Speaker 1: This is Bloomberg Business Wait inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business finance and tech news. The Bloomberg Business Week
Speaker 1: podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.
Speaker 2: And one story that has definitely continued to evolve this week,
Speaker 2: including on this Friday, is a strike by UAW workers
Speaker 2: out in Detroit. Today an update, we've got GM and Stilantis,
Speaker 2: which owns Chrysler, facing some walkouts at a lot more
Speaker 2: facilities as talks with their workers union failed to make headway,
Speaker 2: while Ford was spared the escalation after making progress and
Speaker 2: its negotiations of checking my headlines to make sure I
Speaker 2: haven't missed anything, Let's get to it and let's get
Speaker 2: the latest. Because she is front and center on all
Speaker 2: of this. Bloomberg News Auto reporter Gabby Coppola on the
Speaker 2: phone in Detroit. Diana Lee also with US co founder
Speaker 2: and CEO at Constellation. She's here in a Bloomberg Interactive
Speaker 2: Brokers studio. Her company is a marketing platform for the
Speaker 2: automo of industries, so they help dealerships reach out to customers.
Speaker 2: It's a SaaS company. We'll get into it in just
Speaker 2: a moment. First of though, Gabby, I do want to
Speaker 2: get to you. I can't imagine what your life is
Speaker 2: like and how long your days are. But tell us
Speaker 2: what's the latest on the strike out?
Speaker 3: There?
Speaker 2: Did Troy and give us some color of what it's
Speaker 2: like on the ground.
Speaker 4: Yeah, well I think he did a pretty good summary,
Speaker 4: Carol today. You know, earlier this morning, at around ten
Speaker 4: o'clock this morning, UAW President Sean Fain said that he
Speaker 4: would expand the strike to the parts distribution plants of
Speaker 4: GM and Stiland It. So that's thirty eight different facilities
Speaker 4: across the country. And what we're talking about here is,
Speaker 4: you know, basically the aftermarket parts, you know, whatever you
Speaker 4: need to fix your car. You know, Silantis has a
Speaker 4: network of ten mopar parts of you know facilities across
Speaker 4: the country. Those people are now walking out on strike.
Speaker 4: So while the first uh set of the first you know,
Speaker 4: the first week was target that just some three key products,
Speaker 4: you know, the Ford, Bronco, the jeep wrangler of the
Speaker 4: Chevy Colorado. Those are a profitable, you know, very appealing products,
Speaker 4: but they are not that is not like putting a
Speaker 4: steak in the heart if you really want to hurt
Speaker 4: the automakers and go after the pickup trucks, the F
Speaker 4: one fifty, you know, the Ram fifteen hundred, the Chevy Silverado,
Speaker 4: and the UAW has not gone there. So well, the
Speaker 4: first time was like, you know, we're gonna hurt you
Speaker 4: a little bit. And that's why I thought you saw
Speaker 4: Wall Street not like losing your mind over this because
Speaker 4: it's okay, the truck's okay. But now they're going for
Speaker 4: things that will affect the automaker's relationship with their customers.
Speaker 4: That you know, uh if one you know former Salantis
Speaker 4: or Chrisler executive put it to me today, the plants
Speaker 4: when they strike the plants, that affects future customers. You know,
Speaker 4: if you want to go buy a car, that car
Speaker 4: may not be available, and you know, if this will
Speaker 4: drag gone longer.
Speaker 3: But with the parts.
Speaker 4: Thing, you are affecting existing customers because they won't be
Speaker 4: able to get the things they want, you know, to
Speaker 4: make their car runs. And you didn't make the cargo.
Speaker 2: Well, so let's get to you, Diana, because you deal
Speaker 2: with the dealerships, that's your customer base who deal with
Speaker 2: the customers. So how are you viewing this and what
Speaker 2: are you hearing from those dealerships and what's kind of
Speaker 2: top of mind as you see this strike play out?
Speaker 5: Yees, So thank you Carol and Gay and Gabby really
Speaker 5: well said. My biggest concern is we're not really talking
Speaker 5: about how it's affecting consumers right now.
Speaker 2: So is it really affecting consumers yet?
Speaker 5: Though not yet, but very soon it will be because
Speaker 5: now we're talking over five thousand employees walking out on
Speaker 5: Stilantis and General Motors parts distribution centers. So what does
Speaker 5: that basically mean? Anybody that needs OEM parts for Stilantis
Speaker 5: or driving a General Motors vehicle that will go to
Speaker 5: a car dealership to get a repair is now in
Speaker 5: jeopardy of not being able to have that repair right now.
Speaker 5: The biggest issues that I'm seeing right now is if
Speaker 5: you can actually have an accident or your car breaks
Speaker 5: down and you need an OEM part, and you make
Speaker 5: a service department scheduling or appointment, you show up, and
Speaker 5: now you have to actually wait for the car to
Speaker 5: get repaired. If the repair can't be done because there
Speaker 5: are no parts, then basically you may have to get
Speaker 5: a rental car. But that rental car is also affected
Speaker 5: because obviously if they're renting Stilantis or General Motors vehicles,
Speaker 5: they will not be able to repair those vehicles as well.
Speaker 5: So the other part that I think we're also not
Speaker 5: talking about is technicians. You don't need technicians or even
Speaker 5: parts people within a dealership if you can't get the
Speaker 5: OEM parts into the view.
