1 00:00:02,920 --> 00:00:10,840 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,840 --> 00:00:15,000 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:15,040 --> 00:00:17,520 Speaker 1: Eastern on Apple car Playing and Broid Auto with the 4 00:00:17,520 --> 00:00:21,400 Speaker 1: Bloomberg Business app. Listen on demand wherever you get your podcasts, 5 00:00:21,640 --> 00:00:24,000 Speaker 1: or watch us live on YouTube. 6 00:00:25,000 --> 00:00:27,920 Speaker 2: All right, Well, long term investors in and observers of 7 00:00:28,040 --> 00:00:30,880 Speaker 2: Apple know that a big part of the story is 8 00:00:30,960 --> 00:00:35,200 Speaker 2: product refreshes. New products. The newest versions of the iPads 9 00:00:35,200 --> 00:00:37,199 Speaker 2: and the iPhones and the watches and all the kind 10 00:00:37,200 --> 00:00:39,919 Speaker 2: of stuff is important for this company. And Apple had 11 00:00:39,920 --> 00:00:44,240 Speaker 2: an event today where they unveiled some new iPads. So questions, 12 00:00:44,479 --> 00:00:46,479 Speaker 2: is it time to upgrade your iPad? Man Deep sing 13 00:00:46,600 --> 00:00:49,320 Speaker 2: Joints is here. He covers all the technology stuff for 14 00:00:49,440 --> 00:00:53,640 Speaker 2: Bloomberg Intelligence. Man Deep, I'm you know, looking at Apple 15 00:00:53,680 --> 00:00:56,120 Speaker 2: shares up about half a percent. Talk to us about 16 00:00:56,320 --> 00:01:00,360 Speaker 2: the new upgraded iPad. How what is it and how 17 00:01:00,360 --> 00:01:03,840 Speaker 2: important is it to the company these days? Yeah? 18 00:01:03,880 --> 00:01:06,919 Speaker 3: I mean, look, iPad line is about a high single 19 00:01:06,959 --> 00:01:11,440 Speaker 3: digit contributor to their overall revenue, so not as big 20 00:01:11,480 --> 00:01:15,399 Speaker 3: as the iPhone of course, but clearly you know they 21 00:01:15,400 --> 00:01:19,520 Speaker 3: are trying to put their latest chip in the iPad. 22 00:01:20,000 --> 00:01:25,440 Speaker 3: They showcase a new keyboard for the iPad, and there 23 00:01:25,440 --> 00:01:29,600 Speaker 3: were other battery announcements new all at display. So all 24 00:01:29,640 --> 00:01:32,880 Speaker 3: these are cool, but fundamentally you have to ask yourself, 25 00:01:33,600 --> 00:01:37,040 Speaker 3: is it, you know, worth to upgrade to a new 26 00:01:37,080 --> 00:01:40,200 Speaker 3: iPad with all these incremental features as I would like 27 00:01:40,240 --> 00:01:44,040 Speaker 3: to call And that's where I think the market is 28 00:01:44,080 --> 00:01:47,080 Speaker 3: anticipating more along the lines of what can you show 29 00:01:47,160 --> 00:01:51,160 Speaker 3: me in terms of AI and the wow factor around LLMS? 30 00:01:51,400 --> 00:01:54,400 Speaker 3: And I think that's what was missing at the event. 31 00:01:54,680 --> 00:01:56,800 Speaker 4: Well what could they show? I mean, when we talk 32 00:01:56,840 --> 00:02:00,840 Speaker 4: about AI and Apple, what do we think about Because 33 00:02:01,640 --> 00:02:04,760 Speaker 4: Mark German says that this is an AI focused pro model, 34 00:02:04,840 --> 00:02:08,920 Speaker 4: So I'm wondering, apart from the chip, what about it 35 00:02:09,000 --> 00:02:10,160 Speaker 4: is AI? 36 00:02:11,880 --> 00:02:15,000 Speaker 3: It's at the app level. So that's why that operating 37 00:02:15,040 --> 00:02:18,360 Speaker 3: system upgrade. And they did talk about the iOS eighteen. 38 00:02:18,960 --> 00:02:22,880 Speaker 3: Look right now, the current version of my iPad, which 39 00:02:22,919 --> 00:02:26,400 Speaker 3: is five generations behind what they launch, can run the 40 00:02:26,480 --> 00:02:30,120 Speaker 3: latest version of the iOS operating system. So why do 41 00:02:30,240 --> 00:02:32,400 Speaker 3: I need to upgrade? They have to give me a 42 00:02:32,440 --> 00:02:36,280 Speaker 3: reason to upgrade to the latest iPad because my current 43 00:02:36,400 --> 00:02:39,480 Speaker 3: version can't run the operating system and it's got some 44 00:02:39,639 --> 00:02:43,840 Speaker 3: cool apps. That is what was missing, Like what functionality 45 00:02:43,880 --> 00:02:48,360 Speaker 3: can you show me around Siri, around image editing, around summaries, 46 00:02:48,800 --> 00:02:51,200 Speaker 3: like all the cool stuff that we talk about from 47 00:02:51,280 --> 00:02:55,720 Speaker 3: Nvidia at the data center level. That's what a small 48 00:02:55,880 --> 00:02:57,959 Speaker 3: kind of version of it is what you want to 49 00:02:58,040 --> 00:03:01,280 Speaker 3: run on device instead of going to the cloud. And 50 00:03:01,800 --> 00:03:04,120 Speaker 3: that's what they got to showcase in terms of why 51 00:03:04,160 --> 00:03:05,919 Speaker 3: you need to upgrade to the latest hardware. 52 00:03:06,040 --> 00:03:10,240 Speaker 4: Okay, so Paul, this is not our first rodeo. You 53 00:03:10,280 --> 00:03:12,920 Speaker 4: and I have anchored before, and one thing that's different 54 00:03:13,840 --> 00:03:16,400 Speaker 4: than versus a few years ago. When I would walk 55 00:03:16,440 --> 00:03:19,000 Speaker 4: in here, you would have an iPad next to you. Yep, 56 00:03:19,080 --> 00:03:21,799 Speaker 4: And the iPad you told me, was like a really 57 00:03:21,840 --> 00:03:23,800 Speaker 4: big part of how you prepared for the show. Use 58 00:03:23,800 --> 00:03:26,400 Speaker 4: the Boomberg terminal on the iPad. You also have the 59 00:03:26,440 --> 00:03:29,600 Speaker 4: two screens for the terminal. You have no iPad anymore? Nope, 60 00:03:29,680 --> 00:03:30,000 Speaker 4: why not? 61 00:03:30,760 --> 00:03:33,280 Speaker 2: I still have the iPad, although it's probably the original version, 62 00:03:33,320 --> 00:03:34,440 Speaker 2: but now everything's on the phone. 63 00:03:35,120 --> 00:03:37,160 Speaker 4: So your phone has replaced your iPad absolutely. 64 00:03:37,160 --> 00:03:40,520 Speaker 2: And I have a very long train ride every day 65 00:03:40,560 --> 00:03:43,760 Speaker 2: which I need a very engaging device, and. 66 00:03:44,240 --> 00:03:46,440 Speaker 4: Your phone is that it's not the iPad. So man, deep. 67 00:03:46,480 --> 00:03:47,960 Speaker 4: How big of a problem is that for Apple? 68 00:03:49,360 --> 00:03:52,640 Speaker 3: I mean, look in their case, some of their newer 69 00:03:52,680 --> 00:03:56,280 Speaker 3: products do cannibalize. You know, if the iPad is very good, 70 00:03:56,320 --> 00:03:58,960 Speaker 3: it's going to cannibalize the max Hills, and if the 71 00:03:59,040 --> 00:04:02,680 Speaker 3: iPhone is very it's going to cannibalize the iPad sales. 72 00:04:02,760 --> 00:04:05,320 Speaker 3: So that's always been the case. But it's still a 73 00:04:05,440 --> 00:04:09,720 Speaker 3: very sticky operating system and you know, just ecosystem overall. 74 00:04:10,120 --> 00:04:13,000 Speaker 3: The only problem that I think people are trying to 75 00:04:13,040 --> 00:04:16,440 Speaker 3: grapple with here is what is the refresh cycle? Because 76 00:04:16,520 --> 00:04:20,040 Speaker 3: right now, the refresh cycle continues to get longer and longer. 77 00:04:20,080 --> 00:04:21,880 Speaker 3: It's not as if, you know, people are moving out 78 00:04:21,880 --> 00:04:25,839 Speaker 3: of the ecosystem, but they're not gaining more Android users 79 00:04:26,320 --> 00:04:29,039 Speaker 3: because they don't have the best looking phones or the 80 00:04:29,080 --> 00:04:33,200 Speaker 3: best features that Android phones can offer. And so that 81 00:04:33,400 --> 00:04:36,240 Speaker 3: is the part that is hurting their refresh rate and 82 00:04:36,360 --> 00:04:39,000 Speaker 3: also the share gain from Android users. 