1 00:00:02,759 --> 00:00:10,600 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,640 --> 00:00:14,600 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:14,640 --> 00:00:17,880 Speaker 1: Eastern on Apple Coarclay and Android Auto with the Bloomberg 4 00:00:17,960 --> 00:00:21,080 Speaker 1: Business App. Listen on demand wherever you get your podcasts, 5 00:00:21,400 --> 00:00:23,120 Speaker 1: or watch us live on YouTube. 6 00:00:23,800 --> 00:00:26,040 Speaker 2: Normal Linda Paul Sweeney live here in our Bloomberg Interactor 7 00:00:26,040 --> 00:00:28,560 Speaker 2: Broker Studio, streaming live on YouTube as well. 8 00:00:28,560 --> 00:00:28,720 Speaker 3: Well. 9 00:00:28,760 --> 00:00:32,080 Speaker 2: For me, being a media and entertainment background person, the 10 00:00:32,120 --> 00:00:34,519 Speaker 2: news for me today was Linda Yakarino stepping down as 11 00:00:34,600 --> 00:00:38,159 Speaker 2: chief executive officer of Elon musks x social media platform 12 00:00:38,200 --> 00:00:41,839 Speaker 2: after only two years on the job. From her days 13 00:00:41,880 --> 00:00:46,440 Speaker 2: at NBCUniversal. I knew Linda Yakarino. She's widely respected on 14 00:00:46,479 --> 00:00:49,720 Speaker 2: Wall Street in the media entertainment business. I personally was 15 00:00:49,760 --> 00:00:52,800 Speaker 2: surprised that she left NBCUniversal to go work for X 16 00:00:52,840 --> 00:00:55,640 Speaker 2: simply because I didn't think anybody could work for Elon 17 00:00:55,760 --> 00:00:59,440 Speaker 2: MUCKs Elon Musk because he's that hands on for the business. 18 00:00:59,640 --> 00:01:02,240 Speaker 2: We are are perfectly time to speak with a good friend, 19 00:01:02,360 --> 00:01:06,000 Speaker 2: Ed Ludlow, Bloomberg technology co host. He's in Sun Valley, Idaho, 20 00:01:06,000 --> 00:01:08,880 Speaker 2: where all of the media and tech mobils are meeting 21 00:01:08,959 --> 00:01:10,399 Speaker 2: up for a couple of days at the Allen and 22 00:01:10,440 --> 00:01:14,400 Speaker 2: Company conference. Ed low ed, how did this news land 23 00:01:14,840 --> 00:01:17,839 Speaker 2: in Sun Valley? 24 00:01:19,160 --> 00:01:23,840 Speaker 4: Yeah, it's slightly surprising. It's interesting because, you know, in 25 00:01:23,880 --> 00:01:26,760 Speaker 4: her post, Yacarino framed it as a you know, mission 26 00:01:26,760 --> 00:01:31,959 Speaker 4: complete kind of turnaround process. But remember lower down in 27 00:01:32,000 --> 00:01:35,720 Speaker 4: the post she references Xai, and what's changed in recent 28 00:01:35,760 --> 00:01:39,880 Speaker 4: months is that Musk could combined x the social platform 29 00:01:39,920 --> 00:01:44,960 Speaker 4: with Xai, the ai company under Xai Holdings. You hit 30 00:01:45,040 --> 00:01:47,360 Speaker 4: a lot of the themes spot on pool that it 31 00:01:47,440 --> 00:01:51,480 Speaker 4: is difficult to work for Elon Musk, But the turnaround 32 00:01:51,480 --> 00:01:53,880 Speaker 4: bit that she cites in her post is one for debate. 33 00:01:54,240 --> 00:01:57,240 Speaker 4: You know, as we understand it, revenues in twenty twenty 34 00:01:57,280 --> 00:02:00,120 Speaker 4: four were down from twenty twenty three. They would look 35 00:02:00,280 --> 00:02:02,920 Speaker 4: like they might be up in twenty twenty five. It 36 00:02:03,000 --> 00:02:06,920 Speaker 4: was difficult to bring advertisers back to the platform, but 37 00:02:07,280 --> 00:02:10,680 Speaker 4: Yakumino had said many had returns of the platform. Elon 38 00:02:10,800 --> 00:02:15,160 Speaker 4: must being the sort of wild card about the appropriateness 39 00:02:15,200 --> 00:02:18,519 Speaker 4: I guess of advertising on that platform. But yeah, there's 40 00:02:18,520 --> 00:02:19,839 Speaker 4: a lot of ways we could go with this one. 41 00:02:20,840 --> 00:02:23,600 Speaker 3: And I mean, you talked about you know, the volatility, 42 00:02:23,720 --> 00:02:26,679 Speaker 3: especially when we think about a lot of Musk's businesses 43 00:02:26,720 --> 00:02:30,160 Speaker 3: and what's happening inside for Linda, does it seem as 44 00:02:30,200 --> 00:02:33,679 Speaker 3: though this was just a decision waiting to happen or 45 00:02:33,960 --> 00:02:34,840 Speaker 3: what are you hearing? 46 00:02:37,840 --> 00:02:41,280 Speaker 4: Yeah, nothing so far. We just don't know. I would 47 00:02:41,360 --> 00:02:45,320 Speaker 4: note that it's sort of the latest high profile stepping 48 00:02:45,440 --> 00:02:48,600 Speaker 4: down or departure from Elon Inc. We're seeing it happen 49 00:02:49,160 --> 00:02:53,320 Speaker 4: across Tesla. As we reported Omei d Afsha, who for 50 00:02:53,360 --> 00:02:56,079 Speaker 4: a really long time was basically Elon's chief of staff 51 00:02:56,560 --> 00:03:00,280 Speaker 4: and later had more broader responsibilities across sales and manufacturing. 52 00:03:00,760 --> 00:03:02,440 Speaker 4: We broke the story that he was gone out of 53 00:03:02,520 --> 00:03:06,720 Speaker 4: Tesla in SpaceX. I know that internally, you know, we 54 00:03:06,800 --> 00:03:09,400 Speaker 4: broke the story on their latest valuation yesterday. But internally 55 00:03:09,960 --> 00:03:15,320 Speaker 4: departures have kind of ramped up recently as Musk's political 56 00:03:15,360 --> 00:03:18,639 Speaker 4: activity has ramped up. It is not easy to work 57 00:03:18,680 --> 00:03:21,040 Speaker 4: for Elon Musk Like kind of how the structure works 58 00:03:21,080 --> 00:03:23,960 Speaker 4: at these companies is there are very capable people there. 