WEBVTT - Daybreak Weekend: US CPI, Cannes Festival, Bessent Visits Japan 0:00:00.240 --> 0:00:07.680 Bloomberg Audio Studios, Podcasts, radio news. 0:00:10.520 --> 0:00:13.680 This is Bloomberg Daybreak Weekend, our global look at the 0:00:13.680 --> 0:00:16.400 top stories in the coming week from our Daybreak anchors 0:00:16.440 --> 0:00:19.040 all around the world. Straight Ahead on the program, we 0:00:19.079 --> 0:00:22.040 look to some key inflation data in the US. I'm 0:00:22.120 --> 0:00:23.640 Nathan Hager in Washington. 0:00:23.880 --> 0:00:26.920 I'm Caroline Hebgin London, where we discuss whether the Can 0:00:27.040 --> 0:00:31.120 Film Festival can galvanize the business of cinema. 0:00:31.160 --> 0:00:34.479 I'm Doug Prisner, looking ahead to US Treasury Secretary Scott 0:00:34.560 --> 0:00:36.200 Besson's visit to Japan. 0:00:38.159 --> 0:00:42.200 That's all straight ahead on Bloomberg Daybreak Weekend on Bloomberg 0:00:42.240 --> 0:00:45.920 eleven three yeh New York, Bloomberg ninety nine to one, Washington, DC, 0:00:46.440 --> 0:00:51.559 Bloomberg ninety two nine, Boston, DAB Digital Radio, London, Syrias, 0:00:51.720 --> 0:00:55.240 XM one twenty one, and around the world on Bloomberg Radio, 0:00:55.280 --> 0:00:57.520 dot Com and the Bloomberg Business App. 0:01:02.880 --> 0:01:05.800 Good day to you. I'm Nathan Hager. We begin today's 0:01:05.800 --> 0:01:08.880 program with some key economic data in the US. The 0:01:08.920 --> 0:01:12.679 April reading on consumer prices comes out on Tuesday. Then 0:01:12.680 --> 0:01:15.120 we'll get a look at inflation pressures on business in 0:01:15.240 --> 0:01:18.640 the Producer Price Index Wednesday and then we'll see how 0:01:18.680 --> 0:01:21.520 the consumer is holding up when April retail sales come 0:01:21.520 --> 0:01:26.199 out Thursday, a busy week for Edward Harrison, senior editor 0:01:26.200 --> 0:01:29.600 for Bloomberg News and author of the Everything Risk newsletter. 0:01:29.720 --> 0:01:33.280 Really pleased that Ed's got some time to join us here. 0:01:33.480 --> 0:01:33.760 Now. 0:01:34.240 --> 0:01:36.959 I'm sure I'm not the only one who sees inflation 0:01:37.080 --> 0:01:41.200 pressure just driving by the gas station every day. Ed, 0:01:41.360 --> 0:01:43.520 Is this the month we're going to see Iran war 0:01:43.640 --> 0:01:45.759 impacts show up in the data? 0:01:46.319 --> 0:01:49.880 Hey, Nathan, Yes, I think this is the month. The 0:01:49.920 --> 0:01:52.000 real question is is whether or not it shows up 0:01:52.120 --> 0:01:55.080 less or more than is expected. Because you know, if 0:01:55.080 --> 0:01:58.640 you look at the numbers on the Bloomberg terminal, we 0:01:58.720 --> 0:02:02.480 had three point three last month. Expected for this month 0:02:02.560 --> 0:02:06.200 year over year for cpis three point seven percent, and 0:02:06.240 --> 0:02:09.680 they also expect a two point six percent core number 0:02:09.720 --> 0:02:12.000 to go up to two point seven percent. So it's 0:02:12.000 --> 0:02:15.600 definitely baked into the cake, not only that gas prices 0:02:15.639 --> 0:02:18.040 will cause a big jump in the CPI year or 0:02:18.040 --> 0:02:22.120 a year, but that it will translate into something overall 0:02:22.560 --> 0:02:28.560 in terms of the core CPI. And so ultimately the 0:02:28.639 --> 0:02:30.520 question is do we get more or do we get 0:02:30.639 --> 0:02:31.760 less than what's expected? 