Speaker 2: So the longer it goes on, they could potentially either
Speaker 2: be letting some of those go or something's going.
Speaker 5: To maybe break exactly. And also for dealerships, the profitability
Speaker 5: is usually in service and parts. Right, one hundred percent
Speaker 5: of their absorption rate is usually covered by the service department,
Speaker 5: so it will affect parts and service profitability, dealership profitability.
Speaker 5: They may shut down the service and parts center because
Speaker 5: they can't actually employ people if the parts aren't there.
Speaker 2: Well, this just gets to duration, right, all of these
Speaker 2: things that we're concerned about, whether or not we get
Speaker 2: to a soft landing or the FED gets to its
Speaker 2: soft landing, is the duration of like the UAW strike
Speaker 2: for example.
Speaker 6: Right, and what that could mean for the economy and
Speaker 6: how the growth projections for the fourth quarter could be
Speaker 6: impacted by that. Gabby, I wanted to bring you back
Speaker 6: in this conversation, why is it that when we're looking
Speaker 6: at GM and stilliantis those facing more walkouts whereas when
Speaker 6: it comes to Ford, why is that being spared more so?
Speaker 4: Yeah, Well, because Ford gave the union a lot of
Speaker 4: the key things they were asking for, they've agreed to them,
Speaker 4: and it's important to keep in mind, you know, Ford
Speaker 4: historically has had a warmer relations with the UAW than
Speaker 4: GM or Stillances. They already say that they spend about
Speaker 4: a billion dollars a year more than than the JAM
Speaker 4: or stlant Is on labor, and part of that is
Speaker 4: because they have fewer temporary workers. So that is a
Speaker 4: you know, so in a way, you know, the temporary workers,
Speaker 4: there's a big difference in pay between If you're a
Speaker 4: temp worker, you don't get profit sharing. You start out
Speaker 4: at around fifteen seventy eight or sixteen dollars an hour
Speaker 4: and you top out around twenty. But if you're a
Speaker 4: full time worker, you start, I believe around eighteen and
Speaker 4: you can in the topway to thirty two. So there's
Speaker 4: a big difference in cost there, and Ford is already
Speaker 4: paying those people. They have more, you know, employee, they
Speaker 4: have more workers in the United States than GM or Flantis.
Speaker 4: So they but so in a way it's less painful
Speaker 4: for them. This is this would be making Ford and
Speaker 4: Flint just raise their costs, you know, in jandem with
Speaker 4: to match what Ford has already been doing. So it
Speaker 4: actually help board. And but also Ford said, you know,
Speaker 4: they're going to give Temps profit sharing after ninety days.
Speaker 4: They agreed to COLA, which is the cost of living allowance.
Speaker 4: This is something that the union gave up in two
Speaker 4: thousand and nine. And the workers on the line are
Speaker 4: very yeah, you know, determined to get that back. And
Speaker 4: if I could just say, you know, Carol, I think
Speaker 4: you ask to all, what's it like on the picket line.
Speaker 4: So I this week I drove down, you know, about
Speaker 4: forty five minutes to Toledo, Ohio, to go visit the
Speaker 4: people picketing outside the Jeep Wrangler assembly plant. And you know,
Speaker 4: one of the things I was struck by was absolutely
Speaker 4: people feel the pinch on inflation, you know, And so
Speaker 4: even if it's you know, you could argue, well you've
Speaker 4: got more money and profit sharing than you did from
Speaker 4: if we had given you inflation protection, it doesn't matter.
Speaker 4: People want things that are guaranteed. You know, they don't
Speaker 4: like leaving things to the whims of the market. That's
Speaker 4: how they feel. They want security.
Speaker 2: I totally get it, Diana. I want to ask you,
Speaker 2: though the model is changing. Elon Musk showed us that does.
Speaker 2: The industry and workers have to continue to acknowledge that,
Speaker 2: and that means some jobs will not be needed because
Speaker 2: you know, if once again you strangle the companies with
Speaker 2: higher costs, a lot of higher costs in this transitional period,
Speaker 2: you know, you could be seeing troubles for the industry overall.
Speaker 2: At the same time, I am for workers being paid
Speaker 2: what they are worth. But just got about thirty seconds here, Yes,
Speaker 2: and I think SADDI for dealerships dealerships Elon must doesn't exactly.
Speaker 5: So there are many direct to consumer models that are
Speaker 5: evy that's coming out right now, which is competing after
Speaker 5: the franchise markets. But at the end of the day,
Speaker 5: we continue to actually ignore the fact that franchise markets
Speaker 5: have done a lot for internal communities. Right during COVID,
Speaker 5: they were the ones that were there that actually distributed
Speaker 5: foods to their communities. They're also the ones that you know,
Speaker 5: raise money for the little leads and everybody within those areas,
Speaker 5: and these family units have run these businesses for fifty years.
Speaker 2: But some would argue straight to consumer, right, We're in
Speaker 2: a direct to consumer.
Speaker 5: World, absolutely, and I just feel like at this point
Speaker 5: in time, there just needs to be different types of
Speaker 5: flexible models for all different types of consumers.
Speaker 2: Gabby five seconds. Should we look for head lines over
Speaker 2: the weekend? Yes?
