1 00:00:02,759 --> 00:00:10,600 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,640 --> 00:00:14,600 Speaker 1: Bloomberg Intelligence podcast. Catch us live weekdays at ten am 3 00:00:14,640 --> 00:00:17,880 Speaker 1: Eastern on Apple Coarclay, and Android Auto with the Bloomberg 4 00:00:17,960 --> 00:00:21,080 Speaker 1: Business app. Listen on demand wherever you get your podcasts, 5 00:00:21,400 --> 00:00:23,680 Speaker 1: or watch us live on YouTube. 6 00:00:24,000 --> 00:00:27,360 Speaker 2: Oracle will deploy a large batch of AMD's forthcoming m 7 00:00:27,440 --> 00:00:29,240 Speaker 2: I four fifty chips next year. 8 00:00:29,440 --> 00:00:31,800 Speaker 3: It's kind of like our AI story of the day. 9 00:00:31,840 --> 00:00:33,440 Speaker 2: It seems like every day we've got one of these 10 00:00:33,640 --> 00:00:36,240 Speaker 2: stories of these tech companies doing business with one another 11 00:00:36,240 --> 00:00:38,240 Speaker 2: and maybe even involving some investments in each other. 12 00:00:38,400 --> 00:00:40,879 Speaker 3: Honorag Rana, it's his job to. 13 00:00:41,000 --> 00:00:43,000 Speaker 2: Keep it all straight here. He's a technology aneist to 14 00:00:43,040 --> 00:00:47,280 Speaker 2: Bloomberg Intelligence. Honurag If you're Oracle, if you're AMD, is 15 00:00:47,320 --> 00:00:48,720 Speaker 2: this just business as usual? 16 00:00:48,800 --> 00:00:51,080 Speaker 3: Why? Or is this something new and unusual? 17 00:00:52,440 --> 00:00:54,800 Speaker 4: The slight and usual part is that the AMD chip 18 00:00:54,880 --> 00:00:57,160 Speaker 4: seems to be doing at parity at what and video 19 00:00:57,240 --> 00:01:00,240 Speaker 4: chips are for this particular case. Now, I do not 20 00:01:00,320 --> 00:01:02,639 Speaker 4: know what kind of workloads Oracle will put on it, 21 00:01:02,880 --> 00:01:05,520 Speaker 4: so you really can't do an apples to apples comparison. 22 00:01:05,560 --> 00:01:08,920 Speaker 4: But the story at this point is Oracle has a 23 00:01:08,959 --> 00:01:12,479 Speaker 4: massive backlock of orders and it needs to invest money 24 00:01:12,520 --> 00:01:15,679 Speaker 4: to get them converted into revenue. They need to open 25 00:01:15,720 --> 00:01:18,800 Speaker 4: more data centers or rent out more data centers. They 26 00:01:18,840 --> 00:01:21,960 Speaker 4: need to buy more chips, buy more hardware, and combine 27 00:01:22,000 --> 00:01:24,080 Speaker 4: all that together and eventually then they're going to get 28 00:01:24,120 --> 00:01:26,319 Speaker 4: paid for all that stuff. So they're going anywhere they 29 00:01:26,360 --> 00:01:28,400 Speaker 4: can find chips right now, and you know, it seems 30 00:01:28,440 --> 00:01:30,000 Speaker 4: that AMD is their next stop. 31 00:01:30,680 --> 00:01:32,479 Speaker 5: So there are a couple of threads to pull on there. 32 00:01:32,520 --> 00:01:35,959 Speaker 6: It feels like AMD is increasingly the number one alternative 33 00:01:36,000 --> 00:01:37,280 Speaker 6: to invidious chips. 34 00:01:37,360 --> 00:01:38,720 Speaker 5: We can talk about that a little bit. 35 00:01:38,800 --> 00:01:42,120 Speaker 6: But what struck me is that there's no dollar amount 36 00:01:42,160 --> 00:01:47,319 Speaker 6: disclosed in this deal or partnership or promise. The previous 37 00:01:47,640 --> 00:01:50,920 Speaker 6: deal that AMD struck with open Ai just said tens 38 00:01:50,960 --> 00:01:52,600 Speaker 6: of billions of dollars in new revenue. 39 00:01:52,920 --> 00:01:56,520 Speaker 5: Why are firms keeping it so vague, Well. 40 00:01:56,360 --> 00:01:58,600 Speaker 4: Because they do not know how many chips they would 41 00:01:58,600 --> 00:02:01,600 Speaker 4: need at what point, at whatcity. This is a you know, 42 00:02:01,680 --> 00:02:05,000 Speaker 4: it's not you know, it's it's more so signaling that 43 00:02:05,040 --> 00:02:08,000 Speaker 4: we are not just truly dependent on in video, we 44 00:02:08,080 --> 00:02:11,320 Speaker 4: have other options as well. It helps them with navigating 45 00:02:11,360 --> 00:02:13,680 Speaker 4: in terms of pricing from in video. Also, you know, 46 00:02:13,720 --> 00:02:16,000 Speaker 4: we know in video chips are getting expensive over the 47 00:02:16,080 --> 00:02:19,079 Speaker 4: last few years, so there is there could be one reason. 48 00:02:19,360 --> 00:02:21,040 Speaker 4: The other thing we don't know is what kind of 49 00:02:21,080 --> 00:02:24,560 Speaker 4: workloads there are. Because we know, for the absolute best 50 00:02:24,600 --> 00:02:27,200 Speaker 4: of the best, you you have to use in video chips. 51 00:02:27,320 --> 00:02:29,600 Speaker 4: That's what we know as of today. Whether all of 52 00:02:29,639 --> 00:02:32,120 Speaker 4: that changes in twelve to eighteen months, we don't know. 53 00:02:32,520 --> 00:02:35,000 Speaker 4: But there are other workloads that may not require that 54 00:02:35,080 --> 00:02:37,720 Speaker 4: amount of you know, firepower or horse power you could say. 55 00:02:38,400 --> 00:02:40,880 Speaker 4: For that you may use you know, AMD chips or 56 00:02:40,919 --> 00:02:42,079 Speaker 4: something even more inferior. 57 00:02:43,080 --> 00:02:45,919 Speaker 2: And even yet another announcement in your space today on 58 00:02:46,160 --> 00:02:48,320 Speaker 2: rock Salesforce, a company you've been talking to us about 59 00:02:48,320 --> 00:02:51,400 Speaker 2: for many, many years, Salesforce and open Ai today announced 60 00:02:51,400 --> 00:02:53,799 Speaker 2: an expanded strategic partnership. 