1 00:00:02,720 --> 00:00:10,600 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. You're listening to the 2 00:00:10,600 --> 00:00:14,600 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:14,640 --> 00:00:18,560 Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business App. 4 00:00:18,640 --> 00:00:21,920 Speaker 1: Listen on demand wherever you get your podcasts, or watch 5 00:00:21,960 --> 00:00:23,120 Speaker 1: us live on YouTube. 6 00:00:23,480 --> 00:00:25,880 Speaker 2: So the Boeing seven eighty seven Dreamliner that was operated 7 00:00:25,880 --> 00:00:29,240 Speaker 2: by Air India crash shortly after taking off in India, 8 00:00:29,320 --> 00:00:31,680 Speaker 2: killing all. But it's killing all two hundred and forty 9 00:00:31,680 --> 00:00:35,080 Speaker 2: two people on board joining us now is said Phillip Bloomberg, 10 00:00:35,120 --> 00:00:37,280 Speaker 2: Deputy team leader for Global Aviation. I said he was 11 00:00:37,280 --> 00:00:38,960 Speaker 2: in London, but he's not. He's in Paris. I should 12 00:00:38,960 --> 00:00:40,720 Speaker 2: have known from the Eiffel Tower that's behind him. For 13 00:00:40,760 --> 00:00:44,479 Speaker 2: those of you on radio, this is all right before 14 00:00:44,520 --> 00:00:46,960 Speaker 2: the Paris air show, right, what are you hearing on 15 00:00:47,000 --> 00:00:47,760 Speaker 2: the ground. 16 00:00:48,840 --> 00:00:51,360 Speaker 3: Thanks Alix. So at the moment, we don't really have 17 00:00:51,560 --> 00:00:54,440 Speaker 3: details on what rety went wrong with the aircraft and 18 00:00:54,560 --> 00:00:57,000 Speaker 3: what caused the crash. I mean it reached an altitude 19 00:00:57,000 --> 00:00:58,680 Speaker 3: of six hundred and twenty five feet and then it 20 00:00:58,800 --> 00:01:01,160 Speaker 3: sort of just plummeted the ground in a massive fireball. 21 00:01:01,640 --> 00:01:05,600 Speaker 3: And we know that over two hundred over two hundred 22 00:01:05,600 --> 00:01:10,200 Speaker 3: people have been pulled out dead. There has been some 23 00:01:10,319 --> 00:01:13,840 Speaker 3: mention of survivors, we don't really know how many. The 24 00:01:13,880 --> 00:01:16,360 Speaker 3: police said that survivors have been taken to hospital. We're 25 00:01:16,400 --> 00:01:19,440 Speaker 3: not quite sure whether those survivors are from the aircraft 26 00:01:19,640 --> 00:01:22,960 Speaker 3: or whether they're from the residential building. So the plane 27 00:01:22,959 --> 00:01:26,560 Speaker 3: crashed into a residential building. It was a medical college 28 00:01:26,560 --> 00:01:30,520 Speaker 3: hostel and that's where students and doctors were eating lunch 29 00:01:30,520 --> 00:01:34,320 Speaker 3: when the plane crashed. So it was a massive tragedy 30 00:01:34,600 --> 00:01:38,960 Speaker 3: the bot for air India, for India, and obviously it's 31 00:01:39,120 --> 00:01:42,080 Speaker 3: raised lots of questions on Boeing and we're still waiting 32 00:01:42,120 --> 00:01:44,640 Speaker 3: to see what those answers actually are to those questions 33 00:01:44,720 --> 00:01:47,560 Speaker 3: as to what caused it and where do we go 34 00:01:47,640 --> 00:01:48,000 Speaker 3: from here. 35 00:01:48,240 --> 00:01:52,400 Speaker 4: So typically who leads these investigation series at the host 36 00:01:52,440 --> 00:01:55,760 Speaker 4: country is that the airline? Is it? How does that work? 37 00:01:57,760 --> 00:02:01,919 Speaker 3: Yes, so the investigation will be led by investigators from India. 38 00:02:02,000 --> 00:02:04,960 Speaker 3: So typically when a plane crashes, the country where the 39 00:02:05,000 --> 00:02:08,400 Speaker 3: plane crash leads the investigation into what went wrong. The 40 00:02:08,840 --> 00:02:12,240 Speaker 3: other countries that sort of we have FA input, we 41 00:02:12,280 --> 00:02:15,640 Speaker 3: have NTSP input, we have input from the manufacturer. In 42 00:02:15,639 --> 00:02:18,880 Speaker 3: this case Boeing in also from GE because they made 43 00:02:18,919 --> 00:02:21,640 Speaker 3: the engine, So there will be input from others. And 44 00:02:21,720 --> 00:02:27,200 Speaker 3: we've also seen the UK Air Investigation Investigation Accident Investigation 45 00:02:27,320 --> 00:02:30,720 Speaker 3: Board talking that they would be sending some investigators to 46 00:02:30,800 --> 00:02:33,600 Speaker 3: India tomorrow, so there will be it will be a 47 00:02:33,680 --> 00:02:36,680 Speaker 3: multinational effort in terms of trying to find out what 48 00:02:36,760 --> 00:02:40,280 Speaker 3: went wrong and then they will sort of determine where 49 00:02:40,480 --> 00:02:43,320 Speaker 3: the problem came up from and what really caused this crash. 50 00:02:44,240 --> 00:02:47,840 Speaker 2: We are seeing Boeing shares down obviously looking at GE 51 00:02:47,960 --> 00:02:52,799 Speaker 2: because they were using GE engines. Are those market reactions investors' 52 00:02:52,880 --> 00:02:57,320 Speaker 2: reactions legitimate considering how much unknown there are, how hard 53 00:02:57,320 --> 00:03:00,160 Speaker 2: it is to fly planes and the variables like birds. 