WEBVTT - BI Weekend: US Antitrust, AI in Retail, Restaurant Sales 0:00:00.240 --> 0:00:11.480 Bloomberg Audio, Studios, podcasts, radio news. This is Bloomberg Intelligence 0:00:11.560 --> 0:00:13.640 with Scarletfoo and Paul Sweeney. 0:00:13.720 --> 0:00:15.800 How do you think the FED is looking at tariffs? 0:00:15.960 --> 0:00:17.160 The uncertainty of terriffs. 0:00:17.280 --> 0:00:20.120 Let's take a look at the sectors and how they performed. 0:00:19.760 --> 0:00:21.800 A lot of investors getting whip saled every day by 0:00:21.840 --> 0:00:24.520 news events, breaking market headlines. 0:00:24.000 --> 0:00:26.239 And corporate news from across the globe. 0:00:26.280 --> 0:00:28.880 Could we see a market disruption of market events? 0:00:28.960 --> 0:00:31.000 So people just too exuberant out there? 0:00:31.120 --> 0:00:33.640 You see some so called low quality stocks driving this 0:00:33.760 --> 0:00:34.520 short term rally. 0:00:34.560 --> 0:00:40.040 Bloomberg Intelligence with Scarletfoo and Paul Sweeney on Bloomberg Radio, YouTube, 0:00:40.080 --> 0:00:41.440 and Bloomberg Originals. 0:00:42.520 --> 0:00:44.760 On today's Bloomberg Intelligence Show, we dig inside the big 0:00:44.800 --> 0:00:46.120 business stories impacting. 0:00:45.800 --> 0:00:47.120 Wall Street and the global markets. 0:00:47.320 --> 0:00:49.560 Each and every week, we provide in depth research and 0:00:49.640 --> 0:00:51.479 data on some of the two thousand companies and one 0:00:51.560 --> 0:00:54.080 hundred and thirty industries are analysts cover worldwide. 0:00:54.160 --> 0:00:56.880 Today, we'll look at why impulse purchases may still favor 0:00:56.960 --> 0:01:00.000 in person engagement even as retailers ramp up AI investment. 0:01:00.240 --> 0:01:02.520 Plus a look at why restaurant sales may increase in 0:01:02.520 --> 0:01:04.640 twenty twenty six despite economic headwinds. 0:01:04.920 --> 0:01:07.520 But first we moved to research Bloomberg Intelligence recently put 0:01:07.560 --> 0:01:10.320 out on the US anti trust landscape in twenty twenty six. 0:01:10.440 --> 0:01:13.280 According to BI, big businesses in the US are likely 0:01:13.319 --> 0:01:16.520 to face uneven anti trust enforcement in the first quarter, and. 0:01:16.480 --> 0:01:18.679 On the M and A front, most deals likely have 0:01:18.720 --> 0:01:22.240 a path to clearance, even those that raise concerns for more. 0:01:22.319 --> 0:01:25.160 Guest hosts Alexandra Simonova and I were joined by Jennifer Ree, 0:01:25.160 --> 0:01:29.200 Bloomberg Intelligence senior litigation analysts. We began by asking jen 0:01:29.240 --> 0:01:32.360 if there's an active anti trust monitoring happening now as 0:01:32.360 --> 0:01:34.600 the Trump administration wants to see deals being made. 0:01:35.040 --> 0:01:37.520 We are really seeing very little activity from the Department 0:01:37.600 --> 0:01:40.080 of Justice, a little bit more from the Federal Trade Commission, 0:01:40.319 --> 0:01:43.120 but even in their case, it's been pretty restrained. And 0:01:43.160 --> 0:01:46.720 it seems that both authorities are really willing to work 0:01:46.720 --> 0:01:48.760 with the companies if they think that there's a problem 0:01:48.760 --> 0:01:50.880 with the deal, to work out some kind of settlement. 0:01:50.880 --> 0:01:53.800 And that's what didn't exist during the Biden administration and 0:01:53.840 --> 0:01:56.200 why deal making with so steinmy at that time, and 0:01:56.280 --> 0:01:59.360 I think most companies see if we can come up 0:01:59.400 --> 0:02:01.480 if we have a problem. A lot of deals don't. 0:02:01.640 --> 0:02:03.160 But if we do, and we can come up with 0:02:03.160 --> 0:02:04.880 a solution, we can probably get it cleared. 0:02:06.040 --> 0:02:09.000 Jen, you mentioned muted activity from the regulators, but are 0:02:09.080 --> 0:02:12.000 there any industries that they're targeting right now more than others. 