WEBVTT - Peloton Replaces CEO, Cuts Jobs 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carole Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all purtnising the power of Business 0:00:13.680 --> 0:00:17.159 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.479 Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot Com. You 0:00:23.480 --> 0:00:25.439 can also listen to our radio show at two pm 0:00:25.440 --> 0:00:27.880 Eastern Time on the Bloomberg Radio or watch us on 0:00:27.920 --> 0:00:32.000 YouTube search Bloomberg Clovel News check out shows a Peloton 0:00:32.760 --> 0:00:36.480 Charlie was talking about what's going on up up I 0:00:36.520 --> 0:00:40.640 think roughly well more than fifty at its highs over 0:00:40.680 --> 0:00:43.400 the last couple of days, and we know that there's 0:00:43.560 --> 0:00:46.520 a lot going on, a new CEO, and we're still 0:00:46.560 --> 0:00:48.880 waiting on maybe a possible sale. Well, let's talk about 0:00:48.880 --> 0:00:51.320 it with Ed Ludlow, West Coast correspondent at Bloomberg News. 0:00:51.360 --> 0:00:54.760 He joins us from our San Francisco bureau, and our 0:00:54.800 --> 0:00:57.320 our investors bullish because they think that the company is 0:00:57.360 --> 0:00:59.720 going to be bought or they bullish because this new 0:01:00.000 --> 0:01:02.120 you know, it's all about a turnaround story and Peloton 0:01:02.200 --> 0:01:04.480 is going to go out it alone. Yeah, it's a 0:01:04.480 --> 0:01:06.040 great question because you have to read each of the 0:01:06.120 --> 0:01:08.840 kind of Wall Street cell side notes in isolation for 0:01:08.920 --> 0:01:12.200 each of the actions that Peloton took. I guess the 0:01:12.200 --> 0:01:15.920 the overall takeaway is that the global Wall Streets kind 0:01:15.920 --> 0:01:20.680 of hopeful that this Lena mina more focused Peloton will 0:01:20.720 --> 0:01:23.640 be ripe to be acquired. Right. It's more attractive to 0:01:23.640 --> 0:01:26.400 be acquired because it's not so reliant on the hardware, 0:01:26.760 --> 0:01:30.000 bike in and treadmill business. And I heard you guys 0:01:30.040 --> 0:01:32.200 talking about in the last block. The talent is so 0:01:32.360 --> 0:01:35.520 key and if they're more focused on a subscription based 0:01:35.520 --> 0:01:39.120 company model, which this new CEO has a lot of 0:01:39.160 --> 0:01:42.160 experience in, then it does make it more attractive takeover target. 0:01:42.520 --> 0:01:46.560 You can't help but feel add that Peloton definitely was 0:01:46.640 --> 0:01:48.920 onto something. I feel like earlier on it wasn't just 0:01:49.000 --> 0:01:52.760 about giving somebody a bike to cycle on. It's so 0:01:52.840 --> 0:01:55.400 much about this community. And I know we all use 0:01:55.480 --> 0:01:57.640 the word community throw it around a lot, but it 0:01:57.680 --> 0:02:01.760 really did create one. And I think there's something really 0:02:01.800 --> 0:02:05.680 tangible in what they do, so I I agree with you. 0:02:06.040 --> 0:02:08.400 As you know, Carol, I'm a big Peloton user. You 0:02:08.400 --> 0:02:10.680 know people who asked me over the last twenty four hours. 0:02:10.720 --> 0:02:13.200 You know my favorite instructives and a big Alex two 0:02:13.240 --> 0:02:16.320 song guy. I'm a big Olivia guy. Do I use 0:02:16.360 --> 0:02:19.320 the Peloton as much in February of two as I 0:02:19.360 --> 0:02:22.280 did in the summer of I know they answered to that, No, 0:02:22.919 --> 0:02:25.280 that doesn't matter. Does that matter? I mean you're still 0:02:25.320 --> 0:02:27.000 paying the same amount of money, you still pay the 0:02:27.040 --> 0:02:30.919 monthly Here's the thing that is true. But we're looking 0:02:30.919 --> 0:02:33.440 at to the future here. So regardless of a takeover 0:02:33.440 --> 0:02:36.560 target or not, this new CEO wants to move to 0:02:36.600 --> 0:02:38.760 shrink the business right because they grew to a scale 0:02:38.760 --> 0:02:41.760 where they could service demand on the hardware side that 0:02:41.919 --> 0:02:44.360 just