WEBVTT - BI Weekend: Deere Earnings, Paramount, UFC Deal 0:00:00.280 --> 0:00:11.280 Bloomberg Audio Studios, podcasts, radio news. This is Bloomberg Intelligence 0:00:11.440 --> 0:00:12.520 with Paul Sweeney. 0:00:12.640 --> 0:00:15.920 The real app performance has been the US corporate high yield. 0:00:15.960 --> 0:00:19.639 These are two big time blue chip companies. One person's 0:00:19.640 --> 0:00:22.480 cast is another person's animal spirits. 0:00:22.120 --> 0:00:25.880 Breaking market headlines and corporate news from across the globe 0:00:25.880 --> 0:00:26.279 our viewer. 0:00:26.320 --> 0:00:27.960 If the economy is slowing down. 0:00:27.920 --> 0:00:30.080 There is the possibility of the debt spirals. 0:00:30.160 --> 0:00:32.680 Both Finum Competing and AI are going to power the future. 0:00:32.760 --> 0:00:36.080 People are just buying everything with tex Bloomberg Intelligence with 0:00:36.240 --> 0:00:40.440 Paul Sweeney on Bloomberg Radio, YouTube and Bloomberg Originals. 0:00:41.560 --> 0:00:43.879 I'm Paul Sweeney and I'm Lisa Matteo filling in on 0:00:43.920 --> 0:00:45.000 Bloomberg Intelligence. 0:00:45.159 --> 0:00:47.640 Today's Bloomberg Intelligence Show we dig inside the big business 0:00:47.680 --> 0:00:50.080 stories impacting Wall Street and the global markets. 0:00:49.760 --> 0:00:51.920 Aage in every week we provide in depth research and 0:00:52.040 --> 0:00:53.960 data on some of the two thousand companies and one 0:00:54.040 --> 0:00:56.880 hundred and thirty industries are analysts cover worldwide. 0:00:57.000 --> 0:00:58.920 Today we'll look at al Paramount buying the rights to 0:00:59.040 --> 0:01:01.320 UFC fights will impact it's streaming service. 0:01:01.360 --> 0:01:03.240 Well, it's a look at earnings from the networking bell 0:01:03.240 --> 0:01:04.920 Weather Cisco Systems. 0:01:04.680 --> 0:01:06.520 First, we look at third quarter earnings from the farm 0:01:06.560 --> 0:01:07.679 at machinery leader Deer. 0:01:07.880 --> 0:01:10.800 This week, Deer reported earnings that beat analyst projections, but 0:01:10.840 --> 0:01:13.920 the company trimmed its projected net income for twenty twenty five. 0:01:14.319 --> 0:01:16.680 This comes as customers were made cautious due to trade 0:01:16.800 --> 0:01:18.880 uncertainty and the health of the US economy. 0:01:19.040 --> 0:01:20.920 For more, Lisa and I were joined by Chris Chielino, 0:01:21.000 --> 0:01:24.800 Bloomberg Intelligence Senior US machinery analyst. We first asked Christopher's 0:01:24.880 --> 0:01:26.360 key takeaways from Deer earnings. 0:01:26.520 --> 0:01:29.360 Listen, I mean, this really wasn't a particularly great quarter. 0:01:29.920 --> 0:01:33.160 Three key results were mixed at best. It was really 0:01:33.400 --> 0:01:36.920 a low quality earnings beat, primarily driven by a lower 0:01:36.959 --> 0:01:39.360 tax rate. And as you alluded to, they did cut 0:01:39.360 --> 0:01:42.559 their twenty to twenty five guidance, But to be honest, 0:01:42.560 --> 0:01:45.440 I don't think that really changes the investment thesis here. 0:01:45.800 --> 0:01:48.160 You know, we still expect earnings to bottom this year. 0:01:48.480 --> 0:01:51.160 We're still looking at a very you know, gradual recovery 0:01:51.240 --> 0:01:54.440 as twenty twenty six unfolds. The reduction in the outlook 0:01:54.480 --> 0:01:58.000 was really driven by weakness in their construction business, and 0:01:58.040 --> 0:01:59.560 it appears to us that it was really more of 0:01:59.600 --> 0:02:02.520 a function of some of the higher tariffs and costs 0:02:02.520 --> 0:02:05.520 coming through. We knew that construction forestry was really going 0:02:05.600 --> 0:02:07.840 to bear the brunt of the tariff impact, but this 0:02:07.920 --> 0:02:09.680 court just came in, you know, a little bit more 0:02:09.720 --> 0:02:12.600 of a headwind that we anticipated. It doesn't appear to 0:02:12.639 --> 0:02:14.440 be that there's been much of a change in terms 0:02:14.440 --> 0:02:17.400 of you know, farm fundamentals and their appetite to go 0:02:17.440 --> 0:02:18.320 out and buy equipment. 