WEBVTT - Samsung to Make Tesla AI Chips in Multiyear Texas Deal 

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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<v Speaker 2>Let's cross over to tech to Tesla. Samsung Electronics will

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<v Speaker 2>produce AI semiconductors for Tesla in a new sixteen point

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<v Speaker 2>five billion dollar pack that marks a wind for its

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<v Speaker 2>underperforming foundry division. What does this mean for our friends

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<v Speaker 2>at Tesla? Craig Trudell joins us Bloomberg Global Autos Editor Here,

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<v Speaker 2>Craig talk to us.

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<v Speaker 3>Are what Tesla's.

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<v Speaker 2>Trying to do here with this big deal with Samsung?

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<v Speaker 4>Yeah, so this this is a deal for a next

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<v Speaker 4>generation AI chip for Tesla. So Samsung is an existing

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<v Speaker 4>supplier of these uh, you know, high powered semiconductors that

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<v Speaker 4>are used for it's driving systems that it markets as

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<v Speaker 4>full self driving and autopilot. Uh And and contrary to

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<v Speaker 4>those names that you know, you cannot buy a Tesla

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<v Speaker 4>today and have it drive itself for you. You still

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<v Speaker 4>need to pay attention and keep your hands on the

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<v Speaker 4>wheel and eyes on the road. But uh, it is

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<v Speaker 4>the case that those systems are are becoming more more

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<v Speaker 4>capable and that Tesla is trying to kind of press

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<v Speaker 4>the issue with them to the point where uh, you know,

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<v Speaker 4>they're they're taking people out of out of the driver's

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<v Speaker 4>seat and and having uh you know, supervisors in the

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<v Speaker 4>in the passenger seat of cars in Austin, Texas, and

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<v Speaker 4>and trying to to take that elsewhere as well. Uh.

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<v Speaker 4>This this will be interestingly. Musk announced overnight that they

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<v Speaker 4>will be going to a T S M C chip

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<v Speaker 4>for for the next generation of of semis that they

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<v Speaker 4>use and then go to Samsung, relying on on supply

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<v Speaker 4>from from this plant in Texas that that Samsung is

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<v Speaker 4>boys to to open, uh in the near future.

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<v Speaker 5>And what near future? How how long does it take

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<v Speaker 5>to build a fab plant?

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<v Speaker 3>The cool kids say fab right.

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<v Speaker 4>Yeah, that's right. Yeah, I mean, I think you know

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<v Speaker 4>the the this is a project on Samsung's part that's

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<v Speaker 4>been in the worst for some time, right and and

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<v Speaker 4>so uh they they you know, were sort of moved

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<v Speaker 4>actually by the Chips Act under the Biden administration, and

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<v Speaker 4>Trump uh was was critical of of the Chips Act.

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<v Speaker 4>You know, on the on the campaign trail. And yet

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<v Speaker 4>we've seen uh sort of a continuation and somewhat of

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<v Speaker 4>an embrace of it, uh, you know, as we we've

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<v Speaker 4>seen a change in the White House. Uh in terms

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<v Speaker 4>of the exact timing of when exactly this new AI

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<v Speaker 4>chip uh you know, will will be coming out of

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<v Speaker 4>that Texas factory. It's it's not yet clear from from

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<v Speaker 4>Musk's posting on an X, and the companies have not

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<v Speaker 4>said much because you know, they of course agreed to

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<v Speaker 4>you know, some some privacy here that Musk proceeded to

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<v Speaker 4>to sort of loosen up on, you know, at least

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<v Speaker 4>over social media.

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<v Speaker 2>Craig, do we know at this stage to what extent

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<v Speaker 2>Elon Musk is engaged in the day to day the

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<v Speaker 2>strategic of Tesla analogy stepped back from his doze responsibilities.

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<v Speaker 4>I mean, I think you can you can glean so

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<v Speaker 4>much from his his you know, activity on X as

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<v Speaker 4>to what he's paying attention to. And it absolutely is

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<v Speaker 4>the case that we're seeing him him posting more about

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<v Speaker 4>things like this deal with Samsung, and I do think

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<v Speaker 4>that that's helpful sort of for for sentiment around Tesla.

