WEBVTT - Market And Supply Chain Pressures

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<v Speaker 1>Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside

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<v Speaker 1>my co host Matt Miller. Every business day, we bring

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<v Speaker 1>you interviews from CEOs, market pros, and Bloomberg experts, along

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<v Speaker 1>with essential market moving news. Find the Bloomberg Markets Podcast

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<v Speaker 1>on Apple Podcasts or wherever you listen to podcasts, and

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<v Speaker 1>at Bloomberg dot com slash podcast. Let's talk about this

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<v Speaker 1>wall of worry. We've got interest rates rising, we've got inflation,

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<v Speaker 1>we've got the economy that is slowing. What is a

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<v Speaker 1>money manager to do? What is a portfolio manager to do?

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<v Speaker 1>Let's check in with Tom Mantion, He's managing director for

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<v Speaker 1>UBS Wealth Management. Tom, what are you telling your clients

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<v Speaker 1>here given some of those challenges, those headwinds, including geopolitical

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<v Speaker 1>issues that are facing investors these days, other than going

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<v Speaker 1>to get a steak at Keen's. Yeah, absolutely so. Um, Look,

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<v Speaker 1>the markets probably overreacting to two tensions in in Russian Ukraine.

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<v Speaker 1>It's apt to do that. I think you need to

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<v Speaker 1>look past this where we're gonna be in two years,

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<v Speaker 1>five years, seven years. Um. If people need to do

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<v Speaker 1>something and feel like they have to take action, I'm

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<v Speaker 1>not sure safe Haven treasuries are the place to be

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<v Speaker 1>right now on the front end of the FED tightening cycle.

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<v Speaker 1>So maybe commodity exposure energy might be a better way

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<v Speaker 1>to hedge anybody's fears of escalating tensions in Russia. I

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<v Speaker 1>wonder about your thoughts on energy, because you know, this

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<v Speaker 1>run up hasn't been entirely driven by Russia Ukraine. We

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<v Speaker 1>were already on the way up. And um, you know,

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<v Speaker 1>assuming that Putin just takes a couple of states and

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<v Speaker 1>people get kind of angry but do nothing about it,

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<v Speaker 1>what happens after everything calms down? Is there still support

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<v Speaker 1>for oil at nine dollars a barrel? Well, clearly the

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<v Speaker 1>global economy is growing, and as the pandemic receives and

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<v Speaker 1>things open up and people start moving around again, Yeah,

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<v Speaker 1>there's gonna be more demand for for energy, so there

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<v Speaker 1>could be support for a higher price of oil for

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<v Speaker 1>for longer. I think the risk here is that that

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<v Speaker 1>you know, you get to a hundred and fifty barrel

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<v Speaker 1>oil and that that will take a chunk out of

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<v Speaker 1>global demand. So, um, that is the tail risk in

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<v Speaker 1>this scenario. I would say, Tom, what's the biggest question?

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<v Speaker 1>They're the most common question, the most common concern you

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<v Speaker 1>hear from your clients. I think I think you know,

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<v Speaker 1>before the Ukraine, Russia, it's the FED, and the said

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<v Speaker 1>has been been a hundred percent the top of everybody's mind.

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<v Speaker 1>What are they gonna do as a fifty basis points

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<v Speaker 1>is if four hikes is six hykes, is it more

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<v Speaker 1>than six hykes? I think the market is probably overreacted

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<v Speaker 1>to that as well. I think, Um, you know, the

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<v Speaker 1>set has consistently been slow and steady, and I would

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<v Speaker 1>not anticipate anything different than that. So I would expect

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<v Speaker 1>basis point hike in March, and that's what we've been

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<v Speaker 1>telling our our clients, and I think that it will

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<v Speaker 1>continue slow and steady from there. You know, we're continually

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<v Speaker 1>continuously hearing um worries about earnings and analysts kind of

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<v Speaker 1>downgrading their outlook. UM. The quants over at JP Morgan say, um,