0:02:18.600 --> 0:02:21.120 Hey, Qrich, can you get more into the struggle that 0:02:21.360 --> 0:02:23.680 farmers are facing that that's impacting deer. 0:02:23.960 --> 0:02:26.480 Sure, you know, we've been in this kind of prolonged 0:02:26.480 --> 0:02:30.200 downturn in the ag ecotomy. Crop prices continued to deteriorate, 0:02:30.800 --> 0:02:33.840 farm fundamentals remain weak, interest rates remain high. We have 0:02:33.960 --> 0:02:36.520 the you know, the overhanger, the uncertainty around the trade 0:02:36.600 --> 0:02:40.600 environment and export market access. Really there's really no signs 0:02:40.680 --> 0:02:42.880 or i would, you know, say green shoots yet that 0:02:42.919 --> 0:02:46.359 we're at this inflection point. I think the positive takeaway 0:02:46.480 --> 0:02:50.280 is that, you know, inventories are coming down, deer's not 0:02:50.320 --> 0:02:52.919 going to have to massively underproduce a retail demand next year. 0:02:52.919 --> 0:02:55.120 So even if we're looking at a flatish type of 0:02:55.200 --> 0:02:59.239 environment in terms of underlying retail demand. We're still looking 0:02:59.240 --> 0:03:02.480 at probably higher production and some pricing coming through, which 0:03:02.520 --> 0:03:04.960 should still generate some operating leverage in the business. 0:03:05.880 --> 0:03:11.440 So, Chris, when demand is down for their core farm equipment, 0:03:11.440 --> 0:03:14.120 what does deer typically do? Do they let inventories build? 0:03:14.160 --> 0:03:16.600 Do they get promotional to move inventory out the door? 0:03:16.639 --> 0:03:17.960 How did they usually manage that? 0:03:19.120 --> 0:03:21.639 Yeah, so this is it's a delicate balancing act, right. 0:03:21.680 --> 0:03:25.600 I mean, it's almost impossible to time the cycle. And 0:03:25.720 --> 0:03:27.799 what they've been doing, you know, for the better part 0:03:27.800 --> 0:03:29.840 of this year, and even at the end of last year, 0:03:30.280 --> 0:03:32.959 they had been underproducing retail demand to bring down those 0:03:33.000 --> 0:03:37.080 elevated inventories. They've done really a commendable job on new equipment. 0:03:37.560 --> 0:03:39.520 The big issue right now is still on the used 0:03:39.560 --> 0:03:43.480 equipment inventory side, particularly on tractors, which are still quite elevated. 0:03:44.040 --> 0:03:47.560 And you're right, they are allocating more merchandising programs and 0:03:47.600 --> 0:03:50.960 pool funds to help address that issue and move the equipment. 0:03:51.320 --> 0:03:53.480 And I think you see that partly reflected in their 0:03:53.520 --> 0:03:57.360 production precision ad business this quarter and pricing actually flip negative, 0:03:57.360 --> 0:03:59.920 which was a surprise to us. It does appear that 0:04:00.160 --> 0:04:03.440 this is you know, relatively transitory. We should expect pricing 0:04:03.480 --> 0:04:06.600 to bounce back next quarter. But yeah, it's been a 0:04:06.760 --> 0:04:09.000 you know, they've done a real good job of managing inventories. 0:04:09.040 --> 0:04:10.880 It's just you know, when you're slogging along through the 0:04:11.160 --> 0:04:14.680 bottom of the cycle here, it does become quite challenging. 0:04:14.840 --> 0:04:16.160 So then I got to follo up, are you still 0:04:16.160 --> 0:04:18.480 cautious about the pace of their recovery? 0:04:19.000 --> 0:04:22.520 Yes, you know, I would say signs of a recovery 0:04:22.520 --> 0:04:25.040 are still you know, pretty elusive to us. And if 0:04:25.040 --> 0:04:26.880 you just look over the last couple of months, you know, 0:04:26.960 --> 0:04:29.840 you continue to see further downward pressure on crop prices, 0:04:29.839 --> 0:04:31.080 which at the end of the day is one of 0:04:31.120 --> 0:04:34.680 the bigger drivers of deer's business and farmer cash receipts. 