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<v Speaker 4>And yet I would say too that you know, if

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<v Speaker 4>if there was a sort of you know, scorecard, sort

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<v Speaker 4>of an informal scorecard that you'd be keeping track of

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<v Speaker 4>where he's sort of devoting most of his time and

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<v Speaker 4>attention to. I would say it's as much or more

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<v Speaker 4>on XAI and just ai in general than it is

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<v Speaker 4>on Tesla specifically. You know, you heard from him a

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<v Speaker 4>few months ago that he would really be turning his

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<v Speaker 4>attention back to Tesla, uh, you know, as he was

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<v Speaker 4>making his way out of the White House. But I think,

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<v Speaker 4>you know, the amount of attention and emphasis he's put

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<v Speaker 4>on trying to catch up to the likes of open

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<v Speaker 4>AI and Google in our artificial intelligence and l MS

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<v Speaker 4>is you know, definitely exceeds, you know, the amount of

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<v Speaker 4>of you know, noise we're hearing from him about the

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<v Speaker 4>day to day interworkings of of Tesla.

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<v Speaker 2>All right, excellent, Craig, thanks so much for joining us.

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<v Speaker 2>Appreciate your reporting there. Craig Tudell, Global autos editor for

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<v Speaker 2>Bloomberg News, joining us from our London h Q. Samsung

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<v Speaker 2>to make Tesla chips in multi year Texas deals.

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<v Speaker 3>And Elon is going to actually walk walk the floor.

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<v Speaker 2>He used to sleep at the in the Tesla plans

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<v Speaker 2>back in the day.

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<v Speaker 1>You're listening to the Bloomberg and Halogen's podcast. Catch us

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<v Speaker 1>live weekdays at ten am Eastern on Apple Coarclay and

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<v Speaker 2>Stop a beer, John, I mean, oh, Audrey got a

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<v Speaker 2>perfect day for it, Audrick Heine can.

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<v Speaker 3>You put it from yes?

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<v Speaker 2>Especially with the heat today, Heinegen beer sales fall as

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<v Speaker 2>price dispute took longer to fit. What's going on with

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<v Speaker 2>our friends at Heinegill.

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<v Speaker 6>Let's go to the.

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<v Speaker 2>Go to a guy there. Duncan Fox, senior consumer staples

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<v Speaker 2>analysts for Bloomberg Intelligence, is based over there in our

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<v Speaker 2>London office, Queen Victoria Street, right in the center of

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<v Speaker 2>the city of London. Dont you talk to us about Heinegen?

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<v Speaker 2>What's going on there?

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<v Speaker 6>Well, essentially European retailers decided not delayed pushing the prices

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<v Speaker 6>up after I suppose last year wasn't particularly big on

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<v Speaker 6>pricing and the that's three percent of the local Heinegen brown,

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<v Speaker 6>but the previous two years when inflation was raging, you know,

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<v Speaker 6>they did get fourteen and ten percent respectively in in

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<v Speaker 6>twenty two and twenty three. Costs of goods are not

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<v Speaker 6>really going up, so I think the retailer is just

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<v Speaker 6>pushed back and it took them longer to push out

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<v Speaker 6>to get a small price through in Europe and that's

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<v Speaker 6>just hit them. So it's about fifty percent of the

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<v Speaker 6>overall business.

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<v Speaker 5>Is what is a Heineken class in the pub?

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<v Speaker 6>Well, if you're in London, a heck of a lot.

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<v Speaker 6>It's probably st eight pounds plus I can be about ten,

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<v Speaker 6>which they are either the Dorset you'd be lucky to get,

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<v Speaker 6>you know, sort of around five to six pound. But nevertheless,

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<v Speaker 6>you know, when you're pushing the price up the premium

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<v Speaker 6>Heinegen brand, which is probably twenty percent more expensive than

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<v Speaker 6>any other sort of mainstream beer that they've got on

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<v Speaker 6>their portfolio, you can see why the volumes struggled in

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<v Speaker 6>the short.

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<v Speaker 7>Term given cost of living crisis.

