1 00:00:00,280 --> 00:00:11,280 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is Bloomberg Intelligence 2 00:00:11,440 --> 00:00:12,520 Speaker 1: with Paul Sweeney. 3 00:00:12,640 --> 00:00:15,920 Speaker 2: The real app performance has been the US corporate high yield. 4 00:00:15,960 --> 00:00:19,639 Speaker 2: These are two big time blue chip companies. One person's 5 00:00:19,640 --> 00:00:22,480 Speaker 2: cast is another person's animal spirits. 6 00:00:22,120 --> 00:00:25,880 Speaker 1: Breaking market headlines and corporate news from across the globe 7 00:00:25,880 --> 00:00:26,279 Speaker 1: our viewer. 8 00:00:26,320 --> 00:00:27,960 Speaker 3: If the economy is slowing down. 9 00:00:27,920 --> 00:00:30,080 Speaker 4: There is the possibility of the debt spirals. 10 00:00:30,160 --> 00:00:32,680 Speaker 5: Both Finum Competing and AI are going to power the future. 11 00:00:32,760 --> 00:00:36,080 Speaker 1: People are just buying everything with tex Bloomberg Intelligence with 12 00:00:36,240 --> 00:00:40,440 Speaker 1: Paul Sweeney on Bloomberg Radio, YouTube and Bloomberg Originals. 13 00:00:41,560 --> 00:00:43,879 Speaker 5: I'm Paul Sweeney and I'm Lisa Matteo filling in on 14 00:00:43,920 --> 00:00:45,000 Speaker 5: Bloomberg Intelligence. 15 00:00:45,159 --> 00:00:47,640 Speaker 2: Today's Bloomberg Intelligence Show we dig inside the big business 16 00:00:47,680 --> 00:00:50,080 Speaker 2: stories impacting Wall Street and the global markets. 17 00:00:49,760 --> 00:00:51,920 Speaker 5: Aage in every week we provide in depth research and 18 00:00:52,040 --> 00:00:53,960 Speaker 5: data on some of the two thousand companies and one 19 00:00:54,040 --> 00:00:56,880 Speaker 5: hundred and thirty industries are analysts cover worldwide. 20 00:00:57,000 --> 00:00:58,920 Speaker 2: Today we'll look at al Paramount buying the rights to 21 00:00:59,040 --> 00:01:01,320 Speaker 2: UFC fights will impact it's streaming service. 22 00:01:01,360 --> 00:01:03,240 Speaker 5: Well, it's a look at earnings from the networking bell 23 00:01:03,240 --> 00:01:04,920 Speaker 5: Weather Cisco Systems. 24 00:01:04,680 --> 00:01:06,520 Speaker 2: First, we look at third quarter earnings from the farm 25 00:01:06,560 --> 00:01:07,679 Speaker 2: at machinery leader Deer. 26 00:01:07,880 --> 00:01:10,800 Speaker 5: This week, Deer reported earnings that beat analyst projections, but 27 00:01:10,840 --> 00:01:13,920 Speaker 5: the company trimmed its projected net income for twenty twenty five. 28 00:01:14,319 --> 00:01:16,680 Speaker 5: This comes as customers were made cautious due to trade 29 00:01:16,800 --> 00:01:18,880 Speaker 5: uncertainty and the health of the US economy. 30 00:01:19,040 --> 00:01:20,920 Speaker 2: For more, Lisa and I were joined by Chris Chielino, 31 00:01:21,000 --> 00:01:24,800 Speaker 2: Bloomberg Intelligence Senior US machinery analyst. We first asked Christopher's 32 00:01:24,880 --> 00:01:26,360 Speaker 2: key takeaways from Deer earnings. 33 00:01:26,520 --> 00:01:29,360 Speaker 4: Listen, I mean, this really wasn't a particularly great quarter. 34 00:01:29,920 --> 00:01:33,160 Speaker 4: Three key results were mixed at best. It was really 35 00:01:33,400 --> 00:01:36,920 Speaker 4: a low quality earnings beat, primarily driven by a lower 36 00:01:36,959 --> 00:01:39,360 Speaker 4: tax rate. And as you alluded to, they did cut 37 00:01:39,360 --> 00:01:42,559 Speaker 4: their twenty to twenty five guidance, But to be honest, 38 00:01:42,560 --> 00:01:45,440 Speaker 4: I don't think that really changes the investment thesis here. 39 00:01:45,800 --> 00:01:48,160 Speaker 4: You know, we still expect earnings to bottom this year. 40 00:01:48,480 --> 00:01:51,160 Speaker 4: We're still looking at a very you know, gradual recovery 41 00:01:51,240 --> 00:01:54,440 Speaker 4: as twenty twenty six unfolds. The reduction in the outlook 42 00:01:54,480 --> 00:01:58,000 Speaker 4: was really driven by weakness in their construction business, and 43 00:01:58,040 --> 00:01:59,560 Speaker 4: it appears to us that it was really more of 44 00:01:59,600 --> 00:02:02,520 Speaker 4: a function of some of the higher tariffs and costs 45 00:02:02,520 --> 00:02:05,520 Speaker 4: coming through. We knew that construction forestry was really going 46 00:02:05,600 --> 00:02:07,840 Speaker 4: to bear the brunt of the tariff impact, but this 47 00:02:07,920 --> 00:02:09,680 Speaker 4: court just came in, you know, a little bit more 48 00:02:09,720 --> 00:02:12,600 Speaker 4: of a headwind that we anticipated. It doesn't appear to 49 00:02:12,639 --> 00:02:14,440 Speaker 4: be that there's been much of a change in terms 50 00:02:14,440 --> 00:02:17,400 Speaker 4: of you know, farm fundamentals and their appetite to go 51 00:02:17,440 --> 00:02:18,320 Speaker 4: out and buy equipment. 52 00:02:18,600 --> 00:02:21,120 Speaker 5: Hey, Qrich, can you get more into the struggle that 53 00:02:21,360 --> 00:02:23,680 Speaker 5: farmers are facing that that's impacting deer. 54 00:02:23,960 --> 00:02:26,480 Speaker 4: Sure, you know, we've been in this kind of prolonged 55 00:02:26,480 --> 00:02:30,200 Speaker 4: downturn in the ag ecotomy. Crop prices continued to deteriorate, 56 00:02:30,800 --> 00:02:33,840 Speaker 4: farm fundamentals remain weak, interest rates remain high. We have 57 00:02:33,960 --> 00:02:36,520 Speaker 4: the you know, the overhanger, the uncertainty around the trade 58 00:02:36,600 --> 00:02:40,600 Speaker 4: environment and export market access. Really there's really no signs 59 00:02:40,680 --> 00:02:42,880 Speaker 4: or i would, you know, say green shoots yet that 60 00:02:42,919 --> 00:02:46,359 Speaker 4: we're at this inflection point. I think the positive takeaway 61 00:02:46,480 --> 00:02:50,280 Speaker 4: is that, you know, inventories are coming down, deer's not 62 00:02:50,320 --> 00:02:52,919 Speaker 4: going to have to massively underproduce a retail demand next year. 63 00:02:52,919 --> 00:02:55,120 Speaker 4: So even if we're looking at a flatish type of 64 00:02:55,200 --> 00:02:59,239 Speaker 4: environment in terms of underlying retail demand. We're still looking 65 00:02:59,240 --> 00:03:02,480 Speaker 4: at probably higher production and some pricing coming through, which 66 00:03:02,520 --> 00:03:04,960 Speaker 4: should still generate some operating leverage in the business. 67 00:03:05,880 --> 00:03:11,440 Speaker 2: So, Chris, when demand is down for their core farm equipment, 68 00:03:11,440 --> 00:03:14,120 Speaker 2: what does deer typically do? Do they let inventories build? 69 00:03:14,160 --> 00:03:16,600 Speaker 2: Do they get promotional to move inventory out the door? 70 00:03:16,639 --> 00:03:17,960 Speaker 2: How did they usually manage that? 71 00:03:19,120 --> 00:03:21,639 Speaker 4: Yeah, so this is it's a delicate balancing act, right. 72 00:03:21,680 --> 00:03:25,600 Speaker 4: I mean, it's almost impossible to time the cycle. And 73 00:03:25,720 --> 00:03:27,799 Speaker 4: what they've been doing, you know, for the better part 74 00:03:27,800 --> 00:03:29,840 Speaker 4: of this year, and even at the end of last year, 75 00:03:30,280 --> 00:03:32,959 Speaker 4: they had been underproducing retail demand to bring down those 76 00:03:33,000 --> 00:03:37,080 Speaker 4: elevated inventories. They've done really a commendable job on new equipment. 77 00:03:37,560 --> 00:03:39,520 Speaker 4: The big issue right now is still on the used 78 00:03:39,560 --> 00:03:43,480 Speaker 4: equipment inventory side, particularly on tractors, which are still quite elevated. 79 00:03:44,040 --> 00:03:47,560 Speaker 4: And you're right, they are allocating more merchandising programs and 80 00:03:47,600 --> 00:03:50,960 Speaker 4: pool funds to help address that issue and move the equipment. 81 00:03:51,320 --> 00:03:53,480 Speaker 4: And I think you see that partly reflected in their 82 00:03:53,520 --> 00:03:57,360 Speaker 4: production precision ad business this quarter and pricing actually flip negative, 83 00:03:57,360 --> 00:03:59,920 Speaker 4: which was a surprise to us. It does appear that 84 00:04:00,160 --> 00:04:03,440 Speaker 4: this is you know, relatively transitory. We should expect pricing 85 00:04:03,480 --> 00:04:06,600 Speaker 4: to bounce back next quarter. But yeah, it's been a 86 00:04:06,760 --> 00:04:09,000 Speaker 4: you know, they've done a real good job of managing inventories. 87 00:04:09,040 --> 00:04:10,880 Speaker 4: It's just you know, when you're slogging along through the 88 00:04:11,160 --> 00:04:14,680 Speaker 4: bottom of the cycle here, it does become quite challenging. 