0:02:32.000 --> 0:02:35.799 How much would you expect that something like energy prices 0:02:35.840 --> 0:02:39.280 would feed into the core. It is something that can 0:02:39.560 --> 0:02:42.040 have an overall impact, can it when you think about 0:02:42.320 --> 0:02:44.400 diesel prices and the effect on shipping as. 0:02:44.320 --> 0:02:48.640 Well, right, definitely. And you know, we see all sorts 0:02:48.680 --> 0:02:52.520 of different effects of helium prices having an effect on 0:02:53.080 --> 0:02:57.920 electronics because of the use of helium in large disk 0:02:58.040 --> 0:03:03.399 drives that drive the AI build out. You know that 0:03:03.440 --> 0:03:07.200 they use these disk drives potentially for AI and all 0:03:07.280 --> 0:03:10.480 sorts of other things. What I would say is is 0:03:10.560 --> 0:03:13.959 that if you look at PCE, which is based off 0:03:13.960 --> 0:03:18.600 of personal consumption, the price increase there that index was 0:03:18.680 --> 0:03:22.320 three point two percent year over year. We got that 0:03:22.560 --> 0:03:25.400 a couple of weeks ago, and that's the number that 0:03:25.440 --> 0:03:29.160 the FED looks at. Three point two percent is really high. 0:03:29.480 --> 0:03:31.920 And so what it says is is that we're already 0:03:31.919 --> 0:03:36.560 at a high level. If the increase in energy prices 0:03:36.600 --> 0:03:39.040 adds to that, then it's going to be a very 0:03:39.080 --> 0:03:41.840 tough road for the for the Federal Reserve ahead and 0:03:41.920 --> 0:03:43.040 for interest rates overall. 0:03:43.200 --> 0:03:44.960 And how do you expect that to feed into what 0:03:45.040 --> 0:03:48.440 we could get from the producer price side as well? 0:03:48.480 --> 0:03:49.760 When those numbers come out. 0:03:51.160 --> 0:03:54.520 That's where where I think the market and I both 0:03:54.680 --> 0:03:58.840 expect to see the big jumps. So the numbers were 0:03:58.840 --> 0:04:02.960 pretty large already. You had three point eight percent in March. 0:04:03.360 --> 0:04:07.880 They're expecting four point three percent core. This is not 0:04:08.000 --> 0:04:10.880 including food and energy, so you can see those are 0:04:10.960 --> 0:04:13.600 huge numbers even if you don't include food and energy, 0:04:13.640 --> 0:04:16.920 and if you did include food and energy, then you've 0:04:16.960 --> 0:04:19.800 got a four point zero going up to four point 0:04:19.839 --> 0:04:25.520 eight percent to be expected. So almost five percent increase 0:04:25.720 --> 0:04:28.440 in producer prices in the month of April. 0:04:28.120 --> 0:04:32.040 So potentially even bigger price increases on the producer side 0:04:32.080 --> 0:04:35.360 than on the consumer. Do you expect to see some 0:04:35.440 --> 0:04:39.040 of that feeding in to what consumers see the idea 0:04:39.120 --> 0:04:42.320 that producers might be able to pass along some of 0:04:42.320 --> 0:04:44.640 their price pressures onto the consumer. 0:04:45.880 --> 0:04:49.800 Yeah, I think. You know it's with the tariffs. It 0:04:49.839 --> 0:04:54.680 was unknown whether or not they would be legal, and 0:04:54.760 --> 0:04:57.640 we've seen that they've been struck down by various courts 0:04:57.680 --> 0:05:02.400 now here. You you know that these even though it's temporary, 0:05:02.440 --> 0:05:06.280 you know that the price pressures are for real and 0:05:06.320 --> 0:05:08.880 you must pass them through. And so to the degree 0:05:08.920 --> 0:05:11.600 that companies can pass them through, they're definitely going to 0:05:11.680 --> 0:05:14.719 do that, and then the question becomes, you know, how 0:05:14.800 --> 0:05:16.560 much can the consumer handle? 0:05:17.520 --> 0:05:20.000 And I guess we'll get some answers on that potentially 0:05:20.600 --> 0:05:24.799 in the Thursday retail sales print for the month of April. 0:05:24.960 --> 0:05:28.760 Are you expecting to see any shifts in consumer behavior 0:05:28.800 --> 0:05:30.039 reflected in those numbers? 0:05:31.440 --> 0:05:36.280 Yes, I think that you know the expectation from the market. 0:05:36.320 --> 0:05:39.680 In particular, the ultimate number to look for is the 0:05:39.680 --> 0:05:43.200 control group. That's the number for retail sales that the 0:05:43.240 --> 0:05:45.760 market uses to say this is the best number to 0:05:45.760 --> 0:05:48.640 look at in terms of the go forward approach, and 0:05:48.680 --> 0:05:51.240 that number is expected to decline to zero point four 0:05:51.240 --> 0:05:56.000 percent from zero point seven percent. If you take out autos, 0:05:56.279 --> 0:05:58.760 you go from zero point six percent also to zero 0:05:58.760 --> 0:06:02.960 point four percent. Those are decent numbers, but when you 0:06:03.560 --> 0:06:06.920 take away inflation, it really adds up on a year 0:06:06.960 --> 0:06:11.720 of a year basis to you know, a mid lean economy. 