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<v Speaker 1>you know this glut of earnings gloom signals trouble for

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<v Speaker 1>the markets. At the same time, JP Morgan's UH chief

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<v Speaker 1>their strategists, Mislav Matchka, says, UM, stock pessimism is in vogue,

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<v Speaker 1>but it's wrong. How do you how do you look

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<v Speaker 1>at US earnings? The US corporate picture and how that's

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<v Speaker 1>going to affect stocks. I think we're I think we're

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<v Speaker 1>still in a in a growth mode for for US

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<v Speaker 1>corporate earnings for sure. Um, you had to report this morning,

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<v Speaker 1>it was quite good. Um. I think the US economy

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<v Speaker 1>continues to show strengths in the stace of of inflationary pressures,

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<v Speaker 1>and quite frankly, I think you know, inflation will begin

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<v Speaker 1>to subside, you know, for a host of reasons. Right,

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<v Speaker 1>cons get easier. Uh, that's just maths. But but more

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<v Speaker 1>importantly is people spend on services and not goods. That'll

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<v Speaker 1>that'll help um, some of that inflation data as well.

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<v Speaker 1>So you know, I'm I'm kind of unconcerned. So I'm

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<v Speaker 1>on the I'm on the strategist side. I think I'm

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<v Speaker 1>constructive of bullish on US equities through the year. So

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<v Speaker 1>I would I would tell people, you know, take advantage

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<v Speaker 1>of of things you like here at this market right

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<v Speaker 1>now and possibly get some capital at work. Yeah, it's interesting,

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<v Speaker 1>you know, the Federal Reserve. We're looking at the w

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<v Speaker 1>I r P function on the Bloomberg terminals suggesting that

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<v Speaker 1>the market's discounting seven rate hikes in County. Is that

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<v Speaker 1>really bring to the for the risk that this fed

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<v Speaker 1>overreacts and maybe does push this economy into recession or

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<v Speaker 1>at least you know reset. I think it's probably more

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<v Speaker 1>indicative of the market overreacting to the said than the

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<v Speaker 1>other way around. Uh, you know it would It would

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<v Speaker 1>totally surprised me if we saw seven hikes um uh

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<v Speaker 1>in two Uh that that seems a little aggressive, especially

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<v Speaker 1>given the backdrop. Right. Um, you know that if if

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<v Speaker 1>we do get escalating tensions of oil prices, do get

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<v Speaker 1>over a hundred bucks at barrel, that's gonna cool demand.

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<v Speaker 1>It's gonna cool inflation. It's gonna cool demand for goods

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<v Speaker 1>and services. So yeah, I would go, I would I

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<v Speaker 1>would play the flip side of that coin for sure.

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<v Speaker 1>All Right, definitely over reacted here. Interesting. All right, We'll

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<v Speaker 1>see how this plays out. Tom, Thanks much for joining us. Uh.

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<v Speaker 1>I really appreciate getting your thoughts. Tom Manton, Managing director

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<v Speaker 1>for UBS Wealth Management, based up in Stanford, Connecticut. Let's

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<v Speaker 1>get to our next get straight away. R J. Gallo,

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<v Speaker 1>He's no stranger here, senior portfolio manager at Federator Herme's

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<v Speaker 1>r J. What are you telling your fixed income portfolio

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<v Speaker 1>managers at Federator Hermes. Today we're still staying short. Um,

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<v Speaker 1>the Russia Ukraine developments have unfolded in a manner that

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<v Speaker 1>you can't say it's too surprising, but um, it's it's

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<v Speaker 1>hard to argue that it's over. I think the key

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<v Speaker 1>right now is further escalation in Russia Ukraine grabs the

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<v Speaker 1>markets by the collar and pulls them away from the

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<v Speaker 1>inflation movie that we've been watching for obsessively for a

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<v Speaker 1>while now. But once we get past the most dramatic

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<v Speaker 1>parts of Russia Ukraine, we still have to focus on inflation.

