1 00:00:05,800 --> 00:00:08,720 Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm pim Fox. 2 00:00:08,760 --> 00:00:11,520 Speaker 1: Along with my co host Lisa Bramowitz. Each day we 3 00:00:11,600 --> 00:00:15,120 Speaker 1: bring you the most important, noteworthy, and useful interviews for 4 00:00:15,200 --> 00:00:17,800 Speaker 1: you and your money, whether you're at the grocery store 5 00:00:17,920 --> 00:00:20,720 Speaker 1: or the trading floor. Find the Bloomberg p m L 6 00:00:20,840 --> 00:00:28,200 Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. Sharks 7 00:00:28,760 --> 00:00:31,520 Speaker 1: What is Sharks? Well? Here to tell us what Sharks 8 00:00:31,640 --> 00:00:34,600 Speaker 1: is and why it matters is Chris mcgleno. He is 9 00:00:34,640 --> 00:00:37,560 Speaker 1: the chief executive officer and the founder. They are based 10 00:00:37,600 --> 00:00:40,120 Speaker 1: in Beverly Hills, California, but he is joining us here 11 00:00:40,120 --> 00:00:43,760 Speaker 1: in our eleven three oh studios. Tell us, Chris, thanks 12 00:00:43,760 --> 00:00:47,280 Speaker 1: for being here. First, thanks for having what exactly is Sharks? 13 00:00:47,320 --> 00:00:50,879 Speaker 1: I understanding that you know the underlying thing right, digital 14 00:00:50,920 --> 00:00:54,920 Speaker 1: marketing and consumer data distribution management platform, but I have 15 00:00:55,080 --> 00:00:57,600 Speaker 1: no idea what that means. So what we do is 16 00:00:57,640 --> 00:01:03,040 Speaker 1: we aggregate data on specific audiences. So we we work 17 00:01:03,120 --> 00:01:07,920 Speaker 1: in certain verticals and then we aggregate data around those verticals. 18 00:01:07,920 --> 00:01:11,279 Speaker 1: So an example is we're in the consumer package good business. 19 00:01:11,680 --> 00:01:14,800 Speaker 1: We aggregate data on people that buy certain types of 20 00:01:14,840 --> 00:01:19,080 Speaker 1: products in big box retailers we aggregate the information about 21 00:01:19,080 --> 00:01:22,600 Speaker 1: those consumers and then we put into put them into silos, 22 00:01:22,640 --> 00:01:25,959 Speaker 1: and then we sell access to that data back to marketers. 23 00:01:26,240 --> 00:01:30,640 Speaker 1: We do that. We do similar thing with uh the 24 00:01:30,680 --> 00:01:34,600 Speaker 1: medical business. We have every doctor in the United States 25 00:01:34,640 --> 00:01:38,160 Speaker 1: map down to their cell phone, to their home computers, 26 00:01:38,160 --> 00:01:41,080 Speaker 1: to their office computers, and then we sell access to 27 00:01:41,120 --> 00:01:43,679 Speaker 1: that data to big pharma companies that want to reach 28 00:01:43,720 --> 00:01:47,640 Speaker 1: those particular on colleges, cardiologists, neurologists, and so on. And 29 00:01:47,680 --> 00:01:50,080 Speaker 1: we have that for around five different verticals that we do. 30 00:01:50,680 --> 00:01:53,680 Speaker 1: How hard is it for you to access the data? Well, 31 00:01:53,880 --> 00:01:56,680 Speaker 1: it takes a long time to build specific data sets 32 00:01:56,720 --> 00:01:59,840 Speaker 1: because you need to build them over time. So we 33 00:02:00,840 --> 00:02:03,920 Speaker 1: when we start a particular vertical, we have to slowly 34 00:02:04,000 --> 00:02:05,800 Speaker 1: start to build them, and we buy a lot of 35 00:02:05,880 --> 00:02:09,040 Speaker 1: data at first, and then data is we begin to 36 00:02:09,080 --> 00:02:11,839 Speaker 1: aggregate the data ourselves, and then we own that data 37 00:02:11,880 --> 00:02:13,600 Speaker 1: and resell it. The reason why I ask because I'm 38 00:02:13,639 --> 00:02:16,960 Speaker 1: thinking about Facebook and the recent data privacy concern issues 39 00:02:17,240 --> 00:02:22,240 Speaker 1: and increasing talk of regulation of the data disclosures. Is 40 00:02:22,240 --> 00:02:25,360 Speaker 1: that going to make your life more difficult or do 41 00:02:25,400 --> 00:02:28,480 Speaker 1: you think that that ship has sailed in the contract 42 00:02:28,520 --> 00:02:33,120 Speaker 1: of people deciding to put their information online for everybody 43 00:02:33,360 --> 00:02:35,799 Speaker 1: in return for getting free access to some of these services. 44 00:02:36,040 --> 00:02:38,600 Speaker 1: I think consumers are more aware about the privacy issues 45 00:02:38,639 --> 00:02:41,000 Speaker 1: now than they ever have been. I think in in 46 00:02:41,040 --> 00:02:44,400 Speaker 1: the past, consumers haven't minded given up their data in 47 00:02:44,400 --> 00:02:47,880 Speaker 1: exchange for free access. But I think now with the 48 00:02:47,960 --> 00:02:53,160 Speaker 1: Equifax and with the UH the Facebook breaches, people are 49 00:02:53,280 --> 00:02:55,639 Speaker 1: very aware of the value of their data. And that's 50 00:02:55,639 --> 00:02:58,880 Speaker 1: why around a year ago, we started working on a 51 00:02:58,880 --> 00:03:01,800 Speaker 1: platform that's going to out consumers to own their own data. 52 00:03:02,080 --> 00:03:04,440 Speaker 1: So you, as a consumer will be able to own 53 00:03:04,480 --> 00:03:08,280 Speaker 1: your own information and then people will access that information 54 00:03:08,320 --> 00:03:11,160 Speaker 1: and you'll get paid for that data. UM it's called 55 00:03:11,200 --> 00:03:15,000 Speaker 1: big Token, so UH big token is a platform. Big 56 00:03:15,040 --> 00:03:17,560 Speaker 1: token dot com is a platform that allows people to 57 00:03:18,360 --> 00:03:22,480 Speaker 1: put their information in validate data, and then as marketers 58 00:03:22,520 --> 00:03:26,480 Speaker 1: want to access that information, they pay to access the data. 59 00:03:26,520 --> 00:03:29,480 Speaker 1: But instead of the money going to the big oracles 60 00:03:29,560 --> 00:03:33,160 Speaker 1: experience axioms of the world, it goes direct to the consumer. 