wasn't there. Do you guys remember the conversation we 0:02:44.400 --> 0:02:47.520 had in November around their fiscal first quarter earnings. I 0:02:47.560 --> 0:02:49.919 remember it. It was with you two specifically, and there 0:02:49.960 --> 0:02:52.200 was a chart in there. And the chart in the 0:02:52.240 --> 0:02:57.120 earnings deck was average monthly workouts per connected fitness sub 0:02:57.840 --> 0:03:00.679 and that that chart is what spookeed investors even back 0:03:00.680 --> 0:03:03.760 in November on that fiscal first quarter. It basically showed 0:03:03.800 --> 0:03:08.600 that the US existing consumers, existing subscribers, just weren't using 0:03:08.600 --> 0:03:11.320 our products as much as we were in the depths 0:03:11.320 --> 0:03:14.080 of the pandemic. And we have a choice as consumers 0:03:14.120 --> 0:03:16.640 to cancel and go back to the gym. And you know, 0:03:16.840 --> 0:03:19.520 it does seem like that's a concern. What is it 0:03:19.560 --> 0:03:22.799 that Peloton retains that's enough that if consumers faced with 0:03:22.800 --> 0:03:24.560 a choice, do I join my gym that I used 0:03:24.600 --> 0:03:28.919 to go to or do I stick with Peloton? And 0:03:29.240 --> 0:03:32.280 and it's the leadership that's in focus on this point. 0:03:32.320 --> 0:03:35.520 They didn't feel John Foy could do that. And what 0:03:35.600 --> 0:03:38.280 would the synergies be if they got taken over by 0:03:38.320 --> 0:03:40.240 an Amazon or a Nike? What are the merits of 0:03:40.240 --> 0:03:42.720 one versus the other? And I guess the question is 0:03:42.720 --> 0:03:45.320 too I think about my world. You know, here I've 0:03:45.360 --> 0:03:47.320 been doing I have the ability to do yoga at 0:03:47.400 --> 0:03:50.240 home virtually right, I've been you know, with an instructor 0:03:50.240 --> 0:03:51.720 that I've known for years, but I don't have to 0:03:51.720 --> 0:03:53.840 go to the studio. And it actually feels kind of okay, 0:03:54.000 --> 0:03:55.840 I kind of like it. But you do wonder write 0:03:55.840 --> 0:03:57.200 on the other side of this that part of the 0:03:57.240 --> 0:03:59.680 thing we love is going to a gym, working out 0:03:59.720 --> 0:04:01.600 with people, right, being part of a class. I do 0:04:01.880 --> 0:04:05.320 to some extent miss that as well. Yeah, and you know, 0:04:05.400 --> 0:04:07.360 without it doesn't really matter what what you and I 0:04:07.400 --> 0:04:09.160 think I think the streets kind of looking at that 0:04:09.360 --> 0:04:11.680 some of the really painful actions that Peloton took. I 0:04:11.720 --> 0:04:14.080 think BMO said these were kind of painful but prudent. 0:04:14.520 --> 0:04:17.440 But you know, two is very much like a new year. 0:04:17.560 --> 0:04:20.400 You me, I've certainly picked back up, you know, the 0:04:20.440 --> 0:04:22.760 classes that I'm doing at home. I think we we 0:04:22.800 --> 0:04:25.479 kind of agree, right, guys, the contents there, I think 0:04:25.480 --> 0:04:28.279 that they, you know, what they're looking for is some execution, 0:04:28.360 --> 0:04:31.520 that classic word execution. And the street, based on the 0:04:31.520 --> 0:04:33.680 notes I read this morning, seems really kind of confident 0:04:33.960 --> 0:04:36.279 that whether we get a takeover or not, they're the 0:04:36.360 --> 0:04:38.800 right people now in place to kind of make painful decisions, 0:04:38.800 --> 0:04:41.560 including job cuts, although as we know, those job cuts 0:04:41.600 --> 0:04:45.200 not extending to our favorite instructors. Yeah. Hey, by the way, 0:04:45.320 --> 0:04:47.120 it's good that you're it's February and you're still sticking 0:04:47.200 --> 0:04:49.440 with it, because the Strata CEO told our own Bloomberg 0:04:49.440 --> 0:04:51.480 Business Week that if you're sticking with your New Year's 0:04:51.480 --> 0:04:54.720 resolutions by January. You are going to make it. Okay, 0:04:54.760 --> 0:04:56.520 it's a very good song. Check in with me and 0:04:56.560 --> 0:05:01.720 August Well. Barry McCarthy is the company's new EO. Before Pelotonni, 0:05:01.839 --> 0:05:03.960 we know him from Spotify where he was CFO. We 0:05:04.120 --> 0:05:07.840 also know him from Netflix where so as well before that, 0:05:07.880 --> 0:05:10.039 with some other things in between. What do we know 0:05:10.040 --> 0:05:11.440 about the way that he's going to run this company. 