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Speaker 3: Brook Sutherland she is a Bloomberg Opinion the Colm. She
Speaker 3: covers the industrials for Bloomberg Opinion. So, Brooke, this feels
Speaker 3: like really big news for our friends at boeen What
Speaker 3: does it mean to you when you see such a
Speaker 3: management shape pick up here for Boeing?
Speaker 4: It's definitely big news. I mean, I would say perhaps
Speaker 4: overdue big news, but it's important that they're making the
Speaker 4: change now, and it signals that I think they're giving
Speaker 4: the message that this needs to be deeper rooted cultural
Speaker 4: change at Boeing and really get to the bottom of
Speaker 4: what's been driving these manufacturing glitches, a series of problems
Speaker 4: that have been plaguing the Commercial Airplanes division. And to
Speaker 4: see them make it change not just at the top,
Speaker 4: but also at the head of the commercial Airplane division
Speaker 4: signals that they're really trying to do an overhaul here
Speaker 4: and it's about time, but they're doing it now.
Speaker 3: So Brooke, is there a feeling again this story here,
Speaker 3: this quality story has we're now several months into this year,
Speaker 3: with a little bit of hindsight, do we have any
Speaker 3: sense to what changed over the last maybe six to
Speaker 3: twelve months of this company versus the last, oh, I
Speaker 3: don't know, fifty years.
Speaker 4: I mean, I do think it's been notable the public
Speaker 4: criticism that's been coming out of their airline customers. I mean,
Speaker 4: certainly there was a lot of that in the wake
Speaker 4: of the seven thirty seven Max crashes in the grounding
Speaker 4: of that airplane, but not to the degree that we
Speaker 4: have seen in the wake of these recent quality control issues.
Speaker 4: And I think it's just been striking the level of
Speaker 4: criticism that we've seen directed at Boeing ME and its
Speaker 4: management team. And there were reports late last week that
Speaker 4: those airlines customers that actually asked for a meeting with
Speaker 4: the Bowing Board directly without CEO Dave Calhoun, and I
Speaker 4: think that that was an important Sigma R.
Speaker 2: How do you color a finance person with three decades
Speaker 2: of experienced Stephanie Pope coming in but critically to me,
Speaker 2: the key announcement Brooke is Steve Malinkoff of Qualcom with
Speaker 2: an electrical engineering background Virginia Tech. You know he's steeped
Speaker 2: in the engineering processes that are discussed here. What will
Speaker 2: he do? What's not day one for Steve Malincamp as
Speaker 2: the new chairman, but what the tone that he has
Speaker 2: to shift?
Speaker 4: I think, I mean job number one is figuring out
Speaker 4: who you hire to be the ultimate CEO, and I
Speaker 4: think it has to be somebody with, you know, an
Speaker 4: engineer's mindset towards manufacturing, and you really need somebody who's
Speaker 4: going to drill into every single process and root out
Speaker 4: defects and just improve the way that Boeing works. And
Speaker 4: I don't think this is a situation where you bring in,
Speaker 4: you know, a complete outsider CEO from the auto industry
Speaker 4: or healthcare or whatever it might be. It needs to
Speaker 4: be somebody who really knows manufacturing and frankly, you need
Speaker 4: somebody like Larry Colp a GE. But I don't know, Okay,
Speaker 4: he would want to.
Speaker 2: Take it, Okay, Loving and Paul, And I mean, it's
Speaker 2: teasing Brook here because I got to go to Kansas here.
Speaker 2: This job was built for Alan Malally, Kansas Aeronautics. Brooke
Speaker 2: knows this that Lawrence called Alan Malally or the kind
Speaker 2: of engineering process guys that this job begs for.
Speaker 3: So Brooke, is there a sense that Boeing can to
Speaker 3: lack of a better word, fix their weakness. Is their
Speaker 3: deficiencies in the manufacturing process within any reasonable amount of time?
Speaker 3: Or is this kind of a I don't know, a
Speaker 3: multi quarter, maybe multi year kind of thing. Do we
Speaker 3: have any sense as to the magnitude?
Speaker 4: I mean, I think it probably does take a while.
