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Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside

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Speaker 1: my co host Matt Miller.

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Speaker 2: Every business day, we bring you interviews from CEOs, market pros,

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Speaker 2: and Bloomberg experts, along with essential market moving news.

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Speaker 1: Find the Bloomberg Markets Podcast on Apple Podcasts or wherever

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Speaker 1: you listen to podcasts, and at Bloomberg dot com slash podcast.

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Speaker 1: Let's talk about WTI Crudo. Matt just called it at

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Speaker 1: where Dan We hit eighty dollars a barrel yesterday on

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Speaker 1: WTA Crude. I don't know where this is coming, so

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Speaker 1: let's bring in some people.

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Speaker 2: And it was fast, right. We went from seventy eighty

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Speaker 2: very quickly.

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Speaker 1: Exactly. We're blow sixty eight dollars in late June for

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Speaker 1: w TA crude. Now here we are at eighty. Go

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Speaker 1: figure Mike McLoone, though he knows what's going on. So

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Speaker 1: does Fernando Valley. They are both analys covering the energy

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Speaker 1: space for Bloomberg Intelligence. Hey, Mike, let's start with you. You're

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Speaker 1: done in Bambi, Miami, Florida. How is it now, tough guy?

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Speaker 3: It's actually cooler here than you are there. You're high

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Speaker 3: yesterday ninety in the low eighties, so you got it

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Speaker 3: comes out the cool op.

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Speaker 1: All right, buddy. How did we get here with wtacrude

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Speaker 1: oil at eighty bucks a barrel?

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Speaker 2: We were at seventy at the beginning of July, so

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Speaker 2: within a month we're up ten bucks.

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Speaker 3: So let's look at it in the year. It's unchanged

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Speaker 3: basically still actually down in the year, so it's basically

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Speaker 3: bouncing from getting two over sold. But look at the

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Speaker 3: macro big picture. What we did last year was one

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Speaker 3: of the biggest pumps on a two year basis ever

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Speaker 3: and it's in the back end of that. And the

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Speaker 3: history of these things are very bad for crude oil,

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Speaker 3: particularly if you have the federal reserve still tightening and

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Speaker 3: disappointing data out of China. Those are current trends. So

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Speaker 3: I'm still very veriss crude oil. I see it at

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Speaker 3: the upper end of the range. I still think it's

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Speaker 3: more likely head towards forty and right now. One key

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Speaker 3: thing that's really mattering for everything and muchly all risk asses,

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Speaker 3: most notably copper and crude oils. The US stock market

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Speaker 3: basically has to keep going just for these markets to

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Speaker 3: stay stable. So that's the problem. If stock market actually

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Speaker 3: drops a little bit. These assets are probably going to

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Speaker 3: continue reverting last year's pumps.

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Speaker 2: So that's the trader perspective, Fernando, What do we know

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Speaker 2: about and demand here?

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Speaker 4: Well, on the demand side, of course, Northern Hemisphere summer,

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Speaker 4: Paul's driving more to the shore. Yep, they're driving a

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Speaker 4: little bit more consumption, but it's been slightly underwhelming on

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Speaker 4: the last few numbers of the EIA. In July, of

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Speaker 4: course you had the start of the Saudi Arabia the

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Speaker 4: additional cuts that they promised in the last so Pack

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Speaker 4: plus meeting, so that's probably sapping a little bit on

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Speaker 4: the supply side. But when we look at the inventory figures,

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Speaker 4: it hasn't changed drastically. It's really been this whole all right.

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Speaker 4: We're coming to a soft landing in the economy, which

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Speaker 4: Mike is just showing that the current data is not

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Speaker 4: really pointing towards that direction. But there's an expectation that

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Speaker 4: the soft landing is what will really put a pushes

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Speaker 4: over the edge, and that's likely what's driving oil prices

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Speaker 4: higher and the OPEC plus cut at least in the

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Speaker 4: short term.

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Speaker 1: Excellent kind of missed numbers today. How do you do

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Speaker 1: that if you're an energy company, I could make money

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Speaker 1: as an energy company. What happened xceon.

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Speaker 4: They've made money, And to be fair, they told you

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Speaker 4: they came right on in the range that they guided.

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Speaker 1: Okay, four weeks ago.

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Speaker 4: It's just going sense. It's a little slow to update sometimes. Okay,

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Speaker 4: you know, unless they're a little stubborn, you wouldn't know

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Speaker 4: anything about that. But they still generated significant free cash flow,

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Speaker 4: not enough to cover their buybacks, but they generated enough

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Speaker 4: free cash flow. The good thing is they came into

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Speaker 4: the quarter with almost thirty three billion dollars in cash,

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Speaker 4: the debt under zero point two times. It stayed at

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Speaker 4: that level, so they can still get to their thirty

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Speaker 4: five billion dollars of buybacks by the end of twenty

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Speaker 4: twenty four. Of course, that will probably mean higher leverage

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Speaker 4: unless Brent goes above eighty five.

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Speaker 2: Mike, how do you play earnings as a trader or

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Speaker 2: do you give us give us some trader insight for

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Speaker 2: for those at home that want to play along. I mean,

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Speaker 2: when an earning season comes around, usually analysts are low balling, right,

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Speaker 2: but in this case is Fernando points out, they haven't

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Speaker 2: caught up with the with the forecast cut that we

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Speaker 2: got out of xceon how do you how do you play?

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Speaker 2: Is an opportunity the earnings.

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Speaker 3: Well, the key thing to remember about energy equities versus

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Speaker 3: underlying energy measures as measured by the Bloomberg Energy Commodity Index,

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Speaker 3: is the equities typically outperforming. That was definitely the case

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Speaker 3: last year, and it's still been the case this year.

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Speaker 3: The key thing is you look like the XL that's

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Speaker 3: like the major ETF the tracks energy prices they're up.

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Speaker 3: It's almost almost the same thing as S and P

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Speaker 3: five hundred. So that's the key thing. Remember, the energy

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Speaker 3: equities can create more with less every day, and the

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Speaker 3: actual underlying commodities are succumbing to that, which is by

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Speaker 3: the price of crudial. Now it's first traded in about

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Speaker 3: two thousand and six. But the key thing I want

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Speaker 3: to point out is a recent day that you mentioned

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Speaker 3: supplying demand. I enjoyed putting in my energy outlook is

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Speaker 3: this month the latest estimates and Department Energy is this

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Speaker 3: month in July that the US is consuming about nine

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Speaker 3: million barrels a day of motor fuel gasoline, which includes

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Speaker 3: that's and a I know Matt loves that compared to

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Speaker 3: twenty nineteen. In July, it's five percent below. And here's

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Speaker 3: another statistic I really like pointing out that really accelerated

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Speaker 3: is bloomb New Energy Finance point out that global EV

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Speaker 3: sales are now about fifteen percent of new auto sales,

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Speaker 3: compared to the same period in twenty nineteen, it was

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Speaker 3: three percent. Wow, where's that going?

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Speaker 2: Yeah, that's crazy. And by the way, that's only going

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Speaker 2: up right, I mean, who was it? I think I

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Speaker 2: was talking a fatty b roll of the IA and

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Speaker 2: he said he expects it to go over twenty percent

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Speaker 2: this year.

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Speaker 3: So but those of us own ebs, I said, there's

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Speaker 3: no way I'm going back. It's just a better way

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Speaker 3: to get around, all right.

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Speaker 2: Fernando, I'm gonna go ahead and disagree with you.

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Speaker 3: There.

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Speaker 1: There's no replacement for displacement there, Mike, So, Fernando, our

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Speaker 1: good friends. Then in the Permian, I mean, in other

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Speaker 1: shell areas in US, they're pumping, aren't they.

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Speaker 4: Yeah, I mean, Chevron just broke their record seven hundred

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Speaker 4: and seventy two thousand barrels a day in the second quarter,

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Speaker 4: so they're trending towards that one million barrel a day

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Speaker 4: by twenty twenty six that they aimed in excellent as well,

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Speaker 4: producing significant barrels there. And I think we mentioned last time,

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Speaker 4: but we think the five lar just producers in the

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Speaker 4: Permian are going to account for nearly fifty percent of

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Speaker 4: production by the end of the decade. That's Excellent, Chevron, Conical, Phillips, Pioneer,

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Speaker 4: and Occidental. So they are growing. It's just not as

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Speaker 4: fast as that was once hoped. You know, the dreams

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Speaker 4: of us getting to sixteen eighteen million barrels a day

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Speaker 4: are probably in the rear view mirror.

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Speaker 1: So what do we do now?

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Speaker 4: We do about twelve and a half, just under twelve

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Speaker 4: and a half.

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Speaker 1: Okay, how much do we We're net exporter.

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Speaker 4: Right, yes and no, it depends because we don't have

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Speaker 4: all the crews that we need, so we import some.

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Speaker 4: And yes, on a net.

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Speaker 1: Stait, I think I can go down to Texas, Houston,

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Speaker 1: you know, raise some money from some good old boys

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Speaker 1: and start putting some holes in the ground, and eighty

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Speaker 1: dollars a barrel, I can make a lot of money.

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Speaker 5: You would.

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Speaker 2: My cost it's like forty.

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Speaker 4: Right, it's it's it's forty just on the drilling side.

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Speaker 4: But then you have all the I mean, you're not

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Speaker 4: cheap okay, and you have to pay for you you

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Speaker 4: have to pay for your CFO, you have to pay taxes,

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Speaker 4: so your overall fully loaded costs are higher.

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Speaker 1: Me a wildcat.

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Speaker 4: And then you don't get eighty dollars, you get a

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Speaker 4: discount on that. And you don't only produce oil, you

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Speaker 4: produce other things.

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Speaker 2: Hey, Mike, does does the SPR play any play at

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Speaker 2: all into the equation here? I mean, I know that

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Speaker 2: we we drained it, you know, to buy votes for

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Speaker 2: the Democratic Party before the midterms, which is you know

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Speaker 2: that's what the SPR was for.

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Speaker 1: Nice straight?

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Speaker 2: Are we gonna fill it back up? I thought the

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Speaker 2: idea was we're going to do that when it was low,

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Speaker 2: and it was low, and we didn't.

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Speaker 3: There was no hurry to do that. If you really

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Speaker 3: compare it to when I was pumping gas at a

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Speaker 3: gas station in nineteen seventy nine is a gas jockey

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Speaker 3: and gas price went over a dour. We had a

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Speaker 3: price in half gallons because of the analog tanks couldn't

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Speaker 3: do that. There is a massive excess of supply. If

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Speaker 3: you look at liquid fuels of US and Canada, around

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Speaker 3: four million barrels a day. For those old days when

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Speaker 3: US was a net importer are over. So the only

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Speaker 3: really reason you need the SPR notes for offsetting things

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Speaker 3: like hurricanes and stuff, because we could ramp up that

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Speaker 3: supply even more so if we want. I'm looking at

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Speaker 3: liquid fuel products in his countries. Basically all new high

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Speaker 3: include liquid fuels because they have to include ethnome from

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Speaker 3: the farm. It's almost twenty million barrels a day. Our

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Speaker 3: consumption peeked about fifteen years ago. So there's a very

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Speaker 3: bad trend for prices. And that's the key thing about SPR.

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Speaker 3: President Biden might go down as one of the best

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Speaker 3: oil traders in history.

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Speaker 2: All Right, all right, I heard it here. That's fascinating stuff.

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Speaker 1: Petroleum distribution engineer, that is the term.

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Speaker 2: That's what the gas jockey is. Were you pumping leaded gas?

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Speaker 1: Yes?

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Speaker 2: Was that leaded? Mike?

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Speaker 1: I guess he's yes. Stop all right, all right, Mike mcloan,

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Speaker 1: he's back at on the pump. Mike mcgloan, Fernando Valley.

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Speaker 1: They cover all the energy space for Bloomberg Intelligence. They

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Speaker 1: put it in perspective for us.

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Speaker 6: You're listening to the Team ken'shar Live program. Bloomberg Markets

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Speaker 6: weekdays at ten am Eastern on Bloomberg dot com, the

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Speaker 6: iHeartRadio app and the Bloomberg Business app, or listen on

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Speaker 6: demand wherever you get your podcasts.

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Speaker 1: Some of these central banks share we've had a lot

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Speaker 1: of activity, including the Bank at Japan today. It I mean,

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Speaker 1: when I look at the ECB, when I look at

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Speaker 1: the FED, it seems like they're saying we're pretty much done.

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Speaker 1: Is that kind of your takeaway?

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Speaker 7: Yeah, I mean we knew that we were close to

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Speaker 7: the end of the cycle, so the question was always

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Speaker 7: would it take another turn of the screw basically to

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Speaker 7: get us into the landing zone for both the FED

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Speaker 7: and the ECB. And you know, the the central banks

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Speaker 7: are signaling, are reinforcing that they essentially agree with the

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Speaker 7: markets that that we're near the end. I still feel that,

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Speaker 7: you know, we are currently in the state of I

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Speaker 7: was thinking of using the term disinflation euphoria, but I

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Speaker 7: think that kind of is a little too prioritive disinflation optimism,

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Speaker 7: because there is you know, there's there's a reason, there's

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Speaker 7: reason for it. But broadly speaking, I think that through

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Speaker 7: the course of this whole inflation cycle, the our kids

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Speaker 7: and policy makers have underestimated the resilience of the economy.