61 00:02:55,400 --> 00:02:56,280 Speaker 3: What's going on there? 62 00:02:57,480 --> 00:03:00,360 Speaker 4: Yeah, So for me, this is actually a bar bigger 63 00:03:00,440 --> 00:03:04,280 Speaker 4: news and has more ramifications in the long run. If 64 00:03:04,320 --> 00:03:07,000 Speaker 4: you see what's been happening in the software landscape over 65 00:03:07,000 --> 00:03:10,520 Speaker 4: the past two years, the threat is that Opening I 66 00:03:10,600 --> 00:03:13,640 Speaker 4: will come and it will take away you know, basically 67 00:03:13,639 --> 00:03:16,560 Speaker 4: the businesses of all the application software vendors, you know, 68 00:03:16,600 --> 00:03:21,040 Speaker 4: whether that's Adobe workday, Salesforce, HubSpot, you name it. Because 69 00:03:21,400 --> 00:03:26,160 Speaker 4: open ai has shown capabilities that their model can help 70 00:03:26,200 --> 00:03:30,880 Speaker 4: out in functions such as finance, human resources, sales automations, 71 00:03:30,880 --> 00:03:36,120 Speaker 4: et cetera. This integration between the world's biggest CRM software vendor, 72 00:03:36,200 --> 00:03:38,960 Speaker 4: which is Salesforce, and open Ai shows that both of 73 00:03:39,000 --> 00:03:41,560 Speaker 4: them will be working together and you know, it'll be 74 00:03:41,600 --> 00:03:46,320 Speaker 4: easier for enterprises to go inside open Ai chargpt ask 75 00:03:46,440 --> 00:03:49,560 Speaker 4: for what they want that gets connected to the data 76 00:03:49,600 --> 00:03:53,240 Speaker 4: that resides in Salesforce. Makes it very easy for the 77 00:03:53,360 --> 00:03:56,360 Speaker 4: enterprise customers to do their work as well rather than 78 00:03:56,560 --> 00:03:58,920 Speaker 4: just going into you know, Salesforce. So I think this 79 00:03:59,000 --> 00:04:01,600 Speaker 4: is a bigger news in the law run, but you 80 00:04:01,600 --> 00:04:03,720 Speaker 4: know we are all talking about Oracle as well. 81 00:04:04,080 --> 00:04:04,640 Speaker 7: Yeah. 82 00:04:04,880 --> 00:04:07,920 Speaker 6: Open Ai announces a new deal with someone every day, Paul, 83 00:04:07,960 --> 00:04:10,160 Speaker 6: This is kind of what you're you're getting back to. 84 00:04:10,480 --> 00:04:13,320 Speaker 6: And this really both of these announcements are the latest, 85 00:04:13,720 --> 00:04:15,880 Speaker 6: uh in this string of big tech building more computing 86 00:04:15,880 --> 00:04:19,160 Speaker 6: infrastructure and meeting this demand, this and satual demand. I've 87 00:04:19,160 --> 00:04:22,840 Speaker 6: really lost track of the permutations, Anra. What worries you 88 00:04:23,000 --> 00:04:27,400 Speaker 6: about these back and forth announcements and partnerships and you know, 89 00:04:27,640 --> 00:04:29,920 Speaker 6: the billions of dollars that may or may not change hands. 90 00:04:31,200 --> 00:04:33,039 Speaker 6: Do do we think that these are just announcements that 91 00:04:33,160 --> 00:04:36,520 Speaker 6: may not come to fruition if circumstances change, for instance, 92 00:04:36,520 --> 00:04:37,600 Speaker 6: in the next six months. 93 00:04:38,720 --> 00:04:40,760 Speaker 4: See from a salesforce point of view, and which is 94 00:04:40,760 --> 00:04:42,839 Speaker 4: what I was. You know, you would say most of 95 00:04:42,920 --> 00:04:45,719 Speaker 4: us are worried about also legacy software names. It's a 96 00:04:45,760 --> 00:04:48,400 Speaker 4: good thing because Opening Eye is a new channel of 97 00:04:48,400 --> 00:04:51,520 Speaker 4: communication with you know, the rest of the world. If 98 00:04:52,040 --> 00:04:54,719 Speaker 4: you can integrate your product with them, it kind of 99 00:04:54,760 --> 00:04:57,839 Speaker 4: saves you from getting disrupted. The question is in the 100 00:04:57,920 --> 00:04:59,960 Speaker 4: long run and then we'll find out what happens is 101 00:05:00,520 --> 00:05:03,520 Speaker 4: will Opening I have that much level of funding to 102 00:05:03,760 --> 00:05:06,320 Speaker 4: keep up with all the promises that they have. They 103 00:05:06,320 --> 00:05:09,720 Speaker 4: have given very high revenue estimates for the next few years. 104 00:05:10,080 --> 00:05:11,680 Speaker 4: But at the same time, I mean, the rest of 105 00:05:11,720 --> 00:05:14,800 Speaker 4: the bigger you know, tech vendors are not you know, 106 00:05:15,320 --> 00:05:17,760 Speaker 4: just sleeping. At that point, I would say, we'll find 107 00:05:17,800 --> 00:05:20,440 Speaker 4: out whether Opening I will be able to gain market 108 00:05:20,440 --> 00:05:23,799 Speaker 4: share from the likes of you know, Microsoft, Apple, Google 109 00:05:24,000 --> 00:05:28,240 Speaker 4: and Meta or Amazon, or this is going to be 110 00:05:28,320 --> 00:05:30,000 Speaker 4: just an expansion of the overall market. 111 00:05:31,000 --> 00:05:33,440 Speaker 3: Stay with us. More from Bloomberg Intelligence coming. 112 00:05:33,320 --> 00:05:40,359 Speaker 1: Up after this, you're listening to the Bloomberg Intelligence podcast. 113 00:05:40,720 --> 00:05:44,080 Speaker 1: Catch us live weekdays at ten am Eastern on Applecarplay 114 00:05:44,120 --> 00:05:47,080 Speaker 1: and Android Auto with the Bloomberg Business App. Listen on 115 00:05:47,160 --> 00:05:50,400 Speaker 1: demand wherever you get your podcasts, or watch us live 116 00:05:50,480 --> 00:05:51,120 Speaker 1: on YouTube. 