Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
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Speaker 1: YouTube search Bloomberg Global News. Among the COVID headlines, Maderna
Speaker 1: saying it's COVID night teen vaccine showed a strong immune
Speaker 1: response in younger children in a late stage clinical tribal
Speaker 1: So that's paving really the way for submission to regulators
Speaker 1: for clearance in those age six to under twelve. That's something, Timmy,
Speaker 1: you've really been focusing on. Yeah, I certainly haven't even
Speaker 1: kids who are younger than that, that's the question. Also,
Speaker 1: some more good news, US COVID hospitalizations dropped to the
Speaker 1: lowest since July one, which is some great news considering
Speaker 1: where we were for much of the September month, September
Speaker 1: and the early part of this month. It's a good
Speaker 1: trend line that we like to hear about. Dr William
Speaker 1: Hazeltine is back with us. Cherman and president of Access
Speaker 1: Health International. It's a nonprofit think tank uh They are
Speaker 1: on a mission to improve access to high quality and
Speaker 1: affordable health care for people everywhere. He has found in
Speaker 1: more than a dozen biotech companies, including Human Genome Sciences.
Speaker 1: He is an author uh CV PTSD, COVID related post
Speaker 1: traumatic stress disorder, What it is and what to do
Speaker 1: about it? And many more articles and books. He joins
Speaker 1: us once again on the phone from Connecticut. Doctor how Hazeltine,
Speaker 1: Nice to have you back with us. Um Among the
Speaker 1: COVID headlines that are out there in terms of working
Speaker 1: towards getting kids vaccinated, the mix and match the trend lined,
Speaker 1: what is it that you think is of most importance? Well,
Speaker 1: the most important it is for people to be vaccinated,
Speaker 1: and the second most important is to make sure that
Speaker 1: if you're in a region where you think you might
Speaker 1: get infected, to make sure you take all precautions. That
Speaker 1: means mass ware, and I means avoiding crowds. So there
Speaker 1: are stale parts of the US where that's important and uh,
Speaker 1: it's important to follow those uh bad advice. And if
Speaker 1: you have had two shots and it's more than six months,
Speaker 1: it's probably time to get to third. Everybody, everybody, did
Speaker 1: you get your third? I certainly did. Okay, I remember
Speaker 1: you months ago saying I'm going to mark my calendar
Speaker 1: when it's six months, I'm going for I'm just doing
Speaker 1: some math on my fingers right now. Think I'm that
Speaker 1: six months, five months. But I jumped a gun a
Speaker 1: little bit. But you're right, and I'm very happy I did. Hey,
Speaker 1: Dr Hazel teen, Uh since we last spoke, since you
Speaker 1: were last on our show, there there has been a
Speaker 1: lot of developments, not just with COVID but for treatments
Speaker 1: as well. We did learn that Murk is looking for
Speaker 1: emergency use authorization for its COVID nineteen pill, and you
Speaker 1: wrote earlier this month that there are concerns around that
Speaker 1: approval process. Share with us you're thinking, because I think
Speaker 1: to a lot of people this was seen as really
Speaker 1: great news. Well, it's great news that drugs are coming
Speaker 1: along in there are three or four, actually about five
Speaker 1: in clinical development um. This drug will never up here
Speaker 1: is an interesting drug. By the way it works, it
Speaker 1: works differently from all others. It causes the virus to
Speaker 1: mutate itself to death. Mutate itself to death. Now there
Speaker 1: are several concerns. The number one concern is will you
Speaker 1: mutate sorryscope to something worse than it is. That is
Speaker 1: a real danger, and it exceeds all other dangers of
Speaker 1: the kind of resistance or side effects that might arise,
Speaker 1: because if you make a virus worse than it is,
Speaker 1: it affects all of humanity. This riers is bad enough.
Speaker 1: We don't want somebody taking a small dose by accident
Speaker 1: of the drug and mutating it so it doesn't die,
Speaker 1: but it just gets worse. So and he said, I don't.
Speaker 1: I think the FDA is going to be very, very
Speaker 1: cautious in their approval of this drug. Moreover, I spent
Speaker 1: years working on DNA damage at its repair and muta genesis.
Speaker 1: This is a genotoxic drug which causes mutations in human
Speaker 1: genes and could cause birth effects. And one of the
Speaker 1: interesting things about the clinical trials is they told people
Speaker 1: who are in the clinical trial either not to have
Speaker 1: sex or only do it with very strong birth controls
Speaker 1: because they were worried about that. So I think the
Speaker 1: FDA might approved this, but it's got to be for
Speaker 1: a very narrow indication. For me, The danger is people saying, Oh,
Speaker 1: I'm going to take this drug to prevent me from
Speaker 1: getting infected. The FDA has to put a very clear
Speaker 1: message out that only those people with proven infection should
Speaker 1: take this drug and then for as shorter period as possible.
Speaker 1: Both their dangerous to themselves and the danger that they
Speaker 1: might create the worst virus. We don't want to have
Speaker 1: to have another biox. It sounds to me like it
Speaker 1: might be for such narrow indications that it makes me wonder,
Speaker 1: do the risks that way, at least in your perspective,
Speaker 1: the risks that way um the benefits? You know. I
Speaker 1: haven't seen all the data, and the FDA will see
Speaker 1: all the data. All I can say, from what I know,
Speaker 1: from what I've seen, and from reading the clinical protocols,
Speaker 1: that I would urge the FDA to be extraordinarily cautious
Speaker 1: with respect to their approval, and possibly to put a
Speaker 1: black box on the approval process, saying this can be
Speaker 1: harmful to women who are pregnant, It can have a
Speaker 1: long term carcinogenic that's cancer causing effect. If you take it,
Speaker 1: and if you need to take it because it's the
Speaker 1: only thing available, fine, But you know, the other thing
Speaker 1: I'm aware of is your companies all over the world
Speaker 1: making tons of this drug, and the moment we get
Speaker 1: a partial approval from the FDA, I think this drug
Speaker 1: is going to go on and say out it's pretty
Speaker 1: much unregulated way around the world, and that could be
Speaker 1: very bad news for the creation of new variants. This
Speaker 1: drug works by speeding up commutation rate. That's dangerous. Well,
Speaker 1: and I will say all right through. I think it
Speaker 1: was in earlier. This month's ad interim analysis found now
Speaker 1: increased incidents of adversive fence, but they said it still
Speaker 1: needs to be assessed in a much larger group of
Speaker 1: patients to properly determine its safety. So it does sound
Speaker 1: like something that many would argue needs more research and study.
Speaker 1: Dr William Hasseltine, thank you so much, Chairman and President
Speaker 1: of Access Health International, joining us on the phone from Connecticut.