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<v Speaker 6>So it's something they will resolve and hope they have

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<v Speaker 6>revolved in fact on the pricing, so one would hope

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<v Speaker 6>it would get better as we go to half with

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<v Speaker 6>That's a one that we've found in Europe.

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<v Speaker 2>So we had I guess the announcement of a trade

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<v Speaker 2>deal between the US and the EU. I don't think

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<v Speaker 2>what's it mean for the spirit's business, the beer business,

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<v Speaker 2>the wine business.

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<v Speaker 6>Asking for a friend, I hope you've already stocked up

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<v Speaker 6>that fifteen percent is probably is probably a good outcome

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<v Speaker 6>given some of the rumors that were going around from

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<v Speaker 6>April on was that he could have gone up to

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<v Speaker 6>two hundred percent. But obviously the cost of beer coming

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<v Speaker 6>in for someone like Harneck, and they basically ship in

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<v Speaker 6>from either Holland or Mexico. Some of the Mexican beer

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<v Speaker 6>may well be tariff free on the US NCA agreement,

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<v Speaker 6>but then you've got the out sort of the cans,

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<v Speaker 6>So lord knows how much that will push the price up.

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<v Speaker 6>But yeah, they'll just have to push prices up on

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<v Speaker 6>beer and spirits. Spirits at fifteen percent, probably say it's

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<v Speaker 6>not huge, but it'll mean pushing price is up three

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<v Speaker 6>four percent something of that order on top of what

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<v Speaker 6>they would normally try and get. So it's it's not

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<v Speaker 6>going to be easy to do, but it's not as

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<v Speaker 6>disastrous as thirty percent or something like that, which Renby

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<v Speaker 6>said last week would take profit slaand for thirty five

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<v Speaker 6>million euros, so a little bit better than expected or feared,

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<v Speaker 6>but it's still not going to be great and.

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<v Speaker 7>US wine there really isn't anybody that.

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<v Speaker 6>Exports wine that's quoted, so it's a bit difficult to

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<v Speaker 6>say all the impact is. But it will certainly make

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<v Speaker 6>it more expensive compared to your good, US great varieties

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<v Speaker 6>at car on the market. So I would have thought

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<v Speaker 6>you'll see people switch to US lines.

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<v Speaker 5>I find that's kind of disturbing. This part of the

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<v Speaker 5>story where you quote the CEO of Heineken beer markets

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<v Speaker 5>have declined that it pays Heineken has rarely seen any

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<v Speaker 5>time before. Is this the end of humanity as we

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<v Speaker 5>know it?

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<v Speaker 6>Well, if it carries only I think there was. There's

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<v Speaker 6>stories that, you know, the gen Z's have given up

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<v Speaker 6>and drink. I think that's that's wildly wrong. But there's

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<v Speaker 6>certainly people are abstaining during the week a little bit.

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<v Speaker 6>But the real problem is that people are drinking more

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<v Speaker 6>at home rather than going to the pub, and that's

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<v Speaker 6>sort of change. That's the big change from COVID. So

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<v Speaker 6>you've got to make sure you get your pricing at

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<v Speaker 6>retailers right. Goes back to your original question because people

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<v Speaker 6>that know it's sort of more like eighty percent drinking

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<v Speaker 6>at home in the US, it's anywhere between sort of

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<v Speaker 6>fifty and twenty percent, depends on where you're on the world,

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<v Speaker 6>but a lot more people drinking home and going to

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<v Speaker 6>POGs and clubs. So the mix is poor really or

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<v Speaker 6>has been, and it needs the good summer would help

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<v Speaker 6>and in these people to have a bit more money

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<v Speaker 6>in their pocket as well, so maybe feeling a little

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<v Speaker 6>bit more confident that they can go out and spend

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<v Speaker 6>with their friends rather than buying it cheap from and

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<v Speaker 6>entertaining at home.

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<v Speaker 2>Doncan are you one of this is a national phenomenon

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<v Speaker 2>because it's a phenomenon on the Jersey Shore, which is

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<v Speaker 2>people are drinking like these iced tea vodka things, the

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<v Speaker 2>white Claws, all this stuff that's not beer.

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<v Speaker 6>Are you seeing that?

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<v Speaker 2>Is that a trend around the world.