117 00:05:52,160 --> 00:05:54,520 Speaker 2: Speaking of an industry that's kind of I don't know, 118 00:05:54,839 --> 00:05:57,080 Speaker 2: in transition, that's probably the polite way to say it 119 00:05:57,160 --> 00:06:00,640 Speaker 2: is the auto industry. And saw General Motors today incurring 120 00:06:00,680 --> 00:06:03,560 Speaker 2: a one point six billion dollars in charges related to 121 00:06:03,640 --> 00:06:07,919 Speaker 2: pairing back electric vehicle productions plans due to flagging federal 122 00:06:07,960 --> 00:06:09,080 Speaker 2: support for plug in vehicle. 123 00:06:09,120 --> 00:06:09,960 Speaker 3: Steve Man joins us. 124 00:06:10,160 --> 00:06:13,920 Speaker 2: He covers the global autos and industrials industry for Bloomberg Intelligence. 125 00:06:14,520 --> 00:06:17,960 Speaker 2: Steve tell us what's in this charge? Why is GM 126 00:06:18,000 --> 00:06:19,560 Speaker 2: doing this? And why is it and why is GM 127 00:06:19,600 --> 00:06:20,200 Speaker 2: doing this now? 128 00:06:21,360 --> 00:06:25,359 Speaker 8: Look, Paul, I used to work at GM prior to 129 00:06:25,600 --> 00:06:29,440 Speaker 8: being an analyst on the South Side, And look, I 130 00:06:29,480 --> 00:06:32,280 Speaker 8: think what GM is doing today is a little bit 131 00:06:32,360 --> 00:06:38,040 Speaker 8: unprecedented because they're actually changing shifting that changing the direction 132 00:06:38,080 --> 00:06:42,520 Speaker 8: of that ship around fairly quickly. You know, once you know, 133 00:06:42,560 --> 00:06:46,680 Speaker 8: when they in the seventy five hundred dollars subsidy expire. 134 00:06:47,680 --> 00:06:51,320 Speaker 8: You know, they knew they had a portfolio that was 135 00:06:52,120 --> 00:06:55,120 Speaker 8: not congruent with with what they think sales is going 136 00:06:55,200 --> 00:06:58,479 Speaker 8: to be, So they're going to have to rationalize that 137 00:06:58,480 --> 00:07:02,760 Speaker 8: that that portfolio. They've been the most aggressive, if not globally, 138 00:07:03,120 --> 00:07:05,599 Speaker 8: but amongst the top you know, the big three in 139 00:07:05,680 --> 00:07:09,039 Speaker 8: Detroit in rolling out new evs. So you know they're 140 00:07:09,040 --> 00:07:13,000 Speaker 8: gonna have to review that portfolio, maybe even ween out 141 00:07:13,080 --> 00:07:17,680 Speaker 8: some of the lower sales not less profitable EV's going 142 00:07:17,880 --> 00:07:18,560 Speaker 8: going forward. 143 00:07:18,840 --> 00:07:21,240 Speaker 6: Yeah, what surprised me about this action? Like you said, 144 00:07:21,280 --> 00:07:24,160 Speaker 6: they've been pretty aggressive on the EV front. Is Ford 145 00:07:24,600 --> 00:07:28,000 Speaker 6: has delayed or scrapped some plug in models and definitely 146 00:07:28,000 --> 00:07:29,280 Speaker 6: moved money away. 147 00:07:29,000 --> 00:07:31,480 Speaker 5: From the EV business, which it's been losing money on. 148 00:07:31,760 --> 00:07:34,160 Speaker 6: And it seemed like General Motors was taking the stance 149 00:07:34,200 --> 00:07:36,240 Speaker 6: of like, no, that's not us, we are going forward 150 00:07:36,280 --> 00:07:39,720 Speaker 6: with this. Is GM simply catching up to the economic 151 00:07:39,800 --> 00:07:42,920 Speaker 6: realities that Ford has already acknowledged, or is there a 152 00:07:42,920 --> 00:07:44,320 Speaker 6: different strategy at play here. 153 00:07:45,360 --> 00:07:48,800 Speaker 8: I think it's really hard to foresee. These policies are 154 00:07:48,880 --> 00:07:52,840 Speaker 8: changing so fast. You know, with Biden in the administration, 155 00:07:53,040 --> 00:07:55,280 Speaker 8: there was a huge push you know, not just GM, 156 00:07:55,320 --> 00:07:58,720 Speaker 8: but a lot of autumn, Makers was pushing evs. You 157 00:07:58,800 --> 00:08:02,680 Speaker 8: had new startupsbian like Lucid pushing evs. But you know, 158 00:08:02,760 --> 00:08:07,560 Speaker 8: things have changed, and look GM is reacting to it. 159 00:08:07,560 --> 00:08:10,119 Speaker 8: It's interesting you brought up Ford and now actually Ford, 160 00:08:10,440 --> 00:08:13,600 Speaker 8: Chris Farley looks actually pretty good, right, he looks like 161 00:08:13,640 --> 00:08:17,080 Speaker 8: he made the right call. But I think you know, 162 00:08:17,240 --> 00:08:19,880 Speaker 8: if you look at the bigger picture, what GM is 163 00:08:19,920 --> 00:08:23,840 Speaker 8: doing today is probably just the beginning. We'll probably hear more, 164 00:08:23,960 --> 00:08:27,640 Speaker 8: not just from GM, but from the other makers in 165 00:08:27,760 --> 00:08:30,160 Speaker 8: terms of their ev plans going forward. 166 00:08:30,400 --> 00:08:35,560 Speaker 2: Has this changed the way you're viewing the evolution to 167 00:08:35,679 --> 00:08:38,760 Speaker 2: evs that hey, maybe it's not going to be as 168 00:08:38,800 --> 00:08:40,680 Speaker 2: far as we thought or as quick as we thought. 169 00:08:40,840 --> 00:08:42,400 Speaker 3: How should we think about that? Because it seems to 170 00:08:42,440 --> 00:08:43,679 Speaker 3: have lost steam. 171 00:08:43,679 --> 00:08:44,880 Speaker 2: And I'm not sure if it's just tied to this 172 00:08:44,960 --> 00:08:47,960 Speaker 2: administration and it's policies and names, or is it more 173 00:08:48,000 --> 00:08:48,640 Speaker 2: market driven. 