59 00:03:24,240 --> 00:03:27,480 Speaker 4: For example, Xai Xai is a really key point here 60 00:03:27,520 --> 00:03:30,160 Speaker 4: about what's happening with x But there's a guy there 61 00:03:30,200 --> 00:03:33,280 Speaker 4: called Ross Norden, who is also kind of like the 62 00:03:33,320 --> 00:03:35,040 Speaker 4: chief of stuff, but he's doing a lot for Elon 63 00:03:35,120 --> 00:03:37,840 Speaker 4: while Elon's out doing whatever Elon's doing. But at the 64 00:03:37,880 --> 00:03:40,440 Speaker 4: end of the day, no matter how many decisions are 65 00:03:40,480 --> 00:03:42,640 Speaker 4: made by committee, by this group of very talented people 66 00:03:42,640 --> 00:03:45,200 Speaker 4: and all these companies, the final call is kind of 67 00:03:45,200 --> 00:03:47,480 Speaker 4: made by Elon, and that can sometimes slow things down. 68 00:03:47,560 --> 00:03:51,720 Speaker 4: It can sometimes lead to robust debate, you know, things 69 00:03:51,760 --> 00:03:54,880 Speaker 4: like that. But again, I'm super really focused on where 70 00:03:55,120 --> 00:03:57,680 Speaker 4: X fits into XAI long term. I think that's a 71 00:03:57,680 --> 00:03:59,920 Speaker 4: big factor here. And there's a hint in that Yakarino post. 72 00:04:00,360 --> 00:04:02,360 Speaker 2: I can see them. You're out in Sun Valley, Idaho. 73 00:04:02,600 --> 00:04:05,240 Speaker 2: I love the background there. I skied that mountain many 74 00:04:05,360 --> 00:04:08,440 Speaker 2: years ago. It's fantastic out there, summer or winter. I 75 00:04:08,720 --> 00:04:11,960 Speaker 2: recommend at the Sun Valley conference out there, the Allen 76 00:04:12,040 --> 00:04:15,200 Speaker 2: and Combay conference. What's kind of the expectation for these 77 00:04:15,240 --> 00:04:15,880 Speaker 2: couple of days. 78 00:04:19,040 --> 00:04:21,080 Speaker 4: Yeah, So it's interesting because there is a bit of 79 00:04:21,160 --> 00:04:23,520 Speaker 4: movement in TMT and that goes to the history of 80 00:04:23,520 --> 00:04:25,760 Speaker 4: this event, right, Paul, you know it so well. You know. 81 00:04:25,800 --> 00:04:28,040 Speaker 4: The news that we got is that disney Hurst might 82 00:04:28,040 --> 00:04:30,359 Speaker 4: look at selling their A and e asset, which is 83 00:04:30,400 --> 00:04:33,719 Speaker 4: the cable channels like History Channel, So that's interesting. Just 84 00:04:33,760 --> 00:04:36,719 Speaker 4: having that out there means that there's a marketplace right now. 85 00:04:37,040 --> 00:04:41,080 Speaker 4: We know that Warner Brothers is on this plan moving 86 00:04:41,120 --> 00:04:43,039 Speaker 4: into the middle of next year where they want to 87 00:04:43,080 --> 00:04:46,080 Speaker 4: have a split right, a standalone streaming company and a 88 00:04:46,120 --> 00:04:49,320 Speaker 4: standalone pure place studio. And we did manage to catch 89 00:04:49,360 --> 00:04:51,440 Speaker 4: up with David Aslav, the CEO of Warner brother Discovery, 90 00:04:51,480 --> 00:04:53,400 Speaker 4: who said it's kind of all on track. We don't 91 00:04:53,440 --> 00:04:56,200 Speaker 4: need any approvals, We're not really ready to talk about 92 00:04:56,240 --> 00:04:58,800 Speaker 4: the debt side of things. They also just of course 93 00:04:58,839 --> 00:05:02,000 Speaker 4: had Superman the Box Office and he was pretty pretty 94 00:05:02,000 --> 00:05:04,640 Speaker 4: happy about that. But I think that the signals are 95 00:05:04,680 --> 00:05:08,440 Speaker 4: that in that space media assets, there's some life and 96 00:05:08,480 --> 00:05:10,800 Speaker 4: it just takes one domino for the rest of full 97 00:05:10,839 --> 00:05:11,560 Speaker 4: if you know what I mean. 98 00:05:11,920 --> 00:05:14,200 Speaker 3: Well, thanks so much to Ed Ludlow as we really 99 00:05:14,240 --> 00:05:16,880 Speaker 3: break down what's happening at the Sun Valley conference, and 100 00:05:16,920 --> 00:05:20,880 Speaker 3: of course that Linda Yakarino headline of her departure from X. 101 00:05:22,640 --> 00:05:26,359 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 102 00:05:26,440 --> 00:05:29,520 Speaker 1: weekdays at ten am Eastern on Apple Corplay and Android 103 00:05:29,520 --> 00:05:32,839 Speaker 1: Auto with the Bloomberg Business app, listen on demand wherever 104 00:05:32,880 --> 00:05:36,040 Speaker 1: you get your podcasts, or watch us live on YouTube. 105 00:05:36,480 --> 00:05:37,800 Speaker 2: All right, folks, if you're sitting in front of a 106 00:05:37,839 --> 00:05:41,679 Speaker 2: turmol type in read go and over the last eight hours, 107 00:05:41,720 --> 00:05:44,320 Speaker 2: the number one read story has been about Goldman Sax 108 00:05:44,400 --> 00:05:48,360 Speaker 2: Goldman asking their analysts to swear they haven't lined up 109 00:05:48,440 --> 00:05:50,160 Speaker 2: pe jobs. I have no idea what's going on here? 110 00:05:50,200 --> 00:05:53,000 Speaker 2: And back in my day, you work two to three years, 111 00:05:53,240 --> 00:05:55,440 Speaker 2: you went and got your MBA, you came back to 112 00:05:55,480 --> 00:05:57,840 Speaker 2: this associated w your money, and then he just kind 113 00:05:57,880 --> 00:06:01,320 Speaker 2: of moved on and on right up? Ain't that way 114 00:06:01,400 --> 00:06:04,880 Speaker 2: right now? Sally Bigwell joins us. Bloomberg US Finance team 115 00:06:04,960 --> 00:06:07,560 Speaker 2: leader joins us Here, Sally, what's the story of Goldman 116 00:06:07,680 --> 00:06:08,240 Speaker 2: Sacks here? 117 00:06:09,000 --> 00:06:09,200 Speaker 5: Right? 118 00:06:09,200 --> 00:06:12,680 Speaker 2: They have to asking their associates or their analysts to swear. 