61 00:03:34,000 --> 00:03:36,760 Speaker 1: Let's say Lisa goes to an automobile showroom and she's 62 00:03:36,760 --> 00:03:39,760 Speaker 1: interested in a particular car and decides to take a 63 00:03:39,840 --> 00:03:43,480 Speaker 1: test drive, even goes to an auto show is that 64 00:03:43,640 --> 00:03:48,800 Speaker 1: information can you connect that information with maybe what Lisa 65 00:03:48,840 --> 00:03:52,440 Speaker 1: would do online looking at various automobile products very much. 66 00:03:52,480 --> 00:03:56,200 Speaker 1: So we have a auto vertical, and within our auto vertical, 67 00:03:56,480 --> 00:04:01,160 Speaker 1: we're providing software into the dealership level where if somebody 68 00:04:01,200 --> 00:04:03,000 Speaker 1: comes in and takes a test drive, they put in 69 00:04:03,040 --> 00:04:06,160 Speaker 1: the name, email address, phone number of that consumer. Once 70 00:04:06,200 --> 00:04:09,000 Speaker 1: we have that data, we can pretty much find out 71 00:04:09,040 --> 00:04:11,600 Speaker 1: everything else about the consumer. We can then do a 72 00:04:11,600 --> 00:04:15,520 Speaker 1: cross map between the cell phone the email address, and 73 00:04:15,560 --> 00:04:18,720 Speaker 1: that can help us find your browser. We can find 74 00:04:18,839 --> 00:04:22,559 Speaker 1: multiple devices off of those browsers um and just map 75 00:04:22,600 --> 00:04:24,760 Speaker 1: you in general, and within twenty four hours you can 76 00:04:24,800 --> 00:04:27,200 Speaker 1: start seeing ads for the car that you just tested of. 77 00:04:27,800 --> 00:04:31,040 Speaker 1: I'm really confused because the Facebook results that we just 78 00:04:31,080 --> 00:04:32,960 Speaker 1: got seemed to show that people don't care at all 79 00:04:33,000 --> 00:04:37,000 Speaker 1: about privacy because, uh they showed uh, you know, revenue 80 00:04:37,200 --> 00:04:40,000 Speaker 1: growth that was the most is two thousand fifteen, and 81 00:04:40,160 --> 00:04:43,120 Speaker 1: people seem to be uh flocking to the site regardless 82 00:04:43,120 --> 00:04:46,960 Speaker 1: of any privacy concerns. I'm just wondering, why would anybody 83 00:04:46,560 --> 00:04:51,800 Speaker 1: uh start to go through extra passwords and extra forms, etcetera. 84 00:04:51,839 --> 00:04:54,760 Speaker 1: If they're frankly willing to give away their information and 85 00:04:54,839 --> 00:04:57,279 Speaker 1: data for free, right now because consumers are not aware 86 00:04:57,320 --> 00:05:00,200 Speaker 1: about the amount of money that is being generated off 87 00:05:00,240 --> 00:05:02,120 Speaker 1: of them. How much money per person do you think 88 00:05:02,200 --> 00:05:06,839 Speaker 1: is generated a good consumer living in New York City? Uh? 89 00:05:06,880 --> 00:05:09,080 Speaker 1: And you know you remember, you're being tracked everywhere on 90 00:05:09,080 --> 00:05:12,040 Speaker 1: your phone, So they're tracking you from where you live 91 00:05:12,320 --> 00:05:15,240 Speaker 1: to where you work, So they're watching you from the 92 00:05:15,320 --> 00:05:20,520 Speaker 1: Upper East Side to Bloomberg Studio, and they're tracking everything 93 00:05:20,560 --> 00:05:25,520 Speaker 1: that you're doing, so anywhere anywhere from just on the 94 00:05:25,560 --> 00:05:31,240 Speaker 1: digital advertising side, not the not uh consumer marketing research 95 00:05:31,720 --> 00:05:34,600 Speaker 1: or direct mail or anything like that. Anywhere from two 96 00:05:34,680 --> 00:05:37,320 Speaker 1: hundred to two thousand dollars a month. So it's a 97 00:05:37,320 --> 00:05:39,480 Speaker 1: lot of money. Now, if somebody was going to give 98 00:05:39,520 --> 00:05:41,880 Speaker 1: that money to you, would you go sign up to 99 00:05:41,960 --> 00:05:44,520 Speaker 1: do it? That's why we put big Token dot com 100 00:05:44,600 --> 00:05:47,520 Speaker 1: up and we've had thousands of people sign up to 101 00:05:47,680 --> 00:05:50,120 Speaker 1: for their data. But then what about Amazon or what 102 00:05:50,160 --> 00:05:53,320 Speaker 1: about some of these other companies that can gather this 103 00:05:53,400 --> 00:05:56,880 Speaker 1: for free, They wouldn't then be as willing to pay 104 00:05:57,080 --> 00:06:00,600 Speaker 1: the additional cost to me. Correct, Then you as a 105 00:06:00,640 --> 00:06:05,120 Speaker 1: consumer will start to filter out what you're willing to 106 00:06:05,480 --> 00:06:08,640 Speaker 1: look at. We're going to give you uh browser plug 107 00:06:08,680 --> 00:06:11,279 Speaker 1: ins and tools that are going to help you get 108 00:06:11,400 --> 00:06:14,720 Speaker 1: rid of ads that are not paying to access your information, 109 00:06:16,080 --> 00:06:19,000 Speaker 1: and you might even get a check. You will you. 110 00:06:19,240 --> 00:06:22,320 Speaker 1: I just I have to wonder how much I mean, Amazon, Google, 111 00:06:22,680 --> 00:06:25,160 Speaker 1: these are the Facebook, the data sets that's where they 112 00:06:25,160 --> 00:06:27,360 Speaker 1: live and die. So they've got to be fighting back now. 113 00:06:27,640 --> 00:06:30,080 Speaker 1: I mean, you know, we're at the beginning of this. 114 00:06:30,160 --> 00:06:32,679 Speaker 1: We've been working on it for a year, and uh, 115 00:06:32,800 --> 00:06:36,120 Speaker 1: I think that those companies are about to see big 116 00:06:36,160 --> 00:06:39,839 Speaker 1: competition in this area. They've they've they've owned this data 117 00:06:39,880 --> 00:06:43,080 Speaker 1: set for a long time. Consumers have not fought back 118 00:06:43,400 --> 00:06:45,640 Speaker 1: to own their own data, and now they're going to 119 00:06:45,720 --> 00:06:47,840 Speaker 1: be ready to do that. They they just haven't had 120 00:06:47,880 --> 00:06:50,039 Speaker 1: the tools to be able to do it. They couldn't 121 00:06:50,040 --> 00:06:54,760 Speaker 1: go anywhere, sign up and then start getting getting money. Yeah. Well, um, 122 00:06:55,080 --> 00:06:58,640 Speaker 1: I gotta say I I would love to earn twoth 123 00:06:58,640 --> 00:07:01,880 Speaker 1: asand extras. Um. Chris mcglino, thank you so much for 124 00:07:01,920 --> 00:07:05,479 Speaker 1: joining us. Chris mcgleino, chief executive officer and founder of Sharks, 125 00:07:05,560 --> 00:07:09,640 Speaker 1: a digital marketing and consumer data distribution company which is 126 00:07:09,680 --> 00:07:11,920 Speaker 1: based in Beverly Hills, California. But he decided to come 127 00:07:11,960 --> 00:07:14,280 Speaker 1: to New York to our eleven three, oh Studios. Despite 128 00:07:14,480 --> 00:07:20,560 Speaker 1: the rain and the clouds and the chilly air, the 129 00:07:20,640 --> 00:07:23,160 Speaker 1: leaders of North and South Korea have agreed to pursue 130 00:07:23,240 --> 00:07:26,560 Speaker 1: a peace agreement in historic talks. Here to tell us 131 00:07:26,600 --> 00:07:31,040 Speaker 1: more about this is how Brands Henry Kissinger, Distinguished Professor 132 00:07:31,080 --> 00:07:33,920 Speaker 1: for Global Affairs at the Johns Hopkins University School of 133 00:07:34,120 --> 00:07:38,600 Speaker 1: Advanced International Studies, he joins us from Baltimore. How Brands, 134 00:07:38,600 --> 00:07:41,040 Speaker 1: thank you very much for being with us. What if 135 00:07:41,040 --> 00:07:44,080 Speaker 1: you could just describe what you believe is likely to 136 00:07:44,160 --> 00:07:48,400 Speaker 1: happen next between