0:05:11.440 --> 0:05:13.640 I mean, I think they're very very very interesting. It's 0:05:13.640 --> 0:05:16.360 a very interesting background. Yeah, there seems to be two 0:05:16.360 --> 0:05:19.440 main parts, and again I'm summarizing Wall Streets response. But 0:05:19.600 --> 0:05:22.920 the first is that he's a known quantity, So Folly 0:05:22.920 --> 0:05:25.360 stepping down is one thing. Folly founded this company a 0:05:25.360 --> 0:05:29.080 decade ago, right, He's a founder CEO, not just the CEO. 0:05:29.200 --> 0:05:32.040 So the person that's coming in seems like a capable 0:05:32.040 --> 0:05:34.280 and safe pair of hands. That's one Wall Street read. 0:05:34.560 --> 0:05:37.479 The other is that at his time at Spotify, Netflix, 0:05:37.560 --> 0:05:42.159 he was able to make a subscription rate, subscription revenue 0:05:42.160 --> 0:05:45.720 based business model work. And if they peloton is going 0:05:45.760 --> 0:05:49.640 to sell fewer bikes and fewer treadmills, irrespective of whether 0:05:49.680 --> 0:05:51.680 it's acquired. You know, the Street seems to think that 0:05:51.720 --> 0:05:54.239 he will be able to lead them down a path 0:05:54.320 --> 0:05:57.160 where they're not just Lena. But of course the subscription 0:05:57.520 --> 0:06:00.400 revenue is a higher margin revenue than selling hard where 0:06:00.600 --> 0:06:02.680 you know, some of the other actions they're taking include 0:06:03.000 --> 0:06:07.280 moving to third party distribution, relying on outsourcing more. They've 0:06:07.320 --> 0:06:11.120 they've scrapped their plans for an Ohio factory, Ohio factory, 0:06:11.680 --> 0:06:15.400 Lean Mean and services in subscription. Those all boost bottom 0:06:15.440 --> 0:06:17.440 line potentially in Wall Street seems to really like that. 0:06:17.680 --> 0:06:19.040 All I can say is a lot of this is 0:06:19.080 --> 0:06:22.360 happening quickly, where we're talking about a year ago right there, 0:06:22.360 --> 0:06:24.840 couldn't even meet to Manda year ago. Yeah, Yeah, It's 0:06:24.880 --> 0:06:27.000 just pretty remarkable how this story is playing out and 0:06:27.040 --> 0:06:29.640 so quickly. Hey, Ed Ludlow, thank you so much. He 0:06:29.720 --> 0:06:33.000 is West Coast correspondent Bloomberg News on camera. For those 0:06:33.040 --> 0:06:36.040 of you been watching on YouTube in our San Francisco bureau, 0:06:36.279 --> 0:06:39.839 you're listening to Bloomberg Business Week with Carol Masser and 0:06:39.920 --> 0:06:44.200 Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio, what the 0:06:44.200 --> 0:06:47.120 heck is going on at the US Canadian border, including 0:06:47.160 --> 0:06:50.360 at that land crossing that is so important, a very 0:06:50.400 --> 0:06:53.040 important link for goods moving between the U, the US 0:06:53.080 --> 0:06:55.680 and a Canta really and it's a crucial artery when 0:06:55.680 --> 0:06:58.360 it comes to the auto industry as well. To Brian Platt, 0:06:58.400 --> 0:07:00.880 is Canadian government reporter for bloom News, truns us on 0:07:00.920 --> 0:07:03.760 the phone from Ottawa. Brian, take us into what's going 0:07:03.800 --> 0:07:06.240 on here. Get everyone up to speed about what's going 0:07:06.279 --> 0:07:10.800 on right outside of Detroit. I mean, it's a it's 0:07:10.800 --> 0:07:14.560 been an utterly bizarre situation for a while now in Ottawa, 0:07:14.600 --> 0:07:17.160 where in my office right now, I'm in the middle 0:07:17.200 --> 0:07:20.320 of what's essentially become an occupied zone in this in 0:07:20.440 --> 0:07:24.440 Canada's capital city of this trucker convoy that arrived here 0:07:24.480 --> 0:07:26.840 about a week and a half ago and became just 0:07:26.920 --> 0:07:31.320 