Speaker 4: I think you should.
Speaker 2: Okay, all right, so appreciate it. Bloomberg News Auto reporter
Speaker 2: Gabby Coppola out there in Detroit. Dana Lee, co founder
Speaker 2: and CEO Constellation. Here in our studio, you're listening.
Speaker 1: To the Bloomberg Business Week podcast. Catch us live weekday
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Speaker 2: You know, Jess, it's been a little crazy in and
Speaker 2: around New York. Are trying to do something this morning,
Speaker 2: and it was like a whole block. It's it's just
Speaker 2: can't get into buildings, you can't get in. There's barricades everywhere. Right,
Speaker 2: It's well tough. It's been the you and general assembly.
Speaker 2: It ain't over yet, but we've also had going on
Speaker 2: New York Climate Week against the backdrop of Angas, so
Speaker 2: we've talked to a lot of voices involved in cutting
Speaker 2: carbon and improving our climate. Our next guest working to
Speaker 2: help others do exactly just that, So back with us
Speaker 2: is Louisa Lewis. She's founder and CEO of New Climate Culture.
Speaker 2: It's a biodiversity tank. They're basically focused on delivering climate
Speaker 2: solutions to communities and industries around the world while influencing
Speaker 2: international policy goals. So really coming at the intersection of
Speaker 2: all of this. She is on Montreal or she's in Montreal,
Speaker 2: I should say where we find her on Zoom and Luisa,
Speaker 2: good to have you here with Jess and myself. Great
Speaker 2: to see you again. How doest year on record? Mother
Speaker 2: Nature clearly showing us how things have changed, and we
Speaker 2: are definitely seeing the impact of it all. From your
Speaker 2: advantage point, though, how is the world doing when it
Speaker 2: comes to climate solutions, the adoption of those climate solutions
Speaker 2: and then really having an impact in making our climate better?
Speaker 7: Thank you so much for having me on and asking
Speaker 7: this question. I can see progress, is what I can say.
Speaker 7: And when I see progress, it's great because that's exactly
Speaker 7: what we have to do. We have to point to
Speaker 7: those examples of what's working. For example, I'm seeing cities
Speaker 7: all over the world, including in Montreal, that do things like,
Speaker 7: for example, in the summer, they shut down portions of
Speaker 7: their streets so that there's pedestrian walkways, installing gardens and
Speaker 7: planting more trees all over the city. The importance of
Speaker 7: that really just can't be underestimated because creating more pathways
Speaker 7: for pedestrians to move creatively outside of automobiles, outside of
Speaker 7: fossil fuel dependent automobiles specifically, is amazing and provides just
Speaker 7: more creativity, more movement in the city. I also see
Speaker 7: the influence of having gardens and planting more trees. That
Speaker 7: type of activity, especially female trees, having a good balance
Speaker 7: of male female trees, is really what's going to help.
Speaker 2: What does that? I think there's people like, what do
Speaker 2: you mean? I didn't even know what do you mean
Speaker 2: by that?
Speaker 7: Yes, So one of the big problems that has happened
Speaker 7: across different different parts of the world, but definitely in
Speaker 7: the United States with landscape design and municipal planning is that, Yeah,
Speaker 7: like a lot of people don't know enough about the
Speaker 7: biology of what they're planting. So maybe like their client
Speaker 7: asks them for I want this kind of tree, I
Speaker 7: want this cypress tree from Greece, and they're not really
Speaker 7: choosing like the right tree for the right climate. And
Speaker 7: they're also not choosing female trees or a balance of
Speaker 7: male and female trees. So male trees are producing pollen
Speaker 7: and female trees are producing fruit and nuts. And the
Speaker 7: reason why that distinction is really important is because if
Speaker 7: we have a city full of male trees, which you know,
Speaker 7: anyone can walk around and observe during throughout the year,
Speaker 7: how the trees behave if the tree if they're all male,
Speaker 7: then we're gonna have, yeah, all this pollen problems, allergy problems.
Speaker 7: We're gonna have to go buy allergy medicine to take
Speaker 7: care of just the overcrowded airways. That's uh, that's a
Speaker 7: product of this type of environmental choice that we're making
Speaker 7: with with our cities, right. And if we have more
Speaker 7: female trees, then we have not only you know, food
Speaker 7: for the birds, the insects, squirrels, any wildlife that is
Speaker 7: coming through the city or around the city, seagulls, whatever,
Speaker 7: depending on where you are in the world.
Speaker 3: But you're all for it.
Speaker 7: Also for mushrooms are going to eat that fruit and
Speaker 7: nuts that have fall into the ground. But so that's
Speaker 7: going to build top soil that's going to feed the
Speaker 7: environment and ecostem, maintaining biodiversity, maintaining all the community of
Speaker 7: the ecostem that we need.
Speaker 2: But can I jump in for a minute, because it's
Speaker 2: got to be more than just planting green plants, right
Speaker 2: forgive me, But I mean there's a lot of companies
Speaker 2: out there that are making things, doing things I'm curious about.