89 00:04:14,840 --> 00:04:16,160 Speaker 5: So then I got to follo up, are you still 90 00:04:16,160 --> 00:04:18,480 Speaker 5: cautious about the pace of their recovery? 91 00:04:19,000 --> 00:04:22,520 Speaker 4: Yes, you know, I would say signs of a recovery 92 00:04:22,520 --> 00:04:25,040 Speaker 4: are still you know, pretty elusive to us. And if 93 00:04:25,040 --> 00:04:26,880 Speaker 4: you just look over the last couple of months, you know, 94 00:04:26,960 --> 00:04:29,840 Speaker 4: you continue to see further downward pressure on crop prices, 95 00:04:29,839 --> 00:04:31,080 Speaker 4: which at the end of the day is one of 96 00:04:31,120 --> 00:04:34,680 Speaker 4: the bigger drivers of deer's business and farmer cash receipts. 97 00:04:35,080 --> 00:04:37,640 Speaker 4: We had a pretty ugly WASDI report this week. You know, 98 00:04:37,680 --> 00:04:39,400 Speaker 4: it looks like we're going to get another year of 99 00:04:39,440 --> 00:04:44,560 Speaker 4: record corn production, so those stockpiles continue to build, which 100 00:04:44,640 --> 00:04:46,040 Speaker 4: is really going to keep a you know, somewhat of 101 00:04:46,040 --> 00:04:48,120 Speaker 4: a stealing on crop prices here in the near term. 102 00:04:48,520 --> 00:04:51,160 Speaker 4: So we think this recovery is going to look much 103 00:04:51,160 --> 00:04:54,119 Speaker 4: more modest or subdued than what we typically see during 104 00:04:54,120 --> 00:04:57,360 Speaker 4: a normal cycle. Right now, we're still anticipating you know, 105 00:04:57,400 --> 00:04:59,920 Speaker 4: a modest you know, flat to up five percent. Next 106 00:05:00,080 --> 00:05:03,159 Speaker 4: here in terms of underlying retail demand for lar Jack, 107 00:05:03,240 --> 00:05:04,680 Speaker 4: particularly in North America. 108 00:05:04,800 --> 00:05:07,719 Speaker 5: All right, thanks to Chris Chielino, Bloomberg Intelligence Senior US 109 00:05:07,720 --> 00:05:08,720 Speaker 5: machinery analyst. 110 00:05:08,880 --> 00:05:11,120 Speaker 2: We moved next to a conversation about the global fintech 111 00:05:11,160 --> 00:05:14,360 Speaker 2: company ny X. NYAX trades on the NASDAC under the 112 00:05:14,400 --> 00:05:16,120 Speaker 2: ticker NYAX. 113 00:05:16,279 --> 00:05:18,680 Speaker 5: The company is focused on payment software and devices for 114 00:05:18,720 --> 00:05:21,560 Speaker 5: the self service space where no cashier is present, and 115 00:05:21,600 --> 00:05:24,160 Speaker 5: the company recently reported second quarter profit that more than 116 00:05:24,279 --> 00:05:26,039 Speaker 5: doubled analyst expectations. 117 00:05:26,200 --> 00:05:28,200 Speaker 2: This week, guest host Normal Lind and I were joined 118 00:05:28,200 --> 00:05:31,479 Speaker 2: by nyak's chief financial officer, Segit Manure, and we began 119 00:05:31,560 --> 00:05:34,200 Speaker 2: the conversation by asking Segite for more background on what 120 00:05:34,360 --> 00:05:35,200 Speaker 2: NIAX does. 121 00:05:35,680 --> 00:05:38,960 Speaker 6: So we are actually the global leader in payment and 122 00:05:39,080 --> 00:05:42,360 Speaker 6: management solution for the unattended market. And what does it 123 00:05:42,600 --> 00:05:47,240 Speaker 6: mean unattended? It's really the vending machine massals chair ev 124 00:05:47,440 --> 00:05:50,960 Speaker 6: chargers when it's just you in front of the machine, 125 00:05:50,960 --> 00:05:55,440 Speaker 6: does not cashier in between. And in fact, if you 126 00:05:55,600 --> 00:05:59,960 Speaker 6: bought a drink in a vending machine lately at the JFKA, 127 00:06:00,200 --> 00:06:04,280 Speaker 6: you probably used one of our Nayaks Yellow devices. So 128 00:06:05,320 --> 00:06:08,279 Speaker 6: we have more than hundred thousand customers. We sell our 129 00:06:08,320 --> 00:06:10,920 Speaker 6: product in more than one hundred and twenty countries, and 130 00:06:10,960 --> 00:06:14,160 Speaker 6: we have a very simple mission statement to. 131 00:06:14,160 --> 00:06:16,560 Speaker 3: Help our customers grow the business. What does it mean? 132 00:06:16,880 --> 00:06:21,279 Speaker 6: Increase their revenue, decrease their cost and through loyalty, create 133 00:06:21,360 --> 00:06:25,040 Speaker 6: that stickness with our customers with their customers. 134 00:06:25,520 --> 00:06:29,279 Speaker 7: How do you stay ahead in today's fintech landscape? Of 135 00:06:29,279 --> 00:06:30,960 Speaker 7: course there's a lot of players now. 136 00:06:32,720 --> 00:06:37,880 Speaker 6: So actually in our area there's not a lot of competition. 137 00:06:38,440 --> 00:06:42,159 Speaker 6: I'm talking about the payment and in the unattended space. 138 00:06:42,760 --> 00:06:46,239 Speaker 6: So in fact, you know, we are the only global, 139 00:06:46,240 --> 00:06:52,159 Speaker 6: as I said, a player in this unattended space. It's 140 00:06:52,200 --> 00:06:57,120 Speaker 6: a very fragmented business and decentralized, so there's a lot 141 00:06:57,160 --> 00:07:01,279 Speaker 6: of small players and we are with our global solution 142 00:07:01,640 --> 00:07:06,480 Speaker 6: basically integrated hardware, payment and services all together, we can 143 00:07:06,520 --> 00:07:09,680 Speaker 6: bring that to the local market. It's also a very 144 00:07:09,760 --> 00:07:13,920 Speaker 6: highly regulated market, so there's a lot of barriers to entry, 145 00:07:14,440 --> 00:07:19,320 Speaker 6: so whether it's a regulation on payment, whether it's privacy, 146 00:07:19,800 --> 00:07:23,360 Speaker 6: and with our global solution, with us being there for 147 00:07:23,480 --> 00:07:26,680 Speaker 6: twenty years, we were able to overcome that. We look 148 00:07:26,720 --> 00:07:28,800 Speaker 6: at ourselves as a payment company, and what do you 149 00:07:28,840 --> 00:07:30,239 Speaker 6: need as a payment company? 150 00:07:30,280 --> 00:07:31,920 Speaker 3: You need basically three things. 151 00:07:31,960 --> 00:07:35,880 Speaker 6: You need the trust, you need the scalability, and you 152 00:07:35,960 --> 00:07:39,240 Speaker 6: really need the easy doing business. So from a trust perspective, 153 00:07:39,760 --> 00:07:42,800 Speaker 6: we build that trust over the twenty years. We have 154 00:07:42,840 --> 00:07:46,880 Speaker 6: a very strong brand. Look now for the yellow devices. 155 00:07:46,920 --> 00:07:50,360 Speaker 6: You would see that everywhere from an easy to do 156 00:07:50,520 --> 00:07:53,200 Speaker 6: business with it's again it's a bit to B to see. 157 00:07:53,280 --> 00:07:54,880 Speaker 6: So we have a very you know, it's a high 158 00:07:54,920 --> 00:07:58,080 Speaker 6: profile company. You go to whether it's the cow wash 159 00:07:58,160 --> 00:08:00,600 Speaker 6: to the vending machine and you see us. So B 160 00:08:00,680 --> 00:08:05,280 Speaker 6: to B it's all about regulation and we were able 161 00:08:05,360 --> 00:08:08,119 Speaker 6: to overcome that. When it comes to B to see, 162 00:08:08,400 --> 00:08:10,720 Speaker 6: as I said, it's in front of us and you 163 00:08:10,800 --> 00:08:13,520 Speaker 6: want that in a nanosecond to get your snack, to 164 00:08:13,560 --> 00:08:17,280 Speaker 6: get your coffee. So on scalability, this is where we 165 00:08:17,320 --> 00:08:20,080 Speaker 6: are focusing right. This is what takes time to build. 166 00:08:20,560 --> 00:08:23,120 Speaker 6: And we've showed that we are using more than eighty 167 00:08:23,360 --> 00:08:27,800 Speaker 6: distributors all around the world right, so we are setying 168 00:08:27,840 --> 00:08:31,000 Speaker 6: our products straight to the OEM. So when the vending machine, 169 00:08:31,040 --> 00:08:35,880 Speaker 6: the massage share, the kid ride are coming from the manufacturers, 170 00:08:36,080 --> 00:08:39,680 Speaker 6: it will already bring that NIX device. 171 00:08:39,760 --> 00:08:42,720 Speaker 2: Talk to us about the EV business electric vehicle business. 172 00:08:42,760 --> 00:08:45,600 Speaker 2: How are you guys approaching that? What is your expectation 173 00:08:45,760 --> 00:08:47,920 Speaker 2: for how that business will grow for you? 174 00:08:49,320 --> 00:08:50,800 Speaker 3: So great question. 175 00:08:50,920 --> 00:08:55,040 Speaker 6: EV is definitely one of the three main growth drivers 176 00:08:55,120 --> 00:08:59,080 Speaker 6: as we look into twenty twenty five and even beyond. 177 00:09:00,000 --> 00:09:01,440 Speaker 3: There was a few elements there. 