Speaker 1: You know, Tim, we talked about everything is happening in
Speaker 1: front of us, so it's just going to say that, right,
Speaker 1: some of it can be disarming, but you would assume
Speaker 1: regulators will continue to study. We're watching the process play
Speaker 1: out in front of us exactly. You're listening to Bloomberg
Speaker 1: Business Week right here on Bloomberg. I love it when
Speaker 1: the most read stories by one of the good guys
Speaker 1: here at Bloomberg. We're talking about our own Eric Shatzker,
Speaker 1: He's a Bloomberg editor at large, and this story is
Speaker 1: we just can't stop talking about. It has to do
Speaker 1: with Hurts's order for a hundred thousand e v s.
Speaker 1: It pushed Tesla shares higher and the company's market cap
Speaker 1: to one trillion. We're all talking about it. Eric Schatsker,
Speaker 1: is that are at large and he joins us now
Speaker 1: in the Bloomberg Interactive Broker Studio, Eric one hundred thousand.
Speaker 1: Contextualize this number for US. A tenth of what Tesla produces,
Speaker 1: and yet it's equivalent to a tenth of Tesla's annual
Speaker 1: manufacturing capacity. And once these cars are delivered between now
Speaker 1: and the end of two thousand twenty two, it will
Speaker 1: be fully a fifth of Hurts is half million fleet
Speaker 1: of cars and trucks. That's massive, So putting the numbers
Speaker 1: are big for sure, right and and it up ends
Speaker 1: so many different parts of the market. If you think
Speaker 1: about the rental car companies used to really write their
Speaker 1: fleets are often from the traditional auto manufacturers. Were completely right,
Speaker 1: but entirely from the traditional auto manufacturers. General Motors is
Speaker 1: the biggest supplier, Nissan is the number two supplier to Hurts.
Speaker 1: Forward is the numbers three supplier. And furthermore, when these
Speaker 1: auto manufacturers were selling, they were typically selling cars that
Speaker 1: they weren't especially excited about making and often had sitting
Speaker 1: in the bookstore equivalent of a remainder lot. So the
Speaker 1: you know, the rental car companies would buy them at
Speaker 1: massively discounted prices. There was a naturally an antagonistic relationship
Speaker 1: between the rental car company and the automaker, and this
Speaker 1: completely changes that equation because Hurts is buying these cars
Speaker 1: at close to list price, which brings the two companies
Speaker 1: much closer together, something akin to a partnership as opposed
Speaker 1: to an adversarial relationship. Help us understand some logistics here, Eric,
Speaker 1: Because you have to charge these you do, and you
Speaker 1: have to think about rental cars, you gotta fill it
Speaker 1: up before you go back, or else you get you
Speaker 1: get digged um, how does the charging network work? And
Speaker 1: how does how does Hurts ensure someone that they're gonna
Speaker 1: be able to reliably charge it? Well? For starters, Hurts
Speaker 1: customers who rent Tesla's will have access to Tesla's network
Speaker 1: of three thousand supercharging stations. So that helps a great
Speaker 1: deal because that's already made it possible for people to
Speaker 1: own Tesla's and to find an acceptable, viable substitute for
Speaker 1: the gas station. But Hurts is building its own network
Speaker 1: of chargers, and they'll be at Hurts locations, whether they
Speaker 1: be at the airport or somewhere in suburbia or even
Speaker 1: you know, downtown in an urban center like a New
Speaker 1: York City for example, And so Hurts customers will be
Speaker 1: able to use those as well. Furthermore, did I say
Speaker 1: furthermore twice? Maybe there's a lot furthermore moreover? How's that um?
Speaker 1: Hurts is going to integrate Tesla's digital mobility technology with
Speaker 1: its own digital mobility technology in order to help customers
Speaker 1: get over the fear of range anxiety. The car will
Speaker 1: tell you what you have to do, as long as
Speaker 1: you tell the car where you're going. The car will
Speaker 1: tell you how much you've got left. If you where
Speaker 1: the supercharging station is that you need to drop by
Speaker 1: for fifteen minutes to make sure that nobody has that
Speaker 1: crushing experience will being left down in the middle of
Speaker 1: the Mojave desert with no feel Furthermore, which is something
Speaker 1: you do want. No But I think about this story
Speaker 1: about the legitimization of Tesla and the legitimization of Hurts
Speaker 1: like thinking about what they want to be in the future. Well,
Speaker 1: for sure, this gives you an idea that Tesla has
Speaker 1: big plans to become an even bigger evy manufacturer than
Speaker 1: it already is. It's the only company that can manufacture
Speaker 1: e vis at scale. And this is proof positive that
Speaker 1: Elon Musk had not just a vision, but a viable
Speaker 1: vision because Hurts can't buy from anybody else. And on
Speaker 1: the Hurt side, I think this shows you just how disrupted,
Speaker 1: if you like, an industry can be by people who
Speaker 1: come in from the outside. Nighthead Capital the distress that
Speaker 1: Hedge Fund and Sertari is the private equity firm that
Speaker 1: specializes in travel, teamed up to buy Hurts out of
Speaker 1: bankruptcy for six billion dollars or that looks like a
Speaker 1: good deal. Now. But they're the ones who came up
Speaker 1: with the ideas to do this, and I'm really excited
Speaker 1: to see what else they do, because they're clearly intent
Speaker 1: on shaking up the rental car industry, which is a competitive,
Speaker 1: highly commoditized industry and isn't really used to being shaken up.
Speaker 1: Hurts his twelve point six billion market cap as we speak. Wow,
Speaker 1: I know, right, so not too shavvy. I wonder when
Speaker 1: we look back on the history just in a couple
Speaker 1: of years of Tesla, if this is one of those moments.
Speaker 1: And we talked to Dana Hole about this, who covers
Speaker 1: Tesla Bloomberg News. It's still you know, when you see
Speaker 1: a Tesla out in the wild, you're still like, oh,
Speaker 1: there's a Tesla, but there's a lot more on the road.
Speaker 1: And yeah, in California, it's not really a thing anymore.
Speaker 1: But does this get countrywide, Like, Okay, seeing a Tesla out,
Speaker 1: We're going to see a whole lot more Tesla's and
Speaker 1: it won't be a big deal anymore. Well, this is
Speaker 1: ten percent of the annual manufacturing capacity of Tesla. But
Speaker 1: Tesla is adding factories in Austin, It's adding a factory
Speaker 1: in Europe, and so we're going to see on the
Speaker 1: basis of that alone, added capacity and more Tesla's and
Speaker 1: let's not forget this is not an exclusive deal. Hurts
Speaker 1: if it wants to can go and buy evs from
Speaker 1: other manufacturers to just aren't any to buy right now.
