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Speaker 3: Cory've actually in positive territory now just around forty dollars
Speaker 3: fifty five cents a share, so up about one percent.
Speaker 3: We're going to keep an eye on this one and
Speaker 3: we're going to get into it a little bit more
Speaker 3: deeply in just a moment. First up, though, as Charlie mentioned,
Speaker 3: you heard, stocks are down overall bonds up following today's
Speaker 3: batch of US economic data that showed to pick up
Speaker 3: an inflation, weaker than estimated spending and the latest update
Speaker 3: to the Atlanta Fed GDP now pointing to a negative
Speaker 3: growth in the first quarter, even after adjusting for gold imports.
Speaker 3: It was revised lower to down point five percent from
Speaker 3: up point two percent previously. After day's weaker than expected
Speaker 3: spending data, we needed to do an economic round up.
Speaker 4: So we got the guy with us to help us
Speaker 4: with that. That's Bloomberg News International Economics and Policy Corus.
Speaker 5: Mia'm a cowboy to do the economic ground up. Well Dallas, No,
Speaker 5: I'm sorry, Dallas people would be They wouldn't like that.
Speaker 4: I was thinking of your Boston Red Sox.
Speaker 5: Right, Yes, they're in Dallas or they won last night.
Speaker 4: So okay, good, that's what we care about.
Speaker 5: Okay, do we have a problem, Uh, well, now you
Speaker 5: can use the NASA thing, Houston.
Speaker 6: We're trying to get there, Mike, do we have a problem.
Speaker 5: We have black clouds on the horizon. Put it that way.
Speaker 5: We don't know if the storm is going to actually hit,
Speaker 5: or if it does, how bad it's going to be.
Speaker 5: But definitely we saw we saw weakness in spending. The
Speaker 5: spending that we did get up four tenths for the
Speaker 5: month after three tenths decline in January basically was in
Speaker 5: durable goods. So you get the impression that people were
Speaker 5: pulling forward purchases trying to get ahead of tariffs, which
Speaker 5: is probably also the story that we saw in the
Speaker 5: Michigan sentiment numbers today. With this was the final update.
Speaker 5: We normally just talk about the preliminary and that doesn't
Speaker 5: usually move much, but this time we saw a drop
Speaker 5: in the headline number and drop in expectations of fairly
Speaker 5: strong to fifty two six from fifty four to two.
Speaker 5: So people think there's going to be a problem six
Speaker 5: months from now, and you can see that reflected in
Speaker 5: the inflation expectations numbers.
Speaker 4: Which was the most important data point that we got
Speaker 4: this morning. Which one's the one moving the markets right now.
Speaker 5: It's probably the inflation ones.
Speaker 4: But that's interesting because when those came out, we didn't
Speaker 4: see I mean, when the market opened, didn't seem like
Speaker 4: the market moved a lot. The equity market at least
Speaker 4: didn't move a lot un till ten.
Speaker 5: Well, everybody, well, that's that's what I mean. The inflation
Speaker 5: expectations number, not the inflation numbers. We got basically what
Speaker 5: was expected with the PCEE, because that's that's an indicator,
Speaker 5: that's the way it's put together. Economists can forecast it
Speaker 5: pretty accurately. And it was only off by a tenth
Speaker 5: in the core on a year over year basis, So
Speaker 5: it was the inflation expectations numbers on a one year basis.
Speaker 5: People think inflation this year is going to be five percent,
Speaker 5: and five to ten year inflation is will be four
Speaker 5: point one percent. These are significant moves, and you know,
Speaker 5: I wouldn't think the Fed is terrified, but they're keeping
Speaker 5: an eye on this. They don't want inflation expectation.
Speaker 6: Mister Mike, can there be five percent inflation?
Speaker 5: Oh? Sure, this is only the highest level since twenty
Speaker 5: twenty two. Remember we had nine percent inflation. And that's
Speaker 5: part of the thing here is that people think this
Speaker 5: is possible because they saw it happened, and so now
Speaker 5: the idea is, you know, we're going to get tariffs.
Speaker 5: It's going to be a tax on everything we buy
Speaker 5: that's imported, and so people are thinking, well, I'm going
Speaker 5: to be paying more. And the more I hear about it,
Speaker 5: the worse it sounds. Especially you know, you've got Donald
Speaker 5: Trump saying twenty five tariff on important cars, right, and
Speaker 5: a lot of the American cars we buy come from
Speaker 5: Canada and Mexico. The American marks put it that way.
Speaker 4: Is that what is attributing to higher inflation expectations? Is
Speaker 4: it just tariffs?
Speaker 5: It's basically tariffs. We haven't seen any real inflation news
Speaker 5: in the actual inflation figures that would move people's expectations.
Speaker 5: In general, inflation has been coming down. It's gotten stuck
Speaker 5: a little bit, but it's not moved up significantly. So
Speaker 5: you've got to be looking at the headlines for what's
Speaker 5: going on.
Speaker 3: You know, One thing I do wonder is how quickly
Speaker 3: do we start to see the actual tariff impact in
Speaker 3: economic data points. I thought I heard something this morning
Speaker 3: on surveillance. It's it takes a few months for it
Speaker 3: to work its way in. So when will we start
Speaker 3: to because right now a lot of it is sentiment right,
Speaker 3: concerns about things. But when the reality hits and we
Speaker 3: see those prices, like, when will we see that?
Speaker 5: Well, I would look forward sometime in the summer. You
Speaker 5: get the tariffs on automobiles. Dealers generally have about two
Speaker 5: months worth of inventory in their lots on a rough basis,
Speaker 5: so they'll sell through those, and then when you start
Speaker 5: to get replacement for those, the costs will have to
Speaker 5: go up. The same thing with the other tariffs is
Speaker 5: going to put on next week. We don't exactly know
Speaker 5: what they're going to be, but supposing puts on tariffs
Speaker 5: on fruits and vegetables from Mexico, depending on when those
Speaker 5: tariffs become effective deals start to see those sooner than
Speaker 5: you would other things. And then there's the intermediate goods,
Speaker 5: the stuff that goes into other stuff that comes into
Speaker 5: the country, and that'll just depend on how soon it
Speaker 5: gets put in and how soon those things get go
Speaker 5: on sale.
Speaker 6: All Right, we got to leave it there.
Speaker 3: That is certainly though, something that investors are keeping an
Speaker 3: eye on all of that. Economic Mike, thanks so much,
Speaker 3: have a great week. And Bloomberg News International Economics and
Speaker 3: Policy correspondent Michael McKee. So that is the key economic
Speaker 3: news you need to know, and that is certainly impacting
Speaker 3: today's trade. We've got another big indicator of market health
Speaker 3: here in the United States.
