1 00:00:02,720 --> 00:00:10,600 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,600 --> 00:00:14,560 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:14,640 --> 00:00:18,560 Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business App. 4 00:00:18,640 --> 00:00:21,880 Speaker 1: Listen on demand wherever you get your podcasts, or watch 5 00:00:21,960 --> 00:00:23,120 Speaker 1: us live on YouTube. 6 00:00:23,680 --> 00:00:26,000 Speaker 2: Holes their shares surge as much as one hundred and 7 00:00:26,040 --> 00:00:29,120 Speaker 2: five percent in early trading. Now there's shares, well, they're 8 00:00:29,160 --> 00:00:32,239 Speaker 2: about thirty six percent. It's just a record move. A 9 00:00:32,320 --> 00:00:36,000 Speaker 2: lot of mentions by retail traders on social media. Let's 10 00:00:36,000 --> 00:00:38,360 Speaker 2: bring in someone who knows a little bit more about this. 11 00:00:38,520 --> 00:00:41,320 Speaker 2: Let's bring in Mary Ross Gilbert. She's Bloomberg Intelligence senior 12 00:00:41,400 --> 00:00:45,159 Speaker 2: equity analyst covering all things retail. So Mary, can you 13 00:00:45,159 --> 00:00:46,680 Speaker 2: tell us is this a meme stock? 14 00:00:47,960 --> 00:00:50,960 Speaker 3: Well, it's acting like a memestock, that's for sure, Lisa. 15 00:00:51,600 --> 00:00:54,320 Speaker 3: And as you pointed out, it was on social media, 16 00:00:54,360 --> 00:00:57,440 Speaker 3: it looked like midday yesterday there was a post saying 17 00:00:57,840 --> 00:01:02,200 Speaker 3: showing a Bloomberg chart and showing the short interest and 18 00:01:02,240 --> 00:01:04,560 Speaker 3: if you look at the number of shares or the 19 00:01:04,600 --> 00:01:08,319 Speaker 3: shares borrowed versus the total float, it was about forty 20 00:01:08,400 --> 00:01:11,399 Speaker 3: nine percent, which is pretty high. And it's near a 21 00:01:11,600 --> 00:01:14,080 Speaker 3: historic high at least over the last couple of years, 22 00:01:14,440 --> 00:01:17,319 Speaker 3: and so the post sort of circled that and then 23 00:01:17,360 --> 00:01:21,959 Speaker 3: it identified and noted, hey, how can you be short 24 00:01:21,959 --> 00:01:25,720 Speaker 3: this stock and sleep well at night? And then apparently 25 00:01:25,760 --> 00:01:29,039 Speaker 3: that kind of triggered other posts throughout I guess into 26 00:01:29,080 --> 00:01:32,600 Speaker 3: the evening yesterday, and so of course in pre market, 27 00:01:32,760 --> 00:01:35,360 Speaker 3: you know, we saw the share surge, as you pointed out, 28 00:01:35,400 --> 00:01:38,920 Speaker 3: over two hundred over one hundred percent, and you know 29 00:01:39,040 --> 00:01:41,760 Speaker 3: yesterday the stock was up about eight percent. We saw 30 00:01:41,880 --> 00:01:44,520 Speaker 3: retail stocks on the move yesterday as well, and so 31 00:01:44,560 --> 00:01:47,400 Speaker 3: it could be you know, as one of your earlier 32 00:01:47,520 --> 00:01:52,520 Speaker 3: commendators commendators discussed, you know, with such a strong market overall, 33 00:01:52,560 --> 00:01:55,680 Speaker 3: this is a sector that has been beaten down largely 34 00:01:55,720 --> 00:01:58,560 Speaker 3: with tariffs and then of course with execution issues. When 35 00:01:58,560 --> 00:01:59,640 Speaker 3: we're talking about. 36 00:01:59,400 --> 00:02:03,040 Speaker 4: Coals, Mary, has a company said anything either at last 37 00:02:03,040 --> 00:02:05,279 Speaker 4: evening or today in response to the stock movement? 38 00:02:05,480 --> 00:02:09,320 Speaker 3: Absolutely not, there is There are no releases from the company. 39 00:02:09,840 --> 00:02:12,240 Speaker 4: So I mean, is this something? I mean, what are 40 00:02:12,240 --> 00:02:14,680 Speaker 4: you hearing from you know, the clients that you talked to, 41 00:02:14,720 --> 00:02:17,280 Speaker 4: institutional investors that you talked to, how are they are 42 00:02:17,280 --> 00:02:19,120 Speaker 4: they selling into this? What are they doing. 43 00:02:20,840 --> 00:02:26,639 Speaker 3: Yeah, I'm not hearing anyone discussing exactly what their activity is, 44 00:02:26,680 --> 00:02:30,200 Speaker 3: but you can imagine that there's probably a fair amount 45 00:02:30,240 --> 00:02:32,680 Speaker 3: of hedge funds involved. And so when you think about it, 46 00:02:32,960 --> 00:02:36,359 Speaker 3: the company is highly levered. They have bonds, and hedge 47 00:02:36,360 --> 00:02:41,280 Speaker 3: funds typically will take a position, let's say, in certain bonds, 48 00:02:41,360 --> 00:02:43,359 Speaker 3: and then they'll go short the stock. So I think 49 00:02:43,400 --> 00:02:46,600 Speaker 3: we do have some some of that activity and that's 50 00:02:46,600 --> 00:02:49,160 Speaker 3: how they're positioned. And of course, you know there could 51 00:02:49,200 --> 00:02:52,239 Speaker 3: have been a short squeeze that was triggered with this activity. 52 00:02:52,760 --> 00:02:55,799 Speaker 3: This is usually what we'll see in a situation like this, 53 00:02:56,400 --> 00:02:59,160 Speaker 3: So I think that's kind of what we're seeing in 54 00:02:59,200 --> 00:03:01,160 Speaker 3: the activity and the shares. 55 00:03:01,080 --> 00:03:04,000 Speaker 2: And Mary before all of this news came out, How 56 00:03:04,120 --> 00:03:05,640 Speaker 2: was the stock doing before? 