178 00:09:01,480 --> 00:09:05,560 Speaker 6: It can be as easy as any unattended verticals that 179 00:09:05,600 --> 00:09:09,559 Speaker 6: we're already in and we're already working with the ivy 180 00:09:09,559 --> 00:09:13,680 Speaker 6: Goo Electrified America Electrifi Canada where we are providing the 181 00:09:13,720 --> 00:09:15,960 Speaker 6: payment device, but it can. 182 00:09:15,840 --> 00:09:19,320 Speaker 3: Also be where we are developed. 183 00:09:18,840 --> 00:09:22,600 Speaker 6: The management suite, the electricity management suite that has a 184 00:09:22,640 --> 00:09:25,319 Speaker 6: lot of regulations around it, and we were able to 185 00:09:26,040 --> 00:09:30,120 Speaker 6: accommodate that as well. And then for small businesses which 186 00:09:31,080 --> 00:09:33,880 Speaker 6: I haven't mentioned that, but most of our customers. 187 00:09:33,480 --> 00:09:36,040 Speaker 3: Are small and small and medium businesses. 188 00:09:36,840 --> 00:09:40,480 Speaker 6: That's where we provide the old solution, the hard well, 189 00:09:41,160 --> 00:09:46,080 Speaker 6: the management electricity basically as well as payment. So iv 190 00:09:46,280 --> 00:09:51,120 Speaker 6: we just signed announced the agreement with Hotel which is 191 00:09:51,360 --> 00:09:56,080 Speaker 6: a potential of one hundred thousand ivy charging stations to 192 00:09:56,160 --> 00:10:00,920 Speaker 6: be deployed in North America and also in Europe and 193 00:10:00,960 --> 00:10:05,920 Speaker 6: many other contracts like that. That shows the potential with 194 00:10:06,040 --> 00:10:08,120 Speaker 6: the fact that we are a global company, so it 195 00:10:08,160 --> 00:10:12,079 Speaker 6: can be done in France or in the state of 196 00:10:12,679 --> 00:10:18,320 Speaker 6: California and you have the same exact product all around 197 00:10:18,360 --> 00:10:19,400 Speaker 6: the globe. 198 00:10:19,720 --> 00:10:24,040 Speaker 7: Are there any particular market gaps or audiences that are 199 00:10:24,320 --> 00:10:26,120 Speaker 7: underserved that you're targeting right now? 200 00:10:26,800 --> 00:10:29,840 Speaker 6: So in the unattended space, which is the majority of 201 00:10:29,880 --> 00:10:33,360 Speaker 6: our revenue today, definitely there's a place on the EV 202 00:10:33,720 --> 00:10:37,640 Speaker 6: to grow and the electric vehicle charges, smart coolers is 203 00:10:37,640 --> 00:10:44,600 Speaker 6: a very fast growing area parking as well micro market, 204 00:10:44,720 --> 00:10:48,040 Speaker 6: So this is in the unattended, but we also are 205 00:10:48,920 --> 00:10:53,360 Speaker 6: stepping in into more of areas, like as I said, 206 00:10:53,360 --> 00:10:56,360 Speaker 6: the EV charger, that is beyond the payment or even 207 00:10:56,400 --> 00:10:59,080 Speaker 6: the retail. What we've learned over the twenty years that 208 00:10:59,120 --> 00:11:03,080 Speaker 6: we're doing business business with small businesses is that they're 209 00:11:03,160 --> 00:11:07,400 Speaker 6: still in the attendant, inside the store, inside the whatever 210 00:11:07,480 --> 00:11:11,640 Speaker 6: it is that you're selling does not a good product 211 00:11:11,880 --> 00:11:16,640 Speaker 6: for those small businesses, and we are extending that into 212 00:11:16,720 --> 00:11:19,000 Speaker 6: other countries as well. 213 00:11:19,480 --> 00:11:23,000 Speaker 5: Our thanks to Nayak's chief financial officer, Sagit Manor coming 214 00:11:23,080 --> 00:11:25,520 Speaker 5: up a look at where we are with robotaxis in 215 00:11:25,559 --> 00:11:26,959 Speaker 5: the US and the rest of the world. 216 00:11:27,200 --> 00:11:30,000 Speaker 2: You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in 217 00:11:30,040 --> 00:11:32,120 Speaker 2: depth research and data on two thousand companies and one 218 00:11:32,200 --> 00:11:33,280 Speaker 2: hundred and thirty industries. 219 00:11:33,360 --> 00:11:36,360 Speaker 5: You can access Bloomberg Intelligence via Bigo on the terminal. 220 00:11:36,360 --> 00:11:37,559 Speaker 5: I'm Lisa Matteo and. 221 00:11:37,480 --> 00:11:38,280 Speaker 8: I'm Paul Sweeney. 222 00:11:38,360 --> 00:11:39,439 Speaker 2: This is Bloomberg. 223 00:11:43,480 --> 00:11:48,720 Speaker 1: You're listening to Bloomberg Intelligence with Paul Sweeney on Bloomberg Radio. 224 00:11:49,320 --> 00:11:51,680 Speaker 5: I'm Paul Sweeney and I'm Lisa Matteo filling in on 225 00:11:51,679 --> 00:11:52,760 Speaker 5: Bloomberg Intelligence. 226 00:11:52,880 --> 00:11:54,360 Speaker 2: We move next to some news in the media and 227 00:11:54,440 --> 00:11:55,160 Speaker 2: entertainment space. 228 00:11:55,240 --> 00:11:57,640 Speaker 5: This week we heard that Paramount has acquired the exclusive 229 00:11:57,720 --> 00:12:00,000 Speaker 5: rights to show all events from the Ultimate Fighting Chain 230 00:12:00,040 --> 00:12:02,719 Speaker 5: Championship in the US over the next seven years. It's 231 00:12:02,760 --> 00:12:05,400 Speaker 5: a seven point seven billion dollar deal designed to boost 232 00:12:05,440 --> 00:12:07,600 Speaker 5: Paramount plus streaming service for more. 233 00:12:07,679 --> 00:12:10,360 Speaker 2: Lisa and I were joined by Getha Ranganath and Bloomberg Intelligence. 234 00:12:10,400 --> 00:12:13,080 Speaker 2: Analysts on US media were first to ask Etha if 235 00:12:13,120 --> 00:12:16,079 Speaker 2: the UFC can be considered a good deal for Paramount. 236 00:12:16,360 --> 00:12:19,040 Speaker 9: No one saw this coming. I mean, the Paramount Skuydiance 237 00:12:19,320 --> 00:12:23,040 Speaker 9: transaction just closed last week August seventh, and we were 238 00:12:23,080 --> 00:12:25,640 Speaker 9: still kind of waiting for some inkling of what the 239 00:12:25,679 --> 00:12:28,120 Speaker 9: go to strategy or the go forward strategy would be 240 00:12:28,200 --> 00:12:30,959 Speaker 9: from you know, David Ellison's team. And here you go 241 00:12:31,040 --> 00:12:34,079 Speaker 9: with the bank, you know, paying almost eight billion dollars 242 00:12:34,120 --> 00:12:38,160 Speaker 9: for UFC rights. Now they are premier sports rights, so 243 00:12:38,240 --> 00:12:42,880 Speaker 9: they're definitely making a big statement here. Yes, you're absolutely right. 244 00:12:43,040 --> 00:12:46,480 Speaker 9: UFC has over one hundred million fans in the United States. 245 00:12:46,520 --> 00:12:49,360 Speaker 9: Their current deal is with ESPN. They were getting paid 246 00:12:49,400 --> 00:12:52,120 Speaker 9: about five hundred million a year, so this is you know, 247 00:12:52,120 --> 00:12:54,200 Speaker 9: more than one hundred and twenty percent search so it 248 00:12:54,240 --> 00:12:57,319 Speaker 9: is definitely a pretty penny And what Paramount is hoping 249 00:12:57,480 --> 00:13:00,400 Speaker 9: is that this really gets them onto the sports so 250 00:13:00,520 --> 00:13:03,679 Speaker 9: makes them a must have platform. And we're talking here 251 00:13:03,679 --> 00:13:07,040 Speaker 9: about Paramount Plus, which is their streaming platform, which is 252 00:13:07,080 --> 00:13:10,439 Speaker 9: known for really some great scripted content and some sports. 253 00:13:10,760 --> 00:13:13,439 Speaker 9: But this is really a big way for them to 254 00:13:13,559 --> 00:13:16,000 Speaker 9: kind of make a statement, make a really bold splash 255 00:13:16,080 --> 00:13:17,840 Speaker 9: on the sports streaming stage. 256 00:13:18,000 --> 00:13:19,920 Speaker 5: All right, KEITHA, I'm trying to take this in stride 257 00:13:19,920 --> 00:13:23,040 Speaker 5: because my husband is a big UFC fan, so he 258 00:13:23,120 --> 00:13:25,560 Speaker 5: watches it on ESPN. So does this mean that I 259 00:13:25,720 --> 00:13:29,319 Speaker 5: have to get Paramount Plus on time? Don't tell me. 260 00:13:29,280 --> 00:13:29,640 Speaker 6: That, GIP. 261 00:13:30,720 --> 00:13:34,480 Speaker 9: Sorry, Lisa, Yes, you do because everything all of the 262 00:13:34,559 --> 00:13:38,160 Speaker 9: UFC contents. So you know, what we'd initially thought was 263 00:13:38,200 --> 00:13:41,320 Speaker 9: that UFC was kind of going to split this packages. 264 00:13:41,360 --> 00:13:43,360 Speaker 9: You know, they have the Fight Night, which is the 265 00:13:43,360 --> 00:13:46,920 Speaker 9: weekly bi weekly kind of you know matchups that you see, 266 00:13:47,080 --> 00:13:49,360 Speaker 9: and then they have their big Marquee events, which are 267 00:13:49,360 --> 00:13:51,480 Speaker 9: the numbered events with you know, the likes of O'Connor 268 00:13:51,559 --> 00:13:55,120 Speaker 9: McGregor all these other big superstar players and you got 269 00:13:55,160 --> 00:13:57,160 Speaker 9: to pay out of your pocket for that pay per view. 270 00:13:57,760 --> 00:14:00,760 Speaker 9: They're actually now making all of that content, both the 271 00:14:00,800 --> 00:14:03,880 Speaker 9: market events as well as the Fight Nights, all available 272 00:14:04,160 --> 00:14:07,400 Speaker 9: to Paramount Plus subscribers, so there's no pay per view anymore. 