WEBVTT - Markets May Be Undervaluing Potential Benefit To DISH (Podcast) 0:00:02.600 --> 0:00:05.320 Welcome to the Bloomberg Pienl podcast. I'm Paul swing you. 0:00:05.360 --> 0:00:07.680 Along with my co host Lisa Brahma Waits. Each day 0:00:07.720 --> 0:00:10.240 we bring you the most noteworthy and useful interviews for 0:00:10.280 --> 0:00:12.520 you and your money, Whether at the grocery store or 0:00:12.560 --> 0:00:15.480 the trading floor. Find a Bloomberg Penl podcast on Apple 0:00:15.520 --> 0:00:17.960 podcast or wherever you listen to podcasts, as well as 0:00:17.960 --> 0:00:22.200 at Bloomberg dot com. Well as Lisa just reported, it happened. 0:00:22.360 --> 0:00:24.599 So we finally got the Department of Justice approving T 0:00:24.760 --> 0:00:28.400 Mobile's acquisition of Sprint, clearing one of the biggest hurdles 0:00:28.480 --> 0:00:30.600 left to get this deal done. This deal is announced 0:00:30.600 --> 0:00:33.440 more than a year ago, Folks, to help us break 0:00:33.440 --> 0:00:36.000 it down, what the d o J actually said, today's 0:00:36.080 --> 0:00:39.080 Nabila Ahmed. She is a deal's reporter for Bloomberg News. 0:00:39.080 --> 0:00:43.279 She joins us in our Bloomberg Interactive Broker studio. So, uh, Nabila, 0:00:43.440 --> 0:00:46.080 what will? What is this d o J approval? What 0:00:46.120 --> 0:00:49.200 does it really look like? D i J is requiring 0:00:49.280 --> 0:00:54.640 Sprint in T Mobile to divest Sprints um prepaid businesses. 0:00:54.680 --> 0:00:57.720 So this includes Boost Mobile, Virgin Mobile and Sprints are 0:00:57.800 --> 0:01:01.520 in prepaid brand to dish and also give them some 0:01:01.640 --> 0:01:04.840 spectrum assets. And on top of that, they have to 0:01:04.880 --> 0:01:08.000 make available to Dish at least twenty thousand cell sites 0:01:08.319 --> 0:01:11.400 and hundreds of retail locations so that Dish can actually, 0:01:11.760 --> 0:01:14.680 you know, do its business with consumers. So far, the 0:01:14.800 --> 0:01:19.360 market response has indicated that people are underwhelmed by dishes 0:01:19.560 --> 0:01:22.800 involvement here and think that this is a wholesale win 0:01:23.000 --> 0:01:26.560 for T Mobile, Sprint as well as Verizon and a 0:01:26.720 --> 0:01:29.360 T and T. Is that what people are saying who 0:01:29.440 --> 0:01:31.720 you speak to as well in the Billa listen the question. 0:01:32.000 --> 0:01:34.520 I mean, it can't both be a win for Sprint 0:01:34.560 --> 0:01:37.880 and T Mobile and for Dish, can it? I mean? So, yeah, 0:01:37.920 --> 0:01:40.760 you can argue that Dish, you know, through this deal 0:01:40.800 --> 0:01:43.080 will be set up to become a really strong force carrier, 0:01:43.120 --> 0:01:45.640 but it's going to take a really long time. So 0:01:45.720 --> 0:01:48.160 you've got Sprint and T Mobile being strengthened here, but 0:01:48.440 --> 0:01:50.600 Dish is going to be a distant fourth I think, 0:01:50.600 --> 0:01:52.720 and you know, making del Rahim today just said that 0:01:52.920 --> 0:01:56.320 the remedies set up Dish as a disruptive force in wireless. 0:01:57.040 --> 0:01:59.560 I don't know about that. I want to bring a 0:01:59.600 --> 0:02:02.440 te equal Asian. Uh. Jennifer Reid. Jennifer is a senior 0:02:02.480 --> 0:02:05.400 litigation annalys from Bloomberg Intelligence. She also joins us here 0:02:05.400 --> 0:02:08.120 in our Bloomberg Interactive Broker Studio. So, Jen, from your 0:02:08.160 --> 0:02:11.920 anti trust perspective, UH, is there anything unusual in what 0:02:12.000 --> 0:02:14.080 came out of the d o J today? You know, 0:02:14.120 --> 0:02:16.080 I don't think that there's anything unusual. But the one 0:02:16.120 --> 0:02:17.840 thing I do want to push back on because I've 0:02:17.880 --> 0:02:20.040 I've heard from many that this is really not going 0:02:20.080 --> 0:02:22.600 to create a fourth competitor, and you know, what is 0:02:22.600 --> 0:02:24.240 the d o J thinking? But I will have to 0:02:24.280 --> 0:02:27.080 say that the d o J knows how much opposition 0:02:27.120 --> 0:02:29.680 there's been to this deal and how much opposition there 0:02:29.680 --> 0:02:31.760 may be to this settlement, and they're really still coming 0:02:31.760 --> 0:02:34.240 off that loss. You know, from a T and T time, 0:02:34.280 --> 0:02:36.760 Warner and I do think that they're going to be 0:02:36.919 --> 0:02:39.200 very careful about what they do here, and they vet 0:02:39.280 --> 0:02:42.639 these divestiture packages very carefully, and I have to think 0:02:42.680 --> 0:02:44.840 they went through it with a fine tooth comb and 0:02:44.880 --> 0:02:47.280 at least are convinced that this will do the trick. 