57 00:03:05,800 --> 00:03:07,600 Speaker 4: How is Cole's performing before all this? 58 00:03:08,440 --> 00:03:10,880 Speaker 3: Oh it's been atrocious. I mean, this spot is so 59 00:03:11,000 --> 00:03:14,440 Speaker 3: you can look at three years, two years, five years, 60 00:03:14,480 --> 00:03:17,640 Speaker 3: year to date, and the stock has been off significantly 61 00:03:18,040 --> 00:03:20,680 Speaker 3: and that's due to falling revenues. I mean, if you 62 00:03:20,680 --> 00:03:23,080 Speaker 3: look at the revenues over the last few years, it's 63 00:03:23,120 --> 00:03:26,280 Speaker 3: down over two billion dollars. And really, when you look 64 00:03:26,280 --> 00:03:28,919 Speaker 3: at the core business it's down even more. And that's 65 00:03:29,000 --> 00:03:32,040 Speaker 3: even with adding you know, one point eight billion in 66 00:03:32,080 --> 00:03:34,760 Speaker 3: revenues from so fora So it shows that there is 67 00:03:34,920 --> 00:03:37,680 Speaker 3: trouble in the core business. And of course they've rotated 68 00:03:37,720 --> 00:03:41,440 Speaker 3: through several CEOs and they're on an interim CEO as 69 00:03:41,440 --> 00:03:45,480 Speaker 3: they hunt for a permanent their fifth CEO and just 70 00:03:45,560 --> 00:03:46,360 Speaker 3: over two years. 71 00:03:46,480 --> 00:03:49,680 Speaker 4: Oh boy, geez all right, Mary, that's that explains it all. 72 00:03:49,800 --> 00:03:52,160 Speaker 4: Mary Roskilbert, thank you so much for joining us. Mary Roskilbert. 73 00:03:52,280 --> 00:03:55,360 Speaker 4: There's the retailers for Bloomberg Intelligence. She's based out there 74 00:03:55,400 --> 00:03:57,400 Speaker 4: in our Los Angeles euro. 75 00:03:59,120 --> 00:04:02,800 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 76 00:04:02,880 --> 00:04:05,960 Speaker 1: weekdays at ten am Eastern on Apple Coarclay, and Android 77 00:04:06,000 --> 00:04:09,280 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 78 00:04:09,360 --> 00:04:13,160 Speaker 1: you get your podcasts, or watch us live on YouTube. 79 00:04:13,320 --> 00:04:15,240 Speaker 2: General Motors. That's where we went to get to it 80 00:04:15,280 --> 00:04:17,200 Speaker 2: took a big hit from President Trump's tariffs. Are you 81 00:04:17,200 --> 00:04:20,719 Speaker 2: ready for this, Paul Okay? One point one billion dollar 82 00:04:20,760 --> 00:04:23,560 Speaker 2: profit hit. So what kind of impact is that going 83 00:04:23,600 --> 00:04:25,120 Speaker 2: to have for the company. Well, we want to hear 84 00:04:25,160 --> 00:04:27,840 Speaker 2: from the expert about all this, So let's find out, 85 00:04:27,880 --> 00:04:30,520 Speaker 2: and let's go to David Wells. He's Bloomberg Detroit bureau chief. 86 00:04:30,600 --> 00:04:33,400 Speaker 2: He's joining us live from Detroit. So, David, were you 87 00:04:33,640 --> 00:04:36,000 Speaker 2: surprised with that figure one point one billion dollars? I mean, 88 00:04:36,040 --> 00:04:40,600 Speaker 2: we heard from Stalantis too, kind of saying something similar yesterday. 89 00:04:40,760 --> 00:04:43,000 Speaker 5: No, not surprised at all. GM said they were going 90 00:04:43,040 --> 00:04:45,240 Speaker 5: to take a four to five billion dollar hit, or 91 00:04:45,680 --> 00:04:48,200 Speaker 5: that they had forty five billion dollars in exposure this 92 00:04:48,320 --> 00:04:50,279 Speaker 5: year to tariffs and then they would only be able 93 00:04:50,279 --> 00:04:55,040 Speaker 5: to offset about thirty percent of it, and the measures 94 00:04:55,080 --> 00:04:57,000 Speaker 5: they're using talk set that you really won't see to 95 00:04:57,040 --> 00:04:59,200 Speaker 5: the second half. I thought there would be a pretty 96 00:04:59,200 --> 00:05:02,599 Speaker 5: big hit to it. I don't think the street was 97 00:05:02,600 --> 00:05:07,479 Speaker 5: surprised either, because the forecast for GM's earnings were for 98 00:05:07,560 --> 00:05:09,520 Speaker 5: a pretty big drop off of the second quarter of 99 00:05:09,600 --> 00:05:12,120 Speaker 5: last year. Already, GM did better than that because they 100 00:05:12,120 --> 00:05:15,040 Speaker 5: did have some things, better profits in China than we 101 00:05:15,080 --> 00:05:18,719 Speaker 5: saw a year ago and better sales in the US 102 00:05:18,720 --> 00:05:21,160 Speaker 5: that helped them. But overall, a pretty tough quarter, and 103 00:05:21,200 --> 00:05:23,719 Speaker 5: it really shows that the car companies are going to 104 00:05:23,800 --> 00:05:28,040 Speaker 5: have a tough time getting anything close to pre tariff 105 00:05:28,120 --> 00:05:30,839 Speaker 5: profits going forward, because there's just no easy way to 106 00:05:30,839 --> 00:05:31,520 Speaker 5: get around them. 107 00:05:31,839 --> 00:05:34,599 Speaker 4: So I mean, is what we're to take away from 108 00:05:34,640 --> 00:05:37,520 Speaker 4: the Stalantis numbers yesterday and the GM numbers today is 109 00:05:37,520 --> 00:05:40,839 Speaker 4: that the autumn manufacturers, for whatever reason, maybe they're just 110 00:05:40,880 --> 00:05:43,000 Speaker 4: not able to or they chose not to pass along 111 00:05:43,320 --> 00:05:46,240 Speaker 4: the bulk of their cost increases to consumers. Is at 112 00:05:46,720 --> 00:05:48,839 Speaker 4: a policy or is that just an economic reality? 