54 00:03:02,200 --> 00:03:05,280 Speaker 3: It's difficult to actually put a sort of input this 55 00:03:05,400 --> 00:03:08,360 Speaker 3: onto Boeing or GE because I mean, this aircraft has 56 00:03:08,360 --> 00:03:11,639 Speaker 3: been in service for over eleven years, almost twelve years, 57 00:03:11,800 --> 00:03:13,600 Speaker 3: so it's not a brand new aircraft that's just come 58 00:03:13,600 --> 00:03:16,239 Speaker 3: off fresh off the line from Boeing. So I mean 59 00:03:16,280 --> 00:03:18,639 Speaker 3: it is sort of far fetched to sort of pin 60 00:03:18,720 --> 00:03:21,920 Speaker 3: the blame on Boeing without sort of ascertaining the causes 61 00:03:21,960 --> 00:03:24,600 Speaker 3: of what happened and what went wrong. I mean, obviously 62 00:03:24,720 --> 00:03:28,320 Speaker 3: the investigation will determine what went wrong and who is 63 00:03:28,360 --> 00:03:31,680 Speaker 3: it fauld and if there was pilot error, if there 64 00:03:31,760 --> 00:03:34,160 Speaker 3: was any technical issue, if there was something wrong with 65 00:03:34,200 --> 00:03:37,160 Speaker 3: the plane or with the engines. But it's all still 66 00:03:37,200 --> 00:03:39,680 Speaker 3: too early to determine the cause of it, and so 67 00:03:40,200 --> 00:03:42,680 Speaker 3: it does seem to be an initial reaction, and we 68 00:03:42,720 --> 00:03:45,600 Speaker 3: will get more clarity on what really went wrong in 69 00:03:45,680 --> 00:03:48,280 Speaker 3: the days and months ahead as we sort of as 70 00:03:48,400 --> 00:03:51,880 Speaker 3: investigators sort of port through the flight data recorders, the 71 00:03:51,960 --> 00:03:55,600 Speaker 3: cockpit voice recorders and sort of pieced together, minute by minute, 72 00:03:55,640 --> 00:03:57,320 Speaker 3: second by second, what really went wrong. 73 00:03:57,880 --> 00:03:59,400 Speaker 4: All right, so thank you so much for joining us. 74 00:03:59,440 --> 00:04:03,400 Speaker 4: Really appreciate your reporting, said our Philip, deputy team leader 75 00:04:03,440 --> 00:04:06,760 Speaker 4: for Global Aviation Bloomberg News. He is based in London, 76 00:04:06,760 --> 00:04:09,960 Speaker 4: but who's reporting from our Paris bureau today. 77 00:04:11,840 --> 00:04:15,560 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 78 00:04:15,640 --> 00:04:18,680 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 79 00:04:18,720 --> 00:04:22,039 Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever 80 00:04:22,080 --> 00:04:25,200 Speaker 1: you get your podcasts, or watch us live on YouTube. 81 00:04:25,760 --> 00:04:29,080 Speaker 4: All right, let's talk inflation. Yesterday, Remember we had the 82 00:04:29,120 --> 00:04:31,360 Speaker 4: CPI data came out and it came in a little 83 00:04:31,880 --> 00:04:35,200 Speaker 4: less than expected, so we called that benign inflation, I 84 00:04:35,200 --> 00:04:37,640 Speaker 4: think was the term we used. As John's just mentioned, 85 00:04:37,640 --> 00:04:40,919 Speaker 4: we got the PPI out today, John characterized it as muted. 86 00:04:41,000 --> 00:04:43,839 Speaker 4: I'll go with that PPI final demand month the month 87 00:04:43,960 --> 00:04:46,679 Speaker 4: zero point one percent, consensus was zero point two percent. 88 00:04:46,680 --> 00:04:49,120 Speaker 4: And then if you annualize all this stuff and say 89 00:04:49,240 --> 00:04:53,360 Speaker 4: PPI X food, energy and trade year over year came 90 00:04:53,360 --> 00:04:56,440 Speaker 4: in a two point seven percent. Consensus was three percent. 91 00:04:56,520 --> 00:04:59,200 Speaker 4: So that's a pretty big beat, I would say. Jeffrey 92 00:04:59,240 --> 00:05:02,880 Speaker 4: Cleveland joins economists at Peyton and Regal out there in 93 00:05:03,279 --> 00:05:06,880 Speaker 4: l A. Jeffrey, what did you make of yesterday's CPI, 94 00:05:07,080 --> 00:05:09,440 Speaker 4: today's PPI what you call on inflation these days? 95 00:05:10,440 --> 00:05:13,240 Speaker 5: Well, Paul, not only was it benign for May, that's 96 00:05:13,240 --> 00:05:15,760 Speaker 5: four months in a row, So four months in a row, 97 00:05:15,800 --> 00:05:18,400 Speaker 5: after you know, a January hot start to the year, 98 00:05:18,960 --> 00:05:23,040 Speaker 5: CPI has been soft. I know the inflationistas listening are 99 00:05:23,040 --> 00:05:25,279 Speaker 5: going to say that, you know, just wait, just wait 100 00:05:25,320 --> 00:05:28,560 Speaker 5: another month and the tariff toll will will hit, and 101 00:05:28,600 --> 00:05:31,600 Speaker 5: that is possible. But I would point out that in 102 00:05:31,640 --> 00:05:34,440 Speaker 5: the day that we saw yesterday, it wasn't just that 103 00:05:34,520 --> 00:05:38,360 Speaker 5: goods prices were soft. Also services prices were soft, So 104 00:05:38,760 --> 00:05:40,800 Speaker 5: you know, housing free which are we all clear, but 105 00:05:40,880 --> 00:05:43,720 Speaker 5: also non housing services. I wouldn't say the all clear, Alex, 106 00:05:44,160 --> 00:05:46,679 Speaker 5: but I mean it's uh, we're getting there. We're getting 107 00:05:46,680 --> 00:05:49,320 Speaker 5: close to say it all clear. I think another another 108 00:05:49,400 --> 00:05:52,520 Speaker 5: couple of months, I'll declare the the all clear. I 109 00:05:52,560 --> 00:05:55,719 Speaker 5: think also with this morning's PPI, you throw that in 110 00:05:55,760 --> 00:05:58,920 Speaker 5: the mix. You can imagine a soft reading for core 111 00:05:59,080 --> 00:06:01,440 Speaker 5: PCEE when it comes out at the end of this month, 112 00:06:01,720 --> 00:06:03,839 Speaker 5: which is what the FED is more focused on, and 113 00:06:04,080 --> 00:06:05,839 Speaker 5: I think very good news for the central Bank and 114 00:06:05,920 --> 00:06:08,480 Speaker 5: for the bond market. So soft inflation. 115 00:06:08,160 --> 00:06:11,960 Speaker 4: Readings, So, Jeff, is it we're not necessarily seeing any 116 00:06:11,960 --> 00:06:15,160 Speaker 4: inflation in the numbers yet? Maybe we will in the future. 117 00:06:15,400 --> 00:06:18,880 Speaker 4: Is that a reflection of companies just kind of eating 118 00:06:18,960 --> 00:06:21,520 Speaker 4: the cost increases that they are experiencing, maybe taking in 119 00:06:21,600 --> 00:06:24,200 Speaker 4: the margin as opposed to passing them along to consumers. 