0:06:12.839 --> 0:06:16.640 Anything lower starts to become very difficult, and then you 0:06:16.680 --> 0:06:18.719 start worrying about economic growth. 0:06:19.080 --> 0:06:22.279 Well, again, really appreciate your insights ahead of all this data. 0:06:22.400 --> 0:06:25.800 That is Edward Harrison, senior editor for Bloomberg News. Check 0:06:25.839 --> 0:06:28.560 out all his work on the Everything Risk newsletter. You 0:06:28.560 --> 0:06:32.400 can find it at Bloomberg dot com Slash newsletters. Let's 0:06:32.400 --> 0:06:34.440 take a look now add some stocks making news in 0:06:34.480 --> 0:06:37.240 the week ahead. I'm Nathan Hager, joined by Bloomberg Markets 0:06:37.279 --> 0:06:40.960 Live Managing Editor Christine Aquino with more earnings on TEP 0:06:41.040 --> 0:06:44.520 this week starting Monday with Hymns and Hers Health. Weren't 0:06:44.520 --> 0:06:48.080 they going to beef with Nova Nordisk recently, Christine? How 0:06:48.160 --> 0:06:50.279 are things in telehealth these days? 0:06:50.720 --> 0:06:52.840 That beef though, is a thing of the past, because 0:06:52.880 --> 0:06:56.160 they're cooperating with each other now, right, And so that 0:06:56.320 --> 0:06:58.680 is one of the reasons why the likes of JP 0:06:58.839 --> 0:07:02.960 Morgan initiated to stock with an overweight rating because of 0:07:03.000 --> 0:07:05.560 that deal. So now before they had a beef, now 0:07:05.560 --> 0:07:08.600 they have a partnership, and so Hyms and Hers will 0:07:08.640 --> 0:07:12.400 be selling we govy on its platform, and JP Morgan 0:07:12.480 --> 0:07:14.679 is saying that that deal could mark a turning point 0:07:15.000 --> 0:07:18.720 and remove a significant legal overhang. So that bothes well 0:07:18.800 --> 0:07:22.720 for its earnings potentially, and you know, we have options 0:07:22.760 --> 0:07:26.040 of course, starting to price that potential move there, we 0:07:26.040 --> 0:07:29.320 could see it potentially a thirteen percent move in the 0:07:29.440 --> 0:07:32.920 share after the company reports earnings. And so if that 0:07:33.320 --> 0:07:36.600 is all fine and dandy, they meet or beat estimates, 0:07:36.640 --> 0:07:39.240 then that could be a thirteen percent share move higher, 0:07:39.440 --> 0:07:41.880 but otherwise it could be a thirteen percent share move lower. 0:07:41.920 --> 0:07:42.760 So we'll see about that. 0:07:43.000 --> 0:07:43.240 Yeah. 0:07:43.280 --> 0:07:45.440 Well, I mean this stock has already been doing pretty 0:07:45.440 --> 0:07:48.280 well so far this year, hasn't it. I mean, where 0:07:48.440 --> 0:07:51.680 is the bar when it comes to what investors want 0:07:51.680 --> 0:07:53.240 to see from Hymns this time around? 0:07:53.560 --> 0:07:56.840 Yeah? I mean, of course, the demand for the GLP 0:07:57.120 --> 0:08:02.400 ones very much still sustaining the business model here. And 0:08:02.440 --> 0:08:04.840 I think the fact that you know, they are able 0:08:04.920 --> 0:08:08.240 to pivot because potentially, you know, they're now in cooperation 0:08:08.400 --> 0:08:12.160 with Novo and so they're kind of turning themselves from 0:08:12.480 --> 0:08:16.880 a competitor into a retailer in that space, and so, 0:08:17.320 --> 0:08:19.880 you know, I think investors will want to see is 0:08:19.920 --> 0:08:23.520 that business model working, how much kind of gains could 0:08:23.560 --> 0:08:26.440 they expect from that sort of partnership. Is it something 0:08:26.480 --> 0:08:31.200 that could potentially also open up opportunities with other GLP 0:08:31.320 --> 0:08:35.000 one manufacturers and sellers in the market, Right, And so yeah, 0:08:35.040 --> 0:08:37.680 for Hymns and Hers, it's going to be a question 0:08:37.760 --> 0:08:40.520 of how well are they able to pivot after this 0:08:40.600 --> 0:08:41.720 initial legal setback. 