Speaker 4: And that takes us to the highly anticipated IPO of
Speaker 4: the Nvidia backed core Weave Corey've shares opened up at
Speaker 4: thirty nine dollars. It was two and a half percent
Speaker 4: below the IPO price, up two percent though right now,
Speaker 4: just in the last nine minutes or so, Carol, Yeah,
Speaker 4: they went from the red to the green. The offering
Speaker 4: did raise one and a half billion dollars thirty seven
Speaker 4: and a half million shares priced at forty dollars a piece.
Speaker 4: The deal was downsize though from an initial plan of
Speaker 4: forty nine million shares. Who is said to have bought
Speaker 4: the shares also super interesting. So let's get into all
Speaker 4: of that and more with the dynamic deal of Bloomberg
Speaker 4: News US IPO and Deals reporter Ryan Gould and Bloomberg
Speaker 4: News Equities reporter Bailly Lipschultz here in the studio. Bailey
Speaker 4: on the price action. Why did we see the reversal here?
Speaker 7: Probably bankers utilized in the green shoes, so especially with
Speaker 7: the deal like this, so you kind of use the
Speaker 7: shares with the thing with it. When you do an IPO,
Speaker 7: you sell a bunch of shares and then banks can
Speaker 7: buy other shares at the IPO price. So typically the
Speaker 7: whole mechanism operates to basically give some form of balance
Speaker 7: with the deal. So I was talking a few bankers
Speaker 7: away from.
Speaker 6: Its orchestrated to make it's orchestrated.
Speaker 7: I mean, don't ask Bill Ackman about it, he has
Speaker 7: some pretty strong thoughts on it. But I was talking
Speaker 7: to a banker away from the deal and he was
Speaker 7: basically saying, when you see a deal like this, where
Speaker 7: so much of the book, as we've reported, has been
Speaker 7: allocated to a handful of investors.
Speaker 8: People will get jittery.
Speaker 7: So if you see the stock dropping in your hedge
Speaker 7: fund who bought this to make a quick buck, you
Speaker 7: want to get out as quick as you can. And
Speaker 7: then the banks will wait for that kind of rush
Speaker 7: of volume help stabilize the price, and then that can
Speaker 7: set up for you know, down two and a half
Speaker 7: to up two and a half, but still marginal.
Speaker 6: Is that not normal?
Speaker 3: To have what half of the book allocated to the
Speaker 3: three largest investors.
Speaker 7: That is tighter than I can think of in recent memory.
Speaker 7: We normally will have some deals that are they call
Speaker 7: him klubby. But as we reported half the book to
Speaker 7: three investors, so seven hundred and fifty million dollars of
Speaker 7: stock chopped up. And then if you look even further
Speaker 7: at our reporting, top fifteen to ninety percent of the deal,
Speaker 7: so very tightly allocated to almost friends of Morgan Stanley,
Speaker 7: if you will, all.
Speaker 3: Right, klubby friends, all that good stuff. Having said that Ryan,
Speaker 3: going into this it was downsize, so we had reduced
Speaker 3: expectations going into it based on that, and we are
Speaker 3: now showing a little bit of a gain. Is this
Speaker 3: a good debut, a bad debut?
Speaker 6: Or neutral?
Speaker 9: I think it's probably slightly I don't know, have to
Speaker 9: be that person, but I think it is still slightly
Speaker 9: too early. Let's see where we are at for because
Speaker 9: I think, you know, to the Green Shoe Point shore.
Speaker 9: But I was also talking to Mark Linchrato this morning
Speaker 9: the sea of Cooley, and you know, he was quite
Speaker 9: quick to point out aside, you know, away from the
Speaker 9: noise that we've seen this week in markets, and you know,
Speaker 9: just given where the nasdeck is in the smp IS today,
Speaker 9: cooleyve is not like most other tech companies that some
Speaker 9: of these investors you know, would be putting orders in for.
Speaker 9: I mean, his his view is that quite capital intensive.
Speaker 9: It is just based on the business model of Corey.
Speaker 9: Even so, his view in telling me this morning on
Speaker 9: the phone, was that investors are going to take some
Speaker 9: time to actually get their heads around how we do things,
Speaker 9: and you know, it's going to be a little bit
Speaker 9: of a process. So I think you could probably see
Speaker 9: some volatility for a period. And you know, I mean
Speaker 9: we're at you know, forty ninety one now it is
Speaker 9: conspicuously in that forty dollars area.
Speaker 8: You know, the price there isn't it just CEO speak.
Speaker 3: I don't, like, know, how how should we we're smart
Speaker 3: here at you like, how don't we read that?
Speaker 5: You know?
Speaker 9: And I put that to him, and you know, I
Speaker 9: think there's there's a lot going on. I mean, you've
Speaker 9: obviously got the Microsoft headline this week, which we spoke
Speaker 9: about yesterday. But then at the same time, the biggest
Speaker 9: customer it is, Yeah, and you would have to imagine
Speaker 9: in there among that sort of you know, taking fifty
Speaker 9: percent of the book too, I'm sure, in and around
Speaker 9: that area. And you know, I actually put it to
Speaker 9: Michael in for this morning, around sort of the Nvidio
Speaker 9: angle and you know, again away from some of the noise.
Speaker 9: He said that without in video and without the other
Speaker 9: twenty seven investors, this IPO would have got over the line.
Speaker 4: Interesting, how did they do it then?
Speaker 6: Or is it because they knew they had those backstops?
Speaker 9: I think, you know, for a company like Cole, we've
Speaker 9: that the thesiss is quite clear. It's just it becomes
Speaker 9: it's a valuation mechanism right now if you're an investor,
Speaker 9: because I think, you know, the free cash flow is
Speaker 9: very good. I mean, people are generally quite comfortable with
Speaker 9: the leverage, but it's always coming back to sort of
Speaker 9: some of the concerns around the customer concentration. And you know,
Speaker 9: they're quite quick to point out that the open a
Speaker 9: Eye contract that they agreed, you know, quite recently almost
Speaker 9: twelve million dollars is a boon, and you know it is.
Speaker 9: But at the same time, you're still faced with seventy
Speaker 9: seven percent of me your revenue one paper, coming from
Speaker 9: essentially two customers. So regardless of what sector you're in,
Speaker 9: whether you're AI or otherwise, people are going to look
Speaker 9: at that and think is that okay for us?
Speaker 4: And you take a view, right, yeah, Billie. Even though
Speaker 4: this is a little bit different of an IPO, it's
Speaker 4: certainly a canary in the coal mine or some sort
Speaker 4: of bell weather for other companies that are on the
Speaker 4: sidelines right now thinking about going public. What's at stake here?
Speaker 5: A lot, but also not a lot, okay?