0:02:47.639 --> 0:02:50.480 But but in terms of being unusual or unique, I 0:02:50.480 --> 0:02:53.120 think the time it took was unusual. How much came 0:02:53.120 --> 0:02:55.400 out to the public was unusual, and even the announcement 0:02:55.400 --> 0:02:57.880 today was a bit unusual. I'm surprised to hear you 0:02:57.919 --> 0:02:59.839 say this. Do do you think that markets are sort 0:02:59.840 --> 0:03:04.040 of under estimating how good this deal could potentially be 0:03:04.160 --> 0:03:07.080 for Dish. Well, it's possible, that's one thing, But it 0:03:07.080 --> 0:03:09.480 could also be that they still have a challenge the 0:03:09.480 --> 0:03:13.320 companies with the state lawsuit. So this isn't over because 0:03:13.360 --> 0:03:15.240 they still have a challenge. They still have to go 0:03:15.280 --> 0:03:17.320 to court, and they either have to win in court 0:03:17.680 --> 0:03:19.880 or they have to ultimately settle with the States in 0:03:19.960 --> 0:03:22.440 order to get this deal closed. The other thing is 0:03:22.440 --> 0:03:24.600 that Dish has been trading for a long time on 0:03:24.639 --> 0:03:27.680 the expectation that they sell their spectrum assets and make 0:03:27.720 --> 0:03:30.120 a ton of money out of that. This deal means 0:03:30.120 --> 0:03:32.880 that Dish will not that's not what's going to be happening, 0:03:32.960 --> 0:03:35.440 because they still will mean that Dish actually can't sell 0:03:35.480 --> 0:03:39.040 control of those assets to anybody for three years. So 0:03:39.120 --> 0:03:41.440 that may be another reason why you're seeing Dish kind 0:03:41.440 --> 0:03:44.880 of share price performance being underwhelming today. So Nobilla, what's 0:03:44.880 --> 0:03:49.440 the sense on timing when the sink can actually close? Well, 0:03:49.480 --> 0:03:52.280 I guess they could close now, even though the lawsuit 0:03:52.320 --> 0:03:55.400 from the State Ages is pending. They can technically do that, 0:03:55.760 --> 0:03:57.920 but my understanding is that the companies are actually going 0:03:57.960 --> 0:04:00.200 to be looking to settle with the State ages, these 0:04:00.720 --> 0:04:03.560 twelve states and the District of Columbia, and you know 0:04:03.560 --> 0:04:06.040 the court date is coming up in early October, but 0:04:06.080 --> 0:04:08.440 they're going to try to settle before that. I love 0:04:08.480 --> 0:04:10.920 how Paul asks the question, you know, when are they 0:04:10.920 --> 0:04:13.400 going to finally settle this? When can we stop talking 0:04:13.440 --> 0:04:20.840 about that there's there's there's there exactly? I should just 0:04:20.880 --> 0:04:23.159 mention just shares are up two and a half percent, 0:04:23.240 --> 0:04:26.360 so people do see some potential upside here, much bigger 0:04:26.360 --> 0:04:28.839 gains though so far year to data on both Team 0:04:28.880 --> 0:04:32.599 Mobile and Sprint, I do have to wonder. Tara La Chappella, 0:04:32.640 --> 0:04:36.440 Bloomberg Opinion earlier today was asking the question, really wisely, 0:04:37.080 --> 0:04:40.479 why are anti trust regulators not more focused on the 0:04:40.520 --> 0:04:44.200 wireless carriers in the same way that they are big tech? 0:04:44.400 --> 0:04:47.760 Jen Well, I think the issue is that when they 0:04:47.800 --> 0:04:51.279 open these investigations, they're usually based on complaints. This is 0:04:51.320 --> 0:04:54.400 what triggers it and true antitrust complaints, not not complaints 0:04:54.440 --> 0:04:56.920 