83 00:04:41,360 --> 00:04:45,000 Speaker 2: June meeting, their developer meeting, anything on the wow factor? 84 00:04:45,040 --> 00:04:46,760 Speaker 2: I mean, are they going to is there a chance 85 00:04:46,800 --> 00:04:48,359 Speaker 2: in your June developer meeting that they're going to come 86 00:04:48,360 --> 00:04:49,920 Speaker 2: out with something that's going to blow the street away 87 00:04:50,040 --> 00:04:51,400 Speaker 2: or expectations low? 88 00:04:52,720 --> 00:04:56,520 Speaker 3: I mean, I'm expecting more emphasis on the software side 89 00:04:56,640 --> 00:05:00,560 Speaker 3: in that developer meeting, and clearly they need to showcase 90 00:05:00,720 --> 00:05:05,000 Speaker 3: what they are doing around the LLLM strategy, whether an 91 00:05:05,160 --> 00:05:08,400 Speaker 3: L and large anguid model will be part of their OS, 92 00:05:08,680 --> 00:05:13,040 Speaker 3: and then how it influences the overall app ecosystem, because 93 00:05:13,120 --> 00:05:15,200 Speaker 3: that those are the features. If you look at the 94 00:05:15,320 --> 00:05:19,120 Speaker 3: latest pixel phone, they offer you a lot of those 95 00:05:19,160 --> 00:05:23,599 Speaker 3: features already on Android, and that's what the Android ecosystem 96 00:05:23,680 --> 00:05:25,680 Speaker 3: is looking to leverage more and more off look at 97 00:05:25,680 --> 00:05:29,200 Speaker 3: the latest Samsung phones. They are targeting a lot of 98 00:05:29,240 --> 00:05:32,800 Speaker 3: those JNAI features and Apple is really playing catch up 99 00:05:32,839 --> 00:05:34,960 Speaker 3: over there, and they need to showcase that at the 100 00:05:35,160 --> 00:05:39,159 Speaker 3: WWDC when they have all the developers over there. 101 00:05:39,320 --> 00:05:41,080 Speaker 4: Made this is something you think about a lot. So 102 00:05:41,160 --> 00:05:43,600 Speaker 4: lay out the ultimate vision for us. What does Apple 103 00:05:43,960 --> 00:05:46,440 Speaker 4: want its devices to be able to do for us 104 00:05:46,440 --> 00:05:48,840 Speaker 4: from an AI perspective, like how how is it going 105 00:05:48,880 --> 00:05:51,119 Speaker 4: to interact with me using AI? 106 00:05:52,760 --> 00:05:56,640 Speaker 3: I mean, the biggest kind of UI upgrade they can 107 00:05:56,720 --> 00:05:59,719 Speaker 3: offer is around this series. You know the fact that 108 00:06:00,080 --> 00:06:03,560 Speaker 3: theory is so underutilized right now as a voice assistant 109 00:06:04,160 --> 00:06:07,400 Speaker 3: if it has the right set of JENNYI features. Clearly 110 00:06:07,560 --> 00:06:10,080 Speaker 3: that will have a big influence and how we interact 111 00:06:10,080 --> 00:06:12,880 Speaker 3: with the next version offer of the phones they make. 112 00:06:13,279 --> 00:06:16,680 Speaker 3: And also, you know, some of the utility inside the app, 113 00:06:17,120 --> 00:06:21,239 Speaker 3: like you don't have to you know, kind of touch 114 00:06:21,400 --> 00:06:25,960 Speaker 3: everything or do everything manually. In terms of giving instructions, 115 00:06:26,040 --> 00:06:29,560 Speaker 3: there is this concept of AI agents that has to 116 00:06:29,600 --> 00:06:32,600 Speaker 3: be front and center in the next version of software 117 00:06:32,680 --> 00:06:36,200 Speaker 3: that Apple offers within their operating system, so that AI 118 00:06:36,360 --> 00:06:41,000 Speaker 3: agent can automate a lot of the tasks, not fully, 119 00:06:41,120 --> 00:06:43,839 Speaker 3: but pieces of it. And you want to see Apple 120 00:06:43,880 --> 00:06:45,640 Speaker 3: making progress on that front. 121 00:06:45,720 --> 00:06:47,719 Speaker 2: All right, Man Deep, thanks so much for joining us. 122 00:06:47,720 --> 00:06:50,000 Speaker 2: Appreciate it as always. Man Deep saying he's a senior 123 00:06:50,000 --> 00:06:53,440 Speaker 2: technology channels for Bloomberg Intelligence giving us the latest. Again. 124 00:06:53,440 --> 00:06:58,200 Speaker 2: Apple had their new product unveiling of the new Apple iPad, 125 00:06:58,240 --> 00:07:00,599 Speaker 2: and I think what I've heard from Mandeep and an 126 00:07:00,720 --> 00:07:04,400 Speaker 2: Aagrana also covers technology for Bloomberg Intelligence is in terms 127 00:07:04,440 --> 00:07:08,600 Speaker 2: of new product launches and refreshes, it's really just evolutionary. 128 00:07:09,040 --> 00:07:11,280 Speaker 2: They just iterate on the margins as opposed to something 129 00:07:11,320 --> 00:07:13,880 Speaker 2: really radically new that I'll cause everybody to run out 130 00:07:13,880 --> 00:07:18,360 Speaker 2: and buy a new product. Those days are probably behind Apple. 131 00:07:19,240 --> 00:07:21,560 Speaker 4: People have said that in the past though, Paul, So, 132 00:07:22,360 --> 00:07:24,480 Speaker 4: I see where you're coming from. But there would be 133 00:07:24,520 --> 00:07:26,080 Speaker 4: those people who said, you know what, they said that 134 00:07:26,200 --> 00:07:28,160 Speaker 4: when Steve Jobs died, and look what's happened over the 135 00:07:28,240 --> 00:07:30,720 Speaker 4: last ten years. I will say, I think they need 136 00:07:30,760 --> 00:07:33,880 Speaker 4: to move the air pods from a hardware category to 137 00:07:34,000 --> 00:07:36,680 Speaker 4: services because I am just it's like I need a 138 00:07:36,680 --> 00:07:38,520 Speaker 4: subscription to these things because I lose them. 139 00:07:38,440 --> 00:07:41,640 Speaker 2: So much, Yach, Exactly, that's the issue, Yeah, exactly so, 140 00:07:42,320 --> 00:07:44,440 Speaker 2: but it's interesting so forward. That's why. You know, if 141 00:07:44,520 --> 00:07:46,880 Speaker 2: you do think that it's less of a product story, 142 00:07:47,520 --> 00:07:49,520 Speaker 2: then you focus more on the services side of the business, 143 00:07:49,520 --> 00:07:51,480 Speaker 2: which is about twenty percent of their revenue, and it's 144 00:07:51,520 --> 00:07:54,120 Speaker 2: growing double digits, and that's and it's a higher margin business, 145 00:07:54,120 --> 00:07:56,840 Speaker 2: and that's and that's a good story. 146 00:07:56,920 --> 00:07:59,040 Speaker 4: The German has talked to us about the air pods 147 00:07:59,080 --> 00:08:03,000 Speaker 4: actually getting some AI features too, really okay, lenses, maybe 148 00:08:03,000 --> 00:08:03,840 Speaker 4: we'll see, all right, we'll see. 149 00:08:03,880 --> 00:08:06,440 Speaker 2: It goes to me if I'm an investor in Apple, 150 00:08:06,520 --> 00:08:10,440 Speaker 2: it's just all about China. I'm concerned that the demand 151 00:08:10,440 --> 00:08:12,600 Speaker 2: there for my products and services is going to be 152 00:08:12,920 --> 00:08:14,920 Speaker 2: less going forward. And that's a concern. That's one of 153 00:08:14,920 --> 00:08:17,840 Speaker 2: the concerns for the stock. We'll certainly keep on top 154 00:08:17,840 --> 00:08:18,040 Speaker 2: of that. 155 00:08:19,640 --> 00:08:23,559 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 156 00:08:23,640 --> 00:08:26,680 Speaker 1: weekdays at ten am Eastern on Apple card Play and 157 00:08:26,680 --> 00:08:29,600 Speaker 1: Android Otto with the Bloomberg Business App. You can also 158 00:08:29,680 --> 00:08:32,840 Speaker 1: listen live on Amazon Alexa from our flagship New York 159 00:08:32,920 --> 00:08:37,040 Speaker 1: station just Say Alexa playing Bloomberg eleven thirty. 