WEBVTT - Fed Hawks Send Stocks Lower and Credit Card Debt Hits a Record

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<v Speaker 1>Live from the Bloomberg Interactor Berger Studios. This is Bloomberg

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<v Speaker 1>day Break for Friday, February seventeen. Coming up today, Hawk

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<v Speaker 1>is Fed comments, send stocks lower ten, your treasury yields

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<v Speaker 1>hit the highest level this year. President Biden looks to

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<v Speaker 1>speak with Si Jinping Soon about the Chinese balloon incident.

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<v Speaker 1>And Americans rack up nearly one trillion dollars in credit

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<v Speaker 1>card debt. Angry New Jersey parents gathered for a school

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<v Speaker 1>board meeting after a student committed suicide. Plus more headaches

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<v Speaker 1>for travelers at JFK Airport. Michael bar More Ahead, I'm

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<v Speaker 1>John Stashoward Sports. The Devil's Locked in St. Louis. The

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<v Speaker 1>Rangers played tonight at an impressive first round for Tiger Woods.

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<v Speaker 1>That's all straight ahead on Bloomberg day Break, The business

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<v Speaker 1>news you need disturb your day, and just one fifteen

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<v Speaker 1>minute podcast each pointing on Apples, Spotify, The Bloomberg Business

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<v Speaker 1>Appen everywhere you get your podcasts. Good morning. I'm Nathan

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<v Speaker 1>Hagar and I'm Karen Moscow. Here are the stories we're

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<v Speaker 1>following today. Karen. The Hawks our front end center at

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<v Speaker 1>the FED this morning, and that is stoking fears of

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<v Speaker 1>higher interest rates to come. Both St. Louis Fed President

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<v Speaker 1>James Bullard and Cleveland Fed Chief Laretamester see the case

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<v Speaker 1>for raising rates by fifty basis points at their next meeting.

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<v Speaker 1>I think we can lock in this disinflationary trend by

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<v Speaker 1>continuing to have policy rate increases during even though the

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<v Speaker 1>real economies looks like it's gonna continue to grow and

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<v Speaker 1>the labor market broadly across the country looks like it

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<v Speaker 1>remains strong. But this juncture the incoming data have not

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<v Speaker 1>changed my view that we will need to bring the

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<v Speaker 1>Fed funds rate above five and hold it there for

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<v Speaker 1>some time. Indeed, at our meeting two weeks ago, setting

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<v Speaker 1>aside what financial market participation participants expected us to do,

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<v Speaker 1>I saw a compelling economic case for a fifty basis

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<v Speaker 1>point increase, which have brought the top of the target

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<v Speaker 1>range to five percent. Both Cleveland Fed President Larettamester and St.

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<v Speaker 1>Louis Fed Chief James Bullard are not voting members on

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<v Speaker 1>the f O m C, but they do have influence.

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<v Speaker 1>Right now, markets are still pricing in a twenty five

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<v Speaker 1>basis point hike next month. Well, Nathan, those hawkish comments

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<v Speaker 1>have stocks lower once again, this morning after dropping one

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<v Speaker 1>point four percent yesterday. S ANDP futures are down about

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<v Speaker 1>six tents of uppercent this morning. Ken van Lewin, CEO

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<v Speaker 1>of Van Lewin and Company, says Mester and Bullard are

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<v Speaker 1>rattling investors. The FED has its mandate to control inflation,

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<v Speaker 1>and it looks like they're going to be doing that,

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<v Speaker 1>So that's what's pushing rates up. Of course, in the

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<v Speaker 1>markets down. Ken van Lewin notes that benchmark can your

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<v Speaker 1>treasury yields are trading at their highest level this year.

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<v Speaker 1>Right now there are at three point eight nine percent.

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<v Speaker 1>Well equities are lower. Karen one stocks bucking the trend

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<v Speaker 1>this morning. Shares of Applied Materials are up nearly one percent.