the leaders of North and South Korea. Well, 137 00:07:48,440 --> 00:07:50,280 Speaker 1: I think what you'll see is that there may be 138 00:07:50,400 --> 00:07:53,840 Speaker 1: some effort to put flesh on the bones of the 139 00:07:53,960 --> 00:07:56,800 Speaker 1: very skeletal agreement that was reached at the summit, which 140 00:07:56,840 --> 00:08:01,000 Speaker 1: was basically aspirational in terms of working toward a formal 141 00:08:01,120 --> 00:08:03,040 Speaker 1: end to the war in the Korean Peninsula and the 142 00:08:03,040 --> 00:08:06,520 Speaker 1: eventual de nuclearization of the peninsula. But those goals are 143 00:08:06,640 --> 00:08:09,400 Speaker 1: quite gauzy right now, and so any next steps would 144 00:08:09,440 --> 00:08:13,400 Speaker 1: have to deal with flushing out the specifics of how 145 00:08:13,400 --> 00:08:16,320 Speaker 1: those goals might be pursued. So how you know there 146 00:08:16,400 --> 00:08:18,200 Speaker 1: we need to whip out the scorecard here, because there 147 00:08:18,200 --> 00:08:21,160 Speaker 1: are a lot of people that are either giving credit 148 00:08:21,240 --> 00:08:25,000 Speaker 1: to President Trump for navigating or pushing Kim John earned 149 00:08:25,000 --> 00:08:27,160 Speaker 1: to this point. People are giving credit to the South 150 00:08:27,200 --> 00:08:30,320 Speaker 1: Korean president. People are giving credit to China, who sort 151 00:08:30,400 --> 00:08:33,400 Speaker 1: of pushed the leaders of North and South Korea to 152 00:08:33,559 --> 00:08:37,439 Speaker 1: this point. In your view, well, really it was the 153 00:08:37,520 --> 00:08:39,920 Speaker 1: leaders of North Korea who pushed the United States and 154 00:08:39,920 --> 00:08:42,320 Speaker 1: South Korea to this point. It was the North Koreans 155 00:08:42,320 --> 00:08:44,720 Speaker 1: who came up with the idea for a meeting between 156 00:08:45,440 --> 00:08:47,920 Speaker 1: Trump and King Young Lum. And one of the really 157 00:08:47,960 --> 00:08:51,920 Speaker 1: difficult analytical points in dealing with this situation is figuring 158 00:08:51,960 --> 00:08:55,600 Speaker 1: out precisely what the North Korean calculus is. There's surely 159 00:08:55,640 --> 00:08:58,840 Speaker 1: a desire to ease the economic pressure from the U 160 00:08:58,960 --> 00:09:01,880 Speaker 1: S sanctions, but there may also be a calculation this 161 00:09:01,960 --> 00:09:04,920 Speaker 1: is simply a smart, tactical way of reducing pressure while 162 00:09:04,920 --> 00:09:08,320 Speaker 1: the North completes its nuclear arsenal. Now, in addition, there 163 00:09:08,360 --> 00:09:12,400 Speaker 1: was a joint statement it's called the Pond John Declaration, 164 00:09:12,520 --> 00:09:16,640 Speaker 1: calling for the restart of reunions of families separated by 165 00:09:16,720 --> 00:09:21,640 Speaker 1: the Korean War. Will that accelerate further agreements? Do you 166 00:09:21,679 --> 00:09:24,080 Speaker 1: think it's useful as an atmospheric and it may lead 167 00:09:24,120 --> 00:09:30,079 Speaker 1: to additional atmospherics in the sense of suspending propaganda broadcasts 168 00:09:30,080 --> 00:09:33,400 Speaker 1: across the border and things like that. It has relatively 169 00:09:33,440 --> 00:09:37,480 Speaker 1: little connection to the more substantive issues at hand, which 170 00:09:37,520 --> 00:09:40,080 Speaker 1: would be the nuclear program and the state of war 171 00:09:40,160 --> 00:09:42,840 Speaker 1: that still exists between the North and the South, but 172 00:09:42,920 --> 00:09:45,520 Speaker 1: it is perhaps hopeful as a sign of of a 173 00:09:45,600 --> 00:09:49,080 Speaker 1: broader thawing between the two countries. You know, Professor, One 174 00:09:49,120 --> 00:09:51,360 Speaker 1: thing that that struck me, aside from the menu, the 175 00:09:51,440 --> 00:09:55,440 Speaker 1: highly symbolic menu of the meeting that took place between 176 00:09:55,440 --> 00:09:58,200 Speaker 1: the North and South Korean leaders, it struck me that 177 00:09:58,400 --> 00:10:02,840 Speaker 1: the whole procession was not broadcast on North Korean television. 178 00:10:02,880 --> 00:10:04,720 Speaker 1: I know this is a small point, but to me, 179 00:10:04,800 --> 00:10:07,679 Speaker 1: it indicated that there was not an opening up of 180 00:10:07,800 --> 00:10:11,320 Speaker 1: North Korea. Was this significant to you and kind of 181 00:10:11,320 --> 00:10:13,640 Speaker 1: what can we look at going forward to know whether 182 00:10:13,720 --> 00:10:17,800 Speaker 1: this is in good faith or not. I think looking 183 00:10:17,840 --> 00:10:20,439 Speaker 1: for an opening up of the North Korean political system 184 00:10:21,400 --> 00:10:25,160 Speaker 1: is probably unrealistic at this point. Uh. The Kim family 185 00:10:25,200 --> 00:10:28,120 Speaker 1: regime is interested first and foremost in its own survival, 186 00:10:28,160 --> 00:10:30,640 Speaker 1: and I think it understands any meaningful opening up of 187 00:10:30,640 --> 00:10:34,080 Speaker 1: the political system would would jeopardize that, and so everything 188 00:10:34,120 --> 00:10:37,080 Speaker 1: that the regime is doing is a tactical move to 189 00:10:37,240 --> 00:10:40,880 Speaker 1: secure its own power. So any opening up of the 190 00:10:40,920 --> 00:10:44,120 Speaker 1: regime would presumably be something that would come much much 191 00:10:44,160 --> 00:10:46,760 Speaker 1: farther down the road and would probably be almost against 192 00:10:46,760 --> 00:10:49,480 Speaker 1: the will of the Kim family. If there is an 193 00:10:49,520 --> 00:10:52,960 Speaker 1: agreement that is reached, what would this do to relations 194 00:10:52,960 --> 00:10:56,680 Speaker 1: between the United States and China, Well, it all depends 195 00:10:56,679 --> 00:10:59,200 Speaker 1: on what the nature of the agreement is. I think 196 00:11:00,080 --> 00:11:02,480 Speaker 1: we're having a little bit of whiplash right now because 197 00:11:02,640 --> 00:11:05,160 Speaker 1: for about a year, the fear of most countries in 198 00:11:05,200 --> 00:11:07,200 Speaker 1: the region and around the world was that the Trump 199 00:11:07,200 --> 00:11:09,480 Speaker 1: administration was going to get the United States into a 200 00:11:09,559 --> 00:11:12,480 Speaker 1: nuclear war with North Korea. I think the fear now 201 00:11:12,640 --> 00:11:15,680 Speaker 1: is that the United States might conclude a deal that 202 00:11:15,720 --> 00:11:18,880 Speaker 1: would have actually be too advantageous to North Korea. And 203 00:11:18,920 --> 00:11:22,400 Speaker 1: so the critical elements from the United States