0:02:12.480 --> 0:02:14.639 Well, it looks like it. It's interesting that we see 0:02:14.680 --> 0:02:17.919 Boston Scientific as a deal because of the few challenges 0:02:18.120 --> 0:02:20.520 that have been brought to deals by the FTC. They've 0:02:20.520 --> 0:02:23.280 been in the healthcare space, one in the housing area 0:02:23.400 --> 0:02:26.680 of construction adhesives, which is a recent case they filed, 0:02:26.919 --> 0:02:31.000 but two in the healthcare space. And it doesn't surprise 0:02:31.080 --> 0:02:34.760 me really because these are very sensitive sectors, consumer facing sectors, 0:02:34.960 --> 0:02:38.760 and that does align with essentially a populist agenda which 0:02:38.760 --> 0:02:40.880 they talked about in the beginning when they took on 0:02:40.960 --> 0:02:44.160 their positions. And so I think we'll probably see if 0:02:44.200 --> 0:02:47.119 we see continued activity in those areas or other very 0:02:47.200 --> 0:02:48.520 sensitive consumer areas. 0:02:49.000 --> 0:02:50.920 Jen, the past couple of years saw a lot of 0:02:51.000 --> 0:02:54.680 high profile antitrust cases, specifically within big tech. We had 0:02:54.760 --> 0:02:58.000 rulings against Google and Meta. What kind of precedent have 0:02:58.080 --> 0:03:01.639 they set for big tech regue in twenty twenty six. 0:03:01.600 --> 0:03:03.880 Well, what they're showing is that it's going to be very, 0:03:04.000 --> 0:03:07.000 very difficult for US and anti trust agencies to actually 0:03:07.160 --> 0:03:10.360 tame what they view as monopolistic conduct. I mean, they 0:03:10.680 --> 0:03:15.120 did win technically against Google with respect and monopolizing search, 0:03:15.360 --> 0:03:18.800 but the remedy was fairly weak. They didn't get what 0:03:18.840 --> 0:03:21.560 they were looking for. Look at what Google's doing now 0:03:21.600 --> 0:03:25.960 with AI with Apple, which is exactly what the plaintiffs 0:03:25.960 --> 0:03:29.360 were trying to avoid, you know, dominance in AI after 0:03:29.440 --> 0:03:33.839 dominance in search. So the difficulty they have is even 0:03:33.880 --> 0:03:36.320 where they win on liability, they have a really tough 0:03:36.360 --> 0:03:39.360 time with remedies. Most US federal judges are going to 0:03:39.360 --> 0:03:41.960 be very cautious when it comes to meddling in business 0:03:42.200 --> 0:03:44.880 and the way a sector may develop, especially in technology, 0:03:44.920 --> 0:03:47.600 because it's so rapidly changing and nobody knows where it's going. 0:03:48.160 --> 0:03:51.160 So when you have these cautious judges, you're just not 0:03:51.200 --> 0:03:54.200 going to get the drastic remedies that are probably the 0:03:54.240 --> 0:03:57.480 remedies that are needed to really do something about the 0:03:57.520 --> 0:04:00.600 market positions of some of these companies. Seeing that, it's 0:04:00.600 --> 0:04:02.600 going to be difficult. But what we haven't seen as 0:04:02.680 --> 0:04:04.840 much of a let up on the cases that were 0:04:04.880 --> 0:04:09.160 inherited from the Biden administration. This DOJ and FTC are 0:04:09.200 --> 0:04:12.040 continuing to go after these cases in court. They're continuing 0:04:12.040 --> 0:04:14.760 to pursue what you might think of as a drastic remedy, 0:04:14.800 --> 0:04:18.159 a structural remedy. The next test will be Live Nation. 0:04:18.560 --> 0:04:20.360 Okay, so we'll watch for that. Then it's a bit 0:04:20.400 --> 0:04:24.600 of leftover from the previous administration. We talk about regulators, 0:04:24.880 --> 0:04:28.159 and that's usually how the antitrust enforcement shows up, or 0:04:28.200 --> 0:04:31.800 any kind of pushback from government authorities. But there's also 0:04:31.839 --> 0:04:34.440 the role of President Trump as well, and he's made 0:04:34.480 --> 0:04:38.520 clear that because he has some firm opinions about certain 0:04:38.520 --> 0:04:40.800 companies and certain sectors, that he's going to be what 0:04:40.880 --> 0:04:42.600 he says, personally involved in some of them. 0:04:42.720 --> 0:04:43.159 That's right. 0:04:43.279 --> 0:04:45.240 Is there a playbook for this? I mean, how do 0:04:45.600 --> 0:04:48.960 regulators work in concert with a mercurial president? 