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<v Speaker 1>Uh seven percent is too high. If there are many

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<v Speaker 1>paths that the Ukraine Russia situation can follow, but many

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<v Speaker 1>of them involved aggravating the inflation problem. So inflation is

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<v Speaker 1>still a major issue. As a result, on net we

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<v Speaker 1>have we're a little less short than we worst day

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<v Speaker 1>two weeks ago, but we still are maturely short in

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<v Speaker 1>our duration call across the fixed and confranchise of Federated Herms.

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<v Speaker 1>So where do you go to hide from Ation's what's

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<v Speaker 1>the safest place? Brond managers hate inflation right and arose

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<v Speaker 1>the the value of your fixed coupon. Certainly, consumers are

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<v Speaker 1>worried about it. Ha's become a political issue. Within a

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<v Speaker 1>fixed income portfolio. The ways to play defense floating rate,

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<v Speaker 1>take credit risk, reduced duration. UH. Last year we were

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<v Speaker 1>heavily overweight TIPS and our total return bond fund that

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<v Speaker 1>was a huge wind. Tips this year haven't been quite

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<v Speaker 1>as strong because it was basically pricing in the inflation surprise.

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<v Speaker 1>You want to get in before the inflation surprises in

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<v Speaker 1>the price. And then the feed had to react by

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<v Speaker 1>their massively hawk ish one eighty, which drives really yields

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<v Speaker 1>up and is now depressing TIPS returns on a year

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<v Speaker 1>today basis the Tips, the Bloomberg Tips index is down

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<v Speaker 1>about three and a half percent. We have a Bloomberg

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<v Speaker 1>Tips index. Yeah, wow, yeah for sure. Why not? Why

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<v Speaker 1>you t t R you you if you have a

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<v Speaker 1>terminal in front of you, all right, So it's interesting

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<v Speaker 1>here are j You know. One of the concerns I

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<v Speaker 1>have is that the FED is going to blow this,

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<v Speaker 1>that they're gonna be too aggressive. Maybe do fifty basis

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<v Speaker 1>points in March and then do maybe total seven or

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<v Speaker 1>so I think the market that could be a problem

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<v Speaker 1>for the market. Are you concerned about the Fed maybe

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<v Speaker 1>overstepping their bounds. Um, I'm concerned that it could happen,

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<v Speaker 1>but I do think I'm often almost a little surprised

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<v Speaker 1>if you talk about this in the markets so that much.

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<v Speaker 1>If you desktop your macroeconomics from grad school, Um, you

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<v Speaker 1>know years ago. For a lot of people, maybe more.

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<v Speaker 1>The role of expectations is fundamental. Uh, And the Fed

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<v Speaker 1>now has to talk tough. They need to fuel expectations

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<v Speaker 1>that they will maybe go too far. Why because that

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<v Speaker 1>helps them from not having to go too far. If

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<v Speaker 1>people are concerned that the Fed is going to tighten

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<v Speaker 1>seven times and slow the economy and slow stocks, what

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<v Speaker 1>happens financial conditions tighten. That's what the FED wants. It

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<v Speaker 1>could actually reduce the terminal FED funds rate. If the

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<v Speaker 1>markets believe the Fed is going to be tough on inflation,

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<v Speaker 1>it is in that's their objective. Now, you don't hear

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<v Speaker 1>Powell talking about it because he's not like he's only

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<v Speaker 1>a ben burnankie. He's not a macroeconomist who's all about

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<v Speaker 1>shaping expectations. But that's the script they're following. Now is

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<v Speaker 1>the time to talk tough on inflation. Even Neil Kashkari

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<v Speaker 1>is somewhat become more hawkish than he was, all right,

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<v Speaker 1>I mean, how could you not. There's no other direction

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<v Speaker 1>for him to go. Let's face it, that's right now.