113 00:05:49,920 --> 00:05:52,440 Speaker 5: It's an economic reality. And look Stoantis has a lot 114 00:05:52,440 --> 00:05:54,440 Speaker 5: of other issues. You know, they're going to do some 115 00:05:54,440 --> 00:05:58,360 Speaker 5: pretty heavy restructuring, which they talked about yesterday. But look, 116 00:05:58,720 --> 00:06:01,000 Speaker 5: we're at a period right now. We're interest rates are 117 00:06:01,040 --> 00:06:05,160 Speaker 5: at pretty high levels. You have historically not record but 118 00:06:05,200 --> 00:06:07,880 Speaker 5: pretty close to record new vehicle prices in the US 119 00:06:07,960 --> 00:06:10,760 Speaker 5: right now, average monthly payment well over seven hundred hours 120 00:06:10,800 --> 00:06:12,719 Speaker 5: a month. We have a record number of people I 121 00:06:12,720 --> 00:06:14,600 Speaker 5: think paying more than one thousand dollars a month for 122 00:06:14,640 --> 00:06:18,320 Speaker 5: their monthly payment. Cars are expensive, so you know, you 123 00:06:18,320 --> 00:06:20,200 Speaker 5: can go out there and say, hey, I'm going to 124 00:06:20,200 --> 00:06:22,680 Speaker 5: pass this tariff cost on to consumers or even some 125 00:06:22,800 --> 00:06:25,680 Speaker 5: of it, but if consumers don't pay it, then you 126 00:06:25,720 --> 00:06:29,400 Speaker 5: just lose the sales. And you haven't seen huge price increases, 127 00:06:29,400 --> 00:06:32,200 Speaker 5: You've seen small and you've seen companies sneak in, you know, 128 00:06:32,240 --> 00:06:36,760 Speaker 5: some bigger fees for transporting the vehicle for example, things 129 00:06:36,800 --> 00:06:40,479 Speaker 5: like that. But it's just not they just don't really 130 00:06:40,480 --> 00:06:43,480 Speaker 5: have the ability to push in big price increases to 131 00:06:43,960 --> 00:06:46,359 Speaker 5: you know, to pass on. In GM's case, a billion 132 00:06:46,400 --> 00:06:47,920 Speaker 5: dollars worth of tariffs in a quarter. 133 00:06:48,560 --> 00:06:51,600 Speaker 2: And it's not just terrors. What else affected profits for GM? 134 00:06:51,640 --> 00:06:53,599 Speaker 2: I mean, how's their inventory for electric vehicles? 135 00:06:54,960 --> 00:06:56,919 Speaker 5: They built that up in the quarter, and since the 136 00:06:56,960 --> 00:06:59,679 Speaker 5: vehicles lose money, they have to count for that. That 137 00:06:59,680 --> 00:07:02,960 Speaker 5: that them I think it was six hundred million dollars 138 00:07:03,040 --> 00:07:05,080 Speaker 5: in the quarter they had three hundred million. Because they've 139 00:07:05,080 --> 00:07:08,320 Speaker 5: had a big engine recalls, they've had higher warranty costs. 140 00:07:08,480 --> 00:07:10,440 Speaker 5: It wasn't just because of that recall. They've had other 141 00:07:10,480 --> 00:07:13,720 Speaker 5: issues and they're working on that. Some of it. Some 142 00:07:13,760 --> 00:07:16,400 Speaker 5: of these quality issues you're seeing that are costing companies 143 00:07:16,440 --> 00:07:19,880 Speaker 5: more in warranty and recall type costs are all the 144 00:07:19,960 --> 00:07:23,560 Speaker 5: software that goes into electric vehicles. These are kind of 145 00:07:23,560 --> 00:07:28,679 Speaker 5: first times out with new software, new infotainment systems, power 146 00:07:28,720 --> 00:07:32,680 Speaker 5: management systems in these vehicles, and it's just tough for 147 00:07:32,720 --> 00:07:35,560 Speaker 5: them to go out there and not be buggy, right, 148 00:07:35,920 --> 00:07:38,040 Speaker 5: you know, think about how many times there's something on 149 00:07:38,080 --> 00:07:42,160 Speaker 5: your smartphone that you know needs an update, and fixing 150 00:07:42,160 --> 00:07:45,400 Speaker 5: that with the cars is often more expensive. So some 151 00:07:45,480 --> 00:07:48,320 Speaker 5: of it was related to that. And actually, you know, 152 00:07:48,360 --> 00:07:51,320 Speaker 5: they saw pricing go down with some of their fleet customers. 153 00:07:51,880 --> 00:07:53,840 Speaker 5: There's a lot of competition out there for the for 154 00:07:53,880 --> 00:07:57,720 Speaker 5: the corporate and fleet business, and they actually saw some 155 00:07:57,760 --> 00:07:59,760 Speaker 5: downward price pressure there too, and that cost them a 156 00:07:59,800 --> 00:08:02,560 Speaker 5: couple one hundred million dollars. So a lot of things 157 00:08:02,560 --> 00:08:05,200 Speaker 5: in the quarter that pushed profits down. But tariffs are 158 00:08:05,240 --> 00:08:06,160 Speaker 5: the real story. 159 00:08:05,840 --> 00:08:09,440 Speaker 4: Here, David. You're out there in Detroit. You live and 160 00:08:09,440 --> 00:08:12,000 Speaker 4: breathe this stuff every day. What's the feeling in Detroit 161 00:08:12,040 --> 00:08:16,520 Speaker 4: as it relates to this evolution to evs? And how 162 00:08:16,560 --> 00:08:19,760 Speaker 4: will the tariff and the tariff impact on profitability? Is 163 00:08:19,760 --> 00:08:22,880 Speaker 4: that going to slow this down even more? Do you think? 164 00:08:24,720 --> 00:08:25,080 Speaker 3: I do? 165 00:08:25,560 --> 00:08:29,920 Speaker 5: I think everything that Trump administration is doing is really 166 00:08:29,920 --> 00:08:33,040 Speaker 5: going to slow the ev transition. First of all, you know, 167 00:08:33,040 --> 00:08:35,559 Speaker 5: the obvious one is there. It comes September, they're going 168 00:08:35,559 --> 00:08:37,240 Speaker 5: to be getting rid of the seventy five hundred dollars 169 00:08:37,320 --> 00:08:41,160 Speaker 5: tax break for qualifying electric vehicles. But you know, with tariffs, 170 00:08:41,280 --> 00:08:46,959 Speaker 5: you've got battery components, electronic components, wiring harnesses. There's more 171 00:08:47,000 --> 00:08:49,880 Speaker 5: wiring in an EV than in a conventional vehicle. All 172 00:08:49,960 --> 00:08:52,199 Speaker 5: that stuff adds to the cost of vehicles that already 173 00:08:52,280 --> 00:08:54,720 Speaker 5: lose money. Some of them are actually built overseas. In 174 00:08:54,720 --> 00:08:58,599 Speaker 5: the case of Hyundai, they make some of theirs overseas. 