Speaker 2: You know, what are the companies that you might be
Speaker 2: working with or you know where you're seeing some significant
Speaker 2: changes there. We talked, you know, with a guest yesterday
Speaker 2: about the agricultural environment and what's going on in California
Speaker 2: in terms of rules and policies, so making kind of
Speaker 2: the supply chain. If you basically do anything in California,
Speaker 2: you know you're going to have to step up and
Speaker 2: meet certain rules and regulations and that's going to make
Speaker 2: for greener farming, which we know really can have a
Speaker 2: negative impact on the climate if not done in the
Speaker 2: right way.
Speaker 7: Yeah, so's I mean, that's something I've been talking about
Speaker 7: all year on my interviews. If anyone looks looks that
Speaker 7: up online, especially with regards to the hemp and cannabis industry,
Speaker 7: We've been teaching how to do the most sustainable practices
Speaker 7: in farming policy across the whole US. Because my flagship
Speaker 7: farm that I work with and that I'm partnered with
Speaker 7: is in Connecticut and it's a USD certified organic hemp farm,
Speaker 7: and so and hemp is really important because not only
Speaker 7: is it good for materials and industrial materials, and it's
Speaker 7: highly renewable, it grows faster, it's more sustainable, it it
Speaker 7: seclusters carbon really quickly. It's better than using like a
Speaker 7: tree or another type of plant in nine out of
Speaker 7: ten cases. But it's also really good at taking heavy
Speaker 7: metals and toxins out of the soil, which makes like
Speaker 7: a toxic waste site that had plllutants in it. It
Speaker 7: can clean that up in a couple of seasons so
Speaker 7: that you could actually form food in that soil after
Speaker 7: a disaster. But yeah, we are seeing.
Speaker 8: Changes, and I think that another exciting like focus that
Speaker 8: people need to hear about in terms of investment and
Speaker 8: supply chain is the idea of there's two really critical
Speaker 8: supply chains that need the world's focus, and one of
Speaker 8: them is being.
Speaker 7: The marine conservancy through help reforestation, through working within vertebrates
Speaker 7: and kelp specifically. So there are farmers out there, like
Speaker 7: ones that I'm partnered with with my company, who are
Speaker 7: showing and demonstrating that we can have these help forests grow,
Speaker 7: and Okay, this is what's cool. So not only going
Speaker 7: to create agricultural feed with help, it's also human food,
Speaker 7: it's also food for the entire marine ecosystem. And further
Speaker 7: to boot, Okay, yes, it's Questrian carbons. It's cooling down
Speaker 7: our atmosphere while it's growing, right, But not only that,
Speaker 7: it's going to help mitigate hurricanes, which means these help
Speaker 7: forests are slowing down and helping reduce the impact of
Speaker 7: So I don't.
Speaker 2: Hurricanes, right, No, no, no, I totally get all of this.
Speaker 2: So I guess what I'm and we've only got about
Speaker 2: a minute left here, is Luisa, what is it that
Speaker 2: companies that you are seeing or working with that are
Speaker 2: doing things, whether it's in fashion, whether it's in architecture,
Speaker 2: doing stuff that really helps move the needle, Like, I
Speaker 2: don't disagree, and I think most of those folks who
Speaker 2: are listening or watching right now, don't disagree with all
Speaker 2: the good stuff you're talking about, but who's actually moving
Speaker 2: the needle when it comes to reducing the carbon footprint?
Speaker 2: And just got about thirty seconds left.
Speaker 7: I think that I'm moving the needle, and my partners
Speaker 7: are in this business. Start moving the needle. So that
Speaker 7: would be you know, new climate culture, that would be
Speaker 7: the climate Foundation, that would be Sound Ocean Science, who's
Speaker 7: regrowing coral reefs, farming coral reefs, and anyone who's af
Speaker 7: feelated a CEBG guru as another company. There's just a lot.
Speaker 7: And I'm taking on hotel clients right now specifically, so
Speaker 7: that's going to be the focus of the next quarter
Speaker 7: for me, is a couple of hotel clients in two
Speaker 7: coastal regions in the US. And so what I can
Speaker 7: say is that the people who move from the needle
Speaker 7: are the people who have the most ability to range
Speaker 7: over all of the complexity, because there's a lot of
Speaker 7: moving parts, and if you're not able to come in
Speaker 7: and manage all the different intersections of where there's transportation,
Speaker 7: there's waste production and Luisa, we have.
Speaker 2: To run operation because if I don't go the computer
Speaker 2: is going to go.
Speaker 3: Be well.
Speaker 2: Take care a Luisa Lewis. She is of new climate Culture.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
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Speaker 1: Just Say Alexa playing Bloomberg eleven.
Speaker 2: All right, everybody, Maybe it's the money, must be the money.
Speaker 2: Maybe it's just seeing what else Dion Sanders can do.
Speaker 2: That is him rapping?
Speaker 3: Who knew?
Speaker 2: Of course, he's better known for being the only man
Speaker 2: to play in both the Super Bowl and the World Series,
Speaker 2: and for being so shy kid I kid, and now
Speaker 2: coach Prime is writing the new Playbook of college football.
Speaker 2: I love every time he's in front of a camera.
Speaker 3: I gotta say.
Speaker 2: This is a feature story in the new issue of
Speaker 2: Bloomberg BusinessWeek. It's now on newstands, online at Bloomberg dot com,
Speaker 2: slash BusinessWeek, and now on the Bloomberg We're gonna play
Speaker 2: a little bit more of Dion Sanders, I promise. On
Speaker 2: the way out with us is Randall Williams Bloomberg News
Speaker 2: US Sports business reporter, along with the editor of Bloomberg
Speaker 2: Business Week, Joel Webber, both here in our Bloomberg Interactive
Speaker 2: Broker studio. What can't Dion do, Joel?