0:04:49.480 --> 0:04:52.960 You know, there really isn't a playbook. This is somewhat unprecedented. 0:04:53.000 --> 0:04:54.760 Now there are many that would argue that this kind 0:04:54.760 --> 0:04:59.200 of started during the Biden administration, but we have authorities 0:04:59.200 --> 0:05:01.440 at the Federal Trade Commission and Department of Justice that 0:05:01.480 --> 0:05:03.680 are very much trying to align what they're doing in 0:05:03.720 --> 0:05:07.279 the anti trust space with the policy priorities of this administration, 0:05:07.320 --> 0:05:09.800 I think, much more so than in the past. And 0:05:09.880 --> 0:05:12.559 they just don't look like they'd be willing to buck 0:05:13.000 --> 0:05:16.560 the White House if the White House has some feel 0:05:17.040 --> 0:05:19.680 or some something, you know, an issue with the deal. 0:05:19.880 --> 0:05:23.599 Right So we're seeing a lot of alignment, and we're 0:05:23.640 --> 0:05:27.159 also seeing a lot of reamptive alignment needs preemptive alignment. 0:05:27.200 --> 0:05:29.559 And we're seeing a lot of lobbying which we hadn't 0:05:29.600 --> 0:05:32.159 seen before too in the overruling of the Anti Trust 0:05:32.160 --> 0:05:35.880 Division by senior officials who are talking to lobbyists. And 0:05:35.960 --> 0:05:38.480 so there is a lot of concern right now in 0:05:38.520 --> 0:05:41.840 the anti trust community about the rule of lobbying really 0:05:41.880 --> 0:05:44.160 prevailing over the rule of law when it comes to 0:05:44.400 --> 0:05:45.320 merger enforcement. 0:05:45.880 --> 0:05:47.760 And this is stuff that we see after the fact, 0:05:47.880 --> 0:05:50.400 you know, after an announcement has made, as opposed to 0:05:50.480 --> 0:05:50.840 during it. 0:05:50.920 --> 0:05:51.320 That's right. 0:05:51.360 --> 0:05:53.479 We see reports and of course I'm not privy to 0:05:53.640 --> 0:05:56.040 what's going on behind closed doors, but there has been 0:05:56.040 --> 0:05:59.279 a lot of news reporting and a former senior FTC 0:05:59.400 --> 0:06:02.200 official who reach simply left, who has spoken out about 0:06:02.240 --> 0:06:05.600 some of the activities related to the Hewlett Packard Juniper deal. Now, 0:06:05.640 --> 0:06:08.080 most recently, we have a deal between two huge real 0:06:08.160 --> 0:06:11.799 estate brokerages, Compass and anywhere that was cleared very quickly 0:06:11.880 --> 0:06:14.920 without even a deep investigation by the Federal Trade Commission 0:06:14.960 --> 0:06:17.720 upside the Department of Justice. That surprised a lot of people. 0:06:17.760 --> 0:06:19.880 I think it even surprised the companies that have projected 0:06:19.920 --> 0:06:23.479 to close much later this year. And apparently that was 0:06:23.520 --> 0:06:25.240 also because lobbyist had stepped in. 0:06:25.560 --> 0:06:28.560 Our thanks to Jennifer Ree Bloomberg Intelligence Senior litigation Analyst. 0:06:28.720 --> 0:06:31.719 We move now to a conversation about artificial intelligence. The 0:06:31.760 --> 0:06:35.800 branding agency Motto recently put out a report about artificial intelligence. 0:06:36.000 --> 0:06:38.920 It says that while AI makes content faster and cheaper, 0:06:39.160 --> 0:06:42.400 many companies are discovering a paradox. The more they produce, 0:06:42.680 --> 0:06:44.240 the less they stand out for more. 0:06:44.360 --> 0:06:47.000 Guest host John Tucker and Alexander Somonova were joined by 0:06:47.080 --> 0:06:50.000 Sonny Bunnell, co founder and CEO of Motto. 0:06:50.279 --> 0:06:52.880 They began by asking Sonny to explain what happens at 0:06:52.880 --> 0:06:54.640 the intersection of AI and branding. 