Speaker 10: So it put it this way.
Speaker 7: The biggest side, the biggest IPO of the year was
Speaker 7: Venture Global, similar downsize, cut the book by about forty percent,
Speaker 7: priced poorly, traded, poorly down north of fifty seven percent.
Speaker 7: When I talk to bankers and investors, they're vocal, they
Speaker 7: were vocal.
Speaker 8: This is a one off. We're not worried about it.
Speaker 7: This deal comes out talking to bankers yesterday, We're not
Speaker 7: too worried about it. But it begs the question when will.
Speaker 8: People be worried about it?
Speaker 7: Because when you have six of the ten largest US
Speaker 7: IPOs year to date trading below offer, you can point
Speaker 7: to the market being down as much as you want,
Speaker 7: but at the end of the day, people.
Speaker 8: Buy IPOs to outperform the market.
Speaker 7: If you're not getting a day one pop or even
Speaker 7: a month later outperformance, that starts to make people second guess,
Speaker 7: why am I going to allocate resources to a private
Speaker 7: company that I've maybe met once or twice when I
Speaker 7: can buy your direct peers at a discount, and that's
Speaker 7: kind of what's been playing out.
Speaker 3: It also makes me wonder, you know, at Bloomberg Investors Share,
Speaker 3: I talk with the president of the New York Stock
Speaker 3: Exchange Land Martinet, and the expectations were that this was
Speaker 3: going to be a better year for m and a
Speaker 3: for IPOs highly anticipated with Corewave and some others that
Speaker 3: were substantial in terms of their size. So I'm just
Speaker 3: kind of wondering, is there something systemic going on in
Speaker 3: the IPO market or is it just once again, you know,
Speaker 3: because right, give us some context in terms of the
Speaker 3: last few years.
Speaker 7: So we're in entering now the fourth year of very
Speaker 7: lackluster IPO offerings. So Ever since the market really got
Speaker 7: shut late twenty one early twenty twenty two, you've had
Speaker 7: dribs and drabs.
Speaker 8: Arm has been terrific.
Speaker 7: Reddit has performed outside of the pullback, all things considered,
Speaker 7: quite well. But when we've had three years of bankers
Speaker 7: and CEOs pointing towards the market not being there even
Speaker 7: though we're at all time highs, now you're dealing with
Speaker 7: a market pulling back. A number of companies, early investors
Speaker 7: maybe saying, hey, we penciled in twenty twenty five, we
Speaker 7: need to get this on the ice. And when you interview,
Speaker 7: when you when Bloomberg investors playing out the vix was
Speaker 7: back above twenty, we're back above twenty again. That's where
Speaker 7: people on the banking side look at as a Okay,
Speaker 7: maybe we should rethink this, or we need to be
Speaker 7: more diligent with how we price these deals and how
Speaker 7: we communicate to investors. But there's as you mentioned, since
Speaker 7: March fourteenth, market's been choppy Klarna, stub Hub, e, Toro,
Speaker 7: and Integrity Insurance have all flipped public.
Speaker 8: So they've opened the door to going up.
Speaker 9: But go ahead, Ryan, Yeah, now just jump in and say,
Speaker 9: I think it points to a wider question that's going
Speaker 9: on between investors large, you know, tier one investors in
Speaker 9: the banks around you know, what is the true quality
Speaker 9: of most companies trying to go public these days and
Speaker 9: how much of a discount is necessary to get them
Speaker 9: over the line. I mean, we've talked a lot about
Speaker 9: I think, you know, on the desks only abount, the
Speaker 9: nature of the ip of discount. It has narrowed, you know,
Speaker 9: in recent years, but is there an idea that it
Speaker 9: could start to widen again given some of the price
Speaker 9: pressure that we're seeing in some of these debuts.
Speaker 3: I also think about, you know, this is something I
Speaker 3: know you guys cover and we talk about Tim and
Speaker 3: I the private markets and just again there's so much
Speaker 3: cash out there.
Speaker 6: I mean, how how old is Core Weave.
Speaker 9: It's been around for I think twenty seventeen.
Speaker 3: It's a younger company, all right, because we have seen
Speaker 3: a lot of companies that are able to stay private
Speaker 3: for a lot longer.
Speaker 10: I mean, look at Clona.
Speaker 9: Right, we talked about the other day.
Speaker 4: Iah, this is like a company that's almost as old
Speaker 4: as Facebook. Yeah, it's wild.
Speaker 3: Yeah, so it's it's kind of interesting. All right, So
Speaker 3: then what's the Outlok. We got just about a minute
Speaker 3: or so left. I mean, Ryan, how are you thinking
Speaker 3: about this today and maybe what's to come.
Speaker 6: Or what are you hearing from?
Speaker 8: Yeah, I mean you know a street.
Speaker 9: I think the point on private private captain in general
Speaker 9: is a prescient one because you know, there is someone
Speaker 9: I was speaking to this morning who was away from
Speaker 9: the from this deal that we're talking about today, and
Speaker 9: they're kind of saying, you know, our IPO is again
Speaker 9: being seen as sort of the last resort, you know,
Speaker 9: as opposed to a sign of strength. And you know,
Speaker 9: what does it mean for those who look to go
Speaker 9: And you know Clana could in theory go as soon
Speaker 9: as next week.
Speaker 4: But are they well Bailey mentioned all these companies that
Speaker 4: in the last few weeks have flipped to go in public.
Speaker 4: How much can they actually delay? Just in the last
Speaker 4: half thirty seconds that we have There's.
Speaker 8: No rule, so technically you can be on file for
Speaker 8: as long as you want.
Speaker 7: You just pay lawyers to Ryan's point, Clarna, the earliest
Speaker 7: they could launch a roadshow would be Monday, so that's
Speaker 7: what we'll be watching. But again, tariff days next week,
Speaker 7: and who knows what's going to go well.
Speaker 4: Hopefully for your sake for the weekend, I hope that
Speaker 4: doesn't happen.
Speaker 6: Get a break, Get a break, everybody.
Speaker 3: Right now, Core weave just up a hair so it's
Speaker 3: above forty, but it was just below forty a moment ago.
Speaker 6: Guys, Thank you so much.
Speaker 3: Bloomberg News Usipo and Deals Report, Ryan Gould and Bloomberg
Speaker 3: News Equities reporter Bailey Lipschultz.
Speaker 2: You're listening to the Bloomberg Business Week podcast. Catch us
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Speaker 3: Literally stock Actually the last segment we were talking about
Speaker 3: the Core reeve ipo and that is Reddit.
Speaker 6: It's also on our radar today.
Speaker 3: The gloomy sentiment around the company has failed to dissipate
Speaker 3: after it shares fell fifty percent from a February high.