that I just don't like this company, but this company 0:04:57.040 --> 0:04:59.520 is doing things that thwart me as a new competitor 0:04:59.800 --> 0:05:03.600 or in increase consumer prices. And when those complaints come in, 0:05:04.000 --> 0:05:07.039 this is what leads to an investigation, and usually it 0:05:07.040 --> 0:05:10.680 will be an investigation of a company that's dominant, dominant 0:05:10.680 --> 0:05:13.360 within a market. And if you look at wireless, while 0:05:13.400 --> 0:05:16.039 we call it a concentrated market and we have big carriers, 0:05:16.320 --> 0:05:19.520 you can't really say any one of them is necessarily dominant. No, 0:05:19.680 --> 0:05:22.720 but you could say that the fight between T Mobile 0:05:22.760 --> 0:05:26.960 and Sprint lowered costs for consumers materially well absolutely, and 0:05:26.960 --> 0:05:31.080 then eliminating that fight will end up increasing costs for everyone, 0:05:31.080 --> 0:05:32.600 which is a reason why people think that A T 0:05:32.720 --> 0:05:34.480 and T and Verizon are going to be such big 0:05:34.480 --> 0:05:38.800 winners from this high up. So, I mean, Nobilla, come 0:05:38.839 --> 0:05:40.760 in here. I mean, what's the what's the counter argument? 0:05:41.600 --> 0:05:44.240 What's the counter argument that you know, America is going 0:05:44.279 --> 0:05:46.160 to be leading in five G, this is going to 0:05:46.240 --> 0:05:49.080 be good for consumers, that's the counter argument. You know. 0:05:49.120 --> 0:05:50.880 This is what Makin del Rahim wanted to do with 0:05:50.920 --> 0:05:53.200 the settlement is to be able to say this is 0:05:53.240 --> 0:05:55.640 actually going to be good for consumers. And if you 0:05:55.680 --> 0:05:58.400 had Sprint was left behind, as we know, Lasa's friends 0:05:58.440 --> 0:06:01.039 got a lot of its own issue is and and 0:06:01.200 --> 0:06:03.520 you know it may have gone broke or would have 0:06:03.520 --> 0:06:05.400 needed to have been taken over by somebody else. They 0:06:05.440 --> 0:06:08.440 would have needed a partner at the very least. Um, 0:06:08.560 --> 0:06:10.159 So this is a way of ensuring that you have 0:06:10.240 --> 0:06:13.520 a stronger third carrier as well as an emerging fourth carrier. 0:06:13.640 --> 0:06:15.200 It's been such a long time to Bill, if I 0:06:15.279 --> 0:06:18.840 forget the original terms of the deal, but is massa 0:06:18.920 --> 0:06:22.440 Herosan and soft Bank? Are they exiting completely their investment? 0:06:22.680 --> 0:06:25.560 They're not. They're not clemented the company. They are going 0:06:25.560 --> 0:06:27.599 to be still in the new company, but Derscha Telecom 0:06:27.640 --> 0:06:30.800 will be the controlling shareholder. And the terms, just to 0:06:30.839 --> 0:06:34.640 remind everyone, so it's twenty six and a half billion 0:06:34.680 --> 0:06:38.440 dollars is the overall headline value. And actually they're saying 0:06:38.440 --> 0:06:41.960 that even though they're making these divestitures, um, they're planned, 0:06:42.000 --> 0:06:45.120 forty three billion dollars of synergies will still stand. And 0:06:45.160 --> 0:06:46.640 I was going to say, at least of the argument 0:06:46.640 --> 0:06:48.640 that you just made that you asked no Bill about 0:06:48.680 --> 0:06:51.120 is exactly what the state's argument is in court. And 0:06:51.160 --> 0:06:53.280 the answer is going to be that the remedy is 0:06:53.320 --> 0:06:55.800 not going to allow the other three wireless carriers to 0:06:55.920 --> 0:06:58.520 raise prices. That that's going to constrain their ability to 0:06:58.560 --> 0:07:00.560 raise prices. So that's exactly what the fight is going 0:07:00.640 --> 0:07:02.440 to be going forward. And the one last thing I 0:07:02.480 --> 0:07:04.359 should say is that you know, we are still waiting 0:07:04.400 --> 0:07:07.040 for formal left c C clearance here, so the companies 0:07:07.120 --> 0:07:09.400 technically can't close until they get that, and that might 0:07:09.400 --> 0:07:12.480 not be until September. When that happens, the States may 0:07:12.520 --> 0:07:14.480 have to go to court to seek an emergency order 0:07:14.520 --> 0:07:17.440 to keep the companies from closing. This is so interesting 0:07:17.480 --> 0:07:19.200 to me. I mean, yes, we've been talking about this 0:07:19.240 --> 0:07:22.760 deal forever, but it involves so much, and it involves, 0:07:22.840 --> 0:07:25.160 you know, so many different players, and I'm just wondering, Jen, 0:07:25.680 --> 0:07:27.840 what's the next step with some of these state lawsuits. 