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<v Speaker 1>I'd argued today I was talking to our ahead of

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<v Speaker 1>risk management. I said, the FED is not hawk is

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<v Speaker 1>The FED is a hawk and they're they're talking like

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<v Speaker 1>a hawk and they're hunting inflation and that serves their objective.

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<v Speaker 1>It actually could reduce the level to which they have

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<v Speaker 1>to hike rates if they weren't talking tough. Yeah. I

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<v Speaker 1>don't know what the FED can do though. I think

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<v Speaker 1>it's a supply chain issue primarily. But we'll see. R. J. Gallows,

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<v Speaker 1>Senior portfolio manager for Federated Herme's you never see a

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<v Speaker 1>mission undergrad. He's got an MP from Princeton. He's had

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<v Speaker 1>a couple of economics. They're pretty good. They're pretty good schools.

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<v Speaker 1>Matt and I love talking about the global supply chain

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<v Speaker 1>challenges out there, from the ship stuck at sea to

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<v Speaker 1>the ports overloaded and how it impacts different industries. Statement

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<v Speaker 1>take a view of that from the world of the

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<v Speaker 1>fashion industry, and we could do that with ronand Samuel

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<v Speaker 1>CEO of corn It Digital is a publicly traded company

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<v Speaker 1>on the NASTAC k r NT is a symbol Ronan.

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<v Speaker 1>Thanks so much for joining us here. Just let's just

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<v Speaker 1>start out and just refresh our memory. What do you

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<v Speaker 1>guys do at Corner Digital. Yeah, first of all, it's

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<v Speaker 1>great to be here with all of you. And what

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<v Speaker 1>is Corny Digital is doing is actually comes forming the

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<v Speaker 1>textile industry and the fashion industry to on demand, sustainable

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<v Speaker 1>production and changing totally the supply chain of this industry. So, um,

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<v Speaker 1>how are you doing that right now? As we run

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<v Speaker 1>into these incredible supply chain walls and chip shortages. How

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<v Speaker 1>much more difficult is it? So? As you know, um,

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<v Speaker 1>the supply chain is broken, and specifically the supply chain

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<v Speaker 1>for the fashion industries, who is totally broken. The industry

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<v Speaker 1>used to produce in large quantities in China, in Bangladesh,

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<v Speaker 1>shipping it overseas UH and planning everything eighteen months in entrance, um,

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<v Speaker 1>and trying to focus what the consumer and people will

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<v Speaker 1>consume in eighteen months from now, which is impossible in

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<v Speaker 1>today worlds where everything is moving digital and the consumer

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<v Speaker 1>would like to get things on demand and the generations

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<v Speaker 1>that would like to be unique, it's almost impossible to focus,

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<v Speaker 1>and what we see today is at thirty percent of

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<v Speaker 1>the everything that being produced is actually being thrown away.

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<v Speaker 1>This industry is the second most polluted industry and one

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<v Speaker 1>of the main reasons over productions are being made in

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<v Speaker 1>China and by Gladesh. What Comte is driving is the

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<v Speaker 1>fully different supply chain. Actually, what we are enabling is

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<v Speaker 1>the consumers to order what they want in e commerce

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<v Speaker 1>in any marketplace, um any products they would like. The

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<v Speaker 1>products exists, virtually does not exist, was not produced yet,

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<v Speaker 1>and only one the consumer order the product. Only then

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<v Speaker 1>it goes to production and being delivered to the consumer

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<v Speaker 1>within forty eight hours to his house. So this is

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<v Speaker 1>the entire system is actually creating the new operating system

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<v Speaker 1>for the fashion industry. For the text that is so Ronnan.