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Speaker 7: They sort of look through a lot of the you know,

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Speaker 7: the demand driven components of inflation, and people look very

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Speaker 7: much at sort of you know, the the the subcomponents

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Speaker 7: of you know of inflation used card.

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Speaker 2: I have no idea why economists ignore it. Seems like

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Speaker 2: ignore the demand driven side of it. Yeah, I don't

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Speaker 2: get why. Why is that?

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Speaker 7: Yeah, I think people want to declare victory, you know,

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Speaker 7: and I think policy makers, everybody wants this to be over.

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Speaker 2: Well, yesterday we talked with Cam Harvey at Duke and

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Speaker 2: he said, you know that the Fed's got it all wrong.

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Speaker 2: It's not three percent inflation, It's like zero point one

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Speaker 2: percent inflation. Like he said, the picture is completely skewed

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Speaker 2: by the housing the way they calculate housing in there.

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Speaker 2: And I think a lot of people agree with him

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Speaker 2: that it's much lower than the FED expects. Are you

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Speaker 2: worried that the FED put pushes us into a recession

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Speaker 2: by hiking too much.

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Speaker 7: I'm not worried that the FED pushes us into recession.

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Speaker 7: I think that it will take a recession, and I

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Speaker 7: don't think the FED, the FED, the ECB everybody is

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Speaker 7: now managing towards growth. So this is what's new here

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Speaker 7: with this inflationary cycle. As we get closer to the

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Speaker 7: to the top, they're more you know, looking on a

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Speaker 7: two sided view, trying to balance the soft landing that

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Speaker 7: everybody's talking about. And you know, I don't want to

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Speaker 7: policy error, as you know, maybe it's too easy of

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Speaker 7: glib of a word to say, because I understand what

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Speaker 7: they're trying to achieve here. But you know, to the

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Speaker 7: extent that spot inflationary numbers are showing a disinflationary trend,

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Speaker 7: I think people really underestimate the self reinforcing elements of inflation,

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Speaker 7: don't I think we have, you know, I mean I

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Speaker 7: don't want to sound like you know all back in

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Speaker 7: my day, but I think that that that you know,

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Speaker 7: the that that the global central bank community, you know,

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Speaker 7: back when they did the new Framework and all that,

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Speaker 7: they said, inflection, will we know how to deal with

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Speaker 7: it when we see it, And you know, they were

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Speaker 7: kind of caught deer in the headlights. They scrambled to

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Speaker 7: catch up. But I think there's still this this this

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Speaker 7: tendency to think that that to to underestimate the forces

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Speaker 7: of inflation pressures once you unleash them. For example, you

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Speaker 7: know the nominal spending. I mean we look in you know,

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Speaker 7: corporate profits, and you look at how you have to

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Speaker 7: think in nominal terms a lot here and you see,

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Speaker 7: you know, the corporate America is doing well. They're still

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Speaker 7: able to pass the price pricing, you know, is being

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Speaker 7: passed through to the consumers. Europe is a little bit

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Speaker 7: different story. We're seeing obviously more slow down in Germany

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Speaker 7: in particular, but uh, they're there. I think there are

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Speaker 7: two things that really stand out to me. One is

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Speaker 7: that the underestimating the self reinforcing elements of inflationary dynamics

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Speaker 7: once it sets in. And the other is that I

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Speaker 7: think people still even today underestimate the power of the

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Speaker 7: fiscal impulse that was put into the system. And economists

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Speaker 7: and you know, the central bankers they don't like to

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Speaker 7: especially the FED, they don't like to talk about fiscal policy,

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Speaker 7: but you know, we still have you know this these it's.

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Speaker 2: Too big to be left out of the station, still

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Speaker 2: feeding through, it's still feeding the Paul. This morning, as

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Speaker 2: I was driving to work, I was on a call.

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Speaker 2: I'm driving right now, I'm driving Alfa Romeo we'll talk

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Speaker 2: about that. But I was on the phone with the

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Speaker 2: CEO of.

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Speaker 1: Masarati apparently not paying tolls either.

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Speaker 2: No, John, what do you drive?

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Speaker 6: Uh?

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Speaker 1: Super a super got everybody off track?

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Speaker 2: Sorry, No, I was just no, No, Uh, Super is

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Speaker 2: a great car. I was talking to CEO of Maserati,

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Speaker 2: David de Grasso, and he said they still have inflation.

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Speaker 2: They still feel it pretty strongly in their input costs, right,

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Speaker 2: and so they're passing that along. To prove your point,

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Speaker 2: the Maserati Gricalai Trofeo, which is a small suv, is

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Speaker 2: going for over one hundred thousand dollars.

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Speaker 1: Yeah, yep, which no problem for Memlania. All right. Soissan,

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Speaker 1: before you were found at sgh Macroadvisors in two thousand

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Speaker 1: and nine, you made your living trading currencies here. So

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Speaker 1: I gotta ask you. I got the dollar down, I

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Speaker 1: don't know, ten percent from its high back in the fall.

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Speaker 5: Here.

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Speaker 1: What you call on the dollar here? Is there a

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Speaker 1: bearish call on the Dollar's just just a little trade down?

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Speaker 7: No, I think there's a bearish call on the dollar.

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Speaker 7: I think, as you know, I mean, it might seem

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Speaker 7: at odds with the notion that we still have inflation

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Speaker 7: we have more room to hike rates, but you know,

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Speaker 7: we have to look at it, you know, and this

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Speaker 7: is always a tricky part with currencies. You know, to

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Speaker 7: have a dollar call is really you got to look

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Speaker 7: at what dollar yen is kind of a different animal than.

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Speaker 2: Almoly goodness what happened yesterday.

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Speaker 7: But yeah, you know, I they pulled it off very nicely.

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Speaker 7: I think, Yeah, the Bank of Japan, you know, they

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Speaker 7: and you know, it's it's people were expecting this to

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Speaker 7: be sort of a huge, you know, explosive event for markets.

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Speaker 2: We had to end still in the same range that

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Speaker 2: it was one forty, right, US treasure you're still under four.

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Speaker 7: Yeah, And importantly, the JJB yields, you know, they they

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Speaker 7: went up to like fifty six basis points and settled

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Speaker 7: in like the mid fifties. So it's not like they

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Speaker 7: lifted a fifty you know, fifty basis point ceiling and

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Speaker 7: it went and it went to one hundred. And you

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Speaker 7: know the reason is, and this is why I think

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Speaker 7: you Eda did a nice job on this is that

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Speaker 7: and we've kind of been flagging this that the tactical

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Speaker 7: window for them to do this what was going to

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Speaker 7: be at a time when there wasn't a lot of

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Speaker 7: bearish pressure on global bond markets, which you know, we

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Speaker 7: look at what's happening in the US and what's happening

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Speaker 7: the ed to be it was a really nice window

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Speaker 7: for them to sort of, uh to walk in and

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Speaker 7: you know and manage it. So Dollar call, you know,

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Speaker 7: I I think, you know, we're close to the end

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Speaker 7: of the cycle. I don't think we're at the end

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Speaker 7: of the cycle. I think we still have a couple

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Speaker 7: more hikes, you know. I think we have at least

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Speaker 7: one more hike left, you know, for for the fad

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Speaker 7: And I sort of think that, you know, looking ahead,

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Speaker 7: the central banks might need to, you know, put another

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Speaker 7: turn on the screw on tightening because.

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Speaker 2: Well Pal said that, he said September, he kind of

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Speaker 2: warned us about September.

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Speaker 7: Right, Yeah, yeah, I mean September. The market is a

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Speaker 7: price to everything out you know, for the US right now.

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Speaker 7: And I think that the issue with September is just

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Speaker 7: that it's going to be hard for them to explain

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Speaker 7: or to even want to, you know, press for a

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Speaker 7: hike when you know, when when the when the inflation

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Speaker 7: numbers are going to are most likely going to come

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Speaker 7: in benign, you know, and markets have been expecting that,

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Speaker 7: and I think there's no reason.

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Speaker 2: But they can prove their point. He can say, listen,

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Speaker 2: I was telling you all year, I want to get

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Speaker 2: to two percent. Three percent is not good enough. Yeah,

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Speaker 2: you know. Yeah.

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Speaker 7: I think that's the broader point is that the both

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Speaker 7: the ECB and the FAD, I think their current stance.

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Speaker 7: I think the you know, putting aside the twenty twenty

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Speaker 7: three numbers, if you look at kind of the twenty

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Speaker 7: twenty four forecast, I think it's a little aspirational the

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Speaker 7: pace at which that they expect that, you know, that inflation,

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Speaker 7: the disinflationary trend is going to continue when that manifests itself.

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Speaker 7: You know, I still think the UCB is going.

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Speaker 2: To hike in September summer.

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Speaker 1: Yeah, fun, I'm done. I'm done. I've taken a recession

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Speaker 1: off the table. I'm done with rate hikes. I got

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Speaker 1: earnings troughing here. I'm set up for a ripping market.

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Speaker 1: That's my call.

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Speaker 7: I'm still one of the problems for traders has been

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Speaker 7: that I think they haven't been able to square the

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Speaker 7: circle with interest rate hikes versus stock market going up.

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Speaker 2: It can still happen.

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Speaker 1: Yeah, all right, Sissan, thank you so much. Sassan Goa Rimani, President,

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Speaker 1: CEO and founder of sg H Macro Advisors. We appreciate

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Speaker 1: you coming here.

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Speaker 6: You're listening to the tape. Can's our live program Bloomberg

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00:18:03,600 --> 00:18:07,199
Speaker 6: Markets weekdays at ten am Eastern on Bloomberg Radio, the

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00:18:07,240 --> 00:18:10,480
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Speaker 1: The Bloomberg Intelligence b I go on yourternal Bloomberg Intelligence

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00:18:22,600 --> 00:18:25,680
Speaker 1: is the biggest research department on Wall Street, and more importantly,

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00:18:26,400 --> 00:18:28,720
Speaker 1: I believe the best research department on Wall Street. So

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00:18:28,760 --> 00:18:31,480
Speaker 1: we have access to all their analysts, including Matt Hendrickson.

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Speaker 1: He's a senior Ecura analyst covering medical technology. He joins

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Speaker 1: us here in our Bloomberg Interactive Broker Studio. And one

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Speaker 1: of the things we like about our BI analysts often

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00:18:39,680 --> 00:18:42,200
Speaker 1: bring us companies that we never would have thought about,

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Speaker 1: never would have really you know, think of as an investment.

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Speaker 1: But here's dex Com. D x CM is a symbol.

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Speaker 1: This is a fifty billion dollar market cap. Stock hit

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Speaker 1: fifty two week high today, it's up twenty one percent. Matt.

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Speaker 1: What is Dexcom and what's going on with this stock today?

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Speaker 8: Yeah, SOX makes what they're called cgms. It's that's short

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Speaker 8: for continuous glucose monitors, And basically this technology is replacing

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Speaker 8: what is antiquated, which is fingersticks, which is you have

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Speaker 8: to prick your finger three or four times a day

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Speaker 8: to get your glucose reading.

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Speaker 1: Wasn't there a company that kind of did that a

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Speaker 1: little bit of their nose or something.

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Speaker 4: Oh, that's a that's a different story, but the same thing.

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Speaker 8: Though, prick your finger, get four ings a day, that's antiquated.

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Speaker 8: It hurts, it's a pain in the butt. Yeah, exactly.

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Speaker 8: So cgms come in. It's on your arm or on

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Speaker 8: your abdomen. It does a reading every five minutes, so

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Speaker 8: that's two hundred eight readings the day without pricking your finger.

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Speaker 8: You get the trends, you get the ups the downs.

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Speaker 8: It's predictive, so it says you're going to be up,

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Speaker 8: you're going to be down. That's what Type one diabetes

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Speaker 8: patients need to be able to treat. You know, the

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Speaker 8: highs and the lows.

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Speaker 2: So it's amazing that it's I mean, it's amazing that

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Speaker 2: a fifty four billion dollar company just has one kind

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Speaker 2: of trick. Yeah, I mean that's all they focus on.

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Speaker 8: That's all they focus on. But that's all the trick

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Speaker 8: they need right now, because you have thirty five million

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Speaker 8: diabetic patients in.

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Speaker 2: The US alone and climbing I'm assuming.

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Speaker 8: Climbing, yes, and we'll get into those type two patients

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Speaker 8: a little bit more, but right now they're only focusing

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Speaker 8: on the type ones and those patients that really.

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Speaker 2: What's the difference, by the way, type one type two.

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Speaker 8: Oh so type one is more genetic, and you your

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Speaker 8: pancreas cannot create insulin, so you need to inject yourself

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Speaker 8: with insulin to lower your blood sugar. But you know

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Speaker 8: the problem with taking too much insulin is that your

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Speaker 8: low blood sugar and then you could pass out or

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Speaker 8: even worse. That's why you need the CGM or that's.