this sort of massive protest um that drew in all 0:07:31.400 --> 0:07:33.400 kinds of other people. I mean, this may have started 0:07:33.400 --> 0:07:35.040 as a trucker protest, that I can tell you, it's 0:07:35.040 --> 0:07:38.400 a lot more than just truckers here. And so you know, 0:07:38.600 --> 0:07:43.400 this trucker protest has created a crisis in Ottawa, in 0:07:43.400 --> 0:07:45.560 the actual city of Ottawa that the City of Ottawa 0:07:45.640 --> 0:07:47.960 still trying to deal with because most of downtown is 0:07:48.040 --> 0:07:51.440 completely shut down. But as as it stayed here for 0:07:51.440 --> 0:07:53.360 about a week and a half. It sparked all these 0:07:53.400 --> 0:07:57.560 offshoots in other places. Um there's been a border crossing 0:07:57.640 --> 0:08:00.600 in Alberta between Alberta and Montana that that has been 0:08:00.600 --> 0:08:04.240 occasionally shut down over the past week. But last night 0:08:04.480 --> 0:08:08.240 the Ambassador Bridge between Windsor and Detroit was shut down 0:08:09.160 --> 0:08:11.720 by a sort of parallel protest. Much much smaller than 0:08:11.760 --> 0:08:14.040 what's in Ottawa, but it's only one bridge, so it 0:08:14.040 --> 0:08:16.240 doesn't take very many people to shut it down, and 0:08:16.320 --> 0:08:19.600 it is a massively important bridge. It carries about a 0:08:19.680 --> 0:08:22.920 quarter of all trade between by land between Canada and 0:08:22.920 --> 0:08:26.840 the US. It's you can't overstate how important this this 0:08:26.960 --> 0:08:32.040 bridge is uh to um land trade between the two countries. 0:08:32.080 --> 0:08:34.880 So it's a very very big deal. And I guess 0:08:34.880 --> 0:08:38.520 we will see how quickly they can get traffic flowing again. 0:08:39.720 --> 0:08:42.240 Why is this happening? I mean, we know we're all 0:08:42.280 --> 0:08:46.560 tired of the pandemic and maybe what's being asked of us, 0:08:46.640 --> 0:08:50.040 But is this much more a political thing? What's going on? 0:08:51.559 --> 0:08:56.320 It's so trying to explain what's going on is really 0:08:56.360 --> 0:09:01.040 hard because um it's it gets called trucker protest or 0:09:01.080 --> 0:09:04.679 the trucker convoy, and it did the the spark of 0:09:04.720 --> 0:09:08.040 this was the U, first Canada and then the US 0:09:08.200 --> 0:09:11.440 in mid January, bringing in a requirement that truckers had 0:09:11.480 --> 0:09:15.280 to be vaccinated to cross the border. Until then, truckers 0:09:15.320 --> 0:09:19.920 had an exemption from the border vaccination rules, so that 0:09:20.000 --> 0:09:26.320 exemption ended in mid January, large large like made more. 0:09:26.480 --> 0:09:29.440 Now of truckers in Canada are vaccinated. So it actually 0:09:29.520 --> 0:09:32.559 wasn't I mean, it was seen as potentially disruptive, but 0:09:32.720 --> 0:09:35.720 for the most part Canadian truckers are highly vaccinated and 0:09:35.760 --> 0:09:39.760 still on the job. Um the problem, but it kicked 0:09:39.800 --> 0:09:43.360 off this convoy, this protest, that this, and so they 0:09:43.440 --> 0:09:45.920 drove out from Western Canada and picked up more people 0:09:45.960 --> 0:09:48.040 along the way, and then people also drove in from 0:09:48.040 --> 0:09:50.960 other parts of the country. They all converged on Ottawa 0:09:51.360 --> 0:09:55.760 about ten days ago, and there are semis parked all 0:09:55.800 --> 0:09:59.520 over downtown Ottawa, like the streets are totally blockaded, and 0:10:00.000 --> 0:10:03.160 on the weekends all these other protests, protesters fled into 0:10:03.240 --> 0:10:05.640 the city. And it is much more now about a 0:10:05.720 --> 0:10:10.800 backlash against all COVID nineteen restrictions, mask mandates, vaccine mandates, everything. 0:10:11.160 --> 0:10:14.240 It's not just nobody even really talks about the border 0:10:14.280 --> 0:10:17.959 issue anymore. It's now just like a total backlash movement 0:10:18.040 --> 0:10:22.200 against COVID nineteam restriction. So go ahead, we only have 0:10:22.200 --> 0:10:24.440 a minute left with you, Brian. How does it get resolved? 