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<v Speaker 1>You know, for pretty much anywhere around the world, you

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<v Speaker 1>look at a piece of clothing and you look at

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<v Speaker 1>the tag and it is made in China. And for

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<v Speaker 1>a lot of industries, you know, we've heard about the

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<v Speaker 1>move to kind of onshore some production. Is that also

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<v Speaker 1>an issue for the fashion industry If I look at

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<v Speaker 1>the tagle actually made in the USA or made in

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<v Speaker 1>Italy more going forward, do you think, yeah, it's actually

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<v Speaker 1>what we see today is a move to on show

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<v Speaker 1>and new show production. We see massively brands. Fashion brands

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<v Speaker 1>cannot any more trust the supply chains are being produced

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<v Speaker 1>in China, uh, and they're moving on shore. We see

0:13:27.120 --> 0:13:33.199
<v Speaker 1>production moving into US definitely with the trends of selling

0:13:33.840 --> 0:13:42.120
<v Speaker 1>through the e commerce, through the Yeah, digital commerce, Um,

0:13:42.400 --> 0:13:45.880
<v Speaker 1>you have to change the supply chain, um. And digital

0:13:45.960 --> 0:13:51.400
<v Speaker 1>commerce enabled the brand actually to provide endless amount of products,

0:13:51.440 --> 0:13:54.600
<v Speaker 1>endless amount of design which you don't need to carry,

0:13:54.679 --> 0:13:57.520
<v Speaker 1>they don't need to produce it in advance, and and

0:13:57.600 --> 0:14:01.400
<v Speaker 1>by that enabling the consume to choose what they want

0:14:01.840 --> 0:14:06.319
<v Speaker 1>when they want, and to produce exactly what the consumer

0:14:06.559 --> 0:14:11.560
<v Speaker 1>needs without waste because being produced after the consumer place

0:14:11.600 --> 0:14:16.600
<v Speaker 1>to order. Running, you're not just running cornet, I mean um,

0:14:16.640 --> 0:14:19.920
<v Speaker 1>in terms of your your knowledge base, you also got

0:14:19.920 --> 0:14:22.920
<v Speaker 1>your NBA Northwestern. Paul tells me it's one of the

0:14:22.960 --> 0:14:27.320
<v Speaker 1>best business fouls in the world. And I just wonder

0:14:27.480 --> 0:14:32.480
<v Speaker 1>about the considering the current news the headlines of Russia

0:14:32.560 --> 0:14:36.400
<v Speaker 1>and Ukraine. UM, we know that the economy in that

0:14:36.440 --> 0:14:39.440
<v Speaker 1>part of the world is incredibly poor. Are they active

0:14:39.640 --> 0:14:42.800
<v Speaker 1>in the global supply chain? Does that you know I'm

0:14:42.840 --> 0:14:47.040
<v Speaker 1>not asking if your specific business now has needs there,

0:14:47.080 --> 0:14:50.000
<v Speaker 1>but how much of a wrench does that throw into

0:14:50.480 --> 0:14:58.760
<v Speaker 1>manufacturing globally? So Russia is a big capital professhion um,

0:14:58.800 --> 0:15:01.840
<v Speaker 1>but it's mainly for the local market. Um. So I

0:15:01.920 --> 0:15:07.440
<v Speaker 1>do not foresee impact on the global fashion world due

0:15:07.520 --> 0:15:13.000
<v Speaker 1>to this uh potential world that happening right now for

0:15:13.240 --> 0:15:16.680
<v Speaker 1>but definitely going to be an impact for the local

0:15:16.720 --> 0:15:21.360
<v Speaker 1>market in Russia. And Rade, Yeah, I figured, um, you know,

0:15:21.440 --> 0:15:25.360
<v Speaker 1>there probably wasn't a huge impact on the global supply chain.

0:15:25.400 --> 0:15:27.560
<v Speaker 1>But I thought, if we're going to ask anybody'll be

0:15:28.040 --> 0:15:29.960
<v Speaker 1>let me ask this guy who went to the Kellogg

0:15:30.480 --> 0:15:33.440
<v Speaker 1>School of Business, Absolutely Ronan, what what aircraft did you

0:15:33.440 --> 0:15:39.520
<v Speaker 1>fly in the Israeli Air Force? Um My flew Apache helicopter.