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<v Speaker 1>The company gave a strong sales forecast thanks to increased

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<v Speaker 1>demand for gear that makes auto and industrial chips. We

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<v Speaker 1>get more from Bloomberg's Charlie Pellett. Applied is the biggest

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<v Speaker 1>maker of semiconductor manufacturing equipment. It says second quarter sales

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<v Speaker 1>will be about six point four billion dollars, that beat

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<v Speaker 1>the average annalist estimate of six point three billion. Many

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<v Speaker 1>of Applied Materials largest customers have slashed their budgets for

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<v Speaker 1>new plants and equipment this year in response to a

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<v Speaker 1>widespread glut, but its latest outlook suggests there are still

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<v Speaker 1>bright spots in the chip industry, including automotive semiconductors in

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<v Speaker 1>New York. Charlie Pellett Bloom Bird Day break Right, Earlie,

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<v Speaker 1>thank you well. Let's take a look at some other

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<v Speaker 1>stocks on the move this morning. Shares a Door dash

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<v Speaker 1>Or a more than six percent. The food delivery company

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<v Speaker 1>is forecasting earnings that toped estimates. Shares the DraftKings up

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<v Speaker 1>five percent, the gambling company posting fourth quarter sales that

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<v Speaker 1>beat estimates, And on the flip side, shares of Texas

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<v Speaker 1>Roadhouse Or down more than six percent, the restaurant chain

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<v Speaker 1>missing fourth quarter estimates. Let's turn to politics now, Karen,

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<v Speaker 1>because US China relations remain on the front burner. President

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<v Speaker 1>Biden expects to speak with President Shi Jinping soon about

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<v Speaker 1>that Chinese balloon shot down by the US. President addressed

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<v Speaker 1>the matter at the White House yesterday. We are going

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<v Speaker 1>to keep our allies and the Congress contemporaries informed all

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<v Speaker 1>we know and all we learn, and uh, I expect

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<v Speaker 1>to be speaking with President she and I hope we

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<v Speaker 1>have We're going to get to the bottoms. But I

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<v Speaker 1>make no apologies for taking down that balloon. President Biden

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<v Speaker 1>is still facing plenty of criticism from Republicans after his speech.

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<v Speaker 1>House Armed Services Committee Chair Mike Rogers says the suspected

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<v Speaker 1>Chinese spy balloon covered a lot of ground before the

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<v Speaker 1>President ordered it shot down. They watched it go over Guam.

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<v Speaker 1>Guess what. Lots of US presidents they are focused on. Asia,

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<v Speaker 1>watched to go over Hawaii. Lots of US military presence,

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<v Speaker 1>they're focused on Asia. We've watched the go for Alaska,

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<v Speaker 1>by the way, last military presence, But that thing was

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<v Speaker 1>collecting for a very long time. House Arm Services Chair

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<v Speaker 1>Mike Rogers spoke with Our Washington corresponded Joe Matthew on

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<v Speaker 1>Bloomberg Sound on. Catch the program weekdays at five pm

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<v Speaker 1>Eastern on Bloomberg Radio or listen on demand wherever you

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<v Speaker 1>get your podcasts. Will US China tensions run high here,

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<v Speaker 1>and there's yet another thing that could complicate them even further.

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<v Speaker 1>The White House will reportedly send its top Pentagon official

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<v Speaker 1>to Taiwan in the coming days. That's according to the

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<v Speaker 1>Financial Times. It's unclear how Beijing will respond. A Foreign

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<v Speaker 1>ministry spokesman says China opposes military ties between Washington and Taipei. Well, Nathan,

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<v Speaker 1>we turned to this week's retail sales figures, which showed

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<v Speaker 1>Americans continue to spend despite tight policy from the Fed.

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<v Speaker 1>Now your fresh data showing consumers have also racked up

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<v Speaker 1>nearly one trillion dollars in credit card debt, Bloomberg said,

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<v Speaker 1>Baxter has the story. This is definitely the result of

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<v Speaker 1>Americans wanting to buy things and spend running smack dab

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<v Speaker 1>into inflation. Most of the increase came in the final

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<v Speaker 1>quarter of two and it breaks a record set in

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<v Speaker 1>twenty nineteen, and the sixty one billion dollar up from

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<v Speaker 1>the prior quarter was the biggest scene in data going

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<v Speaker 1>back to nineteen ninety nine. Now, along with users just

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<v Speaker 1>swiping and tapping more, they're also missing payments, with delinquency

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<v Speaker 1>rates surpassing pre pandemic averages in San Francisco. I'm at

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<v Speaker 1>Baxter Bloomberg daybreak. All right, thanks, we have fresh data

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<v Speaker 1>on college endowment returns. They're not painting a rosy picture either.