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Speaker 2: Why you need's that you inherit that's not yeah, that's all.

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Speaker 2: That's drinking way too much No.

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Speaker 8: No, no, that's uh, that's that's when you get the

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Speaker 8: type two and by drinking so much soda or eating

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Speaker 8: so many candy bars. Your pancreas just cannot produce enough

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Speaker 8: insulin anymore, and it kind of just shuts down because

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Speaker 8: it's overloaded.

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Speaker 2: And that's the I guess the big problem that we're

435
00:21:02,480 --> 00:21:07,160
Speaker 2: looking at in terms of the climbing numbers.

436
00:21:06,800 --> 00:21:09,520
Speaker 8: Right, yes, and so when you see like the climbing numbers,

437
00:21:09,560 --> 00:21:11,840
Speaker 8: it's mostly type two and it's mostly due to these

438
00:21:12,280 --> 00:21:13,959
Speaker 8: lifestyle decisions.

439
00:21:13,440 --> 00:21:15,680
Speaker 2: Just eating nerds all day long, yeah.

440
00:21:15,359 --> 00:21:17,440
Speaker 8: And you know, sitting at your desk all day long.

441
00:21:18,000 --> 00:21:20,280
Speaker 1: All right, So dex Com this is a way to

442
00:21:20,359 --> 00:21:22,400
Speaker 1: play that market. And the day of some earnings recently

443
00:21:22,520 --> 00:21:22,760
Speaker 1: or some.

444
00:21:22,800 --> 00:21:27,120
Speaker 8: Yeah, so they reported last night and their recent product there,

445
00:21:27,240 --> 00:21:31,880
Speaker 8: it's the seventh generation so obviously called G seven that

446
00:21:32,040 --> 00:21:35,800
Speaker 8: launched earlier this year, and that's helped boost revenue. So

447
00:21:35,800 --> 00:21:37,960
Speaker 8: they beat in the quarter and then they raised their guidance.

448
00:21:38,000 --> 00:21:39,840
Speaker 8: So now they're up to three and a half billion

449
00:21:39,880 --> 00:21:43,439
Speaker 8: to three point five to five billion. That's twenty to

450
00:21:43,480 --> 00:21:46,600
Speaker 8: twenty two percent growth on a three billion dollar revenue

451
00:21:46,680 --> 00:21:50,680
Speaker 8: run rate. So the market like that, and so we've

452
00:21:50,680 --> 00:21:52,399
Speaker 8: seen the kind of the rally today.

453
00:21:52,440 --> 00:21:52,719
Speaker 5: All right.

454
00:21:52,760 --> 00:21:56,000
Speaker 1: So in the world of kind of medical equipment, what

455
00:21:56,040 --> 00:21:57,680
Speaker 1: are some of the hotters. What are the areas that

456
00:21:57,680 --> 00:21:59,000
Speaker 1: that kind of get your attention?

457
00:21:59,440 --> 00:22:02,479
Speaker 8: Yeah, I mean, and so the big themes in medtech

458
00:22:02,560 --> 00:22:06,000
Speaker 8: right now is is diabetes is one and robotics is

459
00:22:06,040 --> 00:22:11,880
Speaker 8: another one. The main company participating in robotics is Intuitive Surgical.

460
00:22:11,480 --> 00:22:14,159
Speaker 1: Is Surgical I SRG.

461
00:22:14,400 --> 00:22:17,080
Speaker 8: Okay, and so you're talking about a fifty billion dollar company,

462
00:22:17,160 --> 00:22:18,880
Speaker 8: this is one hundred billion dollar market cap.

463
00:22:18,960 --> 00:22:21,160
Speaker 1: You just don't know these companies. Where have I been?

464
00:22:21,680 --> 00:22:21,959
Speaker 6: All right?

465
00:22:22,000 --> 00:22:22,399
Speaker 1: What did they do?

466
00:22:22,720 --> 00:22:28,520
Speaker 8: So they are creating robotics systems that help with various surgeries.

467
00:22:28,800 --> 00:22:32,000
Speaker 8: It can be anything from general surgery, so hernia repair,

468
00:22:32,119 --> 00:22:33,080
Speaker 8: bariatric surgery.

469
00:22:33,400 --> 00:22:34,159
Speaker 1: Robot is doing this.

470
00:22:34,359 --> 00:22:36,639
Speaker 8: Yeah, well, I mean it's so this is where you

471
00:22:36,720 --> 00:22:38,520
Speaker 8: get your kids to start playing video games.

472
00:22:38,560 --> 00:22:39,359
Speaker 1: Okay.

473
00:22:39,520 --> 00:22:42,040
Speaker 8: It's controlled by a video game or what looks like

474
00:22:42,080 --> 00:22:43,160
Speaker 8: a video game controller.

475
00:22:43,280 --> 00:22:43,480
Speaker 1: Okay.

476
00:22:43,680 --> 00:22:46,760
Speaker 2: So the surgeon uses a joystick essentially to do things

477
00:22:46,960 --> 00:22:49,120
Speaker 2: in extremely precise way exactly.

478
00:22:49,119 --> 00:22:51,240
Speaker 8: And but basically, you know, even you know, when you

479
00:22:51,280 --> 00:22:53,080
Speaker 8: talk think about a surgeon, what do they have? They

480
00:22:53,119 --> 00:22:56,000
Speaker 8: have a very steady hand. But even the steadiest hand,

481
00:22:56,119 --> 00:22:57,040
Speaker 8: by the steady.

482
00:22:56,800 --> 00:22:59,160
Speaker 1: Yeah, you know, I would not want to it's John Tucker.

483
00:22:59,400 --> 00:23:02,440
Speaker 2: Yeah, Paul's hands are too shaky. I knew a surgeon

484
00:23:02,520 --> 00:23:04,760
Speaker 2: in London he had to knock back basically a bottle

485
00:23:04,800 --> 00:23:06,840
Speaker 2: of Scotch before he could do any kind of operation.

486
00:23:07,040 --> 00:23:09,240
Speaker 1: That's not good. Yeah, and this is the guy you

487
00:23:09,320 --> 00:23:09,560
Speaker 1: went to.

488
00:23:09,920 --> 00:23:11,360
Speaker 2: Yes, it's a friend of mine.

489
00:23:11,480 --> 00:23:15,800
Speaker 8: Well, yeah, that's why you should never mix friends and work.

490
00:23:15,880 --> 00:23:20,440
Speaker 2: Right, So, so intuitive surgical. I wonder if there's any

491
00:23:20,720 --> 00:23:24,760
Speaker 2: AI involved. I've noticed we've all noticed, I think lately,

492
00:23:24,880 --> 00:23:28,119
Speaker 2: that every company seems to be using artificial intelligence. Are

493
00:23:28,200 --> 00:23:30,280
Speaker 2: you seeing that in any of the companies that you.

494
00:23:30,359 --> 00:23:35,360
Speaker 8: Cover, Yeah, there's it's AI, and it's for medtech. It's

495
00:23:35,359 --> 00:23:39,960
Speaker 8: specifically machine learning. So you're learning from the past procedures,

496
00:23:40,400 --> 00:23:44,960
Speaker 8: whether it's surgery, whether it's knee replacements, and you're learning

497
00:23:45,040 --> 00:23:47,000
Speaker 8: to see what went right, what went wrong. You're learning

498
00:23:47,040 --> 00:23:49,920
Speaker 8: with these patients how the recovery is, and then you're

499
00:23:49,960 --> 00:23:52,360
Speaker 8: trying to use those and you're trying to show the doctor, hey,

500
00:23:52,760 --> 00:23:55,200
Speaker 8: why don't we try this method next time? And so

501
00:23:55,280 --> 00:23:57,920
Speaker 8: it's kind of you're building this big data machine learning

502
00:23:57,960 --> 00:24:00,520
Speaker 8: aspect to try to really streamline and kind of make

503
00:24:00,600 --> 00:24:03,080
Speaker 8: the surgery just more efficient.

504
00:24:03,440 --> 00:24:05,320
Speaker 1: All right, the two companies are three companies you've given

505
00:24:05,359 --> 00:24:07,320
Speaker 1: us so far, they're all up twenty thirty percent this year.

506
00:24:07,880 --> 00:24:10,680
Speaker 1: So in a medical technol and medical equipment business, this

507
00:24:10,840 --> 00:24:13,560
Speaker 1: is just a play that post pandemic, we're now going

508
00:24:13,600 --> 00:24:16,120
Speaker 1: back and getting procedures done. So your companies are doing well.

509
00:24:16,359 --> 00:24:18,720
Speaker 8: Yeah, I mean that's pretty much. Yeah, you're just answering

510
00:24:18,880 --> 00:24:20,440
Speaker 8: for me. Yeah, I can do his job.

511
00:24:20,480 --> 00:24:22,360
Speaker 1: I go want into Fidelity tomorrow and say buy these

512
00:24:22,359 --> 00:24:23,680
Speaker 1: stocks because.

513
00:24:24,000 --> 00:24:25,840
Speaker 8: Yeah, but you know what, the thing though, is that

514
00:24:26,480 --> 00:24:30,000
Speaker 8: because of the rally of this year so far, this earnings,

515
00:24:30,000 --> 00:24:32,680
Speaker 8: you've had to be have had a perfect report or

516
00:24:32,760 --> 00:24:35,760
Speaker 8: else the market's going to kick back. And you know,

517
00:24:35,920 --> 00:24:41,680
Speaker 8: Intertutive Surgical, for example, they beat estimates, they raised guidance,

518
00:24:41,880 --> 00:24:45,240
Speaker 8: but in their call they made one comment that there

519
00:24:45,320 --> 00:24:47,680
Speaker 8: is slower growth in bariatric surgery, which is just a

520
00:24:47,760 --> 00:24:50,399
Speaker 8: small portion of the total surgeries, and the reason was

521
00:24:50,440 --> 00:24:54,159
Speaker 8: that patients are trying ozeenpic and other weight loss drugs

522
00:24:54,240 --> 00:24:59,680
Speaker 8: before going to weight loss surgery, and so that big competition,

523
00:25:00,000 --> 00:25:01,440
Speaker 8: a big competition there.

524
00:25:02,080 --> 00:25:03,879
Speaker 2: Yeah, why go under the knife if you can just

525
00:25:04,000 --> 00:25:06,600
Speaker 2: give yourself a shot in the arm or wherever they

526
00:25:06,680 --> 00:25:08,880
Speaker 2: get it and and lose weight. That way.

527
00:25:09,000 --> 00:25:10,399
Speaker 1: All right, are you gonna you're gonna come back and

528
00:25:10,400 --> 00:25:12,480
Speaker 1: talk to U about zempek at zempic or whatever it is.

529
00:25:12,560 --> 00:25:13,520
Speaker 1: I don't, I can't. Image.

530
00:25:13,520 --> 00:25:14,399
Speaker 2: Got to get me a prescription.

531
00:25:14,560 --> 00:25:17,200
Speaker 1: Man, You got a money buddy. All right, Matt, thanks

532
00:25:17,200 --> 00:25:19,439
Speaker 1: so much for joining us. Matt Hendrickson, he's a senior

533
00:25:19,480 --> 00:25:23,520
Speaker 1: equity analyst covering the medtech space for Bloomberg Intelligence and again,

534
00:25:23,640 --> 00:25:26,879
Speaker 1: terminal users can find all the research at b I Go.

535
00:25:28,600 --> 00:25:31,960
Speaker 6: You're listening to the team. Ken's are Live program Bloomberg

536
00:25:32,080 --> 00:25:35,280
Speaker 6: Markets weekdays at ten am Eastern on Bloomberg dot com,

537
00:25:35,520 --> 00:25:38,640
Speaker 6: the iHeartRadio app, and the Bloomberg Business App, or listen

538
00:25:38,720 --> 00:25:40,840
Speaker 6: on demand wherever you get your podcasts.

539
00:25:41,920 --> 00:25:45,800
Speaker 1: All right, let's talk space. Let's talk investing in space.

540
00:25:46,040 --> 00:25:48,560
Speaker 1: Justice Palmer joins this year. He's the CEO and founder

541
00:25:48,800 --> 00:25:51,040
Speaker 1: for Tuna Investments. He joins us here in our Bloomberg

542
00:25:51,359 --> 00:25:55,360
Speaker 1: Interactive Broker studio. He is streaming on YouTube. Justice talk

543
00:25:55,359 --> 00:25:57,240
Speaker 1: to us about Fortuna, what do you guys do, And

544
00:25:57,320 --> 00:26:00,280
Speaker 1: talk to us about kind of your investments in space.

545
00:26:00,560 --> 00:26:04,480
Speaker 9: Absolutely so. We're an award winning venture capital firm. We've

546
00:26:04,560 --> 00:26:08,280
Speaker 9: had a tremendous track record in other industries. We famously

547
00:26:08,320 --> 00:26:10,960
Speaker 9: made a name for ourselves back in twenty sixteen, twenty seventeen.