0:08:41.960 --> 0:08:43.960 I guess we could call Hymns and Her sort of 0:08:44.120 --> 0:08:46.520 tech adjacent, right, because this is going to be kind 0:08:46.559 --> 0:08:49.240 of a busy week for tech earnings overall. We're going 0:08:49.320 --> 0:08:53.400 to hear from Applied Materials on Thursday. This has been 0:08:53.440 --> 0:08:56.720 a pretty crazy quarter for chip makers. Where are we 0:08:56.800 --> 0:08:59.600 expecting chip equipment makers. 0:08:59.160 --> 0:09:00.600 To stack well? 0:09:00.800 --> 0:09:03.840 Based on the movement in the semicondaractor is index that 0:09:03.880 --> 0:09:07.240 we've seen, I mean, I think it's all going to 0:09:07.280 --> 0:09:11.000 be positive, So potentially high expectations for the earnings for 0:09:11.240 --> 0:09:15.160 Applied Materials here, and you know the options data that 0:09:15.160 --> 0:09:17.480 we're seeing at the moment implying about a six percent 0:09:17.559 --> 0:09:21.160 move After those results, we have seen a spate of 0:09:21.440 --> 0:09:25.160 analyst moves for the stock, ubs raising its price target 0:09:25.240 --> 0:09:28.359 to four hundred and eighty from four hundred and thirty previously, 0:09:28.520 --> 0:09:32.120 Seaport Global Securities giving Applied Materials a new by rating 0:09:32.160 --> 0:09:34.760 and a five hundred dollars price target. So it looks 0:09:34.800 --> 0:09:38.360 like a lot of expectations very positive, especially because of 0:09:38.440 --> 0:09:41.160 all the optimism that we've seen in the chip space 0:09:41.240 --> 0:09:44.800 and our own bloomering intelligence analysts weighing in as well, 0:09:44.920 --> 0:09:48.560 and they're looking for sales and fiscal second quarter finishing 0:09:48.640 --> 0:09:51.880 higher and also similar gains for operating profits. So it 0:09:51.920 --> 0:09:54.120 looks like there's going to be a lot of positivity 0:09:54.120 --> 0:09:56.040 baked in. We'll see if they can deliver on that. 0:09:56.360 --> 0:09:57.880 I mean you could say that there's a lot of 0:09:57.880 --> 0:10:02.040 positivity baked in already. I mean, this stock is serious 0:10:02.160 --> 0:10:05.280 double digits on the year so far. Is it priced 0:10:05.320 --> 0:10:05.840 to perfection? 0:10:06.559 --> 0:10:09.400 I mean, that is definitely the worry every time we 0:10:09.480 --> 0:10:12.600 see such big gains like these, Nathan, I mean, you 0:10:12.640 --> 0:10:15.640 always have the naysayers in the market right saying that 0:10:15.920 --> 0:10:20.000 this can possibly keep going at nauseum. But just you know, 0:10:20.040 --> 0:10:21.439 if you look at kind of the plans of the 0:10:21.480 --> 0:10:24.559 biggest hyper scalers when it comes to their cap x, right, 0:10:24.600 --> 0:10:28.600 the likes of your alphabets, your Amazon's, your Apples, it 0:10:28.679 --> 0:10:32.000 seems like there is never ending demand at the moment 0:10:32.200 --> 0:10:37.000 for any equipment, any infrastructure related to AI and the 0:10:37.080 --> 0:10:39.720 data center buildout, and so you know, in some ways 0:10:39.720 --> 0:10:42.440 it could be priced perfection, but it may be a 0:10:42.520 --> 0:10:45.240 while yet before we actually see that pullback in stock. 0:10:45.720 --> 0:10:48.160 Speaking of the AI build out, we are going to 0:10:48.240 --> 0:10:53.200 hear from another beneficiary of that phenomenon on Wednesday when 0:10:53.240 --> 0:10:56.960 Cisco Systems reports. What are we expecting from Cisco. 