160 00:08:38,000 --> 00:08:38,080 Speaker 5: Now. 161 00:08:38,160 --> 00:08:40,679 Speaker 2: I've been covering Walt Disney for thirty five years. There 162 00:08:40,760 --> 00:08:43,280 Speaker 2: was a time when I got paid for my research 163 00:08:43,320 --> 00:08:45,120 Speaker 2: on Walt Disney. So of course I looked at the 164 00:08:45,160 --> 00:08:46,960 Speaker 2: results this morning, so I had this stock will trade 165 00:08:47,000 --> 00:08:50,960 Speaker 2: up down eight percent? So what do I know? So 166 00:08:51,120 --> 00:08:53,040 Speaker 2: let's go to somebody who's much smarter than any of 167 00:08:53,120 --> 00:08:55,720 Speaker 2: us here about this kind of STU. That's Keitha Ranganath, 168 00:08:55,760 --> 00:09:00,120 Speaker 2: and she is the media analyst for Bloomberg Intelligence. What 169 00:09:00,160 --> 00:09:03,199 Speaker 2: does the street not like? I thought it was pretty 170 00:09:03,240 --> 00:09:04,760 Speaker 2: good print there for the company. 171 00:09:05,600 --> 00:09:08,200 Speaker 6: It certainly was Paul. But what the street didn't like 172 00:09:08,400 --> 00:09:12,160 Speaker 6: was the outlook. The outlook for the fiscal third quarter, 173 00:09:12,280 --> 00:09:15,800 Speaker 6: especially for the theme park business, was definitely weak and 174 00:09:15,840 --> 00:09:18,720 Speaker 6: not something that the street was expecting. So Consensus had 175 00:09:18,960 --> 00:09:22,199 Speaker 6: a twelve percent growth in operating income for the parks business. 176 00:09:22,559 --> 00:09:25,720 Speaker 6: What Disney said zero growth, Wow, and that kind of 177 00:09:25,760 --> 00:09:29,199 Speaker 6: really spooked investors, and they talked about different aspects here. 178 00:09:29,640 --> 00:09:31,920 Speaker 6: They said that they have, you know, three new cruise 179 00:09:31,920 --> 00:09:34,680 Speaker 6: ships that are basically coming on board, and you know 180 00:09:34,720 --> 00:09:37,640 Speaker 6: there are launch costs associated with that. They're also opening 181 00:09:37,640 --> 00:09:40,480 Speaker 6: this new kind of private island along with their vacation 182 00:09:40,600 --> 00:09:43,400 Speaker 6: club and cruise business. Of course that also, you know, 183 00:09:43,920 --> 00:09:46,760 Speaker 6: is contributing to that. But I think what really has 184 00:09:46,920 --> 00:09:50,000 Speaker 6: investors super nervous at the at this point is that 185 00:09:50,080 --> 00:09:53,480 Speaker 6: they spoke about a moderation in demand. And this has 186 00:09:53,559 --> 00:09:56,720 Speaker 6: been a constant, constant question for Disney. You know, can 187 00:09:56,800 --> 00:10:00,280 Speaker 6: that park's momentum sustain and how long can it and 188 00:10:00,320 --> 00:10:02,360 Speaker 6: will they have pricing power? And I think this is 189 00:10:02,400 --> 00:10:04,800 Speaker 6: where you're kind of seeing, you know, that the negative 190 00:10:04,840 --> 00:10:07,679 Speaker 6: reaction come in because people are not so confident anymore. 191 00:10:07,800 --> 00:10:11,040 Speaker 4: Is the moderation of demand about Disney's lack of exciting 192 00:10:11,200 --> 00:10:14,160 Speaker 4: things to draw in people to the parks, to draw 193 00:10:14,240 --> 00:10:17,080 Speaker 4: people to the theaters, or is it about a story 194 00:10:17,080 --> 00:10:18,920 Speaker 4: that has to do with the consumer and the way 195 00:10:18,960 --> 00:10:20,400 Speaker 4: that the consumer feels strapped. 196 00:10:21,360 --> 00:10:23,760 Speaker 6: I think it's a little bit of everything, Tim, So 197 00:10:24,000 --> 00:10:26,480 Speaker 6: you know, definitely the consumer, the overall health of the 198 00:10:26,520 --> 00:10:30,520 Speaker 6: economy and the consumer for certain, and you know, tremendous 199 00:10:30,559 --> 00:10:33,280 Speaker 6: inflationary pressures. But of course for Disney, you know, one 200 00:10:33,280 --> 00:10:35,560 Speaker 6: thing that they've done over the past few years is 201 00:10:35,559 --> 00:10:39,640 Speaker 6: they've really raised prices in their parks pretty dramatically, and 202 00:10:39,679 --> 00:10:43,800 Speaker 6: it's becoming increasingly increasingly expensive for you know, a family vacation, 203 00:10:43,960 --> 00:10:47,239 Speaker 6: so you know, the to the point of almost becoming prohibitive. 204 00:10:47,280 --> 00:10:49,520 Speaker 6: And you know, that's where kind of that whole pricing 205 00:10:49,559 --> 00:10:51,839 Speaker 6: power question comes in. I think they're going to have 206 00:10:51,880 --> 00:10:54,720 Speaker 6: to do it much more cautiously and gently in the future. 207 00:10:55,040 --> 00:10:57,400 Speaker 4: Paul talking to some neighbors the other day who recently 208 00:10:57,440 --> 00:11:00,000 Speaker 4: took their kids to Disney. Yep, they were adding up 209 00:11:00,000 --> 00:11:01,600 Speaker 4: how much it costs for just a couple of days 210 00:11:01,640 --> 00:11:04,640 Speaker 4: down there. They were saying, probably about five grand is 211 00:11:04,640 --> 00:11:08,079 Speaker 4: what they spent in Florida, two kids, a few days 212 00:11:08,080 --> 00:11:09,880 Speaker 4: down there. Wow, it's a lot of money. 213 00:11:10,120 --> 00:11:12,280 Speaker 1: You need an advisor to like set all this stuff 214 00:11:12,360 --> 00:11:13,680 Speaker 1: up because it's so complicated. 215 00:11:13,800 --> 00:11:15,959 Speaker 4: Yeah, So I've heard with these like I just. 216 00:11:15,920 --> 00:11:17,840 Speaker 2: Called I just called Githa. She makes a phone call 217 00:11:17,840 --> 00:11:20,840 Speaker 2: and I'm like the front line every time. Eithan. The 218 00:11:20,840 --> 00:11:23,200 Speaker 2: other part of this story, and for the longest time, 219 00:11:23,320 --> 00:11:25,000 Speaker 2: you know, the last four or five years, has been 220 00:11:25,160 --> 00:11:28,240 Speaker 2: their streaming business and when will that business term profitable? 221 00:11:28,440 --> 00:11:30,280 Speaker 2: They had some pretty good news on that front, didn't 222 00:11:30,280 --> 00:11:31,600 Speaker 2: they They. 223 00:11:31,440 --> 00:11:33,360 Speaker 6: Did, Paul, I mean, we're just on the cosp of 224 00:11:33,400 --> 00:11:36,600 Speaker 6: a major, major earning inflection point here for the first 225 00:11:36,640 --> 00:11:39,800 Speaker 6: time ever in the in the streaming business's history, they 226 00:11:39,800 --> 00:11:43,079 Speaker 6: actually posted a model that modest profit. Now again they 227 00:11:43,080 --> 00:11:45,280 Speaker 6: said fiscal third quarter, which is the next quarter, is 228 00:11:45,320 --> 00:11:47,640 Speaker 6: going to be a little bit choppy. But then what 229 00:11:47,679 --> 00:11:51,480 Speaker 6: they've said all along is that expect some really good 230 00:11:51,559 --> 00:11:53,880 Speaker 6: results in the fiscal fourth quarter, and then they're really 231 00:11:53,880 --> 00:11:55,880 Speaker 6: going to build on that starting in you know, fiscal 232 00:11:55,920 --> 00:11:58,320 Speaker 6: twenty twenty five and beyond. They have a lot of 233 00:11:58,360 --> 00:12:01,720 Speaker 6: initiatives in the works. You know, they're cracking down on 234 00:12:01,760 --> 00:12:04,920 Speaker 6: password sharing a la Netflix, and remember that has been 235 00:12:04,960 --> 00:12:07,959 Speaker 6: a huge growth story at Netflix. The Netflix added almost 236 00:12:07,960 --> 00:12:10,360 Speaker 6: thirty five million subscribers after they started cracking down on 237 00:12:10,360 --> 00:12:13,160 Speaker 6: password sharing, So Disney can also hope to see quite 238 00:12:13,200 --> 00:12:14,800 Speaker 6: a lot of success with that. And then of course 239 00:12:14,800 --> 00:12:16,960 Speaker 6: they also have the Hulu integration as well as you know, 240 00:12:17,000 --> 00:12:19,920 Speaker 6: the ad tier, all of that kind of contributing. So streaming, 241 00:12:19,960 --> 00:12:22,240 Speaker 6: I think is going to be a considerable source of 242 00:12:22,280 --> 00:12:24,959 Speaker 6: earnings upside in the next few years. 