120 00:06:24,960 --> 00:06:27,599 Speaker 5: That's a possibility, Paul, It's possible. We just haven't seen 121 00:06:27,640 --> 00:06:30,720 Speaker 5: the pass through yet. People are shifting their behaviors, people 122 00:06:30,800 --> 00:06:32,359 Speaker 5: are making up for it in other ways and not 123 00:06:32,400 --> 00:06:35,239 Speaker 5: passing it through into prices. I think all of those 124 00:06:35,279 --> 00:06:37,840 Speaker 5: are in the mix. I think one thing we've been 125 00:06:37,839 --> 00:06:41,080 Speaker 5: telling clients is that. Keep in mind, imported goods in 126 00:06:41,160 --> 00:06:44,800 Speaker 5: terms of the PCE index are six seven eight percent 127 00:06:44,839 --> 00:06:49,480 Speaker 5: of the index, so you could see potential price increases 128 00:06:49,520 --> 00:06:51,760 Speaker 5: on those goods, but you have to keep in mind 129 00:06:51,800 --> 00:06:54,360 Speaker 5: most of what you spend your money on, PAUL are 130 00:06:54,400 --> 00:06:57,359 Speaker 5: things like services, and those we still see scope for 131 00:06:57,440 --> 00:06:59,880 Speaker 5: services to continue to cool off, and certainly we saw 132 00:06:59,880 --> 00:07:02,479 Speaker 5: that in May, so that could outweigh some of the 133 00:07:02,880 --> 00:07:05,680 Speaker 5: tariff price increase. That's a good news. So I think 134 00:07:05,680 --> 00:07:07,080 Speaker 5: by the end of the year, so if you can 135 00:07:07,120 --> 00:07:10,600 Speaker 5: look out six months or so, I think inflation will 136 00:07:10,640 --> 00:07:13,200 Speaker 5: continue to moderate. Okay, So if. 137 00:07:13,080 --> 00:07:16,040 Speaker 2: We are in this disinflationary environment right now, well, actually, 138 00:07:16,080 --> 00:07:17,800 Speaker 2: would you categorize us as disinflation? 139 00:07:18,600 --> 00:07:18,760 Speaker 4: Oh? 140 00:07:18,840 --> 00:07:21,840 Speaker 5: Yeah, I mean we peaked in twenty twenty two at 141 00:07:21,840 --> 00:07:24,920 Speaker 5: a very high level on core inflation. It's been coming down. 142 00:07:25,160 --> 00:07:27,120 Speaker 5: It's been coming down slower than we would have hoped, 143 00:07:27,440 --> 00:07:30,400 Speaker 5: but it is disinflating. So I think we're definitely in 144 00:07:30,400 --> 00:07:32,040 Speaker 5: a disinflationary environment right now. 145 00:07:32,160 --> 00:07:34,720 Speaker 2: Yes, So if it's disinflationary, is that enough for the 146 00:07:34,760 --> 00:07:38,640 Speaker 2: FED to cut in July September predemptively? 147 00:07:39,480 --> 00:07:41,160 Speaker 5: I think you have to step back here. You put 148 00:07:41,200 --> 00:07:43,400 Speaker 5: yourselves in the shoes of the FED. You're at four 149 00:07:43,560 --> 00:07:46,360 Speaker 5: fifty on the funds rate. I would categorize that alex 150 00:07:46,480 --> 00:07:50,840 Speaker 5: as restrictive. So they have a restrictive policy setting. But 151 00:07:50,960 --> 00:07:53,320 Speaker 5: we know, we just talked about it. Inflation is cooling. 152 00:07:53,440 --> 00:07:56,360 Speaker 5: Disinflation and the other thing that you brought up earlier 153 00:07:56,400 --> 00:07:59,200 Speaker 5: on a segment which was wonderful, We are seeing a 154 00:07:59,240 --> 00:08:02,640 Speaker 5: slow down in the lake. So with that backdrop, I 155 00:08:02,640 --> 00:08:04,600 Speaker 5: think the next move from the Fed is a cut. 156 00:08:04,880 --> 00:08:07,520 Speaker 5: Question is what are they comfortable doing that. I don't 157 00:08:07,560 --> 00:08:10,120 Speaker 5: think it's likely next week, but I think the market 158 00:08:10,160 --> 00:08:14,120 Speaker 5: should start pricing in July, should start entertaining July. But 159 00:08:14,200 --> 00:08:17,800 Speaker 5: we think but by September guys will have some evidence 160 00:08:18,040 --> 00:08:19,720 Speaker 5: enough where they could possibly cut. 161 00:08:20,360 --> 00:08:23,160 Speaker 4: If that's the scenario, and inflation, you know, is not 162 00:08:23,240 --> 00:08:27,360 Speaker 4: necessarily a concern here or a big concern, what does 163 00:08:27,400 --> 00:08:29,800 Speaker 4: that do to your GDP? Look for the remainder of 164 00:08:30,040 --> 00:08:31,680 Speaker 4: this year, we. 165 00:08:31,600 --> 00:08:35,719 Speaker 5: Cut our GDP Paul after the tariff turmoil really broke 166 00:08:35,800 --> 00:08:39,360 Speaker 5: out starting February second. That Sunday afternoon, my team got 167 00:08:39,360 --> 00:08:41,680 Speaker 5: together and we cut our GDP. So we went down 168 00:08:41,760 --> 00:08:44,120 Speaker 5: to one percent for twenty twenty five Q four to 169 00:08:44,200 --> 00:08:47,640 Speaker 5: Q four we brought that actually up a little bit 170 00:08:47,920 --> 00:08:50,480 Speaker 5: in recent weeks, so we're around one point five percent 171 00:08:50,800 --> 00:08:53,280 Speaker 5: for the year. That's not a recession, Paul. I would 172 00:08:53,360 --> 00:08:58,400 Speaker 5: characterize that as subpar economic growth, so subtrend, but that 173 00:08:58,480 --> 00:09:02,040 Speaker 5: doesn't really change here with that with this disinflation story, 174 00:09:02,480 --> 00:09:04,240 Speaker 5: I think that that will be the case. We'll have 175 00:09:04,720 --> 00:09:08,880 Speaker 5: subpart growth, We'll avoid a recession, but we'll have disinflation. 