174 00:08:49,640 --> 00:08:52,600 Speaker 8: Well, I think it's it's up in the air. You know, personally, 175 00:08:52,800 --> 00:08:56,080 Speaker 8: I still think there is a market for EV's, not 176 00:08:56,120 --> 00:09:00,000 Speaker 8: necessarily in the US. You know, the Chinese are still 177 00:09:00,160 --> 00:09:04,600 Speaker 8: pushing evs. The Europeans the certain extents are a certain 178 00:09:04,640 --> 00:09:08,720 Speaker 8: extent are also pushing ev I think, you know, with 179 00:09:08,880 --> 00:09:14,960 Speaker 8: the current policies of no subsidies, no penalties for you know, 180 00:09:15,040 --> 00:09:19,640 Speaker 8: selling gas guzzlers. Uh and and you know us consumer 181 00:09:20,440 --> 00:09:23,360 Speaker 8: still loving the gasoline engine. I think it's just going 182 00:09:23,440 --> 00:09:25,680 Speaker 8: to take a little bit more time to shift to 183 00:09:25,960 --> 00:09:29,640 Speaker 8: a greater penetration EV. Look, there is demand, right because 184 00:09:29,679 --> 00:09:32,480 Speaker 8: if you look just before the expiration of the seventy 185 00:09:32,480 --> 00:09:37,440 Speaker 8: five hundred dollars subsidy, we did see a spike in 186 00:09:37,520 --> 00:09:40,880 Speaker 8: EV sales, be EV sales. So there is a certain 187 00:09:40,920 --> 00:09:44,120 Speaker 8: segment of the consumer that is looking for evs and 188 00:09:44,160 --> 00:09:46,480 Speaker 8: I think a lot of people who have driven EV's 189 00:09:46,960 --> 00:09:51,360 Speaker 8: love them. So, look, it's just going to take time, right, 190 00:09:51,360 --> 00:09:54,520 Speaker 8: It's going to take time to get there. There's there's 191 00:09:54,520 --> 00:09:57,280 Speaker 8: still other hurdles that the EV industry has to has 192 00:09:57,360 --> 00:10:00,880 Speaker 8: to overcome, for example, the charging the structure, you know 193 00:10:01,000 --> 00:10:02,439 Speaker 8: that that needs to be built out. 194 00:10:03,280 --> 00:10:04,360 Speaker 5: Yeah, no, no kidding. 195 00:10:05,120 --> 00:10:07,800 Speaker 6: Which legacy automaker, not just in the US, but around 196 00:10:07,880 --> 00:10:11,800 Speaker 6: the world has figured out, you know, the best approach 197 00:10:11,880 --> 00:10:14,760 Speaker 6: to EV's, you know, gotten the balance correctly. 198 00:10:15,600 --> 00:10:18,160 Speaker 8: Yeah, I just take a step back. I think GM 199 00:10:18,400 --> 00:10:22,840 Speaker 8: is probably the best because they actually have even with 200 00:10:22,880 --> 00:10:28,920 Speaker 8: this about face, yes, because they're reacting to reality fairly quickly. Look, 201 00:10:28,960 --> 00:10:33,520 Speaker 8: they're they're cutting back on the US UH EV capacity 202 00:10:33,760 --> 00:10:38,080 Speaker 8: potentially EV product offering, but they're actually doing fairly well 203 00:10:38,320 --> 00:10:42,400 Speaker 8: in China. They do have plug in hybrids, they do 204 00:10:42,480 --> 00:10:45,000 Speaker 8: have extended range evs, which I think we talked about 205 00:10:45,000 --> 00:10:48,280 Speaker 8: it here before. And uh they also have battery electric 206 00:10:48,360 --> 00:10:51,400 Speaker 8: vehicles in China, and you know, sales have been improving 207 00:10:51,840 --> 00:10:53,560 Speaker 8: over the past few quarters over there. 208 00:10:54,360 --> 00:10:57,520 Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this. 209 00:11:01,400 --> 00:11:05,120 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 210 00:11:05,200 --> 00:11:08,559 Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto 211 00:11:08,679 --> 00:11:11,760 Speaker 1: with the Bloomberg Business app. Listen on demand wherever you 212 00:11:11,800 --> 00:11:15,200 Speaker 1: get your podcasts, or watch us live on YouTube. 213 00:11:16,200 --> 00:11:18,400 Speaker 2: I think back in the pandemic, we all became, whether 214 00:11:18,400 --> 00:11:20,600 Speaker 2: we wanted to or not, we became experts on the 215 00:11:20,640 --> 00:11:24,520 Speaker 2: global supply chain and how fragile that is. And that 216 00:11:24,640 --> 00:11:28,400 Speaker 2: is no more evident than in the airline business and 217 00:11:28,480 --> 00:11:32,320 Speaker 2: aircraft manufacturing business. Apparently, it's not an easy thing to 218 00:11:32,400 --> 00:11:36,480 Speaker 2: build a jet aircraft here, and you need specialized skills 219 00:11:36,480 --> 00:11:39,520 Speaker 2: and people with those skills. That's still rippling through the 220 00:11:39,600 --> 00:11:44,920 Speaker 2: aviation and aerospace industries Boeing and Airbus are suffering quote 221 00:11:45,000 --> 00:11:49,640 Speaker 2: unprecedented delays and certifying delivering aircraft, stiffing airlines growth and 222 00:11:49,679 --> 00:11:51,359 Speaker 2: plans to decarbonized. 223 00:11:51,360 --> 00:11:53,640 Speaker 3: Customers are saying George Ferguson joints us here. 224 00:11:53,800 --> 00:11:57,040 Speaker 2: He's a senior aerospace, Defense and airlines anamals for Bloomberg Intelligence. 225 00:11:57,440 --> 00:12:00,000 Speaker 3: George, it's we're well passed the pandemic here. 226 00:12:00,320 --> 00:12:03,800 Speaker 2: I know you've educated us and explaining to us how 227 00:12:03,880 --> 00:12:07,040 Speaker 2: just how intense these supply chains are and how complicated 228 00:12:07,080 --> 00:12:09,520 Speaker 2: they are. Give us an update on the ability of 229 00:12:09,559 --> 00:12:12,720 Speaker 2: Airbus and Boeing to deliver aircraft to their customers. 