0:06:55.000 --> 0:06:57.800 Well, I think that like AI is changing what it 0:06:57.839 --> 0:07:00.960 means to create, particularly in the lane landscape of brand 0:07:00.960 --> 0:07:03.720 which is my world and the world that I work 0:07:03.760 --> 0:07:07.000 in primarily. And we're told that this is progress, right, 0:07:07.360 --> 0:07:10.320 and in many ways it is. But the real question 0:07:10.440 --> 0:07:14.239 isn't really whether AI can make more. We're entering into 0:07:14.400 --> 0:07:16.520 what we call it modo kind of a meaning deficit, 0:07:16.640 --> 0:07:20.240 where it's whether you can actually make meaning with your 0:07:20.360 --> 0:07:22.760 brand in order to stand out in a sea of 0:07:22.800 --> 0:07:27.000 sameness with volumes of content being produced every day, because 0:07:27.440 --> 0:07:31.280 more content doesn't necessarily guarantee value. AI is going to 0:07:31.560 --> 0:07:35.239 accelerate brand creation in a way we haven't seen before, 0:07:35.480 --> 0:07:38.520 but it will also flood the market with sameness. And 0:07:38.560 --> 0:07:41.560 so the intersection of those two things means there's an 0:07:41.560 --> 0:07:46.000 opportunity for brands to stand out, to have a meaningful difference, 0:07:46.040 --> 0:07:49.280 and really protect the point of view and the vision 0:07:49.360 --> 0:07:50.120 of their brands. 0:07:50.520 --> 0:07:54.640 Sonny. From a consumer perspective, what might a consumer notice 0:07:54.680 --> 0:07:58.280 about a company that's used AI and their branding versus 0:07:58.360 --> 0:07:59.360 a company that hasn't. 0:07:59.560 --> 0:08:01.920 Well, I think AI slop is a real thing. You know, 0:08:01.960 --> 0:08:04.440 we're also seeing a world in which we can't even 0:08:04.520 --> 0:08:09.200 tell if it's real or fake. And to a trained eye, though, 0:08:09.240 --> 0:08:12.200 particularly in the world of branding, you're able to pick 0:08:12.240 --> 0:08:16.480 out when there has been a usage of AI, to 0:08:16.600 --> 0:08:19.320 the point of it's not as advanced as I think 0:08:19.320 --> 0:08:23.560 it could be particularly in things like image creation, logos, 0:08:23.680 --> 0:08:27.960 you know, prototypes, even things like article generation. You see 0:08:27.960 --> 0:08:30.960 a lot of this where people are using the same prompts, 0:08:31.040 --> 0:08:33.839 they're using the same outputs, and what that ultimately does 0:08:33.920 --> 0:08:37.600 is just create this kind of sameness across the industry 0:08:37.679 --> 0:08:39.840 where you know, to a trained eye, especially if you've 0:08:39.960 --> 0:08:42.640 been in branding for a long time. And I also 0:08:42.679 --> 0:08:45.880 think to consumers, they begin to sort of identify whether 0:08:46.000 --> 0:08:48.760 or not that that is something that is authentic or 0:08:48.800 --> 0:08:50.400 something that's been manufactured. 0:08:51.360 --> 0:08:54.040 To your point, I feel like sometimes when I'm reading 0:08:54.080 --> 0:08:57.800 things online, I can distinguish whether it was written by 0:08:57.840 --> 0:09:00.880 AI or by a person. What is the remedy to that? 0:09:01.640 --> 0:09:04.760 Well, I think the biggest mistake is letting AI kind 0:09:04.800 --> 0:09:07.760 of average you. Out right leaders are using it to 0:09:07.920 --> 0:09:12.360 sound polished and professional, and they erase the very thing 0:09:12.440 --> 0:09:18.040 that actually builds trust, which is personality, imperfection, specificity, right 0:09:18.080 --> 0:09:21.320 point of view. AI can produce language, but it can't 0:09:21.360 --> 0:09:24.520 always produce belief, and so there's a huge opportunity to 0:09:24.559 --> 0:09:27.679 make sure that if you're using AI or that you're 0:09:27.760 --> 0:09:31.319 tapping into those tools which are incredibly powerful and they 0:09:31.440 --> 0:09:35.640 do amplify your ability to do things more efficiently. But 0:09:36.080 --> 0:09:38.760 you have to be careful that you're not actually like 0:09:39.120 --> 0:09:41.800 overruling or overwriting your own point of view and your 0:09:41.800 --> 0:09:46.040 own perspective and your own intelligence and originality in favor 0:09:46.160 --> 0:09:49.160 of those tools in a way that diminishes own your 0:09:49.200 --> 0:09:51.680 own tone of voice, or your own personality. 