243 00:12:25,040 --> 00:12:26,080 Speaker 4: How's Bob Iger doing? 244 00:12:26,800 --> 00:12:27,920 Speaker 2: Does he having successor? 245 00:12:29,360 --> 00:12:31,360 Speaker 6: He spoke about that actually on the call that that 246 00:12:31,480 --> 00:12:33,440 Speaker 6: came up, and he said that they're, you know, they're 247 00:12:33,520 --> 00:12:36,520 Speaker 6: kind of actively considering. They have four internal candidates the 248 00:12:36,679 --> 00:12:39,440 Speaker 6: all of the division chiefs chiefs that are kind of 249 00:12:40,160 --> 00:12:42,760 Speaker 6: up for consideration, and you know, he said that they're 250 00:12:42,800 --> 00:12:45,319 Speaker 6: looking at them very carefully and the announcement will come 251 00:12:45,360 --> 00:12:46,240 Speaker 6: when the time is right. 252 00:12:46,559 --> 00:12:49,840 Speaker 4: Is this any replay of what happened a few years 253 00:12:49,840 --> 00:12:51,880 Speaker 4: ago when Bob Jpek took over. I mean it kind 254 00:12:51,920 --> 00:12:54,800 Speaker 4: of sounds familiar. A number of internal candidates, the person 255 00:12:54,800 --> 00:12:57,040 Speaker 4: gets picked, the other ones leave, and then Bob Ager 256 00:12:57,080 --> 00:12:58,439 Speaker 4: comes back because it didn't work out. 257 00:12:59,480 --> 00:12:59,680 Speaker 3: Yeah. 258 00:12:59,720 --> 00:13:01,760 Speaker 6: I mean, we've seen this movie play out so many 259 00:13:01,840 --> 00:13:04,840 Speaker 6: times now at Disney. I hope and I think this 260 00:13:04,920 --> 00:13:07,480 Speaker 6: time it really will be different. I mean, that was 261 00:13:07,520 --> 00:13:10,840 Speaker 6: the whole bone of contention, you know, for the activist investors, 262 00:13:10,840 --> 00:13:13,719 Speaker 6: including Nelson Pals, and I think having this new succession 263 00:13:13,760 --> 00:13:17,360 Speaker 6: Planning committee suggests that this time they will do things 264 00:13:17,400 --> 00:13:19,560 Speaker 6: probably a little bit differently, all. 265 00:13:19,480 --> 00:13:21,240 Speaker 2: Right, Githa. So clearly we're going at the stock down 266 00:13:21,280 --> 00:13:23,680 Speaker 2: eight percent. The market clearly is focusing on that theme 267 00:13:23,720 --> 00:13:26,440 Speaker 2: park business, and for good reason, it's become, you know, 268 00:13:26,920 --> 00:13:29,040 Speaker 2: kind of on a kind of under the radars. Now 269 00:13:29,120 --> 00:13:33,160 Speaker 2: become seventy seven zero percent of their operating income. So 270 00:13:33,280 --> 00:13:36,480 Speaker 2: it is the business here. What did the companies say 271 00:13:36,480 --> 00:13:40,680 Speaker 2: about their ability to potentially deal with maybe weaker demand. 272 00:13:40,760 --> 00:13:43,400 Speaker 2: It's been a long time since we've seen them ever 273 00:13:43,520 --> 00:13:47,199 Speaker 2: cut prices at the theme parks, promote, you know, at 274 00:13:47,200 --> 00:13:49,920 Speaker 2: the theme parks, anything that would hurt profitability. It's been 275 00:13:49,920 --> 00:13:51,480 Speaker 2: a long time since they've had to do that. 276 00:13:52,640 --> 00:13:54,480 Speaker 6: Yeah, I mean, the theme park business has been such 277 00:13:54,520 --> 00:13:57,480 Speaker 6: a consistent story for them, Paul, as you just pointed out, 278 00:13:57,520 --> 00:13:59,959 Speaker 6: they have twenty five percent operating margin in that business, 279 00:14:00,360 --> 00:14:03,120 Speaker 6: and they are really looking at this as a future 280 00:14:03,360 --> 00:14:06,920 Speaker 6: earnings growth driver, which is why you know, they're investing 281 00:14:07,000 --> 00:14:10,480 Speaker 6: sixty billion dollars in the theme parks over the next 282 00:14:10,480 --> 00:14:14,400 Speaker 6: ten years. Over half of that is basically just adding capacity, 283 00:14:14,480 --> 00:14:18,520 Speaker 6: adding new attractions, and I think it's it's it's a 284 00:14:18,559 --> 00:14:20,840 Speaker 6: really timely and a good strategic mode they're also bringing 285 00:14:20,840 --> 00:14:22,880 Speaker 6: on those cruise ships that that's going to cost them 286 00:14:22,880 --> 00:14:26,120 Speaker 6: about twelve to fifteen billion dollars, so you know, they're 287 00:14:26,120 --> 00:14:28,920 Speaker 6: definitely adding capacities. So I think, you know, overall, definitely 288 00:14:28,920 --> 00:14:31,000 Speaker 6: the business is in good shape, but in the near term, 289 00:14:31,080 --> 00:14:33,200 Speaker 6: obviously the sentiment has definitely soured. 290 00:14:33,600 --> 00:14:33,720 Speaker 3: Well. 291 00:14:33,760 --> 00:14:36,800 Speaker 4: Speaking of souring sentiment, curious about the media business here, 292 00:14:37,040 --> 00:14:41,960 Speaker 4: apart from streaming the legacy media business, talking ESPN, talking ABC, 293 00:14:42,760 --> 00:14:44,360 Speaker 4: what do we learn about that business? 294 00:14:45,280 --> 00:14:45,560 Speaker 3: Bad? 295 00:14:45,720 --> 00:14:46,520 Speaker 2: Bad, bad bad? 296 00:14:46,680 --> 00:14:51,320 Speaker 6: So Legacy TV Networks the operating income was down twenty 297 00:14:51,440 --> 00:14:54,600 Speaker 6: two percent. That's not surprising, but it's just the rate 298 00:14:54,640 --> 00:14:57,160 Speaker 6: of decline. I mean, we were expecting, you know, you know, 299 00:14:57,200 --> 00:15:00,800 Speaker 6: maybe high single digits. This is, you know, this really bad. 300 00:15:01,280 --> 00:15:04,280 Speaker 6: And what gets worse is, you know, we're obviously hearing 301 00:15:04,280 --> 00:15:07,680 Speaker 6: about all of the sports rights negotiations that are ongoing. 302 00:15:07,960 --> 00:15:10,880 Speaker 6: If you look at the NBA deal for instance, that's 303 00:15:10,920 --> 00:15:14,200 Speaker 6: basically looking at tripling the sports value. So their previous 304 00:15:14,200 --> 00:15:16,920 Speaker 6: deal was twenty about twenty five billion, new deal will 305 00:15:16,920 --> 00:15:20,360 Speaker 6: be over seventy five billion dollars, and so these companies 306 00:15:20,360 --> 00:15:23,360 Speaker 6: are going to have to pay up just to kind 307 00:15:23,400 --> 00:15:25,880 Speaker 6: of maintain the status score or maybe not not even 308 00:15:25,920 --> 00:15:28,080 Speaker 6: maintain the status score and their TV networks business, which 309 00:15:28,120 --> 00:15:31,000 Speaker 6: is really going to crimp profitability pretty significantly. 310 00:15:31,280 --> 00:15:34,160 Speaker 2: So, I mean it begs a question. Your costs are tripling, 311 00:15:34,880 --> 00:15:37,920 Speaker 2: your revenue is not tripling. Is streaming going to pay 312 00:15:37,960 --> 00:15:40,440 Speaker 2: for all these sports rights? How does the company even 313 00:15:41,160 --> 00:15:42,520 Speaker 2: position out in the marketplace. 