230 00:12:13,360 --> 00:12:16,319 Speaker 9: Yeah, so, I think the update would be that Boeing 231 00:12:16,440 --> 00:12:19,400 Speaker 9: is converging, I think on air Bus as far as 232 00:12:19,440 --> 00:12:23,440 Speaker 9: delivery numbers. You know, Airbus sort of came out of 233 00:12:23,440 --> 00:12:27,480 Speaker 9: the pandemic with supply chains I think, in relatively better shape, 234 00:12:28,520 --> 00:12:32,200 Speaker 9: and they were doing better at deliveries because of that. 235 00:12:32,360 --> 00:12:35,840 Speaker 9: But recently things have stagnated, and so Airbus has been 236 00:12:35,920 --> 00:12:40,640 Speaker 9: having problems getting engines from specifically ge which is making 237 00:12:40,720 --> 00:12:43,800 Speaker 9: hard for them to deliver their bread and butter aircraft, 238 00:12:43,840 --> 00:12:47,439 Speaker 9: the A three twenty. During the month of they delivered 239 00:12:47,480 --> 00:12:50,280 Speaker 9: fifty nine a three twenties not bad, but they want 240 00:12:50,280 --> 00:12:53,720 Speaker 9: to be at seventy five a month by twenty twenty seven, 241 00:12:54,400 --> 00:12:56,160 Speaker 9: and they have months where they're in the forties and 242 00:12:56,240 --> 00:12:59,120 Speaker 9: so very sporadic. Again, I think a lot of it 243 00:12:59,160 --> 00:13:01,640 Speaker 9: has to do with that g supply chain. So it 244 00:13:01,720 --> 00:13:05,439 Speaker 9: was an okay month, I think for Airbus in an 245 00:13:05,440 --> 00:13:07,520 Speaker 9: okay quarter, they have a lot of work to do 246 00:13:08,000 --> 00:13:09,800 Speaker 9: to get to their targets. For the end of the year. 247 00:13:10,880 --> 00:13:15,719 Speaker 9: Boeing just reported deliveries. They're in the fifties. Most importantly, 248 00:13:16,559 --> 00:13:20,160 Speaker 9: seven thirty seven's are around forty I think it was 249 00:13:20,200 --> 00:13:23,120 Speaker 9: for the month, which is a pretty good number. It's 250 00:13:23,120 --> 00:13:26,199 Speaker 9: been it's a little bit less than August, but has 251 00:13:26,240 --> 00:13:29,640 Speaker 9: been improving. That's how they're going to drive cash flow 252 00:13:29,679 --> 00:13:33,760 Speaker 9: and profitability, better cash flow and profitability. So it looks 253 00:13:33,800 --> 00:13:37,199 Speaker 9: like Boeing really starting to get there through poo in 254 00:13:37,360 --> 00:13:40,920 Speaker 9: the factory sort of in hand and working well and 255 00:13:40,960 --> 00:13:44,360 Speaker 9: starting to deliver some of that inventory aircraft, which will 256 00:13:44,400 --> 00:13:47,760 Speaker 9: reduce some of the drag of on their earnings. 257 00:13:48,120 --> 00:13:52,960 Speaker 2: So at a recent investor or industry conference, Ben Smith 258 00:13:53,000 --> 00:13:56,480 Speaker 2: of Air France KALM said, for some long haul airplanes, 259 00:13:56,520 --> 00:13:58,960 Speaker 2: we've been waiting for certification for seven or eight years, 260 00:13:59,000 --> 00:14:00,000 Speaker 2: which is unprecedented. 261 00:14:01,679 --> 00:14:04,079 Speaker 3: What's going on with with some of those wide body jets. 262 00:14:04,920 --> 00:14:07,000 Speaker 9: Yeah, I mean the Triple seven is I think he's 263 00:14:07,040 --> 00:14:09,040 Speaker 9: referring to Triple seven right. Boeing has been trying to 264 00:14:09,040 --> 00:14:11,400 Speaker 9: get the Triple seven X, their latest version of the 265 00:14:11,440 --> 00:14:15,600 Speaker 9: Triple seven certified, and it just keeps pushing, and recently 266 00:14:16,120 --> 00:14:19,000 Speaker 9: it pushed from a twenty twenty six initial delivery to 267 00:14:19,640 --> 00:14:23,000 Speaker 9: a twenty twenty seven. I think you know a lot 268 00:14:23,000 --> 00:14:26,200 Speaker 9: of these airlines, you know, they're looking for this airplane 269 00:14:26,200 --> 00:14:27,720 Speaker 9: because it's going to be it's going to be the 270 00:14:27,760 --> 00:14:30,680 Speaker 9: biggest in the sky, right since the seven forty seven 271 00:14:30,920 --> 00:14:34,760 Speaker 9: and the A three eighty have been retired, this is 272 00:14:34,800 --> 00:14:36,680 Speaker 9: going to be the sort of the biggest seat count 273 00:14:36,680 --> 00:14:39,760 Speaker 9: you can get. So it's really good for driving sea 274 00:14:39,840 --> 00:14:43,760 Speaker 9: cost efficiencies at airlines. It's still though a small portion 275 00:14:44,560 --> 00:14:47,280 Speaker 9: of Boeing's business. I mean the backlogs I think around 276 00:14:47,360 --> 00:14:50,680 Speaker 9: four hundred, so it's not huge. The biggest backlogs are 277 00:14:50,680 --> 00:14:54,680 Speaker 9: to the Middle East, to Emirates and to Katar And 278 00:14:54,960 --> 00:14:58,040 Speaker 9: my guess is that as Boeing manages challenges in the 279 00:14:58,080 --> 00:15:02,720 Speaker 9: engineering workforce, Unfortunately. I think Triple seven sometimes maybe get 280 00:15:02,760 --> 00:15:06,400 Speaker 9: some short shrift, and so certification sort of keeps getting 281 00:15:06,440 --> 00:15:06,840 Speaker 9: pushed on. 282 00:15:06,840 --> 00:15:11,680 Speaker 2: That one US government shutdown can't be helping this industry 283 00:15:11,680 --> 00:15:13,560 Speaker 2: in terms of getting a certification and things like that. 284 00:15:13,640 --> 00:15:16,920 Speaker 2: Are any of the companies calling that out as a challenge. 