175 00:08:58,640 --> 00:09:01,800 Speaker 5: GM makes a couple of it's evs in Mexico. They 176 00:09:01,800 --> 00:09:05,280 Speaker 5: do qualify for US MCA, but there are still some 177 00:09:05,480 --> 00:09:09,880 Speaker 5: parts component tariffs that they can be hit with on 178 00:09:09,920 --> 00:09:10,840 Speaker 5: some of these vehicles. 179 00:09:10,920 --> 00:09:11,280 Speaker 4: And so. 180 00:09:12,880 --> 00:09:15,440 Speaker 5: You add costs to vehicles that are already pretty expensive, 181 00:09:15,600 --> 00:09:19,480 Speaker 5: and you can't pass it on. If you do, even 182 00:09:19,520 --> 00:09:22,280 Speaker 5: fewer people will buy them. Companies may have less incentive 183 00:09:22,320 --> 00:09:24,160 Speaker 5: to build and sell them if they lose even more 184 00:09:24,200 --> 00:09:26,400 Speaker 5: money on these, So that's going to hurt as well. 185 00:09:26,440 --> 00:09:29,280 Speaker 5: And then, of course Trump's rhetoric for people who are 186 00:09:30,120 --> 00:09:33,640 Speaker 5: politically right of center and pretty far right is that 187 00:09:33,800 --> 00:09:35,960 Speaker 5: you know, evs are a dumb purchase and they don't 188 00:09:35,960 --> 00:09:39,800 Speaker 5: work for you, and I think that hurts sales as well. 189 00:09:39,920 --> 00:09:42,520 Speaker 5: So all of this is just not good for the 190 00:09:42,520 --> 00:09:46,840 Speaker 5: momentum that EV's had in the US before Trump got 191 00:09:46,840 --> 00:09:47,280 Speaker 5: in office. 192 00:09:47,559 --> 00:09:49,720 Speaker 2: Yeah, So, David, last month, the company said it would 193 00:09:49,720 --> 00:09:52,120 Speaker 2: shift some production to the US from Mexico. So what 194 00:09:52,160 --> 00:09:54,880 Speaker 2: other changes can we expect to see from the company, 195 00:09:54,960 --> 00:09:56,440 Speaker 2: like in the last minute or so we have left. 196 00:09:58,200 --> 00:10:01,120 Speaker 5: Yeah, I think you'll see them try to bring more parts, 197 00:10:01,440 --> 00:10:03,160 Speaker 5: more of the parts they buy into the US, so 198 00:10:03,200 --> 00:10:06,280 Speaker 5: they'll be encouraging their suppliers to do what they're doing. 199 00:10:06,280 --> 00:10:08,400 Speaker 5: Will just move some production to the United States, and 200 00:10:08,440 --> 00:10:11,440 Speaker 5: that'll take time, and you know, you may see them 201 00:10:12,640 --> 00:10:15,480 Speaker 5: make some more production related news. What they've done is 202 00:10:15,480 --> 00:10:18,640 Speaker 5: pretty big, So I'm not anticipating any big announcements. But 203 00:10:19,320 --> 00:10:20,680 Speaker 5: you know, as they look at this and they find 204 00:10:20,720 --> 00:10:22,560 Speaker 5: other ways to do it, you might see more vehicles, 205 00:10:22,559 --> 00:10:24,280 Speaker 5: more parts built here in the US. 206 00:10:26,080 --> 00:10:28,760 Speaker 2: Thank you so much, David Wells, Bloomberg, Detroit ber Chief 207 00:10:28,920 --> 00:10:31,640 Speaker 2: talking about GM earnings and so much more. 208 00:10:31,880 --> 00:10:34,920 Speaker 4: I think GM right here. If you go GM Equity, 209 00:10:35,040 --> 00:10:39,440 Speaker 4: FA just brings up the financial statements. Their net income 210 00:10:39,840 --> 00:10:44,360 Speaker 4: margin is five percent. Ok, that's it. They got like 211 00:10:44,480 --> 00:10:47,920 Speaker 4: no margin, no profit margin. Anything goes wrong for these 212 00:10:48,080 --> 00:10:49,880 Speaker 4: auto companies and they get screwed. 213 00:10:49,960 --> 00:10:51,800 Speaker 2: You always say I never understand the auto company. 214 00:10:51,800 --> 00:10:53,240 Speaker 4: I don't want to, just don't get it. And oh, 215 00:10:53,280 --> 00:10:55,720 Speaker 4: by the way, my top line splat. I mean, you know, 216 00:10:56,200 --> 00:11:00,240 Speaker 4: I just it's a high margin. You will make up 217 00:11:00,240 --> 00:11:02,400 Speaker 4: a volume. I guess it's one of those business So 218 00:11:02,400 --> 00:11:05,199 Speaker 4: it's just a tough, tough business. And then you throw 219 00:11:05,200 --> 00:11:07,440 Speaker 4: on top of the TIFFs and then oh, by the way, 220 00:11:07,480 --> 00:11:10,640 Speaker 4: I have to change my entire industry that I built 221 00:11:10,679 --> 00:11:14,160 Speaker 4: up over the last hundred years to go electric. Yeah, 222 00:11:14,160 --> 00:11:15,840 Speaker 4: I'm invest in that. Yeah, I don't know. 223 00:11:15,840 --> 00:11:19,120 Speaker 2: We got a shift production us to Mexico. It's never 224 00:11:19,240 --> 00:11:22,040 Speaker 2: ending from them. 225 00:11:22,120 --> 00:11:25,800 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 226 00:11:25,880 --> 00:11:29,280 Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto 227 00:11:29,360 --> 00:11:32,440 Speaker 1: with the Bloomberg Business app. Listen on demand wherever you 228 00:11:32,480 --> 00:11:35,480 Speaker 1: get your podcasts, or watch us live on YouTube. 