Speaker 9: There's probably something but in college football don't.
Speaker 10: I don't know if.
Speaker 9: We've discovered that yet. But you know, big test this weekend.
Speaker 9: So what ultimately we wanted to talk about here? And Randall,
Speaker 9: who is the lead byline in this along with Ira
Speaker 9: budwe uh, really did a marvelous.
Speaker 10: Job nailing this one.
Speaker 9: What ultimately we're talking about here is a new coach
Speaker 9: at the University of Colorado. If you haven't been paying
Speaker 9: attention to college football, I don't know where you've been,
Speaker 9: because this has been a muss Musty TV.
Speaker 10: Uh.
Speaker 9: No one in college football has, as we write in
Speaker 9: the deck, harnessed the power of social media. The n
Speaker 9: C doua a transfer portal, portal and his own celebrity.
Speaker 9: They took Colorado And obviously we're only a couple of
Speaker 9: games into the season. This this school has gone from
Speaker 9: being a perennial loser to Musty TV. There are so
Speaker 9: many millions, billions of dollars Matt Steak that they're there,
Speaker 9: that college football is able to influence, that economics of
Speaker 9: college football are amazing. And along comes Dion who transfers
Speaker 9: into Colorado and has put Colorado on the map, and
Speaker 9: it really encapsulates how all of these changes in college football,
Speaker 9: no one has been able to leverage it quite like
Speaker 9: Dion and make it look at this much fun. That's
Speaker 9: pretty So random went to Colorado and got to watch again.
Speaker 9: What struck you about what he's building.
Speaker 10: So there's a show called Coach Prime coming out, and there's
Speaker 10: an obviously the glitz and glamour, Oh the glitz and glamor,
Speaker 10: but none of it is for show. When you're around him,
Speaker 10: it is all truly authentic to who he is. There
Speaker 10: is no oh, turn it on, turn it off. Coach
Speaker 10: Prime is Coach Prime. The quotes are not fake. He
Speaker 10: does not like write it down. There is no paper.
Speaker 10: Everything that he says on the spot is truly off
Speaker 10: the top of his head.
Speaker 2: Is he just the right guy at the right place?
Speaker 2: And I'm thinking about Nil and I'm thinking about just
Speaker 2: some of the changes that have happened with college athletes.
Speaker 2: That he is just so one who gets it and
Speaker 2: just came in at the right time, and it's just exploded.
Speaker 10: It's both. He is someone who can relate to college athletes.
Speaker 2: Neil, I always call it Nail. I know it's name, image, likeness,
Speaker 2: it's all good, it's all good, but you're just kind.
Speaker 10: He's someone who gets the college life better than anybody.
Speaker 10: He was a professional athlete, he was a college athlete,
Speaker 10: and he understands marketability probably better than any athlete ever
Speaker 10: because he was one of the most marketable athletes in
Speaker 10: the nineties. And so when you take that and you say, hey,
Speaker 10: I can teach you not only how to play well,
Speaker 10: I can get you drafted, and I can get you
Speaker 10: exposed more so than maybe any college in the world
Speaker 10: as far as athletics go. Because you think about it,
Speaker 10: isn't just the media where they're playing at ten am
Speaker 10: or twelve am or even a late night game. It
Speaker 10: is his social media handle, it is the prime video documentary,
Speaker 10: and it's his son social media handles. It's excuse me,
Speaker 10: all three of his sons social media handles.
Speaker 9: Also worth mentioning that his son is the quarterback of
Speaker 9: the team in the heuts been conversation already. Yeah, so
Speaker 9: there's a lot going on here. Sure, I gotta confess
Speaker 9: I'm a duck innity of Oregon. That is who Colorado
Speaker 9: plays this WEEKND. So this is you know what what
Speaker 9: I do appreciate about this is that he is off
Speaker 9: to an incredible start, but the season's gonna test him now,
Speaker 9: right right right.
Speaker 10: So that's the thing everybody has. When he stepped in,
Speaker 10: Colorado was one and eleven last year and now they're
Speaker 10: three and oho, so here's three times as many wins.
Speaker 10: You could consider that a victory, but he doesn't.
Speaker 3: Now.
Speaker 10: The first three games TCU, I believe lost the majority
Speaker 10: of their starters, some graduated, some went to the draft.
Speaker 10: Nebraska has had a good defense, but their quarterback has
Speaker 10: been a turnover machine. And then the Colorado State game,
Speaker 10: it was great theatrics, but they should have blown him out.
Speaker 3: Ye.
Speaker 10: Now Oregon is coming or they're going to Oregon, Colorado
Speaker 10: is and it's one of these things where this is
Speaker 10: a football talent over the last decade that has been dominant,
Speaker 10: and so can Colorado go in there and win? Because
Speaker 10: let me tell you right now, if Colorado goes to
Speaker 10: Oregon and wins the game where USC comes to Colorado Boulder,
Speaker 10: yeah it might be high rated than the national Championship.