285 00:15:16,840 --> 00:15:18,160 Speaker 9: Not Yeah, I mean we're about to go in an 286 00:15:18,160 --> 00:15:20,960 Speaker 9: earning season, right, so they're all in quiet period. I 287 00:15:21,000 --> 00:15:25,600 Speaker 9: think we'll hear. But I think you're right. The FAA, 288 00:15:25,720 --> 00:15:29,320 Speaker 9: i'm sure is not working at you sort of full 289 00:15:29,360 --> 00:15:31,960 Speaker 9: gallop at this point given the government shutdown. There's some 290 00:15:32,000 --> 00:15:35,120 Speaker 9: folks I'm sure that still have to work, but it's 291 00:15:35,160 --> 00:15:39,400 Speaker 9: not gonna help certification. We'll see how much longer it lasts. Again, 292 00:15:39,960 --> 00:15:43,880 Speaker 9: Triple seven we'd like to see certified and delivered. We 293 00:15:43,920 --> 00:15:48,400 Speaker 9: think Boeing still can keep that line open well into 294 00:15:48,440 --> 00:15:50,240 Speaker 9: twenty twenty seven. They have a lot of orders for 295 00:15:50,280 --> 00:15:54,880 Speaker 9: the freighter still. But you know, companies like Emirates Air 296 00:15:54,880 --> 00:15:57,520 Speaker 9: France KLM cut to our chomping at the bit to 297 00:15:57,520 --> 00:15:59,600 Speaker 9: get that airplane in the portfolio. Leftons too. 298 00:16:00,000 --> 00:16:02,600 Speaker 3: What's the labor situation in the aerospace business. You explained 299 00:16:02,640 --> 00:16:03,360 Speaker 3: to us that the. 300 00:16:03,280 --> 00:16:06,240 Speaker 2: Industry lost a lot of talented skilled people during the pandemic, 301 00:16:06,280 --> 00:16:09,000 Speaker 2: and it's kind of hard to retrain find these people 302 00:16:09,000 --> 00:16:10,040 Speaker 2: and retrain them. 303 00:16:10,400 --> 00:16:13,680 Speaker 9: Yeah, it's getting better, and I think you could sort 304 00:16:13,680 --> 00:16:17,480 Speaker 9: of look at some of those those labor indicators, like 305 00:16:17,560 --> 00:16:21,560 Speaker 9: the you know these surveys that show jobs, jobs open, 306 00:16:21,560 --> 00:16:24,520 Speaker 9: and people looking for jobs. During the pandemic, there were 307 00:16:24,600 --> 00:16:26,920 Speaker 9: a lot more jobs open than people looking for jobs 308 00:16:27,320 --> 00:16:33,680 Speaker 9: that sense crisscrossed. So that will improve stability in the 309 00:16:33,720 --> 00:16:36,880 Speaker 9: air space supply chain. I guess it's not as an 310 00:16:36,880 --> 00:16:39,760 Speaker 9: exciting career as it maybe it was back when I 311 00:16:39,800 --> 00:16:41,520 Speaker 9: was a boy, I guess for a long time ago. 312 00:16:42,440 --> 00:16:45,160 Speaker 9: And so you know, there's people that would love to 313 00:16:45,160 --> 00:16:47,400 Speaker 9: be able to work at home. You can't really do 314 00:16:47,520 --> 00:16:51,160 Speaker 9: that when you're manufacturing airplanes. So they've had a hard 315 00:16:51,160 --> 00:16:54,200 Speaker 9: time sort of backfilling a lot of the baby boomers 316 00:16:54,200 --> 00:16:58,040 Speaker 9: that left, and the new workforce just isn't as I 317 00:16:58,080 --> 00:17:01,120 Speaker 9: would say, I don't know if it's fair adept with 318 00:17:01,240 --> 00:17:04,679 Speaker 9: their hands maybe as the boomers. And so they're bringing 319 00:17:04,720 --> 00:17:08,080 Speaker 9: people in that haven't worked manufacturing and trying to teach 320 00:17:08,119 --> 00:17:10,400 Speaker 9: them how to do that kind of business, which makes 321 00:17:10,400 --> 00:17:13,760 Speaker 9: it even harder to train up. But it is improving again, 322 00:17:13,800 --> 00:17:15,760 Speaker 9: We're seeing it. I think in the throughput we're getting 323 00:17:15,760 --> 00:17:19,639 Speaker 9: out of Boeing. The delivery numbers today are indicator of it. 324 00:17:19,680 --> 00:17:23,080 Speaker 9: And as we see the you know, the uh what 325 00:17:23,200 --> 00:17:25,800 Speaker 9: we call it, the employment situation, get back and balance 326 00:17:25,800 --> 00:17:26,320 Speaker 9: it all out. 327 00:17:27,200 --> 00:17:30,280 Speaker 3: Stay with us. More from Bloomberg Intelligence coming up after this. 328 00:17:33,800 --> 00:17:37,480 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 329 00:17:37,560 --> 00:17:40,640 Speaker 1: weekdays at ten am Eastern on Apple, Coarclay, and Android 330 00:17:40,680 --> 00:17:43,959 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 331 00:17:44,040 --> 00:17:47,160 Speaker 1: you get your podcasts, or watch us live on YouTube. 332 00:17:48,040 --> 00:17:50,159 Speaker 2: There's a million important things we can talk about, but 333 00:17:50,200 --> 00:17:53,639 Speaker 2: I have to lead off with this. Keleanova offering a 334 00:17:53,720 --> 00:17:56,639 Speaker 2: version of pop Tarts with higher protein content starting in 335 00:17:56,720 --> 00:18:00,640 Speaker 2: early November. This follows Pepsi's plans for higher protein version 336 00:18:00,680 --> 00:18:03,359 Speaker 2: of do Ritos. How do you know what protein is 337 00:18:03,440 --> 00:18:06,440 Speaker 2: and how you added into something? Jen, what's going on here? 338 00:18:07,119 --> 00:18:10,439 Speaker 7: Yeah, hi, Paul. So really what we're seeing is a 339 00:18:10,480 --> 00:18:12,760 Speaker 7: lot of these package free companies are tapping into this 340 00:18:12,880 --> 00:18:16,480 Speaker 7: protein trend. It's something that consumers are really looking for. 341 00:18:16,880 --> 00:18:18,400 Speaker 7: And at the end of the day, when it comes 342 00:18:18,440 --> 00:18:21,000 Speaker 7: to PepsiCo or it comes to Kelenova, This is really 343 00:18:21,040 --> 00:18:24,840 Speaker 7: about making people feel marginally better about eating food that 344 00:18:24,960 --> 00:18:28,119 Speaker 7: is bad for them. Right, Let's let's just be honest 345 00:18:28,160 --> 00:18:30,840 Speaker 7: about it, right. So you know, when you put protein 346 00:18:30,880 --> 00:18:33,160 Speaker 7: on the package, people feel like, even if they're making 347 00:18:33,160 --> 00:18:35,320 Speaker 7: a bad choice, it's not as bad as it could 348 00:18:35,359 --> 00:18:37,440 Speaker 7: have been. And that's really what's behind this. 349 00:18:37,760 --> 00:18:41,280 Speaker 6: It's like the equivalent of vanity sizing at retailers. Right, 350 00:18:41,320 --> 00:18:43,199 Speaker 6: you know, you're actually size six, but we're going to 351 00:18:43,200 --> 00:18:45,160 Speaker 6: tell you you're a size two so you feel better 352 00:18:45,160 --> 00:18:48,520 Speaker 6: and buy more clothes. Is this as simple, jen as 353 00:18:48,720 --> 00:18:52,720 Speaker 6: just adding protein powder on top of the Kellogg's pop tarts? 