0:15:39.920 --> 0:15:45.200
<v Speaker 1>That could be that just gives them that your man

0:15:45.200 --> 0:15:51.400
<v Speaker 1>card is automatically been gold plated. That is incredible. Um alright,

0:15:51.400 --> 0:15:54.560
<v Speaker 1>So just getting back too quickly, Um, the business and

0:15:54.600 --> 0:15:58.440
<v Speaker 1>the demand I wonder about from corn it Um, what

0:15:58.560 --> 0:16:00.680
<v Speaker 1>kind of demand growth are you seeing as we come

0:16:00.720 --> 0:16:05.880
<v Speaker 1>out of this pandemic? Yeah, so we just finish twenty

0:16:06.640 --> 0:16:10.600
<v Speaker 1>one was the recording for us. Of course, we finished

0:16:10.600 --> 0:16:15.280
<v Speaker 1>the year with more than sixty. Growth over years to

0:16:15.480 --> 0:16:18.760
<v Speaker 1>four was very strong. Usually the peak season is in

0:16:18.920 --> 0:16:23.160
<v Speaker 1>Q four where we saw many new customers entering and

0:16:23.240 --> 0:16:28.560
<v Speaker 1>also our existing customers, some big brands of very fast.

0:16:28.800 --> 0:16:30.680
<v Speaker 1>All right, and thank you so much for joining us.

0:16:30.720 --> 0:16:34.560
<v Speaker 1>Running Samuel CEO of Corner Digital, talking about the apparel space.

0:16:39.960 --> 0:16:42.000
<v Speaker 1>All right, let's switch the page here, talk a little

0:16:42.000 --> 0:16:44.240
<v Speaker 1>bit of satellites. Uh. You know, I've been reading stories

0:16:44.280 --> 0:16:46.320
<v Speaker 1>that there's a lot of satellites in the sky and

0:16:46.360 --> 0:16:48.880
<v Speaker 1>the risk as they start crashing into each other. I'm

0:16:48.920 --> 0:16:50.680
<v Speaker 1>not sure if that's a big issue, but let's talk

0:16:50.720 --> 0:16:55.480
<v Speaker 1>satellites with Emiliano car Damon, CEO and founder of State Logic.

0:16:55.840 --> 0:16:59.440
<v Speaker 1>That is a nastact traded stock s A t L.

0:16:59.520 --> 0:17:03.000
<v Speaker 1>I think it was spack situation earlier in the year. Uh, Ameliana,

0:17:03.040 --> 0:17:04.560
<v Speaker 1>thanks so much for joining us here. Love for it

0:17:04.600 --> 0:17:07.879
<v Speaker 1>to take. Just give us a quick overview of satill Logic.

0:17:07.960 --> 0:17:11.800
<v Speaker 1>What were you guys up to? Thanks for having great

0:17:11.840 --> 0:17:14.440
<v Speaker 1>to be here. So we are. We're a satellite company.

0:17:14.480 --> 0:17:17.680
<v Speaker 1>As you say, we build high resolutions imaging satellite or

0:17:17.720 --> 0:17:22.119
<v Speaker 1>satellites basically take very detailed pictures often happening on Earth.

0:17:22.440 --> 0:17:25.199
<v Speaker 1>We have a seven team around the planet. Today. We

0:17:25.240 --> 0:17:27.439
<v Speaker 1>have the ability to image any point on the planet

0:17:27.480 --> 0:17:30.840
<v Speaker 1>four times per day today and we're launching over two

0:17:30.920 --> 0:17:34.399
<v Speaker 1>hundred satellite in the next few years to remap. It

0:17:34.480 --> 0:17:36.760
<v Speaker 1>will give us the ability to remap the entire surface

0:17:36.800 --> 0:17:39.359
<v Speaker 1>of the planet, every spur of the surface of Earth,