119 00:06:13,040 --> 00:06:15,240 Speaker 6: That's right, and also just to say, back in your day, 120 00:06:15,240 --> 00:06:18,599 Speaker 6: couldn't have been obviously that long ago. But yes, Goldman 121 00:06:18,680 --> 00:06:22,240 Speaker 6: Sachs is asking its incoming class of analysts to effectively 122 00:06:22,279 --> 00:06:24,320 Speaker 6: take a bit of its own kind of pledge of 123 00:06:24,360 --> 00:06:28,120 Speaker 6: allegiance to the bank and certify that every three months 124 00:06:28,120 --> 00:06:32,839 Speaker 6: they're not accepting an offer from basically a private equity firm. 125 00:06:33,040 --> 00:06:36,440 Speaker 2: I just accepting I haven't even started Goldman Sacks, but 126 00:06:36,480 --> 00:06:41,760 Speaker 2: I've already accepted something at KKR like two years later exactly. 127 00:06:41,800 --> 00:06:44,000 Speaker 2: This is the practice. I'm interviewing at Goldman Sacks for 128 00:06:44,000 --> 00:06:46,960 Speaker 2: a job, and I'm interviewing KKR for a job. Planners gotcha? 129 00:06:47,040 --> 00:06:51,160 Speaker 6: Okay, that makes doesn't it sound terrific honestly? But yes. 130 00:06:51,200 --> 00:06:53,640 Speaker 6: It's known as on cycle recruitment, and this is this 131 00:06:53,800 --> 00:06:58,360 Speaker 6: practice where private equity firms try and recruit incoming junior 132 00:06:58,360 --> 00:07:01,119 Speaker 6: bankers who maybe haven't even efficient got in the door 133 00:07:01,360 --> 00:07:05,000 Speaker 6: at their bank programs analyst programs, and line them up 134 00:07:05,080 --> 00:07:07,640 Speaker 6: to take on private equity jobs as soon as they 135 00:07:07,720 --> 00:07:10,320 Speaker 6: finish those analyst programs. And you can kind of understand 136 00:07:10,360 --> 00:07:14,160 Speaker 6: why they get this fully trained, fully formed mini junior 137 00:07:14,200 --> 00:07:16,320 Speaker 6: banker who which then they haven't had to pay a 138 00:07:16,320 --> 00:07:17,240 Speaker 6: penny to train them. 139 00:07:17,360 --> 00:07:17,560 Speaker 2: Yep. 140 00:07:18,200 --> 00:07:20,160 Speaker 3: I honestly feel like these big banks are always doing 141 00:07:20,200 --> 00:07:23,080 Speaker 3: something that surprises me. There's always news coming out of 142 00:07:23,080 --> 00:07:24,800 Speaker 3: these things, and I'm like, what's what's going on with 143 00:07:24,800 --> 00:07:25,760 Speaker 3: the young bankers here? 144 00:07:25,800 --> 00:07:28,520 Speaker 2: But well, I think the reason I think the banks 145 00:07:28,520 --> 00:07:31,560 Speaker 2: have allowed this to kind of happen because who is 146 00:07:31,640 --> 00:07:35,400 Speaker 2: Goldman Sachs's biggest customers the private equity firms. You don't 147 00:07:35,400 --> 00:07:38,080 Speaker 2: want to upset them fair it's kind of a quid 148 00:07:38,080 --> 00:07:41,960 Speaker 2: pro quo. Will train these kids if they want to 149 00:07:42,000 --> 00:07:44,560 Speaker 2: go and work for you. Fine, it works for us 150 00:07:44,560 --> 00:07:46,840 Speaker 2: long term because we've got a Goldman or Morgan Stanley 151 00:07:46,880 --> 00:07:48,840 Speaker 2: alum that's now in KQR, and who knows where that 152 00:07:48,840 --> 00:07:50,200 Speaker 2: person will be ten years from now that could be 153 00:07:50,200 --> 00:07:52,280 Speaker 2: a big player, and it all kind of works out. 154 00:07:52,280 --> 00:07:54,280 Speaker 2: But it's got silly now, hasn't. 155 00:07:54,760 --> 00:07:56,520 Speaker 3: Is it uncommon? I mean, are we seeing a lot 156 00:07:56,520 --> 00:07:59,320 Speaker 3: of other banks doing some of these stringent rules. 157 00:07:59,760 --> 00:08:02,880 Speaker 6: So a few banks have started to push back. JP 158 00:08:03,000 --> 00:08:06,480 Speaker 6: Morgan was the first. In recent months, Jamie Diamond has 159 00:08:06,480 --> 00:08:10,040 Speaker 6: actually called this practice of on cycle recruitment unethical and 160 00:08:10,080 --> 00:08:12,120 Speaker 6: warned that he wanted to eliminate it because he says 161 00:08:12,120 --> 00:08:14,800 Speaker 6: it puts the junior bankers in a difficult position. They're 162 00:08:14,840 --> 00:08:17,000 Speaker 6: barely in the door at a bank and they already 163 00:08:17,000 --> 00:08:19,160 Speaker 6: have to start thinking about a career and they don't 164 00:08:19,160 --> 00:08:21,280 Speaker 6: even know at that stage what they might want, what they. 165 00:08:21,200 --> 00:08:24,080 Speaker 3: Might be good at out of college probably as well. 166 00:08:23,760 --> 00:08:27,720 Speaker 6: Fresh out of college, and so JP Morgan earlier this month. 167 00:08:27,800 --> 00:08:31,000 Speaker 6: It actually told incoming graduates that if they do accept 168 00:08:31,400 --> 00:08:34,280 Speaker 6: offers during their first eighteen months at the bank, they 169 00:08:34,320 --> 00:08:36,600 Speaker 6: will be fired. So it was a very clear message 170 00:08:36,600 --> 00:08:39,480 Speaker 6: and actually a lot of some private equity firms have 171 00:08:39,840 --> 00:08:44,520 Speaker 6: pulled back since then. Apollo is one, General Atlantic is another. 172 00:08:44,600 --> 00:08:48,400 Speaker 6: They've actually said to their candidates that they will not 173 00:08:48,520 --> 00:08:51,080 Speaker 6: be recruiting, they will not be doing this on cycle 174 00:08:51,160 --> 00:08:53,280 Speaker 6: recruiting and recruiting junior analysts. 175 00:08:53,280 --> 00:08:57,120 Speaker 2: So early it's yeah, it's just crazy. I know, times 176 00:08:57,120 --> 00:08:59,000 Speaker 2: have changed. I mean it used to be you work 177 00:08:59,040 --> 00:09:01,320 Speaker 2: two to three years as an and I'll set investment 178 00:09:01,320 --> 00:09:03,520 Speaker 2: bank like I did, and then they literally kick you 179 00:09:03,559 --> 00:09:05,960 Speaker 2: out the door and say go get your MBA. You 180 00:09:06,000 --> 00:09:08,760 Speaker 2: go get your MBA. You come back and you double 181 00:09:08,800 --> 00:09:10,960 Speaker 2: your money and you kind of do the same jobs 182 00:09:11,240 --> 00:09:14,520 Speaker 2: twenty years ago. That in itself was kind of an 183 00:09:14,640 --> 00:09:19,079 Speaker 2: odd situation. But now they don't even force you to 184 00:09:19,120 --> 00:09:20,800 Speaker 2: go get an MBA because they don't want to lose you. 185 00:09:21,080 --> 00:09:23,720 Speaker 2: I mean, you know, lose you to anybody. 