Speaker 3: With volatile technology stocks under pressure, a little perspective, as
Speaker 3: we like to do here at Bloomberg. Stock is up
Speaker 3: about two hundred and nine percent from its IPO tim
Speaker 3: just about one year ago.
Speaker 4: Okay, with the trade concerns and the outlook for the
Speaker 4: social media platform. Here with us as Bloomberg News acuaby's
Speaker 4: reporter Karmen Ryanikese, she joins us here in the Bloomberg
Speaker 4: Business Week studio. What happened? I mean, it had a
Speaker 4: great IPO, great debut, and at the end of the
Speaker 4: year things were looking really good.
Speaker 6: Tim spends a lot of time on it.
Speaker 4: Yeah, I actually spent so much time on it that
Speaker 4: you know, they do the like the Spotify rap thing.
Speaker 4: Everybody does the Spotify rap thing. Reddit had one and
Speaker 4: they showed me like the data, like how much time
Speaker 4: I spent on it. And my reaction to that was
Speaker 4: deleting the app from my phone because I was like,
Speaker 4: I'm wasting my life with this.
Speaker 6: They're sending you a hat a T shirt.
Speaker 4: Especially Enough about me though, Karmen, Yes, what's going on?
Speaker 11: Reddit had a huge run up. It was a great IPO,
Speaker 11: great performance. Last year, got really swept up in the
Speaker 11: AI wave that we saw across you know, the entire
Speaker 11: technology space. For the most part, and then in the
Speaker 11: beginning of this year, it's it's fourth quarter report felt
Speaker 11: like just fell just a little bit short of user figures.
Speaker 11: There was a change in the Google Out algorithm that
Speaker 11: sort of hit its US users. That actually seems to
Speaker 11: have abated. But what's happened on the other side is
Speaker 11: that it's gotten really weighed down in this overall tech
Speaker 11: momentum trade that where we've seen so much volatility. I mean,
Speaker 11: even today you can see the nasdas down more than
Speaker 11: two and a half percent, and some of these heavy
Speaker 11: highest flyers are really just getting dragged down. And so
Speaker 11: Reddit is a really good example of a stock where
Speaker 11: there is so much bullish sentiment. There's you know, a
Speaker 11: ton of excitement I think for use with AI, like
Speaker 11: we're saying, large language models usage with Reddit, a lot
Speaker 11: of the train.
Speaker 4: Using the data. So people have answered a lot of
Speaker 4: questions on Reddit, a lot of experts. That's what's great
Speaker 4: about Reddit. Reddit has then sold the data to the
Speaker 4: LLLM companies exactly and they train their lms using that data.
Speaker 11: Exactly, and there's a you know, bulls also point out
Speaker 11: that there's a lot of growth potential markets here for Reddit,
Speaker 11: especially outside of us. So it really is a good
Speaker 11: example of a stock that's just gotten really hit, And
Speaker 11: there are other examples as well.
Speaker 3: So fifteen buys seven holds three Cells. If I look
Speaker 3: at the Bloomberg in terms of analysts coverage, still a
Speaker 3: lot of buys on the stock.
Speaker 6: Are animalsts though getting.
Speaker 3: More negative on it, or do they still like the
Speaker 3: fundamental story but just think it's the tech malaise?
Speaker 8: What is it?
Speaker 11: Yeah, so there was one downgrade late recently or an
Speaker 11: analysts that initiated at Cell after the Google algorithm okay switch,
Speaker 11: But other than that, honestly, analysts have maybe tweaked their
Speaker 11: price targets a little bit, but they've maintained their by ratings.
Speaker 11: They think that there's a long term monetization story here,
Speaker 11: that there is a lot of growth I had for Reddit.
Speaker 8: The one thing that I.
Speaker 11: Also think is interesting here is and again like the
Speaker 11: entire sort of tech momentum, I think people are a
Speaker 11: little bit hesitant of where to buy the dip or
Speaker 11: trying to call a dip, just seeing that there could
Speaker 11: be so much more room on the downside for a
Speaker 11: lot of these stocks that have really just cut the
Speaker 11: wind taken out of their sales.
Speaker 3: I would say, like fourteen percent of the float is
Speaker 3: still short, so there is still some negative sentiment out
Speaker 3: there that it could go for sure.
Speaker 4: Yeah, I don't understand why Google would change its algorithm
Speaker 4: to show less of this because people and the cover
Speaker 4: of Business Week, of the upcoming issue of Business Week
Speaker 4: is about what Google's doing in the face of the
Speaker 4: rise of AI and how people's search habits are changing
Speaker 4: and how Google's dealing with that. And one thing that
Speaker 4: the article mentions is that people started to change the
Speaker 4: way they search by adding Reddit to the end of
Speaker 4: their Google search, so it would then show Reddit results
Speaker 4: because Reddit results were so useful. It seems nuts to
Speaker 4: me that Google would change its algorithm and not show
Speaker 4: Reddit results with the same you know, at the same place.
Speaker 11: I mean, you make such a good point. I think
Speaker 11: there is sort of a sentiment out there that, I mean,
Speaker 11: Google is going to lose some search right because of AI.
Speaker 11: And the thing I will say is like they do
Speaker 11: change their algorithm on occasion. This is not like a
Speaker 11: new thing. So it's something that for Reddit at least
Speaker 11: hopefully has abated. It's something that they're used.
Speaker 6: To dealing with.
Speaker 11: But Ruby's one to watch it is really interesting.
Speaker 3: Yeah, definitely, and as we said, still way above its
Speaker 3: IPO price, but it's certainly been under pressure. Good stuff,
Speaker 3: Thank you so much, Carmen Rhinikeshy's Bloomberg News Equities reporter.
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Speaker 10: the studio with you both.
Speaker 12: I love that you all are this competitive, and this
Speaker 12: is what we know about our people.
Speaker 10: Our people are highly competitive.
Speaker 12: We see that every day, and we wanted to give
Speaker 12: our you know, super fans and even you know, people
Speaker 12: who've never interacted with us a way of playing right.
Speaker 10: We have so many verbs that we do.
Speaker 12: We do, watch, read, listen, why not play that's pointed
Speaker 12: So Bloomberg dot com slash pointed will drop you into
Speaker 12: the game news quiz ten witty questions every single week,
Speaker 12: written by a trivia master, so this is not your
Speaker 12: normal news quiz. And then on top of that, we've
Speaker 12: made the gameplay really distinct.
Speaker 10: Do you like to.
Speaker 4: Gamble if this is gambling? I like to gamble.
Speaker 10: There's gambling, but you know the stakes.