229 00:11:36,160 --> 00:11:39,120 Speaker 2: And we're listening to Bloomberg Intelligence. I'm Lisa Matteo alongside 230 00:11:39,120 --> 00:11:41,560 Speaker 2: Paul Sweeney, and we are in the thick of earning 231 00:11:41,600 --> 00:11:45,360 Speaker 2: season right among those companies today, one of them, Coca Cola, 232 00:11:45,559 --> 00:11:48,640 Speaker 2: beat on second quarter sales growth, profit. But it's another 233 00:11:48,760 --> 00:11:51,720 Speaker 2: headline that's getting some attention. They are launching a new 234 00:11:51,800 --> 00:11:55,480 Speaker 2: coke product that's made with cane sugar. So here to 235 00:11:55,520 --> 00:11:57,920 Speaker 2: tell us more about it is Candida Jay is Bloomberg Intelligence, 236 00:11:57,960 --> 00:12:01,520 Speaker 2: Senior consumer products Analysts, Kenneth, thanks for joining us here 237 00:12:01,520 --> 00:12:04,400 Speaker 2: from Princeton. How much of an impact did the President 238 00:12:04,440 --> 00:12:05,880 Speaker 2: have on this decision from Coke? 239 00:12:07,360 --> 00:12:10,680 Speaker 6: Yeah, Hi, Lisa. Well, it's hard to say, but it 240 00:12:10,760 --> 00:12:12,760 Speaker 6: certainly is in sync with what Coca Cola has been 241 00:12:12,760 --> 00:12:15,120 Speaker 6: doing for a long time, and that is keeping its 242 00:12:15,120 --> 00:12:18,040 Speaker 6: pulse on what the consumer wants to do. It has 243 00:12:18,120 --> 00:12:21,240 Speaker 6: a lot of assets at its disposal, and a cane 244 00:12:21,280 --> 00:12:24,719 Speaker 6: sugar product is not novel to Coca Cola. I mean, 245 00:12:24,840 --> 00:12:28,480 Speaker 6: it's produced it in the US largely more more outside 246 00:12:28,480 --> 00:12:31,400 Speaker 6: of the US, but in the US on a selected basis, 247 00:12:31,480 --> 00:12:34,559 Speaker 6: So it's really just going to expand that. It may 248 00:12:34,600 --> 00:12:39,120 Speaker 6: have been prompted to a degree by the President's tweets 249 00:12:39,200 --> 00:12:42,680 Speaker 6: or whatever, but it's certainly in sync. Like I said, 250 00:12:42,800 --> 00:12:44,520 Speaker 6: you know, there's a there's an audience out there that 251 00:12:44,640 --> 00:12:48,920 Speaker 6: prefers sugar based as opposed to high fructose cornci based 252 00:12:49,120 --> 00:12:51,520 Speaker 6: full calorie sodas, and they're going to play into that. 253 00:12:51,600 --> 00:12:54,040 Speaker 6: Most likely, it's going to be a brand Coke extension, 254 00:12:54,240 --> 00:12:56,480 Speaker 6: and it's going to be sell at a premium price 255 00:12:56,600 --> 00:13:00,640 Speaker 6: in selected markets to give it an aura of exclusivity. 256 00:13:00,720 --> 00:13:04,760 Speaker 6: I'm guessing to command those prices and so just theys 257 00:13:04,760 --> 00:13:07,080 Speaker 6: a little more excitement. It's it's one of many things 258 00:13:07,080 --> 00:13:09,440 Speaker 6: Coke is doing now on the innovation front. 259 00:13:10,679 --> 00:13:14,160 Speaker 4: So from Coca Cola's economic perspective, do they care which 260 00:13:14,280 --> 00:13:15,360 Speaker 4: ingredient they use? 261 00:13:17,160 --> 00:13:19,880 Speaker 6: Well, it depends, Paul, it depends if they can capture 262 00:13:19,920 --> 00:13:22,200 Speaker 6: the premium price they're going to you know, price it 263 00:13:22,200 --> 00:13:25,360 Speaker 6: at Kine. Shugar costs more than high frucos corns here. 264 00:13:25,480 --> 00:13:28,280 Speaker 6: You know, a corn is a heavily, heavily subsidized crop 265 00:13:28,320 --> 00:13:32,920 Speaker 6: in the US. They built their supply chain around HFCs 266 00:13:32,960 --> 00:13:36,640 Speaker 6: because of that, and most consumers early, you know, they 267 00:13:36,679 --> 00:13:40,360 Speaker 6: don't really notice the difference. Some do, but buy and large. 268 00:13:40,920 --> 00:13:44,880 Speaker 6: You know, they've grown that franchise very well. But I 269 00:13:44,920 --> 00:13:47,320 Speaker 6: guess you know some tourists that go to Mexico and 270 00:13:47,360 --> 00:13:50,600 Speaker 6: they taste the sugar cane sugar coke down the air 271 00:13:50,640 --> 00:13:51,960 Speaker 6: and they say, you know what, this is really good, 272 00:13:52,440 --> 00:13:55,160 Speaker 6: and they want to capture the same experience in the US. 273 00:13:55,320 --> 00:13:58,040 Speaker 4: I'm going to Chipotle today and they do offer the 274 00:13:58,160 --> 00:14:00,160 Speaker 4: Mexican zoda there. 275 00:14:00,280 --> 00:14:03,080 Speaker 7: Can I give you the history of high fructose corn syrup. 276 00:14:03,120 --> 00:14:06,400 Speaker 7: It was in the nineteen seventies, with high inflation and 277 00:14:06,559 --> 00:14:10,400 Speaker 7: high sugar prices. President Nixon said, do something about this, 278 00:14:10,760 --> 00:14:13,400 Speaker 7: and this guy said, well, we can make a sugary 279 00:14:14,679 --> 00:14:19,920 Speaker 7: tasting stuff from corn from American farmers and US high 280 00:14:19,960 --> 00:14:23,800 Speaker 7: fructose corn syrup, which most doctors say is like poison 281 00:14:23,920 --> 00:14:26,240 Speaker 7: to your system. There we go, thank. 282 00:14:26,360 --> 00:14:29,080 Speaker 4: Don taker with the value added there. Let me ask, 283 00:14:29,360 --> 00:14:32,560 Speaker 4: let me shift gears here. What is a ZIN patch? 