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<v Speaker 1>US endowment returns tumbled last year during the global market route.

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<v Speaker 1>A new study says they lost an average eight percent

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<v Speaker 1>on the year ending June is a reversal from an

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<v Speaker 1>average gain of almost thirty one percent the prairie year.

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<v Speaker 1>This is Bloomberg. We're gonna have showers ending this morning.

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<v Speaker 1>It'll turn cloudy and breezy today. We're gonna get into

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<v Speaker 1>the low sixties early, but temperatures will fall through the afternoon.

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<v Speaker 1>By tonight, we'll be down in the upper twenties. Not

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<v Speaker 1>gonna look at some of the other stories making news

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<v Speaker 1>in New York and around the world. Good morning, Michael

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<v Speaker 1>bar Good morning, Nathan Angry. Parents in New Jersey pack

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<v Speaker 1>to school board meeting for the Central Regional High School

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<v Speaker 1>OOL in Bayville, where a teenager died by suicide last

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<v Speaker 1>week after a video allegedly captured her being bullied by

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<v Speaker 1>four classmates. Those four students are now facing criminal charges,

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<v Speaker 1>and the district superintendent has resigned. Parents like this man

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<v Speaker 1>say it's time for the school board to listen to

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<v Speaker 1>the community. His school system is currently in their national

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<v Speaker 1>spotlight for halliblasons. This school system has and is failing

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<v Speaker 1>our students. This administration is failing our students. I feel

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<v Speaker 1>that everything in this district is handled in a reactionary

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<v Speaker 1>in e jerk way when it's too late before the meeting.

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<v Speaker 1>Acting Superintendent Dr. Douglas Corbett says the district is working

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<v Speaker 1>with police and state officials in connection with the death

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<v Speaker 1>of the fourteen year old student by suicide who had

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<v Speaker 1>been cyber bullied. Of course, consequences followed, but I can't

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<v Speaker 1>tell the victim's parents what those consequences are. Superintendent Corbett

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<v Speaker 1>also says a thirty member crisis team is ready to

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<v Speaker 1>respond to the concern of parents and students. The parents

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<v Speaker 1>of a twelve year old New Jersey boy are grieving

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<v Speaker 1>after their son collapsed and died during football practice in Newark.

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<v Speaker 1>The tragedy occurred last week during a youth team's workout.

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<v Speaker 1>Elijah Jordan Brown Garcia went with his ten year old

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<v Speaker 1>brother to his wrecked team practice last Friday. He was

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<v Speaker 1>running some drills when he collapsed at West Side Park.

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<v Speaker 1>It took more than a half hour for e MS

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<v Speaker 1>to arrive, but by then it was too late. The

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<v Speaker 1>family is calling for CPR training for all coaches involved

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<v Speaker 1>in youth sports. A terminal at JFK Airport will remain

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<v Speaker 1>closed today. A power outage yesterday at Terminal one caused

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<v Speaker 1>flight delays and cancelations. This woman was among passengers left stranded.

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<v Speaker 1>We're getting news like all the other terminals are open,

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<v Speaker 1>just this one. A footnote to the story of flight

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<v Speaker 1>from Auckland to JFK made a U turn and went

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<v Speaker 1>back to New Zealand after traveling about nine thousand miles.

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<v Speaker 1>Passengers on the flight spent sixteen hours in the air

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<v Speaker 1>to fly back to Square One. Arizona Appeals Court has

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<v Speaker 1>rejected Republican carry Links challenge of her defeat in the

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<v Speaker 1>Arizona governor's race to Democrat Katie Hobbs. The court denied

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<v Speaker 1>a request to throw out election results in the state's

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<v Speaker 1>most populous county and hold the election again. Global News

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<v Speaker 1>twenty four hours a day, powered by more than hundred

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<v Speaker 1>journalists analysts in over a hundred twenty countries. I'm Michael Barr.