273 00:14:07,640 --> 00:14:09,920 Speaker 9: But yeah, unfortunately your husband's going to have to subscribe 274 00:14:09,960 --> 00:14:10,800 Speaker 9: to Paramount Plus. 275 00:14:11,800 --> 00:14:16,120 Speaker 2: Well, this is what I think you do. Every streamer 276 00:14:16,160 --> 00:14:17,880 Speaker 2: you put on, you have to take one off, go 277 00:14:18,000 --> 00:14:20,320 Speaker 2: to the family. Okay, we're putting on Paramount Plus. 278 00:14:20,720 --> 00:14:21,400 Speaker 8: What are you giving back? 279 00:14:21,400 --> 00:14:22,120 Speaker 5: What are we giving back? 280 00:14:22,200 --> 00:14:24,160 Speaker 8: Yeah, exactly that's how you do it. Thank you, Gaitha. 281 00:14:24,560 --> 00:14:29,480 Speaker 2: What is realistically the buld case for Paramount sky Dance Corporation. 282 00:14:29,920 --> 00:14:32,600 Speaker 9: Yes, I think you know, we we really need of course, 283 00:14:32,640 --> 00:14:34,320 Speaker 9: you know, this kind of tells us that They're definitely 284 00:14:34,320 --> 00:14:36,200 Speaker 9: going to keep the streaming platforms. See some of the 285 00:14:36,440 --> 00:14:39,520 Speaker 9: some of the concerns Paul before, you know, before the 286 00:14:39,520 --> 00:14:42,840 Speaker 9: deal actually closed, was what is sky Dance really interested in? 287 00:14:42,960 --> 00:14:46,360 Speaker 9: So they don't really have any expertise in running TV assets. 288 00:14:46,720 --> 00:14:49,080 Speaker 9: All that they really cared about was the Paramount Studio 289 00:14:49,200 --> 00:14:51,280 Speaker 9: because you know, sky Dance is a big studio and 290 00:14:51,320 --> 00:14:53,160 Speaker 9: they were really really interested in the studio assets. So 291 00:14:53,160 --> 00:14:56,080 Speaker 9: we really didn't have any direction in terms of what 292 00:14:56,120 --> 00:14:59,120 Speaker 9: they were going to do with the cable networks. Viacom 293 00:14:59,320 --> 00:15:02,440 Speaker 9: has a bunch of those. You have the CBS broadcast network, 294 00:15:02,480 --> 00:15:05,360 Speaker 9: you have the Paramount Plus streaming platform. What this deal 295 00:15:05,400 --> 00:15:07,960 Speaker 9: signals is they're definitely interested in the streaming platform and 296 00:15:08,040 --> 00:15:11,520 Speaker 9: the CBS broadcast network because you know, they did say 297 00:15:11,520 --> 00:15:14,200 Speaker 9: that they're going to simulcast some of those UFC games 298 00:15:14,240 --> 00:15:16,240 Speaker 9: on the CBS broadcast networks. I think that is going 299 00:15:16,280 --> 00:15:18,360 Speaker 9: to be a core part of their portfolio. What we're 300 00:15:18,400 --> 00:15:20,040 Speaker 9: still not clear about is what they're going to do 301 00:15:20,080 --> 00:15:22,680 Speaker 9: with some of the cable networks. So you know, whether 302 00:15:22,680 --> 00:15:25,560 Speaker 9: it's a BET or an MTV or a Comedy Central, 303 00:15:25,680 --> 00:15:28,040 Speaker 9: we really don't know what the strategy is there. Chances 304 00:15:28,080 --> 00:15:31,280 Speaker 9: are they might look to monetize those assets, you know, 305 00:15:31,360 --> 00:15:34,000 Speaker 9: sell them. But really I think the big play for 306 00:15:34,320 --> 00:15:37,360 Speaker 9: a paramount is going to come down to make these 307 00:15:37,400 --> 00:15:39,760 Speaker 9: bigger and bigger investments. If they really want to be 308 00:15:40,560 --> 00:15:43,600 Speaker 9: a credible you know, streamer, they have to obviously go 309 00:15:43,640 --> 00:15:46,240 Speaker 9: after these big deals, which is exactly what they did 310 00:15:46,240 --> 00:15:48,120 Speaker 9: with the UFC. We'll have to wait and watch and 311 00:15:48,160 --> 00:15:52,000 Speaker 9: see exactly what their aspirations are, but it depends if 312 00:15:52,000 --> 00:15:55,080 Speaker 9: they're if they're willing to kind of make these big investments, 313 00:15:55,160 --> 00:15:58,520 Speaker 9: they could become you know, arguably one of the top 314 00:15:58,520 --> 00:16:00,800 Speaker 9: three or one of the top four platforms. 315 00:16:00,480 --> 00:16:04,239 Speaker 5: Our Thanks to Geitha Ranganath and Bloomberg Intelligence analyst on US. 316 00:16:04,000 --> 00:16:06,080 Speaker 2: Media, we've moved next to an M and A deal 317 00:16:06,160 --> 00:16:07,160 Speaker 2: in the apparel space. 318 00:16:07,240 --> 00:16:09,720 Speaker 5: This week, we heard that the Canadian clothing company Guilden 319 00:16:09,840 --> 00:16:12,960 Speaker 5: Activewear agreed to buy the US underwear maker Haines Brand 320 00:16:13,200 --> 00:16:16,120 Speaker 5: for about two point two billion dollars in cash and stock. 321 00:16:16,440 --> 00:16:19,880 Speaker 5: Gilden is aiming to double its annual sales with the transaction. 322 00:16:20,360 --> 00:16:22,400 Speaker 2: For more guest host Normal Lind and I were joined 323 00:16:22,400 --> 00:16:26,040 Speaker 2: by Abigail guildbartin Bloomberg Intelligence Footwear and ath leisure analyst. 324 00:16:26,120 --> 00:16:28,600 Speaker 2: We first asked Abbaga able to discuss who Guilden is 325 00:16:28,600 --> 00:16:30,400 Speaker 2: and why they're buying an underwear company. 326 00:16:30,640 --> 00:16:32,960 Speaker 10: I think a lot of people probably own Guilden and 327 00:16:33,040 --> 00:16:37,160 Speaker 10: don't know it right because it's really a basic apparel manufacturer. 328 00:16:37,560 --> 00:16:39,840 Speaker 10: So they create the T shirts that then they sell 329 00:16:39,880 --> 00:16:42,240 Speaker 10: to your favorite sports teams or to Walmart, and then 330 00:16:42,280 --> 00:16:44,360 Speaker 10: they put the logos on it. So they're heavily in 331 00:16:44,480 --> 00:16:48,480 Speaker 10: the printware space. They do have exposure to innerwear, which 332 00:16:48,480 --> 00:16:51,240 Speaker 10: is what Haines is, Haynes' is, you know, the basics underwears, 333 00:16:51,280 --> 00:16:55,080 Speaker 10: bras teas, and they used to be in activewear till 334 00:16:55,080 --> 00:16:58,760 Speaker 10: they spun off Champion, so they're very complimentary. Yes, they 335 00:16:58,800 --> 00:16:59,960 Speaker 10: spent off Champion about a year. 336 00:17:00,320 --> 00:17:03,360 Speaker 7: Okay, interesting and I definitely remember Gilden. As you mentioned, 337 00:17:03,400 --> 00:17:05,080 Speaker 7: when you just start to look into the tags of 338 00:17:05,080 --> 00:17:07,440 Speaker 7: your T shirts, you'll start to see the name pop 339 00:17:07,560 --> 00:17:10,360 Speaker 7: up there. But I mean, what's the latest with consolidation 340 00:17:10,560 --> 00:17:13,439 Speaker 7: more broadly in your industry. I know you have a 341 00:17:13,480 --> 00:17:15,439 Speaker 7: lot of names that you cover that are doing a 342 00:17:15,440 --> 00:17:16,160 Speaker 7: lot of mergers. 343 00:17:16,240 --> 00:17:18,159 Speaker 10: Yeah, definitely, I think you know it comes out of 344 00:17:18,200 --> 00:17:22,439 Speaker 10: time with tariffs and costs looming as well as I 345 00:17:22,440 --> 00:17:25,760 Speaker 10: mean for this acquisition, I think it's been considered for 346 00:17:25,800 --> 00:17:28,040 Speaker 10: a while as actually there was a whole proxy battle 347 00:17:28,080 --> 00:17:30,520 Speaker 10: about it a few years ago where they actually ousted 348 00:17:30,520 --> 00:17:34,440 Speaker 10: the CEO over it, and then he has returned since 349 00:17:34,480 --> 00:17:37,960 Speaker 10: then and they completely changed the board over So this 350 00:17:38,040 --> 00:17:41,000 Speaker 10: didn't come completely out of nowhere. But I think it 351 00:17:41,040 --> 00:17:42,800 Speaker 10: makes a lot of sense just in terms of, you know, 352 00:17:42,840 --> 00:17:46,400 Speaker 10: Gilden's building out their whole manufacturing footprint and it's once 353 00:17:46,440 --> 00:17:48,960 Speaker 10: again really complimentary. They already kind of make everything that 354 00:17:49,000 --> 00:17:51,639 Speaker 10: Haines does, but on a larger scale at a lower cost. 355 00:17:52,160 --> 00:17:56,040 Speaker 2: And Haines Brand's based in Winston Salem, North Carolina. Yeah, 356 00:17:56,040 --> 00:17:59,560 Speaker 2: I'm sure Sarah talk to us about you mentioned the tariffs. 357 00:18:00,040 --> 00:18:02,040 Speaker 2: How is it impacting your world, because I would think 358 00:18:02,040 --> 00:18:03,000 Speaker 2: that would be immediate. 