0:17:39.480 --> 0:17:42.320
<v Speaker 1>every single day, so that we can deliver this data

0:17:42.520 --> 0:17:45.719
<v Speaker 1>to prove decision making for governments and for every corporation

0:17:46.119 --> 0:17:49.840
<v Speaker 1>or financial institutions and so on. What what's the story

0:17:49.880 --> 0:17:52.520
<v Speaker 1>with the price? Because I see the stock up at

0:17:52.520 --> 0:17:55.000
<v Speaker 1>twelve thirty three in the middle of January. Now you're

0:17:55.000 --> 0:17:59.000
<v Speaker 1>down at five seventy nine. What happened there? Well, the

0:18:00.160 --> 0:18:02.640
<v Speaker 1>market in general, I think have a lot of other

0:18:03.119 --> 0:18:07.479
<v Speaker 1>visually where you know, we we came out, we started

0:18:07.520 --> 0:18:13.560
<v Speaker 1>listening and bespact earlier this year after announcing the transaction

0:18:13.600 --> 0:18:18.280
<v Speaker 1>with Liberty Strategic Capital to fully fund or business and uh,

0:18:18.320 --> 0:18:20.280
<v Speaker 1>you know, more than looking at the day to day

0:18:20.280 --> 0:18:23.680
<v Speaker 1>at the stock, they were looking down and going to execute.

0:18:23.840 --> 0:18:26.080
<v Speaker 1>But we think, you know, the current prize the stock

0:18:26.160 --> 0:18:29.440
<v Speaker 1>is significantly under that needs to We recently announced the

0:18:29.760 --> 0:18:35.080
<v Speaker 1>UH stop UH repurchase program because we just think the

0:18:35.080 --> 0:18:38.720
<v Speaker 1>you know, in time, Boue that's what we fund about representatility.

0:18:38.840 --> 0:18:43.120
<v Speaker 1>But by the way, in terms of um what clients

0:18:43.200 --> 0:18:47.000
<v Speaker 1>do with your data? Um who who? Who wants these

0:18:47.040 --> 0:18:50.760
<v Speaker 1>pictures and what are they using them for? Today? The

0:18:50.920 --> 0:18:53.520
<v Speaker 1>largest customers are governments around the world, so the US

0:18:53.600 --> 0:18:55.920
<v Speaker 1>government and U S allies around the world that wants

0:18:55.960 --> 0:18:58.520
<v Speaker 1>to see what's happening so defense and intelligence purposes. He

0:18:58.600 --> 0:19:03.080
<v Speaker 1>received today on the East situation in Ukraine. Um or

0:19:03.240 --> 0:19:06.160
<v Speaker 1>customers will use the data to see what's happening there

0:19:06.240 --> 0:19:08.760
<v Speaker 1>every single day, several times per day. How close can

0:19:08.800 --> 0:19:12.399
<v Speaker 1>you get? Is this like uh like adjacent Bourne situation

0:19:12.440 --> 0:19:15.760
<v Speaker 1>where like the n s A can can watch me

0:19:15.840 --> 0:19:21.679
<v Speaker 1>passing someone. Uh, you know the MicroTape in Washington Square Park. No,

0:19:21.840 --> 0:19:23.840
<v Speaker 1>let's still on the movies, right. We get to around

0:19:23.840 --> 0:19:27.560
<v Speaker 1>seventy cents of residues, which means, you know, each pixel

0:19:27.760 --> 0:19:30.800
<v Speaker 1>in our image is around seventies tent years or you know,

0:19:31.359 --> 0:19:34.879
<v Speaker 1>uh to see on the side. That basically means we

0:19:34.920 --> 0:19:38.480
<v Speaker 1>can see small vehicles, we can see large vehicles, we

0:19:38.480 --> 0:19:41.960
<v Speaker 1>can see movements, we can see the individual trees in

0:19:42.000 --> 0:19:45.280
<v Speaker 1>a plentation for example, we can see dividual buildings or

0:19:45.720 --> 0:19:47.240
<v Speaker 1>that sort of things. Like it doesn't get to the

0:19:47.280 --> 0:19:50.080
<v Speaker 1>point where you can see, you know, read the license

0:19:50.119 --> 0:19:53.960
<v Speaker 1>plate on a car. So Emiliana, I guess you know.