0:09:51.920 --> 0:09:54.480 Okay, so give me an example, how how do I 0:09:54.840 --> 0:09:58.640 stand out in the c of AI. 0:09:59.360 --> 0:10:01.600 Well, I think you've I've got to think about number 0:10:01.600 --> 0:10:04.840 one point of view, thinking about originality. Right, So I 0:10:04.880 --> 0:10:09.560 talked about when abundance goes up, differentiation goes down. So 0:10:09.760 --> 0:10:12.080 if we're in a world where everybody can use the 0:10:12.120 --> 0:10:15.000 same prompts and use the same tools and produce some 0:10:15.320 --> 0:10:19.240 similar assets, there's opportunities for let's say, a brand to 0:10:19.320 --> 0:10:21.839 really distinguish their point of view and distinguish their voice. 0:10:21.880 --> 0:10:25.480 And where does that typically come from. Well, every business 0:10:25.520 --> 0:10:28.920 on the planet is made up of a unique footprint, 0:10:28.960 --> 0:10:33.040 a unique culture, a unique group of people. And when 0:10:33.280 --> 0:10:37.800 you have more creative power than ever before, we also can, 0:10:38.320 --> 0:10:40.400 on the flip side of that, have less meaning and 0:10:40.480 --> 0:10:43.960 creative meaning than ever before. So when you're trying to 0:10:44.000 --> 0:10:47.559 bring relevance out into your organization, or say like your 0:10:47.600 --> 0:10:51.360 own maybe your own personal brand. You're looking for opportunities 0:10:51.400 --> 0:10:54.800 to use AI as a sparring partner, but not a 0:10:54.840 --> 0:10:58.800 replacement for your own thoughts and ideas and how you 0:10:58.880 --> 0:11:01.760 see the world, and whether that's content you're putting out, 0:11:01.800 --> 0:11:05.079 whether that's brand work that you're putting out, or brand 0:11:05.120 --> 0:11:08.640 systems that you're putting out, brand identity and messaging. Any 0:11:08.640 --> 0:11:10.520 way that you can use to sort of have your 0:11:10.559 --> 0:11:12.760 own clarity and point of view is what's going to 0:11:12.760 --> 0:11:15.560 help you distinguish yourself in the market because customers are 0:11:15.559 --> 0:11:20.679 going to They're now beginning to understand that. It's like 0:11:20.840 --> 0:11:23.600 if you've ever seen that show is It Cake? They 0:11:23.640 --> 0:11:26.040 know the difference. And so I think you're going to 0:11:26.080 --> 0:11:30.439 see more people driving to companies and organizations that are authentic, 0:11:30.720 --> 0:11:33.480 that do in some cases like misspelled word or have 0:11:33.559 --> 0:11:34.479 a typo. 0:11:34.760 --> 0:11:37.920 Our Thanks to Sonny Bunnell, co founder and CEO of Motto. 0:11:38.280 --> 0:11:40.080 Coming up, we'll look at some of the biggest worries 0:11:40.120 --> 0:11:41.640 for CEOs in twenty twenty six. 0:11:41.920 --> 0:11:44.680 You're listening to Bloomberg Intelligence on Bloomberg Radio for writing 0:11:44.720 --> 0:11:46.760 in depth research and data on two thousand companies and 0:11:46.840 --> 0:11:48.080 one hundred and thirty industries. 0:11:48.200 --> 0:11:51.280 You can access Bloomberg Intelligence via bio on the terminal, 0:11:51.360 --> 0:11:52.480 I'm Scarlett Foo and. 0:11:52.440 --> 0:11:54.439 I'm Paul Sweeney, and this is Bloomberg. 0:11:58.600 --> 0:12:03.120 This is Bloomberg's Intelligence with Scarlet Foo and Paul Sweeney 0:12:03.440 --> 0:12:04.760 on Bloomberg Radio. 0:12:05.480 --> 0:12:08.079 To move next to research, Bloomberg Intelligence recently put out 0:12:08.080 --> 0:12:11.720 on retailers. According to BI, even as retailers ramp up 0:12:11.760 --> 0:12:15.760 AI investment impulse purchases are still favoring in person engagement 0:12:15.880 --> 0:12:16.240 for more. 0:12:16.320 --> 0:12:19.160 Guest hosts Alexandra Simonova and I were joined by Lindsay Dutch, 0:12:19.240 --> 0:12:23.160 our Consumer Hardlines senior analysts. We began by asking Lindsay 0:12:23.240 --> 0:12:25.640 about how retailers are currently implementing AI. 0:12:26.120 --> 0:12:30.560 Retailers are mostly using AI to improve employee productivity, move 0:12:30.600 --> 0:12:35.880 employees up the value chain, improve affla, rational efficiency, and 0:12:35.960 --> 0:12:38.880 on the customer side, we're mostly seeing it in terms 0:12:38.960 --> 0:12:42.760 of like a customer service chatbot, maybe some personalization when 0:12:42.800 --> 0:12:46.040 you look at your email ads. But there's you know, 0:12:46.120 --> 0:12:48.600 new levels that are coming that will really you know, 0:12:48.679 --> 0:12:52.439 amp up. You know AI's place in that retail shopping journey. 