0:10:57.080 --> 0:11:00.520 Absolutely, Nathan, Well, you know, a similarly positive thing our 0:11:00.559 --> 0:11:05.360 blooming intelligence analysts saying that they're focusing primarily on Cisco's 0:11:05.400 --> 0:11:09.880 optical and high capacity networking products and that has benefited 0:11:09.880 --> 0:11:12.680 from the AI infrastructure ramp up. As you've mentioned, the 0:11:12.760 --> 0:11:16.160 expectation is for that to keep benefiting from that, and 0:11:16.960 --> 0:11:20.640 specifically for Cisco, that could result in an increase to 0:11:20.720 --> 0:11:24.160 about five billion dollars and its AI order outlooks so 0:11:24.240 --> 0:11:27.880 not too shabby for the stock, and that's really helped 0:11:27.880 --> 0:11:32.280 shield it as well from the software pessimism that we've 0:11:32.280 --> 0:11:36.240 seen in the start of the year, right because they're 0:11:36.320 --> 0:11:39.400 very much levered to that build out that we've seen 0:11:39.559 --> 0:11:43.080 in Given the demand for anything related to that, both 0:11:43.120 --> 0:11:47.120 hardware and software, seems like it could be a positive 0:11:47.559 --> 0:11:49.000 season for Cisco once again. 0:11:49.240 --> 0:11:52.560 I guess one other question is whether Cisco is shielded 0:11:52.640 --> 0:11:56.560 from the hit we've seen from memory costs from so 0:11:56.640 --> 0:11:58.520 many of these companies that have reported so far. 0:11:58.920 --> 0:12:01.719 Yeah, absolutely, definitely something that investors are going to be 0:12:01.800 --> 0:12:05.320 watching out for. You know, how much of their margins 0:12:05.360 --> 0:12:07.720 are they going to be able to protect as costs 0:12:08.440 --> 0:12:12.040 rise in whether that a shortage is set to continue. 0:12:12.760 --> 0:12:17.000 Is there supply chain something that is relatively insulated from 0:12:17.640 --> 0:12:20.199 that dynamic, or is it something that they're going to 0:12:20.280 --> 0:12:21.920 have to contend with as well. So I'm sure that 0:12:22.000 --> 0:12:25.079 investors going to be looking out for any comments from 0:12:25.200 --> 0:12:29.120 the company from their CEO during the analysts call. For sure, the. 0:12:29.040 --> 0:12:32.960 Tech earning story continues. Thanks Christine, great having you on 0:12:33.000 --> 0:12:37.040 with us. That's Bloomberg Markets Live, Managing Editor Christine Aquino, 0:12:37.320 --> 0:12:40.080 and coming up on Bloomberg Daybreak weekend, we'll look to 0:12:40.160 --> 0:12:43.679 the con Film Festival whether it can galvanize the new 0:12:43.840 --> 0:12:58.800 cinema business. I'm Nathan Hager. This is Bloomberg. This is 0:12:58.800 --> 0:13:01.640 Bloomberg Daybreak. We ad our global look ahead at the 0:13:01.640 --> 0:13:04.319 top stories for investors in the coming week. I'm Nathan 0:13:04.320 --> 0:13:07.079 Hager in Washington. Up later in our program, we'll look 0:13:07.120 --> 0:13:11.560 ahead to Treasury Secretary Scott Besson's visit to Japan. But first, 0:13:11.600 --> 0:13:14.000 in the coming days, the great and good of the 0:13:14.120 --> 0:13:16.840 entertainment world will descend on the south of France for 0:13:16.920 --> 0:13:20.559 the annual Cahn Film Festival. It's a well established hallmark 0:13:20.559 --> 0:13:23.959 of the industry calendar, but in an AI driven landscape, 0:13:24.120 --> 0:13:27.480 is the business of film still lucrative for more, Let's 0:13:27.480 --> 0:13:30.199 go to London and bring in Bloomberg Daybreak europe anker 0:13:30.240 --> 0:13:32.040 Caroline hepger Nathan. 0:13:32.080 --> 0:13:35.240 The Can Film Festival is known for glitz and glamour 0:13:35.280 --> 0:13:38.320 amid the palm trees of the south of France. The 0:13:38.400 --> 0:13:42.559 nearly two week long event features beach parties, black tie affairs, 0:13:42.600 --> 0:13:46.400 and plenty of celebrities, but outside of those trappings, the 0:13:46.559 --> 0:13:50.760 movies shown behind closed doors are typically quite intense. The 0:13:50.880 --> 0:13:55.920 Can lineup favors challenging works from important oteurs, and for 0:13:55.960 --> 0:13:59.160 the critics and journalists working at the festival, that means 0:13:59.280 --> 0:14:04.120 wrestling with those efforts, often on sometimes very little sleep. 