decide will 204 00:11:22,440 --> 00:11:24,640 Speaker 1: to be in will be to ensure that any deal 205 00:11:24,679 --> 00:11:27,640 Speaker 1: with the North doesn't prejudice the US alliance with South 206 00:11:27,720 --> 00:11:32,240 Speaker 1: Korea or the broader US posture in the region. China 207 00:11:32,280 --> 00:11:34,320 Speaker 1: obviously would like to see a different sort of deal, 208 00:11:34,400 --> 00:11:37,240 Speaker 1: one that would lead to a retraction of American presence 209 00:11:37,440 --> 00:11:41,240 Speaker 1: in Northeast Asia. So can you put this into context 210 00:11:41,440 --> 00:11:46,520 Speaker 1: of why then this is so important? Well, this is 211 00:11:46,679 --> 00:11:49,480 Speaker 1: the single this is the crisis spot that is most 212 00:11:49,559 --> 00:11:53,440 Speaker 1: likely to lead to nuclear war. Right now, any conflict 213 00:11:53,480 --> 00:11:56,480 Speaker 1: between the United States and North Korea would be of 214 00:11:56,600 --> 00:11:59,679 Speaker 1: unbelievable lethality even if it did not cross the nuclear 215 00:11:59,720 --> 00:12:02,200 Speaker 1: thresh fold. But from everything we know about North Korean 216 00:12:02,800 --> 00:12:06,240 Speaker 1: military doctrine, it quite easily could escalate into the nuclear realm. 217 00:12:06,320 --> 00:12:09,320 Speaker 1: And so if it is possible to negotiate some sort 218 00:12:09,320 --> 00:12:11,520 Speaker 1: of agreement that would lower tensions, that would be a 219 00:12:11,520 --> 00:12:14,240 Speaker 1: good thing in and of itself. If it's possible to 220 00:12:14,280 --> 00:12:16,680 Speaker 1: do so in a way that leads to the rolling 221 00:12:16,720 --> 00:12:19,160 Speaker 1: back of the North Korean nuclear arsenal, that would also 222 00:12:19,200 --> 00:12:22,199 Speaker 1: be very useful in terms of reducing the nuclear threat 223 00:12:22,200 --> 00:12:24,680 Speaker 1: both to the United States and its allies. That that's said, 224 00:12:24,720 --> 00:12:27,559 Speaker 1: I'm still somewhat skeptical that this is ultimately what will 225 00:12:27,559 --> 00:12:30,840 Speaker 1: come out of this process. Can the United States, Japan, 226 00:12:31,080 --> 00:12:35,120 Speaker 1: and our allies live with a nuclear armed North Korea? 227 00:12:35,679 --> 00:12:37,680 Speaker 1: We would prefer not to, but yes, I think we 228 00:12:37,760 --> 00:12:41,440 Speaker 1: can live with it. If if the alternative were, for instance, 229 00:12:41,840 --> 00:12:44,920 Speaker 1: launching a preventive war to prevent that. The United States 230 00:12:44,920 --> 00:12:47,480 Speaker 1: has confronted the sort of problem for we worried very 231 00:12:47,559 --> 00:12:49,280 Speaker 1: much about what it would mean to face a nuclear 232 00:12:49,320 --> 00:12:52,160 Speaker 1: Soviet Union or a nuclear China during the Cold War, 233 00:12:52,200 --> 00:12:54,920 Speaker 1: and in both cases we were ultimately able to live 234 00:12:54,920 --> 00:12:57,400 Speaker 1: with it, albeit in a very dangerous intense way. And 235 00:12:57,440 --> 00:12:59,040 Speaker 1: I think if we were put to it, we could 236 00:12:59,080 --> 00:13:01,920 Speaker 1: probably do that again. So I want to I want 237 00:13:01,920 --> 00:13:03,719 Speaker 1: to go back to the menu, since it was much 238 00:13:03,800 --> 00:13:07,280 Speaker 1: parsed over and in mouth watering to read about what 239 00:13:07,360 --> 00:13:10,440 Speaker 1: they ate. But what was interesting to me was that 240 00:13:10,520 --> 00:13:14,960 Speaker 1: the menu anger Japan again, the menu that the for 241 00:13:15,000 --> 00:13:18,720 Speaker 1: the feast that North Korean leader and South Korean leaders eight. 242 00:13:19,360 --> 00:13:23,440 Speaker 1: What do you make of that? I don't make a 243 00:13:23,480 --> 00:13:25,280 Speaker 1: lot of it. I think this is probably about the 244 00:13:25,320 --> 00:13:28,160 Speaker 1: seventeenth on the list of things that's most important in 245 00:13:28,280 --> 00:13:33,199 Speaker 1: terms of assessing the prospects of the negotiating process, and 246 00:13:33,200 --> 00:13:35,360 Speaker 1: and so I I you know, this is a region 247 00:13:35,400 --> 00:13:38,520 Speaker 1: where history looms very large, and so there are constantly 248 00:13:39,240 --> 00:13:43,240 Speaker 1: seemingly small issues that are causing frictions between uh, not 249 00:13:43,360 --> 00:13:45,719 Speaker 1: just the US, and it's adversarious, but sometimes between US 250 00:13:45,760 --> 00:13:48,520 Speaker 1: allies and sometimes between Japan and North Korea, and so 251 00:13:48,559 --> 00:13:52,080 Speaker 1: I I think that is is noteworthy and perhaps worth reporting, 252 00:13:52,120 --> 00:13:54,520 Speaker 1: but but probably relatively low on the list of things 253 00:13:54,559 --> 00:13:57,800 Speaker 1: that will determine the success or failure of this initiative. 254 00:13:58,040 --> 00:14:00,920 Speaker 1: So South Korea's shrimp surprise for Donald Trump last year 255 00:14:00,920 --> 00:14:03,600 Speaker 1: and the dessert this time around not the biggest thing 256 00:14:03,679 --> 00:14:05,160 Speaker 1: on your list, How brands, thank you so much for 257 00:14:05,240 --> 00:14:08,160 Speaker 1: joining us, How Brands. Henriette Kisinger, Distinguished professor at Johns 258 00:14:08,200 --> 00:14:13,040 Speaker 1: Hopkins University and a Bloomberg View columnist. Definitely, some of 259 00:14:13,040 --> 00:14:17,400 Speaker 1: the imagery coming out of the Korean Peninsula is really striking, 260 00:14:17,559 --> 00:14:21,080 Speaker 1: of the leaders holding hands, taking one step into the north, 261 00:14:21,280 --> 00:14:24,240 Speaker 1: one step into the south, marking the end to this 262 00:14:24,400 --> 00:14:27,960 Speaker 1: what is it, seven decade long conflict that has been 263 00:14:28,360 --> 00:14:32,160 Speaker 1: keeping a lot of families apart on the Korean peninsula. Yes, 264 00:14:32,200 --> 00:14:35,359 Speaker 1: and that's set to change, at least according to this communication, 265 00:14:35,480 --> 00:14:38,760 Speaker 1: although unclear whether those families will in fact get reunited 266 00:14:38,800 --> 00:14:46,480 Speaker 1: anytime soon. Big tech is driving the train in US 267 00:14:46,600 --> 00:14:49,200 Speaker 1: equity markets these days. And to talk a little bit 268 00:14:49,200 --> 00:14:51,200 Speaker 1: about what we've seen out of earning so far as 269 00:14:51,240 --> 00:14:54,080 Speaker 1: well as what to expect, is Michael Scanlon, portfolio manager 270 00:14:54,120 --> 00:14:58,440 Speaker 1: at Manu Life Asset Management in Boston. He oversees, among 271 00:14:58,520 --> 00:15:01,840 Speaker 1: other funds, the John Hand Balanced Fund, which has about 272 00:15:02,240 --> 00:15:04,520 Speaker 1: nearly two billion dollars of assets. And Michael, I was 273 00:15:04,560 --> 00:15:07,960 Speaker 1: looking and four of your top five biggest holdings in 274 00:15:07,960 --> 00:15:12,920 Speaker 1: that fund Alphabet, Apple, Amazon, and Microsoft. As a result 275 00:15:13,080 --> 00:15:16,240 Speaker 1: of the earnings that we have seen so far, have 276 00:15:16,360 --> 00:15:19,840 Speaker 1: you decided to either add to your current holdings of 277 00:15:19,880 --> 00:15:22,600 Speaker 1: any of those companies or pair some of the some 278 00:15:22,720 --> 00:15:25,840 Speaker 1: of the assets. Well, good morning and thanks for having me. 279 00:15:25,920 --> 00:15:28,120 Speaker 1: So I think when you look at this earnings period, 280 00:15:28,160 --> 00:15:29,960 Speaker 1: you know, there's obviously we had a little bit of 281 00:15:30,000 --> 00:15:33,200 Speaker 1: disappointment out of Google and then essentially very strong results 282 00:15:33,200 --> 00:15:35,320 Speaker 1: out of the rest of the players there. I think 283 00:15:35,440 --> 00:15:37,760 Speaker 1: when you look at the text based you know, whether 284 00:15:37,760 --> 00:15:40,880 Speaker 1: it's these these newer platform companies like a Google or 285 00:15:40,920 --> 00:15:43,480 Speaker 1: a Facebook, I mean, they continue to have these enormous 286 00:15:43,480 --> 00:15:46,240 Speaker 1: secular tail winds. And I think it's also interesting if 287 00:15:46,240 --> 00:15:48,360 Speaker 1: you look at it some of these more what you 288 00:15:48,360 --> 00:15:51,800 Speaker 1: would associate with legacy I T names like Microsoft or Cisco. 289 00:15:52,200 --> 00:15:54,920 Speaker 1: You know, those companies are obviously are also doing quite 290 00:15:55,000 --> 00:15:57,360 Speaker 1: well right now. Has they're been able to manage this 291 00:15:57,440 --> 00:16:00,680 Speaker 1: transition to more of a cloud based can shooting versus 292 00:16:00,760 --> 00:16:04,480 Speaker 1: on premise type systems. Well, Michael, does this mean that 293 00:16:04,520 --> 00:16:07,040 Speaker 1: you wouldn't invest really new money in a technology company 294 00:16:07,120 --> 00:16:10,680 Speaker 1: unless it had a cloud offering? Well, we you know 295 00:16:10,760 --> 00:16:12,680 Speaker 1: that has been a big part of our holdings is 296 00:16:12,720 --> 00:16:14,520 Speaker 1: that you do want to have these companies that are 297 00:16:14,520 --> 00:16:17,200 Speaker 1: aligned with that themes are else you're fighting an enormous headwinds. 298 00:16:17,240 --> 00:16:19,320 Speaker 1: I mean, one name out there that's been struggling quite 299 00:16:19,320 --> 00:16:20,920 Speaker 1: a bit, as Oracle, that's not a name that we 300 00:16:20,960 --> 00:16:23,600 Speaker 1: own in our portfolio, and that's the name where when 301 00:16:23,680 --> 00:16:25,360 Speaker 1: you look at their cloud business, I mean, they're just 302 00:16:25,360 --> 00:16:28,400 Speaker 1: getting laughed by everybody else. So that that that would 303 00:16:28,440 --> 00:16:30,880 Speaker 1: be a tough space to get invested in today. But Michael, 304 00:16:30,920 --> 00:16:32,880 Speaker 1: the reason why I asked is because when we talked 305 00:16:32,960 --> 00:16:35,920 Speaker 1: to a lot of investment managers and we asked them, 306 00:16:36,000 --> 00:16:39,240 Speaker 1: you know when most last time that you rearranged your portfolio, 307 00:16:39,240 --> 00:16:41,000 Speaker 1: they say, actually, we've held it the same for about 308 00:16:41,000 --> 00:16:43,040 Speaker 1: a year. I'm wondering, is it the same with you 309 00:16:43,200 --> 00:16:45,240 Speaker 1: or you know, do you look at these earnings and 310 00:16:45,240 --> 00:16:48,440 Speaker 1: then decide, you know what, uh, Amazon seems like they're 311 00:16:48,560 --> 00:16:52,120 Speaker 1: super solid, let's add more there, and you know, what Apple, 312 00:16:52,160 --> 00:16:55,000 Speaker 1: we're a little bit concerned about the end of the superphone, 313 00:16:55,240 --> 00:16:57,800 Speaker 1: of the supercycle of the smartphones. We're going to pair 314 00:16:57,880 --> 00:17:00,720 Speaker 1: back there. Are you doing any of those calculatations right now? 315 00:17:01,360 --> 00:17:03,080 Speaker 1: So that's a fair question. I mean, that's part of 316 00:17:03,080 --> 00:17:05,360 Speaker 1: managing a portfolio as you get these names that will 317 00:17:05,400 --> 00:17:08,440 Speaker 1: bounce hard after earnings, or they might sell off hard 318 00:17:08,480 --> 00:17:12,119 Speaker 1: after earnings. And maybe that doesn't justify exiting or entering 319 00:17:12,680 --> 00:17:15,480 Speaker 1: new positions, but what you do is trade your names 320 00:17:15,560 --> 00:17:17,720 Speaker 1: up and down in terms of the weight of the portfolio. 321 00:17:18,200 --> 00:17:20,199 Speaker 1: You know, you look at something like Apple over the 322 00:17:20,280 --> 00:17:22,919 Speaker 1: last couple of years, you know that stock has been 323 00:17:23,000 --> 00:17:25,960 Speaker 1: meaningfully higher than it has been today. Uh, And if 324 00:17:25,960 --> 00:17:27,760 Speaker 1: you look at the weight of our portfolio, it has 325 00:17:27,800 --> 00:17:29,760 Speaker 1: moved around in terms of the weight of the portfolio 326 00:17:29,800 --> 00:17:34,480 Speaker 1: over the last twelve months. Michael, in managing the John 327 00:17:34,520 --> 00:17:39,520 Speaker 1: Hancock Balanced Portfolio as well as the Balanced Fund, what 328 00:17:39,640 --> 00:17:42,879 Speaker 1: would you like to see happen in terms of rebalancing 329 00:17:42,920 --> 00:17:46,119 Speaker 1: Because some of the names in the fund have performed 330 00:17:46,200 --> 00:17:49,959 Speaker 1: so well, You've got to maintain a balance so that 331 00:17:50,040 --> 00:17:52,720 Speaker 1: you don't end up with these outsized positions that could 332 00:17:52,760 --> 00:17:57,440 Speaker 1: come back and bite you. Yeah, So we initiated an 333 00:17:57,480 --> 00:18:00,880 Speaker 1: overweight position and energy UH out of the second half 334 00:18:00,920 --> 00:18:02,800 Speaker 1: of last year, and that proved to be a little 335 00:18:02,800 --> 00:18:06,439 Speaker 1: bit early. Yet in the last month or so, it 336 00:18:06,480 --> 00:18:09,320 Speaker 1: seems like that that positioning is starting to come around 337 00:18:09,320 --> 00:18:11,639 Speaker 1: for us. I've had some really outsized winners there in 338 00:18:11,720 --> 00:18:15,360 Speaker 1: terms of names like Conico Phillips or names