0:04:35.080 --> 0:04:37.640 We had a pretty ugly WASDI report this week. You know, 0:04:37.680 --> 0:04:39.400 it looks like we're going to get another year of 0:04:39.440 --> 0:04:44.560 record corn production, so those stockpiles continue to build, which 0:04:44.640 --> 0:04:46.040 is really going to keep a you know, somewhat of 0:04:46.040 --> 0:04:48.120 a stealing on crop prices here in the near term. 0:04:48.520 --> 0:04:51.160 So we think this recovery is going to look much 0:04:51.160 --> 0:04:54.119 more modest or subdued than what we typically see during 0:04:54.120 --> 0:04:57.360 a normal cycle. Right now, we're still anticipating you know, 0:04:57.400 --> 0:04:59.920 a modest you know, flat to up five percent. Next 0:05:00.080 --> 0:05:03.159 here in terms of underlying retail demand for lar Jack, 0:05:03.240 --> 0:05:04.680 particularly in North America. 0:05:04.800 --> 0:05:07.719 All right, thanks to Chris Chielino, Bloomberg Intelligence Senior US 0:05:07.720 --> 0:05:08.720 machinery analyst. 0:05:08.880 --> 0:05:11.120 We moved next to a conversation about the global fintech 0:05:11.160 --> 0:05:14.360 company ny X. NYAX trades on the NASDAC under the 0:05:14.400 --> 0:05:16.120 ticker NYAX. 0:05:16.279 --> 0:05:18.680 The company is focused on payment software and devices for 0:05:18.720 --> 0:05:21.560 the self service space where no cashier is present, and 0:05:21.600 --> 0:05:24.160 the company recently reported second quarter profit that more than 0:05:24.279 --> 0:05:26.039 doubled analyst expectations. 0:05:26.200 --> 0:05:28.200 This week, guest host Normal Lind and I were joined 0:05:28.200 --> 0:05:31.479 by nyak's chief financial officer, Segit Manure, and we began 0:05:31.560 --> 0:05:34.200 the conversation by asking Segite for more background on what 0:05:34.360 --> 0:05:35.200 NIAX does. 0:05:35.680 --> 0:05:38.960 So we are actually the global leader in payment and 0:05:39.080 --> 0:05:42.360 management solution for the unattended market. And what does it 0:05:42.600 --> 0:05:47.240 mean unattended? It's really the vending machine massals chair ev 0:05:47.440 --> 0:05:50.960 chargers when it's just you in front of the machine, 0:05:50.960 --> 0:05:55.440 does not cashier in between. And in fact, if you 0:05:55.600 --> 0:05:59.960 bought a drink in a vending machine lately at the JFKA, 0:06:00.200 --> 0:06:04.280 you probably used one of our Nayaks Yellow devices. So 0:06:05.320 --> 0:06:08.279 we have more than hundred thousand customers. We sell our 0:06:08.320 --> 0:06:10.920 product in more than one hundred and twenty countries, and 0:06:10.960 --> 0:06:14.160 we have a very simple mission statement to. 0:06:14.160 --> 0:06:16.560 Help our customers grow the business. What does it mean? 0:06:16.880 --> 0:06:21.279 Increase their revenue, decrease their cost and through loyalty, create 0:06:21.360 --> 0:06:25.040 that stickness with our customers with their customers. 0:06:25.520 --> 0:06:29.279 How do you stay ahead in today's fintech landscape? Of 0:06:29.279 --> 0:06:30.960 course there's a lot of players now. 0:06:32.720 --> 0:06:37.880 So actually in our area there's not a lot of competition. 0:06:38.440 --> 0:06:42.159 I'm talking about the payment and in the unattended space. 0:06:42.760 --> 0:06:46.239 So in fact, you know, we are the only global, 0:06:46.240 --> 0:06:52.159 as I said, a player in this unattended space. It's 0:06:52.200 --> 0:06:57.120 a very fragmented business and decentralized, so there's a lot 0:06:57.160 --> 0:07:01.279 of small players and we are with our global solution 0:07:01.640 --> 0:07:06.480 basically integrated hardware, payment and services all together, we can 0:07:06.520 --> 0:07:09.680 bring that to the local market. It's also a very 0:07:09.760 --> 0:07:13.920 highly regulated market, so there's a lot of barriers to entry, 0:07:14.440 --> 0:07:19.320 so whether it's a regulation on payment, whether it's privacy, 0:07:19.800 --> 0:07:23.360 and with our global solution, with us being there for 0:07:23.480 --> 0:07:26.680 twenty years, we were able to overcome that. We look 0:07:26.720 --> 0:07:28.800 at ourselves as a payment company, and what do you 0:07:28.840 --> 0:07:30.239 need as a payment company? 