Speaker 4: I mean, and I just I always go back to
Speaker 4: gees an example, just because you know, it's a company
Speaker 4: close to my heart, but also there's a lot of
Speaker 4: similarities between these two companies and their cultures. Be given
Speaker 4: that a lot of former GE executives we're in the
Speaker 4: top ranks of management at GOING and I think, you know,
Speaker 4: to really drill down into every single detail of the
Speaker 4: manufacturing process, and to do it right does take time,
Speaker 4: and you need to completely rewire how you work and
Speaker 4: train the staff there. It's a cultural shift. You need
Speaker 4: to teach people to feel comfortable, to feel transparent about
Speaker 4: pointing out defects, you know, before you have a situation
Speaker 4: like a mid air blowout on Alaska Airlines, and that
Speaker 4: does take time. It's not just a switch that you
Speaker 4: can flip. It's not a switch that gets slipped just
Speaker 4: by the CEO stepping right when.
Speaker 2: You write your phone and page book on this book,
Speaker 2: I know the movie writes have already been sold. Did
Speaker 2: the pandemic cause this was there a pandemic breakdown as
Speaker 2: with other manufacturing companies because of the illness, people in,
Speaker 2: people out whatever. You've alluded to this before. Is there
Speaker 2: a big asterisk next to all this? It's not Calhoun's fault.
Speaker 2: It was a pandemic's fault.
Speaker 4: No. I mean, I think the pandemic is exacerbated things.
Speaker 4: But I mean the seven thirty seven Max crisis happened
Speaker 4: before the pandemic, and I think that, you know, if
Speaker 4: you want to talk about cultural issues that a bowling,
Speaker 4: you've got to go back, I mean almost to the
Speaker 4: late nineteen nineties and the merger with McDonald douglas. But
Speaker 4: also you know the Partnering for Success program where they
Speaker 4: squeezed margins out of their suppliers. And I mean, I
Speaker 4: think this is sort of a long running cultural issue
Speaker 4: at Boeing, But I do think, you know, COVID certainly
Speaker 4: took its toll, and probably more so on the supply
Speaker 4: chain who already had their profit margins squeeze to then
Speaker 4: have to go through the volatility of the pandemic and the.
Speaker 2: Lay Julie Johnson extra Chicago Tribune giving us great leadership
Speaker 2: out of Sicago here on aviation Brook Sutherland did Julie
Speaker 2: Johnson's heritage here? Did this company never make the leap
Speaker 2: from Seattle to Chicago?
Speaker 4: I think that, you know, it certainly didn't help to
Speaker 4: have management not be in the same vicinity as the
Speaker 4: manufacturing factory. And they since even moved the factory again
Speaker 4: to Arlington, Virginia, or so I moved the headquarters again
Speaker 4: to Arlington, Virginia, which is even further away from Seattle,
Speaker 4: which I don't think was the right message to send
Speaker 4: or the right mindset to have when you know your
Speaker 4: bread and butter is this Commercial Airplanes Division. That's that's
Speaker 4: having manufacturing.
Speaker 2: I think the brook Sutherland book here is up to
Speaker 2: five hundred pages. I mean, I'm here, we got We've
Speaker 2: got brooks got a schedule. We got to leave her now,
Speaker 2: brook Sutherland, thank you so much from Boston. Joining us
Speaker 2: today are in our true expertise on America's manufacturing process.
Speaker 2: One of the great truisms of Bloomberg Surveillance. Paul and
Speaker 2: I will steal from anyone we can, and we do
Speaker 2: that all the time. And right now with liz Anne Saunders,
Speaker 2: Chief Investment Strategies that Charles Schwab. It's an over our
Speaker 2: conversation one b rid Holts Berry Rid Holts Masters in
Speaker 2: Business with liz Anne Saunders, and all I got to say, folks,
Speaker 2: if you want to know where you need to be
Speaker 2: in the market, just trust me get incredible perspective that
Speaker 2: only Barry red Holts can bring to it. Miss Saunders
Speaker 2: and Liz aenne Berry had one question which I just
Speaker 2: thought was ALLEGI it was just brilliant tears on it.
Speaker 2: Oh my god, this is a question I would never ask.
Speaker 2: So I'm stealing from rid Holts Liz enne And it's
Speaker 2: simple you've been at Schwab forever. You and I saw
Speaker 2: what Schwab invented. He's older, he's moving on. But the
Speaker 2: answer Schwab continues with core values. What are those core
Speaker 2: values that have kept you at Schwab all these years?