like sun 339 00:18:15,440 --> 00:18:17,760 Speaker 1: Core and Shell. So those names have been doing quite 340 00:18:17,760 --> 00:18:19,560 Speaker 1: well for US, and I still think that, you know, 341 00:18:19,600 --> 00:18:21,480 Speaker 1: even though they've had a big, meaningful bounce in the 342 00:18:21,560 --> 00:18:23,840 Speaker 1: last couple of months here, I do still think there's 343 00:18:23,880 --> 00:18:25,760 Speaker 1: a long runway there. So when you look at the 344 00:18:25,840 --> 00:18:30,639 Speaker 1: SMP five roughly SMP in the tech sector UH at 345 00:18:30,680 --> 00:18:33,159 Speaker 1: kind of a mid single digit six or seven percent, 346 00:18:33,480 --> 00:18:35,119 Speaker 1: I do think that you're going to see energy to 347 00:18:35,160 --> 00:18:36,800 Speaker 1: continue to work here through the end of the year. 348 00:18:37,160 --> 00:18:38,760 Speaker 1: You know, Michael, I'd love to just zoom out a 349 00:18:38,760 --> 00:18:41,439 Speaker 1: little bit and get your feeling on what the narrative 350 00:18:41,480 --> 00:18:45,040 Speaker 1: should be for this earning season. By some measures, it's 351 00:18:45,080 --> 00:18:49,440 Speaker 1: the biggest volume of earnings beats ever. By others, there 352 00:18:49,480 --> 00:18:52,000 Speaker 1: are huge warning signs that this is perhaps as good 353 00:18:52,000 --> 00:18:55,000 Speaker 1: as it gets. Where do you fall on the different 354 00:18:55,080 --> 00:18:58,600 Speaker 1: narratives that are competing for attention right now. Yeah, it's funny. 355 00:18:58,640 --> 00:19:02,399 Speaker 1: I mean if expectations were very high going into this 356 00:19:02,480 --> 00:19:04,760 Speaker 1: earnings period, but yet if you look at the results, 357 00:19:04,760 --> 00:19:06,520 Speaker 1: I mean, they've blown away the results. I think the 358 00:19:06,560 --> 00:19:08,840 Speaker 1: earnings are. You know, it's been like an eight percent 359 00:19:09,040 --> 00:19:12,000 Speaker 1: surprise on the consensus number this quarter thus far. I 360 00:19:12,000 --> 00:19:14,520 Speaker 1: believe it's the number. And you know, you look at 361 00:19:14,560 --> 00:19:16,000 Speaker 1: some of the things that are going on that you 362 00:19:16,040 --> 00:19:18,120 Speaker 1: could frame as a negative right now, with the ten 363 00:19:18,200 --> 00:19:22,120 Speaker 1: year yield crossing or hovering around three, an oil up meaningfully, 364 00:19:22,160 --> 00:19:25,280 Speaker 1: which is attacks on the U S consumer essentially. Uh. 365 00:19:25,320 --> 00:19:27,199 Speaker 1: You know, I think somebody said it best the other 366 00:19:27,280 --> 00:19:29,000 Speaker 1: day when they said we're all looking for a silver 367 00:19:29,080 --> 00:19:31,840 Speaker 1: bullet and exactly why the market has been weaker than 368 00:19:31,880 --> 00:19:34,000 Speaker 1: would expect. But you know, at the end of the day, 369 00:19:34,000 --> 00:19:36,160 Speaker 1: it's earnings that drive markets, and you might have these 370 00:19:36,200 --> 00:19:38,760 Speaker 1: short periods of disconnect where the market doesn't keep up 371 00:19:38,800 --> 00:19:41,520 Speaker 1: with earnings growth. But I think the SMP five hundred 372 00:19:41,520 --> 00:19:43,359 Speaker 1: here at you know, sixteen and a half, a little 373 00:19:43,359 --> 00:19:46,480 Speaker 1: bit of seventeen times earnings, I think it's very attractive 374 00:19:46,520 --> 00:19:48,119 Speaker 1: and by the end of the year, I do expect 375 00:19:48,160 --> 00:19:50,840 Speaker 1: the market's going to finish higher from here. Michael, you 376 00:19:50,840 --> 00:19:55,720 Speaker 1: mentioned energy, what about other commodities noted investments maybe in 377 00:19:55,800 --> 00:20:01,159 Speaker 1: countries such as Australia. Yeah, so outside of energy, you know, 378 00:20:01,240 --> 00:20:05,000 Speaker 1: we do have a small position in Franco, so we 379 00:20:05,040 --> 00:20:07,640 Speaker 1: have some exposure to gold. Uh. You know, I think 380 00:20:07,720 --> 00:20:09,880 Speaker 1: when you look at the commodity space really right now, 381 00:20:09,920 --> 00:20:12,239 Speaker 1: our focus has been on oil and names that are 382 00:20:12,240 --> 00:20:15,760 Speaker 1: more associated with it because the disconnects between what the 383 00:20:15,760 --> 00:20:19,080 Speaker 1: commodity has done since last summer versus what the stock 384 00:20:19,119 --> 00:20:21,040 Speaker 1: prices have done, and we just feel like that that's 385 00:20:21,160 --> 00:20:23,880 Speaker 1: that's offering us the best risk reward right now. What's 386 00:20:23,920 --> 00:20:28,560 Speaker 1: the most contrarian bet right now? Most contrarian bet right now? 387 00:20:28,600 --> 00:20:31,800 Speaker 1: I guess in Starbucks is a name which we've owned 388 00:20:31,800 --> 00:20:35,520 Speaker 1: in the portfolio for over a year now, probably eighteen 389 00:20:35,560 --> 00:20:37,600 Speaker 1: months or so, and that's the name that reported earnings 390 00:20:37,680 --> 00:20:39,960 Speaker 1: last night. That's the name that continues to be out 391 00:20:40,000 --> 00:20:42,400 Speaker 1: of favor with investors. I do think when you listen 392 00:20:42,440 --> 00:20:45,080 Speaker 1: to the call last night, there was some things that 393 00:20:45,119 --> 00:20:48,600 Speaker 1: a bowl could continue to be positioned around, and that 394 00:20:48,680 --> 00:20:50,560 Speaker 1: the last two months of the first quarter they had 395 00:20:50,600 --> 00:20:53,280 Speaker 1: north of a three percent comp in the US. You know, 396 00:20:53,320 --> 00:20:55,000 Speaker 1: as we look forward through the rest of the year, 397 00:20:55,040 --> 00:20:56,919 Speaker 1: April might be a bit bumpy because it is a 398 00:20:56,920 --> 00:21:00,320 Speaker 1: difficult comp with the unicorn frappuccino that they had year. 399 00:21:00,920 --> 00:21:02,760 Speaker 1: But I think that stock has been very out of 400 00:21:02,800 --> 00:21:05,080 Speaker 1: favor of the multiple is very very compressed to where 401 00:21:05,080 --> 00:21:08,240 Speaker 1: it's been, and obviously it's still a fantastic brand. Shares 402 00:21:08,280 --> 00:21:10,280 Speaker 1: of Starbucks down a little bit more than one and 403 00:21:10,280 --> 00:21:13,520 Speaker 1: a half percent right now. Michael, what happens if a 404 00:21:13,600 --> 00:21:16,160 Speaker 1: ten year stays at three percent? Does that change your 405 00:21:16,200 --> 00:21:20,360 Speaker 1: investment thesis? It doesn't. Uh. You know, it's funny when 406 00:21:20,920 --> 00:21:23,359 Speaker 1: it's obviously a big psychological factor when you get the 407 