0:07:27.880 --> 0:07:30.360 I mean, we we've heard that they're probably going to settle. 0:07:30.480 --> 0:07:32.880 Is that your sense as well? Right now? I don't 0:07:32.920 --> 0:07:35.040 see it that way. I think the states are really 0:07:35.160 --> 0:07:36.920 dug in now at the companies are going to go 0:07:36.960 --> 0:07:39.080 in there and try hard to settle, and the states 0:07:39.080 --> 0:07:41.560 have more flexibility than the Department of Justice does in 0:07:41.640 --> 0:07:43.840 terms of what they can accept. They can even accept 0:07:43.840 --> 0:07:46.680 something like money just put into a fund or promises 0:07:46.720 --> 0:07:49.640 to build out even for G in certain rural areas. 0:07:49.680 --> 0:07:51.680 So I think that the companies will be trying very 0:07:51.720 --> 0:07:54.320 hard to do that. The next step right now is 0:07:54.360 --> 0:07:57.400 in August first meeting to hammer out the schedule. There 0:07:57.480 --> 0:07:59.960 was in October seventh trial date that was agreed upon, 0:08:00.280 --> 0:08:02.720 but it was contingent on T Mobile and Sprint getting 0:08:02.760 --> 0:08:05.360 this deal. The terms of the deal done July twelfth. 0:08:05.400 --> 0:08:08.560 Then that didn't happen, so Nobila legic real quickly. T Mobile, 0:08:08.600 --> 0:08:10.200 what are they going to do with these Sprint assets? 0:08:10.320 --> 0:08:13.240 Is there costs are taken out as a revenue, synergies. 0:08:13.280 --> 0:08:14.960 What's the upside here? Yeah, I mean they've got these 0:08:14.960 --> 0:08:17.120 forty three billion dollars of synergies which will be out 0:08:17.120 --> 0:08:19.800 of operational costs. And really what they're getting is really 0:08:19.840 --> 0:08:23.000 good quality midvance spectrum. Sprint has a lot of that, 0:08:23.280 --> 0:08:24.880 and that you know, this is what they're going to 0:08:25.040 --> 0:08:28.080 use to build out their five G network. Nabilla Ahmed, 0:08:28.120 --> 0:08:30.320 thank you so much for being with us. Jennifer Reeh 0:08:30.400 --> 0:08:33.720 Bloomberg Intelligence uh and Nabilla of Bloomberg News, thank you 0:08:33.760 --> 0:08:37.080 both for being here and passing through the d o 0:08:37.160 --> 0:08:40.440 J approval. It is official. UH, it is official that 0:08:40.520 --> 0:08:44.480 they have approved the tie up between Sprint and T Mobile. 0:08:44.720 --> 0:08:47.200 Right now, we want to turn our attention to UH 0:08:47.440 --> 0:08:50.880 to the Intel. Intel shows rose today after reporting second 0:08:50.920 --> 0:08:54.640 quarter earnings that beat expectations, that gave an upbeat forecast 0:08:54.960 --> 0:08:58.440 for chip sales, sort of an indo key indicator. We're 0:08:58.520 --> 0:09:00.840 very excited that we're about to hear from the CEO 0:09:01.200 --> 0:09:04.160 himself about what the outlook might be. There's been a 0:09:04.160 --> 0:09:08.520 lot of question recently about the outlook given China slowdown, 0:09:08.600 --> 0:09:11.679 given global economy. UH. So we're going to turn our 0:09:11.720 --> 0:09:15.400 attention over to Intel CEO Robert Swan talking with Bloomberg 0:09:15.440 --> 0:09:21.400 anchors Vonnie Quinn and Guy Johnson. You're listening to Bloomberg 0:09:21.480 --> 0:09:25.600 Markets with Lisa Ramowitz and Paul Sweeney on Bloomberg Radio. 0:09:25.880 --> 0:09:29.600 If you speak with any chief executive or chief financial 0:09:29.640 --> 0:09:34.640 officer of a big company, the buzzword today is artificial intelligence. 