548
00:26:11,400 --> 00:26:13,800
Speaker 9: That was back when Elon and Tesla were just beginning

549
00:26:13,800 --> 00:26:17,720
Speaker 9: to take off. It wasn't the star. Tesla was not

550
00:26:17,800 --> 00:26:20,760
Speaker 9: the star then that it is now. Just to give

551
00:26:20,760 --> 00:26:23,200
Speaker 9: you context, Elon was selling like sixty thousand cars a year.

552
00:26:23,520 --> 00:26:25,720
Speaker 9: He's selling two million cars a year now.

553
00:26:25,800 --> 00:26:27,800
Speaker 1: And you guys invested in So we didn't.

554
00:26:28,040 --> 00:26:30,040
Speaker 9: We stayed away from Tesla. But what we did was

555
00:26:30,119 --> 00:26:32,880
Speaker 9: we realized it was the lithium ion batteries that were

556
00:26:32,880 --> 00:26:35,440
Speaker 9: fueling this electrification. And so what we did is we

557
00:26:35,520 --> 00:26:38,440
Speaker 9: founded and we co founded a couple companies in that industry.

558
00:26:38,920 --> 00:26:40,800
Speaker 9: One went to a billion dollars on NASDAC and the

559
00:26:40,880 --> 00:26:42,920
Speaker 9: other one was sold last year for four hundred and

560
00:26:42,960 --> 00:26:45,680
Speaker 9: sixty million dollars. So we've had a tremendous track record

561
00:26:45,680 --> 00:26:48,200
Speaker 9: in other industries. Now we've turned our attention to this

562
00:26:48,359 --> 00:26:50,760
Speaker 9: new space economy. We believe this to be a once

563
00:26:50,800 --> 00:26:52,840
Speaker 9: in a lifetime opportunity and we're so happy to be

564
00:26:52,880 --> 00:26:53,440
Speaker 9: on the front line.

565
00:26:53,720 --> 00:26:58,119
Speaker 2: And so Starfighters Space is the first investment that you're making.

566
00:26:58,720 --> 00:27:00,920
Speaker 2: Tell us about this company is not everyone's heard of it.

567
00:27:01,280 --> 00:27:04,280
Speaker 9: Yeah, So it's a private company. They're they're located at

568
00:27:04,280 --> 00:27:07,040
Speaker 9: the John F. Kennedy Space Center at NASA, right beside

569
00:27:07,080 --> 00:27:12,160
Speaker 9: Jeff and Elon. And so what Elon and obviously SpaceX

570
00:27:12,200 --> 00:27:14,359
Speaker 9: gets a lot of headlines. And so the secret sauce

571
00:27:14,400 --> 00:27:17,880
Speaker 9: what Elon's doing is he's got this Falcon nine rocket cranking.

572
00:27:18,040 --> 00:27:20,040
Speaker 9: He's he's taking it up every single week, and he's

573
00:27:20,080 --> 00:27:23,440
Speaker 9: focusing on the heavy payload, big satellites, heavy payload. That's

574
00:27:23,480 --> 00:27:25,680
Speaker 9: what he's got going on. And so for us at Fortuna,

575
00:27:25,800 --> 00:27:27,920
Speaker 9: we realize there's a void in the market because the

576
00:27:27,960 --> 00:27:30,400
Speaker 9: small satellites are actually being neglected in a certain way

577
00:27:30,600 --> 00:27:33,240
Speaker 9: and technology is actually getting smaller and smaller and smaller.

578
00:27:33,600 --> 00:27:36,000
Speaker 9: So we've made a fifty million dollar commitment to Starfighters

579
00:27:36,400 --> 00:27:39,240
Speaker 9: to help grow this beautiful space ecosystem that's that's starting

580
00:27:39,240 --> 00:27:39,600
Speaker 9: to emerge.

581
00:27:39,680 --> 00:27:43,520
Speaker 2: So small satellites, they're like shoebox size satellites right that

582
00:27:43,640 --> 00:27:48,639
Speaker 2: are getting launched in the dozens with these kind of

583
00:27:49,200 --> 00:27:52,360
Speaker 2: you have a f one to zero four supersonic aircraft,

584
00:27:52,520 --> 00:27:54,440
Speaker 2: How did they how do they launch those? They just

585
00:27:54,560 --> 00:27:56,680
Speaker 2: fly up to the top and kick them out or

586
00:27:57,240 --> 00:28:00,000
Speaker 2: what is their paid delivery, you know your stuff.

587
00:28:00,200 --> 00:28:00,720
Speaker 1: It's amazing.

588
00:28:00,760 --> 00:28:03,320
Speaker 9: So yeah, so the short answers, Yes, technologies getting smaller

589
00:28:03,320 --> 00:28:05,040
Speaker 9: and smaller, and so they could be anywhere from like

590
00:28:05,040 --> 00:28:07,000
Speaker 9: a pizza box all the way to even the size

591
00:28:07,000 --> 00:28:09,960
Speaker 9: of your iPhone. And they're called small SATs nanosats. And

592
00:28:10,119 --> 00:28:12,719
Speaker 9: so Starfighters with our funding is actually going to get

593
00:28:12,720 --> 00:28:15,000
Speaker 9: their launch license. So they expect to have their launch

594
00:28:15,080 --> 00:28:17,359
Speaker 9: license in the next eight to twelve months. And as

595
00:28:17,400 --> 00:28:19,560
Speaker 9: soon as we get that launch license, as Paul said,

596
00:28:19,600 --> 00:28:21,600
Speaker 9: we already have the nine F one oh four fighter

597
00:28:21,680 --> 00:28:26,200
Speaker 9: jets that fly mock two speeds tremendously fast. Obviously, and

598
00:28:26,240 --> 00:28:28,280
Speaker 9: if you think about the nine fighter jets that we have,

599
00:28:28,800 --> 00:28:31,879
Speaker 9: that's bigger than I don't know Switzerland's you know air force,

600
00:28:31,960 --> 00:28:34,520
Speaker 9: are certain countries air force. Right, So we've got this

601
00:28:34,600 --> 00:28:37,000
Speaker 9: as a private company, one hundred percent own, no debt,

602
00:28:37,240 --> 00:28:39,280
Speaker 9: and we look really forward to taking this next step

603
00:28:39,360 --> 00:28:40,400
Speaker 9: in terms of the launch game.

604
00:28:41,000 --> 00:28:44,680
Speaker 1: How do retail investors play, you know, investing in space.

605
00:28:45,560 --> 00:28:47,480
Speaker 9: Sure, and so it's a bit of a loaded question,

606
00:28:47,600 --> 00:28:52,080
Speaker 9: but here's what I'll say. I believe that the mark

607
00:28:52,160 --> 00:28:53,880
Speaker 9: So we've come off the worst market crash in the

608
00:28:53,960 --> 00:28:57,160
Speaker 9: last twenty years, since two thousand and eight, almost twenty years,

609
00:28:57,720 --> 00:29:00,760
Speaker 9: and so a lot of the stocks have been extremely

610
00:29:01,360 --> 00:29:04,920
Speaker 9: depressed in that industry, in all industries, albeit obviously there's

611
00:29:04,920 --> 00:29:07,080
Speaker 9: been an uptick in the last couple of months or so.

612
00:29:07,440 --> 00:29:09,840
Speaker 9: But we have fortuna believe that the markets to perform

613
00:29:09,960 --> 00:29:13,080
Speaker 9: extremely well over the next couple of years. Reason being

614
00:29:13,200 --> 00:29:15,200
Speaker 9: is there's trillions of dollars of cash on the sidelines.

615
00:29:15,600 --> 00:29:21,880
Speaker 9: We've we've seen peak interest rates. We also realize that

616
00:29:22,280 --> 00:29:24,960
Speaker 9: there's gonna be a many activity galore, and there's a

617
00:29:25,000 --> 00:29:26,800
Speaker 9: lot and it's a US presidential here coming up, so

618
00:29:26,840 --> 00:29:29,040
Speaker 9: there's a lot of really interesting catalysts coming up for

619
00:29:29,120 --> 00:29:31,880
Speaker 9: the equity markets. We think the market's going to perform well.

620
00:29:32,160 --> 00:29:35,160
Speaker 9: And within their space has been a depressed category that

621
00:29:35,280 --> 00:29:36,680
Speaker 9: we think is going to perform very well of the

622
00:29:36,680 --> 00:29:37,360
Speaker 9: next couple of years.

623
00:29:38,040 --> 00:29:42,080
Speaker 2: So what I was gonna ask, what else is there

624
00:29:42,200 --> 00:29:47,479
Speaker 2: besides launching satellites. We hear so much about space mining,

625
00:29:47,600 --> 00:29:50,120
Speaker 2: but I don't think anyone's ever really achieved that, and

626
00:29:50,200 --> 00:29:53,760
Speaker 2: it seems like it must be a decade away. So

627
00:29:53,840 --> 00:29:54,240
Speaker 2: what else?

628
00:29:54,360 --> 00:29:54,600
Speaker 5: I mean?

629
00:29:54,800 --> 00:29:56,600
Speaker 2: I know Elon Musk wants to go to Mars and

630
00:29:56,680 --> 00:29:58,840
Speaker 2: put a colony there. What are we talking about?

631
00:29:59,320 --> 00:30:01,640
Speaker 9: Yeah, so we at Fortuna. So we're blasted. We've got

632
00:30:01,640 --> 00:30:04,040
Speaker 9: you know, almost thirty individuals, thirty folks on our team.

633
00:30:04,320 --> 00:30:07,280
Speaker 9: You know, these are research analysts, these are investment bankers.

634
00:30:07,400 --> 00:30:09,960
Speaker 9: CCFA is all sorts of brilliant people. So we actually

635
00:30:09,960 --> 00:30:12,280
Speaker 9: get pitched three, four, up to five times a day

636
00:30:12,280 --> 00:30:15,040
Speaker 9: from various space companies looking for investment. So to answer

637
00:30:15,080 --> 00:30:17,520
Speaker 9: your question, Matt, we see it all or not all,

638
00:30:17,680 --> 00:30:19,640
Speaker 9: but we see a lot of really really interesting things

639
00:30:19,720 --> 00:30:22,320
Speaker 9: coming through our desks. And so I agree with you.

640
00:30:22,440 --> 00:30:25,800
Speaker 9: I think that the space mining is still maybe eight

641
00:30:25,880 --> 00:30:29,520
Speaker 9: to twelve years out potentially, but there are interesting applications

642
00:30:29,600 --> 00:30:32,360
Speaker 9: such as, for example, solar solar energy. We have for

643
00:30:32,440 --> 00:30:34,440
Speaker 9: tune our big and solar energy. We've got solar energy

644
00:30:34,440 --> 00:30:37,160
Speaker 9: investments here in the US. But just conceivably, if you

645
00:30:37,200 --> 00:30:40,360
Speaker 9: think about it, the Sun that we get on planet

646
00:30:40,480 --> 00:30:43,960
Speaker 9: Earth here, it's actually diluted, It's diluted by the Earth's atmosphere,

647
00:30:44,040 --> 00:30:46,280
Speaker 9: and we got a very deluded version of the Sun.

648
00:30:46,680 --> 00:30:48,360
Speaker 9: And so if, if, and when we're able to have

649
00:30:48,960 --> 00:30:52,800
Speaker 9: satellites with solar in outer space, you think about that

650
00:30:53,200 --> 00:30:56,320
Speaker 9: it's gonna be ten times, ten thousand times more powerful.

651
00:30:56,560 --> 00:30:59,640
Speaker 9: Clean sun and things like this are going to be

652
00:30:59,680 --> 00:31:02,200
Speaker 9: the few of this beautiful industries that's just starting to

653
00:31:02,240 --> 00:31:02,720
Speaker 9: come together.

654
00:31:03,760 --> 00:31:06,560
Speaker 2: The scoard would be so long, you know, yeah, exactly.

655
00:31:06,840 --> 00:31:11,040
Speaker 1: So, I mean, kind of what's the VC world like

656
00:31:11,120 --> 00:31:13,520
Speaker 1: today in terms of raising capital deploying capital. We've got

657
00:31:13,600 --> 00:31:16,720
Speaker 1: higher interest rates. The world's really changed from that free

658
00:31:16,760 --> 00:31:18,600
Speaker 1: money of just you know a couple of years ago.

659
00:31:19,360 --> 00:31:20,920
Speaker 1: How has it kind of impacted your business?

660
00:31:21,480 --> 00:31:24,000
Speaker 9: Yeah, so that's just it. The growth stuff has been

661
00:31:24,080 --> 00:31:26,960
Speaker 9: really really hurt. Vcs are very shy to put money out,

662
00:31:27,240 --> 00:31:29,040
Speaker 9: although that might have changed in the last thirty days

663
00:31:29,080 --> 00:31:31,959
Speaker 9: with this AI push. Aside from the AI, it's been

664
00:31:32,000 --> 00:31:34,640
Speaker 9: a really really tight industry. A lot of guys are

665
00:31:34,720 --> 00:31:38,200
Speaker 9: licking their chops because they've financed companies at extremely high valuations,

666
00:31:38,320 --> 00:31:40,240
Speaker 9: many of which will probably never be seen before.