0:12:53.000 --> 0:12:55.400 But as you mentioned, I think you know that spur 0:12:55.440 --> 0:12:57.920 of the moment. That's spontaneity, when you find something that 0:12:57.960 --> 0:12:59.800 you love and you have to buy it, you know, 0:13:00.280 --> 0:13:04.360 big piece of the shopping and retail world, and that 0:13:04.480 --> 0:13:08.119 really still you need some human element in that process. 0:13:08.679 --> 0:13:11.360 Lindsay, we talk often about the death of brick and 0:13:11.400 --> 0:13:14.760 mortar stores. People aren't going into physical stores as much 0:13:14.760 --> 0:13:17.360 as they are shopping online. Do you think that I 0:13:17.640 --> 0:13:20.640 can reignite the excitement for going into a store and 0:13:20.720 --> 0:13:22.199 experiencing the technology. 0:13:22.840 --> 0:13:25.920 So I actually think we're already seeing a return to 0:13:26.000 --> 0:13:28.319 brick and mortar, you know, coming out of the pandemic. 0:13:28.440 --> 0:13:31.160 You know, people realize how important it is to have 0:13:31.200 --> 0:13:35.720 an in person experience. More recently, you know, I've heard comments, 0:13:35.840 --> 0:13:38.000 you know, I follow best Buy. You know they have 0:13:38.120 --> 0:13:41.520 talked about that gen Z and younger shoppers are showing 0:13:41.520 --> 0:13:44.280 a much stronger preference to shop in the store, to 0:13:44.520 --> 0:13:47.480 talk to their geek squad, you know, you know, to 0:13:47.520 --> 0:13:50.200 get advice, to browse things in person. We also see 0:13:50.200 --> 0:13:53.199 that from an alta beauty as well. So I do 0:13:53.280 --> 0:13:56.600 think e commerce penetration will continue to rise as a whole. 0:13:57.080 --> 0:13:59.960 I think these new technologies will continue to support more 0:14:00.080 --> 0:14:03.960 shopping online. But I do think there is a personal 0:14:04.040 --> 0:14:08.760 element that will remain, and you know, we see strong 0:14:08.840 --> 0:14:11.440 brick and mortar demand on the retail real estate side 0:14:11.520 --> 0:14:13.800 and that is expected to continue for some time. 0:14:15.000 --> 0:14:18.320 Having said all that, how does AI enhance the ability 0:14:18.440 --> 0:14:22.880 for stores to be able to reach out to consumers 0:14:23.080 --> 0:14:27.640 so that they're there and have the right recommendations when 0:14:27.720 --> 0:14:30.760 consumers are in the mood to make impulse purchases. 0:14:31.800 --> 0:14:35.360 Yeah, so right now, I think the best consumer facing 0:14:36.320 --> 0:14:40.280 use of AI is really increasing discovery exactly what you're saying, 0:14:40.440 --> 0:14:44.640 So being able to serve up product online when a 0:14:44.640 --> 0:14:46.880 customer is looking for it. And you know, this new 0:14:46.920 --> 0:14:51.680 tool that Google co developed with Walmart and others, Universal 0:14:51.840 --> 0:14:55.120 Commerce Protocol, is going to do just that. So you 0:14:55.160 --> 0:14:58.440 can pop into this tool, which is powered by Gemini, 0:14:59.200 --> 0:15:01.000 and you can say I'm looking looking for a navy 0:15:01.000 --> 0:15:04.160 booblazer that I don't want to have dry cleaned, and 0:15:04.480 --> 0:15:08.520 it will serve up you know, the product from the brand. 0:15:09.200 --> 0:15:13.800 You can transact right there, so it's all seamless. Something 0:15:13.880 --> 0:15:16.760 like that, you know, is a great tool to bring 0:15:17.320 --> 0:15:20.720 product directly to the person and close the gap between 0:15:20.960 --> 0:15:24.160 looking for something that you want, finding it, and transacting it. 0:15:24.720 --> 0:15:27.000 And we see a lot of technology, you know coming 0:15:27.080 --> 0:15:29.760 to the fore that that's going to allow that to happen. 