WEBVTT - Single Best Idea with Tom Keene: Dan Ives & Gene Munster

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Single best idea and the heart and soul of what

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<v Speaker 2>we do is the guests and within the crushing schedule

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<v Speaker 2>of the guests, the technology getting in in studio, in

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<v Speaker 2>hotel rooms around the world, whatever they gotta want to

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<v Speaker 2>come on. And we are so humble that our guests

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<v Speaker 2>around different news events really want to come on. To

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<v Speaker 2>get Claudia Samon on Jobsday is a big deal. So

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<v Speaker 2>what do we do with technology? Back to back? Dan

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<v Speaker 2>Ives and Gina Munster with us. Don't forget some man

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<v Speaker 2>deep sing at Bloomberg Intelligence among other worthies, But today

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<v Speaker 2>was wonderful. Dan Eyes of web Bush Securities, Retail, Los

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<v Speaker 2>Mag seven institutional less.

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<v Speaker 3>So Retells stuck with it. Institutional they've hit the exit

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<v Speaker 3>and I think they got and they've got scared out.

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<v Speaker 3>A lot of the mags haveing a lot attack and

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<v Speaker 3>now guess what's gonna happen over the coming weeks. They're

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<v Speaker 3>gonna have to double down. And I think that's why

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<v Speaker 3>I think the run here that we can see intact

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<v Speaker 3>over the next three four weeks, especially as we go

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<v Speaker 3>through I think could be massive because it's under own

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<v Speaker 3>institutionally because of well is Paul talked about stock being

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<v Speaker 3>up nine. In terms of Microsoft, there was a view

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<v Speaker 3>that they were gonna miss azure. They absolutely I mean,

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<v Speaker 3>this is an Aaron Judge like performance.

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<v Speaker 2>Dan iives, I didn't know Aaron Judge was. I had

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<v Speaker 2>to ask Paul who that was. Danives there with webbush

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<v Speaker 2>and a better than good performance by Microsoft. And I

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<v Speaker 2>should mention Facebook as well. On we go to Apple

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<v Speaker 2>and Amazon, Gene Monster join from deep water. And you know,

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<v Speaker 2>every once in a while, particularly with the generous length

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<v Speaker 2>of time we get to speak to our guests, I

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<v Speaker 2>can to ask something more philosophical and to me, the

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<v Speaker 2>immense miss stree here, the immense mystery here of Apple

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<v Speaker 2>computer is people really don't know what made Tim Cook

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<v Speaker 2>Gene Monster on the expert on supply change Timothy Cook.

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<v Speaker 1>There is one hundred percent confidence in Tim Cook's ability

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<v Speaker 1>to make the best out of an extremely difficult situation.

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<v Speaker 1>But even his magical ability to increase gross margins by

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<v Speaker 1>using better manufacturing over the last decade, even that power

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<v Speaker 1>is small relative to the forces of what these tariffs

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<v Speaker 1>could mean. And I'll just kind of put some briefly

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<v Speaker 1>into context is. My sense is that these tariffs when

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<v Speaker 1>it comes to Apple, there's still mixed messages coming out

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<v Speaker 1>of the White House in terms of how Apple's going

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<v Speaker 1>to be impacted by that. My sense is that they're

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<v Speaker 1>probably going to shake out somewhere between a ten and

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<v Speaker 1>twenty percent tariff, And if that in fact ends up

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<v Speaker 1>being the case, even with Cook's masterful to the supply chain,

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<v Speaker 1>they're probably going to see some diminishing of gross margins

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<v Speaker 1>and it probably goes from call it forty percent forty

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<v Speaker 1>one percent. They're probably going to lose a couple percent

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<v Speaker 1>on that, call it thirty nine, and so that is

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<v Speaker 1>it's a step back. I just want to put some

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<v Speaker 1>context when we hear about all this, the forces that

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<v Speaker 1>Tim Cook, the levers that he can pull, there are

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<v Speaker 1>some limitations to it. And that's why I think that

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<v Speaker 1>I just like applaud dan Ives and him standing up

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<v Speaker 1>and saying like, we got to get this thing figured out,

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<v Speaker 1>and what figured it out means is just some clarity.

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<v Speaker 1>And ultimately I think that that clarity is going to

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<v Speaker 1>be twenty percent, and it's going to be a little

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<v Speaker 1>bit of an impact. Again, doesn't change the long term

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<v Speaker 1>trajectory of the business, but it's something that investors are focused.

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<v Speaker 2>Gene Monster there of deep water asset management. On the

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<v Speaker 2>Jobs Day tomorrow, really looking forward to the coverage a

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<v Speaker 2>wonderful set of worthies to help us with a mystery

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<v Speaker 2>of this trade war across the nation. On your commute,

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<v Speaker 2>major shout out to Google Alphabet and their Android Auto.

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<v Speaker 2>I am brief that they're coming out with all sorts

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<v Speaker 2>of new spectacular technology to drive that modern digital experience forward.

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<v Speaker 2>On our podcast, We're out on YouTube podcast single best

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<v Speaker 2>Idea