0:07:30.280 --> 0:07:31.920 You need basically three things. 0:07:31.960 --> 0:07:35.880 You need the trust, you need the scalability, and you 0:07:35.960 --> 0:07:39.240 really need the easy doing business. So from a trust perspective, 0:07:39.760 --> 0:07:42.800 we build that trust over the twenty years. We have 0:07:42.840 --> 0:07:46.880 a very strong brand. Look now for the yellow devices. 0:07:46.920 --> 0:07:50.360 You would see that everywhere from an easy to do 0:07:50.520 --> 0:07:53.200 business with it's again it's a bit to B to see. 0:07:53.280 --> 0:07:54.880 So we have a very you know, it's a high 0:07:54.920 --> 0:07:58.080 profile company. You go to whether it's the cow wash 0:07:58.160 --> 0:08:00.600 to the vending machine and you see us. So B 0:08:00.680 --> 0:08:05.280 to B it's all about regulation and we were able 0:08:05.360 --> 0:08:08.119 to overcome that. When it comes to B to see, 0:08:08.400 --> 0:08:10.720 as I said, it's in front of us and you 0:08:10.800 --> 0:08:13.520 want that in a nanosecond to get your snack, to 0:08:13.560 --> 0:08:17.280 get your coffee. So on scalability, this is where we 0:08:17.320 --> 0:08:20.080 are focusing right. This is what takes time to build. 0:08:20.560 --> 0:08:23.120 And we've showed that we are using more than eighty 0:08:23.360 --> 0:08:27.800 distributors all around the world right, so we are setying 0:08:27.840 --> 0:08:31.000 our products straight to the OEM. So when the vending machine, 0:08:31.040 --> 0:08:35.880 the massage share, the kid ride are coming from the manufacturers, 0:08:36.080 --> 0:08:39.680 it will already bring that NIX device. 0:08:39.760 --> 0:08:42.720 Talk to us about the EV business electric vehicle business. 0:08:42.760 --> 0:08:45.600 How are you guys approaching that? What is your expectation 0:08:45.760 --> 0:08:47.920 for how that business will grow for you? 0:08:49.320 --> 0:08:50.800 So great question. 0:08:50.920 --> 0:08:55.040 EV is definitely one of the three main growth drivers 0:08:55.120 --> 0:08:59.080 as we look into twenty twenty five and even beyond. 0:09:00.000 --> 0:09:01.440 There was a few elements there. 0:09:01.480 --> 0:09:05.560 It can be as easy as any unattended verticals that 0:09:05.600 --> 0:09:09.559 we're already in and we're already working with the ivy 0:09:09.559 --> 0:09:13.680 Goo Electrified America Electrifi Canada where we are providing the 0:09:13.720 --> 0:09:15.960 payment device, but it can. 0:09:15.840 --> 0:09:19.320 Also be where we are developed. 0:09:18.840 --> 0:09:22.600 The management suite, the electricity management suite that has a 0:09:22.640 --> 0:09:25.319 lot of regulations around it, and we were able to 0:09:26.040 --> 0:09:30.120 accommodate that as well. And then for small businesses which 0:09:31.080 --> 0:09:33.880 I haven't mentioned that, but most of our customers. 0:09:33.480 --> 0:09:36.040 Are small and small and medium businesses. 0:09:36.840 --> 0:09:40.480 That's where we provide the old solution, the hard well, 0:09:41.160 --> 0:09:46.080 the management electricity basically as well as payment. So iv 0:09:46.280 --> 0:09:51.120 we just signed announced the agreement with Hotel which is 0:09:51.360 --> 0:09:56.080 a potential of one hundred thousand ivy charging stations to 0:09:56.160 --> 0:10:00.920 be deployed in North America and also in Europe and 0:10:00.960 --> 0:10:05.920 many other contracts like that. That shows the potential with 0:10:06.040 --> 0:10:08.120 the fact that we are a global company, so it 0:10:08.160 --> 0:10:12.079 can be done in France or in the state of 0:10:12.679 --> 0:10:18.320 California and you have the same exact product all around 0:10:18.360 --> 0:10:19.400 the globe. 