: have one UM. They have a big potential legal liability
Speaker 1: with the chemical p Fast and that's one of those
Speaker 1: black hole things that is unmeasurable at this point and
Speaker 1: people are concerned about. But in addition to that, the
Speaker 1: new CEO hasn't done a great job of a communicating
Speaker 1: and be the misses um, and and he is. He's
Speaker 1: on the road more now, he is. You see him
Speaker 1: on TV and radio a lot more now because he's
Speaker 1: got to tell the story better. What's the story to
Speaker 1: a venerable industrial forget about three M and venerable industrial
Speaker 1: company that makes a lot of different things. I mean,
Speaker 1: that's that's the game. Is the game over? Uh? You
Speaker 1: know it's funny as as you said, saw in the
Speaker 1: last two years, right all these companies are splitting up
Speaker 1: and they're becoming more focused. Ingersol next year, fordive U
Speaker 1: t X is splitting out of Ringers Ran is a
Speaker 1: hugely venerable name. I remember interviewing their dynamics CEO ten
Speaker 1: years ago. They had twelve divisions and all that. It's
Speaker 1: just gonna it's gone. They're gonna they're gonna be focused
Speaker 1: on um, you know, h VAC and building controls and
Speaker 1: things like that. They're getting rid of all their industrial businesses. Um.
Speaker 1: You know j C I did the same thing, got
Speaker 1: rid of all the auto business, all the battery business.
Speaker 1: They're now just building controls. UM. So you're seeing pressure
Speaker 1: to focus. Emerson is under pressure right now. Activist similar
Speaker 1: But but this is important. Is this the market speaking
Speaker 1: or hedge fund active is speaking and does it lead
Speaker 1: to true shareholder return. I think it's gonna be really
Speaker 1: interesting myself. I feel if when we have our first
Speaker 1: big bed downturn, all these companies that are now focused
Speaker 1: are going to get whacked harder exactly where I wanted
Speaker 1: to go. She said it better than me. As you
Speaker 1: look at you can focus in Bloomberg intelligence to your outlooks.
Speaker 1: You think about some of these big industrial companies is
Speaker 1: when you do, you are you just like there their
Speaker 1: corporate development people saying, tell me what happens in with
Speaker 1: China trade, and I'll tell you what we're gonna do. Well,
Speaker 1: you know, it's had an impact, a broader impact on
Speaker 1: global growth. There are the p m I s for
Speaker 1: all the major regions are all below fifty except for Brazil,
Speaker 1: which doesn't really matter that much. So it is broad um.
Speaker 1: Europe is very very weak, the US is the strongest,
Speaker 1: but it's now got at p m I that that
Speaker 1: is below fifty. This is critical. What we're talking about.
Speaker 1: The the the modern MBA experiment. As a consultant comes
Speaker 1: in and says, break up your multisector conglomerate, and you
Speaker 1: know Maltese. When I first started doing this, Maltese got
Speaker 1: premiums us you know, the ultimate premium to that stability
Speaker 1: because of all the businesses they were in. Now they're saying, yeah,
Speaker 1: now they're saying, you know, a focus, focus, focus. Initially
Speaker 1: under pressure from activists, right and in some cases not.
Speaker 1: But I'm just waiting for the downturn and then they're
Speaker 1: gonna put it together because cycles are gonna hurt. What
Speaker 1: does Mr Corps Dana Her do that the others don't
Speaker 1: because danna Her gets a valuation. Well, at this point,
Speaker 1: the like let's say, New danna Her without ford of
Speaker 1: is very healthcare. So it's got you know, so we're focused.
Speaker 1: Excuse me, it's got a stability there. I mean, they've
Speaker 1: got some other smaller businesses. I think this is a
Speaker 1: huge issue. I mean it's it's just like it's like
Speaker 1: Lemmings over a cliff where there's a strategy vogue. I'm
Speaker 1: not I'm not one to judge the vogue, but I'm
Speaker 1: I'm identifying that there is a vogue. Yeah, like remember
Speaker 1: in the sixties when there was you know, conglomerates are
Speaker 1: in and then in the eighties, conglomerates when we remember
Speaker 1: vote yeah, and I'll the only kid in school that
Speaker 1: could spell it. And and so it's it's it Waxes
Speaker 1: and Waynes and right now it's focus, focus, focus. And
Speaker 1: you know, if you're you know, in a pure industrial
Speaker 1: business and you have no place to hide, you know,
Speaker 1: part of the balance of Honeywell having chemicals and then
Speaker 1: having aerospace and you know, um and then you know,
Speaker 1: having their buildings business. They don't all go the same way.
Speaker 1: His Honeywell still Honeywell. Where are they going to go?
Speaker 1: Like did their clean up? I think? And as as
Speaker 1: long as performance is great, I think they're love this
Speaker 1: industrial stuff, don't you. I used to live this. Yeah.
Speaker 1: I mean you know, you know, they got their pressure.
Speaker 1: They wanted to remember, they wanted them to split aerospace,
Speaker 1: and he immediately responded to them, and he came out
Speaker 1: and got rid of his two more cyclical, low growth business.
Speaker 1: I've never seen you this fired up. It's Thanksgiving. I mean,
Speaker 1: this is it. He's reporting. You got all these big
Speaker 1: industrial companies. Nobody's talking Uber, nobody's talking lift or we work.
Speaker 1: We're talking Dan folks. I hope send us an emails.
Speaker 1: Would you rather listen it about Uber and Left and
Speaker 1: all these unit we work in Emerson. How's Emerson doing.
Speaker 1: They've always lacked, you know, yeah, Emerson. You know they're
Speaker 1: um a lot of late cycle stuff. You know, their
Speaker 1: their process businesses. Come on, they haven't had a fire
Speaker 1: under them in thirty years. They are have pressure now
Speaker 1: de Shaw brought in and want them to very Okay,
Speaker 1: we'll see your Friday, Karen o'bar. Thank you so much,
Speaker 1: Bloomberg Intelligence. Thanks for listening to the Bloomberg Surveillance podcast.
Speaker 1: Subscribe and listen to interviews on Apple Podcasts, SoundCloud, or
Speaker 1: whichever podcast platform you prefer. I'm on Twitter at Tom
Speaker 1: Keene before the podcast. You can always catch us worldwide.
Speaker 1: I'm Bloomberg Radio two.