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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence podcast. Catch us live weekdays at ten am.

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Speaker 1: He's done on Apple, Cocklay and Android Auto with the

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Speaker 1: or watch us live on YouTube.

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Speaker 2: One of the big losers in today's sessions so far

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Speaker 2: is Nike, down nine and a half percent right now.

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Speaker 2: Quite a bit going on there, so let's bring in

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Speaker 2: put inm. Goyel, the senior US e commerce and retail

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Speaker 2: analyst at Bloomberg Intelligence.

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Speaker 3: Nike is in turnaround mode.

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Speaker 2: Elliott Hill is no longer a new CEO, He's just

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Speaker 2: the CEO because he's been there for about a year.

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Speaker 2: How is his effort to turn this company around shaping up?

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Speaker 4: I think his efforts to turn the US businesses shaping

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Speaker 4: up quite nicely. We are seeing momentum rebuild it in

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Speaker 4: the US. The issue is outside of the United States

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Speaker 4: and China US to where sales have really plunged, and

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Speaker 4: we don't think that they can, you know, quickly rebound

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Speaker 4: those sales anytime soon. It may be a twenty twenty

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Speaker 4: seven story to see any resurgence in China.

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Speaker 5: If that, what is the issue in China? Is it

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Speaker 5: their brand specific? Is it the Chinese consumer? What's going

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Speaker 5: on there?

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Speaker 4: I think the biggest issue is brand specific. So unlike

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Speaker 4: in the US, the Nike brand isn't perceived as a

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Speaker 4: higher and athletic brand. In fact, it's way too much

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Speaker 4: an off price and at discount. So the brand needs

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Speaker 4: to build brand momentum and brand heat. And yes, the

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Speaker 4: Chinese consumer isn't particularly you know, on its best feet

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Speaker 4: right now. But if you compare what's happening in China

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Speaker 4: and you look at Liulle Lemon, Liulle Lemon has had

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Speaker 4: outstanding results in China, much smaller, but you know, they've

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Speaker 4: been able to do really well there. So Nike really

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Speaker 4: just needs to get stuff together when it comes to product,

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Speaker 4: branding and marketing in that region.

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Speaker 2: What is the playbook for that? Have they detailed, have

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Speaker 2: they outlined something that sounds reasonable or is it kind

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Speaker 2: of still throwing things at the wall.

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Speaker 4: I think the playbook will be similar to what they

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Speaker 4: did in the US. The first thing that they've done

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Speaker 4: so far and we'll see how that works out, is

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Speaker 4: changed the reporting structure, so now all regions report directly

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Speaker 4: into Elliott Hill, so I guess he just has more

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Speaker 4: authority over those regions, seeing things you know firsthand. The

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Speaker 4: other thing that they're going to try to do is

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Speaker 4: just clean house there, right. They have to get rid

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Speaker 4: of the inventory that's just not speaking to the customers

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Speaker 4: and has been aged for some time. They have to

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Speaker 4: get out of off price, and they have to stop discounting.

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Speaker 4: And then once you get a new product to flow in,

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Speaker 4: you get the right brand message across. It's retail playbook

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Speaker 4: one oh one. They just need to execute. So execution

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Speaker 4: is huge here.

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Speaker 5: Talk to us about the Converse brand within the Nike

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Speaker 5: household there, so.

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Speaker 4: The yes, you know, the commerce brand, Yes, it's struggling,

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Speaker 4: but to me, it's less of a concern than China.

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Speaker 4: The brand is less than ten percent of their total

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Speaker 4: revenues from what we see, and while sales are down,

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Speaker 4: and while it is a brand that we'd like Nike

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Speaker 4: to see step up, especially when it comes to lifestyle,

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Speaker 4: other companies have done particularly well there. We'd say the focus.

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Speaker 4: You know, if I needed them to put focus on

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Speaker 4: one thing first, it would be China right now, Converse

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Speaker 4: after that, And that's what we're looking for.