0:10:19.720 --> 0:10:24.040 Are there any particular market gaps or audiences that are 0:10:24.320 --> 0:10:26.120 underserved that you're targeting right now? 0:10:26.800 --> 0:10:29.840 So in the unattended space, which is the majority of 0:10:29.880 --> 0:10:33.360 our revenue today, definitely there's a place on the EV 0:10:33.720 --> 0:10:37.640 to grow and the electric vehicle charges, smart coolers is 0:10:37.640 --> 0:10:44.600 a very fast growing area parking as well micro market, 0:10:44.720 --> 0:10:48.040 So this is in the unattended, but we also are 0:10:48.920 --> 0:10:53.360 stepping in into more of areas, like as I said, 0:10:53.360 --> 0:10:56.360 the EV charger, that is beyond the payment or even 0:10:56.400 --> 0:10:59.080 the retail. What we've learned over the twenty years that 0:10:59.120 --> 0:11:03.080 we're doing business business with small businesses is that they're 0:11:03.160 --> 0:11:07.400 still in the attendant, inside the store, inside the whatever 0:11:07.480 --> 0:11:11.640 it is that you're selling does not a good product 0:11:11.880 --> 0:11:16.640 for those small businesses, and we are extending that into 0:11:16.720 --> 0:11:19.000 other countries as well. 0:11:19.480 --> 0:11:23.000 Our thanks to Nayak's chief financial officer, Sagit Manor coming 0:11:23.080 --> 0:11:25.520 up a look at where we are with robotaxis in 0:11:25.559 --> 0:11:26.959 the US and the rest of the world. 0:11:27.200 --> 0:11:30.000 You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in 0:11:30.040 --> 0:11:32.120 depth research and data on two thousand companies and one 0:11:32.200 --> 0:11:33.280 hundred and thirty industries. 0:11:33.360 --> 0:11:36.360 You can access Bloomberg Intelligence via Bigo on the terminal. 0:11:36.360 --> 0:11:37.559 I'm Lisa Matteo and. 0:11:37.480 --> 0:11:38.280 I'm Paul Sweeney. 0:11:38.360 --> 0:11:39.439 This is Bloomberg. 0:11:43.480 --> 0:11:48.720 You're listening to Bloomberg Intelligence with Paul Sweeney on Bloomberg Radio. 0:11:49.320 --> 0:11:51.680 I'm Paul Sweeney and I'm Lisa Matteo filling in on 0:11:51.679 --> 0:11:52.760 Bloomberg Intelligence. 0:11:52.880 --> 0:11:54.360 We move next to some news in the media and 0:11:54.440 --> 0:11:55.160 entertainment space. 0:11:55.240 --> 0:11:57.640 This week we heard that Paramount has acquired the exclusive 0:11:57.720 --> 0:12:00.000 rights to show all events from the Ultimate Fighting Chain 0:12:00.040 --> 0:12:02.719 Championship in the US over the next seven years. It's 0:12:02.760 --> 0:12:05.400 a seven point seven billion dollar deal designed to boost 0:12:05.440 --> 0:12:07.600 Paramount plus streaming service for more. 0:12:07.679 --> 0:12:10.360 Lisa and I were joined by Getha Ranganath and Bloomberg Intelligence. 0:12:10.400 --> 0:12:13.080 Analysts on US media were first to ask Etha if 0:12:13.120 --> 0:12:16.079 the UFC can be considered a good deal for Paramount. 0:12:16.360 --> 0:12:19.040 No one saw this coming. I mean, the Paramount Skuydiance 0:12:19.320 --> 0:12:23.040 transaction just closed last week August seventh, and we were 0:12:23.080 --> 0:12:25.640 still kind of waiting for some inkling of what the 0:12:25.679 --> 0:12:28.120 go to strategy or the go forward strategy would be 0:12:28.200 --> 0:12:30.959 from you know, David Ellison's team. And here you go 0:12:31.040 --> 0:12:34.079 with the bank, you know, paying almost eight billion dollars 0:12:34.120 --> 0:12:38.160 for UFC rights. Now they are premier sports rights, so 0:12:38.240 --> 0:12:42.880 they're definitely making a big statement here. Yes, you're absolutely right. 0:12:43.040 --> 0:12:46.480 UFC has over one hundred million fans in the United States. 0:12:46.520 --> 0:12:49.360 Their current deal is with ESPN. They were getting paid 0:12:49.400 --> 0:12:52.120 about five hundred million a year, so this is you know, 0:12:52.120 --> 0:12:54.200 more than one hundred and twenty percent search so it 0:12:54.240 --> 0:12:57.319 is definitely a pretty penny And what Paramount is hoping 0:12:57.480 --> 0:13:00.400 is that this really gets them onto the sports so 0:13:00.520 --> 0:13:03.679 makes them a must have platform. And we're talking here 0:13:03.679 --> 0:13:07.040 about Paramount Plus, which is their streaming platform, which is 0:13:07.080 --> 0:13:10.439 known for really some great scripted content and some sports. 