176 00:09:08,960 --> 00:09:11,560 Speaker 5: That's good for bonds. I think you're especially the long 177 00:09:11,720 --> 00:09:14,920 Speaker 5: end of the treasury market is really been pushed up 178 00:09:14,920 --> 00:09:18,760 Speaker 5: by fears of the fiscal fears of inflation from tariffs, 179 00:09:19,080 --> 00:09:21,760 Speaker 5: and if all of that sort of fades, man bonds 180 00:09:21,800 --> 00:09:23,120 Speaker 5: look good. We have a good set up here for 181 00:09:23,160 --> 00:09:25,040 Speaker 5: the bond market over the second half of the year. 182 00:09:25,040 --> 00:09:29,280 Speaker 5: In my view, really deficits included in that. Yeah, I 183 00:09:29,320 --> 00:09:33,400 Speaker 5: mean the deficits, Alex. This is the most widely known 184 00:09:33,440 --> 00:09:36,800 Speaker 5: story on Earth, you know, talking to global clients for years, 185 00:09:37,360 --> 00:09:40,040 Speaker 5: they've been looking at the US budget deficit. It's huge. 186 00:09:40,320 --> 00:09:43,040 Speaker 5: I'm not denying that six or seven percent of GDP. 187 00:09:43,559 --> 00:09:45,800 Speaker 5: I don't think that's going to change next year with 188 00:09:45,520 --> 00:09:48,959 Speaker 5: the big beautiful budget bill, but I think that's priced in. 189 00:09:49,559 --> 00:09:51,480 Speaker 5: We see that in I think the slope of the 190 00:09:51,520 --> 00:09:54,920 Speaker 5: curve in turn premium that's been built into tens and 191 00:09:55,000 --> 00:09:57,800 Speaker 5: thirty year treasuries. So that's no, that's a known known. 192 00:09:58,640 --> 00:10:01,720 Speaker 5: I think as we move on beyond that, you know, 193 00:10:02,000 --> 00:10:04,160 Speaker 5: people are going to realize the real story here is, Okay, 194 00:10:04,160 --> 00:10:06,600 Speaker 5: what happens with growth and what happens with inflation that 195 00:10:06,640 --> 00:10:07,560 Speaker 5: will drive markets. 196 00:10:07,880 --> 00:10:10,840 Speaker 4: Hey, Jeffrey, I know you're in LA. You're an LA guy. 197 00:10:11,520 --> 00:10:13,280 Speaker 4: Give us a sense of what's happening out there. 198 00:10:14,280 --> 00:10:17,200 Speaker 5: Well, you know, I'm twenty five miles from downtown LA today, 199 00:10:17,200 --> 00:10:19,120 Speaker 5: as you can see here in the home office. Part 200 00:10:19,160 --> 00:10:21,560 Speaker 5: of that is because paid and regal offices are, you know, 201 00:10:21,600 --> 00:10:24,320 Speaker 5: in the heart of it, downtown Los Angeles, which enjoyed 202 00:10:24,360 --> 00:10:27,880 Speaker 5: such a great resurgence pre COVID. It was really a renaissance, 203 00:10:27,920 --> 00:10:30,560 Speaker 5: if you will. Yeah, people living and working down there. 204 00:10:30,600 --> 00:10:32,760 Speaker 5: So the events that we've seen in the last week 205 00:10:32,840 --> 00:10:36,320 Speaker 5: or so really unfortunate, causing a lot of uncertainty here 206 00:10:36,840 --> 00:10:39,280 Speaker 5: on the West Coast. I think as far as it 207 00:10:39,320 --> 00:10:42,160 Speaker 5: pertains to the economic data, I mean, the big thing 208 00:10:42,200 --> 00:10:45,520 Speaker 5: we're watching here, Paul, is the labor force. You saw 209 00:10:45,559 --> 00:10:49,320 Speaker 5: that actually in the May jobs report, labor force participation 210 00:10:49,720 --> 00:10:52,920 Speaker 5: went down. We like to look at the labor force flows, 211 00:10:53,240 --> 00:10:55,360 Speaker 5: so every month you can look at the number of 212 00:10:55,360 --> 00:10:58,240 Speaker 5: people that are going from being employed, for example, to 213 00:10:58,480 --> 00:11:01,640 Speaker 5: out of the labor force, and in May that number 214 00:11:01,920 --> 00:11:05,160 Speaker 5: was the biggest increase that we've seen outside of COVID 215 00:11:05,440 --> 00:11:08,559 Speaker 5: in the last twenty twenty five years. It could be retirements, 216 00:11:08,679 --> 00:11:11,880 Speaker 5: it could be people leaving the labor force for reasons other, 217 00:11:12,520 --> 00:11:15,040 Speaker 5: you know, than work related, maybe family related reasons. But 218 00:11:15,080 --> 00:11:17,360 Speaker 5: it could also be related to the immigration issues. So 219 00:11:17,360 --> 00:11:18,679 Speaker 5: I think we need to keep we need to keep 220 00:11:18,679 --> 00:11:21,760 Speaker 5: an eye on that because the labor force participation is 221 00:11:21,800 --> 00:11:23,600 Speaker 5: the key part of economic growth. 222 00:11:23,960 --> 00:11:26,160 Speaker 4: Jeffrey, thank you so much for joining us. Really appreciate 223 00:11:26,160 --> 00:11:29,199 Speaker 4: getting your time. Jeffrey Cleveland, Chief economists Payden and Regal 224 00:11:30,040 --> 00:11:33,200 Speaker 4: joining us via zoom from Los Angeles, where he is 225 00:11:33,400 --> 00:11:34,359 Speaker 4: a based. 226 00:11:36,679 --> 00:11:40,360 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 227 00:11:40,440 --> 00:11:43,839 Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto 228 00:11:43,920 --> 00:11:47,000 Speaker 1: with the Bloomberg Business App. Listen on demand wherever you 229 00:11:47,040 --> 00:11:50,040 Speaker 1: get your podcasts, or watch us live on YouTube. 230 00:11:50,559 --> 00:11:52,600 Speaker 4: We are live here in the Bloomberg Interactive Broker Studio 231 00:11:52,600 --> 00:11:56,160 Speaker 4: in New York. We are streaming live on YouTube as well. 232 00:11:56,400 --> 00:12:00,200 Speaker 4: All right, I'm looking at some Bloomberg reporting here, and 233 00:12:00,200 --> 00:12:04,160 Speaker 4: Donald Trump says he's intended to send letters to trading 234 00:12:04,160 --> 00:12:06,599 Speaker 4: partners in the next one to two weeks setting unilateral 235 00:12:06,679 --> 00:12:10,359 Speaker 4: tariff rates ahead of a July ninth deadline to reimpose 236 00:12:11,000 --> 00:12:14,319 Speaker 4: higher duties on dozens of economies. So sending out letters. 