Speaker 12: Are relatively Yeah, money process, So you're gonna wage your
Speaker 12: points when you play, and then you can use leverages
Speaker 12: to either amplify your score or hedge.
Speaker 3: If you're not so short, how come there's only three
Speaker 3: though opportunity to do that because you got.
Speaker 10: To use them strategically.
Speaker 6: I wanted the more.
Speaker 10: Okay, so see, I'm curious. What was your score? That's good,
Speaker 10: it's above average, thank you.
Speaker 4: I got one fifteen or no, I got one ten.
Speaker 4: Sebastian got one fifteen. Yeah, Carol one and Sebastia.
Speaker 6: Get one fifteen. Our producers, Elizabeth, what did you get?
Speaker 4: Double digits? Not the triple digits, That's what I'll say.
Speaker 4: So we'll see it is it's only the higher the score.
Speaker 12: So the high score is one ninety. If you play
Speaker 12: this game perfectly, you get one ninety. The thing about
Speaker 12: this game that's unique is you can also end up
Speaker 12: with one ninety negative. Right, we will lose will Docu
Speaker 12: points if you get your answers wrong. So yeah, I
Speaker 12: knew all the answers, and I knew exactly how to
Speaker 12: play the game, and it was to test that we
Speaker 12: could do it. Wait, so did you get there's a
Speaker 12: number of people who have played and.
Speaker 10: Aced it so far, so it's happening.
Speaker 3: So is it basically like if you pick a category
Speaker 3: and go all in and then leverage.
Speaker 8: That one is that how.
Speaker 10: You still learn how to play the game.
Speaker 12: There's the times that's how you play okay, and so
Speaker 12: we're we're eager to see everyone scores. You get an
Speaker 12: awesome little readout at the end that shows how you played,
Speaker 12: and then the game is free to play. Uh if
Speaker 12: you register on Bloomberg dot com, you'll get a little
Speaker 12: readout that shows how you compare to everybody else. We're
Speaker 12: going to kick this off on Thursday nights from the US,
Speaker 12: and it's going to be opened through the weekend. This
Speaker 12: is part of you know, the company's the Bloomberg Weekend,
Speaker 12: so it's.
Speaker 10: More of a lean back experience. We want you to
Speaker 10: take your time, be thoughtful, make sure that you actually process.
Speaker 12: The little hidden clues we've you know, scattered across the
Speaker 12: questions for you.
Speaker 4: I think people understand the leverage portion of it within
Speaker 4: the game, but before you actually play the game, you
Speaker 4: have to know what you know that week. So you're
Speaker 4: essentially given what ten categories you're gonna wager. It could
Speaker 4: be politics, it could be technology, it could be IPOs,
Speaker 4: you could be bankruptcies, and you got to think about
Speaker 4: what you know for that week.
Speaker 12: And you're gonna have a little slighter Then you wait
Speaker 12: the category, so you have how many what's the antie that.
Speaker 10: You have to you have ten categories. You can go
Speaker 10: down to five and up to thirty.
Speaker 12: Right, so you got a wager whatever you want to
Speaker 12: put on the line there.
Speaker 4: Okay, Yeah, so that's why it's going to add up
Speaker 4: to one hundred.
Speaker 12: And then when you get to a point that you
Speaker 12: get the teas of the question, that's when you can
Speaker 12: use your leverages.
Speaker 6: It's really fun.
Speaker 3: It was really fun, and I agree with Tim, like
Speaker 3: there's a lot of quizzes where you've got to be fast.
Speaker 3: That's part of like getting a higher score, and it
Speaker 3: was nice to have some time to kind of play
Speaker 3: with it.
Speaker 12: What we've cracked here is it's not testing whether or
Speaker 12: not you read your push alert, as most of us
Speaker 12: probably did that or scan the headline. It's how confident
Speaker 12: you are in your answer, and that we think is
Speaker 12: a really uniquely Bloomberg thing.
Speaker 10: We're excited to explore more in this category.
Speaker 12: This is a new category for us, and we're really
Speaker 12: you know, wanting to prioritize you know, little habit forming experiences.
Speaker 3: Like is there a lot of discussion that goes on
Speaker 3: beyond like what the questions are going to be, like
Speaker 3: is there something that happens during the week.
Speaker 10: And you're like, of these questions.
Speaker 12: We've been doing rough draft after rough draft to make
Speaker 12: sure we get it right.
Speaker 10: And you know, this week, maybe.
Speaker 12: There was a certain messaging app that was in the news,
Speaker 12: like maybe maybe one question about that. It's a pretty
Speaker 12: good way to get people to start buying and challenge
Speaker 12: each other.
Speaker 4: I got that one right.
Speaker 3: By the way, there is another Dare I say another
Speaker 3: quiz that comes out on Thursday, right, and it's.
Speaker 4: Always in terminal users, right, big fans.
Speaker 3: But we do but we will be like during the
Speaker 3: week like, oh, that's going to be on the Bloomberg quiz.
Speaker 3: And I have a feeling we're going to do the
Speaker 3: same thing with this one.
Speaker 12: Yeap dirt And look, they satisfied different niches like when
Speaker 12: is very terminal centric and you play it for speed
Speaker 12: and see how you can compare. And we're bring a
Speaker 12: little bit more strategic.
Speaker 10: With what we're doing on Bloomberg dot Com.
Speaker 13: I love it.
Speaker 4: Joel Webber, good to have you here the head of
Speaker 4: Joints and Games. Can you come about more of course
Speaker 4: we can do this every Friday, all right, and don't
Speaker 4: look at the answers for next week. Oh so then
Speaker 4: you can actually take the.
Speaker 6: In a real way job.
Speaker 10: Come on this job. If I didn't do it before,
Speaker 10: say a little advantage.
Speaker 2: You are listening to the Bloomberg Business Week podcast. Catch
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Speaker 2: Listen on Apple CarPlay and the Android Auto with the
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Speaker 4: Well an update from or on the war in Ukraine,
Speaker 4: and I should say an exclusive yesterday from our team
Speaker 4: at Bloomberg News. The US and pushing for a deal
Speaker 4: that would give it control over major future infrastructure and
Speaker 4: mineral investments in Ukraine, potentially gaining a veto over any
Speaker 4: role for Kiev's other allies. This agreement would grant the
Speaker 4: US first claim on profits transferred into a special reconstruction
Speaker 4: investment fund that would be controlled by Washington, and would
Speaker 4: require Ukraine Carol to pay for all US military and
Speaker 4: economic support provided. Since the start of the war.
Speaker 3: Andy Kurtzik has kept a close eye on everything happening
Speaker 3: in Ukraine.
Speaker 8: It makes sense.