0:13:10.760 --> 0:13:13.439 But this is really a big way for them to 0:13:13.559 --> 0:13:16.000 kind of make a statement, make a really bold splash 0:13:16.080 --> 0:13:17.840 on the sports streaming stage. 0:13:18.000 --> 0:13:19.920 All right, KEITHA, I'm trying to take this in stride 0:13:19.920 --> 0:13:23.040 because my husband is a big UFC fan, so he 0:13:23.120 --> 0:13:25.560 watches it on ESPN. So does this mean that I 0:13:25.720 --> 0:13:29.319 have to get Paramount Plus on time? Don't tell me. 0:13:29.280 --> 0:13:29.640 That, GIP. 0:13:30.720 --> 0:13:34.480 Sorry, Lisa, Yes, you do because everything all of the 0:13:34.559 --> 0:13:38.160 UFC contents. So you know, what we'd initially thought was 0:13:38.200 --> 0:13:41.320 that UFC was kind of going to split this packages. 0:13:41.360 --> 0:13:43.360 You know, they have the Fight Night, which is the 0:13:43.360 --> 0:13:46.920 weekly bi weekly kind of you know matchups that you see, 0:13:47.080 --> 0:13:49.360 and then they have their big Marquee events, which are 0:13:49.360 --> 0:13:51.480 the numbered events with you know, the likes of O'Connor 0:13:51.559 --> 0:13:55.120 McGregor all these other big superstar players and you got 0:13:55.160 --> 0:13:57.160 to pay out of your pocket for that pay per view. 0:13:57.760 --> 0:14:00.760 They're actually now making all of that content, both the 0:14:00.800 --> 0:14:03.880 market events as well as the Fight Nights, all available 0:14:04.160 --> 0:14:07.400 to Paramount Plus subscribers, so there's no pay per view anymore. 0:14:07.640 --> 0:14:09.920 But yeah, unfortunately your husband's going to have to subscribe 0:14:09.960 --> 0:14:10.800 to Paramount Plus. 0:14:11.800 --> 0:14:16.120 Well, this is what I think you do. Every streamer 0:14:16.160 --> 0:14:17.880 you put on, you have to take one off, go 0:14:18.000 --> 0:14:20.320 to the family. Okay, we're putting on Paramount Plus. 0:14:20.720 --> 0:14:21.400 What are you giving back? 0:14:21.400 --> 0:14:22.120 What are we giving back? 0:14:22.200 --> 0:14:24.160 Yeah, exactly that's how you do it. Thank you, Gaitha. 0:14:24.560 --> 0:14:29.480 What is realistically the buld case for Paramount sky Dance Corporation. 0:14:29.920 --> 0:14:32.600 Yes, I think you know, we we really need of course, 0:14:32.640 --> 0:14:34.320 you know, this kind of tells us that They're definitely 0:14:34.320 --> 0:14:36.200 going to keep the streaming platforms. See some of the 0:14:36.440 --> 0:14:39.520 some of the concerns Paul before, you know, before the 0:14:39.520 --> 0:14:42.840 deal actually closed, was what is sky Dance really interested in? 0:14:42.960 --> 0:14:46.360 So they don't really have any expertise in running TV assets. 0:14:46.720 --> 0:14:49.080 All that they really cared about was the Paramount Studio 0:14:49.200 --> 0:14:51.280 because you know, sky Dance is a big studio and 0:14:51.320 --> 0:14:53.160 they were really really interested in the studio assets. So 0:14:53.160 --> 0:14:56.080 we really didn't have any direction in terms of what 0:14:56.120 --> 0:14:59.120 they were going to do with the cable networks. Viacom 0:14:59.320 --> 0:15:02.440 has a bunch of those. You have the CBS broadcast network, 0:15:02.480 --> 0:15:05.360 you have the Paramount Plus streaming platform. What this deal 0:15:05.400 --> 0:15:07.960 signals is they're definitely interested in the streaming platform and 0:15:08.040 --> 0:15:11.520 the CBS broadcast network because you know, they did say 0:15:11.520 --> 0:15:14.200 that they're going to simulcast some of those UFC games 0:15:14.240 --> 0:15:16.240 on the CBS broadcast networks. I think that is going 0:15:16.280 --> 0:15:18.360 to be a core part of their portfolio. What we're 0:15:18.400 --> 0:15:20.040 still not clear about is what they're going to do 0:15:20.080 --> 0:15:22.680 with some of the cable networks. So you know, whether 0:15:22.680 --> 0:15:25.560 