237 00:12:14,360 --> 00:12:16,120 Speaker 4: I'm not sure what that means, but I guess do 238 00:12:16,240 --> 00:12:19,920 Speaker 4: I watch mine? Dear sir, maam exactly to whom it 239 00:12:20,000 --> 00:12:22,960 Speaker 4: may concern, we're raising your things. Nathan Dean, he knows 240 00:12:23,000 --> 00:12:24,680 Speaker 4: the stuff because we pay him to know this stuff. 241 00:12:24,760 --> 00:12:29,000 Speaker 4: Nathan Dean, Bloomberg Intelligence senior policy analysts. Nathan, just give 242 00:12:29,080 --> 00:12:31,560 Speaker 4: us your latest kind of over you of where we 243 00:12:31,600 --> 00:12:35,839 Speaker 4: are on these tariffs here in little I guess context. 244 00:12:37,200 --> 00:12:39,240 Speaker 6: Yeah, what I would say is, there's really two phrases 245 00:12:39,280 --> 00:12:41,640 Speaker 6: we're saying at the moment. The first is uncertainty. And look, 246 00:12:41,640 --> 00:12:43,559 Speaker 6: if you're in the markets, this isn't a new word, 247 00:12:43,679 --> 00:12:46,360 Speaker 6: you know. The uncertainty is the year for is the 248 00:12:46,360 --> 00:12:48,560 Speaker 6: word for twenty twenty five. But I would also use 249 00:12:48,600 --> 00:12:51,440 Speaker 6: the phrase status quo because even though President Trump said 250 00:12:51,520 --> 00:12:54,079 Speaker 6: yesterday that he's going to send those letters out, and 251 00:12:54,160 --> 00:12:56,520 Speaker 6: for what it's worth, that's a much easier way than 252 00:12:56,559 --> 00:12:59,319 Speaker 6: going to the Rose Garden and holding up a little 253 00:12:59,360 --> 00:12:59,719 Speaker 6: card that. 254 00:12:59,679 --> 00:13:02,280 Speaker 4: Says caclates, you know. 255 00:13:02,559 --> 00:13:04,240 Speaker 6: I think what we're going to see is we saw 256 00:13:04,240 --> 00:13:06,720 Speaker 6: some reporting from Bloomberg News just last night that President 257 00:13:06,760 --> 00:13:09,600 Speaker 6: Trump was also talking about extending this. So I think 258 00:13:09,640 --> 00:13:12,560 Speaker 6: the current idea here is is that you're going to 259 00:13:12,559 --> 00:13:15,920 Speaker 6: have a situation where you have President Trump going out 260 00:13:15,960 --> 00:13:19,640 Speaker 6: there and making threats or making statements that raises headline risk. 261 00:13:19,920 --> 00:13:22,320 Speaker 6: But subsequently you're also going to have this idea that 262 00:13:22,360 --> 00:13:24,440 Speaker 6: we're just going to try and keep the status quo 263 00:13:24,559 --> 00:13:26,880 Speaker 6: because we don't want to rock the markets. And so 264 00:13:27,000 --> 00:13:28,920 Speaker 6: I think you are going to see some examples. I 265 00:13:29,000 --> 00:13:31,680 Speaker 6: think President Trump may pick on a couple of countries 266 00:13:31,800 --> 00:13:35,200 Speaker 6: or the European Union in particular, to try and raise 267 00:13:35,600 --> 00:13:37,880 Speaker 6: a renewed threat or a headline risk in order to 268 00:13:37,880 --> 00:13:40,760 Speaker 6: just spur negotiations. But I think for the next three 269 00:13:40,800 --> 00:13:42,800 Speaker 6: to six months, the markets are going to face this 270 00:13:42,920 --> 00:13:46,440 Speaker 6: on this status quo of a ten percent baseline plus 271 00:13:46,480 --> 00:13:50,480 Speaker 6: an extension or plus an exemption, or plus a certain 272 00:13:50,480 --> 00:13:53,200 Speaker 6: additional threshold like we saw with the China agreement and 273 00:13:53,280 --> 00:13:55,640 Speaker 6: that should probably stick through the third quarter. 274 00:13:56,280 --> 00:13:59,000 Speaker 2: Are these agreements, Emily, we're just looking at China in 275 00:13:59,040 --> 00:14:01,960 Speaker 2: the UK, are they actually different or are they just 276 00:14:02,040 --> 00:14:04,600 Speaker 2: kind of circling back to where we were before all 277 00:14:04,640 --> 00:14:06,080 Speaker 2: of this trauma unfolded here. 278 00:14:06,840 --> 00:14:09,199 Speaker 6: Well, so the China one is mostly status quote from 279 00:14:09,200 --> 00:14:11,640 Speaker 6: where we were before, But the UK agreement was different 280 00:14:11,720 --> 00:14:15,600 Speaker 6: because the United Kingdom didn't have a trade deficit with 281 00:14:15,640 --> 00:14:17,880 Speaker 6: the United States like other certain countries do. So the 282 00:14:17,920 --> 00:14:20,400 Speaker 6: base case scenario that you should be looking at is 283 00:14:20,440 --> 00:14:23,000 Speaker 6: a ten percent minimum tariff on every country. 284 00:14:23,040 --> 00:14:24,480 Speaker 5: I mean, look, you know. 285 00:14:24,400 --> 00:14:26,680 Speaker 6: We heard Treasury Secretary Scott Besson say if they don't 286 00:14:26,720 --> 00:14:29,000 Speaker 6: have any trade, you know, tariff's on us, we're not 287 00:14:29,000 --> 00:14:30,960 Speaker 6: going to have tariffs on them. But this idea of 288 00:14:31,000 --> 00:14:33,880 Speaker 6: a ten percent baseline is something that's usually sticking around at. 289 00:14:33,840 --> 00:14:34,440 Speaker 5: The White House. 290 00:14:35,200 --> 00:14:39,400 Speaker 6: But then you're also going to see exemptions for example, automobiles, technology. 