Speaker 5: Well, we have it, as I guess, for lack of
Speaker 5: a better word, our tagline, but it's what we live
Speaker 5: breathe every day, which is through client size and having
Speaker 5: almost nine trillion dollars essentially all individual investors. What is
Speaker 5: important to them is quite different from what is important,
Speaker 5: say to an institutional community. So we always think of
Speaker 5: everything we do from the perspective of the individual investor.
Speaker 2: Did the individual investors show exuberance right now?
Speaker 5: A little bit yes, I'd say. The sentiment data more broadly,
Speaker 5: is I guess, on the frauthier end of the spectrum. Certainly,
Speaker 5: attitudinal measures of sentiment, maybe a little bit less so
Speaker 5: behavioral measures of sentiment. I think it's important to understand
Speaker 5: which indicators fall in which bucket, and it's almost necessity
Speaker 5: for it to be a contrarian indicator to see it
Speaker 5: in both categories, which were not quite seeing it in
Speaker 5: both of those. But it's on the frauthier end of
Speaker 5: the spectrum. The most important thing I would say, though,
Speaker 5: is sentiment, not that anything's a good market timing indicator.
Speaker 5: Sentiment is a terrible market timing indicator. We can get
Speaker 5: fraughthy sentiment and it can stay there for years, as
Speaker 5: we all learned in the late nineteen nineties. So it's
Speaker 5: more of a backdrop.
Speaker 3: Luzcyne. We had a bunch of central banks speaking and
Speaker 3: issuing announcements last week, and let's start with the Federal Reserve.
Speaker 3: Probably came out a little bit less hawkish. I guess
Speaker 3: this is a right way to frame it than maybe
Speaker 3: investors were discount of going into it. What did you
Speaker 3: take away?
Speaker 5: So it was definitely on the more dubbish end of
Speaker 5: the spectrum, particularly as it relates to the dots and
Speaker 5: the expectation heading into the meeting that we might see
Speaker 5: one of the three rate cuts come out of expectations
Speaker 5: per the dots. But I think what's more important is
Speaker 5: Powell continuing to push back on the notion that the
Speaker 5: dots represent some sort of policy path. They don't. They
Speaker 5: never have, and certainly in an environment where the FED
Speaker 5: is data dependent and not on any kind of preset. Course,
Speaker 5: if the data changes, I think their perspective and things
Speaker 5: like probabilities in terms of the FED fund's future market
Speaker 5: could change. So at that moment in time it was
Speaker 5: slightly more dubbish. But the combination of their dual mandates
Speaker 5: I think has to continue to behave or in the
Speaker 5: case of inflation, actually roll back over and start moving
Speaker 5: down again for rate cuts to start as soon as
Speaker 5: the June FOMAC meeting.
Speaker 3: So given that backdrop, litt lezande of you have you
Speaker 3: guys altered kind of your allocation here? Stocks, bonds, maybe alternatives?
Speaker 3: What's the Schwab call these days? Maybe how has it
Speaker 3: changed over the last several months.
Speaker 5: So we don't play the short term sort of tactical
Speaker 5: asset allocation game by saying, you know, abobveer blow low
Speaker 5: or percentages, because again, almost nine trillion dollars of client assets.
Speaker 5: What might be right for you know, some twenty five
Speaker 5: year old aggressive investor that inherited ten million dollars from
Speaker 5: the grandparents and doesn't need the money, versus say, a
Speaker 5: you know, seventy five year old who is retired and
Speaker 5: needs to earn income on an est egg that they
Speaker 5: can't afford to lose any component of so two different, entirely,
Speaker 5: two different messages there. What we have continued to do, though,
Speaker 5: is focus on factors, even a little bit more than sectors,
Speaker 5: and we still think you want to stay up in quality.
Speaker 5: A momentum has been a dominant factor. But what's interesting
Speaker 5: is that's more of a concept than a factor. Momentum
Speaker 5: says thank you. It just says these shocks that have
Speaker 5: been working, continue to work. What you can do though,
Speaker 5: because a lot of comparisons are being made to the
Speaker 5: late nineties, Uh oh, momentum as a factor is doing
Speaker 5: well right now, that's the same thing happened in the nineties.