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<v Speaker 1>This is Bloomberg Nathan. Thanks Michael, time for the Bloomberg

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<v Speaker 1>Sports update, brought to you by Try State Out. He

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<v Speaker 1>Good morning, John Stansharn, Good morning. Eighth than the NBA

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<v Speaker 1>regular season about three forts over, but now is the

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<v Speaker 1>All Star Breaks. Sunday's game is in Utah for the

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<v Speaker 1>first time in thirty years. Le Bron James and Yanniston's

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<v Speaker 1>the Compo are the captains. They will not pick the

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<v Speaker 1>squads until just before tip off the next Julius Randall

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<v Speaker 1>will play. Jalon Bronson hopes to get a late invite

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<v Speaker 1>because there are three Eastern Conference All Stars with injuries.

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<v Speaker 1>DeMar De Rhodon and Jalen Brown have both missed the

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<v Speaker 1>last couple of games, and Jani's last night had to

0:10:00.679 --> 0:10:03.560
<v Speaker 1>leave with a sprained wrist. The Bucks one in Chicago.

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<v Speaker 1>They've won twelve in a row. Phoenix lost to the

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<v Speaker 1>l A Clippers. Kevin Durrant, now a member of the Sun's,

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<v Speaker 1>reflected on his time with the net There was a

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<v Speaker 1>lot of ups and downs, but I love the crime

0:10:13.600 --> 0:10:16.640
<v Speaker 1>so and everybody, and broken the load of the crime too.

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<v Speaker 1>So I built the family over there as they're gonna

0:10:19.360 --> 0:10:22.320
<v Speaker 1>always be a part of my journey. So we didn't

0:10:22.320 --> 0:10:24.680
<v Speaker 1>accomplish what we wanted to accomplish as far as winning

0:10:24.679 --> 0:10:27.440
<v Speaker 1>a championship, just like I told him, But I enjoyed

0:10:27.480 --> 0:10:30.360
<v Speaker 1>the crime kat. He added that once Kyrie Irving was traded,

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<v Speaker 1>the Nets were a team without an identity. He still injured.

0:10:33.080 --> 0:10:35.800
<v Speaker 1>Hopes to make his son's debut next month. Devils lost

0:10:35.800 --> 0:10:39.520
<v Speaker 1>in St. Louis four to just their fourth regulation road lost.

0:10:39.520 --> 0:10:41.840
<v Speaker 1>The Rangers are just behind the Devil's in the standings.

0:10:41.840 --> 0:10:44.720
<v Speaker 1>They've won six in a row. They played tonight and Edmonton.

0:10:44.760 --> 0:10:47.479
<v Speaker 1>Tiger was his first tournament in seven months at Riviera

0:10:47.520 --> 0:10:49.440
<v Speaker 1>in l A. Of course he's very familiar with and

0:10:49.480 --> 0:10:52.719
<v Speaker 1>Tiger finished strong. Bernie the last three holes shot two

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<v Speaker 1>under sixty nineties, five shots behind the co leaders Maxioma

0:10:56.160 --> 0:10:59.080
<v Speaker 1>and Keith Mitchell. Tim McCarver has died. He was eight one.

0:10:59.440 --> 0:11:02.000
<v Speaker 1>After long playing career, he was on the Mets broadcast

0:11:02.000 --> 0:11:05.120
<v Speaker 1>booth for sixteen years. He also called twenty three World

0:11:05.160 --> 0:11:09.199
<v Speaker 1>Series for three different networks. John stash Award Bloomberg Sports

0:11:11.960 --> 0:11:15.360
<v Speaker 1>Live from coast to coast, from New York to San Francisco,

0:11:15.559 --> 0:11:19.439
<v Speaker 1>Boston to Washington, d C. Nationwide on Sirius, XAMP, the

0:11:19.480 --> 0:11:24.120
<v Speaker 1>Bloomberg Business app, and Bloomberg dot Com. This is Bloomberg Daybreak.