186 00:09:23,760 --> 00:09:26,240 Speaker 3: So are they having trouble with recruits? 187 00:09:26,520 --> 00:09:30,959 Speaker 2: There's twenty seven great resumes for one slot. You think 188 00:09:30,960 --> 00:09:32,720 Speaker 2: this is going to hold? Sounding thing? 189 00:09:32,960 --> 00:09:35,600 Speaker 6: I think that's the big question. Does this spell the 190 00:09:35,720 --> 00:09:38,880 Speaker 6: end of the practice. Probably not. I think it depends 191 00:09:38,880 --> 00:09:42,680 Speaker 6: how competitive the market gets. Banks have periodically made bursts 192 00:09:42,760 --> 00:09:45,320 Speaker 6: of effort over the last ten years or so. Morgan 193 00:09:45,320 --> 00:09:48,600 Speaker 6: Stanley did back in twenty thirteen that didn't really go anywhere, 194 00:09:48,600 --> 00:09:52,400 Speaker 6: so they've tried to sort of stem this tide. Whether 195 00:09:52,480 --> 00:09:55,760 Speaker 6: it takes hold permanently, I think it's almost impossible to say. 196 00:09:55,800 --> 00:09:58,360 Speaker 6: It will depend on market dynamics. But this is certainly 197 00:09:58,400 --> 00:10:01,640 Speaker 6: one moment where they seem to have created this pullback 198 00:10:01,720 --> 00:10:02,880 Speaker 6: by private equity. 199 00:10:02,520 --> 00:10:05,000 Speaker 3: From doing this. I mean, as a perspective junior banker, 200 00:10:05,120 --> 00:10:08,040 Speaker 3: can you really even scout out a different bank or 201 00:10:08,080 --> 00:10:09,240 Speaker 3: are they all doing the same thing? 202 00:10:10,400 --> 00:10:12,920 Speaker 6: I think that's a great question, and I mean I 203 00:10:12,920 --> 00:10:15,360 Speaker 6: think this is part of the rationale for the private 204 00:10:15,360 --> 00:10:17,840 Speaker 6: equity firms are at least saying, you know that at 205 00:10:17,840 --> 00:10:19,840 Speaker 6: that stage in your career, you don't know what you're doing. 206 00:10:19,920 --> 00:10:21,920 Speaker 6: I saddenly didn't know what I was doing at that age. 207 00:10:22,000 --> 00:10:24,800 Speaker 6: I still barely do, so how can you make this 208 00:10:24,920 --> 00:10:26,760 Speaker 6: kind of decision? And also puts you in a conflict 209 00:10:26,800 --> 00:10:29,880 Speaker 6: of interest position. You know, you're in a bank, you 210 00:10:30,000 --> 00:10:33,040 Speaker 6: have access to the bank's confidential information. But you're already 211 00:10:33,120 --> 00:10:35,720 Speaker 6: admitted to a private equity job. I mean, that's not 212 00:10:35,800 --> 00:10:36,760 Speaker 6: a good position to be in. 213 00:10:36,960 --> 00:10:38,839 Speaker 2: Yeah, it's tough for the for the junior people from 214 00:10:39,040 --> 00:10:41,160 Speaker 2: if that conflict of interesting and it's just it's just 215 00:10:41,240 --> 00:10:44,600 Speaker 2: a it's odd economic model. I never really understood why 216 00:10:44,600 --> 00:10:47,920 Speaker 2: they did it that way. So anyway that it's on 217 00:10:47,960 --> 00:10:50,679 Speaker 2: the Bloomberg terminal, it's probably on Bloomberg dot com by 218 00:10:50,720 --> 00:10:53,120 Speaker 2: now the number one read story at their Goldman asked 219 00:10:53,640 --> 00:10:56,240 Speaker 2: analyst to swear they haven't lined up job, so I 220 00:10:56,280 --> 00:10:58,040 Speaker 2: guess it's a pinky swear. I'm not sure how that 221 00:10:58,040 --> 00:11:01,400 Speaker 2: all works. But Sarah Baker joins us there and we 222 00:11:01,480 --> 00:11:04,360 Speaker 2: appreciate her reporting on that story, taking the time to 223 00:11:04,360 --> 00:11:05,240 Speaker 2: come into our studio. 224 00:11:06,960 --> 00:11:10,679 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 225 00:11:10,760 --> 00:11:13,800 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 226 00:11:13,840 --> 00:11:17,160 Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever 227 00:11:17,200 --> 00:11:20,360 Speaker 1: you get your podcasts, or watch us live on YouTube. 228 00:11:20,880 --> 00:11:23,800 Speaker 3: I do want to turn to Tim Craighead and he's 229 00:11:23,800 --> 00:11:26,160 Speaker 3: based in London. He's joining us via zoom. He's a 230 00:11:26,200 --> 00:11:31,000 Speaker 3: research director for content for Bloomberg Intelligence, and I'm looking 231 00:11:31,000 --> 00:11:34,000 Speaker 3: at this story that's out right now and lots of 232 00:11:34,040 --> 00:11:37,800 Speaker 3: really interesting illustrations, but the story is called Banking Booze 233 00:11:38,200 --> 00:11:42,520 Speaker 3: and Double seven Wheels. Ten companies to watch right now, Paul, 234 00:11:42,520 --> 00:11:45,040 Speaker 3: I have no idea where this is going. I'm so curious. 235 00:11:45,080 --> 00:11:49,079 Speaker 3: It's based off the headline alone. But Tim contextualizes for us, 236 00:11:49,120 --> 00:11:50,160 Speaker 3: tell us what is this list? 237 00:11:51,160 --> 00:11:54,800 Speaker 5: Yep, sure, thanks thanks for having me on. So these 238 00:11:55,200 --> 00:11:58,160 Speaker 5: these ten ideas are all part of a broader list 239 00:11:58,280 --> 00:12:01,080 Speaker 5: of what we call focus ideas. Ideas are where are 240 00:12:01,160 --> 00:12:06,280 Speaker 5: analysts around the globe, cross regions, cross sectors have high conviction, 241 00:12:06,679 --> 00:12:11,280 Speaker 5: fundamental points of view that they think are different from 242 00:12:11,280 --> 00:12:15,239 Speaker 5: what the market thinks, anti consensus, and importantly, they're catalysts 243 00:12:15,240 --> 00:12:18,480 Speaker 5: coming up that we think can change market perceptions. And 244 00:12:18,559 --> 00:12:22,559 Speaker 5: these ten all have important catalysts coming up during the 245 00:12:22,600 --> 00:12:26,760 Speaker 5: third quarter. And just to put it out there, you 246 00:12:26,800 --> 00:12:29,920 Speaker 5: can see all of these focus ideas on bi focus 247 00:12:30,000 --> 00:12:30,679 Speaker 5: on the terminal. 