0:10:25.480 --> 0:10:29.000 Its police are baffled here. I mean they cannot get 0:10:29.040 --> 0:10:32.280 these trucks out there. You have to picture what it 0:10:32.280 --> 0:10:36.119 would be like having like five hundred semi trucks vockading 0:10:36.160 --> 0:10:38.640 the streets in the in a fairly major city. I mean, 0:10:38.880 --> 0:10:42.040 Ottawa's about one point five million people, so so you know, 0:10:42.120 --> 0:10:43.800 smaller than a lot of other cities might think of, 0:10:43.840 --> 0:10:45.640 but it's one of Canada's biggest city, and it's also 0:10:45.679 --> 0:10:47.760 the capital city. Of course, the parliament buildings are all 0:10:47.800 --> 0:10:50.600 around here, and so police don't know what to do. 0:10:50.840 --> 0:10:53.040 So is it okay, thirty seconds left really quick? Is 0:10:53.080 --> 0:10:55.200 it force that ends this or is there some kind 0:10:55.200 --> 0:10:59.600 of agreement conversation that ends this. I think it's very 0:10:59.679 --> 0:11:03.719 unlikely this gets solved through a negotiation. Um, you never know, 0:11:04.120 --> 0:11:06.760 maybe something will surprise me. I think if the police 0:11:06.800 --> 0:11:10.040 have already asked for federal reinforcements to basically double the 0:11:10.040 --> 0:11:12.719 size of their police force, I think ultimately this is 0:11:12.760 --> 0:11:16.040 going to get solved through arrests. And towing of the trucks. 0:11:16.120 --> 0:11:22.640 But it's very very difficult, unbelievable, just interesting. Brian, great 0:11:22.679 --> 0:11:26.280 reporting and really great clear understanding of what's going on there, 0:11:26.720 --> 0:11:30.839 which is not a very clear situation, to put it mildly. 0:11:30.880 --> 0:11:33.760 Brian Platty's Canadian government reporter at Bloomberg News on the 0:11:33.800 --> 0:11:38.320 phone from Ottawa. This is Bloomberg Business Week with Carol 0:11:38.360 --> 0:11:42.800 Masser and Bloomberg Quick Takes, Tim Stinovic on Bloomberg Radio 0:11:43.080 --> 0:11:45.559 and The Curnis Show of Bloomberg Business Week. We've got 0:11:45.559 --> 0:11:48.640 a story about the Chinese American born Olympic star. Uh 0:11:48.800 --> 0:11:50.840 really keeping I guess you could almost say to him 0:11:50.880 --> 0:11:55.080 a game day face and strategy being very careful, especially 0:11:55.160 --> 0:11:57.800 as her brand explodes. Yeah, we're talking about the teenage 0:11:57.840 --> 0:12:01.360 freestyle skier Eileen gu You might recognized the name now 0:12:01.400 --> 0:12:03.800 if you didn't before yesterday, because she's fresh off a 0:12:03.840 --> 0:12:06.199 gold medal win. Although she was born in San Francisco. 0:12:06.320 --> 0:12:10.440 She's representing China at the Olympic Games. It's a fantastic feature. 0:12:10.480 --> 0:12:12.960 Joe Webber is Edirett Bloomberg Business Week. He joins us 0:12:12.960 --> 0:12:16.480 on the access line from Brooklyn. Joel, I gotta tell 0:12:16.480 --> 0:12:18.840 you the crystal ball. It was working really well again 0:12:19.080 --> 0:12:21.800 last night because you guys have this issue, this story 0:12:21.840 --> 0:12:24.360 in the January twenty seven issue of Bloomberg Business Week magazine. 0:12:24.360 --> 0:12:26.360 But there are a lot of people now who are 0:12:26.480 --> 0:12:30.920 learning who Eileen you is for the first time. Well, 0:12:31.040 --> 0:12:35.280 you're you're gonna hear more about Eileen gou Um. Not 0:12:35.320 --> 0:12:37.920 only did she have one gold medal, she could win 0:12:38.160 --> 0:12:42.160 multiple gold medals, or at least multiple medals um. She's 0:12:42.200 --> 0:12:46.040 also the face of a lot of brands. Um. And 0:12:46.720 --> 0:12:48.840 especially after this win, you're going to have to think 0:12:48.880 --> 0:12:51.120 that the that even more brands are are going to 0:12:51.240 --> 0:12:54.200 line up to have her be the be part of 0:12:54.240 --> 0:12:58.040 their promotions. Okay, So what I find particularly compelling about 0:12:58.040 --> 0:13:01.800 her story story since I've learned about her twenty four 0:13:01.800 --> 0:13:04.120 hours ago, I mean and and it's it's I encourage 0:13:04.200 --> 0:13:06.000 everybody to go check out this story. I don't know how, 0:13:06.160 --> 0:13:07.439 I'll be honest with you, I missed it in that 0:13:07.520 --> 0:13:11.480 issue of Bloomberg Business Week. And uh, she was born 0:13:11.679 --> 0:13:17.880 in California, but she somehow got permission to represent China 0:13:18.080 --> 0:13:21.680 and she's become the face of winter sports in China. 