0:09:34.679 --> 0:09:37.840 How do you use it? How can we best get 0:09:37.880 --> 0:09:42.559 ahead of our competitors by understanding our business and deploying 0:09:42.600 --> 0:09:46.880 it UH in a way that makes our our employment 0:09:47.000 --> 0:09:49.120 more efficient. Joining us now as someone who knows a 0:09:49.160 --> 0:09:52.000 lot about it. Don White, chief executive officer and founder 0:09:52.000 --> 0:09:55.280 of Satisfied Labs in New York. So don before we 0:09:55.320 --> 0:09:58.360 get into sort of the big conundrum of where artificial 0:09:58.400 --> 0:10:00.880 intelligence can be deployed right now out and in the future, 0:10:01.200 --> 0:10:03.400 just give us a sense of what Satisfied Labs is. 0:10:03.920 --> 0:10:07.520 Satisfy Labs is an AI knowledge management platform that means 0:10:07.559 --> 0:10:10.480 we take information data and convert it into a way 0:10:10.520 --> 0:10:13.880 that machines can understand. Big buzzword around AI is that 0:10:13.960 --> 0:10:16.320 machines can learn well. For them to learn these we 0:10:16.440 --> 0:10:20.640 taught in specific format as specific verbiage. So what are 0:10:20.679 --> 0:10:23.440 some of the early investors? Like? Who are you doing 0:10:23.480 --> 0:10:26.320 business with right now? Our last round was led by 0:10:26.320 --> 0:10:29.560 Major League Baseball. We've also worked with the Broadway Community, 0:10:29.559 --> 0:10:31.880 a company called Broadway I which is a consortium of 0:10:31.920 --> 0:10:35.080 producers and theater owners. And then red Light Management, which 0:10:35.080 --> 0:10:37.760 is the largest independent music agency, has also bought in 0:10:37.800 --> 0:10:40.199 for the entertainment and music festival business. So what do 0:10:40.280 --> 0:10:42.800 you do for Major League Baseball? If I go to 0:10:43.080 --> 0:10:46.480 city Field for example see field. The company started out 0:10:46.480 --> 0:10:49.040 of the city Field. We were looking at a menu 0:10:49.160 --> 0:10:51.760 and there was a question one of my co founders asked, hey, 0:10:51.920 --> 0:10:53.760 you know they have bacon on a stick here, and 0:10:53.800 --> 0:10:55.959 he said, hey, how could we find bacon on a six? 0:10:56.000 --> 0:10:59.400 So we started promoting that idea and fans asked where 0:10:59.440 --> 0:11:00.800 can I get baking on a stick? And the whole 0:11:00.840 --> 0:11:04.560 idea kind of flew from that. That is a unique 0:11:04.559 --> 0:11:09.079 story about how an AI UH data management company to 0:11:09.160 --> 0:11:13.040 find bacon bake it on a stick. That's how I 0:11:13.040 --> 0:11:16.439 guess that. My question is when we talk about AI, 0:11:16.520 --> 0:11:18.440 it can be deployed in a whole host of different 0:11:18.440 --> 0:11:21.240 ways across a whole host of different industries. Just to 0:11:21.280 --> 0:11:23.559 give people a sense of what we're talking about, is 0:11:23.640 --> 0:11:26.760 is basically being to call somebody, call a company up 0:11:27.200 --> 0:11:30.640 and have a robot speak to you in a in 0:11:30.679 --> 0:11:34.640 a sufficient way? Is it? Uh? The concept of predicting 0:11:34.840 --> 0:11:37.400 a fans behavior? I mean, what what exactly are you 0:11:37.440 --> 0:11:40.400 trying to cater to? In the AI sort of umbrella. 0:11:40.600 --> 0:11:44.040 The future format is messaging. Messaging will be both chat 0:11:44.080 --> 0:11:48.439 and voice. It's really about collecting all the exact answers 0:11:48.480 --> 0:11:51.200 to questions so that you're not going through some tree, 0:11:51.520 --> 0:11:54.400 but getting exactly what you need based on your query. 