667
00:31:40,640 --> 00:31:41,520
Speaker 2: So it's really tricky.

668
00:31:41,600 --> 00:31:44,240
Speaker 9: But for us at Fortuna, we monitored the space industry.

669
00:31:44,360 --> 00:31:45,920
Speaker 9: We actually thought it was a little bit two point

670
00:31:46,000 --> 00:31:47,800
Speaker 9: over the last couple of years with the spack craze

671
00:31:47,800 --> 00:31:49,680
Speaker 9: and some of these things are going on. We did

672
00:31:49,720 --> 00:31:51,800
Speaker 9: our homework and we're actually using this as a perfect

673
00:31:51,960 --> 00:31:54,200
Speaker 9: entry point in our opinion, where technology has been the

674
00:31:54,240 --> 00:31:56,840
Speaker 9: furthest it's ever been, and valuations have actually been the cheapest.

675
00:31:57,040 --> 00:31:59,000
Speaker 9: We played a long game, We played five year, ten

676
00:31:59,080 --> 00:32:02,000
Speaker 9: year cycles, and so for that reason alone, it's a

677
00:32:02,040 --> 00:32:03,760
Speaker 9: tremendously exciting opportunity.

678
00:32:04,280 --> 00:32:09,040
Speaker 2: Did you see the congressional hearing the other day on UFOs.

679
00:32:09,560 --> 00:32:10,320
Speaker 1: Yeah, they're working on that.

680
00:32:10,760 --> 00:32:15,840
Speaker 2: So apparently we have some alien wreckage. It's top secret,

681
00:32:15,920 --> 00:32:16,800
Speaker 2: totally classified.

682
00:32:17,400 --> 00:32:20,440
Speaker 1: So why are you saying it? You're just out the whole.

683
00:32:20,520 --> 00:32:24,160
Speaker 2: I mean, that was that was the big thing about this, uh,

684
00:32:24,600 --> 00:32:29,080
Speaker 2: this congressional panel. If we could just if we could

685
00:32:29,120 --> 00:32:33,000
Speaker 2: just get some of that technology, imagine how much you could,

686
00:32:33,480 --> 00:32:35,400
Speaker 2: you know, supersize the space investment.

687
00:32:36,120 --> 00:32:38,600
Speaker 1: Yep. So I mean all right, so just moving.

688
00:32:40,200 --> 00:32:41,680
Speaker 2: I mean you know what I was thought. I thought

689
00:32:41,720 --> 00:32:43,960
Speaker 2: of it because you asked how does a retail investor

690
00:32:44,000 --> 00:32:47,440
Speaker 2: get in in space? And my immediate reaction is to

691
00:32:47,520 --> 00:32:49,960
Speaker 2: type in ETF go on the Bloomberg terminal. So I

692
00:32:50,040 --> 00:32:52,960
Speaker 2: do that, and I put space in the description, and

693
00:32:53,000 --> 00:32:55,320
Speaker 2: then I get rc X is an ETF you.

694
00:32:55,280 --> 00:32:55,760
Speaker 6: Could use it?

695
00:32:55,880 --> 00:32:59,080
Speaker 9: And so Athy Wood UFO IF is another one rocket

696
00:32:59,440 --> 00:33:01,320
Speaker 9: r O K T it is hitting fifty two week highs.

697
00:33:01,320 --> 00:33:03,560
Speaker 9: Take a look at Rocket. It's a really nice basket.

698
00:33:04,160 --> 00:33:06,040
Speaker 9: The stock looks from the bottom left to the top

699
00:33:06,160 --> 00:33:09,200
Speaker 9: right General Electric for example. That's a great way, in

700
00:33:09,240 --> 00:33:10,320
Speaker 9: my humble opinion, to play it.

701
00:33:10,680 --> 00:33:11,240
Speaker 6: Obviously, talk to.

702
00:33:11,240 --> 00:33:13,600
Speaker 9: Your own financial advisors, not financial advice, but you know,

703
00:33:13,680 --> 00:33:16,640
Speaker 9: ge was a global congomerate. They're getting rid of everything,

704
00:33:16,840 --> 00:33:20,280
Speaker 9: including healthcare, and they're only focusing on aerospace and avionics.

705
00:33:20,360 --> 00:33:21,680
Speaker 9: And if you take a look at that chart, it's

706
00:33:21,680 --> 00:33:24,200
Speaker 9: been one of the best performing stocks out there. And

707
00:33:24,400 --> 00:33:27,200
Speaker 9: so that's another, you know, low access, easy way to

708
00:33:27,320 --> 00:33:29,000
Speaker 9: start to you know, look at these things. Because the

709
00:33:29,040 --> 00:33:31,360
Speaker 9: reality is all the listeners at home and some of

710
00:33:31,400 --> 00:33:33,680
Speaker 9: the folks they don't have the chance to necessarily buy

711
00:33:33,760 --> 00:33:37,080
Speaker 9: the SpaceX is or the Relativities or the Fireflies or

712
00:33:37,120 --> 00:33:39,640
Speaker 9: some of these private companies that the VC world are currently.

713
00:33:39,640 --> 00:33:41,960
Speaker 2: Can you buy SpaceX on the secondary market?

714
00:33:42,080 --> 00:33:44,040
Speaker 9: Yeah, we ironically, we had an opportunity to buy it

715
00:33:44,080 --> 00:33:47,000
Speaker 9: back in twenty fifteen at a fifteen billion dollar valuation.

716
00:33:47,520 --> 00:33:50,080
Speaker 9: Obviously we did not do that. Why would we still

717
00:33:50,160 --> 00:33:52,680
Speaker 9: kind of kicking ourselves, but yeah, we do get offered

718
00:33:53,000 --> 00:33:55,400
Speaker 9: the SpaceX rounds of financing absolutely, But what we try

719
00:33:55,440 --> 00:33:57,160
Speaker 9: and look for we try and find the SpaceX is

720
00:33:57,160 --> 00:33:59,280
Speaker 9: before they turn into the SpaceX, So we're not necessarily

721
00:33:59,280 --> 00:34:01,800
Speaker 9: looking for a fifty billion dollar company. We're looking for

722
00:34:02,120 --> 00:34:02,760
Speaker 9: an earlier stage.

723
00:34:03,120 --> 00:34:07,000
Speaker 1: Is private space industry? Is it primarily a US industry?

724
00:34:07,040 --> 00:34:08,640
Speaker 1: Are there other countries doing it as well?

725
00:34:08,680 --> 00:34:08,799
Speaker 7: Though?

726
00:34:08,880 --> 00:34:11,040
Speaker 9: It is a global industry. It's a five hundred and

727
00:34:11,080 --> 00:34:14,560
Speaker 9: forty billion dollar global industry. Of that, the US base

728
00:34:14,920 --> 00:34:17,279
Speaker 9: US is over two hundred billion, so it's almost half

729
00:34:17,440 --> 00:34:20,640
Speaker 9: of the global output. We Fortuna believe it's going to

730
00:34:20,719 --> 00:34:22,719
Speaker 9: a trillion dollar industry this decade. It's going to be

731
00:34:22,760 --> 00:34:26,640
Speaker 9: the fastest growing industry next to potentially AI coming up here,

732
00:34:26,760 --> 00:34:28,680
Speaker 9: which is one of the reasons we're so excited about

733
00:34:28,680 --> 00:34:29,200
Speaker 9: this industry.

734
00:34:29,320 --> 00:34:30,759
Speaker 2: A lot of those launches go out of French.

735
00:34:30,800 --> 00:34:33,839
Speaker 1: Guyana yep right, yep, yeap went down there once back

736
00:34:33,880 --> 00:34:36,960
Speaker 1: in the day for one of the when the satellite

737
00:34:37,000 --> 00:34:40,240
Speaker 1: industry is just kind of kicking off. It's a good trip. Actually,

738
00:34:40,560 --> 00:34:44,160
Speaker 1: just as palm Our, CEO and founder Fortuna Investments, joining

739
00:34:44,200 --> 00:34:47,080
Speaker 1: us here in our Bloomberg Interactive broken student's talking about space.

740
00:34:47,200 --> 00:34:50,880
Speaker 1: Investing in space as a venture capitalist lots of opportunities.

741
00:34:50,920 --> 00:34:53,520
Speaker 1: There SMP five hundred. There's opportunities right there. It's up

742
00:34:53,600 --> 00:34:57,520
Speaker 1: over one percent today. The Nasdaq is up one point

743
00:34:57,600 --> 00:35:00,279
Speaker 1: nine percent, So there you go. The market's definitely liking

744
00:35:00,360 --> 00:35:02,120
Speaker 1: what they heard from the earning side and liking what

745
00:35:02,160 --> 00:35:05,640
Speaker 1: they heard from some of these central bankers, reflecting that

746
00:35:05,719 --> 00:35:06,400
Speaker 1: in the marketplace.

747
00:35:06,880 --> 00:35:10,480
Speaker 6: You're listening to the tape catchur live program Bloomberg Markets

748
00:35:10,560 --> 00:35:13,959
Speaker 6: weekdays at ten am Eastern on Bloomberg Radio, the tune

749
00:35:14,000 --> 00:35:16,919
Speaker 6: in app, Bloomberg dot Com, and the Bloomberg Business app.

750
00:35:17,000 --> 00:35:19,759
Speaker 6: You can also listen live on Amazon Alexa from our

751
00:35:19,840 --> 00:35:24,200
Speaker 6: flagship New York station. Just say Alexa play Bloomberg eleven thirty.

752
00:35:25,560 --> 00:35:29,239
Speaker 1: Let's bring that conversation. Intel C Pat Gelsinger. He joins

753
00:35:29,360 --> 00:35:33,200
Speaker 1: Edla alone Caroline Height on Bloomberg Technology today after reporting earnings.

754
00:35:33,480 --> 00:35:34,960
Speaker 1: Let's go to that conversation right now.

755
00:35:35,040 --> 00:35:38,919
Speaker 10: I wants to welcome our global Bloomberg TV and radio audiences.

756
00:35:39,200 --> 00:35:43,279
Speaker 10: Intel shares are jumping, with investors buying into signs that

757
00:35:43,400 --> 00:35:48,240
Speaker 10: the chip maker's long awaited comeback is underway. Inteler's forecasting

758
00:35:48,320 --> 00:35:51,520
Speaker 10: sales in the current quarter of thirteen point nine billion

759
00:35:51,600 --> 00:35:53,760
Speaker 10: dollars ahead of expectations.

760
00:35:53,800 --> 00:35:55,160
Speaker 1: The company also notched.

761
00:35:55,120 --> 00:35:58,040
Speaker 10: A surprise profit of thirteen cents a share in the

762
00:35:58,080 --> 00:36:01,560
Speaker 10: quarter just gone as a slump him demand for personal

763
00:36:01,640 --> 00:36:04,800
Speaker 10: computers appears to be come into an end. It's not

764
00:36:05,000 --> 00:36:08,440
Speaker 10: all good news. Server demand isn't recovering as quickly. The

765
00:36:08,560 --> 00:36:11,000
Speaker 10: company is still a little bit far from its heyday

766
00:36:11,120 --> 00:36:14,360
Speaker 10: where margins where at sixty percent sales were nearer to

767
00:36:14,440 --> 00:36:18,840
Speaker 10: twenty billion dollars. Even so, joining us now Intel's CEO

768
00:36:19,560 --> 00:36:23,279
Speaker 10: Pat Gelsinger. You know, Pat, this is the second consecutive

769
00:36:23,400 --> 00:36:29,480
Speaker 10: quarter where investors have cheered the earnings results shares her

770
00:36:29,560 --> 00:36:32,279
Speaker 10: up and I think before twenty twenty three, ten out

771
00:36:32,320 --> 00:36:35,200
Speaker 10: of the eleven earnings prints that you had shares fell.

772
00:36:36,160 --> 00:36:37,160
Speaker 2: Is this job done for you?

773
00:36:37,480 --> 00:36:38,680
Speaker 10: In the turnaround at Intel?

774
00:36:40,239 --> 00:36:40,719
Speaker 5: Well ed?

775
00:36:40,920 --> 00:36:43,759
Speaker 11: We have a long way to go yet, but boy,

776
00:36:43,880 --> 00:36:47,279
Speaker 11: having two good Beaten Ray quarters in a row, you know,

777
00:36:47,480 --> 00:36:50,840
Speaker 11: is a super positive and really I think in THEKPI

778
00:36:51,440 --> 00:36:55,239
Speaker 11: of that turning point for the company. But we still

779
00:36:55,280 --> 00:36:56,600
Speaker 11: have a lot of work to do yet. You know,

780
00:36:56,680 --> 00:36:59,960
Speaker 11: as we said, our client business is now healthy foot.

781
00:37:00,280 --> 00:37:02,839
Speaker 11: You know, we've returned market shared to where it traditionally

782
00:37:03,160 --> 00:37:04,440
Speaker 11: was a strong roadmap.