Speaker 3: He's the founder and chief executive officer of just answer,
Speaker 3: which matches you with experts such as doctors, lawyers, and
Speaker 3: mechanics and more who can answer your question. He has
Speaker 3: more than three hundred employees in Ukraine. He joins us
Speaker 3: from San Francisco, the Bay Area on this Friday. Andy,
Speaker 3: nice to have you back with us. How are you
Speaker 3: and how is your team in Ukraine?
Speaker 13: I'm doing fine, thanks, Carol and Tam happy to be here.
Speaker 13: And yeah, it's tough in Ukraine and its situation has
Speaker 13: changed dramatically over the last few years.
Speaker 4: Well, you know, Carol asks how your team is doing,
Speaker 4: and it's a complicated question because you have more than
Speaker 4: three hundred people there. But since we last spoke to you,
Speaker 4: has the team had to take breaks to go and
Speaker 4: actually fight in the war. How has that worked?
Speaker 13: Yeah, I mean our people are getting drafted and they
Speaker 13: are going to fight in a war. It's a it's
Speaker 13: a You know that this war is a meat grinder
Speaker 13: and it is killing lots of people on both sides,
Speaker 13: and they need to keep keep bringing in more people
Speaker 13: to fight the war, and that includes our employees.
Speaker 4: Including Andy, those who work for you. Have have you
Speaker 4: lost any members of your team?
Speaker 13: We have, we have It's it's tragic. We have lost
Speaker 13: members of our team. A wonderful guy that I worked
Speaker 13: with closely was killed. It's a tragedy.
Speaker 4: I'm so sorry to hear that. It's that's absolutely awful.
Speaker 4: As I mentioned, it had has been a few years
Speaker 4: since we spoke to you. We spoke to you right
Speaker 4: at the beginning of the war. Certainly a lot has changed,
Speaker 4: including a presidential administration. How have you been watching the
Speaker 4: way that the US has shifted its view in this
Speaker 4: administration on how to support Ukraine and end the war.
Speaker 13: I mean, it is, it's a it's a complete one
Speaker 13: shift recently with the Trump administration's approach compared to the
Speaker 13: Biden administration's approach to Ukraine. It is. It is quite
Speaker 13: a lot of uncertainty right now and a lot of
Speaker 13: fear and concern in Ukraine for what might happen.
Speaker 4: One thing that we spoke about when we last spoke
Speaker 4: was the talent in Ukraine, especially on the computer science,
Speaker 4: programming engineering side. For years, American companies have tapped into
Speaker 4: the talent there, uh for jobs that have been hard
Speaker 4: to fill here in the US. A lot of companies
Speaker 4: decided not necessarily to continue with their operations in Ukraine
Speaker 4: as a result of the war. You did, though you
Speaker 4: kept your team intact. Explain the reasoning there.
Speaker 13: Yeah, so supporting Ukraine is incredibly strategic for us. I mean,
Speaker 13: these are bright, talented, hard working folks and you know,
Speaker 13: they they help they be. Without them, we would be
Speaker 13: able to to be where we are today as a company.
Speaker 13: And so we really doubled down on supporting them. And
Speaker 13: it's it's both well smart from a business perspective, but
Speaker 13: also I think beyond that, it's it's strategic from a
Speaker 13: global perspective. We're investing in the future of democracy and
Speaker 13: the future, i think a future innovative partner in Europe.
Speaker 3: What did you make of when Tim you know, kicked
Speaker 3: off the introduction to you, you know, talked about, you know,
Speaker 3: the negotiations that are going on US involvement looking for
Speaker 3: control over major future infrastructure mineral investments in Ukraine.
Speaker 6: How do you read that?
Speaker 13: I mean, it's it's it's it feels like it's gone
Speaker 13: from UH an incredibly strategic perspective on you know, the
Speaker 13: world democracy and really thinking about the future of all
Speaker 13: of our allies and encouraging democracy to more of a
Speaker 13: negotiation and a business transaction, and you know that's difficult
Speaker 13: to watch.
Speaker 6: Is it also difficult to watch?
Speaker 3: And I think about some of the optics that some
Speaker 3: have mentioned, certainly during the inauguration of President Trump second
Speaker 3: time around, of very prominent members of the US tech community,
Speaker 3: And I am curious what you are hearing from some
Speaker 3: of your peers or others in the tech community about.
Speaker 6: The lack of support.
Speaker 3: That might be coming from some very prominent individuals who
Speaker 3: could maybe help you help Ukraine in terms of the future.
Speaker 5: Yeah, that has.
Speaker 13: Been difficult to watch as well. You know, a couple
Speaker 13: of years ago, the whole world was on ukraine side,
Speaker 13: and everybody was rooting for them, supporting them and encouraging
Speaker 13: their fight for democracy, which is really a fight for us,
Speaker 13: and it is. It has been disheartening to watch that
Speaker 13: evaporate over time, and many of those same leaders that
Speaker 13: were staunchly in favor of Ukraine and out there promoting,
Speaker 13: you know, Ukraine's democracy, are now quite silent on the topic.
Speaker 13: And so you know, that's exactly why I feel it's
Speaker 13: crucial for me to speak up. You know, this fight
Speaker 13: isn't over. Ukraine's struggle for freedom is a marathon, not
Speaker 13: a Sprint, and I believe the tech community, known for
Speaker 13: its innovation, should be standing up and persevering with Ukraine
Speaker 13: to help them them win. So my message to my
Speaker 13: peers is stay engaged. This is good for not just
Speaker 13: your business, but it's good for the world.
Speaker 3: What hope do you have that you can get the
Speaker 3: support that you need from Europe itself? Because I think
Speaker 3: there are some who would say, Okay, this is in
Speaker 3: you know, the European Union, it's their backyard. You know
Speaker 3: they should be stepping up more.
Speaker 6: Are they?
Speaker 3: What are you seeing in terms of support from other
Speaker 3: European nations in terms of this this ongoing war now
Speaker 3: and it's third year.
Speaker 13: So this is an incredibly strategic battle for the whole world,
Speaker 13: for democracies everywhere. So it is about not just the US,
Speaker 13: It's about Europe as well. And I am seeing positive
Speaker 13: signs that Europe is stepping up more and doing more
Speaker 13: to fill the void that the US has been expanding
Speaker 13: in terms of the support. So I am hopeful that
Speaker 13: Europe will step up more and do more.
Speaker 4: Andy, I want to shift just in the last couple
Speaker 4: of minutes that we have to talking about the business,
Speaker 4: just answer and get a business update from you while
Speaker 4: we have you, I'm curious how you're incorporating AI, something
Speaker 4: that we're spending a good portion of our lives using
Speaker 4: and talking about at this point. How are you incorporating
Speaker 4: it into just Answer? Thank you.
Speaker 13: That's a great question.