Speaker 5: But the actual fundamental factor that was most highly correlated
Speaker 5: to momentum in the late nineties was negative earnings. The
Speaker 5: factor right now most positively correlated to momentum is are
Speaker 5: factors like high return on equity, strong free cash low
Speaker 5: and a negative correlation right now is negative earning. So
Speaker 5: momentum is just a concept. But you then have to
Speaker 5: look at what are the fundamentals of the types of
Speaker 5: stocks that continue to do well, And I think that's
Speaker 5: an important differentiation, But in essence, it's high quality. Other
Speaker 5: factors that are dominating in terms of momentum, and that
Speaker 5: is what we say you want to stick with right now,
Speaker 5: stay up in quality. This is not the time to
Speaker 5: go down the quality spectrum.
Speaker 2: What you just heard there, folks, as far as I'm concerned,
Speaker 2: is gospel. I don't even know where to go with this,
Speaker 2: this momentum stuff, Lezan. I'm aging listening to the certitude
Speaker 2: of young turks telling me momentum is a Steve Ross
Speaker 2: factor concept. You say quality matters. Are we going to
Speaker 2: get earnings to deliver Q one, Q two, Q three
Speaker 2: to develop that cash flow of quality.
Speaker 5: I think earnings estimates on a forward looking basis maybe
Speaker 5: have some legitimacy, but probably only out a quarter or two.
Speaker 5: What we've seen in this sort of pandemic era not
Speaker 5: as extreme as the case a couple of years ago,
Speaker 5: when you had a record percentage of companies that just
Speaker 5: withdrew guidens altogether. So estimates just became a total, you know,
Speaker 5: dart throw because companies were saying, we have no idea,
Speaker 5: We're not going to try to guide. I think a
Speaker 5: lot of companies are using the environment as an excuse
Speaker 5: not to go back to the kind of precise quarter
Speaker 5: league guidance. What that's left analysts to do is go
Speaker 5: into earning season, where lately they've been setting the bar
Speaker 5: too low, listening to what companies are saying, maybe make
Speaker 5: adjustments out a quarter or two, but then sort of leave,
Speaker 5: you know, three quarters, four quarters the following calendar year
Speaker 5: aside until they get more concrete information. So I think
Speaker 5: there's probably some validity to first half estimates. I'm not
Speaker 5: sure how much is based in reality on later out stimates.
Speaker 2: This is brilliant Lizzie in too short a visit, Thank
Speaker 2: you so much, Lizzie Sanders a Charles Schwab there on
Speaker 2: factors and maybe an overwrought comment on momentum, joining us
Speaker 2: now with leadership, on courage to stay in the market,
Speaker 2: and with an upgrade on his earnings in S and P.
Speaker 2: Call John Stulfus from Oppenheimer Today in the fearedom of
Speaker 2: two Octobers ago, the affeared moment of an October ago,
Speaker 2: John Stulfus, how did you not go to cash?
Speaker 6: Simple reason is Tom that when when we looked at things,
Speaker 6: we looked at the the overall friends, and we thought
Speaker 6: that the calls that were essentially a bearish pitch book
Speaker 6: were just not accurate. They were based on near term trading.
Speaker 6: When we saw what the situation was in terms of
Speaker 6: the corporate resilience, the the the consumers stance, and where
Speaker 6: FENN was being effectively very much sensitive to applying its
Speaker 6: mandate to inflation that was at untoward levels, we couldn't
Speaker 6: help but think we rather stay in the market rather
Speaker 6: than try to time the market. Recognizing the time in
Speaker 6: the market historically has shown to be a good way
Speaker 6: to get better returns over the intermediate to longer term.
Speaker 3: So the Bloomberg reporting of your call here this morning,
Speaker 3: John Oppenheimer Asset mentioned list s and P five hundred
Speaker 3: target to Wall Street high of fifty five hundred. What's
Speaker 3: driving that? Is that earning's driven?
Speaker 4: Is that?