783
00:37:04,800 --> 00:37:07,479
Speaker 5: You know, the markets recovering. Inventory levels are.

784
00:37:07,400 --> 00:37:09,600
Speaker 11: Good, you know, Data Center, we still have work to do,

785
00:37:09,800 --> 00:37:11,759
Speaker 11: but boy, you know two quarters in a row where

786
00:37:11,800 --> 00:37:14,040
Speaker 11: we did a bit better than we expected, you know,

787
00:37:14,120 --> 00:37:16,759
Speaker 11: but we still have challenges in AI, you know, and

788
00:37:16,960 --> 00:37:19,800
Speaker 11: many of our really good products are only coming to

789
00:37:19,920 --> 00:37:21,439
Speaker 11: market over the next year.

790
00:37:21,880 --> 00:37:22,000
Speaker 5: You know.

791
00:37:22,120 --> 00:37:24,480
Speaker 11: Networking is still a lot of inventory to work through,

792
00:37:24,760 --> 00:37:27,759
Speaker 11: and our foundry business is still just a seedling, just

793
00:37:27,880 --> 00:37:30,520
Speaker 11: starting to show some green shoots. So I'll say, boy,

794
00:37:30,680 --> 00:37:33,360
Speaker 11: far from finished, but it is nice bouncing off the

795
00:37:33,400 --> 00:37:35,760
Speaker 11: bottom a bit and feeling that momentum in the market.

796
00:37:35,840 --> 00:37:39,560
Speaker 10: Response, Pat, why do you have the confidence to kind

797
00:37:39,600 --> 00:37:43,400
Speaker 10: of cool the end of the PC slump and also

798
00:37:43,440 --> 00:37:46,080
Speaker 10: at the same time state that the server recovery is

799
00:37:46,160 --> 00:37:47,399
Speaker 10: delayed to the end of the year.

800
00:37:49,120 --> 00:37:51,920
Speaker 11: Yeah, and the PC side, you know, inventory levels are

801
00:37:52,000 --> 00:37:54,840
Speaker 11: now healthy, right, you know, everything that we've seen and

802
00:37:54,960 --> 00:37:58,399
Speaker 11: a lot of the issues that we work through Q four,

803
00:37:58,560 --> 00:38:01,759
Speaker 11: Q one and Q two were over inventory levels by

804
00:38:01,800 --> 00:38:05,240
Speaker 11: the OEMs and the channel, and now everything is healthy.

805
00:38:05,680 --> 00:38:09,520
Speaker 11: Our roadmap is very good. We've gained share multiple times

806
00:38:09,960 --> 00:38:11,640
Speaker 11: in a row. I think we're now at five out

807
00:38:11,680 --> 00:38:14,680
Speaker 11: of six quarters where we've gained market share so I

808
00:38:14,800 --> 00:38:18,279
Speaker 11: just say in the PC business healthy, Our position is good,

809
00:38:18,680 --> 00:38:22,279
Speaker 11: and we're looking forward to the AI PC and with

810
00:38:22,400 --> 00:38:25,759
Speaker 11: our launch of our next generation product, meteor Lake later

811
00:38:25,880 --> 00:38:28,440
Speaker 11: this year. You know, we believe that ushers in the

812
00:38:28,800 --> 00:38:32,600
Speaker 11: AI PC generation and I've compared that to like Centrino

813
00:38:32,760 --> 00:38:35,960
Speaker 11: and Wi Fi, you know, two decades ago, a major

814
00:38:36,080 --> 00:38:39,279
Speaker 11: new use case for why the PC is the best platform.

815
00:38:39,600 --> 00:38:40,960
Speaker 5: So we're quite excited about that.

816
00:38:41,480 --> 00:38:43,920
Speaker 11: On the data center side, you know, we still saw that,

817
00:38:44,200 --> 00:38:47,240
Speaker 11: you know, the inventory levels still persist. You know, China

818
00:38:47,440 --> 00:38:50,520
Speaker 11: was weaker than expected. Their recovery is going slower. And

819
00:38:51,040 --> 00:38:54,239
Speaker 11: you know, cyclically we see the shift toward AI you know,

820
00:38:54,360 --> 00:38:57,759
Speaker 11: these big training machines. Every cloud vendor is shifting their

821
00:38:57,880 --> 00:39:00,600
Speaker 11: dollars to more focus on that. So those three things

822
00:39:00,880 --> 00:39:04,239
Speaker 11: are leading to a bit longer recovery cycle on the

823
00:39:04,360 --> 00:39:06,719
Speaker 11: data center. Well, like I said, we performed a bit

824
00:39:06,760 --> 00:39:08,640
Speaker 11: better than we thought on the data center in Q

825
00:39:08,840 --> 00:39:11,840
Speaker 11: one m Q two, So we're feeling like our momentum

826
00:39:12,080 --> 00:39:15,239
Speaker 11: and execution is rebuilding despite some of those headwinds that

827
00:39:15,360 --> 00:39:16,680
Speaker 11: still persist in that area.

828
00:39:17,560 --> 00:39:20,360
Speaker 10: For our global TV and radio audience here at Bloomberg,

829
00:39:20,400 --> 00:39:24,560
Speaker 10: we're speaking to Pat Gelsinger, the Intel CEO. Pat you're

830
00:39:24,560 --> 00:39:29,120
Speaker 10: forecasting gross margin of forty three percent in the current period,

831
00:39:29,800 --> 00:39:32,600
Speaker 10: but it's a long way from that sixty percent gross

832
00:39:32,680 --> 00:39:34,680
Speaker 10: margin level. You know, Wall Street used to look at

833
00:39:34,719 --> 00:39:38,440
Speaker 10: Intel and say sixty percent. You know, they cheer you

834
00:39:38,480 --> 00:39:40,960
Speaker 10: as a leader in that space. Can you just explain

835
00:39:41,080 --> 00:39:44,800
Speaker 10: to our global audience the timeline and path to getting

836
00:39:45,040 --> 00:39:46,839
Speaker 10: back to profit at that level.

837
00:39:48,480 --> 00:39:50,680
Speaker 11: Yeah, and we're working our way back in margins and

838
00:39:50,760 --> 00:39:53,640
Speaker 11: obviously a nice beat in Q two on margins, and

839
00:39:53,719 --> 00:39:56,160
Speaker 11: we forecast Q three a bit better and Q four

840
00:39:56,280 --> 00:39:58,440
Speaker 11: a bit better, you know. And part of it is

841
00:39:58,719 --> 00:40:03,560
Speaker 11: the cyclicality. The semiconductor industry is brutal on margins. And

842
00:40:03,640 --> 00:40:08,200
Speaker 11: when we had an oversupply situation inventory, you know, that

843
00:40:08,400 --> 00:40:12,239
Speaker 11: just depresses margins because you know, the factories cost the

844
00:40:12,320 --> 00:40:15,320
Speaker 11: same whether they're full or whether they're empty, so you

845
00:40:15,480 --> 00:40:18,839
Speaker 11: end up with these charges that you burden the price

846
00:40:18,960 --> 00:40:23,160
Speaker 11: points and depressed margins. We also realize that our own

847
00:40:23,239 --> 00:40:27,239
Speaker 11: product execution has weakened our product position, which doesn't have

848
00:40:27,320 --> 00:40:30,520
Speaker 11: asps as strong as well, So that's another factor. And

849
00:40:30,640 --> 00:40:33,200
Speaker 11: the last factor here is, you know, the plan that

850
00:40:34,239 --> 00:40:37,000
Speaker 11: my CFO Dave and I have laid out is an

851
00:40:37,040 --> 00:40:41,040
Speaker 11: expensive plan. We are making aggressive investments to build the

852
00:40:41,160 --> 00:40:44,840
Speaker 11: capacity to get back to leadership, and thus we're moving

853
00:40:44,920 --> 00:40:48,320
Speaker 11: through nodes very rapidly. We said five nodes in four years,

854
00:40:48,640 --> 00:40:51,240
Speaker 11: So that causes us to have a lot of undepreciated

855
00:40:51,760 --> 00:40:55,600
Speaker 11: capacity that we're working through quite aggressively. Also building up

856
00:40:55,680 --> 00:40:59,120
Speaker 11: a bit more capacity for our foundry initiatives. So all

857
00:40:59,200 --> 00:41:03,520
Speaker 11: of those factors depressed margins to historically low levels in

858
00:41:03,560 --> 00:41:05,520
Speaker 11: the first part of the year and we're just seeing

859
00:41:05,560 --> 00:41:08,840
Speaker 11: ourselves now working to build back to margin levels. But

860
00:41:08,920 --> 00:41:12,120
Speaker 11: we're still very confident that as we build our foundry

861
00:41:12,200 --> 00:41:16,040
Speaker 11: business get back to leadership and process and products. You

862
00:41:16,120 --> 00:41:18,919
Speaker 11: know that those kind of margins, that's exactly what Dave

863
00:41:18,960 --> 00:41:21,319
Speaker 11: and I aspire to to the future. And we feel

864
00:41:21,360 --> 00:41:23,920
Speaker 11: like you two was a good marker you know that, Yes,

865
00:41:24,000 --> 00:41:25,759
Speaker 11: we're building momentum to get back there.

866
00:41:26,800 --> 00:41:29,960
Speaker 10: Thank you for joining us here on Bloomberg Television and

867
00:41:30,200 --> 00:41:35,400
Speaker 10: Radio worldwide. We're joined by Pat Gelsinger, Intel CEO. You

868
00:41:35,560 --> 00:41:39,120
Speaker 10: described the foundry business as a seedling, but every time

869
00:41:39,239 --> 00:41:42,320
Speaker 10: you and I have spoken, you've hinted that there is

870
00:41:42,360 --> 00:41:47,959
Speaker 10: a big customer waiting in the wings to give life

871
00:41:48,080 --> 00:41:51,160
Speaker 10: to that business. What can you tell us about that, Pat.

872
00:41:52,160 --> 00:41:55,000
Speaker 11: Yeah, and we're having good momentum, and as I said

873
00:41:55,040 --> 00:41:58,600
Speaker 11: on the Ernie's call yesterday, we have two big customers

874
00:41:58,640 --> 00:42:00,960
Speaker 11: in particular that we made very good progress over the

875
00:42:01,040 --> 00:42:05,279
Speaker 11: last quarter for our foundry business. We did have one,

876
00:42:05,360 --> 00:42:08,560
Speaker 11: i'll say confirmatory, not as big a customer, but the

877
00:42:08,800 --> 00:42:12,160
Speaker 11: Ericsson announcement their commitment to eighteen A and our next

878
00:42:12,280 --> 00:42:13,360
Speaker 11: generation work.

879
00:42:13,480 --> 00:42:15,479
Speaker 5: You know with them that we announced this quarter.

880
00:42:15,800 --> 00:42:18,560
Speaker 11: So I'll say overall, we're seeing good momentum and a

881
00:42:18,800 --> 00:42:21,400
Speaker 11: really strong pipeline of customers, and we hope to make

882
00:42:22,080 --> 00:42:26,000
Speaker 11: meaningful announcements later this year on that. We also pointed

883
00:42:26,040 --> 00:42:28,480
Speaker 11: out on our earnings call that now we're seeing a

884
00:42:28,600 --> 00:42:31,560
Speaker 11: lot of interest in our packaging technologies. So it isn't

885
00:42:31,640 --> 00:42:35,840
Speaker 11: just wayfer manufacturing, it's also package assembly and tests. And

886
00:42:35,920 --> 00:42:40,799
Speaker 11: Intel has long term been a leader in packaging technologies,

887
00:42:41,160 --> 00:42:44,800
Speaker 11: and because of key areas like high performance computing and AI,

888
00:42:45,320 --> 00:42:49,600
Speaker 11: there's tremendous interest in these advanced packaging technologies and we're

889
00:42:49,640 --> 00:42:52,920
Speaker 11: finding a lot of customer interest in that incremental area

890
00:42:53,280 --> 00:42:55,960
Speaker 11: of the foundry business as well. So overall, you know,

891
00:42:56,040 --> 00:42:57,920
Speaker 11: and the numbers were good for us in Q two

892
00:42:58,120 --> 00:43:01,920
Speaker 11: for foundry, great pipeline of activities, Great progress on a

893
00:43:01,960 --> 00:43:05,120
Speaker 11: couple of these most major opportunities. So I'm feeling good

894
00:43:05,239 --> 00:43:08,239
Speaker 11: like we're starting to really see that momentum build in

895
00:43:08,360 --> 00:43:11,920
Speaker 11: this new business area for Intel or Intel Foundery services.

896
00:43:12,880 --> 00:43:16,600
Speaker 10: If we think about what a potential customer might be,

897
00:43:16,880 --> 00:43:19,560
Speaker 10: you know, at the scale of Apple, Google, or Video,

898
00:43:19,960 --> 00:43:22,320
Speaker 10: what is it that they want from you? What is

899
00:43:22,400 --> 00:43:24,120
Speaker 10: it do you think that you can provide them?