Speaker 10: We love AI.
Speaker 13: We've been using AI for about twelve years a very
Speaker 13: important way. So the way that AI works a just
Speaker 13: answer is that we think about the professional services experience
Speaker 13: going to see a doctor or a lawyer, or a
Speaker 13: mechanic or an accountant or a veterinarian, and we essentially
Speaker 13: took that entire process apart and reassembled it in an
Speaker 13: AI first way twelve years ago, so that everything in
Speaker 13: that customer journey except for the human answer, is automated
Speaker 13: using AI. The intake, the triage, the follow up. So
Speaker 13: everything you can imagine is automated using AI, except for
Speaker 13: the human expert answer. And so that's really driven a
Speaker 13: lot of growth for our business.
Speaker 4: Is there a way though, to I mean, is there
Speaker 4: a way to automate that human answer? I think that
Speaker 4: that's sort of the natural next step for your company
Speaker 4: is that the experts, the answers to the questions exist
Speaker 4: online in some form already no.
Speaker 13: Sometimes they do and sometimes they don't. So I mean
Speaker 13: as we know. So, first of all, we have a product,
Speaker 13: a division called peerl dot com that is giving AI
Speaker 13: forward answers, so we have a front row seat on
Speaker 13: that experience as well and actually giving expert answers via AI.
Speaker 13: Our system is twenty two percent better than Chat, GPT
Speaker 13: and Google Gemini in the professional services sector and forty
Speaker 13: one percent less wrong, and yet people still prefer to
Speaker 13: talk to a human expert for many reasons. First of all,
Speaker 13: these systems all hallucinate. Ours is better than Chat, GPT
Speaker 13: and Gemini, but it still hallucinates. And that's just a
Speaker 13: fundamental problem with these foundational models. They make mistakes. And
Speaker 13: when you're talking about a poem or help me write
Speaker 13: an email, you know.
Speaker 5: What you're doing. You can deal with that.
Speaker 13: But when you're talking about medical issue, a legal issue, right,
Speaker 13: these things are have high consequence and the quality is critical,
Speaker 13: and you're even seeing companies getting sued now Google included
Speaker 13: for you know, giving bad advice.
Speaker 4: Yeah, that's a good point. Hey, Andy, always good to
Speaker 4: check in with you. Andy Kurtzig is the founder and
Speaker 4: CEO at Just Answer. He joins us from the San
Speaker 4: Francisco Bay Area.
Speaker 11: Robmucle I'll bet you let me drive.
Speaker 5: Oh no, no, no, no, this is not a toy.
Speaker 10: Who's going to drive any please? I'll do the gravels. Wait,
Speaker 10: I want to drive.
Speaker 13: It's a good question.
Speaker 5: This is the drive to the clothes.
Speaker 10: That punk's commuting.
Speaker 2: Well, l the don on Bloomberg Radio.
Speaker 3: All right, everybody, we've got about eighteen minutes to go
Speaker 3: until we wrap up the trading day on this Friday
Speaker 3: and wrapping up the week overall. As we've been reminding
Speaker 3: everybody you just heard from Bill Maloney and Charlie Pellett, we're.
Speaker 6: Pretty much near our loads of this session. We've stayed
Speaker 6: there really for the last hour.
Speaker 3: It feels like that we haven't been able to see
Speaker 3: any kind of rally potentially into the close here, still
Speaker 3: down about two percent on the S and P five
Speaker 3: hundred Dow Jones Industrial average, a decline of seven hundred,
Speaker 3: almost seven hundred and fifty points, down almost one point
Speaker 3: eight percent. The tech heavy Nasdaq one hundred down almost
Speaker 3: two point eight percent. That's a decline of almost five
Speaker 3: hundred and fifty points. But we are seeing really some
Speaker 3: broad based selling. I keep bringing up the equal weighted
Speaker 3: index for the S and P five hundred just to
Speaker 3: see where that is. As I mentioned, the S and
Speaker 3: P down two point one percent, the equal weighted S
Speaker 3: and P five hundred ten still down about one point
Speaker 3: six percent.
Speaker 4: Yeah, I'm taking a look at deeper dive into the
Speaker 4: different industry groups. Can Communication services down a three point
Speaker 4: nine percent? Consumer discretion down three point six The Bloomberg
Speaker 4: gauge of mag seven is underperforming everything right now. It's
Speaker 4: having its worst day going back to March tenth. This
Speaker 4: is the Bloomberg Magnificent seven Total Return Index. It's down
Speaker 4: three point seven percent.
Speaker 3: All right, let's see what our next guest has to
Speaker 3: say a little bit about this market environment. Rob Fummell
Speaker 3: a senior portfolio manager at Tortoise Capital. It's got nine
Speaker 3: point six billion in assets under management. He helps manage
Speaker 3: the Tortoise Energy Infrastructure Total Return Tick or is TRIX.
Speaker 3: It is returned more than thirty eight percent over the
Speaker 3: last year, putting it in the ninety fifth percentile among
Speaker 3: its peers. Go back about three years, averaging about twenty
Speaker 3: percent per year, putting that in the sixty ninth percentile.
Speaker 3: He joins us now from Kansas City, Hey, Rob, before
Speaker 3: we talk energy and other sectors, broad view on today's environment, market,
Speaker 3: environment and the selling that we continue to see on
Speaker 3: this Friday.
Speaker 13: Yeah, good efening Carroll.
Speaker 4: Tim.
Speaker 14: Yeah, Well, obviously it's been a rough week obviously the
Speaker 14: tariffs and uncertainty regarding the impact of tariffs on the
Speaker 14: economy or or driving everything, and so that's what we're
Speaker 14: seeing across the board. I guess the good news is
Speaker 14: as an energy investor, and that's what we focus on
Speaker 14: at Tortoise, the one thing is certain. We always need
Speaker 14: more energy in the un and always need more energy
Speaker 14: in the world, So that's been a good place to be.
Speaker 4: Is it concerning at all to you, given that energy
Speaker 4: prices are volatile in terms of supply and demand, mainly demand,
Speaker 4: not just here in the US, but also globally, if
Speaker 4: we could be entering a period of perhaps a recession.
Speaker 14: Yeah, Tim, And that's a good question. So energy demand
Speaker 14: and the economy go hand in hand. So if we
Speaker 14: do have a recession, yeah, energy demand does go down,
Speaker 14: but it also comes back, and it comes back fairly quickly.
Speaker 14: So if you go back and look over the last
Speaker 14: forty years, global energy demand has risen thirty eight out
Speaker 14: of those forty years. So do we watch it pretty closely, yes,
Speaker 14: But when we look at where do investors look to
Speaker 14: put cash, one of the great things about the energy
Speaker 14: sector is there's a lot of companies out there, like
Speaker 14: infrastructure energy infrastructure companies that has that have fee based
Speaker 14: cash flows and they pay high dividend yields right to investors.