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Speaker 2: And I know that there's been a lot of discussion

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Speaker 2: between performance and lifestyle over at Nike. What is the

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Speaker 2: path forward for Nike? I mean, has it chosen performance

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Speaker 2: across all of its markets or are some markets better

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Speaker 2: for performance versus lifestyle.

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Speaker 4: So they're sticking to performance, and I think that's the

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Speaker 4: right choice because performance is what Nike is about. It

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Speaker 4: is what drives the sports momentum. What we'd like to

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Speaker 4: see happen is that performance turns into lifestyle. So a

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Speaker 4: lot of shoes that are worn for the sport, for

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Speaker 4: the game have become lifestyle shoes too. So that's the

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Speaker 4: natural shift that we'd like to see with the new

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Speaker 4: innovation that Nike is launching.

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Speaker 5: So we have some experience now nine months, ten months,

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Speaker 5: eleven months of just teriff discussion.

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Speaker 6: Woon.

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Speaker 5: I think you were one of the first analysts we

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Speaker 5: talked to to say, oh boy, what's this going to

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Speaker 5: mean for various industries? What does it mean for the

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Speaker 5: at your business, the ath leisure business, kind of the

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Speaker 5: Nikes of the world, the Adidas is of the world.

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Speaker 4: Yeah, so footwear is largely important into the US, and

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Speaker 4: so are the peril When you think the athletic work space,

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Speaker 4: notably the footwear. It's predominantly made in Vietnam, and the

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Speaker 4: current tariff there is twenty percent. It will have an

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Speaker 4: impact on margins. In fact, Nike's gross margin if you

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Speaker 4: look at it, even what was recently reported, more than

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Speaker 4: half of it was due to tariffs and saying with

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Speaker 4: their guidance, So I think twenty percent exposure. They are

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Speaker 4: increasing prices selectively. They probably will have more efforts and

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Speaker 4: play in twenty twenty six, that's calendar twenty twenty six

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Speaker 4: to mitigate some of this, but it's not going entirely away.

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Speaker 4: It is a headband to margin.

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Speaker 7: Stay with us. More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto

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Speaker 1: with the Bloomberg Business app. Listen on demand wherever you

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Speaker 1: get your podcasts, or watch us live on YouTube.

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Speaker 5: All right, a bell Weather for some including myself, for

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Speaker 5: the US economy is FedEx f d X is the

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Speaker 5: ticker they reported some numbers stock trading a little bit

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Speaker 5: lower here. They have some issues with some of their aircraft,

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Speaker 5: but I don't know. I kind of think it's just

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Speaker 5: an awesome company. The stock is up about that's about

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Speaker 5: flat this year. Hasn't really done anything here, but it's

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Speaker 5: got a market cap of sixty seven billion dollars. I've

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Speaker 5: always been a big fan of FedEx. The MD eleven

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Speaker 5: is a great aircraft, but it's an old aircraft and

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Speaker 5: they have and reliance on that. Leek Clasgow does this

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Speaker 5: stuff for a living, Senior Transport Logistics and Chipping analys

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Speaker 5: for Bloomberg Intelligence Lee.

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Speaker 7: Now, FedEx reported some numbers. What did you learn?

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Speaker 8: Well, I mean their second quarter they performed pretty well,

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Speaker 8: and you know, they gave us some color about the

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Speaker 8: peak season peak season from an average daily volume growth,

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Speaker 8: they're looking at mid single digits that could increase too

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Speaker 8: high single digits because there's one extra operating day in

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Speaker 8: the quarter or during a peak.

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Speaker 6: Season, I should say.

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Speaker 8: So, you know, they seem to be executing on their

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Speaker 8: restructuring plan. The problem is is that in their second

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Speaker 8: half they're going to be having a lot of headwinds

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Speaker 8: that they're going to have to deal with. And those

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Speaker 8: headwinds relate to, you know, higher variable compensation expenses and

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Speaker 8: a less than truckload market. Which they're the biggest player

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Speaker 8: in that market that has been pretty depressed over the

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Speaker 8: last couple of quarters.