248 00:12:31,720 --> 00:12:33,800 Speaker 2: Tim, what I like about these ideas? You know, because 249 00:12:33,800 --> 00:12:37,640 Speaker 2: people are always looking for ideas long and short, you 250 00:12:37,679 --> 00:12:40,440 Speaker 2: guys have the ideas. And what I really like that 251 00:12:40,520 --> 00:12:43,280 Speaker 2: this research format is you have the triggers what's going 252 00:12:43,360 --> 00:12:46,079 Speaker 2: to make what has to happen in order for this 253 00:12:46,160 --> 00:12:49,360 Speaker 2: call to work on a particular stock Aston Martin. I'm 254 00:12:49,360 --> 00:12:52,640 Speaker 2: asking for Matt Miller, what's the call here on Aston Martin? 255 00:12:53,760 --> 00:12:57,040 Speaker 5: So the call on Acid Martin. As much as I 256 00:12:57,240 --> 00:12:59,920 Speaker 5: like the cars, and obviously this is where the double 257 00:13:00,040 --> 00:13:05,720 Speaker 5: low seven reference comes from. They've got a really interesting 258 00:13:05,800 --> 00:13:11,280 Speaker 5: new lineup of vehicles, but they're short on V twelves 259 00:13:11,360 --> 00:13:15,560 Speaker 5: and notwithstanding the world of evs and all that sort 260 00:13:15,600 --> 00:13:18,360 Speaker 5: of stuff, the high end V twelves from Ferrari and 261 00:13:18,480 --> 00:13:23,120 Speaker 5: Lamborghini are hot. And you look at the inventory levels 262 00:13:23,160 --> 00:13:26,839 Speaker 5: of Aston Martin on the lots, they're too high. We 263 00:13:26,920 --> 00:13:30,720 Speaker 5: think that there's a capital infusion that's likely needed in 264 00:13:30,800 --> 00:13:34,320 Speaker 5: coming months, and so we actually have a cautious view 265 00:13:35,360 --> 00:13:37,040 Speaker 5: on Aston Martin from that perspective. 266 00:13:37,679 --> 00:13:40,160 Speaker 3: Tim, you are always putting out super interesting stuff. I mean, 267 00:13:40,200 --> 00:13:42,400 Speaker 3: we had fifty companies to watch in January and then 268 00:13:42,440 --> 00:13:44,480 Speaker 3: we have the quarterly update in April, and then of 269 00:13:44,520 --> 00:13:48,000 Speaker 3: course now this story that's out loving the graphics here. 270 00:13:48,080 --> 00:13:49,400 Speaker 3: How long did it take to put us together? 271 00:13:51,760 --> 00:13:56,400 Speaker 5: Well, it's an ongoing process of working with our analysts 272 00:13:56,440 --> 00:13:59,880 Speaker 5: in terms of where do we see these ideas come 273 00:14:00,200 --> 00:14:03,160 Speaker 5: from and then you know, our friends in BusinessWeek like 274 00:14:03,240 --> 00:14:06,640 Speaker 5: to pull together the graphics on these things. It is 275 00:14:06,679 --> 00:14:11,520 Speaker 5: a It is a good looking piece on the UH on, Bloomberg, 276 00:14:11,520 --> 00:14:12,520 Speaker 5: dot Com. 277 00:14:13,520 --> 00:14:16,000 Speaker 2: Booze, Dago. What's the story there. 278 00:14:16,880 --> 00:14:20,120 Speaker 5: Yeah, the Agio it ties in a little bit with 279 00:14:20,200 --> 00:14:23,800 Speaker 5: a couple of ideas here. You know, I mentioned Aston Martin. 280 00:14:23,840 --> 00:14:26,440 Speaker 5: That's obviously a high end consumer idea. And even though 281 00:14:26,440 --> 00:14:30,480 Speaker 5: we're consumed concerned about Aston Martin specifically, the high end 282 00:14:30,560 --> 00:14:36,400 Speaker 5: luxury vehicle market is good. Similarly with the Agio, high end, 283 00:14:36,640 --> 00:14:38,920 Speaker 5: high end, Booze high end spirits. They are the world's 284 00:14:38,960 --> 00:14:43,680 Speaker 5: largest spirits manufacturer, is doing relatively well. You know, their 285 00:14:43,720 --> 00:14:47,800 Speaker 5: recent sales trends have been robust. We think that's going 286 00:14:47,880 --> 00:14:51,720 Speaker 5: to continue to show through. There has been concern about 287 00:14:51,840 --> 00:14:55,440 Speaker 5: things like tariffs and what could be the impact, especially 288 00:14:55,440 --> 00:14:59,920 Speaker 5: from a US consumer base. We're less concerned and we're optimistic. 289 00:15:00,400 --> 00:15:05,160 Speaker 5: Another consumer, higher end idea you guys know and love 290 00:15:05,240 --> 00:15:08,520 Speaker 5: in the States is Dick Sporting Goods. You know, this 291 00:15:08,680 --> 00:15:13,520 Speaker 5: is a classic good old consumer's growth story where not 292 00:15:13,560 --> 00:15:15,760 Speaker 5: only do you know the store, but you might have 293 00:15:15,880 --> 00:15:19,960 Speaker 5: been in one of their new, bigger formats where they 294 00:15:20,040 --> 00:15:24,320 Speaker 5: have you know that much more kit. Their sales trends 295 00:15:24,400 --> 00:15:27,600 Speaker 5: continue to be quite good, despite concerns about what are 296 00:15:27,640 --> 00:15:30,480 Speaker 5: tear's going to mean for consumer here or there? So 297 00:15:31,080 --> 00:15:33,360 Speaker 5: you know those are all those are all consumer ideas. 298 00:15:33,360 --> 00:15:35,080 Speaker 5: There's certainly a common thread there. 