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<v Speaker 3>He hasn't been at my beach, by the way.

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<v Speaker 7>Unfortunately, it seems to be that is a trend.

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<v Speaker 6>You get a lot of ready to drinking being pushed

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<v Speaker 6>and they big for sort of twelve eighteen months, and

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<v Speaker 6>it does tend to go against the beer volume more

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<v Speaker 6>than anything else. Spirit companies are doing it with no

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<v Speaker 6>spirits now, and they're also pushing you in bigen and

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<v Speaker 6>tyic already to drink gin and time and stuff like that.

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<v Speaker 6>So there's just a lot more choice to the consumer

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<v Speaker 6>than there was, you know, when I was a kid,

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<v Speaker 6>So it just takes a little bit of a shine off.

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<v Speaker 6>You can try new things, and I'd say people are

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<v Speaker 6>spending more. I'm spending a similar amount on artcult just

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<v Speaker 6>buying less of it in terms of volume. So it's

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<v Speaker 6>all about getting the value right. Premium brands are doing

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<v Speaker 6>well in Premium brand did very well in these results,

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<v Speaker 6>but it's only twenty four percent of their overall volume,

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<v Speaker 6>so you know, four point five percent on twenty four

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<v Speaker 6>percent doesn't sort of help.

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<v Speaker 5>Any chance Heinniken is going to build a brewery of

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<v Speaker 5>factory in the United States. I mean, I don't know

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<v Speaker 5>if it would be the same.

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<v Speaker 7>I would say it's unlikely.

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<v Speaker 6>It's that's a big commitment, and you've got to make

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<v Speaker 6>sure that the volume growth will be there because otherwise

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<v Speaker 6>you're you're spending quite a lot of cap over the

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<v Speaker 6>next two years. If you had a site ready today,

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<v Speaker 6>and then you've got to make sure that you have

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<v Speaker 6>enough falling through. But for that, for that to make

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<v Speaker 6>money for you and be better than shipping it in.

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<v Speaker 6>Even with the tariffs. At this moment, it doesn't seem

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<v Speaker 6>that they're likely to build a brewery in the US.

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<v Speaker 6>But if tarists are higher, suspective would be a challenge.

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<v Speaker 6>But I mean, they're building a big one in Mexico

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<v Speaker 6>and I suspect a ship.

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<v Speaker 3>Yeah.

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<v Speaker 2>Man, all right, Donki, thanks so much for joining us.

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<v Speaker 2>Duncan Fox senior Consumer Staples analys fro Bloomberg Intelligencies over

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<v Speaker 2>there in London, and they shut down the Bud brewery

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<v Speaker 2>in Newark right by Newark Airport.

0:12:17.120 --> 0:12:17.520
<v Speaker 3>Did they?

0:12:17.600 --> 0:12:21.520
<v Speaker 2>I think so? I think that I don't know as

0:12:21.520 --> 0:12:23.480
<v Speaker 2>a bush brewery right across the I didn't never hear

0:12:23.520 --> 0:12:26.640
<v Speaker 2>about that. Yeah, I think that's a thing here, Yeah,

0:12:26.760 --> 0:12:28.160
<v Speaker 2>Field Chip exactly.

0:12:28.200 --> 0:12:30.320
<v Speaker 3>To do some investigative reporting. Exactly.

0:12:32.200 --> 0:12:35.880
<v Speaker 1>You're listening to the Bloomberg Intelligence Podcast. Catch us live

0:12:35.960 --> 0:12:39.079
<v Speaker 1>weekdays at ten am Eastern on Apple, Coarcklay and Android

0:12:39.080 --> 0:12:42.360
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0:12:42.440 --> 0:12:45.840
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0:12:45.880 --> 0:12:47.520
<v Speaker 2>All Right, we got John Tucker, Paul Swing you live here,

0:12:47.559 --> 0:12:51.480
<v Speaker 2>in our Bloomberg Interactive Brokers studio, and we are also

0:12:51.640 --> 0:12:54.360
<v Speaker 2>doing that internet thing. We're on YouTube's ahead over to

0:12:54.440 --> 0:12:57.560
<v Speaker 2>YouTube dot com and search a Bloomberg Live radio and

0:12:57.559 --> 0:13:01.280
<v Speaker 2>that's where you'll find us Terras Europe. I guess we

0:13:01.320 --> 0:13:02.920
<v Speaker 2>got a deal in John, so.