354 00:18:52,760 --> 00:18:54,320 Speaker 5: Excuse me, Kelenova pop arts. 355 00:18:54,960 --> 00:18:57,720 Speaker 7: Yes, so what they've done is they've they've added protein 356 00:18:57,760 --> 00:19:01,119 Speaker 7: into the pastry part of the pop tarts and that 357 00:19:01,280 --> 00:19:03,400 Speaker 7: changes the texture and the taste just a little bit. 358 00:19:04,160 --> 00:19:06,679 Speaker 7: But what's really interesting is the consumer trend behind it. 359 00:19:06,760 --> 00:19:09,760 Speaker 7: You know, we ran a proprietary protein study back in 360 00:19:09,800 --> 00:19:12,280 Speaker 7: the middle of the summer, and what we saw was 361 00:19:12,280 --> 00:19:16,800 Speaker 7: that almost forty percent of consumers eat something with protein enhanced, 362 00:19:17,119 --> 00:19:19,720 Speaker 7: whether it's a snack or a beverage, on a weekly basis. 363 00:19:20,520 --> 00:19:23,199 Speaker 7: And you know, at least thirty eight percent said that 364 00:19:23,240 --> 00:19:27,760 Speaker 7: they're eating more protein enhanced products in the last three months. 365 00:19:27,920 --> 00:19:30,800 Speaker 7: So clearly there's a consumer uptake, there's interest in this, 366 00:19:31,000 --> 00:19:33,040 Speaker 7: and that's what these companies are really tapping into. 367 00:19:33,320 --> 00:19:35,600 Speaker 3: Do I want more protein? Do I need more protein? 368 00:19:35,680 --> 00:19:38,280 Speaker 6: I'm eating more egg whites, but that's because it's available 369 00:19:38,280 --> 00:19:38,640 Speaker 6: at work. 370 00:19:38,800 --> 00:19:39,440 Speaker 5: What are you doing? 371 00:19:39,800 --> 00:19:42,760 Speaker 3: I don't know the same thing of your goldfish? 372 00:19:42,760 --> 00:19:44,120 Speaker 5: Do not have extra protein. 373 00:19:43,840 --> 00:19:47,600 Speaker 3: On the goldfish? Have extra protein? 374 00:19:47,840 --> 00:19:49,919 Speaker 7: Neither of you are on GLP one drugs, right, But 375 00:19:50,000 --> 00:19:52,679 Speaker 7: protein is a big solution for people who are on 376 00:19:52,760 --> 00:19:55,800 Speaker 7: those drugs because you tend to lose muscle mass as 377 00:19:55,800 --> 00:19:58,600 Speaker 7: a side effect of those drugs, and so as the 378 00:19:58,680 --> 00:20:01,520 Speaker 7: uptake of GLP one goes up, there's more and more 379 00:20:01,560 --> 00:20:03,399 Speaker 7: demand for these protein and Harry products. 380 00:20:03,480 --> 00:20:04,240 Speaker 3: That's what I needed. 381 00:20:04,280 --> 00:20:06,800 Speaker 2: Okay, now I'm at a cocktail party and I need 382 00:20:06,840 --> 00:20:08,280 Speaker 2: to sound smart on proteins. 383 00:20:08,280 --> 00:20:08,960 Speaker 3: Now I got my line. 384 00:20:08,960 --> 00:20:12,080 Speaker 6: But apparently fiber is the new protein and jen Is. 385 00:20:12,119 --> 00:20:14,119 Speaker 6: Didn't the PepsiCo CEO say something about this? 386 00:20:15,160 --> 00:20:18,479 Speaker 7: Yeah, you know, whether it's anything that helps kind of 387 00:20:18,560 --> 00:20:22,040 Speaker 7: enhance the product. So when you're talking about Dorito's that 388 00:20:22,119 --> 00:20:26,200 Speaker 7: they have additional milk protein being added you know, higher 389 00:20:26,240 --> 00:20:29,000 Speaker 7: fiber products. All of these things are things that people, 390 00:20:29,359 --> 00:20:32,560 Speaker 7: the average consumer perceives as having a health or wellness benefit, 391 00:20:33,119 --> 00:20:35,600 Speaker 7: and people are trying, in small steps to be a 392 00:20:35,640 --> 00:20:36,879 Speaker 7: little bit better about their health. 393 00:20:37,359 --> 00:20:39,080 Speaker 2: All right, let's get to another story I thought was 394 00:20:39,200 --> 00:20:43,440 Speaker 2: really interesting. Walmart partners with open Ai to offer shopping 395 00:20:43,840 --> 00:20:45,119 Speaker 2: on chat GPT. 396 00:20:45,560 --> 00:20:49,199 Speaker 3: This sounds like a natural what's going on here? 397 00:20:49,240 --> 00:20:52,520 Speaker 7: Jen, Yeah, this is an interesting move, but I think 398 00:20:52,560 --> 00:20:55,240 Speaker 7: it really illustrates sort of that trend of what's happening 399 00:20:55,280 --> 00:20:59,119 Speaker 7: across retail in general. Walmart's really been very good about 400 00:20:59,600 --> 00:21:02,600 Speaker 7: doing it experimentation and kind of checking out what the 401 00:21:02,600 --> 00:21:07,080 Speaker 7: opportunities are whether it comes to social media and social 402 00:21:07,160 --> 00:21:11,800 Speaker 7: commerce particularly, and this lad us to partnership with with 403 00:21:11,960 --> 00:21:15,440 Speaker 7: Opening Eye. This really does tap into that as well. Now, 404 00:21:15,840 --> 00:21:18,639 Speaker 7: social spending is still very small in terms of the 405 00:21:18,680 --> 00:21:22,200 Speaker 7: overall percentage of what retailers are achieving, but it's important 406 00:21:22,240 --> 00:21:25,280 Speaker 7: to be present and I think that's what's most notable 407 00:21:25,320 --> 00:21:26,200 Speaker 7: about this announcement. 