314 00:15:43,280 --> 00:15:45,600 Speaker 6: That's what they're betting on, Paul. I'm not sure that 315 00:15:45,640 --> 00:15:47,280 Speaker 6: it's going to be Streaming is going to be able 316 00:15:47,320 --> 00:15:49,840 Speaker 6: to reclaim all of that leakage that we're seeing on 317 00:15:49,880 --> 00:15:52,160 Speaker 6: the linear TV side, but they're definitely betting that it 318 00:15:52,320 --> 00:15:55,480 Speaker 6: will be able to salvage some of those losses. So 319 00:15:55,920 --> 00:15:58,840 Speaker 6: you know, ESPN, for instance, they are having obviously their 320 00:15:58,880 --> 00:16:00,760 Speaker 6: new standalone app that is going to come out sometime 321 00:16:00,760 --> 00:16:02,400 Speaker 6: in twenty twenty five, and then they have this new 322 00:16:02,440 --> 00:16:05,240 Speaker 6: sports JV that again is supposed to come out a 323 00:16:05,280 --> 00:16:07,480 Speaker 6: little bit later this year, along with Warner Brothers Discovery 324 00:16:07,480 --> 00:16:11,280 Speaker 6: in Fox, so they're doing different things. Again, not sure 325 00:16:11,320 --> 00:16:14,800 Speaker 6: whether you know how successful it's going to be. That's 326 00:16:14,840 --> 00:16:16,320 Speaker 6: a little still a little bit of a wait. 327 00:16:16,200 --> 00:16:17,280 Speaker 2: And watch getha. 328 00:16:17,320 --> 00:16:18,960 Speaker 4: We're so lucky we have you because you not just 329 00:16:19,040 --> 00:16:22,320 Speaker 4: cover Disney, but you also cover Peloton and shares a 330 00:16:22,360 --> 00:16:26,480 Speaker 4: Peloton hire by twelve percent right now. This after CNBC 331 00:16:26,600 --> 00:16:28,960 Speaker 4: reported that a number of PE firms have been considering 332 00:16:28,960 --> 00:16:31,520 Speaker 4: a buyout of the company. They cited people familiar with 333 00:16:31,560 --> 00:16:35,480 Speaker 4: the matter. What could a private equity firm do with Peloton, Like, 334 00:16:35,480 --> 00:16:38,960 Speaker 4: how could a PE firm make Peloton successful? Solve its problems? 335 00:16:39,920 --> 00:16:43,040 Speaker 6: Good costs, I mean, that's what PE firms do best. 336 00:16:43,200 --> 00:16:47,160 Speaker 6: And the Peloton really has had a huge cost problem. 337 00:16:47,440 --> 00:16:49,720 Speaker 6: And the cost problem is because the costs haven't really 338 00:16:49,760 --> 00:16:52,880 Speaker 6: been aligned to its revenue base. Its revenue has been 339 00:16:52,920 --> 00:16:56,760 Speaker 6: steadily decreasing, just a combination of different factors. We demand, 340 00:16:56,960 --> 00:17:01,280 Speaker 6: saturated market. Their new products haven't really taken off. You know, 341 00:17:01,280 --> 00:17:04,080 Speaker 6: they've tried all kinds of different things with their whole 342 00:17:04,119 --> 00:17:07,480 Speaker 6: new digital app revamp. Again, that's really not done the 343 00:17:07,480 --> 00:17:09,840 Speaker 6: way that they've wanted it to kind of perform. They 344 00:17:09,840 --> 00:17:12,719 Speaker 6: have all these other partnerships with Lulu, you know, they 345 00:17:12,720 --> 00:17:15,200 Speaker 6: had this new hotel partnership. Again, nothing has really been 346 00:17:15,200 --> 00:17:18,360 Speaker 6: a game changer. But the costs are still very very high, 347 00:17:18,359 --> 00:17:20,119 Speaker 6: and that's just because it's cost them so much to 348 00:17:20,119 --> 00:17:22,359 Speaker 6: manufacture their equipment, and so PE can kind of really 349 00:17:22,400 --> 00:17:23,919 Speaker 6: come in and trim that cost space. 350 00:17:24,560 --> 00:17:27,120 Speaker 2: All right, Githa, thanks so much for joining us. Keithan 351 00:17:27,200 --> 00:17:30,080 Speaker 2: Raganath and she is the media anuals the Bloomberg Intelligence folks. 352 00:17:30,119 --> 00:17:32,040 Speaker 2: She is over the last fifteen years has built up 353 00:17:32,040 --> 00:17:34,399 Speaker 2: an amazing franchise on Wall Street as being one of 354 00:17:34,440 --> 00:17:37,760 Speaker 2: the leading research voices on that space, and it's been 355 00:17:37,800 --> 00:17:41,800 Speaker 2: going undergoing a tremendous amount of generational change in the 356 00:17:41,840 --> 00:17:45,520 Speaker 2: media business from the traditional cable TV satellite delivery mechanisms. 357 00:17:45,640 --> 00:17:48,119 Speaker 2: This whole thing called streaming has required a lot of 358 00:17:48,119 --> 00:17:50,479 Speaker 2: work and a lot of folks on Wall Street pay 359 00:17:50,520 --> 00:17:53,440 Speaker 2: attention to Keitha's researching. Can you find Getha's research and 360 00:17:53,520 --> 00:17:56,280 Speaker 2: all of the Bloomberg Intelligence research on the Bloomberg terminal? 361 00:17:57,040 --> 00:17:59,960 Speaker 2: B I go is the function that'll get you there. 362 00:18:00,200 --> 00:18:03,320 Speaker 2: It's good stuff. Disney stock down around the seven eight 363 00:18:03,359 --> 00:18:08,880 Speaker 2: percent here again, concerns about maybe peak theme park demand 364 00:18:08,960 --> 00:18:11,159 Speaker 2: there coming out of the pandemic, maybe getting back to 365 00:18:11,160 --> 00:18:14,359 Speaker 2: a more normalized level of attendance. But you know what 366 00:18:14,359 --> 00:18:16,880 Speaker 2: we've seen over the years from Disney is they really 367 00:18:17,160 --> 00:18:20,360 Speaker 2: know better than anybody else how to price their theme 368 00:18:20,400 --> 00:18:22,800 Speaker 2: park product and how to invest in how to generate 369 00:18:22,880 --> 00:18:24,720 Speaker 2: returns so longer trim. I think a lot of people 370 00:18:24,720 --> 00:18:25,639 Speaker 2: feel pretty good about that. 371 00:18:28,000 --> 00:18:31,879 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 372 00:18:31,960 --> 00:18:34,760 Speaker 1: weekdays at ten am Eastern on Apple Card playing en 373 00:18:34,800 --> 00:18:37,639 Speaker 1: Broud Otto with the Bloomberg Business App. Listen on demand 374 00:18:37,720 --> 00:18:42,080 Speaker 1: wherever you get your podcasts, or watch us live on YouTube. 375 00:18:43,119 --> 00:18:45,600 Speaker 2: Our next guest, Sandy Briggar, joins us. She's a chief 376 00:18:45,720 --> 00:18:48,800 Speaker 2: client officer at Experience, joining us live here in our 377 00:18:48,800 --> 00:18:53,720 Speaker 2: Bloomberg Interactive Broker's studio. Sandy, it's funny this market here. 378 00:18:53,800 --> 00:18:55,760 Speaker 2: A lot of folks, you know, we had that nice 379 00:18:55,840 --> 00:18:58,679 Speaker 2: run off those October lows. People felt like maybe the 380 00:18:58,680 --> 00:19:01,080 Speaker 2: market got ahead of itself, and then we had the 381 00:19:01,160 --> 00:19:03,720 Speaker 2: FED saying, gee, maybe we're not going to cut race, 382 00:19:03,720 --> 00:19:05,200 Speaker 2: maybe we're going to hype rates. And people got a 383 00:19:05,200 --> 00:19:07,280 Speaker 2: little spook there for a while. But it seems like 384 00:19:07,280 --> 00:19:09,440 Speaker 2: we're back on a positive trajectory here. How do you 385 00:19:09,480 --> 00:19:12,560 Speaker 2: guys think about the markets and maybe get away from 386 00:19:12,560 --> 00:19:14,720 Speaker 2: that day to day type of view of the market. 