it's a BET or an MTV or a Comedy Central, 0:15:25.680 --> 0:15:28.040 we really don't know what the strategy is there. Chances 0:15:28.080 --> 0:15:31.280 are they might look to monetize those assets, you know, 0:15:31.360 --> 0:15:34.000 sell them. But really I think the big play for 0:15:34.320 --> 0:15:37.360 a paramount is going to come down to make these 0:15:37.400 --> 0:15:39.760 bigger and bigger investments. If they really want to be 0:15:40.560 --> 0:15:43.600 a credible you know, streamer, they have to obviously go 0:15:43.640 --> 0:15:46.240 after these big deals, which is exactly what they did 0:15:46.240 --> 0:15:48.120 with the UFC. We'll have to wait and watch and 0:15:48.160 --> 0:15:52.000 see exactly what their aspirations are, but it depends if 0:15:52.000 --> 0:15:55.080 they're if they're willing to kind of make these big investments, 0:15:55.160 --> 0:15:58.520 they could become you know, arguably one of the top 0:15:58.520 --> 0:16:00.800 three or one of the top four platforms. 0:16:00.480 --> 0:16:04.239 Our Thanks to Geitha Ranganath and Bloomberg Intelligence analyst on US. 0:16:04.000 --> 0:16:06.080 Media, we've moved next to an M and A deal 0:16:06.160 --> 0:16:07.160 in the apparel space. 0:16:07.240 --> 0:16:09.720 This week, we heard that the Canadian clothing company Guilden 0:16:09.840 --> 0:16:12.960 Activewear agreed to buy the US underwear maker Haines Brand 0:16:13.200 --> 0:16:16.120 for about two point two billion dollars in cash and stock. 0:16:16.440 --> 0:16:19.880 Gilden is aiming to double its annual sales with the transaction. 0:16:20.360 --> 0:16:22.400 For more guest host Normal Lind and I were joined 0:16:22.400 --> 0:16:26.040 by Abigail guildbartin Bloomberg Intelligence Footwear and ath leisure analyst. 0:16:26.120 --> 0:16:28.600 We first asked Abbaga able to discuss who Guilden is 0:16:28.600 --> 0:16:30.400 and why they're buying an underwear company. 0:16:30.640 --> 0:16:32.960 I think a lot of people probably own Guilden and 0:16:33.040 --> 0:16:37.160 don't know it right because it's really a basic apparel manufacturer. 0:16:37.560 --> 0:16:39.840 So they create the T shirts that then they sell 0:16:39.880 --> 0:16:42.240 to your favorite sports teams or to Walmart, and then 0:16:42.280 --> 0:16:44.360 they put the logos on it. So they're heavily in 0:16:44.480 --> 0:16:48.480 the printware space. They do have exposure to innerwear, which 0:16:48.480 --> 0:16:51.240 is what Haines is, Haynes' is, you know, the basics underwears, 0:16:51.280 --> 0:16:55.080 bras teas, and they used to be in activewear till 0:16:55.080 --> 0:16:58.760 they spun off Champion, so they're very complimentary. Yes, they 0:16:58.800 --> 0:16:59.960 spent off Champion about a year. 0:17:00.320 --> 0:17:03.360 Okay, interesting and I definitely remember Gilden. As you mentioned, 0:17:03.400 --> 0:17:05.080 when you just start to look into the tags of 0:17:05.080 --> 0:17:07.440 your T shirts, you'll start to see the name pop 0:17:07.560 --> 0:17:10.360 up there. But I mean, what's the latest with consolidation 0:17:10.560 --> 0:17:13.439 more broadly in your industry. I know you have a 0:17:13.480 --> 0:17:15.439 lot of names that you cover that are doing a 0:17:15.440 --> 0:17:16.160 lot of mergers. 0:17:16.240 --> 0:17:18.159 Yeah, definitely, I think you know it comes out of 0:17:18.200 --> 0:17:22.439 time with tariffs and costs looming as well as I 0:17:22.440 --> 0:17:25.760 mean for this acquisition, I think it's been considered for 0:17:25.800 --> 0:17:28.040 a while as actually there was a whole proxy battle 0:17:28.080 --> 0:17:30.520 about it a few years ago where they actually ousted 0:17:30.520 --> 0:17:34.440 the CEO over it, and then he has returned since 0:17:34.480 --> 0:17:37.960 then and they completely changed the board over So this 0:17:38.040 --> 0:17:41.000 didn't come completely out of nowhere. But I think it 0:17:41.040 --> 0:17:42.800 makes a lot of sense just in terms of, you know, 0:17:42.840 --> 0:17:46.400 Gilden's building out their whole manufacturing footprint and it's once 0:17:46.440 --> 0:17:48.960 again really complimentary. They already kind of make everything that 0:17:49.000 --> 0:17:51.639 Haines does, but on a larger scale at a lower cost. 0:17:52.160 --> 0:17:56.040 And Haines Brand's based in Winston Salem, North Carolina. Yeah, 0:17:56.040 --> 0:17:59.560 I'm sure Sarah talk to us about you mentioned the tariffs. 