291 00:14:39,480 --> 00:14:41,400 Speaker 6: Anybody that can get into the White House is going 292 00:14:41,440 --> 00:14:45,000 Speaker 6: to be pushing for President Trump to offer exemptions. And 293 00:14:45,040 --> 00:14:46,840 Speaker 6: we just go back to this idea that if you 294 00:14:46,920 --> 00:14:50,880 Speaker 6: are going to see sectors that impact consumer prices, so 295 00:14:51,000 --> 00:14:54,920 Speaker 6: think of things like Apple, MacBooks or Amazon or you know, Walmart, 296 00:14:54,920 --> 00:14:58,280 Speaker 6: Like Treasury Secretary Scott Bessont was just getting pushed about 297 00:14:58,280 --> 00:15:00,520 Speaker 6: in the Senate Finance Committee, and you are going to 298 00:15:00,520 --> 00:15:03,520 Speaker 6: see exemptions, but then there are going to be additional 299 00:15:03,720 --> 00:15:06,600 Speaker 6: you know, tariffs for other countries. But we should say 300 00:15:06,600 --> 00:15:08,920 Speaker 6: that a lot of this depends on negotiations. Bloomberg News 301 00:15:08,960 --> 00:15:11,920 Speaker 6: reported just twenty minutes ago that Prime Minister Mark Karney 302 00:15:11,920 --> 00:15:14,720 Speaker 6: said the US Canada's going well. They reported last night 303 00:15:14,720 --> 00:15:17,640 Speaker 6: that negotiations with India weren't going so well, so that 304 00:15:17,760 --> 00:15:20,840 Speaker 6: idea for examples to be made before July ninth could 305 00:15:20,840 --> 00:15:21,360 Speaker 6: come about. 306 00:15:22,600 --> 00:15:26,000 Speaker 4: Okay, I guess we'll just we just keep in touch 307 00:15:26,080 --> 00:15:29,200 Speaker 4: with some skepticism. But it feels like we're going to 308 00:15:29,240 --> 00:15:31,280 Speaker 4: get to a spot kind of where we did last time, 309 00:15:31,280 --> 00:15:32,760 Speaker 4: which is, at the end of the day, it's a 310 00:15:32,800 --> 00:15:35,520 Speaker 4: lot about nothing, you know, and I think the markets, 311 00:15:35,680 --> 00:15:38,560 Speaker 4: certainly the equity markets might be pricing that in with 312 00:15:38,920 --> 00:15:43,000 Speaker 4: the rebound here all right, Nathan, for the adults in 313 00:15:43,000 --> 00:15:45,400 Speaker 4: the room here, what's the next thing from DC we 314 00:15:45,400 --> 00:15:46,880 Speaker 4: should be focusing on here? 315 00:15:47,840 --> 00:15:49,560 Speaker 6: So the number one question we've been getting from our 316 00:15:49,560 --> 00:15:52,600 Speaker 6: clients just this morning is when is the Senate Finance 317 00:15:52,600 --> 00:15:56,840 Speaker 6: Committee going to release its legislation or its text President 318 00:15:56,880 --> 00:15:58,680 Speaker 6: Trump's One Big, Beautiful Bill. So if you are an 319 00:15:58,720 --> 00:16:01,200 Speaker 6: equity investor in your you know, exposed to the solar 320 00:16:01,240 --> 00:16:03,920 Speaker 6: industry or the winds industry, this is very important to 321 00:16:03,960 --> 00:16:07,440 Speaker 6: you because Senator Crape out just last night was saying 322 00:16:07,520 --> 00:16:10,640 Speaker 6: that things like certain text credits should be phased out earlier, 323 00:16:11,480 --> 00:16:13,680 Speaker 6: and we think he was hitting at solar and wind 324 00:16:14,080 --> 00:16:17,160 Speaker 6: and others would be extended, which was nuclear and geothermal. 325 00:16:17,280 --> 00:16:19,960 Speaker 6: Now obviously we're still waiting for that text. Now. I 326 00:16:19,960 --> 00:16:22,400 Speaker 6: think that text is going to come after market clothes 327 00:16:22,400 --> 00:16:24,760 Speaker 6: on Friday. I think it's going to come Saturday or Sunday. 328 00:16:24,760 --> 00:16:28,000 Speaker 6: But keep your eyes out because there is this potential 329 00:16:28,040 --> 00:16:29,880 Speaker 6: for some what I you know, I used to say 330 00:16:29,880 --> 00:16:32,440 Speaker 6: marijuana stocks have hot sauce. Now I say the solar 331 00:16:32,480 --> 00:16:34,840 Speaker 6: stocks they have hot sauce. So these things move around, 332 00:16:35,160 --> 00:16:37,000 Speaker 6: So definitely keep your eyes out for that. That's probably 333 00:16:37,040 --> 00:16:39,880 Speaker 6: the next major catalyst you're going to see coming from Washington, is. 334 00:16:39,800 --> 00:16:42,120 Speaker 2: That like a hot sauce reference is a good thing 335 00:16:42,200 --> 00:16:45,200 Speaker 2: or a bad thing or just spicy, just stuff spicy. 336 00:16:45,760 --> 00:16:48,000 Speaker 6: I stole it from our friends over in the ETF space. 337 00:16:48,200 --> 00:16:51,720 Speaker 2: Okay, no, fair enough, because a solar sector is just 338 00:16:52,560 --> 00:16:55,640 Speaker 2: really in a mess based on when the tax credits 339 00:16:56,080 --> 00:16:58,200 Speaker 2: land when it comes out of the Senate. 340 00:16:58,560 --> 00:16:59,880 Speaker 5: Do you think the timeline still works? 341 00:17:00,960 --> 00:17:01,240 Speaker 1: I do. 342 00:17:01,360 --> 00:17:03,280 Speaker 6: I think, you know, obviously the Senators want to have 343 00:17:03,280 --> 00:17:06,520 Speaker 6: all this legislation out in the public arena before Juneteenth. 344 00:17:06,600 --> 00:17:08,440 Speaker 6: Next week they're going away for a couple of days, 345 00:17:08,760 --> 00:17:11,080 Speaker 6: and I think the Senate can eventually get there. They 346 00:17:11,080 --> 00:17:13,920 Speaker 6: seem to be a little bit more i'd say on board. 347 00:17:13,960 --> 00:17:16,480 Speaker 6: There's still major questions about the deficit, getting the ram 348 00:17:16,560 --> 00:17:19,600 Speaker 6: Pauls on the dead ceiling, and you know the other 349 00:17:19,720 --> 00:17:22,879 Speaker 6: senators Ron Johnson's if you will, on board. But I 350 00:17:22,920 --> 00:17:24,560 Speaker 6: think they can get there by the fourth of July, 351 00:17:24,680 --> 00:17:27,000 Speaker 6: or maybe even after the fourth of July. We still 352 00:17:27,040 --> 00:17:29,280 Speaker 6: are thinking at eighty percent chance this gets done before 353 00:17:29,320 --> 00:17:31,560 Speaker 6: the August recess, all right. 354 00:17:31,600 --> 00:17:33,760 Speaker 4: I mean those recesses are actually a good incentive to 355 00:17:33,800 --> 00:17:37,080 Speaker 4: get stuff like deadlines. Yes, so it's good, all right. 356 00:17:37,119 --> 00:17:40,200 Speaker 4: Nathan appreciate it as always, Nathan Dean, he is our 357 00:17:40,240 --> 00:17:43,960 Speaker 4: go to person in DC to explain all the craziness 358 00:17:43,960 --> 00:17:46,080 Speaker 4: down there in terms of the policies. Nathan Dean senior 359 00:17:46,080 --> 00:17:50,119 Speaker 4: policy analysts Bloomberg Intelligence. He's down on our DC bureau. 