0:14:04.480 --> 0:14:07.240 Throughout the festival, the focus is on who might win 0:14:07.400 --> 0:14:11.200 the palmdor the top prize given by the jury, an 0:14:11.280 --> 0:14:15.360 impossible award to predict, but one that often contains clues 0:14:15.679 --> 0:14:19.920 about the upcoming Oscars race at this point relatively far 0:14:20.040 --> 0:14:23.160 away on the calendar, but it is true that the 0:14:23.200 --> 0:14:27.560 whole event gets you excited about what's on the horizon. However, 0:14:27.680 --> 0:14:31.800 outside the sparkling world of the stars and the premieres, 0:14:32.320 --> 0:14:37.440 audience interest in traditional cinema going has generally declined compared 0:14:37.480 --> 0:14:41.400 to pre pandemic levels, with many blaming the cost and 0:14:41.480 --> 0:14:45.360 the dominance of home streaming preserving the industry as a 0:14:45.440 --> 0:14:50.360 key concern for insiders View CEO Timothy Richards has been 0:14:50.400 --> 0:14:55.280 discussing that issue on Bloomberg Television recently, saying that demand 0:14:55.560 --> 0:14:56.440 is returning. 0:14:56.960 --> 0:15:01.040 The good news is business is back. The demand. Our 0:15:01.040 --> 0:15:04.160 customer has never left us, but business is back right now. 0:15:04.320 --> 0:15:06.440 And if you look at what happened with Michael opening 0:15:06.440 --> 0:15:10.160 weekend two hundred and seventeen million dollars, Devilware's product is 0:15:10.200 --> 0:15:13.760 going to be very, very similar in terms of how 0:15:14.040 --> 0:15:17.760 for consolidation. It is fragmented, and it has been fragmented 0:15:17.760 --> 0:15:20.600 for quite a while. And I think everyone's been waiting 0:15:20.600 --> 0:15:23.840 for business to return before they actually took that first step. 0:15:24.240 --> 0:15:28.000 The contrarian investors are too late. We're back, But. 0:15:28.040 --> 0:15:30.600 Tim, I mean, you need content first and foremost. So 0:15:30.600 --> 0:15:33.520 we'll talk about ticket pricing and AI and how you 0:15:33.560 --> 0:15:35.760 manage cues and staff, but you need content. Do you 0:15:35.800 --> 0:15:38.040 worry there's going to be less content out there, less 0:15:38.080 --> 0:15:39.720 films being made because of the merger. 0:15:39.960 --> 0:15:42.920 Yeah. Look, I think my biggest concern is demand, and 0:15:43.000 --> 0:15:45.360 I think we've proven certainly in the last few years 0:15:45.440 --> 0:15:48.240 that there is a massive demand for all movies of 0:15:48.280 --> 0:15:52.680 all genres, for all demographics. We've broken records for all 0:15:52.760 --> 0:15:56.280 kinds of movies. And if you look at Hamnet, Hannah 0:15:56.320 --> 0:15:58.280 is going to do twenty million pounds in the UK. 0:15:59.040 --> 0:16:00.960 So I worry about a man. Where there's a demand, 0:16:00.960 --> 0:16:03.400 there's normally a supply will follow. If you look at 0:16:03.440 --> 0:16:06.000 what's happened. And I'm fresh back from Las Vegas and 0:16:06.080 --> 0:16:09.200 Cinema Coon and from meeting the studios in Los Angeles 0:16:09.240 --> 0:16:13.760 after that, and the commitment to future filmmaking right now 0:16:14.520 --> 0:16:18.440 with the Legacy studios is unprecedented. Then when you actually 0:16:18.560 --> 0:16:22.520 look at the three biggest names in tech, Tim Cook, 0:16:22.600 --> 0:16:26.360 Jeff Bezos, and David and Lariy Ellison, they've all now 0:16:26.400 --> 0:16:31.920 embraced theatrical releases and film production. They're coming into our industry. 0:16:32.600 --> 0:16:36.320 That was the view founder and CEO Timothy Richard speaking 0:16:36.320 --> 0:16:39.360 there to Boomberg's frost sine laqua. So how are we 0:16:39.480 --> 0:16:43.120 looking ahead to the upcoming can Film Festival? How can 0:16:43.160 --> 0:16:47.040 the sector's leaders ensure the magic of La Croisette is 0:16:47.080 --> 0:16:51.720 translated into the box office. Joining me now for more 0:16:51.920 --> 0:16:56.320 is Bloomberg's Bunoir Bertolo, who is covering the festival this year, Well, 0:16:56.400 --> 0:16:59.720 lucky you, Bunoir to be going to this big efferent 0:17:00.120 --> 0:17:04.480 lots going on what normally happens at the can Film Festival. 