299 00:15:36,280 --> 00:15:38,560 Speaker 3: You mentioned Dick said, I'm looking at easy Jet, which 300 00:15:38,600 --> 00:15:41,640 Speaker 3: of course we know is a low cost British airline, 301 00:15:41,720 --> 00:15:43,520 Speaker 3: and we have a sunny outlook here. But what do 302 00:15:43,560 --> 00:15:47,400 Speaker 3: you think will be the most surprising call here for readers. 303 00:15:48,160 --> 00:15:51,640 Speaker 5: Yeah, it's interesting in this instance. Obviously this is not 304 00:15:51,680 --> 00:15:56,080 Speaker 5: the high end consumer, this is everyday consumer. Is that 305 00:15:57,920 --> 00:16:00,840 Speaker 5: this isn't so much about the demand, which actually demand 306 00:16:00,880 --> 00:16:04,520 Speaker 5: for travel and experience continues to be pretty good. This 307 00:16:04,560 --> 00:16:07,480 Speaker 5: is more of a story on an operational basis. They're 308 00:16:07,560 --> 00:16:13,080 Speaker 5: replacing a lot of older planes with newer planes that 309 00:16:13,160 --> 00:16:16,000 Speaker 5: have bigger capacity and much more fuel efficient, so this 310 00:16:16,080 --> 00:16:21,000 Speaker 5: is a margin story. Easy Jet has historically lagged behind 311 00:16:21,160 --> 00:16:24,200 Speaker 5: Ryan Air at the other low cost carrier here in Europe. 312 00:16:24,760 --> 00:16:26,560 Speaker 5: We think that that's set to change. 313 00:16:27,280 --> 00:16:29,960 Speaker 2: Tim you live and work in London, but as most 314 00:16:30,000 --> 00:16:33,920 Speaker 2: of our listeners can tell, you're not an Englishman. You're 315 00:16:33,920 --> 00:16:37,520 Speaker 2: from the Great Commonwealth of Virginia. Talk to us. Are 316 00:16:37,560 --> 00:16:40,560 Speaker 2: the tourists Is it as crazy in London this year 317 00:16:40,600 --> 00:16:43,160 Speaker 2: as it's been in recent years. What's the tourism factor 318 00:16:43,160 --> 00:16:44,200 Speaker 2: they're in London you state. 319 00:16:44,720 --> 00:16:48,880 Speaker 5: The quick answer is yes, notwithstanding the fact that the 320 00:16:49,280 --> 00:16:54,800 Speaker 5: pound is actually pretty robust. Of late, streets are busy, 321 00:16:55,720 --> 00:16:58,440 Speaker 5: and you know it's true, it's true in the city 322 00:16:59,480 --> 00:17:03,240 Speaker 5: walk out the door here Tuesday, Wednesday, Thursday or the 323 00:17:03,280 --> 00:17:07,119 Speaker 5: New Friday has been a warm summer. But you know, 324 00:17:07,440 --> 00:17:11,280 Speaker 5: this is also the time for Wimbledon, and beyond that, 325 00:17:11,400 --> 00:17:14,359 Speaker 5: it's just been it's just been busy with people coming 326 00:17:14,400 --> 00:17:16,639 Speaker 5: from all over the world, whether it's China, whether it's 327 00:17:16,680 --> 00:17:21,840 Speaker 5: the US. This seems to be a hot ticket. So yeah, 328 00:17:21,880 --> 00:17:22,919 Speaker 5: it still feels pretty good. 329 00:17:23,040 --> 00:17:25,919 Speaker 2: Yeah, I'm trying to get, you know, Audrey child Friedman, 330 00:17:25,960 --> 00:17:29,560 Speaker 2: to get the euro back to parody because I'm coming 331 00:17:29,560 --> 00:17:32,880 Speaker 2: over to Europe in the fall little vacation, little holiday. 332 00:17:32,920 --> 00:17:36,720 Speaker 2: But I mean you mentioned the pounds sterling, but the 333 00:17:36,840 --> 00:17:38,919 Speaker 2: by the euro one seventeen that gets your attention. 334 00:17:39,960 --> 00:17:42,520 Speaker 5: Yeah, it does well. And you know, I guess from 335 00:17:43,000 --> 00:17:48,639 Speaker 5: from our perspective, and primarily Audrey's perspective, this is a 336 00:17:50,359 --> 00:17:54,080 Speaker 5: this is a week dollar story as opposed to stronger 337 00:17:54,440 --> 00:17:59,720 Speaker 5: other currency story, and we think that there's more legs 338 00:17:59,760 --> 00:18:02,199 Speaker 5: to this. You know. One of the big themes that 339 00:18:02,280 --> 00:18:05,040 Speaker 5: comes up on all the investor discussions or events that 340 00:18:05,160 --> 00:18:10,639 Speaker 5: I'm at is that is the long standing premise of 341 00:18:10,680 --> 00:18:14,360 Speaker 5: American exceptionalism. You pop money in US bonds, US stocks 342 00:18:14,359 --> 00:18:17,640 Speaker 5: and they take off. You know, is that holding valuations 343 00:18:17,680 --> 00:18:18,920 Speaker 5: a lot more interesting elsewhere? 344 00:18:19,000 --> 00:18:21,400 Speaker 2: All right? Tim, great stuff has always Tim Crackett, Chief 345 00:18:21,440 --> 00:18:23,399 Speaker 2: Content Officer, Bloomberg Intelligence. 346 00:18:25,200 --> 00:18:28,880 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 347 00:18:28,960 --> 00:18:32,040 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 348 00:18:32,080 --> 00:18:35,359 Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever 349 00:18:35,440 --> 00:18:38,560 Speaker 1: you get your podcasts, or watch us live on YouTube. 350 00:18:39,080 --> 00:18:42,080 Speaker 3: Welcome back to Bloomberg Intelligence Radio. I'm Normalanda here with 351 00:18:42,160 --> 00:18:45,399 Speaker 3: Paul Sweeney, and it is Wednesday morning. We're seeing stocks 352 00:18:45,400 --> 00:18:49,400 Speaker 3: that are higher right now. We've got consumer communication services 353 00:18:49,400 --> 00:18:52,400 Speaker 3: and consumer discretionary as some of the best performing sectors 354 00:18:52,720 --> 00:18:54,360 Speaker 3: in the S and P five pund you right now. 355 00:18:54,720 --> 00:18:57,280 Speaker 3: Lots to keep an eye on today, But we want 356 00:18:57,280 --> 00:19:01,639 Speaker 3: to talk to Jennifer Ree. She is Bloomberg Intelligence Senior 357 00:19:01,680 --> 00:19:03,920 Speaker 3: litigation analyst. And we're going to be chatting a little 358 00:19:03,920 --> 00:19:06,800 Speaker 3: bit about the US antitrust environment and what the second 359 00:19:06,840 --> 00:19:09,919 Speaker 3: half of this year looks like. I mean, Jennifer, the 360 00:19:09,960 --> 00:19:13,680 Speaker 3: anti trust environment was pretty aggressive under the Biden administration. 