360 00:17:52,280 --> 00:17:55,960 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 361 00:17:56,040 --> 00:17:59,400 Speaker 1: weekdays at ten am Eastern on Applecarclay and Android Otto 362 00:17:59,520 --> 00:18:02,600 Speaker 1: with the Work Business app. Listen on demand wherever you 363 00:18:02,640 --> 00:18:05,640 Speaker 1: get your podcasts, or watch us live on YouTube. 364 00:18:06,359 --> 00:18:09,080 Speaker 2: Happy Thursday, everybody. Alex still here alongside Paul Sweeney. This 365 00:18:09,400 --> 00:18:12,080 Speaker 2: is Bloomberg Intelligence Radio. We are broadcasting to live from 366 00:18:12,119 --> 00:18:16,040 Speaker 2: Interactive Broker Studio right here in Midtown Manhattan. So June 367 00:18:16,160 --> 00:18:18,160 Speaker 2: is Pride Month. So over the next couple weeks we're 368 00:18:18,160 --> 00:18:21,359 Speaker 2: going to highlight segments on topics related to equality. And 369 00:18:21,400 --> 00:18:24,000 Speaker 2: today we're speaking with Laura Maudy, a CEO and co 370 00:18:24,080 --> 00:18:27,520 Speaker 2: founder of Bobby Now. Bobby is the only mom founded 371 00:18:27,520 --> 00:18:30,399 Speaker 2: and lead pediatric nutrition company in the US and the 372 00:18:30,440 --> 00:18:34,840 Speaker 2: third largest fully integrated infant formula manufacturer in the country. Laura, 373 00:18:34,960 --> 00:18:36,919 Speaker 2: we remember speaking to you over the pandemic when there 374 00:18:36,920 --> 00:18:41,840 Speaker 2: were shortages of things like infant formula. What is first 375 00:18:41,880 --> 00:18:44,040 Speaker 2: and foremost on your radar right now, like the biggest 376 00:18:44,160 --> 00:18:45,800 Speaker 2: struggle that you have right now? 377 00:18:47,560 --> 00:18:48,960 Speaker 7: Lovely to chat with you guys again. 378 00:18:49,080 --> 00:18:52,280 Speaker 8: Hello, I am the biggest struggle I think right now 379 00:18:52,400 --> 00:18:55,520 Speaker 8: is you know, you'll remember the infant formula shortage in 380 00:18:55,520 --> 00:19:00,359 Speaker 8: twenty twenty two. There has been a very concentrated effort 381 00:19:00,480 --> 00:19:03,879 Speaker 8: to make sure that we diversify and break up the 382 00:19:03,960 --> 00:19:07,240 Speaker 8: concentrated market, and the only way to do that is 383 00:19:07,280 --> 00:19:11,040 Speaker 8: to invest in more domestic manufacturing. I think the last 384 00:19:11,040 --> 00:19:13,520 Speaker 8: time I spoke to you guys, I mentioned that we 385 00:19:13,600 --> 00:19:18,640 Speaker 8: have co created a bill that really allows and incentivizes 386 00:19:18,720 --> 00:19:21,840 Speaker 8: more domestic manufacturing for infant formula, and right now that 387 00:19:22,000 --> 00:19:24,160 Speaker 8: is the number one focus. 388 00:19:24,000 --> 00:19:27,840 Speaker 4: The Infant Formula Made in America Act of twenty twenty five. 389 00:19:28,280 --> 00:19:29,080 Speaker 4: Talk to us about that. 390 00:19:30,400 --> 00:19:33,400 Speaker 8: So again, like I said, this is on the back 391 00:19:33,440 --> 00:19:36,280 Speaker 8: of the shortage, and what we recognized was nothing will 392 00:19:36,359 --> 00:19:39,000 Speaker 8: change if nothing changes when it comes to the footprint 393 00:19:39,040 --> 00:19:45,200 Speaker 8: of infant formula manufacturing. So this bill incentivizes new players 394 00:19:45,480 --> 00:19:50,359 Speaker 8: to up level and to break ground and build infant 395 00:19:50,359 --> 00:19:52,520 Speaker 8: formula manufacturing here in the US. 396 00:19:53,359 --> 00:19:55,440 Speaker 2: Is it How expensive is it? 397 00:19:55,440 --> 00:19:56,480 Speaker 7: It's very expensive. 398 00:19:56,840 --> 00:20:00,920 Speaker 8: It's very expensive, but maybe nothing like other other investments 399 00:20:00,960 --> 00:20:04,080 Speaker 8: that are being made right now in manufacturing. It takes 400 00:20:04,080 --> 00:20:07,280 Speaker 8: around three years and it could be anywhere from you know, 401 00:20:07,359 --> 00:20:10,200 Speaker 8: sixty to one hundred and fifty million dollars to get 402 00:20:10,200 --> 00:20:13,760 Speaker 8: a basic footprint in place, and sometimes even more, and 403 00:20:14,200 --> 00:20:16,440 Speaker 8: given how long it takes to be able to get 404 00:20:16,440 --> 00:20:20,240 Speaker 8: more manufacturing up and running, this is why we can't 405 00:20:20,240 --> 00:20:21,280 Speaker 8: wait for another crisis. 406 00:20:21,320 --> 00:20:24,360 Speaker 7: The investments have to happen now. And what this. 407 00:20:24,440 --> 00:20:29,280 Speaker 8: Bill is is and it's finally gotten bipartisan support. I 408 00:20:29,359 --> 00:20:33,679 Speaker 8: don't actually believe there's anything more bipartisan than investing in 409 00:20:33,720 --> 00:20:36,880 Speaker 8: how our next generation is fed and building the resiliency 410 00:20:36,880 --> 00:20:39,960 Speaker 8: of this market. I am just hoping that this bill 411 00:20:40,040 --> 00:20:44,120 Speaker 8: gets introduced as something that gets passed sooner rather than later. 412 00:20:45,440 --> 00:20:49,320 Speaker 4: Just remind us, Lara, where do Americas Where do we 413 00:20:49,359 --> 00:20:52,200 Speaker 4: source most of our infant formula these days? 414 00:20:52,600 --> 00:20:57,320 Speaker 8: Yeah, look, most of it, most of it is sourced domestically. 415 00:20:58,520 --> 00:21:02,280 Speaker 7: But what we did do is that we allowed. 416 00:21:01,880 --> 00:21:05,640 Speaker 8: Some international formulas, some foreign formulas come into the country. 