00:21:23,400 --> 00:21:25,800 Speaker 1: ten year yield up to a big round number like 408 00:21:25,840 --> 00:21:28,199 Speaker 1: three percent that we haven't seen in a while. But 409 00:21:28,480 --> 00:21:30,600 Speaker 1: as I speak to management teams that we own in 410 00:21:30,640 --> 00:21:33,840 Speaker 1: the portfolio or perspective companies that we're thinking about investing, 411 00:21:34,160 --> 00:21:36,240 Speaker 1: I don't hear any of them coming back and saying, well, 412 00:21:36,280 --> 00:21:38,840 Speaker 1: if if the yield hits on the ten year hits three, 413 00:21:38,840 --> 00:21:41,720 Speaker 1: we're doing something different. I mean, it's this is really 414 00:21:41,760 --> 00:21:44,680 Speaker 1: an environment where stock picking matters a lot more going 415 00:21:44,720 --> 00:21:47,000 Speaker 1: forward than it has the last couple of years, and 416 00:21:47,040 --> 00:21:50,600 Speaker 1: you just need to be focused on those companies specific stories. Again, 417 00:21:50,640 --> 00:21:52,920 Speaker 1: I think three percent is more of a psychological number 418 00:21:52,920 --> 00:21:55,159 Speaker 1: more than anything. Thanks very much for being with us. 419 00:21:55,200 --> 00:21:59,600 Speaker 1: Michael Scanlon, Managing Director, portfolio manager, Manual Life Asset Management 420 00:21:59,600 --> 00:22:01,920 Speaker 1: based in Boston, of course, home to Bloomberg One. I 421 00:22:01,920 --> 00:22:04,800 Speaker 1: was six on Boston, Newburyport and thirty and Metro West 422 00:22:04,880 --> 00:22:07,560 Speaker 1: and the South Shore, helping to manage the John Hancock 423 00:22:07,640 --> 00:22:12,240 Speaker 1: Balance Fund and the balanced portfolio. Total assets. He's helping 424 00:22:12,320 --> 00:22:17,400 Speaker 1: be responsible for more than well nearly two billion dollars. 425 00:22:17,840 --> 00:22:20,240 Speaker 1: We've got much more coming up on Bloomberg Market time 426 00:22:20,280 --> 00:22:24,159 Speaker 1: pim Fox my co host Lisa A. Bramwoods. This is Bloomberg. 427 00:22:27,200 --> 00:22:32,400 Speaker 1: XN posted its weakest first quarter of outputs since Chevron, 428 00:22:32,600 --> 00:22:36,800 Speaker 1: the other hand, surpassed every first quarter profit and production 429 00:22:37,080 --> 00:22:40,920 Speaker 1: production estimate out there. As a response, Exon shares down 430 00:22:41,119 --> 00:22:45,200 Speaker 1: three point four percent, while Chevron shares up more than 431 00:22:45,359 --> 00:22:48,360 Speaker 1: one percent. Joining us to understand the tale of two 432 00:22:48,560 --> 00:22:51,800 Speaker 1: gas giants, Fernando Valet, He's oil and gas analyst with 433 00:22:51,840 --> 00:22:55,480 Speaker 1: Bloomberg Intelligence, joining us here in our eleven three oh studios. Fernando, 434 00:22:55,560 --> 00:22:58,800 Speaker 1: can you explain what Excen did wrong and what Chevron 435 00:22:58,840 --> 00:23:02,320 Speaker 1: did right? Sure, hi, guys, good to be here. I 436 00:23:02,359 --> 00:23:05,399 Speaker 1: think there are two key issues with x On. The 437 00:23:05,440 --> 00:23:09,600 Speaker 1: first is you had some uh time timely issues. You 438 00:23:09,680 --> 00:23:12,440 Speaker 1: had the earthquake in Point New Guinea that impacted production. 439 00:23:12,920 --> 00:23:16,199 Speaker 1: You had higher oil prices actually takes some production away 440 00:23:16,840 --> 00:23:20,080 Speaker 1: because you have a production sharing contracts where higher prices 441 00:23:20,119 --> 00:23:24,040 Speaker 1: actually decrease your entitlement volumes. And then part of it 442 00:23:24,080 --> 00:23:26,840 Speaker 1: is just the investment profile. I mean x Son had 443 00:23:26,920 --> 00:23:30,920 Speaker 1: been cartailing investments since the oil price crisis. They cut 444 00:23:31,000 --> 00:23:34,080 Speaker 1: their capex in twent billion dollars, and I think what 445 00:23:34,200 --> 00:23:36,480 Speaker 1: the new CEO has recognized is that that is not 446 00:23:36,520 --> 00:23:40,359 Speaker 1: a sustainable strategy UH and they're they're actually now raising 447 00:23:40,400 --> 00:23:44,120 Speaker 1: their capex the thirty billion dollars going forward, which is why, 448 00:23:44,320 --> 00:23:47,560 Speaker 1: for example, they haven't returned to the buybacks Chevron. On 449 00:23:47,600 --> 00:23:49,800 Speaker 1: the other hand, they had a couple of major projects 450 00:23:49,800 --> 00:23:52,240 Speaker 1: that they've been UH funding for a very long time 451 00:23:52,320 --> 00:23:55,600 Speaker 1: that have finally started to come on stream. Gorgon Look 452 00:23:55,600 --> 00:23:59,600 Speaker 1: of Financial Gas in Australia, wheat Stone also loqu of 453 00:23:59,640 --> 00:24:02,520 Speaker 1: Finance or Gas project in Australia. Both of those projects 454 00:24:02,560 --> 00:24:05,800 Speaker 1: started up in seventeen and they've been ramping and they've 455 00:24:05,800 --> 00:24:08,399 Speaker 1: been a major contributor to both production and the earning 456 00:24:08,440 --> 00:24:13,879 Speaker 1: speed for not the percentage of production that is UH 457 00:24:14,000 --> 00:24:17,399 Speaker 1: that is done by large the large oil companies like 458 00:24:17,640 --> 00:24:19,480 Speaker 1: x On Mobile like share and isn't that going down? 459 00:24:20,359 --> 00:24:24,119 Speaker 1: It was shale was definitely taking UH market share in 460 00:24:24,200 --> 00:24:28,679 Speaker 1: the global oil market. But as your production, as I mentioned, 461 00:24:28,680 --> 00:24:30,480 Speaker 1: a lot of these projects that were funded in the 462 00:24:30,640 --> 00:24:34,720 Speaker 1: twenty uh ten period and they're now coming to fruition, 463 00:24:35,040 --> 00:24:38,960 Speaker 1: they're actually going to help big oil recapture some market share. UH. 464 00:24:39,520 --> 00:24:42,199 Speaker 1: Who's actually seating market share in this time in the 465 00:24:42,200 --> 00:24:45,840 Speaker 1: cycle is OPEC, As you had UH, Saudi Arabia curtail 466 00:24:45,880 --> 00:24:50,080 Speaker 1: that production, Venezuela falling UH and also non US no 467 00:24:50,080 --> 00:24:52,840 Speaker 1: non OPEC. So you had your Columbia as your China's, 468 00:24:53,040 --> 00:24:56,600 Speaker 1: Mexico's or productions going down because these oil prices have 469 00:24:56,720 --> 00:25:00,199 Speaker 1: forced them to cut investments and their aging fields are 470 00:25:00,240 --> 00:25:04,080 Speaker 1: actually going down in production very significantly. Is that why 471 00:25:04,600 --> 00:25:07,600 Speaker 1: investors aren't necessarily interested in the stocks? Because if you're 472 00:25:07,600 --> 00:25:09,600 Speaker 1: not giving back the money to the shareholders, and other 473 00:25:09,640 --> 00:25:12,240 Speaker 1: companies are like Conico Phillips doing a share buy back, 474 00:25:13,240 --> 00:25:15,080 Speaker 1: why would you buy the shares of companies that aren't 475 00:25:15,119 --> 00:25:18,360 Speaker 1: going to reward the shareholder. I think that's that's very 476 00:25:18,359 --> 00:25:20,959 Speaker 1: fair in the short term. I think though, when you 477 00:25:21,000 --> 00:25:24,080 Speaker 1: look at what ex One is doing, there's a recognition 478 00:25:24,119 --> 00:25:27,520 Speaker 1: that their portfolio can't compete with shale, and that's why 479 00:25:27,520 --> 00:25:30,440 Speaker 1: they've gone out there and they've bought UH more, papoint, 480 00:25:30,440 --> 00:25:34,840 Speaker 1: New Guinea, more, Brazilian pre salts, uh they bought Permian assets. 