361 00:19:13,720 --> 00:19:16,159 Speaker 3: We were seeing a lot of those larger companies getting 362 00:19:16,160 --> 00:19:19,159 Speaker 3: caught in the crosshairs. Here, can you set up for 363 00:19:19,240 --> 00:19:20,520 Speaker 3: us what it looks like right now one of a 364 00:19:20,520 --> 00:19:21,240 Speaker 3: new administration? 365 00:19:22,600 --> 00:19:24,960 Speaker 7: You know, that's right, Nora. It was a really tough 366 00:19:25,000 --> 00:19:28,640 Speaker 7: four years, particularly for deal makers, and I think there 367 00:19:28,680 --> 00:19:31,040 Speaker 7: was a lot of uncertainty going into the election during 368 00:19:31,040 --> 00:19:32,879 Speaker 7: the fourth quarter of last year. But I think there 369 00:19:32,880 --> 00:19:35,760 Speaker 7: are some really good signs for those companies that want 370 00:19:35,840 --> 00:19:38,480 Speaker 7: to engage in big deals going forward. And the main 371 00:19:38,560 --> 00:19:42,080 Speaker 7: reason is because Trump's anti trust enforcers are willing to 372 00:19:42,119 --> 00:19:45,359 Speaker 7: accept settlements with a remedy to allow a bigger deal 373 00:19:45,359 --> 00:19:48,160 Speaker 7: to close, essentially meaning that if there's an overlapping product 374 00:19:48,200 --> 00:19:50,280 Speaker 7: and there'd be too much concentration in the market for 375 00:19:50,320 --> 00:19:52,840 Speaker 7: that product, that product line could be sold and the 376 00:19:52,920 --> 00:19:56,560 Speaker 7: larger deal can get closed. And the Buying administration essentially 377 00:19:56,560 --> 00:19:59,879 Speaker 7: refused to do that. They thought if a deal was problematic, 378 00:20:00,000 --> 00:20:01,720 Speaker 7: we're just going to sue it. And try to block it, 379 00:20:01,800 --> 00:20:03,720 Speaker 7: and it led to a lot of lawsuits, a lot 380 00:20:03,720 --> 00:20:05,840 Speaker 7: of abandonments, and a lot of deals that just didn't 381 00:20:05,840 --> 00:20:08,480 Speaker 7: get signed to begin with. So because we're seeing this 382 00:20:08,640 --> 00:20:10,640 Speaker 7: sign that deals can get settled, I do think we're 383 00:20:10,680 --> 00:20:13,560 Speaker 7: going to start to see more bigger deals getting signed 384 00:20:13,640 --> 00:20:15,840 Speaker 7: up in the second half and probably next year two. 385 00:20:16,800 --> 00:20:22,560 Speaker 2: So, you know, for all these agencies within Washington, they 386 00:20:22,600 --> 00:20:26,919 Speaker 2: obviously feel the presence of President Trump very keenly. The 387 00:20:26,960 --> 00:20:29,320 Speaker 2: folks that are in charge of the Federal Trade Commission, 388 00:20:29,440 --> 00:20:32,280 Speaker 2: the Department of Justice, how much independence do you think 389 00:20:32,440 --> 00:20:34,000 Speaker 2: they have at this. 390 00:20:34,000 --> 00:20:39,320 Speaker 7: Point, you know, Paul, probably not very much. You know, 391 00:20:39,359 --> 00:20:41,760 Speaker 7: in the past, in particular, the Federal Trade Commission was 392 00:20:41,760 --> 00:20:44,840 Speaker 7: supposed to be quite independent, and really it was because 393 00:20:44,960 --> 00:20:47,560 Speaker 7: it had five commissioners, only three of which could be 394 00:20:47,600 --> 00:20:50,200 Speaker 7: from one political party, and they needed a majority vote 395 00:20:50,200 --> 00:20:52,920 Speaker 7: to take any action with a deal. But President Trump 396 00:20:53,000 --> 00:20:56,080 Speaker 7: has fired the two Democrats, so we now have three Republicans, 397 00:20:56,320 --> 00:20:58,920 Speaker 7: and we have three Republicans that very much are behind 398 00:20:59,040 --> 00:21:03,719 Speaker 7: him and his political visions. So I think that they 399 00:21:03,760 --> 00:21:06,639 Speaker 7: will essentially do what they think he wants done. And 400 00:21:06,680 --> 00:21:08,960 Speaker 7: we have seen an example of that because they did 401 00:21:09,000 --> 00:21:12,399 Speaker 7: clear a deal between two huge ad agencies, OmniComm and 402 00:21:12,440 --> 00:21:16,639 Speaker 7: Interpublic with what we call a behavioral agreement, which they 403 00:21:16,640 --> 00:21:19,080 Speaker 7: have said that they don't tend to want to take, 404 00:21:19,600 --> 00:21:24,800 Speaker 7: agreeing that they wouldn't prevent advertisers from advertising next to 405 00:21:24,880 --> 00:21:29,119 Speaker 7: content that was right leaning or expressed conservative viewpoints that 406 00:21:29,160 --> 00:21:31,719 Speaker 7: they might not agree with. So that was very much 407 00:21:31,800 --> 00:21:33,960 Speaker 7: kind of in lined with this administration and what this 408 00:21:34,000 --> 00:21:36,359 Speaker 7: administration wants. So I do think we're going to see 409 00:21:36,560 --> 00:21:39,600 Speaker 7: alignment in terms of what these remedies are and the 410 00:21:39,640 --> 00:21:43,199 Speaker 7: deals that get cleared with what Trump is saying and 411 00:21:43,240 --> 00:21:44,399 Speaker 7: with what Trump wants. 412 00:21:45,320 --> 00:21:49,280 Speaker 3: So Trump terminated two Democratic FTC commissioners back in the 413 00:21:49,320 --> 00:21:51,240 Speaker 3: first quarter of this year, and of course we know 414 00:21:51,320 --> 00:21:55,280 Speaker 3: this did raise some significant constitutional concerns in terms of 415 00:21:55,320 --> 00:22:00,720 Speaker 3: the commission's historical independence and of course enforcement effort. What 416 00:22:00,840 --> 00:22:04,520 Speaker 3: is this really signaled in terms of potential policy changes. 