408 00:21:26,680 --> 00:21:30,040 Speaker 6: What is social spending and how do the numbers differ 409 00:21:30,160 --> 00:21:35,480 Speaker 6: from from normal shopping through Walmart's website or going into 410 00:21:35,480 --> 00:21:36,719 Speaker 6: Walmart's actual stores. 411 00:21:37,600 --> 00:21:40,160 Speaker 7: Yeah, so social commerce is when you're on a platform, 412 00:21:40,240 --> 00:21:43,240 Speaker 7: whether it's on Chat, gpt now, or whether it's on TikTok, 413 00:21:43,359 --> 00:21:46,560 Speaker 7: or whether it's on Facebook or you know, any of 414 00:21:46,560 --> 00:21:48,760 Speaker 7: the social media platforms, and you have the ability to 415 00:21:48,840 --> 00:21:52,320 Speaker 7: add to cart and buy now. That's that's social commerce. 416 00:21:52,600 --> 00:21:56,280 Speaker 7: But it's still a tiny, tiny fraction of the overall 417 00:21:56,280 --> 00:21:59,280 Speaker 7: e commerce that happens for these companies. So while it's 418 00:21:59,320 --> 00:22:02,760 Speaker 7: important in terms of their showing that they're present and 419 00:22:02,760 --> 00:22:04,960 Speaker 7: that they're aware of new technologies, it's not going to 420 00:22:05,000 --> 00:22:08,040 Speaker 7: move the needle with regards to their overall e commerce 421 00:22:08,040 --> 00:22:09,640 Speaker 7: sales or their overall business mix. 422 00:22:09,720 --> 00:22:13,360 Speaker 2: At this point, Jen, we've got a little bit more data, 423 00:22:13,359 --> 00:22:16,600 Speaker 2: a little bit more time, And as it relates to teriffs, 424 00:22:16,600 --> 00:22:20,400 Speaker 2: what's your best guess as to what your package food companies, 425 00:22:20,400 --> 00:22:24,560 Speaker 2: your retailers, how are they kind of segmenting the terraffs 426 00:22:24,960 --> 00:22:27,120 Speaker 2: before maybe passing along something to the consumer. 427 00:22:28,160 --> 00:22:32,200 Speaker 7: Yeah, it's a complicated situation, Paul, And really what's happening 428 00:22:32,280 --> 00:22:35,199 Speaker 7: is you know where they can find alternative sourcing. A 429 00:22:35,200 --> 00:22:37,760 Speaker 7: lot of companies have been trying to do that. There 430 00:22:37,760 --> 00:22:40,480 Speaker 7: are some companies in package food where that's not as easy. 431 00:22:40,520 --> 00:22:43,119 Speaker 7: So I would take McCormick as an example, where a 432 00:22:43,119 --> 00:22:46,200 Speaker 7: lot of spices you can't produce domestically or you can't 433 00:22:46,240 --> 00:22:49,800 Speaker 7: source domestically, and then it becomes a question of how 434 00:22:49,800 --> 00:22:54,080 Speaker 7: do you negotiate with partners? Do you find alternative countries 435 00:22:54,119 --> 00:22:57,600 Speaker 7: of origin that maybe have slightly lower tariff levels? And 436 00:22:57,640 --> 00:23:00,080 Speaker 7: it's also a lot of effort right now is going 437 00:23:00,119 --> 00:23:03,439 Speaker 7: into finding efficiencies that can help offset those costs so 438 00:23:03,480 --> 00:23:05,280 Speaker 7: that they can absorb some of that cost and not 439 00:23:05,400 --> 00:23:08,359 Speaker 7: have to pass it on to consumers. Ultimately, most of 440 00:23:08,400 --> 00:23:11,560 Speaker 7: the companies we're talking to are saying that where needed, 441 00:23:11,600 --> 00:23:15,280 Speaker 7: they will very strategically pass price through, but they're trying 442 00:23:15,280 --> 00:23:19,440 Speaker 7: to avoid a uniform, unilateral price increase just due to tariffs. 443 00:23:19,600 --> 00:23:21,399 Speaker 6: How much of this work has been done what you 444 00:23:21,560 --> 00:23:24,800 Speaker 6: just described, and I guess I wonder how much of 445 00:23:24,840 --> 00:23:28,000 Speaker 6: it will be covered in the earnings calls this quarter. 446 00:23:28,920 --> 00:23:30,720 Speaker 7: I think it will be definitely a topic of the 447 00:23:30,720 --> 00:23:34,360 Speaker 7: earnings calls this quarter. But when we had tariffs back 448 00:23:34,359 --> 00:23:37,400 Speaker 7: in twenty eighteen, a lot of companies started the process 449 00:23:37,520 --> 00:23:42,400 Speaker 7: of identifying other options for sourcing. So there's probably been 450 00:23:42,400 --> 00:23:45,960 Speaker 7: more progress made than people would recognize because it didn't 451 00:23:46,040 --> 00:23:49,440 Speaker 7: just start this year. And so it's been sort of 452 00:23:49,480 --> 00:23:52,879 Speaker 7: a gradual shift, and once they have those plans in place, 453 00:23:52,960 --> 00:23:56,360 Speaker 7: they can sort of accelerate that and then the focus 454 00:23:56,400 --> 00:23:59,280 Speaker 7: really is on efficiencies, and that's where the technology comes 455 00:23:59,320 --> 00:24:01,919 Speaker 7: back into play, where it helps them be better with 456 00:24:02,040 --> 00:24:06,520 Speaker 7: regards to their sourcing, their negotiations, and really in terms 457 00:24:06,520 --> 00:24:10,560 Speaker 7: of understanding what products they actually need to carry and 458 00:24:10,600 --> 00:24:13,720 Speaker 7: which products they could perhaps suspend or discontinue. 459 00:24:14,320 --> 00:24:19,040 Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify, 460 00:24:19,200 --> 00:24:22,680 Speaker 1: and anywhere else you get your podcasts. 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