359 00:18:03,520 --> 00:18:06,199 Speaker 10: Yes, so it definitely is impacting my world with you know, 360 00:18:06,240 --> 00:18:09,760 Speaker 10: the footwear brands, but for Guilden and Haines. Actually, Guilden 361 00:18:09,800 --> 00:18:13,480 Speaker 10: is one of the largest users of US cotton, so yes, 362 00:18:13,600 --> 00:18:16,639 Speaker 10: they are probably one of the largest ones, and so 363 00:18:17,280 --> 00:18:19,679 Speaker 10: that is actually going to help them not have to 364 00:18:19,720 --> 00:18:22,120 Speaker 10: deal with as many tariff costs just since products are 365 00:18:22,119 --> 00:18:24,760 Speaker 10: made with US cotton, so they're subject to a lower 366 00:18:24,840 --> 00:18:27,399 Speaker 10: teriff rate, so that's actually something that they can benefit from. 367 00:18:27,600 --> 00:18:30,679 Speaker 10: They also are less exposed to Asia and more in 368 00:18:30,680 --> 00:18:34,240 Speaker 10: Central America as well as Haynes Brands. Their manufacturing footprints 369 00:18:34,280 --> 00:18:37,879 Speaker 10: are very complementary and overlap, so they'll be able to 370 00:18:37,960 --> 00:18:41,560 Speaker 10: kind of mitigate that pretty well. But for Haines Brands, 371 00:18:41,080 --> 00:18:46,840 Speaker 10: its Guilden gives them a much more financial stability and opportunity. 372 00:18:46,280 --> 00:18:49,520 Speaker 5: For that our thanks to Abigail gil Martin Bloomberg Intelligence, 373 00:18:49,520 --> 00:18:51,280 Speaker 5: Footwear and at the Leisure Analyst. 374 00:18:51,480 --> 00:18:53,960 Speaker 2: Each week we look at research from Bloomberg and EF 375 00:18:54,000 --> 00:18:55,800 Speaker 2: previously known as New Energy Finance. 376 00:18:55,840 --> 00:18:58,119 Speaker 5: They're the team at Bloomberg that tracks and analyzes the 377 00:18:58,200 --> 00:19:03,520 Speaker 5: energy transition from commodities to transport, industries, buildings, and agriculture sectors. 378 00:19:03,840 --> 00:19:06,960 Speaker 2: This week we look at the autonomous vehicles robotaxis. Guest 379 00:19:07,000 --> 00:19:09,040 Speaker 2: host Normal Linden and I were joined by Andrew Grant 380 00:19:09,119 --> 00:19:11,240 Speaker 2: be n EF, head of Intelligent Mobility. 381 00:19:11,440 --> 00:19:14,000 Speaker 5: He discussed what's happening in the robotaxi space and some 382 00:19:14,080 --> 00:19:15,960 Speaker 5: of the hot battlegrounds for developers. 383 00:19:16,160 --> 00:19:18,720 Speaker 2: I began by asking Andrew where we are with robotaxis 384 00:19:18,760 --> 00:19:20,440 Speaker 2: in the US. And the rest of the world. 385 00:19:20,520 --> 00:19:22,600 Speaker 11: Wouldn't it be a great way to have a way 386 00:19:22,640 --> 00:19:26,040 Speaker 11: to measure the progress that we have on the robotaxi 387 00:19:26,040 --> 00:19:28,960 Speaker 11: side and the self driving vehicle side. Sometimes it could 388 00:19:28,960 --> 00:19:32,960 Speaker 11: be quite difficult to monitor the sector, and there's a 389 00:19:32,960 --> 00:19:34,760 Speaker 11: lot of promises made and there's a lot happening in 390 00:19:34,800 --> 00:19:37,520 Speaker 11: the kind of AI black box, and what we try 391 00:19:37,560 --> 00:19:41,240 Speaker 11: to do is measure things that you can actually see 392 00:19:41,480 --> 00:19:44,439 Speaker 11: and count. So we've been looking at some real operational 393 00:19:44,440 --> 00:19:46,960 Speaker 11: statistics that have been coming out from some of the 394 00:19:47,040 --> 00:19:50,399 Speaker 11: robotaxi companies and coming up with a way to grade 395 00:19:50,440 --> 00:19:54,359 Speaker 11: how serious an operation is. Can are these projects actually 396 00:19:54,359 --> 00:19:57,480 Speaker 11: operating on public roads? Are they offering their rides to 397 00:19:57,640 --> 00:19:59,080 Speaker 11: the general public or do you need to be on 398 00:19:59,080 --> 00:20:01,680 Speaker 11: a selective weight lift? Are they putting their money where 399 00:20:01,720 --> 00:20:04,840 Speaker 11: their mouths are and charging a fee for the service? 400 00:20:05,080 --> 00:20:08,480 Speaker 11: Do they actually have a safety driver in the vehicle 401 00:20:08,600 --> 00:20:11,000 Speaker 11: or human still supervising in the vehicle or have they 402 00:20:11,000 --> 00:20:14,280 Speaker 11: pulled that? And are they able to operate in all 403 00:20:14,280 --> 00:20:16,960 Speaker 11: weather conditions twenty four hours a day, seven days a week. 404 00:20:17,040 --> 00:20:19,520 Speaker 11: And if they kind of score five out of five 405 00:20:19,840 --> 00:20:23,199 Speaker 11: in our grade, that's a fully functional operational robotaxi service. 406 00:20:24,000 --> 00:20:26,840 Speaker 11: We counted out eight of those operating different cities around 407 00:20:27,160 --> 00:20:29,240 Speaker 11: around the world, I should say around the world. At 408 00:20:29,240 --> 00:20:31,359 Speaker 11: the moment, it's just China in the US. 409 00:20:31,720 --> 00:20:34,199 Speaker 7: Okay, so we're seeing China in the US as the 410 00:20:34,200 --> 00:20:35,040 Speaker 7: two leaders here. 411 00:20:35,480 --> 00:20:39,159 Speaker 11: Yeah, at the moment we have of four companies that 412 00:20:39,200 --> 00:20:43,840 Speaker 11: have met those grades. We do have another sixteen projects 413 00:20:43,840 --> 00:20:46,959 Speaker 11: that are kind of four out of five on our 414 00:20:47,040 --> 00:20:50,680 Speaker 11: ranking metric there. I should mention that Tesla just gets too. 415 00:20:50,760 --> 00:20:53,919 Speaker 11: But a lot of these companies are looking to expand 416 00:20:53,960 --> 00:20:58,680 Speaker 11: outside their home markets, certainly expanding to places like Singapore 417 00:20:58,960 --> 00:21:02,159 Speaker 11: and Middle East and UAE, and then of course Europe, 418 00:21:02,200 --> 00:21:04,560 Speaker 11: which at the moment there's regulations that are kind of 419 00:21:04,600 --> 00:21:07,960 Speaker 11: previncing a wider spread rollout of robotaxis. But a lot 420 00:21:07,960 --> 00:21:11,840 Speaker 11: of these companies are targeting twenty twenty six for deployment 421 00:21:11,880 --> 00:21:14,240 Speaker 11: across a number of European cities. 422 00:21:14,840 --> 00:21:17,720 Speaker 2: So who are the leaders here at this early stage. 423 00:21:17,920 --> 00:21:20,400 Speaker 11: I mean, really, you're talking about Weimer with the most 424 00:21:20,440 --> 00:21:25,200 Speaker 11: projects that meet out grading of fully operational robotaxi services. 425 00:21:25,840 --> 00:21:30,960 Speaker 11: But from the Chinese automakers, the China robotaxi developer side, 426 00:21:31,040 --> 00:21:34,800 Speaker 11: you're also talking about by do we ride ponyai that 427 00:21:34,920 --> 00:21:38,600 Speaker 11: are scoring highly on these metrics and looking to expand. 428 00:21:38,480 --> 00:21:41,000 Speaker 7: What are some of the regulatory hurdles here? Are there 429 00:21:41,040 --> 00:21:44,280 Speaker 7: any areas, in particular in the United States where it's 430 00:21:44,359 --> 00:21:45,719 Speaker 7: a bit more open season. 431 00:21:46,240 --> 00:21:49,359 Speaker 11: It's a very complex regulatory environment at the moment because 432 00:21:49,760 --> 00:21:55,600 Speaker 11: you can kind of have these national federal level ambitions, 433 00:21:55,680 --> 00:21:59,280 Speaker 11: but really it comes down to not just even state level, 434 00:21:59,320 --> 00:22:01,040 Speaker 11: but down to city level, where you need to work 435 00:22:01,080 --> 00:22:03,879 Speaker 11: really closely with a lot of these regulators to deploy 436 00:22:03,960 --> 00:22:08,400 Speaker 11: these services in a tightly geffinced environment. So you need 437 00:22:08,440 --> 00:22:10,879 Speaker 11: to be actively if you're a robotaxy developer, you need 438 00:22:10,960 --> 00:22:13,720 Speaker 11: to be actively talking to a lot of these regulators 439 00:22:13,720 --> 00:22:16,119 Speaker 11: and helping them understand what you're trying to do and 440 00:22:16,160 --> 00:22:18,240 Speaker 11: how you're trying to complement what they want to do 441 00:22:18,320 --> 00:22:21,159 Speaker 11: on the public transport side or on they transport infrastructure 442 00:22:21,200 --> 00:22:23,439 Speaker 11: side to make this work and make it a valuable 443 00:22:23,440 --> 00:22:28,399 Speaker 11: project for both for both entities. So I always describe 444 00:22:28,400 --> 00:22:32,640 Speaker 11: the regulatory environment it's very iterative. You kind of need 445 00:22:32,680 --> 00:22:34,920 Speaker 11: to take one box, proved to your regulators how you're doing, 446 00:22:35,000 --> 00:22:38,399 Speaker 11: and then continue to grow that relationship and kind of 447 00:22:38,400 --> 00:22:41,439 Speaker 11: build the regulations with them, and a lot of knowledge 448 00:22:41,880 --> 00:22:44,600 Speaker 11: exchange needs to happen as you progress. 