900
00:43:25,640 --> 00:43:27,239
Speaker 5: Yeah? You know when I view it, you know, we

901
00:43:27,360 --> 00:43:28,719
Speaker 5: have to go through four stages.

902
00:43:29,000 --> 00:43:29,160
Speaker 7: You know.

903
00:43:29,320 --> 00:43:31,960
Speaker 5: One is are my transistors good? You know?

904
00:43:32,080 --> 00:43:36,360
Speaker 11: Can they build good products using Intel? Second is do

905
00:43:36,480 --> 00:43:41,040
Speaker 11: I have the design tools? You know, the cadences and synopsis,

906
00:43:41,160 --> 00:43:44,400
Speaker 11: c das and the IP libraries. Have we gotten all

907
00:43:44,440 --> 00:43:47,160
Speaker 11: of those basics done so that they can design on us?

908
00:43:47,640 --> 00:43:47,759
Speaker 7: You know?

909
00:43:47,880 --> 00:43:50,680
Speaker 11: Then third, you know, do we have good terms and conditions?

910
00:43:50,760 --> 00:43:53,160
Speaker 11: Are they better off coming to me versus you know,

911
00:43:53,400 --> 00:43:56,000
Speaker 11: TSMC or Samsung as an alternative?

912
00:43:56,239 --> 00:43:58,759
Speaker 5: And then finally are we customer oriented?

913
00:43:59,160 --> 00:44:02,440
Speaker 11: Can they really have the support because my factory becomes

914
00:44:02,520 --> 00:44:04,839
Speaker 11: their factory, you know, So we have to work through

915
00:44:04,960 --> 00:44:08,080
Speaker 11: all four of those stages before they're ready to commit

916
00:44:08,400 --> 00:44:11,120
Speaker 11: major businesses to us, and that's why it takes a while.

917
00:44:11,239 --> 00:44:13,480
Speaker 11: You know, they got to do designs and tests and

918
00:44:13,640 --> 00:44:16,920
Speaker 11: pilots and you know, work through the financials, and you know,

919
00:44:17,000 --> 00:44:19,759
Speaker 11: this isn't a mature business area for US. But I'll

920
00:44:19,840 --> 00:44:22,560
Speaker 11: just say we're making great progress, and in particular, you know,

921
00:44:22,680 --> 00:44:25,560
Speaker 11: the two most significant opportunities. It was a really good

922
00:44:25,640 --> 00:44:28,520
Speaker 11: quarter and I'm feeling very optimistic that yes, we'll bring

923
00:44:28,600 --> 00:44:31,560
Speaker 11: them across the line and start to really accomplish what

924
00:44:31,680 --> 00:44:35,440
Speaker 11: we've laid out, you know, with our reshoring and building

925
00:44:35,520 --> 00:44:36,880
Speaker 11: the Western founder.

926
00:44:36,920 --> 00:44:38,160
Speaker 5: And we also had great.

927
00:44:38,000 --> 00:44:41,440
Speaker 11: Success with both the EU and the US chipsack this

928
00:44:41,640 --> 00:44:45,000
Speaker 11: last quarter, which are affirming the strong support you know,

929
00:44:45,160 --> 00:44:47,560
Speaker 11: of the Western governments on this strategy.

930
00:44:47,840 --> 00:44:50,160
Speaker 5: It's the right strategy at the right time. We're making

931
00:44:50,239 --> 00:44:50,880
Speaker 5: good progress.

932
00:44:51,400 --> 00:44:53,440
Speaker 10: A big part of your smart capital approach, we have

933
00:44:53,520 --> 00:44:56,319
Speaker 10: to talk about AI. You see a world in which

934
00:44:56,440 --> 00:45:00,359
Speaker 10: the PC plays a role for localized running of l ends.

935
00:45:00,760 --> 00:45:03,120
Speaker 10: But what are the use cases that you see pat

936
00:45:03,239 --> 00:45:07,840
Speaker 10: the applications where PC with AI specific chips is relevant.

937
00:45:09,480 --> 00:45:13,000
Speaker 11: Yeah, you know, to some degree, they're numerous. Ed you know,

938
00:45:13,120 --> 00:45:15,480
Speaker 11: let's just give one example. You know in the future,

939
00:45:15,560 --> 00:45:17,719
Speaker 11: my word processor, you know, I'm going to hit a

940
00:45:17,760 --> 00:45:20,320
Speaker 11: button and say, give me a legal brief that describes this,

941
00:45:20,600 --> 00:45:23,120
Speaker 11: and it's going to get locally generated, you know, my

942
00:45:23,600 --> 00:45:26,799
Speaker 11: video conferencing, my zine, my teams or zooms. I'm going

943
00:45:26,880 --> 00:45:29,000
Speaker 11: to say, you know, give me, you know, real time

944
00:45:29,200 --> 00:45:33,640
Speaker 11: translation across multiple languages, you know, for this meeting, and

945
00:45:33,840 --> 00:45:36,200
Speaker 11: I'm going to have that in real time on my PC.

946
00:45:36,719 --> 00:45:38,800
Speaker 11: You know, my games, you know, for my you know,

947
00:45:38,920 --> 00:45:41,960
Speaker 11: all of that is going to become synthetically generated worlds

948
00:45:42,120 --> 00:45:45,879
Speaker 11: locally on my PC in real time. So we see

949
00:45:45,920 --> 00:45:49,359
Speaker 11: it across creator, across productivity, you know. And as I've said,

950
00:45:49,440 --> 00:45:51,719
Speaker 11: this is sort of like a Wi Fi moment, you know,

951
00:45:51,920 --> 00:45:54,480
Speaker 11: for the PC of the future. And that begins with

952
00:45:54,600 --> 00:45:58,080
Speaker 11: our meteor like launch in the second half of this year.

953
00:45:59,120 --> 00:46:02,800
Speaker 10: Pat quickly a one billion dollar pipeline for AI products

954
00:46:02,840 --> 00:46:05,080
Speaker 10: through twenty twenty four. Just give me a sense of

955
00:46:05,560 --> 00:46:07,720
Speaker 10: the pace at which that pipeline is growing.

956
00:46:08,000 --> 00:46:13,680
Speaker 11: Now, Yeah, we had a super exciting quarter. As I said,

957
00:46:13,719 --> 00:46:16,560
Speaker 11: we six xt that pipeline in Q two, so we

958
00:46:16,640 --> 00:46:19,160
Speaker 11: saw a huge uptick on that, you know, and I've

959
00:46:19,239 --> 00:46:23,239
Speaker 11: deployed a lot more sales resources, software resources, you know,

960
00:46:23,360 --> 00:46:26,759
Speaker 11: to jump on those opportunities worldwide. You know, when we

961
00:46:26,880 --> 00:46:30,000
Speaker 11: have our Gouty two chip that is now in volume.

962
00:46:30,280 --> 00:46:32,480
Speaker 11: You know, we've just seen the first wafers on the

963
00:46:32,560 --> 00:46:35,320
Speaker 11: next generation Gouty three, which will be our twenty twenty

964
00:46:35,400 --> 00:46:37,960
Speaker 11: four product, and then we have our twenty five and

965
00:46:38,040 --> 00:46:40,800
Speaker 11: twenty six products underway. So you know, we're seeing a

966
00:46:40,880 --> 00:46:43,360
Speaker 11: lot of momentum there and the world is looking for

967
00:46:43,560 --> 00:46:48,560
Speaker 11: a great alternative, an open alternative, a more cost effective alternative,

968
00:46:48,719 --> 00:46:51,600
Speaker 11: and Intel is a trusted supplier. We think this is

969
00:46:51,680 --> 00:46:54,080
Speaker 11: a great area for us to put a lot of

970
00:46:54,239 --> 00:46:57,200
Speaker 11: energy into and we're seeing the response from the marketplace now.

971
00:46:58,480 --> 00:47:01,560
Speaker 10: Intel CEO Pat Gelis, you know, we appreciate your time

972
00:47:01,640 --> 00:47:03,560
Speaker 10: here on Bloomberg TV and Radio. Thank you.

973
00:47:03,960 --> 00:47:07,040
Speaker 6: You're listening to the tape. Catch our live program Bloomberg

974
00:47:07,160 --> 00:47:10,680
Speaker 6: Markets weekdays at ten am Eastern on Bloomberg Radio, the

975
00:47:10,800 --> 00:47:14,000
Speaker 6: tune in app, Bloomberg dot Com, and the Bloomberg Business app.

976
00:47:14,080 --> 00:47:16,840
Speaker 6: You can also listen live on Amazon Alexa from our

977
00:47:16,920 --> 00:47:21,280
Speaker 6: flagship New York station. Just say Alexa play Bloomberg eleven thirty.

978
00:47:22,280 --> 00:47:24,480
Speaker 2: I want to get to cars right now.

979
00:47:24,600 --> 00:47:25,279
Speaker 1: Oh there, we go.

980
00:47:25,480 --> 00:47:28,120
Speaker 2: I'm so happy to be back on this program and

981
00:47:28,160 --> 00:47:30,440
Speaker 2: talk about the car industry. I've been covering it for

982
00:47:31,080 --> 00:47:33,320
Speaker 2: twenty years now and as a result, as you know,

983
00:47:33,520 --> 00:47:36,920
Speaker 2: manufacturers often give me vehicles to test out. It's the

984
00:47:37,000 --> 00:47:39,560
Speaker 2: best part of the job. This week, I am driving

985
00:47:39,640 --> 00:47:44,480
Speaker 2: the Alfa Romeo Tanali, which is a subcompact suv. It's

986
00:47:44,520 --> 00:47:48,120
Speaker 2: a very crowded segment, but this one is electrified. It's

987
00:47:48,160 --> 00:47:51,280
Speaker 2: got a hybrid drive train. It has a very tiny

988
00:47:51,360 --> 00:47:55,040
Speaker 2: gas motor one point three leader four cylinder motor driving

989
00:47:55,040 --> 00:47:57,600
Speaker 2: the front wheels, electric motor driving the back, and it

990
00:47:57,640 --> 00:47:59,840
Speaker 2: can do more than thirty miles of rain on the

991
00:48:00,120 --> 00:48:03,520
Speaker 2: battery by itself, so it's a very interesting vehicle. Also

992
00:48:03,680 --> 00:48:08,160
Speaker 2: joining us to talk about Alfa Romeo stilantis As, which

993
00:48:08,200 --> 00:48:10,040
Speaker 2: is the owner as well as the broader car industry,

994
00:48:10,120 --> 00:48:11,640
Speaker 2: is one of the few people who has driven more

995
00:48:11,719 --> 00:48:14,719
Speaker 2: cars than me. Bloomberg Pursuits. Hannah Elliott joins us from

996
00:48:15,040 --> 00:48:17,720
Speaker 2: Los Angeles and I'm really glad hen I've been chasing

997
00:48:17,800 --> 00:48:20,160
Speaker 2: after you for weeks to get you on the show.

998
00:48:20,360 --> 00:48:22,439
Speaker 2: Thanks so much for joining us. What do you think,

999
00:48:22,520 --> 00:48:25,960
Speaker 2: as you know, someone who is a huge car enthusiast,

1000
00:48:26,000 --> 00:48:28,200
Speaker 2: someone who loves older cars as well as newer cars.

1001
00:48:28,239 --> 00:48:32,120
Speaker 2: About the Alfa Romeo brand, the Alpromeo story, I mean.

1002
00:48:32,320 --> 00:48:34,799
Speaker 12: First of all, thanks for keeping on the chase. I'm

1003
00:48:34,840 --> 00:48:37,359
Speaker 12: so happy to be here with you, Matt. Second of all,

1004
00:48:37,680 --> 00:48:41,000
Speaker 12: what's not to love? This is one hundred plus year

1005
00:48:41,080 --> 00:48:44,400
Speaker 12: old brand with real racing history. It was history, it

1006
00:48:44,440 --> 00:48:47,480
Speaker 12: was winning the Targa Florio in the early nineteen twenties.

1007
00:48:47,840 --> 00:48:51,080
Speaker 12: Of course we have you know, famous Alpha Romeo movie

1008
00:48:51,160 --> 00:48:53,680
Speaker 12: cars like the Little Spider and the Graduate. Of course

1009
00:48:53,800 --> 00:48:57,200
Speaker 12: everyone knows and loves It's got real history, it's Italian.

1010
00:48:57,239 --> 00:49:02,080
Speaker 12: Who doesn't love Italians? And it's it's owned by the

1011
00:49:02,360 --> 00:49:05,840
Speaker 12: largest carbrand in the fourth largest sorry Carbred in the world, Stilantis.

1012
00:49:05,880 --> 00:49:08,000
Speaker 12: Like you said, there's a lot going for I actually

1013
00:49:08,320 --> 00:49:10,799
Speaker 12: like how even the modern cars look. I think they

1014
00:49:10,880 --> 00:49:15,239
Speaker 12: look distinctive, they look interesting, and they're pretty well built.

1015
00:49:15,280 --> 00:49:18,319
Speaker 12: They've got some great specs. They're competitive within the market share.