417 00:21:05,320 --> 00:21:07,199 Speaker 7: On the back of the shortage. 418 00:21:07,400 --> 00:21:10,720 Speaker 8: We essentially have imported our way out of a crisis, 419 00:21:11,160 --> 00:21:14,800 Speaker 8: and that is still happening. So over the last few years, 420 00:21:14,800 --> 00:21:17,560 Speaker 8: we've gone from less than one percent of infant formula 421 00:21:17,680 --> 00:21:20,720 Speaker 8: being made and sourced in the US to now over 422 00:21:20,880 --> 00:21:24,640 Speaker 8: ten percent of American babies are relying on formula coming 423 00:21:24,680 --> 00:21:27,720 Speaker 8: in from overseas, And the big push that I'm trying 424 00:21:27,760 --> 00:21:31,080 Speaker 8: to have is high quality formula should be able to 425 00:21:31,119 --> 00:21:34,680 Speaker 8: be sourced and made here at America for American babies. 426 00:21:35,280 --> 00:21:38,840 Speaker 2: Yes, but because it's expensive to say, build the plans here, etc. 427 00:21:39,359 --> 00:21:41,399 Speaker 2: Can we get that at a price point where like 428 00:21:41,480 --> 00:21:44,439 Speaker 2: you can stand business and make money, but also it 429 00:21:44,440 --> 00:21:47,040 Speaker 2: can be available to all different types of families. 430 00:21:48,200 --> 00:21:50,399 Speaker 8: The push I would have on that is it takes 431 00:21:50,440 --> 00:21:53,120 Speaker 8: more than the private sector to be able to make 432 00:21:53,160 --> 00:21:56,840 Speaker 8: that happen. And we're talking about infant formula. This is 433 00:21:56,880 --> 00:21:59,640 Speaker 8: where we need something like this bill to be put 434 00:21:59,680 --> 00:22:03,359 Speaker 8: in place to help bring down the costs. Because what 435 00:22:03,400 --> 00:22:06,399 Speaker 8: they are is it's a production tax credit, which means 436 00:22:06,400 --> 00:22:09,280 Speaker 8: that for every can, for every production run we make, 437 00:22:09,359 --> 00:22:12,280 Speaker 8: there's tax credits given back so that we can bring 438 00:22:12,320 --> 00:22:15,120 Speaker 8: those costs down. And it's really important that we make 439 00:22:15,200 --> 00:22:19,560 Speaker 8: those investments today. Otherwise what we're doing is we're waiving 440 00:22:19,600 --> 00:22:22,760 Speaker 8: the white flag as a country and saying America is 441 00:22:22,800 --> 00:22:24,920 Speaker 8: unable to do it, so we're going to allow other 442 00:22:25,000 --> 00:22:28,879 Speaker 8: countries to feed our babies. Fast forward in seven ten years, 443 00:22:29,000 --> 00:22:31,440 Speaker 8: we could be in a much bigger crisis if we're 444 00:22:31,440 --> 00:22:33,280 Speaker 8: relying on other countries to feed our babies. 445 00:22:33,680 --> 00:22:37,280 Speaker 4: Lar, just give us the latest updates for your company, Bobby. 446 00:22:38,560 --> 00:22:41,959 Speaker 8: Well, we've been pushing a lot of innovation. I think 447 00:22:42,320 --> 00:22:44,040 Speaker 8: the one thing we can't lose sight of is that 448 00:22:44,119 --> 00:22:47,720 Speaker 8: the quality of infant formula deserves its utmost attention on 449 00:22:47,720 --> 00:22:51,879 Speaker 8: an ongoing basis. So we recently launched the first USDA 450 00:22:52,119 --> 00:22:56,000 Speaker 8: organic whole milk infant formula made at our facility in Ohio, 451 00:22:56,440 --> 00:22:59,520 Speaker 8: and we're going to keep watching the way science evolves, 452 00:22:59,640 --> 00:23:02,840 Speaker 8: and when the scientists say that there's new updates that 453 00:23:02,880 --> 00:23:04,960 Speaker 8: need to happen, we're going to be making those changes 454 00:23:05,560 --> 00:23:09,200 Speaker 8: to our product. And my entire focus as a mother 455 00:23:09,480 --> 00:23:13,679 Speaker 8: is to keep innovating and up leveling the nutritional requirements 456 00:23:13,680 --> 00:23:15,840 Speaker 8: of formula for American babies. 457 00:23:16,040 --> 00:23:17,520 Speaker 2: Do you a want of competition right now? 458 00:23:21,080 --> 00:23:24,959 Speaker 7: There is competition. There is competition, and it's healthy competition. 459 00:23:24,880 --> 00:23:28,800 Speaker 8: Because we need we need choice, and this is probably 460 00:23:28,880 --> 00:23:33,600 Speaker 8: one of the only products in the market that doesn't 461 00:23:33,640 --> 00:23:36,439 Speaker 8: have enough options. It doesn't have enough choice, and I 462 00:23:36,480 --> 00:23:38,800 Speaker 8: believe I speak for many parents that when you walk 463 00:23:38,840 --> 00:23:43,200 Speaker 8: down the formula aisle of a retailer today's it can 464 00:23:43,280 --> 00:23:45,679 Speaker 8: often be an empty sad and lonely aisle. 465 00:23:46,280 --> 00:23:49,320 Speaker 7: But you're feeding your babies and it shouldn't be so. 466 00:23:49,560 --> 00:23:51,560 Speaker 8: I believe and I hope that with something like the 467 00:23:51,560 --> 00:23:55,639 Speaker 8: Domestic Manufacturing Bill, it actually introduces more competition. We need 468 00:23:55,680 --> 00:23:58,520 Speaker 8: to see more Bobbies on shelf, and that competition will 469 00:23:58,560 --> 00:24:00,800 Speaker 8: force all of us to up level standards we need. 470 00:24:01,200 --> 00:24:02,960 Speaker 2: All Right, Laura, thanks lot, really appreciate it. 471 00:24:02,960 --> 00:24:03,280 Speaker 5: Good luck. 472 00:24:03,320 --> 00:24:06,960 Speaker 2: Laura Moudy, CEO and co founder of Bobby Infant, formula 473 00:24:07,520 --> 00:24:09,680 Speaker 2: maker here in the United States. 474 00:24:10,320 --> 00:24:15,000 Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify, 475 00:24:15,200 --> 00:24:18,680 Speaker 1: and anywhere else you get your podcasts. 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