Speaker 6: But it's certainly it's a mix of both that it
Speaker 6: certainly is earning's driven. If you consider third quarter and
Speaker 6: fourth quarter s and P five hundred earnings really surprised
Speaker 6: very nicely to the upside. In addition, if you look
Speaker 6: at a d P and you reflect on Fed policy,
Speaker 6: the Fed has been remarkable with eleven hikes and what
Speaker 6: is it six pauses or skips as they call them now,
Speaker 6: has not pushed the economy into a recession. And then
Speaker 6: beyond that, the fact that what we believe is that
Speaker 6: it's interesting. You just had George ball on and you
Speaker 6: all spoke about investors and retirement and things like that.
Speaker 6: At one point, it's it's today two generations and more
Speaker 6: than that, the younger ones that follow the millennials, with
Speaker 6: the millennials and the boomers recognize the fact that social
Speaker 6: security is likely not to be what it once was
Speaker 6: as a core to retirement for prior generations over the decades,
Speaker 6: and in addition to that, the recognition that they will
Speaker 6: likely live longer, and so whether preparing for retirement or retirement,
Speaker 6: there's a need for equities. Equities historically, again, you know,
Speaker 6: with past performance no guarantee of future results, as we
Speaker 6: always say, but equities tend to be a better place
Speaker 6: for intermediate to long term investing and diversification in Paul's
Speaker 6: and our view.
Speaker 2: I mean, Paul's living this representative John, you and I
Speaker 2: have to work every day. Sweeney could have retired fourteen
Speaker 2: years ago. But the bottom line here, Paul Sweeney is
Speaker 2: when was the last time bonds made a return?
Speaker 6: Yeah?
Speaker 2: And I mean I'm talking you're back five years, seven
Speaker 2: years or whatever.
Speaker 3: That I mean. John, It's interesting. It's you know, Thomas
Speaker 3: is mentioning you think about the fixed income space just
Speaker 3: got crushed in twenty twenty two, and thanks to miraculous
Speaker 3: November December, they eked out some games last year. But
Speaker 3: in the equity markets, I guess the question for a
Speaker 3: lot of folks is where do I go here? Do
Speaker 3: I follow the Magnificent seven or five or whatever they
Speaker 3: are today, or do I try to find some value
Speaker 3: in other parts of the market. Where are you at
Speaker 3: this part of the stage?
Speaker 6: Great question, Paul. We think you have to mix and match,
Speaker 6: which really means diversification, and by that we mean we
Speaker 6: emphasize cyclicals over defensives, but still want some defensive in
Speaker 6: there for the higher yielding dividends. Growthier value for companies
Speaker 6: that grow their dividends and still want growth because the
Speaker 6: innovation points to the very clear fact that much more
Speaker 6: sophisticated technology that we have today versus where the where
Speaker 6: we were when the tech bubble happened, And being forty
Speaker 6: years of this business, I can well remember the tech bubble,
Speaker 6: which is not that long ago. This is an environment
Speaker 6: where technology keeps morphing, and it can very well help
Speaker 6: all the sectors, including both itself technology and communication services,
Speaker 6: which is over fifty percent about sixty to seventy percent technology,
Speaker 6: but all the others help companies become more efficient, help
Speaker 6: consumers be more efficient in the relationship business as well
Speaker 6: as each other.
Speaker 2: I mean the question here in a broader question, folks,
Speaker 2: and I'm showing my age. We're talking to. George Ball
Speaker 2: was iconic, and so is John st John Stulfus was
Speaker 2: in Tykondergus Securities. I remember that the romance Securities. And
Speaker 2: what I really remember John Stulfis is a guy named
Speaker 2: Myron Pico who was at OpCo and literally taught me
Speaker 2: individual line item for accounting statements securities analysis. I mean,
Speaker 2: Myron like own the high ground. Can we get as
Speaker 2: I said to mister Ball, can we get back to
Speaker 2: where people actually are riveted by individual security ownership? Or
Speaker 2: is that just the time gone by?
Speaker 6: I think? I think, if anything, ironically, et apps bring
Speaker 6: them back to the thought of the need for diversification
Speaker 6: and approach. We like alpha beta for example, so alpha
Speaker 6: would be individual security selection or individual stock selection. Looking
Speaker 6: for alpha piics in combination with a strategically allocated and
Speaker 6: tactically weighted ETFs that track passive indices, and that way,
Speaker 6: if you're in the right church but in the wrong pew,
Speaker 6: you're okay. Or if you're in the wrong church but
Speaker 6: at the right pew, you can also be okay. It
Speaker 6: gives you more opportunity, we think via diversification of approach
Speaker 6: to the markets, and we think people want to be
Speaker 6: that thoughtful, and we think the financial media calls for
Speaker 6: that many ways because most of the day spent highlighting
Speaker 6: individual stocks and not ETFs. But the benchmarks are looked
Speaker 6: at certain for certain but alpha beta. We think you
Speaker 6: don't have to be a kid to have to know
Speaker 6: your alphabet.