Speaker 1: But Rivian's coming, Lucid's coming, all the big European producers,
Speaker 1: manufacturers are going to have their own. They're going to
Speaker 1: have their own here Ford, No, no, no, we should
Speaker 1: be talking about Detroit to of course, General Motors has
Speaker 1: a very viable, very viable EV strategy, but they're targeting
Speaker 1: different parts of the market. The Chevy Bolt is at
Speaker 1: the bottom, and Cadillac, where they're also doing some really
Speaker 1: exciting EV stuff, is at the top end, just like Lucid,
Speaker 1: and just like Rivan. There's nobody filling in the middle.
Speaker 1: Volkswagen is probably going to be a big manufacturer in
Speaker 1: the middle because that's what Volkswagen does. You could anticipate
Speaker 1: the Toyota at some point is going to do something similar,
Speaker 1: but they are years behind. And that's the thing worth
Speaker 1: emphasizing again. Muskat division need to manufacture at scale. Why
Speaker 1: do you need to manufacture at scale? Because then you
Speaker 1: become the only guy on the block who can do
Speaker 1: a deal like this, which is what is playing out
Speaker 1: to be. Continued. Eric Statsker, Editor at large up Bloomberg News.
Speaker 1: Check out his exclusive story on the Bloomberg I have
Speaker 1: to say, Tim, when I asked um our Ed Hammond
Speaker 1: about a week or so ago, when what I needed
Speaker 1: to talk about it my milk and panel and Global
Speaker 1: M and A. He said, well, record year, and how
Speaker 1: is that considering the backdrop? It was incredible advice. Yeah.
Speaker 1: One thing that stuck out to me from this piece,
Speaker 1: and Ed Hammond is deals reporter at Bloomberg News, he
Speaker 1: joins us now here in New York City, and one
Speaker 1: thing that really stuck out to me was something in
Speaker 1: the first paragraph. The records set in two thousand seven.
Speaker 1: So let's talk numbers here. Four point one trillion this
Speaker 1: year would break the record set in two thousand seven
Speaker 1: for Global, for M and A by the end of
Speaker 1: transactions to usually top five trillion dollars. Is this some
Speaker 1: sort of sign when when there's M and A like this,
Speaker 1: because we all know what happened after two thousand seven. Um,
Speaker 1: I'm sort of hesitant to draw parallels between oh, seven,
Speaker 1: and now in terms of using the M and A
Speaker 1: market is a reason to suggest that the wieldy are
Speaker 1: about to come out flok. Obviously, we are long into
Speaker 1: a market cycle that has you know, had the top
Speaker 1: called many times. I was among those who thought M
Speaker 1: and A would probably haven't pronounced and a long time
Speaker 1: slow down after the pandemic or when we go into
Speaker 1: the pandemic, and as it turned out, it was you know,
Speaker 1: one and a half quarters that it kind of stopped
Speaker 1: for or slowed down for, and then it's roared back.
Speaker 1: We saw it come back very strongly in the second
Speaker 1: half of that momentum continued so far throughout this year.
Speaker 1: And as you say you were about to pass the IS,
Speaker 1: I was in a seven record. We may indeed it
Speaker 1: passed it at some point today and well on track
Speaker 1: yet that quite trilling and by the end of the year,
Speaker 1: which an astonishing number, I mean in any circumstance, and
Speaker 1: astonishing number. But when you look at all the the
Speaker 1: environmental factors going on in the background, and why you
Speaker 1: wouldn't want to do a deal right now, I think
Speaker 1: you know also well and what's interesting at and you
Speaker 1: really did like set up me so well But what's
Speaker 1: interesting too is you know these dealmakers that I talked
Speaker 1: to bankers over the city, at Deutsa and elsewhere, they
Speaker 1: said that in many ways, UM members of the C
Speaker 1: suite are getting kind of poked and product by their
Speaker 1: board for not doing deals right now, talk to us
Speaker 1: about what you're hearing. Why these deals are getting done
Speaker 1: despite the backdrop of a pandemic and worries about the
Speaker 1: outlook and supply chain problems and so on. I think
Speaker 1: part of it is just the cost of a nursher
Speaker 1: is is also very high. Look obviously, doing a deal
Speaker 1: at any time carry some risk, and you know you
Speaker 1: can get it wrong and that can be consequential. As
Speaker 1: the CEO, you can do your borders or your job
Speaker 1: stories aboard, you can be tossed out. But I think
Speaker 1: right now, with the amount of disruption is going on
Speaker 1: across industries and the sort of rapidity of change that
Speaker 1: almost their industry is going through, I think there are
Speaker 1: a real cost to not doing stuff and not growing.
Speaker 1: And you know, at the moment a lot of companies
Speaker 1: are matched out on organic growth and M and A
Speaker 1: is obviously a very quick and efficient way a lot
Speaker 1: of the time to to to sort of turbo charge
Speaker 1: that growth in organically. In reporting this story, and you
Speaker 1: also looked at how investors react to companies that when
Speaker 1: a company does announce an acquisition, both to the company
Speaker 1: getting acquired and the one doing the acquiring. What did
Speaker 1: you learn. It's a really interesting trend that we've seen
Speaker 1: to him where you have this, uh, this sort of
Speaker 1: anomaly in the market where shareholders are coming out when
Speaker 1: companies and ounced deals and saying, you know, this is
Speaker 1: something we do like, and they're reflecting that in the
Speaker 1: way the shares trade obviously quisitive companies and seeing shares
Speaker 1: trade up, which goes against almost very historical trends per virus.