0:19:54.000 --> 0:19:57.800
<v Speaker 1>Over the last couple of weeks, as we watched the newscast,

0:19:57.840 --> 0:20:01.800
<v Speaker 1>we're seeing a lot of satellite imagery of military installations

0:20:01.800 --> 0:20:03.600
<v Speaker 1>in Ukraine on the board and all that type of stuff.

0:20:03.680 --> 0:20:05.480
<v Speaker 1>Is that something? Is that a part of the market,

0:20:05.480 --> 0:20:09.880
<v Speaker 1>the military application that your company looks at. That has

0:20:09.920 --> 0:20:12.919
<v Speaker 1>been the market for observation up until now, and we

0:20:12.960 --> 0:20:16.240
<v Speaker 1>are changing that way because our satellites have a hundred

0:20:16.280 --> 0:20:19.119
<v Speaker 1>times better unit economics. We can build a satellite or

0:20:19.240 --> 0:20:20.960
<v Speaker 1>less than a million dollars, we can put them in

0:20:21.000 --> 0:20:23.600
<v Speaker 1>more of it and they get to collect data continuously

0:20:23.600 --> 0:20:26.600
<v Speaker 1>in the very entire resolution. Because of this hundred times

0:20:26.600 --> 0:20:29.440
<v Speaker 1>that are un economics that when any other satellite company have.

0:20:29.920 --> 0:20:32.239
<v Speaker 1>We are now in a position to change this and

0:20:32.280 --> 0:20:34.640
<v Speaker 1>make it so that everybody can afford it. So every

0:20:34.680 --> 0:20:39.280
<v Speaker 1>financial institution and insurance company, every agricultural company, we can

0:20:39.320 --> 0:20:42.119
<v Speaker 1>all start affording now to get the state and that

0:20:42.320 --> 0:20:45.560
<v Speaker 1>up until now only government. Right, So, if you're a

0:20:45.600 --> 0:20:47.920
<v Speaker 1>small farmer and you want to see, you know, what's

0:20:47.960 --> 0:20:51.160
<v Speaker 1>happening in your fields or what's happened with your supplied

0:20:51.600 --> 0:20:53.640
<v Speaker 1>Now you can afford that you know the same way

0:20:53.640 --> 0:20:55.080
<v Speaker 1>that he has gone on things, go and look at

0:20:55.080 --> 0:20:57.600
<v Speaker 1>what's happening on the other side of all right, that's

0:20:57.640 --> 0:21:00.959
<v Speaker 1>really interesting stuff at Miliano Cardamon, the EO and founder

0:21:01.000 --> 0:21:04.359
<v Speaker 1>of a Sata Logic fascinating story company, just came public

0:21:04.520 --> 0:21:10.240
<v Speaker 1>VS back. Thanks for listening to the Bloomberg Markets podcast.

0:21:10.640 --> 0:21:13.840
<v Speaker 1>You can subscribe and listen to interviews with Apple Podcasts

0:21:13.960 --> 0:21:17.880
<v Speaker 1>or whatever podcast platform you prefer. I'm Matt Miller. I'm

0:21:17.920 --> 0:21:22.120
<v Speaker 1>on Twitter at Matt Miller three. On Fall Sweeney, I'm

0:21:22.119 --> 0:21:24.760
<v Speaker 1>on Twitter at pt Sweeney before the podcast. You can

0:21:24.800 --> 0:21:27.280
<v Speaker 1>always catch us worldwide at Bloomberg Radio.