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Speaker 6: And it's can probably continue to be depressed.

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Speaker 8: And then you have, as you mentioned, the grounding of

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Speaker 8: their MD eleven fleet following the tragic accident of a

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Speaker 8: UPS plane.

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Speaker 6: A couple of weeks ago.

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Speaker 8: So you know, you add those three things up plus

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Speaker 8: some other things, it's about a six hundred million headwind

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Speaker 8: to its earning. So they have to deal with that

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Speaker 8: in some of the restructuring that they've done. Probably you know,

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Speaker 8: you're probably not going to see hit the bottom line

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Speaker 8: at least really directly until they're twenty twenty seven.

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Speaker 2: So the six hundred million dollar charge clearly not impressing investors,

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Speaker 2: even with the beat in the quarter that ended. Is

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Speaker 2: this a one time thing or is this something that

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Speaker 2: could drag out beyond the second half of this year

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Speaker 2: next year?

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Speaker 7: Excuse me?

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Speaker 8: Yeah, So on the MD elevens, I think expectations are,

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Speaker 8: you know, they should be back in service sometime.

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Speaker 6: Early next year. I don't really know.

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Speaker 8: Exactly when that's going to happen, but so you could

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Speaker 8: view that as a kind of a year term headwindable compensation.

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Speaker 8: You know that also is against difficult comparisons, so that's

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Speaker 8: also short term in nature and not something that can continue.

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Speaker 8: The biggest unknown for me, at least is the less

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Speaker 8: than truckload demand. The ISM Manufacturing index, which has been

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Speaker 8: contraction territory for thirty five at the last thirty seven months,

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Speaker 8: is indicating that less than truckload demand, which is mostly

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Speaker 8: industrial manufacturing, is going to continue to be weak in

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Speaker 8: the coming months ahead because that index, the ISM index,

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Speaker 8: is really a bell weather to an early indicator of

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Speaker 8: where LTL demand is heading.

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Speaker 9: Lee.

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Speaker 5: As you know, I am an expert on trucking. I

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Speaker 5: know what LTL means and TL means. I was I

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Speaker 5: had no idea that FedEx was the largest LTL provider.

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Speaker 5: Do you like them that they're in that business or

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Speaker 5: would you rather them farm it out to somebody.

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Speaker 8: Well that's a great question, Paul, because they're planning on

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Speaker 8: spinning that.

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Speaker 6: Out in June of next year. Uh yeah, there you go.

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Speaker 8: You know. They the argument always was that, you know,

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Speaker 8: maybe they could cross L their lt L and get

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Speaker 8: more profitable parcel business. That model really might have not

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Speaker 8: played out as much as as as they hoped, and

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Speaker 8: so they also hope to get a better valuation because

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Speaker 8: that lt L business, while it's been pretty depressed, they

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Speaker 8: it does trade at a higher higher multiples, uh, and

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Speaker 8: so they're trying to unlock kind of some.

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Speaker 6: Of the value there.

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Speaker 8: So you know, it'll be pretty interesting to see how

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Speaker 8: that company operates as a standalone provider. That industry is

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Speaker 8: pretty consolidated and has a lot of pricing discipline, and

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Speaker 8: we just hope that, you know, once FedEx Freight gets

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Speaker 8: out there and they're on their own, they're not going

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Speaker 8: to try to use pricing to to you know, gain share.

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Speaker 6: But we would note they.

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Speaker 8: Are still the largest player, so it's not like they're

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Speaker 8: looking to uh to gain a lot of share anyway.

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Speaker 8: So but you know, it will be an interest thing

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Speaker 8: to see once that once that gets spun.

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Speaker 6: Out in June.

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Speaker 2: You know, I'm looking Paul, excuse me, Lee and looking

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Speaker 2: at Paul and talking to Lee. In the past six months,

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Speaker 2: FedEx chairs up about twenty nine percent total return versus

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Speaker 2: ups up up almost six percent. Can you compare and

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Speaker 2: contrast their approach to some of the macro challenges that

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Speaker 2: faces the industry.