Speaker 1: The recent paper US interest deal that was talked about
Speaker 1: right before I came on, obviously that was slightly different
Speaker 1: where you saw papal trends down and trade down heavily
Speaker 1: on news and some extent we think that's why they've
Speaker 1: now pulled the plug on that particular deal. But yeah,
Speaker 1: investors again, look, they're they're happy to see companies going out,
Speaker 1: getting on the front foot and pulling whatever leavers they
Speaker 1: can to achieve growth in this market. And I think
Speaker 1: it all comes back to the fact that we are seeing,
Speaker 1: you know, not reckless deals. We're not seeing companies go
Speaker 1: out and try and do very very large, complex, you know,
Speaker 1: sort of horizontal mergers. This is much more vanilla. Let's
Speaker 1: go out, let's do a deal that actually is in
Speaker 1: line with what we ever we want to do strategically
Speaker 1: from perhaps it gets it slightly quicker from A to
Speaker 1: B than we would get their organic too. Well, how
Speaker 1: much of it, too, is pandemic related or pandemic push
Speaker 1: and where you know, trends, disruptions, digitization was happening, but
Speaker 1: it might have happened over the next three to five years,
Speaker 1: and all of a sudden it was like, Bam, it's
Speaker 1: happening now, and I've got to possibly do a deal
Speaker 1: and acquisition to put my business in the right place
Speaker 1: to embrace that. Yeah, And I think that that comes
Speaker 1: back to this issue of disruption and the speed at
Speaker 1: which it's occurring now. And as you say, the pandemic
Speaker 1: sort of supercharged some of the activity. But you look
Speaker 1: at any industry now and they are all you know,
Speaker 1: if they're not tech industries that take enabled industries and
Speaker 1: so a lot of them. We've seen a lot of
Speaker 1: this already this year, are going and doing acquisitions that
Speaker 1: don't necessarily look like a sort of straightforward. You know,
Speaker 1: an industrial company buying an industrial company. They're an industrial
Speaker 1: company buying a software company because they're realizing that actually,
Speaker 1: this is the way we're going to keep growing, and
Speaker 1: it's much easier to go out and buying something small
Speaker 1: that we can just tuck in then build our own
Speaker 1: capabilities in an area that perhaps is not where we
Speaker 1: have existent skills. How do spacts play into the boom
Speaker 1: that we've seen over the last eighteen months. Well, look
Speaker 1: in terms of the sort of headlines and the amount
Speaker 1: of noise and interest they command their normals, but in
Speaker 1: terms of the actually dollar value, they're very, very tiny.
Speaker 1: You know, certainly if you look at the sort of
Speaker 1: the dollar value of the spacts themselves rather than the
Speaker 1: dollar value of the companies, they often reverse into as
Speaker 1: a minority holder you're talking, you know, it's it's it's
Speaker 1: a minimus. But obviously trends they have been, you know,
Speaker 1: a driver of different kinds of activity. I'm sure you've
Speaker 1: seen some companies go out and do M and A
Speaker 1: because they were sort of worried about what might otherwise
Speaker 1: happened with the spect potentially buying a target that they
Speaker 1: were interested. So I think it's contributed, but certainly there
Speaker 1: is a quite serious dislocation between the amount of noise
Speaker 1: Spect have generated and the actual contribution they've had to
Speaker 1: overall EM and ads here. So all right, if we
Speaker 1: end up with five trillion and then some this year,
Speaker 1: does that mean things necessarily slow down? Because I know
Speaker 1: from my panel they all seem gangbusters that it would
Speaker 1: continue into two. But what are you hearing? I mean,
Speaker 1: money is so cheap it's easy for they've also got
Speaker 1: a lot of you know, cash to play around with. Yeah, look,
Speaker 1: money is cheap, and that's often site is one of
Speaker 1: the reasons we're seeing this this great market. What I
Speaker 1: would say to that is money has been cheap for
Speaker 1: a long time, and there have been fast going on
Speaker 1: that would would seem to dissuade people been doing M
Speaker 1: and A. So I don't think it just cheap money.
Speaker 1: I think there's a lot of momentum going through the
Speaker 1: M and A market at the moment. Some of that
Speaker 1: is obviously catch up after we had that slowdown during COVID,
Speaker 1: and I think some of that will continue into two.
Speaker 1: The conversations we've been having. We had a common tax
Speaker 1: m A ban Cool on Bluemo TV this morning talking
Speaker 1: about the strength of the pipeline. They actually think it's
Speaker 1: stronger than the current market conditions we're seeing, which would
Speaker 1: suggest going into two, we're going to have a you know,
Speaker 1: a lot of deals backed up ready to go. Whether
Speaker 1: it continues through two, sorry, who knows? Um. I think
Speaker 1: a lot of that will depend on on what we see,
Speaker 1: you know, in in sort of global affairs, what we
Speaker 1: see the domestic economy, but also obviously some of the
Speaker 1: sovereign risks that he just ten seconds, what derails this
Speaker 1: from continuing? The great question? Um, I would I thought
Speaker 1: COVID wouldn't It didn't I think? Look in rising interest
Speaker 1: rates is obviously gonna be the number one factors that
Speaker 1: will not business confidence and never m A all right,
Speaker 1: gonna leave it there. I get your sleep, because you're
Speaker 1: gonna be busy. It sounds like when it comes to
Speaker 1: continued m and A flow. Ed Hammond he's our deals
Speaker 1: reporter Bloomberg News. Check them out at Ed Hammond New
Speaker 1: York on Twitter, and you can always find his stories
Speaker 1: on the Blomberg Terminline at Bloomberg dot Com. Get ready
Speaker 1: also shout out to add he, along with me Anna Baker,
Speaker 1: broke that Pinterest story last week. Yeah, I mean he's
Speaker 1: very exactly all right. You're listening to Bloomberg Radio. This
Speaker 1: is Bloomberg Business Week with Carol Masser and Bloomberg Quick
Speaker 1: Takes Tim Stinovik on Bloomberg Radio. You are listening to
Speaker 1: Bloomberg Business Week and this story it is the Bloomberg
Speaker 1: Big Take today. It is about the world's top five
Speaker 1: polluters being responsible for six global emissions in China Loan.
Speaker 1: Though generating about the same amount of c O two
Speaker 1: as the next four countries combined, it's carbon output is
Speaker 1: still rising every year. We'll get into where this state
Speaker 1: is coming from. Joining us right now is Andy Brown,
Speaker 1: editorial director oft Bloomberg New Economy. Here in our interactive
Speaker 1: Broker studio, climate change front and center with copy right.
Speaker 1: We're all focusing on what the world is doing to
Speaker 1: combat climate change. But if China is not part of it,
Speaker 1: so what Right at this point, you know, it almost
Speaker 1: doesn't matter what the US does, what Europe does. The
Speaker 1: fate of the of the planet is in the hands
Speaker 1: of China and more specifically than that in the hands
Speaker 1: of a handful really just a few huge, ginormous state
Speaker 1: owned enterprises in cement in steel, and then in all
Speaker 1: of the industries that use cemented steels, so autos, machinery,
Speaker 1: real estate, infrastructure, and you know, we this this big take.
Speaker 1: We drilled into the numbers and and and by the way,
Speaker 1: they don't that they're not that transparent. So it took
Speaker 1: a lot of dicking in. Our reporters did it with
Speaker 1: the Center of the Research on Energy and Clean Air,
Speaker 1: and the results are that you know, you take a
Speaker 1: company like for instance, Baw Wo Baw used to be
Speaker 1: called Bao Steel, big Shanhai steelmaker, biggest steelmaker in the
Speaker 1: whole country. It's emissions. It has a carbon footprint the
Speaker 1: size of Pakistan. You you take a subsidiary of Sinopeck.