417 00:22:06,200 --> 00:22:08,840 Speaker 7: Well, you know the thing is that, first of all, 418 00:22:08,880 --> 00:22:11,200 Speaker 7: we do all of these challenges are going up to 419 00:22:11,240 --> 00:22:13,200 Speaker 7: the Supreme Court, and we do think that this is 420 00:22:13,240 --> 00:22:15,159 Speaker 7: going to stick. We do think that because of some 421 00:22:15,200 --> 00:22:18,120 Speaker 7: of the other decisions about other agencies that even though 422 00:22:18,119 --> 00:22:21,320 Speaker 7: the two Democrats do have an ongoing lawsuit about their termination. 423 00:22:21,800 --> 00:22:24,439 Speaker 7: We think that probably the Supreme Court is going to 424 00:22:24,440 --> 00:22:26,960 Speaker 7: side with Trump and they are going to remain terminated. 425 00:22:27,320 --> 00:22:30,679 Speaker 7: For practical purposes, as I said, I don't think that 426 00:22:30,720 --> 00:22:33,480 Speaker 7: there's very much impact here because you do need a 427 00:22:33,520 --> 00:22:36,680 Speaker 7: majority vote to settle or to suit a block a deal, 428 00:22:36,840 --> 00:22:39,800 Speaker 7: so you need three out of the five. In the past, 429 00:22:39,880 --> 00:22:42,600 Speaker 7: we have seen that the FTCs operated on a very 430 00:22:42,640 --> 00:22:46,320 Speaker 7: sort of bipartisan or nonpartisan basis. We usually have a 431 00:22:46,440 --> 00:22:49,200 Speaker 7: unanimous or maybe a four to one decision, but it hasn't. 432 00:22:48,880 --> 00:22:49,480 Speaker 2: Been that way. 433 00:22:49,680 --> 00:22:51,560 Speaker 7: You know, starting with Biden, we were seeing a lot 434 00:22:51,560 --> 00:22:55,080 Speaker 7: of three to two decisions where along party lines, right, 435 00:22:55,160 --> 00:22:57,480 Speaker 7: So I think that we probably would have continued to 436 00:22:57,480 --> 00:23:00,280 Speaker 7: see that even if the two Democrats were still there, 437 00:23:00,320 --> 00:23:02,800 Speaker 7: you'd have the three Republicans. You'd probably get your three 438 00:23:02,840 --> 00:23:05,240 Speaker 7: to two vote to do whatever it was that the 439 00:23:05,280 --> 00:23:09,560 Speaker 7: Republican tengent wanted. So from a practical standpoint, it's not 440 00:23:09,600 --> 00:23:12,119 Speaker 7: going to have that much impact on the decision making 441 00:23:12,160 --> 00:23:13,439 Speaker 7: for deals of this FTC. 442 00:23:13,960 --> 00:23:15,960 Speaker 2: Are there any deals that are currently being held up 443 00:23:16,040 --> 00:23:19,440 Speaker 2: or being scrutinized that maybe the participants are saying, oh boy, 444 00:23:19,560 --> 00:23:21,480 Speaker 2: now we're going to really sail through, and we thought 445 00:23:21,480 --> 00:23:23,720 Speaker 2: maybe on our Biden it could be a tough slide 446 00:23:23,760 --> 00:23:24,919 Speaker 2: or anything we should keep an eye on. 447 00:23:26,240 --> 00:23:28,240 Speaker 7: You know, Paul, The one I'm really interested in is 448 00:23:28,280 --> 00:23:31,199 Speaker 7: the Google Whiz deal. And I say that because we 449 00:23:31,320 --> 00:23:33,959 Speaker 7: know this administration is no friend to big tech, and 450 00:23:34,000 --> 00:23:36,920 Speaker 7: we know that they're staying really aggressive on the monopolistic 451 00:23:36,960 --> 00:23:41,200 Speaker 7: conduct side, where Google and Apple and Amazon and Facebook 452 00:23:41,240 --> 00:23:43,919 Speaker 7: have all been sued for monopolistic conduct. And to me, 453 00:23:44,000 --> 00:23:47,280 Speaker 7: that deals very interesting because just from an anti trust perspective, 454 00:23:47,320 --> 00:23:50,399 Speaker 7: I don't really think it poses anti trust concerns. You 455 00:23:50,440 --> 00:23:52,240 Speaker 7: know that the concern would be that you have a 456 00:23:52,280 --> 00:23:55,879 Speaker 7: cloud company that's marrying with a cloud security company and 457 00:23:55,920 --> 00:23:58,399 Speaker 7: they could foreclose rivals. But I think that there's ample 458 00:23:58,400 --> 00:24:01,000 Speaker 7: competition on both sides, on the cloud side and the 459 00:24:01,000 --> 00:24:04,000 Speaker 7: cloud security side, that you probably don't have a very 460 00:24:04,000 --> 00:24:06,920 Speaker 7: strong theory of harm. But we know that this administration 461 00:24:07,040 --> 00:24:10,119 Speaker 7: doesn't necessarily love Google. I'm going to be interested to 462 00:24:10,119 --> 00:24:12,399 Speaker 7: see what happens there, but I suspect we're not going 463 00:24:12,480 --> 00:24:14,600 Speaker 7: to learn in the second half. It's probably going to 464 00:24:14,600 --> 00:24:16,400 Speaker 7: push into the beginning of next year. 465 00:24:16,800 --> 00:24:18,480 Speaker 2: All right, Jen, thanks so much for joining us a 466 00:24:18,600 --> 00:24:21,480 Speaker 2: general senior litigation analysts for Bloomberg Intelligence. He's got the 467 00:24:21,560 --> 00:24:25,600 Speaker 2: deep dive kind of looking at the whole antitrust world 468 00:24:25,720 --> 00:24:27,640 Speaker 2: under President Trump. You can find out on the Bloomberg 469 00:24:27,640 --> 00:24:30,919 Speaker 2: turmol It's great read, detailed, long report with a lot 470 00:24:30,920 --> 00:24:31,800 Speaker 2: of good stuff in there. 471 00:24:32,200 --> 00:24:36,879 Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify, 472 00:24:37,080 --> 00:24:41,040 Speaker 1: and anywhere else you get your podcasts. Listen live each weekday, 473 00:24:41,280 --> 00:24:44,600 Speaker 1: ten am to noon Eastern on Bloomberg dot com, the 474 00:24:44,640 --> 00:24:48,520 Speaker 1: iHeartRadio app tune In, and the Bloomberg Business app. You 475 00:24:48,520 --> 00:24:51,840 Speaker 1: can also watch us live every weekday on YouTube and 476 00:24:52,040 --> 00:24:53,960 Speaker 1: always on the Bloomberg terminal