0:11:25.120 --> 0:11:27.439
<v Speaker 1>Good morning, I'm Nathan Hagar. Let's take the pulse of

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<v Speaker 1>the auto industry. Now, it has been quite the year

0:11:30.080 --> 0:11:33.319
<v Speaker 1>for the sector and General Motor CEO Mary Barra says

0:11:33.480 --> 0:11:37.880
<v Speaker 1>demand for expensive trucks remains strong and that's allowing GM

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<v Speaker 1>to invest heavily in the future electric vehicles. In an

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<v Speaker 1>exclusive interview with Bloomberg's David Weston, CEO Mary Barra laid

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<v Speaker 1>out GM's path toward electrification while meeting demand for those

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<v Speaker 1>gas powered vehicles. Let's bring you part of that conversation. Now,

0:11:53.320 --> 0:11:56.160
<v Speaker 1>you've talked about I think a million vehicles by five

0:11:56.920 --> 0:11:59.719
<v Speaker 1>e vs. Right by that point, you believe you will

0:11:59.760 --> 0:12:02.120
<v Speaker 1>know or be in alcohol investment mode, that is to

0:12:02.160 --> 0:12:04.520
<v Speaker 1>say you'll start being to turn to profit. Well, we've

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<v Speaker 1>talked about I said, you know, we think our margins

0:12:06.280 --> 0:12:08.520
<v Speaker 1>at that point for our ev business will be in

0:12:09.200 --> 0:12:11.400
<v Speaker 1>the low single digits without i RA, a high er

0:12:11.440 --> 0:12:14.319
<v Speaker 1>with IRA. But we'll still be investing because as I said,

0:12:14.360 --> 0:12:16.079
<v Speaker 1>you know, we have I talked about the three battery

0:12:16.080 --> 0:12:18.319
<v Speaker 1>plants we have in the not too distant future, will

0:12:18.360 --> 0:12:21.120
<v Speaker 1>be announcing a fourth. But we see other investments will

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<v Speaker 1>make their and there's still parts of the portfolio that

0:12:23.600 --> 0:12:26.080
<v Speaker 1>we have an announced that will continue to add. So

0:12:26.360 --> 0:12:29.040
<v Speaker 1>you know we're going to be getting the right EVY

0:12:29.120 --> 0:12:33.360
<v Speaker 1>portfolio to cover the market uh through that period, so

0:12:33.440 --> 0:12:36.560
<v Speaker 1>it will extend beyond twenty but once we ramp up

0:12:36.600 --> 0:12:38.960
<v Speaker 1>some of these battery plants and they're running at full rate.

0:12:39.240 --> 0:12:41.240
<v Speaker 1>That's what allows us on those you know, the products

0:12:41.240 --> 0:12:43.640
<v Speaker 1>we have to start to really improve those margins. Are

0:12:43.679 --> 0:12:45.439
<v Speaker 1>you seeing the demand you need in order to get

0:12:45.480 --> 0:12:47.839
<v Speaker 1>to the levels you need for electric vehicles and people

0:12:47.880 --> 0:12:50.560
<v Speaker 1>wanting these well so far, you know, our our Hummer

0:12:50.640 --> 0:12:53.600
<v Speaker 1>our GMC Hummer e V is sold out. In fact,

0:12:53.640 --> 0:12:55.439
<v Speaker 1>we're not even taking orders. I can't wait till I

0:12:55.440 --> 0:12:58.640
<v Speaker 1>can turn that order bank on again. The lyric is

0:12:58.679 --> 0:13:01.560
<v Speaker 1>doing well. By the end of first quarter, will have uh.