Speaker 1: So sino Peck is the big Chinese oil. May one
Speaker 1: of its subsidiaries, I think it's called a petroleum and
Speaker 1: chemical has a carbon footprint or had carbon emissions in
Speaker 1: two thousand and nineteen the size of Canada. And Canada,
Speaker 1: by the way, is an emissions heavyweight. It ranks number
Speaker 1: eleven in the world. I mean, these numbers are really astonished.
Speaker 1: It's the first time that that you know, anybody has
Speaker 1: put the numbers against these companies. And and you know,
Speaker 1: people outside of China probably never heard of most of these,
Speaker 1: you know, So how do what these companies are doing
Speaker 1: aligne or not aligned with China's own goals when it
Speaker 1: comes to climate right, So, so we know what the
Speaker 1: overall target is ching paying. President Jumping has announced it
Speaker 1: that you know, common emissions are supposed to to net
Speaker 1: out is supposed to go to zero in by two
Speaker 1: thousand and sixty. We're supposed to reach peak emissions carbon
Speaker 1: emissions by the end of this decade. But again, so
Speaker 1: much is going to depend on, you know, whether or
Speaker 1: not these company, these big companies can make a green transition.
Speaker 1: They're very powerful, you know. I mean they have common emission,
Speaker 1: they have common footprint the size of country, but they
Speaker 1: also have you canomic output the size of whole countries, right,
Speaker 1: And they have powerful links into city governments, into provincial governments,
Speaker 1: and the people that run them have ministerial ranks. They
Speaker 1: are in a sense, you know, they are they are
Speaker 1: massive fiefdoms. I mean, you know, you mentioned President she
Speaker 1: and has promised to zero out emissions by twenties sixty, right,
Speaker 1: which seems a long time away. Uh, if you look
Speaker 1: at what's happened to the climate today, Um, you know,
Speaker 1: how does he balance I mean, his own climate is
Speaker 1: not great, right and maybe you know, pushed back by
Speaker 1: his own citizens, But how does he bound balance growth
Speaker 1: in that economy? Right? There's going to keep to keep
Speaker 1: everybody happy, right and and avoid unrest with all so
Speaker 1: taking care of the climate, which is ultimately taking care
Speaker 1: of the citizens and their health. That's exactly it. I mean. So,
Speaker 1: and that's really the story of where you have these
Speaker 1: long range, high level, pious targets of netting out carbon emissions.
Speaker 1: But what's going to happen in the near term, Well,
Speaker 1: we know what's happened in the near tern in China
Speaker 1: right now they're ramping up massively cold capacity to address
Speaker 1: their energy crunch. Right, They're building coal fire power stations,
Speaker 1: the coal emissions that carbon emissions have a far from peaking,
Speaker 1: Like things are literally moving in the exact wrong direction,
Speaker 1: the exact opposite directions. So the rest of the world
Speaker 1: is going to have to make up for what China
Speaker 1: is now doing, and that seems rather unlikely too. So
Speaker 1: how do we app I think about so many of
Speaker 1: the new economy conversations. You guys are looking at this
Speaker 1: from such a high level and bringing in people form
Speaker 1: all over the globe. So I don't know, how do
Speaker 1: we look at this, How do we go forward? What
Speaker 1: needs to happen? It's not all doom and gloom, right,
Speaker 1: So we need to balance this out a bit. So
Speaker 1: um Number one, the cost of renewable energy in China,
Speaker 1: that's wind and solar, is now cheaper than the cost
Speaker 1: of energy from fossil fuel. So that's a big positive.
Speaker 1: China is a global leader in electric vehicles. China has
Speaker 1: something like eighty percent of all of the world's output
Speaker 1: of lithium ion batteries. Okay, so these are these are
Speaker 1: big positives. Plus plus, China is massively investing in some
Speaker 1: of these frontier technologies green hydrogen as an example, carbon
Speaker 1: capture and storage. And if China can master some of
Speaker 1: these technologies, it has the ability to scale them in
Speaker 1: a way that no other country on Earth can do.
Speaker 1: It did precisely that, of course on elect cause, and
Speaker 1: is doing that now on on batteries and solar and wind.
Speaker 1: Is there the political will to do that? Ultimately because
Speaker 1: at the same time, right, there will be industries then
Speaker 1: that are kind of taken out as a result. Right
Speaker 1: as these new alternatives commit very serious g G ping
Speaker 1: is very serious about reducing emissions, and in fact, that
Speaker 1: was one of the reasons they had an energy crunch
Speaker 1: this year, because you know, the provincial authorities are on
Speaker 1: district instructions to meet emissions targets, and some of them
Speaker 1: looked like they were overshooting. Um, so there is a
Speaker 1: there is a serious commitment. The question, the question, the
Speaker 1: question really, as you say, is this trade off between
Speaker 1: emissions and GDP growth? Yeah, exactly, there's an uncomfortable period
Speaker 1: we're seeing it with the energy sector. Just generally we
Speaker 1: talk about this transition for the world, right from moving
Speaker 1: away from carbon fuels. I mean, based on this story,
Speaker 1: it doesn't even sound like China's in a transition. He doesn't.
Speaker 1: It isn't a long it's in a long term transition.
Speaker 1: And as I say, the on the technology side, um,
Speaker 1: there are a lot of positives. All Right, we'll see
Speaker 1: if the Earth although has that many years left, Um,
Speaker 1: Andy Brow, I know, I don't mean to be so dismal.
Speaker 1: It's Monday, though I'm feeling the gloom, Andy Brown, Editorial
Speaker 1: director of Bloomberg New Economy in our interactor brokers, Andy,
Speaker 1: thank you as always so among our most read on
Speaker 1: the Bloomberg Today, no doubt about. In fact, there's a
Speaker 1: flurry of stories. It's all about Facebook. Yes they report
Speaker 1: after the clothes today, and yes there are stories about
Speaker 1: the companies tim internal struggles when it comes to misinformation
Speaker 1: and attracting a younger audience. Well. Naomie Nicks is a
Speaker 1: social media reporter here at Bloomberg News. She's with us
Speaker 1: from the Bloomberg studio in Washington. Also joining us live
Speaker 1: from San Francisco as Kurt Wagner, Technology reporter for Bloomberg News.