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Speaker 8: Yeah, so they're both in the process of restructuring their

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Speaker 8: networks to deal with the new realities that you know,

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Speaker 8: B two C or e commerce is really where the

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Speaker 8: growth is going to come from. And these networks were

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Speaker 8: created a long, long time ago with the idea that

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Speaker 8: you know, a carrier would go to a lawyer's office

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Speaker 8: with one hundred envelopes, drop off those envelopes and pick

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Speaker 8: up fifty envelopes, and that density really can drive profitability

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Speaker 8: where you know, as you know, if you get like

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Speaker 8: you know, if you order rubber bands from Amazon, that

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Speaker 8: one package that goes to your doorstep is a lot

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Speaker 8: more expensive to deliver. So they're just dealing with that

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Speaker 8: reality and they've been slow to kind of change their networks.

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Speaker 8: And UPS and FedEx are both in that process. You know,

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Speaker 8: UPS has done things a little earlier, I would say,

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Speaker 8: and you know whether it is you they spun out

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Speaker 8: or I should say, sold their less than truckloaw business,

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Speaker 8: the TFI, a Canadian provider, you know.

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Speaker 6: A couple of years ago.

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Speaker 8: They're all looking to try to gain more share of

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Speaker 8: the small and medium size shippers and get away from

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Speaker 8: the large shippers like Amazon, which really aren't that profitable.

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Speaker 7: Stay with us. More from Bloomberg Intelligence coming up.

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Speaker 1: After this, you're listening to the Bloomberg Intelligence podcast. Catch

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Speaker 1: us live weekdays at ten am Eastern on Apple, Cocklay

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Speaker 1: and Android Auto with the Bloomberg Business App. Listen on

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Speaker 1: demand wherever you get your podcasts, or watch us live

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Speaker 1: on YouTube.

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Speaker 7: Scarlette, I have breaking news. You may want to get

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Speaker 7: the red headline ready for this one.

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Speaker 3: Okay, tell me today.

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Speaker 7: I put a deposit down on my first cruise ever.

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Speaker 3: What called to this?

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Speaker 7: Well, my partner, my girlfriend, she's we're going, we're.

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Speaker 5: Doing it in Fallwell, I just told you Viking Cruise. Yeah, basically,

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Speaker 5: Viking Cruise is your France in the fall.

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Speaker 3: And how are you feeling about this?

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Speaker 7: I'm a little nervous.

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Speaker 5: But it's baby steps, she says. It's not like a

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Speaker 5: big carnival cruise. We got like five thousand people on.

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Speaker 5: It's a little riverboat, you know, kind of cruise.

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Speaker 2: Okay, so in two years we should look for you

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Speaker 2: on a carnival crue could.

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Speaker 7: Be, could be. But that brings us to our next guest.

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Speaker 7: I mean, Brian Egger.

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Speaker 5: He's writing the research note right now as we speak.

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Speaker 5: Sweeney in the cruise business. Brian Eigger, he's a senior

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Speaker 5: gaming and lodging analysts for Bloomberg Intelligence, Brian, we had

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Speaker 5: Carnival Cruise Lines reported some numbers today.

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Speaker 7: What did they have to say?

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Speaker 10: Yeah, So, I mean the fourth quarter, the fiscal fourth

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Speaker 10: quarter editor Vember three, was a pretty decent quarter in

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Speaker 10: truth of yeel growth. And I think more importantly, going

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Speaker 10: to next year, they are expecting to see about two

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Speaker 10: percent the yield growth or so with good cost control.

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Speaker 10: And that's encouraging because there were some concerns that industry

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Speaker 10: growth of supply, particularly in the Caribbean, not by Carnival

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Speaker 10: but by its competitors, might dampen your growth going to

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Speaker 10: next year. So while there's still some uncertainty, I think overall,

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Speaker 10: the takeaway was fairly encouraging on that front.