284 00:14:36,480 --> 00:14:38,840 Speaker 6: A Zin patch? Do you want to patch it? I 285 00:14:38,840 --> 00:14:42,280 Speaker 6: think they made a pouch pouch. Zin pouch is a pouch, 286 00:14:42,320 --> 00:14:45,920 Speaker 6: you know, it's it's an oral tobacco product. Actually, Zin 287 00:14:47,080 --> 00:14:51,080 Speaker 6: doesn't even contain tobacco. It's a synthetic product. Its lads 288 00:14:51,080 --> 00:14:55,120 Speaker 6: with nicotine that is a facsimile for tobacco, which a 289 00:14:55,160 --> 00:14:57,520 Speaker 6: lot of people will say causes harm, and a lot 290 00:14:57,560 --> 00:15:00,560 Speaker 6: of people are right. So this is a product that 291 00:15:01,320 --> 00:15:03,800 Speaker 6: you know, people can get their nicotine buzz in a 292 00:15:04,920 --> 00:15:07,120 Speaker 6: you know, hands off kind of way, doesn't emit smoke, 293 00:15:07,200 --> 00:15:10,000 Speaker 6: doesn't offend your neighbor that you're working with, and it's 294 00:15:10,000 --> 00:15:12,480 Speaker 6: done really really well. So those are really the Zin 295 00:15:12,640 --> 00:15:14,200 Speaker 6: pouches that are doing really well. 296 00:15:14,280 --> 00:15:17,600 Speaker 4: Yeah, yeah, I thought it was Zinfindel. The line that's 297 00:15:17,600 --> 00:15:21,520 Speaker 4: no kidding, No, I that pouch so but I mean 298 00:15:21,800 --> 00:15:24,240 Speaker 4: it's it's big enough a business can that Philip mars 299 00:15:24,280 --> 00:15:25,360 Speaker 4: would would call it out. 300 00:15:27,320 --> 00:15:30,360 Speaker 6: Oh yeah, it is in it's about eight percent of 301 00:15:30,360 --> 00:15:32,760 Speaker 6: the sales, I believe at this point. But it's growing, 302 00:15:32,920 --> 00:15:36,160 Speaker 6: you know, a twenty thirty percent rate, as opposed cigarettes 303 00:15:36,200 --> 00:15:39,480 Speaker 6: which are flat, if not down. But you know, Icoas 304 00:15:39,640 --> 00:15:43,200 Speaker 6: is their smoke free device segment, which is doing very well. 305 00:15:43,800 --> 00:15:46,000 Speaker 6: But if the low large numbers at some point, that's 306 00:15:46,000 --> 00:15:48,640 Speaker 6: going to slow and Zen is filling the gap. They 307 00:15:48,760 --> 00:15:53,000 Speaker 6: keep the overall volumes in a positive trend. They price 308 00:15:53,120 --> 00:15:55,239 Speaker 6: these things very high. There's not a lot of competition 309 00:15:55,840 --> 00:15:57,920 Speaker 6: in this space. So you know, one of the things 310 00:15:57,960 --> 00:16:00,560 Speaker 6: investors would say about the world of tobacco, because it's 311 00:16:00,560 --> 00:16:03,880 Speaker 6: so consolidated, they can pass on a very high pricing 312 00:16:04,040 --> 00:16:06,200 Speaker 6: and that's what really drives a top line and you 313 00:16:06,200 --> 00:16:09,440 Speaker 6: know the cash flows and so on. And Zen plays very, 314 00:16:09,200 --> 00:16:11,240 Speaker 6: very very well into that model. 315 00:16:11,920 --> 00:16:13,960 Speaker 2: And how does it fair as far as we're hear 316 00:16:14,000 --> 00:16:16,720 Speaker 2: about e cigarettes vaping things like that, how has Philip 317 00:16:16,720 --> 00:16:19,400 Speaker 2: Marris been doing competing with this category. 318 00:16:20,880 --> 00:16:23,640 Speaker 6: So they have a product called viv which is their 319 00:16:24,200 --> 00:16:26,760 Speaker 6: e vapor product as opposed to what they call heat 320 00:16:26,840 --> 00:16:30,400 Speaker 6: not burn, which has actual tobacco in it, and they 321 00:16:30,440 --> 00:16:35,040 Speaker 6: would say as a more appealing alternative for smokers who 322 00:16:35,040 --> 00:16:38,840 Speaker 6: are trying to quit. It's a lower margin product. It's 323 00:16:38,920 --> 00:16:40,760 Speaker 6: kind of seen by Philip Morris as a kind of 324 00:16:40,760 --> 00:16:43,240 Speaker 6: an entry level product. If for those who are trying 325 00:16:43,240 --> 00:16:46,480 Speaker 6: to move away from combustible cigarettes, they can turn to 326 00:16:46,640 --> 00:16:50,120 Speaker 6: e cigarettes a low cost method, and their hope is that, 327 00:16:50,600 --> 00:16:52,640 Speaker 6: you know, even though it's a low margin product, their 328 00:16:52,680 --> 00:16:56,520 Speaker 6: hope is that they can get that consumer maybe some 329 00:16:56,680 --> 00:16:59,400 Speaker 6: at some point to trade up to their heat not 330 00:16:59,480 --> 00:17:04,000 Speaker 6: burn product, which is, you know, a more profitable product 331 00:17:04,000 --> 00:17:04,600 Speaker 6: for them. 332 00:17:04,880 --> 00:17:06,840 Speaker 4: All right, good stuff. I mean I learned about the 333 00:17:06,960 --> 00:17:12,159 Speaker 4: zin pouch today. How about it's not Zinfindel. Okay, all right, 334 00:17:12,280 --> 00:17:14,800 Speaker 4: very good, so good stuff there, Ken Shay, thanks so much. 335 00:17:15,040 --> 00:17:19,240 Speaker 4: Ken covers all those consumer products at companies for Bloomberg Intelligence. 336 00:17:19,240 --> 00:17:21,000 Speaker 4: Appreciate getting a few minutes of this time. 337 00:17:22,680 --> 00:17:26,399 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 338 00:17:26,480 --> 00:17:29,840 Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto 339 00:17:29,960 --> 00:17:33,040 Speaker 1: with the Bloomberg Business app. Listen on demand wherever you 340 00:17:33,080 --> 00:17:36,040 Speaker 1: get your podcasts or watch us live on YouTube. 