Speaker 9: I agree, and it will speak to where college football
Speaker 9: is going, where when suddenly we have a big twelve
Speaker 9: that has both those teams in it, like, we have
Speaker 9: a completely different dynamic, which is why these multi billion
Speaker 9: dollar TV deals have become the new language of color football.
Speaker 2: That's what's going to ask you if you lose, does
Speaker 2: Foxy We're not coming to the next game?
Speaker 10: No, no, absolutely not. He's too electric. I mean you.
Speaker 3: So.
Speaker 10: I tried to do to work this in the story
Speaker 10: and it just didn't make the cut. But I tried
Speaker 10: to add all of the.
Speaker 2: Coach editors actually took something story. I bet every nugget.
Speaker 10: I'll no, no, I didn't write this sentence because it
Speaker 10: wasn't worth it. So I added every single pack twelve's
Speaker 10: Instagram follow coaches Instagram followers together and tried to see
Speaker 10: just how much it would be in comparison with It's
Speaker 10: not even remotely close. I mean he, I think it
Speaker 10: was like me. And so it's one of these things where, yes,
Speaker 10: the high train will slow down, the broadcast may not
Speaker 10: come out as much, but it's Deon Sanders. He and
Speaker 10: his sons and the program are electric. If they're they're
Speaker 10: let's say four and four in eight weeks, which I
Speaker 10: don't think they will be, But if they are, people
Speaker 10: are gonna still be talking about the gimmicks and the
Speaker 10: things that they do to make the program fun.
Speaker 9: The element that is also just kind of worth mentioning
Speaker 9: there is one of the reasons that he's able to
Speaker 9: do all this is because of the transfer portal. So
Speaker 9: the team that he inherited and the team that he
Speaker 9: has right now take to space completely different rosters, and
Speaker 9: that could have never happened really until the past couple
Speaker 9: of years. So he's he's been able to like use
Speaker 9: that profile that he has. But then also the changes
Speaker 9: to the NC double A have enabled it, and if
Speaker 9: it happens in college football, it could happen in college basketball, Like, well,
Speaker 9: we could see this.
Speaker 2: It is.
Speaker 10: You're very controversial because you're essentially walking into a room
Speaker 10: full of athletes who were there before you got there
Speaker 10: and saying, well, you guys better get on board or
Speaker 10: get out of the world.
Speaker 2: This is what he did in his first meeting right
Speaker 2: for the team in Corona.
Speaker 10: But but with that, you know, it's one of these
Speaker 10: things where if he doesn't do that and he inherits
Speaker 10: these players who maybe didn't win as many games as
Speaker 10: they should have or didn't compete to the level that
Speaker 10: he wants. Then what Then's then people are going to
Speaker 10: be saying, Oh, look, Deon, he could do it to
Speaker 10: Jackson State, he couldn't do it at Colorado. So it's
Speaker 10: two sided coin. But he's winning right now.
Speaker 3: You know.
Speaker 9: The other thing he's doing is selling sunglasses, and we
Speaker 9: did this little side by coming. The merch is also
Speaker 9: just worth talking about because so there was some shade
Speaker 9: thrown at Dion for not taking his sunglasses in his
Speaker 9: hat off and a press conference. He turned that into
Speaker 9: motivation and he endorses these sunglasses.
Speaker 3: Right.
Speaker 9: How much product did they sell?
Speaker 10: They sold one point two million dollars for sixty seven
Speaker 10: dollars sunglasses in a day. And when I talked to
Speaker 10: the blenders I wear the CEO, he said that at
Speaker 10: one point time when Dion was on set, they were
Speaker 10: selling a pair a second. Oh my god, insane, I
Speaker 10: have to say.
Speaker 2: And people go read it, go online, buy the magazine,
Speaker 2: just check it out. Because the economic impact of what's
Speaker 2: happening in the town in terms of hotel rooms and
Speaker 2: just the tickets and so on so forth is unbelievable.
Speaker 10: Seventeen million dollars in just one week. Imagine what's going
Speaker 10: to happen if, let's say Lebron says I'm going to
Speaker 10: Colorado for the USC game. If he just says that,
Speaker 10: imagine what it's going to be by the end of
Speaker 10: the season. It could be very well over one hundred
Speaker 10: and twenty million dollars prime time.
Speaker 9: It's it's truly like what you know, why you make
Speaker 9: a hire like this? But then everything else that has
Speaker 9: transpired is obviously going their way, and it's amazing to
Speaker 9: see like this football program that really has not been
Speaker 9: significant for decades suddenly on the map and being led
Speaker 9: by somebody who's truly electrically.
Speaker 2: All right, watch some football, but definitely read this story,
Speaker 2: no doubt about it. It's a feature story. Randall Williams
Speaker 2: Bloomberg News US sports business reporter and Ira Woodway and
Speaker 2: the editor of a business we Jill Weber here, great story.
Speaker 7: I'm brothering macka.
Speaker 10: A journal.
Speaker 3: How about you let me drive?
Speaker 5: No, no, no, no, who's gone to drive?
Speaker 1: Honey?
Speaker 11: Please?
Speaker 10: I'll do the riding gravel. Let's mate, I want to
Speaker 10: try it.
Speaker 3: It's good question.
Speaker 1: This is the drive to the Globe dot com tm ME.
Speaker 10: I think we'll buy around?