0:13:02.880 --> 0:13:06.080
<v Speaker 5>We have a deal, but I'm still begging for some

0:13:06.240 --> 0:13:10.160
<v Speaker 5>more details, especially when it comes to pharmaceuticals and autos.

0:13:10.400 --> 0:13:13.560
<v Speaker 2>True, and with all these deals I'm expecting, don't you

0:13:13.559 --> 0:13:15.760
<v Speaker 2>have to negotiate these for like a year or two

0:13:15.800 --> 0:13:18.480
<v Speaker 2>and there's like ten thousand pages agreement or it's this

0:13:18.640 --> 0:13:20.400
<v Speaker 2>just like a one page term sheet we kind of

0:13:20.400 --> 0:13:21.800
<v Speaker 2>put across the table and somebody.

0:13:21.679 --> 0:13:22.880
<v Speaker 3>Initial is it. We're good to go.

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<v Speaker 7>I don't know.

0:13:24.040 --> 0:13:25.960
<v Speaker 5>Somebody's got answers.

0:13:26.600 --> 0:13:29.040
<v Speaker 3>Let's go to Brendan Marry. You might Brenda Marry.

0:13:28.800 --> 0:13:32.320
<v Speaker 2>He's a Bloomberg God. Big take story today entitled Trump

0:13:32.360 --> 0:13:36.000
<v Speaker 2>tariffs are already stunting world growth, but the markets are

0:13:36.040 --> 0:13:39.160
<v Speaker 2>shrugging here, So let's get to it. Hey, Brendan again,

0:13:39.200 --> 0:13:43.880
<v Speaker 2>another big trade deal announcement today with the European Union.

0:13:44.360 --> 0:13:45.800
<v Speaker 2>They're coming fast and furious.

0:13:46.280 --> 0:13:48.000
<v Speaker 7>You know. I guess if you're looking at the.

0:13:47.920 --> 0:13:50.360
<v Speaker 2>Economic data, I'm not sure we've seen any slowdown in

0:13:50.360 --> 0:13:53.080
<v Speaker 2>the economy. I'm not sure i've seen any pickup inflation,

0:13:53.120 --> 0:13:55.319
<v Speaker 2>which were two of the concerns for a lot of

0:13:55.320 --> 0:13:56.000
<v Speaker 2>people out there.

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<v Speaker 3>What is your reporting show?

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<v Speaker 8>Yeah, our reporting shows that when you look at what

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<v Speaker 8>companies are saying their capital investment plans are and what

0:14:05.559 --> 0:14:08.800
<v Speaker 8>they're saying about how they're going to try to absorb

0:14:08.840 --> 0:14:12.360
<v Speaker 8>these costs, whether those are in margins or passing those

0:14:12.400 --> 0:14:16.320
<v Speaker 8>costs on the consumers, that these tariffs are starting to

0:14:16.360 --> 0:14:19.120
<v Speaker 8>take a bite. They're not happening all of a sudden.

0:14:19.280 --> 0:14:22.560
<v Speaker 8>It's this kind of slow grind on the economy that

0:14:22.600 --> 0:14:25.080
<v Speaker 8>we're seeing, and you can see it in some of

0:14:25.120 --> 0:14:29.040
<v Speaker 8>the in some of the of the surveys that the

0:14:29.080 --> 0:14:33.720
<v Speaker 8>government or private surveys that are that are are reported.

0:14:33.840 --> 0:14:37.800
<v Speaker 8>So the lesson here is that you don't just flip

0:14:37.840 --> 0:14:42.840
<v Speaker 8>a switch and get inflation overnight. It's a slow, slow

0:14:42.920 --> 0:14:46.880
<v Speaker 8>moving process. And the deals that are coming in from

0:14:46.920 --> 0:14:50.320
<v Speaker 8>President Trump, the markets are celebrating because they're not the

0:14:50.320 --> 0:14:54.800
<v Speaker 8>worst case scenario, but it still makes goods. The EU deal,

0:14:55.680 --> 0:15:00.960
<v Speaker 8>let's say, makes European exports to the US fifteen percent

0:15:01.040 --> 0:15:04.200
<v Speaker 8>more expensive, So that's just the bottom line. And that's

0:15:04.960 --> 0:15:08.720
<v Speaker 8>that's an economic head win in any economist book.