0:15:30.440 --> 0:15:34.280 Lindsay, AI and new technology can be really complicated for 0:15:34.400 --> 0:15:37.880 consumers to navigate. What are companies doing to help guide 0:15:37.880 --> 0:15:41.760 shoppers through maximizing the experience they get with AI? 0:15:43.360 --> 0:15:45.520 Yeah, that's a tough one. I mean I think that 0:15:45.680 --> 0:15:49.680 you know, people in generally are using more tools like Gemini, 0:15:49.920 --> 0:15:53.120 you know, for all sorts of things chat kept that 0:15:53.240 --> 0:15:56.440 will you increase that comfort level. And we have seen 0:15:56.560 --> 0:16:00.240 over time, you know, I also cover home furnishings. You know, 0:16:00.280 --> 0:16:02.920 in the beginning, when people were starting to transact online, 0:16:02.920 --> 0:16:05.120 like no one wanted to buy a couch or a 0:16:05.120 --> 0:16:07.520 big product like that that you would typically want to 0:16:07.560 --> 0:16:11.160 sit on and feel. And you know that over time, 0:16:11.320 --> 0:16:15.280 you know, retailers have figured out how to showcase their 0:16:15.280 --> 0:16:19.000 product in a digital way that makes comfortable customers more 0:16:19.000 --> 0:16:23.400 comfortable transacting on a big ticket item like that that 0:16:23.440 --> 0:16:25.880 you would normally really want to see in person. And 0:16:25.960 --> 0:16:28.360 I think the same thing would be true for these 0:16:28.440 --> 0:16:32.120 other new technologies. It will take time, you know, adoption 0:16:32.240 --> 0:16:35.720 will rise, it will rise slowly, and that's why I 0:16:35.720 --> 0:16:38.080 think it's a real balance you have to be, you know, 0:16:38.120 --> 0:16:39.840 in that tech world, but you also have to be 0:16:39.880 --> 0:16:40.360 in person. 0:16:41.000 --> 0:16:44.480 Thanks to Lindsay Dutch, Bloomberg Intelligence Consumer hardline senior alist, 0:16:44.880 --> 0:16:47.520 we move next to research Bloomberg Intelligence recently put out 0:16:47.560 --> 0:16:48.480 on restaurants. 0:16:48.520 --> 0:16:51.520 According to bi US, restaurant same store sales look to 0:16:51.560 --> 0:16:54.320 accelerate in the first quarter due to cheaper gas prices 0:16:54.360 --> 0:16:56.240 and relief from new tax rules. 0:16:56.560 --> 0:16:59.000 For more on this, guest host John Tucker and Alexander 0:16:59.040 --> 0:17:02.320 Semonova were joined by Michael Haylen, Bloomberg Intelligence senior restaurant 0:17:02.320 --> 0:17:03.360 and food service analysts. 0:17:03.640 --> 0:17:06.320 They asked mine call it's a breakdown Beid's most recent research. 0:17:06.800 --> 0:17:11.520 We think sales are set to improve here in twenty 0:17:11.520 --> 0:17:14.560 twenty six, especially in the first half. You know, oil 0:17:14.920 --> 0:17:20.600 guestling prices are down, you know, thirteen ish percent versus 0:17:20.600 --> 0:17:24.000 one queue of last year. We're lapping you know, bad weather, 0:17:25.240 --> 0:17:29.320 cold weather, snow, and a really bad flu season from 0:17:29.320 --> 0:17:31.879 a year ago. And then we have tax relief, which 0:17:31.920 --> 0:17:37.439 which historically really helps restaurants spending, and you know, and 0:17:37.480 --> 0:17:38.959 then we have a couple of things on the upside. 0:17:39.000 --> 0:17:43.200 I mean, this administration is looking into, you know, potentially 0:17:43.240 --> 0:17:46.080 credit card reform, and I don't know if they're done 0:17:46.160 --> 0:17:49.680 with the tax reform, and we could see more interest 0:17:49.760 --> 0:17:51.760 rate cuts. So all of those things we think are 0:17:51.760 --> 0:17:55.520 going to feed into better consumer sentiment. And we saw 0:17:55.560 --> 0:17:58.880 that in some of the economic data last month, and 0:17:58.920 --> 0:18:02.240 we think it spells, you know, a much better year 0:18:02.280 --> 0:18:03.159 for restaurants spending. 