0:13:21.840 --> 0:13:25.480 How did she do that? So the story is is 0:13:25.600 --> 0:13:28.760 really an amazing one because UM, you know, the as 0:13:28.800 --> 0:13:33.000 you described their American born but Chinese athlete. UH, this 0:13:33.160 --> 0:13:36.480 was a decision of hers rooted UM a couple of 0:13:36.559 --> 0:13:39.760 years ago, UM, and the moment she did that, I 0:13:39.800 --> 0:13:42.760 think it was actually very tactical on her part of 0:13:43.200 --> 0:13:46.040 looking at where the Olympics we're going to be held, 0:13:46.320 --> 0:13:51.000 realizing that UM to be the face of a country UM, 0:13:51.120 --> 0:13:54.640 and and President g in China has really made her 0:13:54.760 --> 0:13:57.040 the face of it UM that it was going to 0:13:57.160 --> 0:14:00.240 have huge commercial amplications. I mean in the US, I'm 0:14:00.280 --> 0:14:03.240 sure she would have been fine, but there she really 0:14:03.360 --> 0:14:07.680 is the star of of of the national this national 0:14:07.720 --> 0:14:11.360 symbol UM of hosting the Olympics UM. As we've talked 0:14:11.360 --> 0:14:14.800 about before on the show. Beijing obviously hosted the two 0:14:14.800 --> 0:14:18.959 thousand eight ones that had a completely different tone. So 0:14:18.960 --> 0:14:21.240 so really I think this allowed her to not only 0:14:21.280 --> 0:14:24.520 be the face of these Olympics, but also step into 0:14:25.080 --> 0:14:29.160 UM a really lucrative commercial role to right, and she's 0:14:29.520 --> 0:14:34.320 being very careful not to say some anything right about anything. 0:14:34.320 --> 0:14:38.080 That is the most amazing part about this story is 0:14:38.880 --> 0:14:41.920 the backdrop of UM and the art did a really 0:14:41.920 --> 0:14:44.440 good job with our story of showing this. You know, 0:14:44.720 --> 0:14:48.160 she's basically doing a sixteen twenty. I can't even count 0:14:48.200 --> 0:14:52.320 how many rotations that is UM as she jumps over 0:14:52.720 --> 0:14:58.040 all of the tension between um, the US and China. 0:14:58.240 --> 0:15:01.000 And you know, in the Trump world, was the trade war, 0:15:01.080 --> 0:15:04.920 and now it's weaker weak, the weakers, it's the Hong Kong, 0:15:05.160 --> 0:15:08.320 it's Taiwan. It's just endless, right, um. And you're not 0:15:08.360 --> 0:15:10.560 gonna hear talk about in any of that. If anything, 0:15:10.640 --> 0:15:14.520 somebody did ask her about paying the tennis star and 0:15:14.600 --> 0:15:18.640 sort of the weird spectacle that that was UM and 0:15:18.640 --> 0:15:21.080 and that was as close as she'd gotten. And still 0:15:21.200 --> 0:15:22.760 she managed to kind of like step in it when 0:15:22.800 --> 0:15:26.520 she did. But it there is just no incentive to 0:15:26.600 --> 0:15:31.760 talk about anything that borders on geopolitical UM. And you know, 0:15:32.000 --> 0:15:34.040 to her credit, I mean, she is an eighteen year 0:15:34.080 --> 0:15:36.640 old kid. She hasn't even started college yet. She will 0:15:36.680 --> 0:15:40.800 go to Stanford beginning in the fall. UM. So clearly 0:15:40.800 --> 0:15:42.880 like there's a lot of ways that this could go wrong, 0:15:42.880 --> 0:15:47.480 and she is staying firmly on a messaging track that 0:15:47.480 --> 0:15:51.440 that involves nothing that could be misconstrued. Well past these 0:15:51.440 --> 0:15:53.440 next couple of weeks. I wonder what the future looks 0:15:53.480 --> 0:15:55.680 like for her. You have images of her in the 0:15:55.720 --> 