0:15:09.000 --> 0:15:13.040
<v Speaker 5>Hey, Brendan, when we hear Secretary Lutnik speak, for instance,

0:15:13.240 --> 0:15:16.600
<v Speaker 5>he'll be saying something like, China is going to pay

0:15:16.840 --> 0:15:20.520
<v Speaker 5>so and so is going to pay settle this for

0:15:20.640 --> 0:15:24.320
<v Speaker 5>us for people don't follow us too closely. They're not paying.

0:15:24.560 --> 0:15:26.600
<v Speaker 5>It's the consumer. It's a tax, is it not.

0:15:28.320 --> 0:15:31.000
<v Speaker 3>The American importers pay tariffs.

0:15:31.320 --> 0:15:36.440
<v Speaker 8>They pay these taxes to the Customs to Bureau. And

0:15:36.520 --> 0:15:40.960
<v Speaker 8>so now those importers could go to the exporter in

0:15:41.080 --> 0:15:44.360
<v Speaker 8>China or the European Union or wherever and say, hey,

0:15:44.520 --> 0:15:47.920
<v Speaker 8>this is costing me an extra fifteen percent, can you

0:15:48.000 --> 0:15:52.400
<v Speaker 8>lower your price? That happens in some cases most of

0:15:52.440 --> 0:15:55.960
<v Speaker 8>the time the profits of that company take a hit.

0:15:56.480 --> 0:15:58.960
<v Speaker 8>They or they pass it on and or they pass

0:15:59.000 --> 0:16:01.320
<v Speaker 8>it on to consumers. But the bottom line is they've

0:16:01.320 --> 0:16:04.520
<v Speaker 8>got less to invest in, they've got less money to

0:16:04.600 --> 0:16:08.080
<v Speaker 8>hire people. So this is this is what our reporting

0:16:08.120 --> 0:16:11.400
<v Speaker 8>shows today in the Bloomberg big take is that we

0:16:11.520 --> 0:16:15.160
<v Speaker 8>are starting to see that slow grind on the economy

0:16:15.200 --> 0:16:18.720
<v Speaker 8>that tariffs have, that that economists would warn you about,

0:16:19.000 --> 0:16:22.960
<v Speaker 8>that are happening now that the Trump administration would argue, look,

0:16:23.000 --> 0:16:26.360
<v Speaker 8>this is going to incentivize companies to produce more in

0:16:26.400 --> 0:16:29.480
<v Speaker 8>the United States, and some of that may actually happen,

0:16:29.840 --> 0:16:31.880
<v Speaker 8>so we shouldn't discount that completely.

0:16:32.320 --> 0:16:35.920
<v Speaker 3>But the tariffs hurt well.

0:16:35.720 --> 0:16:40.760
<v Speaker 8>More a lot more companies and consumers than they do help.

0:16:40.880 --> 0:16:43.400
<v Speaker 8>Look at the steel Look at steel tariffs. We've seen

0:16:43.440 --> 0:16:46.440
<v Speaker 8>an increase in domestic steel prices. There are a lot

0:16:46.480 --> 0:16:51.960
<v Speaker 8>more companies and employees of those companies that use steel

0:16:52.120 --> 0:16:54.960
<v Speaker 8>then make steel, and they are paying that they are

0:16:55.000 --> 0:16:55.880
<v Speaker 8>paying the price for it.

0:16:56.840 --> 0:17:01.200
<v Speaker 2>So where will we see it, you know, Craig, I

0:17:01.200 --> 0:17:03.720
<v Speaker 2>mean are we seeing Will we see it in GDP numbers?

0:17:03.760 --> 0:17:06.400
<v Speaker 2>Will we see it in headline inflation numbers? And if

0:17:06.440 --> 0:17:09.879
<v Speaker 2>we do see it when, when do you think we

0:17:09.920 --> 0:17:11.560
<v Speaker 2>will see it in the hard numbers?