0:18:00.040 --> 0:18:02.040 How is it impacting your world, because I would think 0:18:02.040 --> 0:18:03.000 that would be immediate. 0:18:03.520 --> 0:18:06.199 Yes, so it definitely is impacting my world with you know, 0:18:06.240 --> 0:18:09.760 the footwear brands, but for Guilden and Haines. Actually, Guilden 0:18:09.800 --> 0:18:13.480 is one of the largest users of US cotton, so yes, 0:18:13.600 --> 0:18:16.639 they are probably one of the largest ones, and so 0:18:17.280 --> 0:18:19.679 that is actually going to help them not have to 0:18:19.720 --> 0:18:22.120 deal with as many tariff costs just since products are 0:18:22.119 --> 0:18:24.760 made with US cotton, so they're subject to a lower 0:18:24.840 --> 0:18:27.399 teriff rate, so that's actually something that they can benefit from. 0:18:27.600 --> 0:18:30.679 They also are less exposed to Asia and more in 0:18:30.680 --> 0:18:34.240 Central America as well as Haynes Brands. Their manufacturing footprints 0:18:34.280 --> 0:18:37.879 are very complementary and overlap, so they'll be able to 0:18:37.960 --> 0:18:41.560 kind of mitigate that pretty well. But for Haines Brands, 0:18:41.080 --> 0:18:46.840 its Guilden gives them a much more financial stability and opportunity. 0:18:46.280 --> 0:18:49.520 For that our thanks to Abigail gil Martin Bloomberg Intelligence, 0:18:49.520 --> 0:18:51.280 Footwear and at the Leisure Analyst. 0:18:51.480 --> 0:18:53.960 Each week we look at research from Bloomberg and EF 0:18:54.000 --> 0:18:55.800 previously known as New Energy Finance. 0:18:55.840 --> 0:18:58.119 They're the team at Bloomberg that tracks and analyzes the 0:18:58.200 --> 0:19:03.520 energy transition from commodities to transport, industries, buildings, and agriculture sectors. 0:19:03.840 --> 0:19:06.960 This week we look at the autonomous vehicles robotaxis. Guest 0:19:07.000 --> 0:19:09.040 host Normal Linden and I were joined by Andrew Grant 0:19:09.119 --> 0:19:11.240 be n EF, head of Intelligent Mobility. 0:19:11.440 --> 0:19:14.000 He discussed what's happening in the robotaxi space and some 0:19:14.080 --> 0:19:15.960 of the hot battlegrounds for developers. 0:19:16.160 --> 0:19:18.720 I began by asking Andrew where we are with robotaxis 0:19:18.760 --> 0:19:20.440 in the US. And the rest of the world. 0:19:20.520 --> 0:19:22.600 Wouldn't it be a great way to have a way 0:19:22.640 --> 0:19:26.040 to measure the progress that we have on the robotaxi 0:19:26.040 --> 0:19:28.960 side and the self driving vehicle side. Sometimes it could 0:19:28.960 --> 0:19:32.960 be quite difficult to monitor the sector, and there's a 0:19:32.960 --> 0:19:34.760 lot of promises made and there's a lot happening in 0:19:34.800 --> 0:19:37.520 the kind of AI black box, and what we try 0:19:37.560 --> 0:19:41.240 to do is measure things that you can actually see 0:19:41.480 --> 0:19:44.439 and count. So we've been looking at some real operational 0:19:44.440 --> 0:19:46.960 statistics that have been coming out from some of the 0:19:47.040 --> 0:19:50.399 robotaxi companies and coming up with a way to grade 0:19:50.440 --> 0:19:54.359 how serious an operation is. Can are these projects actually 0:19:54.359 --> 0:19:57.480 operating on public roads? Are they offering their rides to 0:19:57.640 --> 0:19:59.080 the general public or do you need to be on 0:19:59.080 --> 0:20:01.680 a selective weight lift? Are they putting their money where 0:20:01.720 --> 0:20:04.840 their mouths are and charging a fee for the service? 0:20:05.080 --> 0:20:08.480 Do they actually have a safety driver in the vehicle 0:20:08.600 --> 0:20:11.000