0:15:57.800 story appearing at the met Gala, but also at the 0:15:57.840 --> 0:16:02.840 same time um appearing as a model for a Chinese 0:16:02.920 --> 0:16:06.080 dairy brand as well. Uh. She said in the pastoral 0:16:06.160 --> 0:16:08.880 that when she's in China, she's Chinese, when she's in 0:16:08.920 --> 0:16:11.680 the US, she's American. And it was remarkable to watching 0:16:11.680 --> 0:16:14.040 the Olympics last night when she landed I think it 0:16:14.080 --> 0:16:17.320 was the second of her three runs of her gold 0:16:17.320 --> 0:16:21.160 medal three runs. She she put both to the camera 0:16:21.200 --> 0:16:23.440 in English talking about how she wasn't crying, and she 0:16:23.520 --> 0:16:28.160 sounded like an American teenager because she is, you know, 0:16:28.200 --> 0:16:32.400 she really straddles both sides of of the Pacific. And 0:16:32.640 --> 0:16:34.600 you know you mentioned Um, you know, like a Chinese 0:16:34.680 --> 0:16:37.240 dairy brand there. But like, we have not seen this 0:16:37.320 --> 0:16:41.320 campaign rollout, but she has thought so highly of by 0:16:41.440 --> 0:16:44.080 brands and an advertisers. She's going to be one of 0:16:44.120 --> 0:16:47.960 the faces of Victoria's Secret. Victoria's Secret obviously mired in 0:16:48.000 --> 0:16:51.920 this just like you know, a vestige of of everything 0:16:51.960 --> 0:16:54.119 that was wrong a couple of years ago, has completely 0:16:54.120 --> 0:16:57.320 tried to rebrand itself and Eileen Goo is one of 0:16:57.320 --> 0:17:03.240 the handful of uh young UM models UM that will 0:17:03.280 --> 0:17:05.800 be basically the face of the brand going forward. So 0:17:06.080 --> 0:17:08.520 to give you a sense of like how big Eileen 0:17:08.560 --> 0:17:11.560 who's gonna gonna become and the gold medal is just 0:17:11.560 --> 0:17:15.080 gonna burnish that. So you're gonna see her a lot. 0:17:15.160 --> 0:17:17.720 You know, she's already backed by by the Red bulls. 0:17:17.720 --> 0:17:20.480 And I just think the the sponsors like what they 0:17:20.480 --> 0:17:23.919 see because they get an athlete who can speak to 0:17:24.640 --> 0:17:28.520 a Chinese audience that everyone in China can now you know, 0:17:28.600 --> 0:17:32.119 look up to UM, and in America they basically just 0:17:32.160 --> 0:17:36.960 get a multinational. So it's a very very interesting story. 0:17:37.080 --> 0:17:40.760 There's not that you know this as um Ellen Hewitt 0:17:40.800 --> 0:17:44.560 story document. There are a couple other athletes that have 0:17:44.920 --> 0:17:49.040 done a similar um uh judo kind of positioning where 0:17:49.080 --> 0:17:52.880 they're they're born in America and also represented China. One 0:17:52.880 --> 0:17:54.840 of those other athletes is in the Games and has 0:17:55.080 --> 0:17:58.600 not nearly faired as well. So I think who's really 0:17:58.680 --> 0:18:01.840 rising above the noise? Still, yeah, modeling for the other 0:18:01.920 --> 0:18:04.240 time noise, you know, I think all of these are 0:18:04.400 --> 0:18:07.400 you know, this is like such a difficult Olympics UM 0:18:07.400 --> 0:18:09.800 and none of it is real noise, but she's managing 0:18:09.800 --> 0:18:11.879 to to walk a tight rope that, you know, I 0:18:11.880 --> 0:18:14.560 think few other athletes could probably do. Attended last year's 0:18:14.560 --> 0:18:17.240 met Gala modeling for Louisvatan Tiffany. It's so interesting at 0:18:17.240 --> 0:18:19.080 a time when brands are being asked to step up 0:18:19.119 --> 0:18:21.159 on a lot of issues, and yet you look at 0:18:21.160 --> 0:18:23.679 the success she has in really staying um about so 0:18:23.720 --> 0:18:26.680 many important issues that are out there. Joe Weber, editor 0:18:26.760 --> 0:18:33.320 Bloomberg Business Week magazine. Catch this in the January issue. Yeah, 0:18:33.320 --> 0:18:35.199 I'll bet you let me drive. Oh no, no, no, no no, 0:18:37.600 --> 0:18:41.760 oh please, I'll do the ride gravel. I want to drive. 