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Speaker 2: How much of their business depends on converting people like

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Speaker 2: Paul Sweeney from a never cruiser to a maybe cruiser

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Speaker 2: to a you know, a reliable cruiser, basically increasing their

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Speaker 2: market share with bringing in new customers.

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Speaker 10: Yeah, Historically it's been a big factor in North America,

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Speaker 10: trying to track that first time cruise customer. It's far

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Speaker 10: less penetrated than other forms of vacationing. That's even more

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Speaker 10: true if you go into other parts of the world

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Speaker 10: like Europe and Asia, but it's definitely part of that

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Speaker 10: that first time customer. On the other hand, you know

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Speaker 10: much what they do depends on loyalty programs and getting

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Speaker 10: repeat business as well.

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Speaker 5: So Brian give us that the consumer's kind of wavering

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Speaker 5: a little bit there. I mean, the ke shaped economy.

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Speaker 5: How does a cruise industry deal with that? Because I

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Speaker 5: know there's different tiers of cruising out there. How do

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Speaker 5: you see that in the cruise business?

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Speaker 6: I mean, if you go.

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Speaker 10: Back historically, the cruise industry is moderate recyclical who probably

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Speaker 10: yield to be more resilient than for example, business travel

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Speaker 10: oriented hotel room rates. So you know, there was some

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Speaker 10: obviously some vulnerability. But that being said, the leisure consumer,

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Speaker 10: the leisure consumer of travel, has been really resilient. It

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Speaker 10: held up extremely well throughout this period of economic uncertainty. Historically,

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Speaker 10: passenger growth has kept up with supply. I mean, the

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Speaker 10: goodness for Carnival, they've only looking at about one percent

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Speaker 10: supply growth in twenty twenty six. There's certainly more coming

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Speaker 10: from their competitors, but you know that's ply out for

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Speaker 10: them specifically, is a healthy backdrop even if we do

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Speaker 10: see a step back and consumer spend.

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Speaker 2: Speaking of their competitors, I'm just looking at a comparison chart

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Speaker 2: of all the big cruise operators, and Paul's Viking is

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Speaker 2: up about sixty four percent so far this year, Carnival

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Speaker 2: up about twenty three percent, Norwegian Cruise Line down eleven percent,

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Speaker 2: and roll Career being up thirty percent.

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Speaker 3: How are their strategies different?

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Speaker 2: I mean, for those who don't cruise, it might seem

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Speaker 2: like they're all one and the same.

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Speaker 10: Yeah, I think there are different ways you could interpret

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Speaker 10: those disparities in stock price performance. But I think the

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Speaker 10: way I think about it is Viking is certainly very

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Speaker 10: focused on the luxury kind of niche cruz segment.

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Speaker 3: Paul fancy.

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Speaker 10: Good good for Paul, and I think generally speaking that

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Speaker 10: part of the business is held up well. You know,

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Speaker 10: Carnival probably is maybe gained some note because it's done

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Speaker 10: a good job at achieving its return on investment capital goals,

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Speaker 10: done so sooner to get to that twelve percent range

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Speaker 10: than they expected, and because they've got so little supply growth,

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Speaker 10: that does provide a little bit more conservativism. But you know,

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Speaker 10: there are certainly some differences across the brands.

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Speaker 5: All right, Brian, how are my friends on the strip

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Speaker 5: in Vegas doing these days?

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Speaker 10: Yeah, I mean Vegas is finishing up the year with

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Speaker 10: modest growth, but it's been a tough It was a

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Speaker 10: tough summer period in Las Vegas, particularly kind of the

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Speaker 10: mid market segment. Much like I said about cruising, the

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Speaker 10: high end business, high end hotel business, what oriented demand

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Speaker 10: is held up better, but the mid market, midweek demand

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Speaker 10: during kind of shoulder periods, and the mid market has

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Speaker 10: experienced some disruption, probably because of construction, probably because of

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Speaker 10: difficult comparisons, probably because we are saying that luxury into

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Speaker 10: the market holding up a bit better.