387 00:19:14,880 --> 00:19:16,439 Speaker 5: Yeah, it's hard to get away from the day to day, 388 00:19:16,520 --> 00:19:19,480 Speaker 5: especially when it's bouncing around so much and penning upon 389 00:19:19,560 --> 00:19:19,840 Speaker 5: the day. 390 00:19:19,880 --> 00:19:21,400 Speaker 7: You have a different view of what's happening. 391 00:19:21,720 --> 00:19:27,080 Speaker 5: But our clients are corporate executives, family business owners, entrepreneurs, inheritors. 392 00:19:27,080 --> 00:19:29,800 Speaker 5: They're really thinking about their portfolios for the long term 393 00:19:30,000 --> 00:19:32,000 Speaker 5: and they're not so worried about what's happening on the 394 00:19:32,080 --> 00:19:33,720 Speaker 5: day to day. So that takes a little bit of 395 00:19:33,720 --> 00:19:35,680 Speaker 5: pressure off of us. Although we get questions about the 396 00:19:35,760 --> 00:19:38,440 Speaker 5: day to day all the time, our best advice to 397 00:19:38,480 --> 00:19:40,840 Speaker 5: our clients is really to be prepared for anything in 398 00:19:40,880 --> 00:19:41,399 Speaker 5: this market. 399 00:19:41,480 --> 00:19:43,440 Speaker 7: So we're playing both offense. 400 00:19:43,000 --> 00:19:47,840 Speaker 5: And defense simultaneously in portfolios, just being prepared for a 401 00:19:47,960 --> 00:19:48,760 Speaker 5: range of outcomes. 402 00:19:48,920 --> 00:19:50,520 Speaker 4: What are the types of questions that you're getting, like 403 00:19:50,560 --> 00:19:53,199 Speaker 4: when your phone is ringing, when your email inbox is 404 00:19:53,240 --> 00:19:55,600 Speaker 4: hanging on days when we're seeing volatility, what's the question 405 00:19:55,680 --> 00:19:56,719 Speaker 4: that your clients are asking. 406 00:19:56,800 --> 00:19:58,840 Speaker 5: It's either should we raise more cash or should we 407 00:19:58,840 --> 00:20:01,560 Speaker 5: put more cash in? And it might be the same 408 00:20:01,640 --> 00:20:03,320 Speaker 5: question from different people in the same day. 409 00:20:03,440 --> 00:20:06,199 Speaker 4: And let's be honest. When the question is should we 410 00:20:06,240 --> 00:20:08,399 Speaker 4: raise more cash, your job is to say no. 411 00:20:09,240 --> 00:20:11,679 Speaker 7: We think it's really important to be invested. 412 00:20:11,840 --> 00:20:15,320 Speaker 5: And because we're putting together an investment portfolio based on 413 00:20:15,359 --> 00:20:17,159 Speaker 5: our client's financial plans, we have a good sense of 414 00:20:17,160 --> 00:20:19,320 Speaker 5: how much cash they need at any given moment, so 415 00:20:19,400 --> 00:20:21,680 Speaker 5: everything else that they don't really need for the near term, 416 00:20:21,880 --> 00:20:25,160 Speaker 5: we are recommending that they invest, and we talk about 417 00:20:25,160 --> 00:20:26,960 Speaker 5: why we're investing the way that we are and really 418 00:20:27,000 --> 00:20:30,000 Speaker 5: help hold clients' hands through that moment. Now, for the 419 00:20:30,040 --> 00:20:33,640 Speaker 5: clients that are willing in wanting to put more money in, 420 00:20:34,359 --> 00:20:36,440 Speaker 5: that's actually a good sign because for a while, people 421 00:20:36,520 --> 00:20:38,440 Speaker 5: are so excited about yields. 422 00:20:38,119 --> 00:20:39,399 Speaker 7: On money marketing funds. 423 00:20:39,480 --> 00:20:41,919 Speaker 5: You know, I hadn't seen any return on cash, and 424 00:20:42,000 --> 00:20:46,639 Speaker 5: so long that people were feeling really comfortable bulking up 425 00:20:46,640 --> 00:20:49,480 Speaker 5: on cash, and so now they're ready to get invested, 426 00:20:49,520 --> 00:20:54,719 Speaker 5: and those conversations go well too. Interestingly, we've started having 427 00:20:54,760 --> 00:20:59,200 Speaker 5: clients take steps into bonds. On the longer term side, 428 00:20:59,240 --> 00:21:02,679 Speaker 5: we think that in this environment where rates are high, 429 00:21:03,000 --> 00:21:05,280 Speaker 5: it's nice to lock in some of the current rates, 430 00:21:05,560 --> 00:21:08,480 Speaker 5: and if we do see some softening in the economy, 431 00:21:08,640 --> 00:21:11,520 Speaker 5: that should do well for bonds, high quality intermediate, long 432 00:21:11,600 --> 00:21:14,880 Speaker 5: term bonds. And then on the equity side, we're really 433 00:21:14,920 --> 00:21:18,399 Speaker 5: focused on where are the opportunities, and we think because 434 00:21:18,760 --> 00:21:21,520 Speaker 5: of the narrow range of the market over the last 435 00:21:21,560 --> 00:21:24,400 Speaker 5: six months, that there's plenty of interesting stocks out there 436 00:21:24,400 --> 00:21:27,680 Speaker 5: that haven't rallied, and it does look in recent days 437 00:21:27,680 --> 00:21:28,800 Speaker 5: like maybe that's opening up. 438 00:21:28,880 --> 00:21:30,160 Speaker 7: So we're excited about that. 439 00:21:30,240 --> 00:21:32,960 Speaker 2: When you say playing offense, what does that mean to you, guys? 440 00:21:33,280 --> 00:21:36,360 Speaker 5: So looking for opportunities to invest where there's a high 441 00:21:36,440 --> 00:21:39,840 Speaker 5: likelihood of achieving a good return on that investment. 442 00:21:40,000 --> 00:21:41,960 Speaker 7: So for US today, that would. 443 00:21:41,760 --> 00:21:45,080 Speaker 5: Be in value stocks here in the US and overseas. 444 00:21:45,200 --> 00:21:48,320 Speaker 5: I would say about fifty five percent of our overall 445 00:21:48,359 --> 00:21:52,439 Speaker 5: equity allocation is overseas right now, with rare amountain emerging markets. 446 00:21:52,520 --> 00:21:53,359 Speaker 7: Yeah, because I. 447 00:21:53,359 --> 00:21:56,399 Speaker 5: Mean, the US has just been so strong, things are 448 00:21:56,440 --> 00:21:58,400 Speaker 5: happening differently outside of the country. 449 00:21:58,600 --> 00:22:00,439 Speaker 4: Is your argument that there's like a reverse into the 450 00:22:00,480 --> 00:22:03,159 Speaker 4: mean here or because if you look at the past decade, 451 00:22:03,200 --> 00:22:05,240 Speaker 4: I mean, the US is outperformed everywhere else. 452 00:22:05,359 --> 00:22:08,000 Speaker 7: Yeah, evaluations are so high and it's been ugly. 453 00:22:08,000 --> 00:22:11,200 Speaker 4: If you haven't been if you've been overweight international, it has. 454 00:22:11,280 --> 00:22:14,480 Speaker 5: But we think there are great opportunities, especially as things 455 00:22:14,520 --> 00:22:17,480 Speaker 5: get pricey here in the US when we look at valuations, 456 00:22:17,520 --> 00:22:20,040 Speaker 5: we really do see some great opportunities overseas. 