0:11:54.480 --> 0:11:57.360 So all the technology companies right now are focused on 0:11:57.400 --> 0:12:00.560 getting their information in a format or a way that 0:12:00.640 --> 0:12:02.839 now when you do go onto chat, you can get 0:12:02.840 --> 0:12:05.480 exactly what you need right away. How predictable are we do? 0:12:05.520 --> 0:12:07.360 We just ask the same questions over and over again, 0:12:07.440 --> 0:12:10.960 us humans. We have reviewed nine million questions in just 0:12:11.080 --> 0:12:15.320 stadiums and about are very similar. But what you'll find 0:12:15.920 --> 0:12:18.120 is I have sixty five different ways to ask where 0:12:18.120 --> 0:12:20.839 the bathroom is? And it's really interesting to see how 0:12:20.960 --> 0:12:24.360 people approach that very common question with their own little skew. 0:12:26.160 --> 0:12:30.560 We're really boring essentially, what the nuts involved in this are. 0:12:30.760 --> 0:12:35.199 So what's your relationship with Apple? So we are a developer, 0:12:35.520 --> 0:12:39.640 we support the platform. So Apple business Chat has enabled 0:12:39.640 --> 0:12:42.800 our technology to be put through in l a f 0:12:42.880 --> 0:12:45.760 C and some of the other stadiums. So l a 0:12:45.800 --> 0:12:48.880 f C is Los Angeles Football Club. Okay, that's soccer. 0:12:49.200 --> 0:12:51.600 That is soccer. Just look at me. So if you 0:12:51.640 --> 0:12:53.880 go to the game tonight, you'll be able to leverage 0:12:53.920 --> 0:12:57.959 Apple business Chat to get a beer at a Express locations. 0:12:58.000 --> 0:12:59.959 You can order your beer, pay for it through Apple 0:13:00.040 --> 0:13:03.679 Pay on your Apple iPhone or or iPad, and then 0:13:03.720 --> 0:13:05.000 go walk up and get it right away and go 0:13:05.040 --> 0:13:08.800 back to your seat. So which industries have most effectively 0:13:08.920 --> 0:13:12.120 used AI already? So m AI is heavy in retail, 0:13:12.440 --> 0:13:15.880 it's now becoming much larger in sports and entertainment, tourism. 0:13:15.920 --> 0:13:18.480 You'll start to see the transportation companies pick up on it. 0:13:19.040 --> 0:13:22.720 Pharma obviously is another good opportunity to health the health area, 0:13:23.120 --> 0:13:25.120 and I think just the whole food and beverage industry. Like, 0:13:25.160 --> 0:13:27.920 we're working with some large brands both on the beverage 0:13:27.920 --> 0:13:30.680 side that are interested in how this data could change 0:13:30.679 --> 0:13:33.240 the way they predict products. What are people looking for 0:13:33.480 --> 0:13:35.560 versus what are people getting is a huge area AI 0:13:35.640 --> 0:13:37.160 can step in well. And I think that this is 0:13:37.200 --> 0:13:39.880 actually super important because people think about it from a 0:13:39.920 --> 0:13:42.560 messaging standpoint and from you calling someone up and not 0:13:42.640 --> 0:13:44.560 knowing whether you're dealing with a human or a robot. 0:13:45.000 --> 0:13:48.120 But what I when I've talked to CFOs in particular before, 0:13:48.160 --> 0:13:51.720 what they say is we want to understand what to 0:13:51.880 --> 0:13:56.719 create next and basically how to telegraph demands sort of 0:13:56.760 --> 0:14:00.840 the way Netflix does right with shows. It's fascinating to people. Yeah, which, 0:14:01.000 --> 0:14:02.960 so what are the some of the other applications here, 0:14:03.000 --> 0:14:05.360 So I kind of get the stadium thing. What are 0:14:05.400 --> 0:14:08.080 some of the retail applications of this. So retail is 0:14:08.120 --> 0:14:11.079 simple as navigating a store, like you walk into a store, 0:14:11.160 --> 0:14:12.920 and if you do talk to a person and get 0:14:12.960 --> 0:14:15.760 guided to a location or a product, the store brand 0:14:15.800 --> 0:14:18.280 never knows you wanted that product. So this fulfills a 0:14:18.280 --> 0:14:20.240 demand curve, which is like what you just said is 0:14:20.280 --> 0:14:22.440 if you could provide a digital messaging way to get 0:14:22.520 --> 0:14:25.720 what people want instead of talking necessarily to a person 0:14:25.760 --> 0:14:28.360 and looking for the staff, you now know what people 0:14:28.360 --> 0:14:30.120 are looking for and how you can better stock and 0:14:30.160 --> 0:14:34.600 provide product. I I love what this tells us about humans. 