481 00:25:34,960 --> 00:25:37,760 Speaker 1: And so if you look at all the five pillars 482 00:25:37,760 --> 00:25:40,399 Speaker 1: at the outlined in March, all those five pillars have 483 00:25:40,440 --> 00:25:45,159 Speaker 1: been acquired or discovered since their old investments or x 484 00:25:45,240 --> 00:25:48,520 Speaker 1: t O s your Russian oil and gas, your Canadian 485 00:25:48,560 --> 00:25:51,639 Speaker 1: oil sands day don't work in this world anymore. So 486 00:25:51,800 --> 00:25:54,359 Speaker 1: you need to go out and revamp. And it's a 487 00:25:54,359 --> 00:25:57,720 Speaker 1: painful period of recognition, but it's something that I think 488 00:25:57,720 --> 00:26:00,800 Speaker 1: it's necessary for you to compete long term, Irman, and 489 00:26:00,960 --> 00:26:03,879 Speaker 1: you're becoming a going concern. You know, one thing that 490 00:26:03,920 --> 00:26:06,359 Speaker 1: we were talking about before the segment, you were noting 491 00:26:06,640 --> 00:26:08,560 Speaker 1: that it has to do with the composition of the 492 00:26:08,640 --> 00:26:12,160 Speaker 1: underlying assets between Exon and Chevron. Exxon holds about fifty 493 00:26:12,480 --> 00:26:17,320 Speaker 1: of its assets as natural gas produced producing UH utilities, 494 00:26:17,400 --> 00:26:22,640 Speaker 1: whereas Chevron focuses more on oil. Brent crude rose substantially 495 00:26:22,680 --> 00:26:25,639 Speaker 1: the first quarter, whereas natural gas actually declined if you 496 00:26:25,680 --> 00:26:28,719 Speaker 1: look at prices and just wondering has Exon talked at 497 00:26:28,720 --> 00:26:32,879 Speaker 1: all about increasing its exposure to crude or sort of 498 00:26:32,960 --> 00:26:35,919 Speaker 1: changing the mix of its business at all. Yeah, that's something. 499 00:26:36,240 --> 00:26:38,520 Speaker 1: Those five pillars when you look at it, uh, A 500 00:26:38,560 --> 00:26:41,480 Speaker 1: lot of it is uh deep water so Guiana and 501 00:26:41,480 --> 00:26:44,959 Speaker 1: Brazil deep water oil. Uh. And then the other two 502 00:26:45,000 --> 00:26:50,320 Speaker 1: major projects are um Lique Financial Gas which internationally which 503 00:26:50,320 --> 00:26:53,440 Speaker 1: are again oil linked, so they'll they'll help that mix. 504 00:26:53,520 --> 00:26:56,880 Speaker 1: And then the Permian. Uh. So those five pillars will 505 00:26:57,320 --> 00:27:01,920 Speaker 1: definitely change the pricing from being more US gas linked 506 00:27:02,160 --> 00:27:05,600 Speaker 1: into more international pricing and oil and that should help 507 00:27:05,640 --> 00:27:09,679 Speaker 1: their resilience because as you guys probably know, the Marcellist 508 00:27:09,680 --> 00:27:12,200 Speaker 1: and the Permian, they're going to keep our our natural 509 00:27:12,240 --> 00:27:14,320 Speaker 1: gas prices in this country very low for a very 510 00:27:14,359 --> 00:27:16,800 Speaker 1: long time. I want to pick up on what Lisa said, 511 00:27:16,840 --> 00:27:19,120 Speaker 1: having to do with the factors that affect the actual 512 00:27:19,240 --> 00:27:23,000 Speaker 1: price of oil and the way in which fossil fuel, 513 00:27:23,359 --> 00:27:26,280 Speaker 1: whether it be natural gas or shale oil or you know, 514 00:27:26,400 --> 00:27:31,200 Speaker 1: deep water affected. But isn't it also that Venezuela, Mexico 515 00:27:31,359 --> 00:27:34,399 Speaker 1: to the big oil producing regions. You got Pemmics with 516 00:27:34,440 --> 00:27:38,240 Speaker 1: cutbacks in potential farm participation, and then you've got the 517 00:27:38,240 --> 00:27:41,120 Speaker 1: general Venezuela story. Isn't that going to affect the price 518 00:27:41,119 --> 00:27:45,560 Speaker 1: of oil? That that certainly has and that's what we 519 00:27:45,560 --> 00:27:49,399 Speaker 1: were mentioning about OPEC seating market share, uh, with Venezuela 520 00:27:49,440 --> 00:27:52,640 Speaker 1: being one of the you know, going down from almost 521 00:27:52,640 --> 00:27:55,919 Speaker 1: three million barrels to under one point seven million barrels 522 00:27:55,920 --> 00:27:59,160 Speaker 1: a day. Now, UH, Mexico has also had its issues. 523 00:27:59,240 --> 00:28:02,720 Speaker 1: But again when you look at this country going from 524 00:28:02,760 --> 00:28:05,240 Speaker 1: ten to ten point six million barrels a day, there's 525 00:28:05,280 --> 00:28:08,800 Speaker 1: a lot of production coming online and there is a 526 00:28:08,880 --> 00:28:13,080 Speaker 1: question mark of what happens in But I think one 527 00:28:13,080 --> 00:28:17,280 Speaker 1: of the parts that investors sometimes misses that Saudi Arabian 528 00:28:17,359 --> 00:28:21,000 Speaker 1: Russia have both cartail production and so there is some 529 00:28:21,040 --> 00:28:25,120 Speaker 1: spare capacity that can come online, although the man could 530 00:28:25,200 --> 00:28:28,840 Speaker 1: eventually outpaced at depending on oil prices. Thank you very 531 00:28:28,920 --> 00:28:31,080 Speaker 1: much for being with us for Nada vale Is Oil 532 00:28:31,119 --> 00:28:36,240 Speaker 1: and Gas Anithers for Bloomberg Intelligence. You're listening to Bloomberg Markets. 533 00:28:37,680 --> 00:28:40,240 Speaker 1: Thanks for listening to the Bloomberg P and L podcast. 534 00:28:40,560 --> 00:28:44,480 Speaker 1: You can subscribe and listen to interviews at Apple Podcasts, SoundCloud, 535 00:28:44,600 --> 00:28:48,040 Speaker 1: or whatever podcast platform you prefer. I'm pim Fox. I'm 536 00:28:48,080 --> 00:28:52,080 Speaker 1: on Twitter at pim Fox. I'm on Twitter at Lisa Abramo. 537 00:28:52,200 --> 00:28:54,800 Speaker 1: It's one before the podcast. You can always catch us 538 00:28:54,840 --> 00:29:03,560 Speaker 1: worldwide on Bloomberg Radio. Took