0:17:05.720 --> 0:17:10.000 So I guess the public facing side of the festival 0:17:10.119 --> 0:17:14.399 is really the competition, So about twenty films that are 0:17:14.440 --> 0:17:18.080 competing against each other to win the palmedor that's what 0:17:18.400 --> 0:17:21.639 at the end of the festival. So it's really what 0:17:21.760 --> 0:17:26.400 gets the attention because these are films that are carefully 0:17:26.400 --> 0:17:28.560 selected that are going to be basically some of the 0:17:28.600 --> 0:17:32.280 bigger films in the year to come when it comes 0:17:32.320 --> 0:17:37.159 to release cinema, let's say, as an aard form. But 0:17:37.240 --> 0:17:39.680 these are the most popular of the films that are 0:17:40.000 --> 0:17:43.080 going to come out in the year to come. Yeah, 0:17:43.160 --> 0:17:46.359 if we can sites blogbusters that are not typically shown 0:17:46.400 --> 0:17:50.720 in gan So this is really the celebration of cinema 0:17:51.320 --> 0:17:55.480 independent cinema as an aard form, and that's really the 0:17:55.560 --> 0:17:58.760 main focus, let's say. But there is also a less 0:17:58.800 --> 0:18:02.480 known side of the festival that's really the business side 0:18:03.000 --> 0:18:08.160 really and it's to film market and it's happening underneath 0:18:08.480 --> 0:18:12.959 the Pallete Festival in sort of an underground, very unglamorous 0:18:13.280 --> 0:18:18.880 area where films are shown to movie professional distributors from 0:18:18.960 --> 0:18:21.200 all over the world that are going to see films 0:18:21.920 --> 0:18:24.000 yet to be released and decided they want to buy 0:18:24.040 --> 0:18:27.639 it and show them in their countries. So it's really 0:18:27.680 --> 0:18:32.080 the heart of the festival business wise, and it's also 0:18:32.119 --> 0:18:35.200 a major thread of the festival because it's bringing tens 0:18:35.200 --> 0:18:38.720 of thousands of film professionals to can every year. 0:18:39.240 --> 0:18:39.520 Yeah. 0:18:39.640 --> 0:18:44.480 Absolutely so in terms of the more glamorous side of things, 0:18:44.640 --> 0:18:47.720 what are the big releases that perhaps we'll hear more 0:18:47.760 --> 0:18:48.840 about for this year. 0:18:50.400 --> 0:18:55.600 So it's an interesting year for the festival because for 0:18:55.760 --> 0:19:01.639 while there was no US films selected in competing. Meanwhile, 0:19:01.840 --> 0:19:05.840 one film has been added by James Gray, so that's 0:19:05.880 --> 0:19:09.480 going to be a film that's going to be very expected, 0:19:09.600 --> 0:19:16.000 I think, with Scarlett Johnson and Adam Driver featuring in 0:19:16.080 --> 0:19:18.000 the film. We don't know a lot about it yet, 0:19:19.000 --> 0:19:21.040 but that's going to be a point of attention. And 0:19:21.080 --> 0:19:24.280 then there is this mix of filmmakers from all over 0:19:24.320 --> 0:19:29.600 the world. Three films from Spain that I'm especially looking 0:19:29.640 --> 0:19:35.879 forward to went by Rodegoyen, another one about the civil 0:19:35.920 --> 0:19:38.960 war in Spain. It's a lot of films inspired by 0:19:39.000 --> 0:19:41.760 the wars. Actually, the Second World War theme is going 0:19:41.840 --> 0:19:48.520 to be very strong films from friends as well Asian 0:19:48.560 --> 0:19:51.120 films like it. It's really a mix. And there are 0:19:51.520 --> 0:19:56.240 some favorites of CAN that are coming every time the 0:19:56.400 --> 0:19:59.280 selector film basically, and that's one of the criticism of 0:19:59.280 --> 0:20:03.760 the fistival is you know they've got their favorites and 0:20:04.080 --> 0:20:08.000 they would come whatever film the release. But truth is, 0:20:08.040 --> 0:20:11.920 you know that they are carefully selected. And what's really 0:20:11.920 --> 0:20:14.560 interesting is we don't know yet because these has not 0:20:14.680 --> 0:20:18.000 been seen by anyone. We don't know yet which film 0:20:18.080 --> 0:20:19.879 is going to create the buzz and which film is 0:20:19.880 --> 0:20:21.639 going to come out with the big O L. 0:20:22.280 --> 0:20:25.360 Yeah, that's the excitement, isn't it. And the paland'ah, as 0:20:25.359 --> 0:20:28.359 you say, is the crown jewel of the proceedings and 0:20:28.400 --> 0:20:30.520 who might clinch that? I mean, I noticed that it's 0:20:30.560 --> 0:20:34.160 the old boy director Park Chan Wook, who is leading 0:20:34.240 --> 0:20:37.400 the jury that makes the selection for who is awarded 0:20:37.440 --> 0:20:41.800 the pandor what's it like then to win that accolade? 