0:17:11.560 --> 0:17:11.639
<v Speaker 8>Is?

0:17:11.720 --> 0:17:13.160
<v Speaker 2>I know economists like to talk.

0:17:13.000 --> 0:17:17.480
<v Speaker 8>About so the investment figures. We're going to watch this

0:17:17.520 --> 0:17:21.560
<v Speaker 8>week's GDP number very carefully. This is the second quarter. We're,

0:17:21.640 --> 0:17:24.640
<v Speaker 8>like the headline numbers, likely to see a bounce back.

0:17:24.680 --> 0:17:29.280
<v Speaker 8>Remember it was a negative first quarter. The second quarter

0:17:29.320 --> 0:17:32.720
<v Speaker 8>should be something in the two and a half percent range.

0:17:32.880 --> 0:17:37.159
<v Speaker 8>But if you look at the the the part of

0:17:37.200 --> 0:17:40.600
<v Speaker 8>that those numbers that will tell you, will give you

0:17:40.680 --> 0:17:44.160
<v Speaker 8>a clean look at how companies are investing. That number

0:17:44.160 --> 0:17:47.040
<v Speaker 8>is supposed to be flat, So there was a lot

0:17:47.080 --> 0:17:50.480
<v Speaker 8>of distortion with tariffs over the over the second quarter,

0:17:50.600 --> 0:17:53.280
<v Speaker 8>so some of that will still be some noise, but

0:17:54.400 --> 0:17:56.840
<v Speaker 8>noise or not, that's those are companies that are not

0:17:57.359 --> 0:18:00.880
<v Speaker 8>investing for the future in things like that will help

0:18:00.920 --> 0:18:02.720
<v Speaker 8>their productivity and their growth.

0:18:03.720 --> 0:18:06.760
<v Speaker 5>How long does this take to wind its way through

0:18:06.920 --> 0:18:11.200
<v Speaker 5>before consumers. I mean, you've already mentioned steel, for instance,

0:18:11.200 --> 0:18:15.720
<v Speaker 5>but of the other parts of the inflation to show

0:18:15.760 --> 0:18:17.159
<v Speaker 5>up in the economy.

0:18:17.880 --> 0:18:20.960
<v Speaker 8>It could take a couple of quarters. You know that

0:18:20.840 --> 0:18:27.119
<v Speaker 8>the Trump administration is rolling these deals out fairly gradually,

0:18:27.280 --> 0:18:30.040
<v Speaker 8>or you know they're coming quite quick quickly towards the

0:18:30.560 --> 0:18:34.359
<v Speaker 8>August first deadline, but they're going from ten percent to

0:18:34.400 --> 0:18:37.639
<v Speaker 8>fifteen percent in a lot of cases, and so you know,

0:18:37.680 --> 0:18:40.400
<v Speaker 8>we're just going to see those costs for the American

0:18:40.440 --> 0:18:44.919
<v Speaker 8>importer go up even higher. And what's really crushing to

0:18:44.960 --> 0:18:48.240
<v Speaker 8>a lot of these businesses is the small the small

0:18:48.240 --> 0:18:50.960
<v Speaker 8>one get The small businesses get hurt the most. The

0:18:51.560 --> 0:18:55.400
<v Speaker 8>large retailers of the world they have, you know, more

0:18:55.520 --> 0:18:59.000
<v Speaker 8>the wherewithal to withstand some of this, but it's really

0:18:59.000 --> 0:19:02.920
<v Speaker 8>the Small Business and National Retail Federation has chronicles a

0:19:03.440 --> 0:19:05.119
<v Speaker 8>lot of small businesses that are getting hit.

0:19:05.160 --> 0:19:06.159
<v Speaker 2>All right, Brendon, thanks so much.

0:19:06.160 --> 0:19:06.680
<v Speaker 3>We appreciate it.

0:19:06.720 --> 0:19:08.840
<v Speaker 2>Brandon Mary, Global Trade Editor, Bloomberg News.

0:19:09.400 --> 0:19:14.119
<v Speaker 1>This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,

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