0:14:34.640 --> 0:14:36.560 What have you learned about humans as you try to 0:14:36.600 --> 0:14:39.440 recreate and teach computers about them? You know, there's a 0:14:39.480 --> 0:14:42.560 concept in search called the long tail. It means that 0:14:42.600 --> 0:14:45.880 we all assume that sevent of things were common, but 0:14:46.000 --> 0:14:48.720 once you try to conquer that last, all of our 0:14:48.760 --> 0:14:52.240 interests do become quite unique and personalized. So I've learned 0:14:52.280 --> 0:14:55.040 is that we think very broadly about customers. But this 0:14:55.120 --> 0:14:58.720 personal personalization move will require AI to really get to 0:14:58.760 --> 0:15:00.960 what your needs are and my needs are and sell 0:15:01.040 --> 0:15:03.760 to me what I can consume. Who do you compete against? 0:15:04.400 --> 0:15:07.000 I mean, there's other companies out in the market. I 0:15:07.080 --> 0:15:10.320 won't give them any airtime, right because that's not something 0:15:10.360 --> 0:15:12.480 that I would do. But there are companies trying to 0:15:12.560 --> 0:15:15.320 solve the same problem. But we are very dominant in 0:15:15.360 --> 0:15:18.440 our industry because of our investor group and the people 0:15:18.480 --> 0:15:21.560 that we've worked with. Got it, Donnie White, thanks so 0:15:21.640 --> 0:15:23.800 much for joining us Donnie as a CEO and founder 0:15:23.840 --> 0:15:26.960 of Satisfy Labs based here in New York City. See 0:15:27.000 --> 0:15:30.080 another example of some cool tech in New York City. 0:15:30.080 --> 0:15:32.120 It's not all Silicon Valley. I look at that way 0:15:32.160 --> 0:15:37.440 to plug, plug plug the house they're trying to sell exactly, 0:15:38.440 --> 0:15:41.000 will say, I will say, I do find it really 0:15:41.040 --> 0:15:43.840 interesting that we learn more about ourselves as we try 0:15:43.880 --> 0:15:48.040 to teach computers about us sometimes than we would otherwise. 0:15:48.160 --> 0:15:50.800 And uh and I kind of like that. I kind 0:15:50.840 --> 0:15:52.720 of like the beer application, you know, because the worse 0:15:54.160 --> 0:15:56.080 stadium you go into a baseball game, as you get 0:15:56.120 --> 0:15:57.760 there and there's a line of thirty people and you 0:15:57.840 --> 0:15:59.440 miss an inning and a half and it's just not 0:15:59.560 --> 0:16:02.160 worth It's I mean, bacon on a stick, bacon all 0:16:02.200 --> 0:16:04.880 of one to know all this time, Bacon on a stick. 0:16:07.840 --> 0:16:11.240 This is Bloomberg Markets with Lisa Brahmo Eds and Paul 0:16:11.320 --> 0:16:15.360 Sweeney on Bloomberg Radio. Bloomberg Markets is brought to you 0:16:15.400 --> 0:16:19.560 by Commonwealth Financial Network, home to the industry's most satisfied advisers. 0:16:19.920 --> 0:16:22.720 Learn more about the firm that's been putting independent advisors 0:16:22.720 --> 0:16:27.520 and their clients first since nineteen nine visit Commonwealth dot com. Well, 0:16:27.560 --> 0:16:30.760 we have the SMP five so far this year. The 0:16:30.800 --> 0:16:34.720 FED certainly remains dubbish. The economy is slowing, but as 0:16:34.720 --> 0:16:37.440 we saw today, is still posting solid growth. So the 0:16:37.520 --> 0:16:39.800 question is what's next. To help us answer that, we 0:16:39.800 --> 0:16:43.080 welcome Scott Wren. Scott is a senior global equity strategist 0:16:43.080 --> 0:16:46.840 for Wells Fargo Investment Management based in St. Louis. Scott, 0:16:46.880 --> 0:16:48.480 thanks so much for joining us. Just want to start 0:16:48.480 --> 0:16:50.800 our start off first by getting your sense of kind 0:16:50.800 --> 0:16:52.360 of what you took away from the g d P 0:16:52.520 --> 0:16:55.240 numbers this morning. Well and Paul, First, I want to 0:16:55.240 --> 0:16:57.160 say before we get sorry, I want to pass along 0:16:57.200 --> 0:17:00.280 my condolences to Tom Keene and his family on the 0:17:00.320 --> 0:17:03.760 loss of his father. So always tough to lose a parent, 0:17:03.920 --> 0:17:06.679 so I's wanted to say that. Um, but on the 0:17:06.760 --> 0:17:09.440 GDP number this morning, you know a little bit better 0:17:09.480 --> 0:17:12.680 than expected modest growth, and I think really for us 0:17:12.760 --> 0:17:15.840 that's going to be the story for this year. I mean, 0:17:16.080 --> 0:17:18.000 you know, we have an official number out there of 0:17:18.080 --> 0:17:20.399 two point three percent. I think that's about right for 0:17:20.480 --> 0:17:24.359 GDP for the year. So, uh, two point one, you know, 0:17:24.600 --> 0:17:27.600 two point three anywhere in there. Uh not the end 0:17:27.600 --> 0:17:29.440 of the world by any stretch. And I think that's 0:17:29.480 --> 0:17:34.040 growth that that the stock market would would certainly find acceptable. 