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Speaker 2: So is everyone then going to double down on chasing

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Speaker 2: after the luxury customer.

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Speaker 10: It really depends on what part of the business companies

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Speaker 10: are in. On balance win, which is more high end

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Speaker 10: has performed better in terms of its rep part, let's say,

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Speaker 10: in Las Vegas, than some of its rivals. But you

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Speaker 10: know those are these Obviously these trends shift. But I

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Speaker 10: think that's been notable across the leisure travel sector is

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Speaker 10: the relative out performance of luxury high end with perhaps

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Speaker 10: a little bit more challenging comparisons and difficult conditions for

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Speaker 10: kind of the the mass market or those dependent on

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Speaker 10: other sources of business.

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Speaker 2: And we know that these gaming companies, these casino companies

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Speaker 2: rely a lot more on China than they do on

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Speaker 2: the strip. Overall, how's Macau looking for them?

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Speaker 10: So, I mean mcaw has been recovering, you know, the

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Speaker 10: particularly the what we call kind of the mass business

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Speaker 10: in Macau that has some mantle ory effect on Lallas

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Speaker 10: Vegas as well, although you know, low luck levels and

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Speaker 10: back right in Vegas have been a bit bit soft

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Speaker 10: in some periods this year. But you know that business

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Speaker 10: is certainly coming back in Macow. It's coming back a

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Speaker 10: lot after obviously the pandemic. It's a different type of business.

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Speaker 7: Stay with us. More from Bloomberg Intelligence coming up after this.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Apple, Corplay and Android

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Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 5: A news story that's got a lot of people's attention,

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Speaker 5: like my kids are paying attention. TikTok is being bought

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Speaker 5: by a group of buyers led by Oracle Corporation, with

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Speaker 5: the company and byte Dance signing binding agreements to create

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Speaker 5: a US joint venture. I don't care, but a lot

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Speaker 5: of people do. Man Deeve Sing, senior tech analysts for

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Speaker 5: Bloomberg Intelligence, joins us Mandy talk to us about.

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Speaker 7: This structure here.

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Speaker 5: I know that the government was either to bite Dance,

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Speaker 5: which the Chinese company either sell this sing or shut

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Speaker 5: it down. Does this is satisfying kind of the requirement here?

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Speaker 9: I think so. And look, the main point of contention

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Speaker 9: was the algorithm, so clearly you know there is a

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Speaker 9: decoupling of that versus the app. And you know, in

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Speaker 9: terms of the ownership, Oracle was the most likely sort

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Speaker 9: of candidate when it comes to leading this joint venture,

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Speaker 9: and that turned out to be the case. So from

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Speaker 9: that perspective, I do think this should be palatable to

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Speaker 9: both the US and the Chinese government.

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Speaker 2: Although we don't know if the Chinese regulators will definitely

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Speaker 2: prove it right. They have yet to say whether they'll

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Speaker 2: be this transaction.

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Speaker 9: I mean, we've seen that many times a lut can

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Speaker 9: go wrong, but in this case, at least, you know,

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Speaker 9: the joint venture that was formed here had the blessing

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Speaker 9: of the US government. So it sounds like, you know,

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Speaker 9: this was the intended proposal, and that's how it turned

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Speaker 9: out to be in terms of by dance, you know,

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Speaker 9: agreeing to sell the app to this joint venture.

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Speaker 5: What I like about this is it includes silver Like

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Speaker 5: and from my money, the baseball my career, the smartest

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Speaker 5: technology pe money out there by far is Silverlake.

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Speaker 7: Some really smart folks there, So if they're involved, it's

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Speaker 7: got to be a good deal. That's how I look

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Speaker 7: at it.

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Speaker 5: Mandy talk to us about like what the competitors are

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Speaker 5: thinking here. Is TikTok still as formidable going forward? Do

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Speaker 5: you think as it has been?