Speaker 14: And that's a good place to be in these uncertain
Speaker 14: times because these dividen and yields are certain. Of the
Speaker 14: cash flows of these companies are certain, and so we
Speaker 14: like those type of plays in this type of a
Speaker 14: market environment in the energy sector.
Speaker 3: And there are some specific companies because I do think
Speaker 3: in an environment like this there's always buyers and sellers.
Speaker 3: Is just a matter of price, right, And you do
Speaker 3: like you know, and we do see it sometimes an
Speaker 3: investor at this point saying, well, wait a minute, there's
Speaker 3: a name I like, I like the fundamentals.
Speaker 13: I get it.
Speaker 3: Maybe it's a longer term hold because of the uncertainty
Speaker 3: in the current environment, but nonetheless I can maybe get
Speaker 3: it at a cheaper price in this environment. But let's
Speaker 3: get to some of your individual picks that you like.
Speaker 3: Williams Companies is among them. Ticker is WMB. Why this
Speaker 3: name in particular, Yeah, no Chrols.
Speaker 14: So if you think about this from US a big
Speaker 14: picture perspective, we think that natural gas really well, the
Speaker 14: energy sector is being redefined. We think in the next
Speaker 14: decade or so in natural gas will play a really
Speaker 14: important role.
Speaker 10: And so all that that all ties back.
Speaker 14: To Williams because Williams is one of the operators of
Speaker 14: the largest natural gas pipeline networks in the world. So
Speaker 14: once again they're one of these companies, pretty high dividend yield,
Speaker 14: five percent dividend yield. They're going to grow that dividend
Speaker 14: four to six percent, might even be a little bit
Speaker 14: higher than that out into the future. They're really benefiting
Speaker 14: from a lot of different things that are going on
Speaker 14: in the US, whether that's exporting of liquified natural gas
Speaker 14: out of the US, whether that's bringing back manufacturing to
Speaker 14: the US.
Speaker 10: That's really important.
Speaker 14: But the big change is AI and the development of
Speaker 14: electricity demand. That's really needed to support the development of
Speaker 14: AI and all these data centers and Williams will benefit
Speaker 14: from that.
Speaker 4: How do you look at and you have a couple
Speaker 4: more picks, We're going to get to them, But I'm
Speaker 4: just wondering how you look at renewables and whether or
Speaker 4: not there is a future in renewables given what we've
Speaker 4: seen from the Trump administration.
Speaker 14: Sure, Jim, Well, well, we think there's an all of
Speaker 14: the above approach that's going to be necessary for energy demand.
Speaker 14: I think if you just look both domestically and globally,
Speaker 14: energy demands going up, and we're going to build a
Speaker 14: lot of data centers. I know that this data center
Speaker 14: trade is I guess calin being called in the question,
Speaker 14: and maybe some capex is going to be a little
Speaker 14: bit low, or maybe it's going to be a little
Speaker 14: bit higher down the road, but the big picture is
Speaker 14: we're going to need a lot a lot more data
Speaker 14: centers in the US. We're probably going to build this
Speaker 14: equivalent to the Strategic Data Reserve, kind of like we
Speaker 14: have the Strategic Petroleum Reserve and oil, we'll have the
Speaker 14: Strategic Data Reserve for technology. That just means you're gonna
Speaker 14: need a lot of electricity, and you know what, You're
Speaker 14: gonna need a lot of energy, and so we're gonna
Speaker 14: need all of the bit of approach. Renewables to play
Speaker 14: a role in that, but natural gas will play a
Speaker 14: really important role and probably one of the most consequential
Speaker 14: roles going forward.
Speaker 3: Hey, since you are so embedded into the energy space,
Speaker 3: what is your longer term view on renewables?
Speaker 6: Is it a rollback?
Speaker 3: Will we not see the investment? Is it a one
Speaker 3: to eighty turn for the United States? Or you know,
Speaker 3: the train has already left the station, and renewables has
Speaker 3: to be a part of our energy story going forward
Speaker 3: and will continue to be maybe even more so.
Speaker 14: Yeah, I think, I think well part of the technology,
Speaker 14: So I do. I do think that the technologies have
Speaker 14: to have to or will continue to get better. Obviously
Speaker 14: we're looking the wind energy has struggled offshore for sure
Speaker 14: as far as the technology becoming commercial commercial operation. But
Speaker 14: when energy domestically will continue to grow, we think solar
Speaker 14: energy will continue to grow. Hydrogen will be a little
Speaker 14: bit tougher. The economics right now are really tough for
Speaker 14: hydrogen going forward, but carbon capture has the potential as
Speaker 14: well to really change the game and improve the environment
Speaker 14: and the environmental circumstances pretty substantially, probably over the next decade.
Speaker 4: Okay, we only have about thirty seconds left, but I
Speaker 4: want you to give us just thirty seconds on energy
Speaker 4: transfer ticker ET. Yeah. ET.
Speaker 14: So it's a great company, diversify energy companies. Almost an
Speaker 14: eight percent dividend yield, going to grow the divid in
Speaker 14: three to five percent a year. It's a classic American
Speaker 14: entrepreneur store run by an entrepreneur, Kelsey Warren.
Speaker 8: Are founded by Kelsey Warren.
Speaker 14: It's got It gives you really exposure to energy infrastructure,
Speaker 14: so fee based cash flows, and exposure to exports, sporting
Speaker 14: of crude oil, exporting of natural gas liquids like athleene
Speaker 14: and propane as well. So it's a great opportunity to
Speaker 14: get some heal.
Speaker 3: Twenty seconds left here. Are you nervous about this market environment?
Speaker 3: Are your investors getting nervous running for the exits?
Speaker 14: No, not ours because of the dividend field that we
Speaker 14: can provide.
Speaker 13: Right.
Speaker 14: The energy is underperformed in so many markets, Carolyn, As
Speaker 14: you know, energy is coming back, and actually we're seeing
Speaker 14: a rotation. There's a rotation out of tech into energy.
Speaker 14: Energy is one of the best performing sectors in the
Speaker 14: S and P. Five hundred when we wrap up, but
Speaker 14: on Monday, I think it might be the leader. And
Speaker 14: so as a result of that, we're excited about where
Speaker 14: the world.
Speaker 10: Can go with energy.
Speaker 3: All right, have a good weekend, Rob, Thanks for your
Speaker 3: time today. Rap Down All, Senior portfolio manager, Tortoise Capital.
Speaker 2: This is the Bloomberg Business Week podcast, available on Apple, Spotify,
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