Speaker 2: What would like to say from five thousand to fifty
Speaker 2: two hundred, John Sulphus lifting up here on earnings, and
Speaker 2: you wonder where he'll be six months out or eight
Speaker 2: months out. John Stulfus, folks, I'm just simple as I can.
Speaker 2: I said, this is Gina Martin Adams. You got to
Speaker 2: be in the market. You can't time it, you can't
Speaker 2: go to cash, You'll never make it. I've lived it.
Speaker 2: John Stulphus, with a courage to be in the market.
Speaker 2: He is with OpCo.
Speaker 3: You're doing a look at.
Speaker 2: The front pages around the world at LISTA.
Speaker 3: I missed this.
Speaker 2: I was reading I was reading Lemonne as Jitan in
Speaker 2: a beret.
Speaker 1: I'm in a cafe.
Speaker 2: Okay, I'm reading Lamant English. I'm sorry, I'm not reading
Speaker 2: Laman French. And I'm thinking all the newspapers were to
Speaker 2: have out of France. What do you got today?
Speaker 7: All right, this is the big debate in the housing
Speaker 7: market because you remember the National Association of Realtors that
Speaker 7: class action settlement. Well you had President Biden who said
Speaker 7: the deal could save home buyers sellers as much as
Speaker 7: ten thousand dollars. But experts are saying that the true
Speaker 7: benefits they're really not clear, especially those first.
Speaker 1: Time buyers who need help the most.
Speaker 7: So this is that back and forth kind of a
Speaker 7: discussion being going on right now.
Speaker 2: It was amazing, Paul to see the government support of
Speaker 2: housing in France versus the mess we have here. All
Speaker 2: the houses look the same. I mean, it's scary, how
Speaker 2: it's just you know, there's one contractor one look, miles
Speaker 2: of mos took to train up to Rue. The whole
Speaker 2: thing is build out houses supported by the government. They
Speaker 2: do it exactly opposite of the chaos we have.
Speaker 3: But then okay, so we are going to get some savings,
Speaker 3: but we're just not sure how much it went.
Speaker 1: That's the thing.
Speaker 7: Yeah, because they're saying, oh, it could be up to
Speaker 7: ten thousand dollars, but experts saying, you know what, no, nope, nope,
Speaker 7: they're saying the NAAR actually says real estate agent commissions
Speaker 7: are driven by the market and are not the cause
Speaker 7: of the affordability crisis. So that's like kind of the
Speaker 7: back and forth there. All right, So we also have
Speaker 7: the AI boom, right, everybody's talking about AI, but there
Speaker 7: is a Caribbean.
Speaker 1: Island who is making millions of dollars.
Speaker 7: This is an unlikely fig Yes, okay, so and Guilla
Speaker 7: or I say and Gie, yeah, I'm not sure how
Speaker 7: the correct way to spend and Gwilla there you go.
Speaker 7: British Okay, yes, the British territory just to the east
Speaker 7: of Puerto Rico.
Speaker 1: That's where it is.
Speaker 7: So it collects a fee from every registration for Internet
Speaker 7: addresses that end in dot ai, which is the domain
Speaker 7: name that's assigned to the.
Speaker 1: Island, so you get it. So you have all these companies.
Speaker 7: Who want these, you know, domain names to show that
Speaker 7: they're on the forefront of AI.
Speaker 1: So they want the dot AI. So how much are
Speaker 1: they getting?
Speaker 7: So each registration and Guilla's government gets anywhere from one
Speaker 7: hundred and forty dollars two thousands of dollars from website
Speaker 7: names that are sold over at auctions. Last year, the
Speaker 7: government made about thirty two million dollars from those fees.
Speaker 1: That's more than ten percent of their gross domestic.
Speaker 7: Product just for being the dot AI. So you see
Speaker 7: kind of the need and how people are asking for
Speaker 7: it and they want to be.