Speaker 3: Should it on?
Speaker 1: On Bloomberg Radio?
Speaker 2: All right, everybody, just under eighteen minutes left in today's
Speaker 2: trading session, getting ready to wrap up the Friday trade
Speaker 2: and the weekly train. You got stocks bouncing around here.
Speaker 2: We saw some buying just about an hour ago or
Speaker 2: about half an hour ago, and now we're seeing kind
Speaker 2: of a little bit of a turnaround. But it does
Speaker 2: feel like, Jess, a little bit of a breather today.
Speaker 6: It does, especially after the last few tradings have been
Speaker 6: pretty vollatile.
Speaker 2: Carol, Right, it's like significant. All right, So let's see
Speaker 2: what Sylvia Jablonski has to say. She's CEO and chief
Speaker 2: investment officer of our defined CTF. She's with us on
Speaker 2: the phone in New York City. Sylvia, nice to have
Speaker 2: you back here on another crazy week. Here we are
Speaker 2: in twenty twenty three. Let's start macro. How are you
Speaker 2: thinking about all that happened today and what kind of
Speaker 2: flows are you seeing in terms of investor reaction into
Speaker 2: defiance CTFs into or out of for that matter.
Speaker 3: Hi Krol, great to be here with you today.
Speaker 11: Well, it's certainly been an interesting set of days here
Speaker 11: around the FED announcement.
Speaker 3: So you know, we just like look at the macro
Speaker 3: picture here.
Speaker 11: I think prior to the FED meeting coming up, we
Speaker 11: had some decent inflation reads. You know, one was a
Speaker 11: little bit hotter than we liked, but overall there was
Speaker 11: uncertainty but a little bit of stability, and you know,
Speaker 11: corporate earnings were holding up well, the consumer was spending.
Speaker 11: We kind of thought that this was going to be
Speaker 11: at least clear skies into the end of the year,
Speaker 11: with potentially a bullish market. And then you know, POSTCUD yesterday,
Speaker 11: we now go back to a little bit of uncertainty
Speaker 11: around the prospect of whether or not there's a change
Speaker 11: now in the soft landing scenario.
Speaker 3: So we know the Fed was a little hawkish.
Speaker 11: He removed about fifty bits of easing, and the dot
Speaker 11: plot went from four to two cuts, and you know,
Speaker 11: the market didn't like it, right, So I think over
Speaker 11: the last couple of days what we saw was a
Speaker 11: little bit of panic selling, and that's often what happens
Speaker 11: unfortunately on pullbacks. You know, I often think about that
Speaker 11: and sort of wish we would see it the other way, right,
Speaker 11: because for sort of dollar cost averaging long term holders,
Speaker 11: these are actually the best buying opportunities.
Speaker 3: But investors get a little bit spook.
Speaker 2: So so when you say a little bit, when you
Speaker 2: say a little bit, is it really just a little
Speaker 2: bit or is it something enough that you guys a
Speaker 2: little bit?
Speaker 3: Okay? Yeah, any buying, just a little bit. Any we did,
Speaker 3: so we saw a lot of buying on the income side.
Speaker 11: So we've got two products that are meant to generate
Speaker 11: enhance income essentially, and we saw really outsized buying actually
Speaker 11: in those two funds. And then we saw a little
Speaker 11: bit of selling and kind of the tech tech type
Speaker 11: of names and the AI play and that's recovering today,
Speaker 11: which is of NOE.
Speaker 3: But yeah, that's kind of where we saw the flow
Speaker 3: and the action.
Speaker 2: When you speak income equity income, are you talking about
Speaker 2: fixed income income?
Speaker 3: Yeah, So I'll give you two examples. There are two tickers.
Speaker 3: One is jef p j e p Y and one
Speaker 3: is QQQY.
Speaker 11: And what they do is essentially look to sell in
Speaker 11: the money puts on a data on a daily basis
Speaker 11: of their zero data xpery puts that are in the
Speaker 11: money that expire within twenty four hours, and the idea
Speaker 11: is that you generate the premium on the daily basis
Speaker 11: to hopefully, you know, provide enhanced income to clients.
Speaker 3: By the end of the year.
Speaker 11: So they are products that track an equity INDEXS S
Speaker 11: and P five hundred and the NASDAT. But the goal
Speaker 11: is really to sell puts and to gather the premium
Speaker 11: to pay that out to investors. And so we've just
Speaker 11: seen credible demand and interest in these products and they've
Speaker 11: actually only been out for a couple of days too.
Speaker 11: So income is the name of the game this year.
Speaker 6: I'm glad you brought up puts because when you're looking
Speaker 6: at that lack of hedging that's been there the past
Speaker 6: few months, especially because of just how cheap it is
Speaker 6: now as well, what do you think that really tells us?
Speaker 6: And when you're talking about puts being shorter for this
Speaker 6: type of duration, does it mask some of the potential
Speaker 6: hedging that is going on underneath the surface.
Speaker 3: Yeah, so that's a really interesting question.