0:13:01.640 --> 0:13:05.199
<v Speaker 1>You know, we believe delivered our our first year limited

0:13:05.360 --> 0:13:08.040
<v Speaker 1>edition and and you know, vecin taking orders for the

0:13:08.080 --> 0:13:12.280
<v Speaker 1>second model year and we've seen really strong interests there. Uh. Similarly,

0:13:12.520 --> 0:13:15.640
<v Speaker 1>we have a quarter of a million hand raisers for

0:13:16.120 --> 0:13:19.439
<v Speaker 1>the Equinox of Chevrolet Equinox and the Blazer e V

0:13:20.040 --> 0:13:22.280
<v Speaker 1>and the Silverado UM that's the one that will be

0:13:22.320 --> 0:13:25.840
<v Speaker 1>out in just a handful of weeks and against strong interests,

0:13:25.840 --> 0:13:28.520
<v Speaker 1>were very very confident that will sell all of those

0:13:28.640 --> 0:13:32.280
<v Speaker 1>this model year's UM sales uh and then some so

0:13:32.760 --> 0:13:35.240
<v Speaker 1>really strong demand and I think it's because of our products,

0:13:35.280 --> 0:13:38.280
<v Speaker 1>because they can more off the ultiam platform. We didn't

0:13:38.280 --> 0:13:41.480
<v Speaker 1>have to make compromises in what the performance or the range.

0:13:41.800 --> 0:13:44.400
<v Speaker 1>We were able to really understand what the customers looking

0:13:44.440 --> 0:13:47.199
<v Speaker 1>for in that vehicle and deliver it. You mentioned supply chains,

0:13:47.240 --> 0:13:49.440
<v Speaker 1>and obviously the automotive industry in general has had a

0:13:49.480 --> 0:13:51.160
<v Speaker 1>tough time because it chips in the last couple of

0:13:51.240 --> 0:13:53.320
<v Speaker 1>years because it'sply chains. What did you learn from that

0:13:53.360 --> 0:13:56.080
<v Speaker 1>experience and most specifically, what did you learn about what

0:13:56.120 --> 0:13:59.240
<v Speaker 1>general motors needs to own, what they need to control,

0:13:59.360 --> 0:14:02.000
<v Speaker 1>and what they can really shop out. I think what

0:14:02.080 --> 0:14:04.320
<v Speaker 1>we saw with you know, issues of the pandemic and

0:14:04.320 --> 0:14:07.640
<v Speaker 1>then all the side effects of that UM that we

0:14:07.679 --> 0:14:10.440
<v Speaker 1>needed to have a more resilient supply chain. And you know,

0:14:10.960 --> 0:14:14.400
<v Speaker 1>we've always from a final assembly aimed to build where

0:14:14.400 --> 0:14:16.800
<v Speaker 1>we sell, and I think we need to have sourcing

0:14:17.200 --> 0:14:20.720
<v Speaker 1>for the different countries we operate in UM that that

0:14:20.840 --> 0:14:23.440
<v Speaker 1>is more focused, so there's you know, there's more control

0:14:23.520 --> 0:14:25.840
<v Speaker 1>from that perspective. So that's what we're working to do,

0:14:25.960 --> 0:14:29.600
<v Speaker 1>especially as we look at our battery supply chain, what

0:14:29.680 --> 0:14:33.160
<v Speaker 1>we need to build these and also from a semiconductor perspective,

0:14:33.240 --> 0:14:36.080
<v Speaker 1>so you know, we are making changes to be more

0:14:36.160 --> 0:14:38.240
<v Speaker 1>robusts that I have to give a giant. Shout out

0:14:38.280 --> 0:14:41.080
<v Speaker 1>to our our team because between engineering, manufacturing and our

0:14:41.120 --> 0:14:44.840
<v Speaker 1>sourcing team, the miracles they worked over the last two

0:14:44.920 --> 0:14:46.880
<v Speaker 1>years to enable us to build the vehicles that we

0:14:46.920 --> 0:14:49.720
<v Speaker 1>did took a tremendous effort, and I want you to

0:14:49.720 --> 0:14:51.840
<v Speaker 1>know that we also last year we're able to do

0:14:51.880 --> 0:14:54.000
<v Speaker 1>that and our quality went up where most in the

0:14:54.040 --> 0:14:56.200
<v Speaker 1>industry went down. How important is it for you to

0:14:56.280 --> 0:14:58.240
<v Speaker 1>fill in all the different price points so you can