457 00:22:20,359 --> 00:22:23,360 Speaker 2: Okay, Then conversely, on plain defense, what does that mean 458 00:22:23,400 --> 00:22:23,960 Speaker 2: to you guys? 459 00:22:24,119 --> 00:22:27,399 Speaker 5: So defense today is a fair amount of bonds. You know, 460 00:22:27,400 --> 00:22:29,920 Speaker 5: for the last several years, we weren't putting very much 461 00:22:29,920 --> 00:22:34,160 Speaker 5: emphasis in bonds and portfolios as rates were increasing. We 462 00:22:34,200 --> 00:22:36,560 Speaker 5: think we have no idea what the FED will do, 463 00:22:36,600 --> 00:22:39,040 Speaker 5: but we think we're much closer to a FED rate 464 00:22:39,400 --> 00:22:43,040 Speaker 5: shift than we are too more increases, and so we 465 00:22:43,080 --> 00:22:44,879 Speaker 5: think fixed income is a good place to be. We 466 00:22:44,880 --> 00:22:47,800 Speaker 5: think it's going to play its traditional role in a portfolio, 467 00:22:48,160 --> 00:22:52,359 Speaker 5: helping buffer to volatility and provide some solid returns. And 468 00:22:52,440 --> 00:22:55,320 Speaker 5: right now returns are about two percent after inflation, so 469 00:22:56,359 --> 00:22:57,040 Speaker 5: not so bad. 470 00:22:58,000 --> 00:23:00,320 Speaker 4: Okay, So somebody comes to you with a pile of 471 00:23:00,359 --> 00:23:04,040 Speaker 4: cash right now, they say, I need you to put 472 00:23:04,080 --> 00:23:05,840 Speaker 4: this to work. Where do you put it to work? 473 00:23:05,920 --> 00:23:07,720 Speaker 4: I know, it depends on their time horizon, how old 474 00:23:07,720 --> 00:23:07,959 Speaker 4: they are. 475 00:23:08,000 --> 00:23:10,160 Speaker 7: Yeah, so we're going to do the visual circumshensive plan. 476 00:23:10,240 --> 00:23:13,600 Speaker 5: But assuming that there are folks with a long investment 477 00:23:13,680 --> 00:23:17,280 Speaker 5: time horizon, we're probably putting about fifty five percent of 478 00:23:17,280 --> 00:23:20,120 Speaker 5: the portfolio in equities, as I said, with about half 479 00:23:20,200 --> 00:23:23,280 Speaker 5: of that a little more than half overseas. The rest 480 00:23:23,320 --> 00:23:26,920 Speaker 5: of the portfolio we're managing defensively, so maybe thirty five 481 00:23:26,920 --> 00:23:30,600 Speaker 5: percent in bonds and fifteen percent in liquid alternatives because 482 00:23:30,600 --> 00:23:32,440 Speaker 5: we do think that they're nice buffers. 483 00:23:32,000 --> 00:23:35,240 Speaker 7: For volatility as well and provide a different did you. 484 00:23:35,200 --> 00:23:39,000 Speaker 4: Say liquid alternatives, liquid? Liquid alternatives, alternatives? 485 00:23:39,160 --> 00:23:41,800 Speaker 2: So what is it like? I guess I was surprised. 486 00:23:41,880 --> 00:23:44,679 Speaker 2: We were at a doing a remote broadcast at one 487 00:23:44,720 --> 00:23:48,040 Speaker 2: of our RIA sponsors, and I was surprised that the 488 00:23:48,280 --> 00:23:52,399 Speaker 2: average RIA at there, they're saying that red shirt investment advisor. 489 00:23:52,480 --> 00:23:54,880 Speaker 2: They're saying that their clients really have an interest in 490 00:23:55,000 --> 00:23:58,480 Speaker 2: alternative investments, like more than the five percent ten percent 491 00:23:58,520 --> 00:24:01,520 Speaker 2: open that I would suggest much higher. What are you 492 00:24:01,560 --> 00:24:04,760 Speaker 2: seeing in terms of all demand for alternative investments, whether 493 00:24:04,760 --> 00:24:07,159 Speaker 2: it's edge funds or private equity or that that kind 494 00:24:07,160 --> 00:24:08,879 Speaker 2: of stuff. And then where do you steer your clients. 495 00:24:09,119 --> 00:24:12,800 Speaker 5: Yeah, so in terms of the more hedging, that's what 496 00:24:12,800 --> 00:24:15,399 Speaker 5: we're doing in the liquid alternatives portfolio. So clients are 497 00:24:15,440 --> 00:24:17,480 Speaker 5: feeling good about that. But we have seen in recent 498 00:24:17,560 --> 00:24:21,159 Speaker 5: years and a bigger interest in private equity than ever before, 499 00:24:21,560 --> 00:24:24,320 Speaker 5: and we think there is definitely a great place for 500 00:24:24,400 --> 00:24:27,760 Speaker 5: private equity and portfolios, but we're really looking at portfolios 501 00:24:27,800 --> 00:24:30,560 Speaker 5: that are twenty million dollars in up where people can 502 00:24:30,600 --> 00:24:34,040 Speaker 5: really have a long investment time horizon and take some 503 00:24:34,160 --> 00:24:36,879 Speaker 5: risk with their portfolios, because even though people have been 504 00:24:36,880 --> 00:24:41,280 Speaker 5: really excited about p there's very few winners in that crowd. 505 00:24:41,320 --> 00:24:43,680 Speaker 4: But I wouldn't consider private equity liquid by any means. 506 00:24:43,760 --> 00:24:45,760 Speaker 5: No, no, no, no, So that would be in a liquid 507 00:24:45,760 --> 00:24:47,920 Speaker 5: portion for sure, which is also why we're looking at 508 00:24:48,520 --> 00:24:51,159 Speaker 5: clients with the much bigger portfolios for that. 509 00:24:51,800 --> 00:24:54,600 Speaker 2: Who is a typical client for you guys, So. 510 00:24:54,640 --> 00:25:02,520 Speaker 5: Corporate executives, family business owners, inheritors. 511 00:25:00,119 --> 00:25:01,840 Speaker 4: To say, how do I I don't remember that being 512 00:25:01,880 --> 00:25:04,320 Speaker 4: a choice when I was check majoring in school, Like 513 00:25:04,760 --> 00:25:06,760 Speaker 4: nobody ever said, hey, inheritor, it could. 514 00:25:06,560 --> 00:25:09,280 Speaker 2: Be I mean, do you guys buy off on this 515 00:25:09,320 --> 00:25:11,440 Speaker 2: whole thing? Like I guess I had to read a 516 00:25:11,480 --> 00:25:14,480 Speaker 2: lot about it, that the baby boomers have so much 517 00:25:14,560 --> 00:25:19,080 Speaker 2: wealth and how do they get it to the next generation. 518 00:25:18,720 --> 00:25:19,880 Speaker 4: The great wealth transfer? 519 00:25:20,080 --> 00:25:22,720 Speaker 2: Yes, yeah, that is a motion And I tell my 520 00:25:22,800 --> 00:25:25,399 Speaker 2: kids the last check I write is going to bounce, baby. 521 00:25:25,880 --> 00:25:26,399 Speaker 4: That's how you do. 522 00:25:26,560 --> 00:25:28,280 Speaker 7: That is a strategy. That is a strategy. 523 00:25:28,280 --> 00:25:28,800 Speaker 2: I like that. 524 00:25:29,480 --> 00:25:31,680 Speaker 5: But it is a conversation we're in with many many 525 00:25:31,680 --> 00:25:34,800 Speaker 5: of our clients, and it actually presents some really interesting 526 00:25:34,840 --> 00:25:38,119 Speaker 5: investment opportunities. Because when they are transferring assets out of 527 00:25:38,119 --> 00:25:41,240 Speaker 5: their estate for the rising generations of their family, that's 528 00:25:41,280 --> 00:25:44,000 Speaker 5: money that has a very long investment time horizon, and 529 00:25:44,080 --> 00:25:47,359 Speaker 5: so they can get you know, quite risk loving if 530 00:25:47,359 --> 00:25:48,959 Speaker 5: that's the direction that they want to go in. 531 00:25:49,080 --> 00:25:53,040 Speaker 4: Okay, typical portfolio size for for you guys. 532 00:25:53,280 --> 00:25:56,280 Speaker 7: Twenty five million, Okay, yeah, I think that's. 533 00:25:56,119 --> 00:25:56,679 Speaker 3: O is it? 534 00:25:56,720 --> 00:26:01,600 Speaker 2: Kind of sixty forty plus? We alc some alternatives. I mean, 535 00:26:01,640 --> 00:26:03,200 Speaker 2: how do you start is I know it probably depends 536 00:26:03,240 --> 00:26:05,879 Speaker 2: on the individual, but do you start like sixty forty 537 00:26:05,920 --> 00:26:07,679 Speaker 2: then decide how much you want to take away from 538 00:26:07,720 --> 00:26:08,840 Speaker 2: that put to alternatives. 539 00:26:09,160 --> 00:26:12,679 Speaker 5: So we do take evaluation driven approach, so our allocations 540 00:26:12,680 --> 00:26:15,240 Speaker 5: are based on where we're seeing valuations in the market. 541 00:26:15,359 --> 00:26:18,200 Speaker 7: So we don't have a fixed asset allocation. 542 00:26:18,320 --> 00:26:21,280 Speaker 5: We have dynamic ones where clients give us the discretion 543 00:26:21,480 --> 00:26:24,880 Speaker 5: to move within bands. So today, as I was mentioning, 544 00:26:25,080 --> 00:26:29,360 Speaker 5: we're more like fifty five, you know, forty five sort 545 00:26:29,400 --> 00:26:31,680 Speaker 5: of allocations. 