0:18:44.040 --> 0:18:50.600 It's good question. Drive is the drive to the clothes 0:18:53.920 --> 0:18:57.359 on Bloomberg Radio. Oh my god, it's confusing day. Uh. 0:18:57.720 --> 0:19:00.480 We are just about ten minutes away from the closing bell, 0:19:00.640 --> 0:19:04.080 and we have definitely seen stocks um higher for most 0:19:04.080 --> 0:19:05.760 of the day. We did see kind of a turnover 0:19:06.080 --> 0:19:09.000 and just coming off the highs. But here we are 0:19:09.080 --> 0:19:11.040 once again and we're just kind of bouncing around. You. 0:19:11.040 --> 0:19:13.040 Our best office of the day, our performers heard from 0:19:13.080 --> 0:19:15.640 Charlie really the nastac up more than one percent. Let's 0:19:15.720 --> 0:19:18.480 let's bring in Ryan Dietrich chief market strategist at LPL 0:19:18.520 --> 0:19:21.680 Financially joins us on the phone from Charlotte, North Carolina. Ryan, 0:19:21.840 --> 0:19:24.000 I love when you join us because you have so 0:19:24.040 --> 0:19:27.080 many technicals that you're looking at here we are, uh, 0:19:27.240 --> 0:19:29.879 you know, at the beginning of February. Still give us 0:19:29.880 --> 0:19:33.640 an idea technically how you're analyzing the market right now? Yeah, 0:19:33.680 --> 0:19:35.960 Tim and Carol, thanks for having me back. But you know, 0:19:36.320 --> 0:19:37.920 the way we're putting it as this what we're telling 0:19:37.920 --> 0:19:41.320 our advisors, this is a mid term year. We all 0:19:41.359 --> 0:19:44.160 know that, right. Historically when you look at the four 0:19:44.240 --> 0:19:46.480 year presidential cycle, guys, you know, the most of volt 0:19:46.560 --> 0:19:49.120 out of the four the mid term years. You see 0:19:49.160 --> 0:19:52.600 almost a seven team percent peak to trough correction during 0:19:52.600 --> 0:19:54.960 the midterm year. Did we expect to be like you know, 0:19:55.000 --> 0:19:57.080 the temperson correction to start this year in the SMP 0:19:57.200 --> 0:19:59.480 and even more in small caps in other areas well, 0:19:59.520 --> 0:20:01.600 Probably that soon at the start of the year. But 0:20:01.680 --> 0:20:04.800 it shouldn't be shocking to people that we're having more 0:20:04.920 --> 0:20:08.439 volatility right now. Now. The truth is we you know, 0:20:08.480 --> 0:20:10.879 a couple of mondays ago, was that below right, we 0:20:10.880 --> 0:20:13.359 had the record volume all to put the call ratio 0:20:13.400 --> 0:20:15.800 spiked a lot of fear. We think we're carving out 0:20:15.800 --> 0:20:18.320 a bottom. We had about a ten percent correction in 0:20:18.320 --> 0:20:20.600 the smp here um. You know, we can maybe go 0:20:20.680 --> 0:20:22.760 back down and tested from technical point of view. But 0:20:22.800 --> 0:20:24.800 the truth again is this market just kind of seems 0:20:24.800 --> 0:20:26.639 like it's choppy and wants to kind of just bide 0:20:26.640 --> 0:20:29.840 its time here. It's not necessarily bearish, maybe not super 0:20:29.880 --> 0:20:31.719 bowlish either, but if not the end of the world 0:20:31.840 --> 0:20:34.760 after the rally we saw last year. So wait, so 0:20:34.800 --> 0:20:40.040 you're blaming mid terms historically technically, well, we wouldn't say 0:20:40.040 --> 0:20:42.600 we're blaming them. We're just pointing out, Carol, that historically 0:20:42.600 --> 0:20:45.320 midterm years are vault. Let's not forget twenty eighteen. Right, 0:20:45.320 --> 0:20:47.960 we saw a bear market in pretty much in late 0:20:48.000 --> 0:20:50.639 in the year. At the same time, other reasons expect 0:20:50.680 --> 0:20:52.920 a little more volatility to fit. It's starting to high rates. 0:20:52.960 --> 0:20:56.720 We've seen volatility. Can the technician talk fundamentals? Can the 0:20:56.760 --> 0:21:00.359 technician talk fundamentals? I'm just wondering, Yeah, you know, I 0:21:00.440 --> 0:21:06.280 use the efforts sometimes. Whoa okay, technician, it's a technician joke. 0:21:06.600 --> 0:21:08.480 I know, I know, I can tell. So we talked 0:21:08.480 --> 0:21:09.639 to a little bit more about though, how are you 0:21:09.720 --> 0:21:11.439