0:14:58.280 --> 0:15:01.320
<v Speaker 1>reach the full range of the DEA ship consumers. It's

0:15:01.360 --> 0:15:04.520
<v Speaker 1>critically important. If we want to achieve goals to get

0:15:04.560 --> 0:15:08.240
<v Speaker 1>to forty fifty and beyond a percentage of all new

0:15:08.320 --> 0:15:11.080
<v Speaker 1>vehicles sold to be electric vehicles, you have to get

0:15:11.120 --> 0:15:15.640
<v Speaker 1>into that thirty range because that's where the bulk of

0:15:15.640 --> 0:15:17.600
<v Speaker 1>the market is. And so that's why I'm so proud

0:15:17.760 --> 0:15:22.200
<v Speaker 1>of the Chevrolet Equinox and the Chevrolet Blazer, both evs

0:15:22.240 --> 0:15:25.080
<v Speaker 1>that are coming out this year. You know, the Equinox

0:15:25.120 --> 0:15:28.360
<v Speaker 1>will be around thirty dollars and the Blazer will be

0:15:28.400 --> 0:15:32.040
<v Speaker 1>in the you know, and those are very affordable vehicles

0:15:32.040 --> 0:15:37.160
<v Speaker 1>and best that they're loaded with technology, safety, technology, connectivity,

0:15:37.240 --> 0:15:39.800
<v Speaker 1>and I think the performance of those vehicles are just

0:15:39.800 --> 0:15:42.840
<v Speaker 1>going to surprise and delight our customers. And because it's

0:15:42.840 --> 0:15:44.520
<v Speaker 1>in the sweet spot of the market, we think, you know,

0:15:44.520 --> 0:15:46.840
<v Speaker 1>there's gonna be a huge opportunity to sell a lot

0:15:46.840 --> 0:15:49.160
<v Speaker 1>of them. As you look forward to the future, general motors,

0:15:49.200 --> 0:15:51.280
<v Speaker 1>where do you think you need to spend more? Where

0:15:51.280 --> 0:15:53.520
<v Speaker 1>do you think you need to spend less? Clearly we're

0:15:53.560 --> 0:15:57.160
<v Speaker 1>optimizing our internal combustion business, but we found that we

0:15:57.160 --> 0:15:59.720
<v Speaker 1>can do that with a lot less complexity. For instance,

0:15:59.760 --> 0:16:01.960
<v Speaker 1>I'm mentioned the Chevrolet trucks that will have one engine,

0:16:02.320 --> 0:16:04.680
<v Speaker 1>and so you know that allows us to do the

0:16:04.760 --> 0:16:07.560
<v Speaker 1>vehicle in a very efficient manner but still meet the

0:16:07.600 --> 0:16:11.240
<v Speaker 1>customer needs. Through COVID, we found we could take cost out,

0:16:11.360 --> 0:16:14.240
<v Speaker 1>reduced bureaucracy um and now we've got to you know,

0:16:14.400 --> 0:16:16.880
<v Speaker 1>continue to get at that, and that's why we announced

0:16:16.920 --> 0:16:19.480
<v Speaker 1>with earnings, even though it was record earnings, we announced

0:16:19.520 --> 0:16:21.720
<v Speaker 1>that and committed to take two billion dollars out of

0:16:21.760 --> 0:16:24.880
<v Speaker 1>structural cost between twenty three and twenty four. And I

0:16:24.920 --> 0:16:28.600
<v Speaker 1>know the team can do it. This is Bloomberg day

0:16:28.640 --> 0:16:31.640
<v Speaker 1>Break Today, your morning brief on the stories making news

0:16:31.720 --> 0:16:34.880
<v Speaker 1>from Wall Street to Washington and beyond. Look for us

0:16:34.880 --> 0:16:38.320
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0:16:38.440 --> 0:16:41.960
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0:16:42.160 --> 0:16:44.840
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0:16:51.920 --> 0:16:55.640
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0:16:55.680 --> 0:16:59.160
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0:17:07.720 --> 0:17:10.639
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0:17:17.280 --> 0:17:20.480
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