Speaker 1: Associated with it.
Speaker 7: Next, all right, Jack Daniels, people are not drinking enough
Speaker 7: of it, and that's the problem. So demand actually for
Speaker 7: Jack Daniels Old number seven has been falling for months.
Speaker 7: The company behind it, Brown Forman, they're forecasting sluggish US
Speaker 7: whiskey business for at least the next year. Yeah, well
Speaker 7: here's a reason why tough comes.
Speaker 1: Yeah, yeah, exactly.
Speaker 7: So drinkers liked it during the pandemic. They saying the
Speaker 7: party is over. They're saying people are kind of cutting
Speaker 7: back on alcohol.
Speaker 1: Maybe they're getting a.
Speaker 7: Little bit healthier. They're switching to marijuana instead of drinking heavily.
Speaker 1: That's another thing.
Speaker 7: They're spending less time at home. They're going out a
Speaker 7: little bit more, but they're spending less, so they want
Speaker 7: the cheaper canned cocktails, maybe some tequila instead of.
Speaker 1: And in your white cloth clauses.
Speaker 2: And I go into the store and it's it's a wall.
Speaker 2: Like if the wall fell over, people would die white, the.
Speaker 7: White claws, the high noons, thees. Yeah, you don't get
Speaker 7: the same buzz effect, but it tastes good.
Speaker 2: Okay, okay.
Speaker 1: And finally, this is honor of you, Tom coming back
Speaker 1: from Paris. You missed it. On Sunday, there was a
Speaker 1: race there.
Speaker 7: It was a race that hasn't happened in over a decade,
Speaker 7: but it's it's when the waiters get out. There was
Speaker 7: about two hundred many women and they race for about
Speaker 7: a mile holding trays of croissants and coffee and water
Speaker 7: and they race around. They were short on the budget,
Speaker 7: but they decided to bring it back because the Paris
Speaker 7: Olympics is coming and they want to kind of promote
Speaker 7: everything going out there with the cafes and promote everyone
Speaker 7: to come out. So that's why they brought it back.
Speaker 2: It's really interesting it is a Paris bubble. It is
Speaker 2: a tourist outpost and the restaurants are packed. Yep, they're
Speaker 2: very different on a salary structure that you get the
Speaker 2: whole feeling everybody's making a legitimate living on, like the struggle,
Speaker 2: you know, to make it in New York City.
Speaker 3: But they but they you can see signs are gearing
Speaker 3: up for the Olympics.
Speaker 2: Oh huge, huge, and you know it's all getting spriced up.
Speaker 2: And I have to say it is hugely emotional still
Speaker 2: to see the cathedral of Notre down. Oh yeah, are
Speaker 2: we We're racing to get it done and I have
Speaker 2: no idea where it is, but they really have made
Speaker 2: some headways. Oh no, no. We were actually going to
Speaker 2: go to the service on Sunday and there's no services still,
Speaker 2: but they're clearly. I can't believe they're going to get
Speaker 2: there by the summer, but maybe they'll get part of
Speaker 2: it open. But you know it Actually Ben smith Ever
Speaker 2: of France did a wonderful interview I want listened to
Speaker 2: over the weekend and he says they completely guessed wrong
Speaker 2: on tourism. It is fully back and fully past twenty nineteen.
Speaker 2: Love us and it's great and can we just have
Speaker 2: the train service they have? That's all I want. I
Speaker 2: just want the trains of France, don't I don't want
Speaker 2: the Red Sox to win, you know whatever, Just give
Speaker 2: me this anything else?
Speaker 7: That is it? That was one? Well do you like
Speaker 7: in the NC double a NC double A?
Speaker 1: I don't know. See, my husband is a big North
Speaker 1: Carolina fans.
Speaker 7: Sorry, you're the big Michael Jordan fan.
Speaker 1: So that's the reason why.
Speaker 7: So our household is big that I was pushing for Connecticut.
Speaker 7: I mean, hey, do we know who the Rock likes?
Speaker 1: We don't.
Speaker 2: Okay, let's find that out. Lisa Mateo with the newspapers today.
Speaker 2: You know, I get the Rock. Miami's not in this.
Speaker 2: That's what they're rock. Now. This is the Bloomberg Surveillance Podcast,
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