341 00:17:36,920 --> 00:17:39,280 Speaker 4: Lis MITTEO, Paul Sweety, We're live here on Bloomberg Interactive 342 00:17:39,280 --> 00:17:42,480 Speaker 4: Broker Studio. Let's talk about Lockheed Martin. Put out some 343 00:17:42,560 --> 00:17:45,720 Speaker 4: numbers disappointing here, took some losses here. Let's break it 344 00:17:45,720 --> 00:17:49,480 Speaker 4: down with will Lee Aerospace and Defense channels for Bloomberg Intelligence. Well, 345 00:17:50,040 --> 00:17:53,280 Speaker 4: Lockheed Martin, I mean, they just do everything. What happened 346 00:17:53,400 --> 00:17:54,200 Speaker 4: in the quarter. 347 00:17:54,359 --> 00:17:56,480 Speaker 8: Yeah, So, I mean if you look at the quarter 348 00:17:56,680 --> 00:17:59,560 Speaker 8: of the performance was modeled by this hefty one point 349 00:17:59,600 --> 00:18:02,800 Speaker 8: six billion dollars chart on program losses and then another 350 00:18:02,800 --> 00:18:06,440 Speaker 8: one hundred sixty nine million of other charges. There was 351 00:18:06,480 --> 00:18:08,919 Speaker 8: the end gap right off. I think that was around 352 00:18:08,920 --> 00:18:10,480 Speaker 8: like sixty sixty six. 353 00:18:10,800 --> 00:18:13,000 Speaker 4: Let's go back to the big one one point six billion, 354 00:18:13,280 --> 00:18:14,239 Speaker 4: So what's that for? 355 00:18:14,480 --> 00:18:16,720 Speaker 8: So out that one point six nine hundred and fifty 356 00:18:16,760 --> 00:18:20,200 Speaker 8: million is for for a classified aeronautics. 357 00:18:19,600 --> 00:18:20,800 Speaker 4: Program, so they can't tell us. 358 00:18:20,880 --> 00:18:22,000 Speaker 6: They can't tell us what it is. 359 00:18:22,080 --> 00:18:25,520 Speaker 8: But if it's something that big and it's been going on, 360 00:18:25,720 --> 00:18:28,600 Speaker 8: and in fourth quarter they also recorded another four hundred 361 00:18:28,640 --> 00:18:31,680 Speaker 8: and forty million dollars or four hundred and seventy seven stop. 362 00:18:31,560 --> 00:18:34,160 Speaker 4: Doing that program, then I don't know what they could 363 00:18:34,240 --> 00:18:36,199 Speaker 4: tell you, but then they have to kill you. 364 00:18:36,359 --> 00:18:39,440 Speaker 8: Well, given that it's a huge program and they're taking 365 00:18:39,920 --> 00:18:42,480 Speaker 8: over a billion dollars of charges, what could possibly be 366 00:18:42,760 --> 00:18:46,439 Speaker 8: so important so big and most likely is the A 367 00:18:46,560 --> 00:18:52,520 Speaker 8: name six generation ISR. What's IRR Intelligence surveillance reconstants, So 368 00:18:52,600 --> 00:18:55,800 Speaker 8: think of as the replacement for the SR seventy SRC. 369 00:18:56,520 --> 00:19:01,800 Speaker 4: Now we're talking SR seventy one to Okay, So. 370 00:19:02,280 --> 00:19:05,840 Speaker 8: If you think about in that respect, Bowen has the 371 00:19:06,040 --> 00:19:09,159 Speaker 8: F forty seven, that's the sixth generator, sixth generation of 372 00:19:09,240 --> 00:19:12,240 Speaker 8: fighter jet. That's going to be the biggest sixth generation program. 373 00:19:13,040 --> 00:19:17,000 Speaker 8: Navy wants their own sixth generation, the FAXX. I think 374 00:19:17,040 --> 00:19:19,479 Speaker 8: that Northrope has the inside tractor. When that given that 375 00:19:20,160 --> 00:19:22,000 Speaker 8: Dood doesn't want to make the same mistake that I 376 00:19:22,040 --> 00:19:24,560 Speaker 8: made with F thirty five, given lot UH with F 377 00:19:24,560 --> 00:19:27,760 Speaker 8: three five F twenty two, given Lockie both control of 378 00:19:27,800 --> 00:19:30,359 Speaker 8: the fifth generation fighters, so they break up into multiple 379 00:19:30,400 --> 00:19:35,399 Speaker 8: defense contractors and have more resilient industrial base. So in 380 00:19:35,480 --> 00:19:41,479 Speaker 8: that with that mindset, Bowen has F forty seven UH, 381 00:19:42,200 --> 00:19:45,879 Speaker 8: Northrope pass the FAXX, and Lockie could potentially have the 382 00:19:46,000 --> 00:19:48,200 Speaker 8: sixth generation reconnaissance aircraft. 383 00:19:48,400 --> 00:19:50,760 Speaker 2: So what all those numbers that my son would be 384 00:19:50,840 --> 00:19:53,200 Speaker 2: having a field day with this conversation right now. He 385 00:19:53,280 --> 00:19:57,879 Speaker 2: is so into this is this typical of defense contracting environment? 386 00:19:57,920 --> 00:19:59,720 Speaker 2: I mean growth is marginal there, you were mentoring a 387 00:19:59,760 --> 00:20:00,879 Speaker 2: number of numbers before. 388 00:20:01,000 --> 00:20:04,800 Speaker 8: Is this typical? I mean to this large extent, this 389 00:20:04,880 --> 00:20:08,840 Speaker 8: is sort of unusual. I mean they've locky teased that 390 00:20:08,920 --> 00:20:11,200 Speaker 8: they were going to they were looking at additional charges 391 00:20:12,119 --> 00:20:16,240 Speaker 8: after the quarter. They didn't mention or indicate how large 392 00:20:16,240 --> 00:20:19,320 Speaker 8: that magnitude was. So this sort of caught the street 393 00:20:19,560 --> 00:20:22,440 Speaker 8: by surprise the size of it. But I mean, I 394 00:20:22,440 --> 00:20:25,240 Speaker 8: think it just shows that this is a key program 395 00:20:25,280 --> 00:20:28,439 Speaker 8: that's that's going to keep going for But even if 396 00:20:28,440 --> 00:20:32,240 Speaker 8: you just strip out all the charges from the quarter 397 00:20:32,320 --> 00:20:35,480 Speaker 8: and you look at the underlying performance, the performance actually 398 00:20:35,520 --> 00:20:38,399 Speaker 8: was not bad. In second