Speaker 1: We got a lot to get to with both of you. Naomi,
Speaker 1: I want to start with you because your story that
Speaker 1: Facebook privately worried about hate speech spawning violence was among
Speaker 1: the many that hit this morning as a result of
Speaker 1: of Facebook whistle blower Francis Hogan. Give us a broad
Speaker 1: overview of what we learned new about Facebook today. Yeah,
Speaker 1: I mean, I think Sophie book has you know, for
Speaker 1: years been talking about the power of its AI systems
Speaker 1: to detect hate speech. It regularly releases these transparency reports
Speaker 1: that say that Facebook's uh you know, systems detect more
Speaker 1: than nine percent of the hate speech that it takes
Speaker 1: down off the platform form before a user reports it
Speaker 1: to the company. What these documents show though, is finally
Speaker 1: we have a sense of the total universe of hate
Speaker 1: speech that Facebook does and doesn't take action on overall.
Speaker 1: And what it suggests is that less than five percent
Speaker 1: of the hate speech UH is addressed by Facebook. And
Speaker 1: so that's one of the many revelations. We've also seen
Speaker 1: some revelations about how Facebook prioritizes fighting hate in the
Speaker 1: Western world and leaves developing regions behind UM and to
Speaker 1: the extent that it's algorithm, the many the mechanisms that
Speaker 1: are promoting content and making it viral are actually part
Speaker 1: of the problem. M So, and if I feel like
Speaker 1: it gets to a bigger story, and Kurt, I want
Speaker 1: to bring you in, Kurt on this too, about the
Speaker 1: transparency that the company kind of puts out there. That
Speaker 1: you may not agree with what they're doing on their
Speaker 1: platform about hate speech, but it's what we know and
Speaker 1: don't know, and the same thing has to And I
Speaker 1: feel like this speaks to as an investor I want
Speaker 1: to know the company I'm investing in, and this speaks
Speaker 1: to also their audience, which is crucial to future growth,
Speaker 1: and that has to do. Let's get to your story, Kurt,
Speaker 1: about the younger audience. The teenagers. I mean, they're not
Speaker 1: into Facebook, are they now? And I don't think you
Speaker 1: would be surprised right to hear teens aren't really into Facebook.
Speaker 1: I wasn't either. What I think these documents really showed
Speaker 1: is that not only is it a probably more serious
Speaker 1: problem than we all anticipated, but it doesn't just stop
Speaker 1: at teens. It also extends now to kind of what
Speaker 1: they call young adults, so people in between eighteen and
Speaker 1: twenty nine years old. Um, we're seeing the teens used
Speaker 1: to kind of you know, maybe use Instagram and age
Speaker 1: ump to Facebook. That's not happening as much anymore. We're
Speaker 1: seeing time spent, the number of messages, the number of
Speaker 1: posts that people create, all of that is going down.
Speaker 1: And I think if you're an investor, you know this
Speaker 1: is a huge, hugely important audience right for advertisers. It's
Speaker 1: it's obviously the next wave of Internet users that you
Speaker 1: imagine Facebook is going to lean on for its business,
Speaker 1: and you would want to know that, you know, things
Speaker 1: are heading in the wrong direction. And so I think
Speaker 1: that's why this is such a troubling thing. And if
Speaker 1: you're a Facebook investor, you're probably not stoked to to
Speaker 1: hear that. Doesn't doesn't this get to the like material
Speaker 1: information right as an investor, like what you need to know?
Speaker 1: It does, But at the same time, it does seem
Speaker 1: like Facebook investors aren't even that concerned today shares a
Speaker 1: Facebook even after this right right, well now they're up
Speaker 1: one point eight percent, and even in the last five days,
Speaker 1: which includes the period of time where we saw that
Speaker 1: really terrible news from pinterest for excuse me, from Snap
Speaker 1: with its earnings, they're only down about So now, I mean,
Speaker 1: what do you make of that? Well, I think it
Speaker 1: just speaks to the power of Facebook in this market
Speaker 1: and the advertising business it's built, um. And I think
Speaker 1: it also speaks to the fact that perhaps investors are seeing,
Speaker 1: you know, this is just another one of its many
Speaker 1: political crises that the company has weathered in the past.
Speaker 1: But you know, in truth in actuality, regulators haven't really
Speaker 1: been able to put a you know, a dimmer on
Speaker 1: Facebook's growth despite years of controversies, and so you know.
Speaker 1: Perhaps you know, that's what investors are seeing there. They're
Speaker 1: seeing this as more of a PR crisis than a
Speaker 1: true sort of business regulatory crisis. Well, and I do
Speaker 1: feel like we're getting to a point where we've got
Speaker 1: to as a company, they've got to figure out I
Speaker 1: mean hate speech. You guys write about it name you
Speaker 1: write it in your story with Lauren ed Or that
Speaker 1: conservatives and liberals often defined hate speech differently, like this
Speaker 1: gets into a tricky area, and we talked about this
Speaker 1: often about you know, freedom of speech. But I also
Speaker 1: think about what you know, Kurt was saying that if
Speaker 1: I'm investing in this company for the future, I want
Speaker 1: to know that there's going to be a future audience.
Speaker 1: It's an advertising based model at least at this point,
Speaker 1: and if it's not going to be there in a
Speaker 1: few years, that might, Kurt, you know, impact whether or
Speaker 1: not I want to invest in this company. Yeah, of course.
Speaker 1: And I think they've been able to mask this because
Speaker 1: the service is just so big, because they have so
Speaker 1: much growth in other markets and other age groups. Right,
Speaker 1: But I I think the future thing is really important,
Speaker 1: and it's not the kind of thing that's gonna happen overnight. Right,
Speaker 1: it might take years for this to materialize, but I
Speaker 1: think it's important that people understand the trajectory. Here. Hey,
Speaker 1: really quick, guys, we don't have a lot of time.
Speaker 1: Ten seconds here, Naomi, what's a question you would ask
Speaker 1: on the call tonight? Well, I mean I think I
Speaker 1: would ask about the revelations around UM Kurt's story. Um,
Speaker 1: why has it not been more upfront about a true
Speaker 1: user breakdown for all of its apps by age and demographic?
Speaker 1: And does it plan to do at in the future?
Speaker 1: And Kurt, what about for you? Real quickly? How about
Speaker 1: what's the new name going to be? I love you guys?