0:18:03.240 --> 0:18:06.399 We're talking about Daniel Blues restaurants or Mickey D's. 0:18:07.320 --> 0:18:10.560 Well, you know, we think McDonald's, you know, a lot 0:18:10.560 --> 0:18:12.359 of these chains we cover are going to benefit, but 0:18:12.400 --> 0:18:14.560 we think, you know, McDonald's in Taco Bell in our 0:18:14.800 --> 0:18:17.440 most recent note or two that we pointed to because 0:18:18.080 --> 0:18:21.600 low income consumer are going to benefit from the tax reform. 0:18:21.720 --> 0:18:26.040 They're they're the segment of the consumer that have kind 0:18:26.040 --> 0:18:28.119 of pulled back from restaurants in the last couple of 0:18:28.200 --> 0:18:32.000 years and so giving them a boost with with tax reform. 0:18:32.240 --> 0:18:35.159 They're the ones that you know are most sensitive to 0:18:35.200 --> 0:18:37.640 gasoline prices, so the cheaper gas is going to help 0:18:37.680 --> 0:18:41.080 them the most. These things are all pointing to, you know, 0:18:41.160 --> 0:18:45.160 better results at fast food chains like McDonald's and Taco Bell. 0:18:45.800 --> 0:18:49.320 Are there any specific chains that you think will be 0:18:49.680 --> 0:18:51.320 bigger beneficiaries than others? 0:18:52.560 --> 0:18:55.040 Well, outside of those two, you know, cav and Wingstop 0:18:55.080 --> 0:18:56.600 are a couple of the names that we think can 0:18:56.640 --> 0:18:58.000 have big bounce back years. 0:18:58.280 --> 0:18:58.440 You know. 0:18:59.440 --> 0:19:02.480 Kava, you know, in a vacuum, it had a very 0:19:02.480 --> 0:19:05.679 good year, right, but they didn't hit lofty targets that 0:19:05.720 --> 0:19:08.480 they had set, and earning slowed off of a very 0:19:08.520 --> 0:19:12.360 strong twenty twenty four and so we think they're set 0:19:12.440 --> 0:19:15.720 up really nicely to see an acceleration here in same 0:19:15.760 --> 0:19:17.920 store sales and kind of the same thing in Wingstop. 0:19:17.960 --> 0:19:21.600 Both of them were victims in twenty twenty five of 0:19:21.680 --> 0:19:24.639 incredible twenty twenty four success, and now that they have 0:19:25.400 --> 0:19:30.159 much more reasonable same store sales comps to lap, you know, 0:19:30.240 --> 0:19:32.760 we think we could see a big boost there. 0:19:33.000 --> 0:19:33.199 You know. 0:19:33.400 --> 0:19:35.440 Wingstop, one of the big things that they have going 0:19:35.480 --> 0:19:38.600 on is a new smart kitchens that are going to massively, 0:19:38.760 --> 0:19:42.960 massively help the operations improve spa service and get people 0:19:43.000 --> 0:19:45.200 their wings hotter and faster. 0:19:45.640 --> 0:19:48.359 Oh okay, what are you talking about the intersection of 0:19:48.440 --> 0:19:50.439 AI and chicken wings? 0:19:51.680 --> 0:19:55.800 Yeah, I mean, you know restaurant business Listen, the restaurant 0:19:55.840 --> 0:20:01.359 business man has been historically underinvested in technology, you know, 0:20:01.480 --> 0:20:03.320 and they've been quickly. 0:20:03.000 --> 0:20:07.160 Stolen and a deep fryer. What technology. 0:20:08.200 --> 0:20:10.119 Yeah, Well, listen, when you go and sit down in 0:20:10.200 --> 0:20:15.080 a restaurant and you have five people ordering five different things, right, 0:20:16.200 --> 0:20:18.720 you don't start them all at the same time. Right, 0:20:18.840 --> 0:20:21.400 Like your sushi is going to be done a lot, 0:20:21.560 --> 0:20:25.320 maybe faster or slower than my chicken karaaki, right. And 0:20:25.400 --> 0:20:28.800 so technology is being used in the kitchen to let 0:20:28.840 --> 0:20:31.520 the cooks know when to fire each meal so that 0:20:31.600 --> 0:20:35.240 everything comes out at the exact same time hot. Right. 0:20:35.280 --> 0:20:39.040 So there's definitely a lot of uses for artificial intelligence 0:20:39.040 --> 0:20:40.600 and small kitchens in this industry. 0:20:40.920 --> 0:20:43.600 Our thanks to Michael Halen, Bloomberg Intelligence Senior Restaurant and 0:20:43.600 --> 0:20:44.600 food service analyst. 0:20:44.960 --> 0:20:47.160 We move next to a recent survey from the Conference 0:20:47.160 --> 0:20:50.400