0:17:34.480 --> 0:17:37.800 How long can the consumer continue to be strong if 0:17:37.920 --> 0:17:40.800 business spending doesn't pick up speed here? Yeah, at least 0:17:40.840 --> 0:17:43.199 I tell you that the consumption number inside of that 0:17:43.280 --> 0:17:46.520 GDP number was pretty strong. But I think that uh, 0:17:46.560 --> 0:17:49.960 you know, typically when you're when you're later in the cycle, 0:17:50.080 --> 0:17:52.960 and and and you know, we're certainly in the last 0:17:53.000 --> 0:17:55.000 third of this cycle, at least we believe we are. 0:17:55.280 --> 0:17:57.920 You know, the baton would be hung would be handed 0:17:57.920 --> 0:18:01.280 from the consumer to businesses who would and do capex spending, 0:18:01.320 --> 0:18:04.200 and that obviously hasn't happened. But you know, we we 0:18:04.640 --> 0:18:07.040 think that we are going to get some kind of 0:18:07.119 --> 0:18:10.639 trade deal. We need some better business confidence that would 0:18:10.640 --> 0:18:14.600 help UM in terms of capex is really capex spending 0:18:14.640 --> 0:18:17.879 here in the States. UM is seeing some headwinds, but 0:18:17.920 --> 0:18:20.679 also globally with a lot of these trade uncertainties. So 0:18:20.960 --> 0:18:23.479 you know, for us, I think we can chug along 0:18:23.560 --> 0:18:26.720 for at these modest rates of growth without a lot 0:18:26.760 --> 0:18:30.120 of capex spending. But it would certainly improve and broaden 0:18:30.160 --> 0:18:33.080 the economy if we could see uh, someone other than 0:18:33.119 --> 0:18:36.440 the consumer carrying the ball down the field. So, Scott, 0:18:36.440 --> 0:18:40.360 how do you think these GDP numbers will influence the 0:18:40.359 --> 0:18:43.960 Fed as it meets next week? Well, you know, first 0:18:44.040 --> 0:18:46.120 let me say that really in our opinion, we don't 0:18:46.160 --> 0:18:48.439 think the Fed needs to do anything. I mean, you know, 0:18:48.480 --> 0:18:52.800 we we we're a good level of unemployment obviously, of 0:18:52.880 --> 0:18:56.880 inflation is modest although a little bit below the target. 0:18:57.359 --> 0:19:00.119 But you know we're looking for a quarter point and 0:19:00.280 --> 0:19:03.640 you know this this next week, you know, between some 0:19:03.680 --> 0:19:08.160 potential positive or negative comments coming out of these trade 0:19:08.160 --> 0:19:12.680 negotiations with with Minutian and Lightheiser in Shanghai and then 0:19:12.720 --> 0:19:16.600 the Wednesday announcement from the Fed, where you know, you 0:19:16.600 --> 0:19:19.600 could make a rational argument that they should do nothing, 0:19:19.920 --> 0:19:22.600 uh the quarter point we're expecting, or you can make 0:19:23.119 --> 0:19:25.639 an argument for the shot and awe of a fifty 0:19:25.640 --> 0:19:29.439 basis point cut. So, um, the Fed's probably going to 0:19:29.600 --> 0:19:32.480 kind of you know, keep you know, keep it right 0:19:32.480 --> 0:19:35.600 down the middle to a basis point cut, talk a 0:19:35.680 --> 0:19:39.480 little bit about inflation and a little bit about um 0:19:39.560 --> 0:19:43.600 some risk to global growth. But you know, from our perspective, 0:19:44.240 --> 0:19:46.320 you know, are are you really going to get much 0:19:46.320 --> 0:19:50.639 bang for your buck? You do now? Maybe do in September. 0:19:51.000 --> 0:19:52.800 You know, it seems like you're not going to get 0:19:52.880 --> 0:19:54.639 much bang for your buck. And if that's what the 0:19:54.680 --> 0:19:59.120 FED is trying to do with a rate cut, Umm, 0:19:59.160 --> 0:20:02.480 not quite sure points is going to do it well. 0:20:02.600 --> 0:20:04.560 Regardless of whether or not it will work, it does 0:20:04.600 --> 0:20:07.080