Speaker 1: UM so great, incredible reporting. There's so many incredible stories
Speaker 1: by Kurt, by Naomi, by our team at large when
Speaker 1: it comes to Facebook, and of course we get earnings
Speaker 1: after the closing bell today. I think I might ask
Speaker 1: those questions. No, I'm not on the call. No, but
Speaker 1: it's great, like they whittled it down. I mean, there's
Speaker 1: just so much is do they answer questions like that? Yeah? Exactly,
Speaker 1: And we'll Mark Zuckerberg be there. This is Bloomberg, Okay,
Speaker 1: do you know who this is? Okay? So I have
Speaker 1: to say, in the early days of TV um, not
Speaker 1: early early, but the second iteration um. We used to
Speaker 1: play a lot of music in between our breaks when
Speaker 1: we were getting ready for a five am show, and
Speaker 1: one of our producers loved Rush indeed, so would play
Speaker 1: it all the time. New world man, right. Who would
Speaker 1: have thought that phrase could ever apply to Donald Trump?
Speaker 1: But here you go, here you go. You know, he
Speaker 1: creates this new media company. It's gonna set up the
Speaker 1: social media and more. And he decides to make a
Speaker 1: deal with a special purpose acquisition company a k a.
Speaker 1: A stack a spack. I'll get it out. I was
Speaker 1: thinking more about sort of how you might describe the
Speaker 1: result of that deal, which is the headline in my chart,
Speaker 1: says Trump's meme World. I mean, it isn't just Digital
Speaker 1: World acquisition, which is the blank check company that's actually
Speaker 1: making also known as whack the whack because that's the
Speaker 1: way back. Yeah, exactly, might be a sack. You have
Speaker 1: this software company called Funware, which actually did some work
Speaker 1: on the Trump reelection campaign last year. And you know,
Speaker 1: if you looked at the s two days of last
Speaker 1: week actually had a bigger gain and at one point
Speaker 1: at least than Digital World didn't and we were talking
Speaker 1: almost and then as it happens, there's a gentleman named
Speaker 1: Patrick Orlando that runs Digital World. He's also the CEO
Speaker 1: of two other SPACs and so we've seen them, especially
Speaker 1: one of them, Benassary Capital uh take off starting on Friday,
Speaker 1: and then the other one is based out of China.
Speaker 1: We wrote about it. Young Hung International also up a
Speaker 1: bit on Friday. And there's one more uh mckea Capital,
Speaker 1: where he serves as a director, not CEO. But nonetheless,
Speaker 1: you even saw a bit of a game in that
Speaker 1: stock on Friday, So you know, why settle for one
Speaker 1: meme stock when you can have five. So that's Donald
Speaker 1: Trump's meme world in a nutshell. And if you want
Speaker 1: to see this performance for yourself, folks, and get the
Speaker 1: names of those companies in an email, I'll get it.
Speaker 1: I'll get everything to you along with what I do
Speaker 1: going forward. And the email addressed for that is d
Speaker 1: Wilson at Bloomberg dot net. That's d Wilson at Bloomberg
Speaker 1: dot net. Right, So the dude behind all of these,
Speaker 1: that's the commonality, right, it's Mr Orlando who we talked
Speaker 1: about on air. Um as we are as we are
Speaker 1: learning more about him and the work that he has done. Right,
Speaker 1: so presumably the Reddit traders or whoever are kind of
Speaker 1: looking at this and say, well, okay, if this one
Speaker 1: spac is doing this, what about his other SPACs? And
Speaker 1: hence you have You know, these moves isn't act when
Speaker 1: you're like walk into the door. Look well last week
Speaker 1: Thursday closed up three fifty six percent Friday of seven
Speaker 1: percent today. Yeah, but there you go. These things are voluable,
Speaker 1: no question. And looking across the group, Flintware is actually
Speaker 1: down eighteen and a half. Look at that dwack chart.
Speaker 1: I mean it's just crazy. It's like straight line, like
Speaker 1: a lego. You can make this out of legos. It's
Speaker 1: just a straight line forever or several months, and then
Speaker 1: all of a sudden it's a straight curve up and
Speaker 1: then a little bit of tailing off right like you
Speaker 1: could do this. I gottn't even whack your chart for you.
Speaker 1: But it's my stock of the debt. What is it? Tim?
Speaker 1: You actually mentioned it a few moments ago before we
Speaker 1: came on Air Backed Holdings Taker b k k T.
Speaker 1: This is a crypto impartment, Okay, cryptocurrency outfit that was
Speaker 1: taken public by the Intercontinental Exchange, who you know was
Speaker 1: the owner of the New York Stock Exchange. And uh,
Speaker 1: it was a spack deal. I'm goody good um. It
Speaker 1: was its back deal made in January and what wasn't
Speaker 1: completed until a week ago. And actually back shares fell
Speaker 1: the first four days after the deal happened. Rose on
Speaker 1: Friday today. Well, they got a couple of things going on.
Speaker 1: They partnered with the financial company five Serve, and on
Speaker 1: top of that they have a deal with master Card.
Speaker 1: You put that all together, and the share have just
Speaker 1: taken off at the moment. Backed Holdings b A K
Speaker 1: KAT hence the two ks and the ticker symbol up
Speaker 1: A hundred and seventy one. Wow, this is a stock
Speaker 1: I saw moving significantly. I clicked into it in the
Speaker 1: Bloomberg terminal. Shares had been halted, news pending, and that
Speaker 1: news after these agreements. It's another chart you can build
Speaker 1: with legos. I'm just saying, straight line, straight up. Wow,
Speaker 1: it's like, look at it. It's crazy. It was. It
Speaker 1: was below ten bucks for such a long time. All right,
Speaker 1: Dave Wilson, go get some water. Yeah, but you let
Speaker 1: me drive? Oh no, no, no, no, this is not
Speaker 1: a toy. Please, I'll do the ridings. I want to drive.
Speaker 1: It's a good question. This is the drive to the globe?
Speaker 1: Punk from me A well don radio alright, TikTok, everybody.
Speaker 1: Just about ten and a half minutes left in today's
Speaker 1: trading session. What an interesting one because you know, the
Speaker 1: first few minutes of training today we were down. But
Speaker 1: we have rallied off of those loads and we've got
Speaker 1: some games here. Tim, Hello, Tesla, Hello, Tesla, hurts and
Speaker 1: a few other things. Let's get to it. Let's get
Speaker 1: to the drive to the closest Nattia level. She is
Speaker 1: senior US Equity Strategies over EBS Global Wealth Management with
Speaker 1: us on the phone from New York. Not Eve. Good
Speaker 1: to have you here with Tim and myself. Uh, we're
Speaker 1: all in about earnings, getting ready to be all in
Speaker 1: on big tech earnings. What what's your make of what
Speaker 1: or what do you think about the earnings so far
Speaker 1: and what's to come perhaps from big tech? Yeah, you know,
Speaker 1: it's still early in the season, but we think results
Speaker 1: are coming in really strong. It's coming even better than
Speaker 1: our initial above consensus expectations. Uh, we do express at
Speaker 1: the beat rate that we've seen so far for a
Speaker 1: team percent, much of that driven by financial We look
Speaker 1: for that to moderate. We are looking for earnings growth
Speaker 1: of this quarter of over thirty percent year over year UM.