quarter, Aeron ONLYYX grew seven 399 00:20:38,400 --> 00:20:40,879 Speaker 8: percent on high F thirty five volumes and the F 400 00:20:40,920 --> 00:20:44,040 Speaker 8: thirty five, and they also took up the the prop 401 00:20:44,160 --> 00:20:47,600 Speaker 8: a cumulative profit booking rates on the F thirty five 402 00:20:48,119 --> 00:20:51,000 Speaker 8: in the quarter, and the Missile and fire control segment 403 00:20:51,119 --> 00:20:54,760 Speaker 8: it grew eleven percent on strong demand on tactical and 404 00:20:54,840 --> 00:20:58,600 Speaker 8: strike missiles. So you're talking about the jazzm the JASM 405 00:20:58,920 --> 00:21:02,600 Speaker 8: air to service missile, the Lorasm anti ship missiles, and 406 00:21:02,640 --> 00:21:05,360 Speaker 8: the gimblers that are used on the High Mars those 407 00:21:05,359 --> 00:21:08,480 Speaker 8: are those are rockets that we've been sending over to 408 00:21:08,600 --> 00:21:10,560 Speaker 8: Ukraine are. 409 00:21:10,440 --> 00:21:13,159 Speaker 4: So I'm looking at the comps. They're all trading up 410 00:21:13,200 --> 00:21:16,400 Speaker 4: on the year. Defense contractors stocks are doing great this year, 411 00:21:16,640 --> 00:21:19,240 Speaker 4: with the exception of Lockey Martin it's down eleven percent 412 00:21:19,280 --> 00:21:21,360 Speaker 4: year to date. What helpout that well? 413 00:21:21,400 --> 00:21:23,600 Speaker 8: I mean, the biggest headwind is the F thirty five 414 00:21:23,680 --> 00:21:25,720 Speaker 8: you have F thirty five is the news you have 415 00:21:26,080 --> 00:21:28,160 Speaker 8: talks of why do we need to have F thirty five? 416 00:21:28,640 --> 00:21:31,600 Speaker 8: In the fiscal twenty six budget requests the Air Force. 417 00:21:32,800 --> 00:21:35,399 Speaker 8: The Air Force cut the number of F thirty fives 418 00:21:35,920 --> 00:21:39,240 Speaker 8: to twenty four and that's down from forty four, So 419 00:21:39,280 --> 00:21:41,600 Speaker 8: across the board, I think that's the biggest headwind on 420 00:21:41,800 --> 00:21:44,679 Speaker 8: Lockie and the fact that you're not seeing you're not 421 00:21:44,720 --> 00:21:48,040 Speaker 8: seeing that more. You're you're seeing flat revenues and no 422 00:21:48,119 --> 00:21:50,160 Speaker 8: real margin improvement. So I think those are the two 423 00:21:50,160 --> 00:21:51,200 Speaker 8: big headwinds. 424 00:21:51,560 --> 00:21:53,040 Speaker 2: Yeah, can you get into that a little bit more 425 00:21:53,080 --> 00:21:56,320 Speaker 2: like RTX Corp North or Grumman, Like, what are they 426 00:21:56,520 --> 00:21:59,760 Speaker 2: doing better? That that that lockade isn't well. 427 00:21:59,640 --> 00:22:02,639 Speaker 8: I mean our stuff with north by their lever to 428 00:22:02,680 --> 00:22:05,639 Speaker 8: the b TOY one program and the Sentinel. So with 429 00:22:05,720 --> 00:22:07,879 Speaker 8: the b TY one, you're here in talks of the 430 00:22:07,880 --> 00:22:12,680 Speaker 8: Air Force looking to accelerate production and more quantities. And 431 00:22:13,080 --> 00:22:15,320 Speaker 8: that program right now is in this e M D 432 00:22:15,520 --> 00:22:20,200 Speaker 8: phase Engine Engineering Manufacturing development. So think of as sort 433 00:22:20,200 --> 00:22:23,920 Speaker 8: of this is still in the development low rate production phase, 434 00:22:24,920 --> 00:22:28,720 Speaker 8: but then it's going to transition to a production phase, 435 00:22:28,760 --> 00:22:30,520 Speaker 8: and when it goes to a production phase, you can 436 00:22:30,560 --> 00:22:33,240 Speaker 8: see potentially higher quantities. At Northrop talk to that on 437 00:22:33,280 --> 00:22:36,760 Speaker 8: their earnings called this morning saying that we're in discussions 438 00:22:36,760 --> 00:22:40,360 Speaker 8: with the Air Force and if we increase the production rate, 439 00:22:40,640 --> 00:22:42,840 Speaker 8: we might have to take additional we might have to 440 00:22:42,840 --> 00:22:46,400 Speaker 8: make additional investments, which means I had went to to earnings. 441 00:22:46,560 --> 00:22:50,000 Speaker 8: But at the same time they could potentially realize profit 442 00:22:50,200 --> 00:22:55,080 Speaker 8: on these low rate initial production lots and not to 443 00:22:55,119 --> 00:23:01,040 Speaker 8: exceed subsequent follower production, whereas before they were expecting no 444 00:23:01,119 --> 00:23:04,520 Speaker 8: profits on the l RIP phase and some profit on 445 00:23:05,080 --> 00:23:06,639 Speaker 8: the next NTE phase. 446 00:23:06,840 --> 00:23:09,240 Speaker 4: All Right, it just seems like it's good to be 447 00:23:09,280 --> 00:23:11,679 Speaker 4: in the defense business. It seems like, you know, we 448 00:23:12,040 --> 00:23:14,760 Speaker 4: spend money on the defense ear in and you're at Lockey. 449 00:23:14,760 --> 00:23:18,040 Speaker 4: Martin had a tough day today. It is down six percent. 450 00:23:18,240 --> 00:23:21,320 Speaker 4: LMT is the ticker will Thanks so much for joining 451 00:23:21,400 --> 00:23:24,480 Speaker 4: us A will Lee Aerospace Defense sanels for Bloomberg Intelligence 452 00:23:25,080 --> 00:23:28,320 Speaker 4: breaking down the LMT data here. 453 00:23:29,040 --> 00:23:33,760 Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify, 454 00:23:33,920 --> 00:23:37,400 Speaker 1: and anywhere else you get your podcasts. 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