1016
00:49:18,800 --> 00:49:22,600
Speaker 12: But my caveat is, for whatever reason, Alpha Romeo has

1017
00:49:22,680 --> 00:49:26,320
Speaker 12: really struggled to gain real momentum and real ground.

1018
00:49:26,400 --> 00:49:30,880
Speaker 2: It's very true. I looked at the stats and last

1019
00:49:31,000 --> 00:49:35,120
Speaker 2: year Alfa Romeo sold twelve eight hundred and forty five cars,

1020
00:49:35,600 --> 00:49:38,600
Speaker 2: which is very little, right. BMW sold more than three

1021
00:49:38,680 --> 00:49:42,640
Speaker 2: hundred thirty thousand, Mercedes sold more than three hundred forty thousand.

1022
00:49:42,960 --> 00:49:46,600
Speaker 2: Teslas sold almost half a million cars last year in

1023
00:49:46,920 --> 00:49:52,080
Speaker 2: the US market. So my question is, why doesn't Carlos Tavars,

1024
00:49:52,120 --> 00:49:55,000
Speaker 2: why doesn't Stilantis and this is sixty billion dollar company

1025
00:49:55,080 --> 00:49:58,000
Speaker 2: invest more in this brand. Listen to what Tavares told

1026
00:49:58,080 --> 00:50:01,720
Speaker 2: us on Wednesday, off.

1027
00:50:01,640 --> 00:50:05,680
Speaker 13: Roll maybe is a big success since Stanatius was created.

1028
00:50:05,760 --> 00:50:09,319
Speaker 13: We made a huge turnaround of the business model. It's

1029
00:50:09,400 --> 00:50:13,160
Speaker 13: now a highly profitable brand. It's a growing brand, sixty

1030
00:50:13,200 --> 00:50:17,279
Speaker 13: per volume growth on the H one twenty twenty three

1031
00:50:17,360 --> 00:50:20,640
Speaker 13: compared to last year, so it's growing. It's highly profitable.

1032
00:50:20,960 --> 00:50:23,600
Speaker 13: We have turnaround, We are happy to be in Formula one,

1033
00:50:24,120 --> 00:50:28,279
Speaker 13: and we are going to increase our presence in the US,

1034
00:50:28,960 --> 00:50:30,160
Speaker 13: including at one pointeen ten.

1035
00:50:31,360 --> 00:50:34,080
Speaker 2: So it's interesting that they're getting back into raising Hannah,

1036
00:50:34,080 --> 00:50:36,880
Speaker 2: And I'm sure that's key for an enthusiast like you,

1037
00:50:37,360 --> 00:50:40,480
Speaker 2: But the problem for me is not only well, this

1038
00:50:40,760 --> 00:50:42,799
Speaker 2: car that I was test driving is front wheel drive,

1039
00:50:42,880 --> 00:50:44,920
Speaker 2: which is already like forget about.

1040
00:50:44,719 --> 00:50:45,040
Speaker 6: It for me.

1041
00:50:45,520 --> 00:50:47,560
Speaker 2: Yeah, and I mean, that's just not my thing. But

1042
00:50:47,719 --> 00:50:50,400
Speaker 2: for some people it's a great vehicle because it has

1043
00:50:50,719 --> 00:50:53,359
Speaker 2: its good in the snow, good electric range it has

1044
00:50:53,440 --> 00:50:55,759
Speaker 2: I guess it's okay in the snow, and you could

1045
00:50:55,760 --> 00:50:58,760
Speaker 2: also take longer trips with the motor. But my problem

1046
00:50:58,840 --> 00:51:01,240
Speaker 2: is it breaks down so much much. In JD Power's

1047
00:51:01,280 --> 00:51:05,680
Speaker 2: initial quality survey, they showed two hundred and four issues

1048
00:51:05,719 --> 00:51:08,120
Speaker 2: per hundred vehicles, and that's only the first three months.

1049
00:51:08,440 --> 00:51:11,000
Speaker 2: So in the first three months, every owner essentially has

1050
00:51:11,040 --> 00:51:14,839
Speaker 2: more than two mechanical problems. That's something that they.

1051
00:51:14,760 --> 00:51:15,239
Speaker 6: Have to fix.

1052
00:51:16,000 --> 00:51:20,880
Speaker 12: That's just completely untenable. And unfortunately in the US especially,

1053
00:51:21,080 --> 00:51:25,040
Speaker 12: that has been the existing reputation for Alfa Romeo so

1054
00:51:25,239 --> 00:51:27,800
Speaker 12: much so that it's kind of a joke, even for

1055
00:51:27,960 --> 00:51:30,320
Speaker 12: people who really love the brand and who collect the

1056
00:51:30,360 --> 00:51:32,320
Speaker 12: old cars and who want to buy the new cars.

1057
00:51:32,840 --> 00:51:35,400
Speaker 12: That is just the sticky reputation that they have. And

1058
00:51:35,480 --> 00:51:37,800
Speaker 12: you know, of course, of ours is saying they're pumping

1059
00:51:37,880 --> 00:51:40,000
Speaker 12: money into it and it's successful, but he's talking on

1060
00:51:40,080 --> 00:51:43,560
Speaker 12: a global level. In the US, Alfa Romeo has had

1061
00:51:43,600 --> 00:51:46,360
Speaker 12: a very spotty history history. Let's not forget they were

1062
00:51:46,480 --> 00:51:49,840
Speaker 12: dormant and didn't sell any cars here for several decades.

1063
00:51:50,360 --> 00:51:53,120
Speaker 12: In twenty sixteen, they sold less than fewer than six

1064
00:51:53,440 --> 00:51:56,120
Speaker 12: six hundred cars for the full year in the US.

1065
00:51:56,960 --> 00:51:59,919
Speaker 12: These twelve thousand that they've sold last year were down

1066
00:52:00,400 --> 00:52:02,840
Speaker 12: from the previous year, and this year on they're on

1067
00:52:03,000 --> 00:52:05,880
Speaker 12: track to sell even fewer. There's probably gonna sell around

1068
00:52:05,920 --> 00:52:10,400
Speaker 12: ten thousand. So in the US specifically, you're right. You know,

1069
00:52:10,600 --> 00:52:12,839
Speaker 12: when you think about Alpha Romeo being in the same

1070
00:52:12,960 --> 00:52:18,120
Speaker 12: competitive set as Audi, BMW, Mercedes, even Bolvo, even Jaguar,

1071
00:52:19,400 --> 00:52:22,120
Speaker 12: there's there are a lot of options, so when you're

1072
00:52:22,160 --> 00:52:24,960
Speaker 12: having reliability problems, it's an automatic no go.

1073
00:52:25,680 --> 00:52:30,279
Speaker 2: It's too bad because the Julia and the Stelvio apparently

1074
00:52:30,560 --> 00:52:34,239
Speaker 2: are amazing performance cars, but if they break down, you know,

1075
00:52:34,400 --> 00:52:38,560
Speaker 2: that's that's kind of a deal breaker. Also, you know, Hannah,

1076
00:52:38,640 --> 00:52:40,719
Speaker 2: I was joking with you and you pointed out that

1077
00:52:40,800 --> 00:52:43,280
Speaker 2: everybody made the same joke about the new Ferrari suv.

1078
00:52:43,360 --> 00:52:45,960
Speaker 2: It kind of looks like a maz To Suv. This

1079
00:52:46,239 --> 00:52:49,600
Speaker 2: Alpha Romeo Tonale that I was test driving looks exactly

1080
00:52:49,840 --> 00:52:52,440
Speaker 2: like the Dodge Hornet. I think we might have video

1081
00:52:52,520 --> 00:52:55,360
Speaker 2: of the Dodge Hornet. The reason is that they're essentially

1082
00:52:55,440 --> 00:52:58,279
Speaker 2: the same car. Dodge saw that Alpha was making this,

1083
00:52:58,520 --> 00:53:01,279
Speaker 2: they wanted an entry into the sub compact market, so

1084
00:53:01,400 --> 00:53:04,400
Speaker 2: they just stole it being a sister brand and changed

1085
00:53:04,440 --> 00:53:06,839
Speaker 2: like a couple pieces of sheet metal. But it's ten

1086
00:53:06,920 --> 00:53:09,439
Speaker 2: thousand dollars less, and I can't imagine why anybody would

1087
00:53:09,440 --> 00:53:12,279
Speaker 2: want to pay more for the Alpha when you could

1088
00:53:12,320 --> 00:53:16,080
Speaker 2: get the same car as a Dodge for so much cheaper.

1089
00:53:17,040 --> 00:53:19,600
Speaker 12: Okay, this is where we may disagree, and in a

1090
00:53:19,680 --> 00:53:23,719
Speaker 12: good way, because I feel like you really understand, like

1091
00:53:24,120 --> 00:53:28,200
Speaker 12: the paper the paperwork says the Dodge is the better buy.

1092
00:53:28,600 --> 00:53:31,320
Speaker 12: But I still am a little bit shallow, and I

1093
00:53:31,560 --> 00:53:35,480
Speaker 12: like this sort of Italian cachet that Alpha Romeo has,

1094
00:53:35,600 --> 00:53:37,919
Speaker 12: even though all the things we already know about Alpha Romeo.

1095
00:53:38,320 --> 00:53:41,520
Speaker 12: To me, it does at least have this sort of

1096
00:53:41,760 --> 00:53:47,160
Speaker 12: Italian luxury cachet. So I'm going to still probably go

1097
00:53:47,280 --> 00:53:49,839
Speaker 12: with the Alpha Mao over the Dodge. I also think

1098
00:53:49,880 --> 00:53:52,440
Speaker 12: the interior of the Alpha Romeo looks a little more

1099
00:53:52,520 --> 00:53:55,239
Speaker 12: interesting than the interior of the Hornet. Tell me if

1100
00:53:55,239 --> 00:53:56,879
Speaker 12: I'm wrong, but that's my take.

1101
00:53:57,040 --> 00:53:58,759
Speaker 2: I think you're You're probably right.

1102
00:53:58,840 --> 00:53:59,200
Speaker 1: By the way.

1103
00:53:59,200 --> 00:54:01,320
Speaker 2: The good news is I went on a call it

1104
00:54:01,440 --> 00:54:03,120
Speaker 2: was way too early for you. But this morning at

1105
00:54:03,160 --> 00:54:06,040
Speaker 2: six thirty am, Maserati Ceo da Vido Grosso had a

1106
00:54:06,400 --> 00:54:10,000
Speaker 2: conference call and he said they have poured money into

1107
00:54:10,400 --> 00:54:12,719
Speaker 2: the quality issues to try and fix. Obviously it's a

1108
00:54:12,800 --> 00:54:15,319
Speaker 2: very different brand and a different segment, but they're still

1109
00:54:15,640 --> 00:54:17,520
Speaker 2: both owned by Stalantis. Said they're going to try and

1110
00:54:17,560 --> 00:54:19,560
Speaker 2: fix the quality issues there and they made great headway.

1111
00:54:20,920 --> 00:54:22,640
Speaker 12: I mean, I'm glad to hear it. I do think

1112
00:54:22,760 --> 00:54:27,120
Speaker 12: perception lags behind reality, so maybe a few years before

1113
00:54:27,200 --> 00:54:31,520
Speaker 12: the public consumers pick up on this improvement. And I

1114
00:54:31,680 --> 00:54:36,200
Speaker 12: do think, you know, Alfa Romeo hasn't been marketed strongly

1115
00:54:36,280 --> 00:54:38,760
Speaker 12: in the US the same way that Audi's are marketed,

1116
00:54:39,040 --> 00:54:40,920
Speaker 12: so some of it could just you know, if they

1117
00:54:41,160 --> 00:54:43,960
Speaker 12: keep throwing money at it, we may be we may

1118
00:54:44,040 --> 00:54:44,840
Speaker 12: see some growth.

1119
00:54:44,920 --> 00:54:45,319
Speaker 5: Who knows.

1120
00:54:45,400 --> 00:54:47,439
Speaker 1: All right, Hanna, thanks so much for joining us. Hanna Elliot,

1121
00:54:47,480 --> 00:54:50,200
Speaker 1: staff writer for Bloomberg BusinessWeek from Los Angeles, talking to us.

1122
00:54:50,280 --> 00:54:51,840
Speaker 1: We card talk right there. Why not?

1123
00:54:52,239 --> 00:54:55,279
Speaker 2: Thanks for listening to the Bloomberg Markets podcast. You can

1124
00:54:55,360 --> 00:54:59,080
Speaker 2: subscribe and listen to interviews at Apple Podcasts or whatever

1125
00:54:59,200 --> 00:55:02,400
Speaker 2: podcast platf form you prefer. I'm Matt Miller, I'm on

1126
00:55:02,520 --> 00:55:06,360
Speaker 2: Twitter at Matt Miller nineteen seventy three, and I'm Paul Sweeney.

1127
00:55:06,400 --> 00:55:09,000
Speaker 1: I'm on Twitter at pt Sweeney. Before the podcast, you

1128
00:55:09,080 --> 00:55:11,439
Speaker 1: can always catch us worldwide at Bloomberg Radio