Speaker 11: If you look over the last couple of weeks, actually
Speaker 11: there's been an increase in volume in you know, kind
Speaker 11: of hedges going on the book, so I think a
Speaker 11: lot of investors and then obviously the kind of the
Speaker 11: professional hedge fund guys and what we're probably doing a
Speaker 11: lot of that ahead of the FED meeting. But when
Speaker 11: you sell slightly in the money puts, it's actually it's
Speaker 11: actually a bullish expression, right, So you know, our view
Speaker 11: isn't so much on the direction of the market, but
Speaker 11: our view is that, you know, there's there's this volatility
Speaker 11: aspect to puts that expire within one day that can
Speaker 11: be captured to generate enhanced income essentially. So it doesn't
Speaker 11: really have a whole lot to do with with hedging
Speaker 11: in the way that we're doing it. But to the
Speaker 11: hedging question, you know, I do think that you see
Speaker 11: increased volume. And I've been actually studying this a bunch
Speaker 11: just because you know, we've kind of come out with
Speaker 11: the CTF, but Steeblow has come out with some information
Speaker 11: that actually shows that there have been you know, kind
Speaker 11: of trillions of AUM and options buying and selling in
Speaker 11: recent days. It's been outside, but it's been pretty level,
Speaker 11: so the buyers have matched the cells, which is super interesting.
Speaker 2: So this whole idea of like in twenty four hours,
Speaker 2: is it a case of like so you kind of
Speaker 2: always have your money available kind of thinking or what
Speaker 2: is it.
Speaker 3: No, it's actually that you know, you get more bites
Speaker 3: at the apple, right.
Speaker 11: Okay, So some of the yeah, the better known strategies
Speaker 11: out there are the covered call strategies right where they're
Speaker 11: holding let's say the S and P five hundred and
Speaker 11: then they're employing a covered call strategy to generate income.
Speaker 11: So we kind of just flipped that on its head
Speaker 11: and said, well, you know, treasuries are returning five percents.
Speaker 11: Instead of holding the SMP, why don't we hold you know,
Speaker 11: treasuries and have five percent higher income environment and then
Speaker 11: so and the money puts on the actual index and
Speaker 11: generate the yield that way.
Speaker 3: So it's really a way to you know, outperform some
Speaker 3: of these great covered.
Speaker 11: Cost strategies that are out there and are are you know,
Speaker 11: also providing amazing kind of income distributions.
Speaker 3: But you know, our goal is to kind of beat that.
Speaker 2: Should we talk some names?
Speaker 6: We should what are some individual names that you are
Speaker 6: advising clients to buy.
Speaker 11: Yeah, So I think given what's going what's gone on
Speaker 11: in the last couple of days, you know, there's been
Speaker 11: so much fomo this year about you know, not having
Speaker 11: gone into the AI.
Speaker 3: Or the text acts and things like that.
Speaker 11: And then when you see you know, kind of days
Speaker 11: like this and there's a Friday, it's as we spoke
Speaker 11: about before, right, everybody's sort of like panic selling, but
Speaker 11: really there should be because of panic buying, right, or
Speaker 11: excitement buying there. I think when you get pullbacks, you
Speaker 11: think about the future of AI and what that means.
Speaker 11: You know, it's going to actually it's not just a buzzword, right,
Speaker 11: It's something that's going to change healthcare. It's something that's
Speaker 11: going to allow for autonomy striving, for electric vehicles to work,
Speaker 11: for smart cities to be connected, you know, for banks
Speaker 11: to properly manage their risk, and for all of these
Speaker 11: you know, kind of different things that we're we're talking
Speaker 11: about as they relate to AI, and you know kind
Speaker 11: of what powers AI.
Speaker 2: So you don't think it's getting old and crusty yet,
Speaker 2: the AI trade, do you think.
Speaker 11: I don't think it's even started. I think this is
Speaker 11: the decade of I think AI is the next technic.
Speaker 11: AI supercomputing and quantum computing is the next five to
Speaker 11: ten years.
Speaker 3: You know that it's going to be the next five
Speaker 3: to ten years. Do you also like test and the
Speaker 3: revenues will start coming from it.
Speaker 2: Oh, I'm sorry I jumped in. Do you also like
Speaker 2: Tesla and Revie. We've got about thirty seconds left.
Speaker 3: Yeah, love.
Speaker 11: Tesla and Revian also both knocked off of their pedestals
Speaker 11: this week, you know, amazing performance into the air. But
Speaker 11: what you're seeing there is this great interest in climate change,
Speaker 11: you know, going carb but neutral. You see the growth
Speaker 11: that Cager has has gone from you know, five percent
Speaker 11: of car sold globally to about eighteen percent of cars
Speaker 11: sold globally, more than sixty percent of vehicles sold in
Speaker 11: China or ev it's picking from the US, you know,
Speaker 11: more battery stations, government funding, and tax credits. So it's
Speaker 11: it's it's the you know, the FAI is the future tech,
Speaker 11: this is the future of otto.
Speaker 2: I find it really interesting just because, right, I feel
Speaker 2: like we get to a point where everyone's like, okay,
Speaker 2: the growth name stay away from this, right like this,
Speaker 2: But she's a Sylvia reminding us that this is the future.
Speaker 6: And we always have this type of argument with tech
Speaker 6: and growth, and yet they still continue to power things out.
Speaker 2: They come back Sylvia really smart, Thank you, I'm really thoughtful.
Speaker 2: Sylvia Jablonski, CEO and CIO at defined ETFs on the
Speaker 2: phone in New York City.
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Speaker 5: Hey,