0:20:41.920 --> 0:20:42.080 You know? 0:20:42.119 --> 0:20:45.320 How important is it? I mean you say the criticism 0:20:45.400 --> 0:20:48.440 is that there are sometimes favorites that CAN, but how 0:20:48.480 --> 0:20:50.000 important is it to win the Panda. 0:20:51.119 --> 0:20:54.399 It's absolutely major for a film because it's going to 0:20:54.560 --> 0:21:00.560 launch that film into this season that's coming. Basically, Ken 0:21:00.640 --> 0:21:02.640 is always seen at the first event of the year 0:21:02.680 --> 0:21:05.320 in terms of awards and in terms of films that 0:21:05.359 --> 0:21:07.479 are going to be seen for the full years. So 0:21:08.240 --> 0:21:11.520 very often the films that are selected for the palmudor 0:21:11.680 --> 0:21:14.840 but also the major top prices, right the best scenario, 0:21:15.119 --> 0:21:18.840 best director or best actor. These films they are going 0:21:18.920 --> 0:21:22.440 to be every year we see that they're going to 0:21:22.560 --> 0:21:26.280 be launched into the award season and they can make 0:21:26.320 --> 0:21:28.679 it to the Oscars in the end. And that's what 0:21:28.760 --> 0:21:32.720 happened with The Substance, for example, that was a very 0:21:32.760 --> 0:21:36.600 small film that made it to the Oscars and got 0:21:36.680 --> 0:21:40.200 five nominations. I think with Demi Moore, comeback of Demi Moore, 0:21:40.800 --> 0:21:43.159 I think that was extremely interesting and she's going to 0:21:43.160 --> 0:21:44.760 be part of the jury this year. 0:21:44.880 --> 0:21:48.760 Interestingly, I think that's really interesting. Also that I mean 0:21:48.880 --> 0:21:53.199 Can is also the big you know, film festival in Europe, 0:21:53.240 --> 0:21:56.520 even kind of bigger than Berlin and Venice. So interesting 0:21:56.560 --> 0:21:58.600 that you say it's such a launch pad then maybe 0:21:58.680 --> 0:22:02.119 into a bigger market into the US. But I have 0:22:02.200 --> 0:22:04.480 to say that in the backdrop of this, you know, 0:22:04.560 --> 0:22:10.359 talking about these individual movies, these small budget movies, maybe 0:22:10.400 --> 0:22:14.200 that get bigger. The backdrop in the industry is surely 0:22:14.520 --> 0:22:18.880 artificial intelligence and maybe movies that are emerging in that space. 0:22:18.920 --> 0:22:20.680 Do you think CAN is going to be a buzz 0:22:21.040 --> 0:22:22.960 with chatter about AI films? 0:22:24.280 --> 0:22:27.680 It is every year and increasingly a topic in CAN, 0:22:27.800 --> 0:22:35.240 of course, as it is across the industry. Really interestingly, interestingly, 0:22:35.320 --> 0:22:40.439 there is one film that's that's using open eyes technology 0:22:40.680 --> 0:22:44.080 that's going to be shown to bios in CAN this year. 0:22:44.200 --> 0:22:47.240 It's called The Critters and it's an animation film that 0:22:47.320 --> 0:22:49.520 we're not going to see yet, it's not finished yet, 0:22:49.640 --> 0:22:53.280 but it's going to be shown to potential bios. So 0:22:53.320 --> 0:22:56.560 that's one example of one film, a feature film that's 0:22:56.560 --> 0:22:59.480 going to use AI a lot that we're going to 0:22:59.480 --> 0:23:03.240 see in the coming months probably, And and of course 0:23:03.520 --> 0:23:07.280 it's it's always a chatter in CAN. You would see 0:23:07.280 --> 0:23:12.480 panels this year about what AI means for cinema as 0:23:12.520 --> 0:23:16.440 a creative tool, what it means for the ip of 0:23:16.800 --> 0:23:22.520 the actors and directors that are sort of prompted and 0:23:22.960 --> 0:23:26.240 that are sort of used in AI prompts. So what 0:23:26.320 --> 0:23:30.080 does it mean in terms of rights for them, So 0:23:30.119 --> 0:23:32.960