449 00:22:45,080 --> 00:22:48,080 Speaker 2: Yeah, I'm just looking at yourself driving vehicle tractor at 450 00:22:48,200 --> 00:22:51,520 Speaker 2: wwwwna dot com. Have to be a Bloomberg terminal user, 451 00:22:51,520 --> 00:22:55,360 Speaker 2: I believe, yes, but very very cool. It's an interactive 452 00:22:55,440 --> 00:22:58,320 Speaker 2: kind of model showing you where around the world. So 453 00:22:58,400 --> 00:23:02,280 Speaker 2: what are the gating issues here? Andrew? It's for fuller 454 00:23:02,280 --> 00:23:05,399 Speaker 2: and fuller deployment going out over the next several years. 455 00:23:05,480 --> 00:23:10,960 Speaker 2: Is it regulatory? Is it technology? Is it capital? What 456 00:23:11,040 --> 00:23:14,040 Speaker 2: are the key drivers for just I guess adoption over 457 00:23:14,040 --> 00:23:14,959 Speaker 2: the next seple years. 458 00:23:15,160 --> 00:23:16,800 Speaker 11: I mean, we talk a lot about the technology and 459 00:23:16,840 --> 00:23:19,679 Speaker 11: the regulatory side, and both need to improve, and I 460 00:23:19,680 --> 00:23:22,480 Speaker 11: think both will. What's probably doesn't get enough attention, and 461 00:23:22,520 --> 00:23:24,760 Speaker 11: we're starting to see a lot more focus on that. 462 00:23:24,800 --> 00:23:27,520 Speaker 11: At the moment. Is just the value chain really starting 463 00:23:27,560 --> 00:23:32,000 Speaker 11: to take shape. Building a car, building the software and 464 00:23:32,040 --> 00:23:35,919 Speaker 11: the related hardware that goes into powering a self driving vehicle, 465 00:23:36,800 --> 00:23:41,719 Speaker 11: matching the vehicle with users owning the vehicle. These are 466 00:23:41,720 --> 00:23:45,240 Speaker 11: all things that have different skill sets from a company perspective. 467 00:23:45,240 --> 00:23:47,720 Speaker 11: They have different capital requirements, and they have different paid 468 00:23:47,760 --> 00:23:50,600 Speaker 11: back periods. So we're starting to see different roles for 469 00:23:51,160 --> 00:23:54,119 Speaker 11: in this part of value chain. You're seeing the many 470 00:23:54,200 --> 00:23:57,800 Speaker 11: deals that say Uber has signed over the last eighteen months. 471 00:23:58,160 --> 00:24:01,560 Speaker 11: They've signed deals with at least ten different self driving 472 00:24:01,640 --> 00:24:05,080 Speaker 11: vehicle developers across the taxi and truck space and the 473 00:24:05,119 --> 00:24:08,400 Speaker 11: delivery blot space, I should say as well. And they're 474 00:24:08,440 --> 00:24:13,000 Speaker 11: really trying to put the best foot forward to borrow 475 00:24:13,359 --> 00:24:16,359 Speaker 11: the Jeff Bezos expression just focus on what makes the 476 00:24:16,359 --> 00:24:20,040 Speaker 11: beer taste better and really specialize in the different areas. 477 00:24:20,440 --> 00:24:22,560 Speaker 11: So we're really starting to see a more robust and 478 00:24:22,600 --> 00:24:25,360 Speaker 11: definitive shape form for the robotaxidatty chain. 479 00:24:25,480 --> 00:24:28,359 Speaker 5: Our thanks to Andrew Grant being af head of intelligent 480 00:24:28,440 --> 00:24:31,359 Speaker 5: mobility coming up and in depth look at Treasury Secretary 481 00:24:31,359 --> 00:24:33,760 Speaker 5: Scott Bessen then his role in the Trump administration. 482 00:24:34,119 --> 00:24:37,479 Speaker 2: You're listening to Bloomberg Intelligence on Bloomberg Radio, providing research 483 00:24:37,480 --> 00:24:39,359 Speaker 2: and data on two thousand companies in one hundred and 484 00:24:39,400 --> 00:24:40,080 Speaker 2: thirty industries. 485 00:24:40,119 --> 00:24:43,119 Speaker 5: You can access Bloomberg Intelligence via Big on the terminal. 486 00:24:43,160 --> 00:24:45,240 Speaker 5: I'm Lisa Matteo and Paul Sweeney. 487 00:24:45,280 --> 00:24:46,320 Speaker 8: This is Bloomberg. 488 00:24:53,880 --> 00:24:59,440 Speaker 1: You're listening to Bloomberg Intelligence with Paul Sweeney on Bloomberg Radio. 489 00:25:00,640 --> 00:25:03,199 Speaker 5: And I'm Lisa Matteo filling in on Bloomberg Intelligence. 490 00:25:03,320 --> 00:25:05,520 Speaker 2: We move next to news from the networking Bill Weather 491 00:25:05,600 --> 00:25:08,960 Speaker 2: Cisco Systems. This week, Cisco reported fourth quarter earnings that 492 00:25:09,080 --> 00:25:10,719 Speaker 2: narrowly beat analyst expectations. 493 00:25:10,760 --> 00:25:13,280 Speaker 5: The company also gave a forecast for the current fiscal year, 494 00:25:13,320 --> 00:25:16,640 Speaker 5: with sales between fifty nine and sixty billion dollars. That's 495 00:25:16,720 --> 00:25:20,520 Speaker 5: roughly in line with analysts expectations, and the lukewarm forecast 496 00:25:20,600 --> 00:25:23,840 Speaker 5: disappointed investors who hoped for a boost from massive AI 497 00:25:23,960 --> 00:25:25,000 Speaker 5: data center projects. 498 00:25:25,080 --> 00:25:26,720 Speaker 2: For more on ess, Lisa and I were joined by 499 00:25:26,800 --> 00:25:30,440 Speaker 2: wou Jinho, Bloomberg Intelligence senior technology analysts. The first ask 500 00:25:30,560 --> 00:25:33,160 Speaker 2: Wooje for his takeaways on Cisco earnings. 501 00:25:33,280 --> 00:25:35,760 Speaker 12: At the end of the day, the guidance was a 502 00:25:35,800 --> 00:25:39,200 Speaker 12: reminder that they are still tied to IT spending, and 503 00:25:39,720 --> 00:25:42,800 Speaker 12: you know, I viewed it as more as prudent conservatism 504 00:25:42,840 --> 00:25:44,680 Speaker 12: because they don't know what's happening on the second half 505 00:25:44,720 --> 00:25:48,439 Speaker 12: of the year given where we are, you know, we 506 00:25:48,480 --> 00:25:50,440 Speaker 12: have little visibility in terms of rates as well as 507 00:25:50,480 --> 00:25:54,159 Speaker 12: tire still. 508 00:25:52,600 --> 00:25:55,440 Speaker 2: So the company recognized about one billion dollars in AI 509 00:25:55,520 --> 00:25:59,280 Speaker 2: revenue on fiscal twenty twenty five, and I guess AI 510 00:25:59,320 --> 00:26:02,600 Speaker 2: infrastructure or for large from large cloud of providers who 511 00:26:02,600 --> 00:26:05,000 Speaker 2: are over eight hundred million in the quarter. So where 512 00:26:05,040 --> 00:26:06,159 Speaker 2: do we think these numbers can go? 513 00:26:07,440 --> 00:26:12,280 Speaker 12: Yeah, Look, Paul, they forecasted a billion dollars in orders 514 00:26:12,280 --> 00:26:15,720 Speaker 12: for fiscal twenty five. They double that in fiscal twenty six. 515 00:26:15,840 --> 00:26:19,040 Speaker 12: Recognize the billion of it this year. I wouldn't be 516 00:26:19,119 --> 00:26:23,200 Speaker 12: surprised if AI revenues grow at least another fifty percent 517 00:26:23,280 --> 00:26:27,720 Speaker 12: from here. And they're penetrating multiple pockets right not only 518 00:26:27,760 --> 00:26:30,120 Speaker 12: into the cloud, but if you think about a longer term, 519 00:26:30,400 --> 00:26:33,679 Speaker 12: when enterprise adoption really starts kicking in, there is going 520 00:26:33,720 --> 00:26:34,520 Speaker 12: to be a growth driver. 521 00:26:34,640 --> 00:26:36,280 Speaker 1: So we have to. 522 00:26:36,240 --> 00:26:39,560 Speaker 12: See where it'll be in twenty six and twenty seven 523 00:26:39,560 --> 00:26:42,040 Speaker 12: when enterprise grows. But the partnership with then video should 524 00:26:42,040 --> 00:26:43,960 Speaker 12: be beneficial to the longer term. 525 00:26:44,080 --> 00:26:47,240 Speaker 5: What is it AI sector? Is it just to competitive? 526 00:26:47,280 --> 00:26:49,800 Speaker 5: I mean, who are some of their peers? How are 527 00:26:49,800 --> 00:26:50,840 Speaker 5: they doing against them? 528 00:26:51,400 --> 00:26:54,360 Speaker 12: Well, if we think about it, well, they have multiple 529 00:26:55,080 --> 00:26:58,080 Speaker 12: they're in AI in multiple vectors right, so from a 530 00:26:58,119 --> 00:27:02,399 Speaker 12: networking space as one of the bigger competitors, as well 531 00:27:02,440 --> 00:27:06,880 Speaker 12: as a smaller company called Celestica from they also they're 532 00:27:06,880 --> 00:27:10,520 Speaker 12: also very very big on optical components, and they're coming 533 00:27:10,600 --> 00:27:15,159 Speaker 12: up against companies like Marvel as well as Siena, and 534 00:27:16,440 --> 00:27:21,119 Speaker 12: they also provide AI servers, and think about Dell and HPE. 535 00:27:21,720 --> 00:27:25,960 Speaker 12: So look, is it competitive, yes, but they're one of 536 00:27:26,000 --> 00:27:30,040 Speaker 12: the few American vendors that can actually supply components all 537 00:27:30,080 --> 00:27:31,440 Speaker 12: the way to the system hardware. 