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Speaker 9: Not really? I mean, if you look at the rund

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Speaker 9: rate of Instagram reels, they have surpassed fifty billion dollars

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Speaker 9: in run rate. That would have been unimaginable given the

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Speaker 9: kind of lead TikTok had over Instagram, and Instagram reels

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Speaker 9: came from behind, and now they have a fifty billion

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Speaker 9: dollar rundrate. Same thing with YouTube shorts. They have an

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Speaker 9: engagement share that's almost surpassed TikTok at this point of time. So,

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Speaker 9: you know, the last couple of years, TikTok seems to

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Speaker 9: have lost them when it comes to the pace at

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Speaker 9: which they were adding users and the engagement growth, et cetera.

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Speaker 9: And if I had to ballpark, you know, the US

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Speaker 9: revenue of TikTok would not be you know, over twelve

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Speaker 9: to fifteen billion dollars. So Reels being fifty billion dollars

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Speaker 9: just goes to show what kind of a missed opportunity

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Speaker 9: that was for TikTok.

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Speaker 3: Interesting.

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Speaker 2: So what does this mean for Meta, which owns Instagram

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Speaker 2: and Reels and of course is now firmly in the

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Speaker 2: lead and is no longer playing catchup to TikTok.

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Speaker 9: I mean a lot of this, you know, revenue ramp

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Speaker 9: up for Reels was driven by the fact that you know,

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Speaker 9: Facebook or Meta had a better AD stack and they

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Speaker 9: kept you know, improving that with more personalization. Now with

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Speaker 9: applying generative AI on top of that, that has helped

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Speaker 9: them with ad pricing. So these are incremental things where

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Speaker 9: TikTok you know, couldn't even keep its algorithm. So the

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Speaker 9: fact that you know, they have to redo the algorithm,

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Speaker 9: redo the ad part, the personalization part, is likely the

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Speaker 9: reason why their AD revenue hasn't ramped up and it's

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Speaker 9: going to take them a while. Even if you know

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Speaker 9: this joint venture would start putting money into the company

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Speaker 9: to you know, improve its algorithm and personalization. I don't

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Speaker 9: think it's going to happen that quickly in terms of

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Speaker 9: where they were, you know, two three years back.

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Speaker 5: Should we expect this new joint venture to maybe go

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Speaker 5: public at some point.

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Speaker 9: Still early days, I would say, given the algorithm changes

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Speaker 9: a big one. I mean, you have to even though

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Speaker 9: you know users are used to coming to the app,

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Speaker 9: you have the traffic, but we know in the world

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Speaker 9: of AI, it's about personalization, It's about that recommendation system,

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Speaker 9: and you know, rewriting the algorithm. I do think it's

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Speaker 9: going to take a while, and it comes down to,

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Speaker 9: you know, what kind of talent they can attract into

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Speaker 9: this new entity. So a lot has to go right

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Speaker 9: before you know, we can look at this joint venture

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Speaker 9: going public anytime soon.

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Speaker 3: That would be really interesting.

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Speaker 5: I'm still going to go make the pitch if I'm

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Speaker 5: our bank ground, be right on the doorstep today, no doubt.

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Speaker 5: I want to be the first guy there and saying

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Speaker 5: let's take this in public.

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Speaker 7: Here's what you need to do.

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Speaker 3: And you think they're ready. This is something that they

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Speaker 3: want to do.

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Speaker 7: I don't know. I would think so. I mean I

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Speaker 7: can bring a lot of money.

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Speaker 9: The administration ORCO would focus a lot more on their

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Speaker 9: cloud business right now in the ramp up there they

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Speaker 9: I don't think they have the time to focus on

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Speaker 9: reviving TikTok.

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Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,

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Speaker 1: and anywhere else you get your podcasts. Listen live each

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Speaker 1: weekday ten am to noon Eastern on Bloomberg, the iHeartRadio app,

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Speaker 1: tune In, and the Bloomberg Business app. You can also

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00:24:05,640 --> 00:24:09,080
Speaker 1: watch us live every weekday on YouTube and always on

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