Speaker 1: That would suggest a more roughly high single digit beat rate.
Speaker 1: We do think that the sectors that are our best
Speaker 1: position right now to surprise on the upside our energy
Speaker 1: and as you said, but in parts of technology and
Speaker 1: as you should get a boost from the higher prices
Speaker 1: that we've seen grinding higher the last few weeks. And
Speaker 1: much of tech is more insulated from that supply Chaine disruption,
Speaker 1: like software and the cloud play, so that should help
Speaker 1: boost tech earnings throughout the season. When you say tech,
Speaker 1: do you also mean companies that rely on advertising for revenue,
Speaker 1: because as we learned last week Nadia, the supply chain
Speaker 1: cannot even affect those companies as a result of companies
Speaker 1: like you know, consumer package good companies that don't want
Speaker 1: to advertise as much because they are experienced supply disruptions. Absolutely,
Speaker 1: So that's in the communication services sector. Obviously, the questions
Speaker 1: around digital advertising, um, you know you don't have the
Speaker 1: goods to sell, then it's tougher to advertise those good. Um.
Speaker 1: That said, I would say the other verticals, those more
Speaker 1: every center of the pandemic, ones like we use your
Speaker 1: entertainment restaurants are coming back, so that should help offset
Speaker 1: any weakness that we're seeing in the goods vertical. Um,
Speaker 1: So we think that that will help UM some of
Speaker 1: the other larger players in the digital advertising. So just
Speaker 1: help me out here. Did you say thirteen percent or
Speaker 1: beating but you expect that to moderate? Is that quarter
Speaker 1: to quarter? So thirteen percent beat rates so far? And
Speaker 1: so coming into the season, consensus expectations for earnings growth
Speaker 1: this quarter was around or so, and so we're seeing
Speaker 1: that come in much better than expected year over year.
Speaker 1: Now that's a moderation than what we saw in the
Speaker 1: second quarter, but still very strong. Just given the old
Speaker 1: ball of context, that's earnings. What about revenues? I mean,
Speaker 1: it's the top line we really you know, focus on,
Speaker 1: because companies can't really muck with that too much. Exactly,
Speaker 1: you cannot generate, you cannot you know, engineer sales, right, um,
Speaker 1: But so SMT sales growths are really robust this quarter.
Speaker 1: We're looking for fiftcent year over year growth or even better. UM,
Speaker 1: we think that you know that the point here is
Speaker 1: that demand remains really strong, and because that is the case,
Speaker 1: that should help on the margin side. I know margin
Speaker 1: has been an issue. We think that that sales what
Speaker 1: would allow that operating leverage to kick in as well,
Speaker 1: helping to offset some of those highest cost that UM
Speaker 1: companies are seeing. What has been concerning you that you've
Speaker 1: heard from executives? I mean, for example, today we've heard
Speaker 1: from Kimberly Clark that it's been negatively impacted by significant inflation,
Speaker 1: supply chain disruptions that increase costs beyond what they anticipated,
Speaker 1: and they don't actually know when those things will be resolved.
Speaker 1: How concerning is that to you? That is something that
Speaker 1: we're definitely watching. We think a lot of the costs
Speaker 1: that some of these companies are seeing are related to
Speaker 1: supply seeds to disruption, and we do think that that's transitory.
Speaker 1: It is taken a bit longer to resolve than we anticipated.
Speaker 1: We probably won't see a resolution of some of these
Speaker 1: issues until we get surround the two, but I will see.
Speaker 1: The thing that we're watching most closely is on the
Speaker 1: labor cost side, because we know that that's stickier than
Speaker 1: some of those all more transitory inflational pressure, and I
Speaker 1: think that this is where price e power really comes
Speaker 1: in as well, and company's ability to pass along from
Speaker 1: those speaking of cost consumers. Hey, now, you guys do
Speaker 1: a lot of research, and I do under you know, SNAP,
Speaker 1: if we look at it, it is down just before
Speaker 1: that disappointing earnings report where they talked about supply chain
Speaker 1: problems and how that's resulting in companies not putting up
Speaker 1: when it comes to advertising. Should we anticipate that we
Speaker 1: will see that with the other social media platforms as well?
Speaker 1: You know, I think some of those issues are very
Speaker 1: company specific because I do think that the larger add
Speaker 1: players are better position. You know, one as I talked
Speaker 1: about earlier, those other verticals that I've been opening up
Speaker 1: those every cent. But I do think that that particular
Speaker 1: company also did fight, you know, some issues around the
Speaker 1: changes in privacy sets set in on some operating systems.
Speaker 1: I think this is where scale comes into place. Some
Speaker 1: of those larger places have so much data on their
Speaker 1: users and that they're able to help curtel some of
Speaker 1: the impacts that are just need by changes and privacy
Speaker 1: um set ins, and so the innovation that continues to
Speaker 1: happen with those larger um digital advertised advertised platform um
Speaker 1: is will really will come to bear this week. Hey, Nadia,
Speaker 1: for the SP five, you continue to maintain June in
Speaker 1: December price targets. So June's uh, December two is five
Speaker 1: thousand right now it's at forty five sixty two and change. Uh,
Speaker 1: what makes you revise those? It's all earning, you know,
Speaker 1: if Ernest continue to come in better than we expected
Speaker 1: to see if we're looking for forty year of year EPs,
Speaker 1: next year we're looking for ten percent, and so if
Speaker 1: we see Ernest continue to come in better than next
Speaker 1: because that might proper to advise up our next year estimates. Also,
Speaker 1: I think the only thing that we're watching very closely
Speaker 1: is Washington on the tax side, because our number assume
Speaker 1: of four to five percentage points dragged from higher corporate
Speaker 1: taxis and now there's chatter that that might not even happen.
Speaker 1: So that could be a source of upside to our
Speaker 1: earnest expectations for next year. Good thing to point out.
Speaker 1: And then there's always COVID, which we have to remember
Speaker 1: is always there in her backdrop. All right, Nadia, thank
Speaker 1: you so much. Nadia, Level level. Excuse me, senior equity
Speaker 1: Strategies at UBS Global Wealth Management joining us on the
Speaker 1: phone from New York City. Thanks for listening to Bloomberg
Speaker 1: Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg
Speaker 1: dot com, and you can also listen to our radio
Speaker 1: show at two pm Eastern on Bloomberg Radio or watch
Speaker 1: us on YouTube search Bloomberg Global News m