538 00:27:32,400 --> 00:27:35,720 Speaker 2: Which what what are companies like Cisco and and Dell 539 00:27:35,800 --> 00:27:39,400 Speaker 2: and some other big American companies throughout the tech stack chain? 540 00:27:39,440 --> 00:27:42,720 Speaker 2: What are they saying just about the environment in terms 541 00:27:42,720 --> 00:27:46,679 Speaker 2: of demand from their customers. Are they sensing waning demand 542 00:27:46,880 --> 00:27:49,320 Speaker 2: or wavering demand? Just to see how some of these 543 00:27:49,440 --> 00:27:51,920 Speaker 2: I don't know, teriffs other economic policies may work out. 544 00:27:52,640 --> 00:27:55,520 Speaker 12: Sure, Paul, you know, Cisco is one of the first 545 00:27:55,720 --> 00:27:58,679 Speaker 12: hardware belt weathers that came out. I will tell you 546 00:27:58,720 --> 00:28:02,400 Speaker 12: from from the numbers that I've seen on the companies 547 00:28:02,400 --> 00:28:05,640 Speaker 12: that have reported, you know, the IT spending environment has 548 00:28:05,640 --> 00:28:08,640 Speaker 12: actually been more resilient than I had thought. I went 549 00:28:08,720 --> 00:28:11,879 Speaker 12: into the quarter with my mediar outlook as being a 550 00:28:11,960 --> 00:28:16,280 Speaker 12: little bit cautious and negative, and quite frankly, the results 551 00:28:16,280 --> 00:28:19,000 Speaker 12: have come in better than I anticipated. The outlooks have 552 00:28:19,080 --> 00:28:21,720 Speaker 12: come in better than I anticipated. But the fact of 553 00:28:21,720 --> 00:28:23,480 Speaker 12: the matter is, I don't know what's going to happen 554 00:28:23,480 --> 00:28:26,119 Speaker 12: past December, and I think the Cisco's guidance reflect that. 555 00:28:26,680 --> 00:28:28,240 Speaker 12: We'll have a better sense in a couple of weeks 556 00:28:28,240 --> 00:28:31,560 Speaker 12: from now when companies like Dell and then HPE after 557 00:28:31,720 --> 00:28:32,919 Speaker 12: Labor Day when they. 558 00:28:32,800 --> 00:28:35,720 Speaker 5: Report, did they talk about their guidance at all about 559 00:28:35,720 --> 00:28:38,520 Speaker 5: the impacts? We mentioned tariff quickly, but did the impact 560 00:28:38,520 --> 00:28:40,560 Speaker 5: of tariffs? If so, like, how do they intend to 561 00:28:40,640 --> 00:28:42,080 Speaker 5: lessen that impact from tariffs? 562 00:28:42,640 --> 00:28:45,920 Speaker 12: You know, you know, Cisco has been probably one of 563 00:28:45,920 --> 00:28:50,560 Speaker 12: the better companies in terms of managing expectations of tariffs 564 00:28:50,880 --> 00:28:54,280 Speaker 12: as well as maneuvering the supply chain with the tariff. 565 00:28:54,320 --> 00:28:58,160 Speaker 12: So in terms of managing expectations, they embedded tariff impact 566 00:28:58,200 --> 00:29:01,240 Speaker 12: in their guidance, and because came in a little bit 567 00:29:01,360 --> 00:29:05,000 Speaker 12: lower than we had anticipated, that actually helped the EPs 568 00:29:05,200 --> 00:29:07,720 Speaker 12: just a little bit going forward. 569 00:29:08,120 --> 00:29:10,520 Speaker 8: You know, all of the guidance. 570 00:29:10,800 --> 00:29:14,240 Speaker 12: Includes the tariff impact. Now, the one thing I will add, 571 00:29:15,200 --> 00:29:18,680 Speaker 12: we're still waiting for the semiconductor rulings as it relates 572 00:29:18,720 --> 00:29:21,840 Speaker 12: to Section two three to two. We'll see where it stands. 573 00:29:22,120 --> 00:29:25,120 Speaker 12: If we do have a negative ruling there, that could 574 00:29:25,600 --> 00:29:29,840 Speaker 12: not only affect Cisco's guidance and margins, but also the 575 00:29:29,840 --> 00:29:31,320 Speaker 12: rest of the electronics space. 576 00:29:31,440 --> 00:29:34,960 Speaker 5: All right, thanks to Woo Jinho, Bloomberg Intelligence Senior technology analyst. 577 00:29:35,280 --> 00:29:37,800 Speaker 2: This week we focus on a Bloomberg Big Takes story 578 00:29:37,920 --> 00:29:42,000 Speaker 2: entitled Scott Bessant on Taris, deficis and Trump's Economic Plan. 579 00:29:42,160 --> 00:29:44,800 Speaker 5: You can find it on Bloomberg dot Com and The Terminal. 580 00:29:45,080 --> 00:29:47,360 Speaker 5: It's also the cover story this week for the Bloomberg 581 00:29:47,400 --> 00:29:48,720 Speaker 5: Business Week magazine. 582 00:29:48,840 --> 00:29:51,400 Speaker 2: The story looks at how US Treasury Secretary Scott Besson 583 00:29:51,560 --> 00:29:54,200 Speaker 2: has the ear of President Donald Trump and why nervous 584 00:29:54,240 --> 00:29:56,560 Speaker 2: investors worldwide hope it stays that way. 585 00:29:56,680 --> 00:29:59,960 Speaker 5: Bloomberg's Eric Shatsker and Daniel Flatley co wrote the story, 586 00:30:00,120 --> 00:30:02,880 Speaker 5: and we're part of the team that recently interviewed Besson. 587 00:30:03,120 --> 00:30:03,840 Speaker 8: Earlier in the week. 588 00:30:03,920 --> 00:30:06,360 Speaker 2: Guest host Norman lind and I were joined by Eric Schatsker, 589 00:30:06,560 --> 00:30:09,440 Speaker 2: editorial director for a Bloomberg New Economy. We began the 590 00:30:09,440 --> 00:30:11,920 Speaker 2: conversation by asking Eric for his key takeaways from the 591 00:30:11,960 --> 00:30:12,680 Speaker 2: best in interview. 592 00:30:12,960 --> 00:30:16,480 Speaker 8: Well, first of all, the man is unbelievably busy. Spent 593 00:30:16,520 --> 00:30:19,600 Speaker 8: a day at the Treasury Department with alcoholague, Dan Flatley 594 00:30:20,320 --> 00:30:23,840 Speaker 8: and to observe how much he gets done in the 595 00:30:23,880 --> 00:30:26,400 Speaker 8: course of the day, including spending an extended amount of 596 00:30:26,440 --> 00:30:29,000 Speaker 8: time with US gives you a window into the life 597 00:30:29,000 --> 00:30:31,880 Speaker 8: of the Treasury Secretary in the Trump administration. And it's 598 00:30:31,920 --> 00:30:35,120 Speaker 8: important to emphasize in the Trump administration because this particular 599 00:30:35,120 --> 00:30:38,920 Speaker 8: Treasury secretary has been given a whole host of responsibilities 600 00:30:38,920 --> 00:30:42,560 Speaker 8: that go beyond that of the typical Treasury secretary. We 601 00:30:42,640 --> 00:30:45,440 Speaker 8: know that the Treasury secretary in any administration is involved 602 00:30:45,440 --> 00:30:48,240 Speaker 8: in tax policy, is involved in economic sanctions, is involved 603 00:30:48,240 --> 00:30:51,600 Speaker 8: in financial regulation and the like. But President Trump has 604 00:30:51,680 --> 00:30:56,280 Speaker 8: tasked Scott Besson with trade negotiations, with striking and not 605 00:30:56,440 --> 00:30:59,920 Speaker 8: just any old trade negotiations China perhaps the most difficult 606 00:31:00,240 --> 00:31:03,960 Speaker 8: negotiation of all, Japan, which was successful, South Korea, which 607 00:31:04,040 --> 00:31:08,080 Speaker 8: was successful, in Indonesia, the list goes on. He's also 608 00:31:08,120 --> 00:31:12,320 Speaker 8: the acting IRS Commissioner. He also crafted the deal that 609 00:31:12,480 --> 00:31:15,600 Speaker 8: the very novel and original deal that the United States 610 00:31:15,640 --> 00:31:19,240 Speaker 8: struck with Ukraine for a share of that country's mineral 611 00:31:19,280 --> 00:31:22,960 Speaker 8: resource wealth back in April. These are not and furthermore, 612 00:31:22,960 --> 00:31:25,800 Speaker 8: I have to add he was instrumental in getting the 613 00:31:25,840 --> 00:31:30,760 Speaker 8: One Big Beautiful Bill through opposition in both among Republicans 614 00:31:30,800 --> 00:31:32,880 Speaker 8: in both the House and the Senate in order to 615 00:31:32,920 --> 00:31:36,360 Speaker 8: meet the president's self imposed July fourth deadline. So Scott 616 00:31:36,400 --> 00:31:40,120 Speaker 8: Besson has taken on way more than your traditional Treasury 617 00:31:40,160 --> 00:31:43,760 Speaker 8: secretary does, and much of that is because the President 618 00:31:43,840 --> 00:31:45,680 Speaker 8: himself has asked him to do so. 619 00:31:46,640 --> 00:31:48,479 Speaker 7: And it seems as though a lot of people see 620 00:31:48,720 --> 00:31:51,240 Speaker 7: Beson as really having the president's ear here. And this 621 00:31:51,320 --> 00:31:54,840 Speaker 7: is a really fantastic story. Okay, what was the most 622 00:31:54,840 --> 00:31:56,959 Speaker 7: surprising element through your conversation with him? 623 00:31:57,000 --> 00:31:57,120 Speaker 11: Oh? 624 00:31:57,160 --> 00:32:01,320 Speaker 8: Well, there's so many surprises. Say that the thing I 625 00:32:01,440 --> 00:32:05,040 Speaker 8: didn't fully appreciate and which he spelled out for us 626 00:32:05,120 --> 00:32:08,440 Speaker 8: and which others spelled out for us, is the degree 627 00:32:08,560 --> 00:32:12,480 Speaker 8: to which this is something he sought after going back 628 00:32:12,520 --> 00:32:16,040 Speaker 8: many years. Besen told us that he thought about joining 629 00:32:16,040 --> 00:32:19,480 Speaker 8: the Trump campaign as early as twenty sixteen, but at 630 00:32:19,480 --> 00:32:21,440 Speaker 8: that time he just started a new hedge fund, Key 631 00:32:21,440 --> 00:32:24,240 Speaker 8: Square Group, and he didn't feel like he could abandon 632 00:32:24,280 --> 00:32:27,920 Speaker 8: his employees or abandon his clients. But what he did 633 00:32:27,960 --> 00:32:30,520 Speaker 8: do was start to get to know the people close 634 00:32:30,560 --> 00:32:35,640 Speaker 8: to Trump almost immediately thereafter, starting with Steve Bannon and 635 00:32:35,680 --> 00:32:40,640 Speaker 8: subsequently Peter Navarro, Stephen Moore, Kevin Hassett. For example, Trump's 636 00:32:40,640 --> 00:32:44,000 Speaker 8: close economic advisors Art Laffer. He went down to see 637 00:32:44,120 --> 00:32:47,600 Speaker 8: Art Laugher in the South, made a pilgrimage of starts 638 00:32:48,200 --> 00:32:53,440 Speaker 8: to get Art Laugher's blessing for his ambitions to become 639 00:32:53,520 --> 00:32:58,000 Speaker 8: Treasury secretary, and these he didn't make known to Trump 640 00:32:58,400 --> 00:33:00,720 Speaker 8: until November of twenty two, three throws, so it was 641 00:33:00,720 --> 00:33:03,760 Speaker 8: almost a six year period in which he was maneuvering 642 00:33:04,160 --> 00:33:07,720 Speaker 8: to position himself that for a shot at Treasury secretary. 643 00:33:07,760 --> 00:33:11,440 Speaker 8: And when he saw Trump in that November twenty twenty 644 00:33:11,480 --> 00:33:13,920 Speaker 8: three meeting at mar A Lago, Trump asked him if 645 00:33:13,920 --> 00:33:16,080 Speaker 8: he wanted the job, if he was interested in being 646 00:33:16,160 --> 00:33:18,680 Speaker 8: fed chair, and Besen said, no, I have another job 647 00:33:18,680 --> 00:33:20,320 Speaker 8: in mind. Very good. 648 00:33:21,680 --> 00:33:25,840 Speaker 2: The Street Eric gives Scott Bessen a fair amount of 649 00:33:25,840 --> 00:33:29,080 Speaker 2: credit for walking to President back from maybe some of 650 00:33:29,120 --> 00:33:33,080 Speaker 2: the more difficult tariffs that were initially announced. Is that 651 00:33:33,120 --> 00:33:36,840 Speaker 2: a valid point. Did Scott Besson play a big role 652 00:33:36,920 --> 00:33:39,040 Speaker 2: in walking the president back a little bit and does 653 00:33:39,040 --> 00:33:40,840 Speaker 2: he take credit for that or is he kind of demure? 654 00:33:41,200 --> 00:33:46,600 Speaker 8: Besson insists that his job is not to explain things 655 00:33:46,600 --> 00:33:50,520 Speaker 8: to the president or to advise the president. It is 656 00:33:50,560 --> 00:33:54,120 Speaker 8: to present the president with a series of options. Here's 657 00:33:54,120 --> 00:33:56,800 Speaker 8: path one, here's path two, here's here's path three. And 658 00:33:56,840 --> 00:33:59,360 Speaker 8: I will explain to you where we get if we 659 00:33:59,440 --> 00:34:01,600 Speaker 8: go down one, if we go down two, or if 660 00:34:01,600 --> 00:34:04,440 Speaker 8: we go down three. And he leaves it ultimately for 661 00:34:04,480 --> 00:34:07,920 Speaker 8: Trump to make the decision. That's very I wouldn't say 662 00:34:07,920 --> 00:34:10,920 Speaker 8: that's unique to this president, but Trump has a very 663 00:34:10,960 --> 00:34:14,240 Speaker 8: particular view of his role as a decider in chief 664 00:34:14,520 --> 00:34:16,880 Speaker 8: in this administration that is perhaps different from what we 665 00:34:16,920 --> 00:34:20,319 Speaker 8: saw with Biden, or with Obama, or even going back 666 00:34:20,360 --> 00:34:22,920 Speaker 8: in history to other Republicans like George W. Bush and 667 00:34:23,000 --> 00:34:27,000 Speaker 8: maybe even Ronald Reagan. So Besont does not claim credit 668 00:34:27,400 --> 00:34:30,920 Speaker 8: for being the de escalationist, but it is clear talking 669 00:34:30,920 --> 00:34:34,239 Speaker 8: to people around him and to understanding how the market 670 00:34:34,560 --> 00:34:38,600 Speaker 8: thinks market psychology, if you will, which is one of 671 00:34:38,640 --> 00:34:41,160 Speaker 8: his areas of expertise, having been a macro hedge fund 672 00:34:41,239 --> 00:34:45,160 Speaker 8: manager for almost forty years. That is where it really counts. 673 00:34:45,160 --> 00:34:48,880 Speaker 8: The market trusts him, and the market, based on its observations, 674 00:34:48,960 --> 00:34:51,560 Speaker 8: draws these conclusions rightly or wrongly. 675 00:34:51,920 --> 00:34:54,799 Speaker 2: Does he share any concerns he may have about just 676 00:34:54,920 --> 00:34:59,360 Speaker 2: getting somehow involved in some of the crossfire that it 677 00:34:59,400 --> 00:35:02,520 Speaker 2: happens around President Trump and getting into President Trump's bad 678 00:35:02,600 --> 00:35:04,839 Speaker 2: graces or just kind of I mean, because it's such 679 00:35:04,840 --> 00:35:07,800 Speaker 2: a perilous those people that fight fly close to President 680 00:35:07,880 --> 00:35:10,120 Speaker 2: Trump historically have done at their own risk. 681 00:35:10,640 --> 00:35:12,560 Speaker 8: Well, the former vice president, so. 682 00:35:12,560 --> 00:35:15,680 Speaker 2: Yeah, how does he negotiate? Does he even acknowledge that 683 00:35:15,760 --> 00:35:16,239 Speaker 2: that's a risk. 684 00:35:17,400 --> 00:35:21,600 Speaker 8: What I divine from the conversations we had with the 685 00:35:21,640 --> 00:35:26,840 Speaker 8: Treasury Secretary is that it there is a formula for 686 00:35:27,000 --> 00:35:34,560 Speaker 8: success in the Trump administration, and it means making certain 687 00:35:34,680 --> 00:35:36,960 Speaker 8: compromises if you will with yourself. You can come in 688 00:35:37,000 --> 00:35:39,160 Speaker 8: with your own ideas, but it is not your job 689 00:35:39,200 --> 00:35:42,000 Speaker 8: to advance that agenda. So you have to make some 690 00:35:42,040 --> 00:35:46,440 Speaker 8: compromises if you don't. And Steven Minuchin, the former treasure secretary, 691 00:35:46,440 --> 00:35:49,439 Speaker 8: points this out, if you cannot represent the president well, 692 00:35:49,440 --> 00:35:52,279 Speaker 8: in other words, if you can't get behind what the 693 00:35:52,280 --> 00:35:56,160 Speaker 8: president wants, the role has no power. What's the point 694 00:35:56,200 --> 00:35:59,000 Speaker 8: of being in DC. What's the point of abandoning a 695 00:35:59,040 --> 00:36:01,360 Speaker 8: forty year career in finance where your rose to be 696 00:36:01,400 --> 00:36:05,200 Speaker 8: one of the most successful hedge fund managers? And have 697 00:36:06,040 --> 00:36:08,640 Speaker 8: you know for it all to be worthless, had to 698 00:36:08,680 --> 00:36:10,120 Speaker 8: have no power. No, you want to be able to 699 00:36:10,120 --> 00:36:13,279 Speaker 8: wield influence and get things done. And that's very much 700 00:36:13,320 --> 00:36:16,200 Speaker 8: in the back of Scott Besant's mind. What's my legacy 701 00:36:16,239 --> 00:36:17,800 Speaker 8: as Treasury Secretary going. 702 00:36:17,680 --> 00:36:21,480 Speaker 5: To be our Thanks to Eric Shatzker, editorial Director Bloomberg 703 00:36:21,520 --> 00:36:22,800 Speaker 5: New Economy, that's. 704 00:36:22,640 --> 00:36:25,840 Speaker 2: This week's edition of Bloomberg Intelligence on Bloomberg Radio, providing 705 00:36:25,840 --> 00:36:28,400 Speaker 2: in depth research and data on two thousand companies in 706 00:36:28,400 --> 00:36:29,640 Speaker 2: one hundred and thirty industries. 707 00:36:29,719 --> 00:36:32,200 Speaker 5: And remember you can access Bloomberg Intelligence via b I 708 00:36:32,280 --> 00:36:34,319 Speaker 5: go on the terminal. I'm Lisa Mattheo and. 709 00:36:34,360 --> 00:36:35,080 Speaker 8: I'm Paul Sweeney. 710 00:36:35,160 --> 00:36:35,719 Speaker 11: Stay with us. 711 00:36:35,800 --> 00:36:38,200 Speaker 2: Today's top stories and global business headlines are coming up 712 00:36:38,440 --> 00:36:43,120 Speaker 2: right now.