546 00:26:31,240 --> 00:26:33,760 Speaker 7: On average, but there's a very big range. 547 00:26:33,840 --> 00:26:35,920 Speaker 5: And then for a client when we're looking at their 548 00:26:36,000 --> 00:26:38,680 Speaker 5: investment portfolio, there's a lot of conversation with that we're 549 00:26:38,680 --> 00:26:40,880 Speaker 5: having with them, not only about their goals and what's 550 00:26:40,920 --> 00:26:43,040 Speaker 5: most important to them and their long term plan. But 551 00:26:43,119 --> 00:26:45,679 Speaker 5: how are they feeling about investment markets? You know, how 552 00:26:45,720 --> 00:26:48,720 Speaker 5: have they reacted in the past when markets have gone south? 553 00:26:49,920 --> 00:26:52,720 Speaker 5: Really trying to help hone them in on what's the 554 00:26:52,800 --> 00:26:55,160 Speaker 5: right place on the risk return spectrum for them? 555 00:26:55,240 --> 00:26:58,760 Speaker 4: Are you running in any challenges from clients coming and saying, look, 556 00:26:58,840 --> 00:27:01,000 Speaker 4: I've seen how the S and P five has performed 557 00:27:01,240 --> 00:27:03,320 Speaker 4: over the last ten twelve years. Howd I just put 558 00:27:03,320 --> 00:27:06,719 Speaker 4: my money in Voo it would have outperformed my portfolio. 559 00:27:07,000 --> 00:27:10,680 Speaker 5: There are some clients that feel that way, and you know, 560 00:27:10,800 --> 00:27:13,840 Speaker 5: a lot of conversation about again, where are you relative 561 00:27:13,880 --> 00:27:17,040 Speaker 5: to your plan and was the objective to get the 562 00:27:17,080 --> 00:27:19,760 Speaker 5: highest return? Because in retrospect, it's really easy to see 563 00:27:19,760 --> 00:27:24,040 Speaker 5: how we could have gotten there. But we've been living 564 00:27:24,080 --> 00:27:26,720 Speaker 5: through very interesting time periods and what we've seen in 565 00:27:26,720 --> 00:27:30,000 Speaker 5: the recent past we don't expect to continue going forward. 566 00:27:30,119 --> 00:27:32,800 Speaker 5: So lots of conversations with clients to help meet them 567 00:27:32,800 --> 00:27:34,800 Speaker 5: where they are and get them through these markets. 568 00:27:35,200 --> 00:27:37,119 Speaker 2: Sandy, thank you so much for joining us. Sandy Bregor 569 00:27:37,160 --> 00:27:40,800 Speaker 2: She is the chief client officer for Experient based in 570 00:27:40,840 --> 00:27:43,320 Speaker 2: San Francisco, California, but joining us live here in our 571 00:27:43,320 --> 00:27:46,840 Speaker 2: Bloomberg Interactive Broker Studio. Appreciate her making the tip all 572 00:27:46,840 --> 00:27:49,960 Speaker 2: the way across the country just to see us. Go figure. 573 00:27:50,480 --> 00:27:54,359 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 574 00:27:54,440 --> 00:27:57,480 Speaker 1: weekdays at ten am Eastern on Apple car Play and 575 00:27:57,480 --> 00:28:00,800 Speaker 1: Android Otto with the Bloomberg Business. You can also listen 576 00:28:00,880 --> 00:28:04,000 Speaker 1: live on Amazon Alexa from our flagship New York station, 577 00:28:04,359 --> 00:28:07,080 Speaker 1: Just Say Alexa playing Bloomberg eleven thirty. 578 00:28:08,880 --> 00:28:11,040 Speaker 2: John Mandyke Joints is here because we're going to shift gears. 579 00:28:11,040 --> 00:28:13,800 Speaker 2: He's the chief executive officer of Urban Green Council. He 580 00:28:13,880 --> 00:28:16,040 Speaker 2: joins here on a Bloomberg and Arctor Brokeer studio. Welcome 581 00:28:16,400 --> 00:28:18,440 Speaker 2: for coming in. You get extra points for not mailing it. 582 00:28:18,720 --> 00:28:24,640 Speaker 2: Mailing it. In Electrification of buildings, how do we power 583 00:28:24,640 --> 00:28:25,439 Speaker 2: our buildings today? 584 00:28:26,200 --> 00:28:28,560 Speaker 8: Well, you know, in New York City, the largest source 585 00:28:28,600 --> 00:28:31,840 Speaker 8: of carbon comes from furnaces, boilers, and hot water heaters. 586 00:28:32,200 --> 00:28:35,879 Speaker 8: It's natural gas in the basement for heat and hot water. Okay, 587 00:28:36,320 --> 00:28:39,760 Speaker 8: so that's our largest source of carbon. That's our biggest. 588 00:28:39,280 --> 00:28:41,320 Speaker 2: Podcast was in clean burning energy. 589 00:28:41,440 --> 00:28:42,960 Speaker 8: Well you know it was compared to coal. 590 00:28:43,120 --> 00:28:45,280 Speaker 2: Okay, but that's still not good enough, but it's not 591 00:28:45,320 --> 00:28:45,760 Speaker 2: good enough. 592 00:28:45,800 --> 00:28:50,240 Speaker 4: Okay, Okay, So I recently moved from a hybrid electric 593 00:28:50,600 --> 00:28:53,960 Speaker 4: powered and gas powered home where gas did our hot 594 00:28:54,000 --> 00:28:59,000 Speaker 4: water and our stoven oven into an all electric place. 595 00:28:59,560 --> 00:29:03,480 Speaker 4: And here's what happened. The oven doesn't work very well. 596 00:29:03,640 --> 00:29:07,160 Speaker 4: The stove works incredibly well because it's induction the hot 597 00:29:07,160 --> 00:29:10,920 Speaker 4: water heaters. It's kind of okay. Our electric bill is huge, 598 00:29:11,320 --> 00:29:14,280 Speaker 4: but we got no gas bill. Our electric bill is 599 00:29:14,640 --> 00:29:17,720 Speaker 4: so much now, it's more than it was before with 600 00:29:17,880 --> 00:29:18,920 Speaker 4: gas added. 601 00:29:19,280 --> 00:29:22,160 Speaker 8: Right. Well, you know, there are artificial incentives built in 602 00:29:22,160 --> 00:29:24,320 Speaker 8: the system for natural gas, and those are starting to 603 00:29:24,360 --> 00:29:28,640 Speaker 8: be addressed. For example, in New York State, if you're 604 00:29:28,680 --> 00:29:31,600 Speaker 8: within one hundred feet of a gas line, you can 605 00:29:31,640 --> 00:29:34,320 Speaker 8: demand to have service and everybody pays for that. 606 00:29:34,520 --> 00:29:34,840 Speaker 2: Wow. 607 00:29:35,200 --> 00:29:39,160 Speaker 8: And so we have to get to where electricity has 608 00:29:39,200 --> 00:29:41,200 Speaker 8: the true price and gas has the true price, and 609 00:29:41,280 --> 00:29:44,160 Speaker 8: so those two can compete. And over time, you know, 610 00:29:45,160 --> 00:29:47,800 Speaker 8: with conflicts around the world and where we see climate 611 00:29:47,840 --> 00:29:50,520 Speaker 8: policies going, there's going to be a carbon price built 612 00:29:50,560 --> 00:29:51,479 Speaker 8: into natural gas. 613 00:29:51,960 --> 00:29:56,160 Speaker 2: Okay, Well, how do we most sufficiently electrify a building? 614 00:29:57,200 --> 00:30:00,480 Speaker 8: Right, Well, we do it by installing heat pumps for 615 00:30:00,480 --> 00:30:03,560 Speaker 8: for heat and hot water and that's that's the main 616 00:30:03,600 --> 00:30:06,200 Speaker 8: way to do it in New York. Like I said, 617 00:30:06,200 --> 00:30:09,920 Speaker 8: our problem isn't lighting. Our problem is the heating and 618 00:30:09,960 --> 00:30:11,880 Speaker 8: hot water. And then of course you need the grid 619 00:30:11,920 --> 00:30:14,480 Speaker 8: to green at the same time, and that's happening as well. 620 00:30:14,840 --> 00:30:18,400 Speaker 4: Is an electric powered hot water heater more or less 621 00:30:18,400 --> 00:30:20,959 Speaker 4: efficient than a gas powered hot water heater? Same with 622 00:30:21,040 --> 00:30:22,560 Speaker 4: like a dryer, for example, because you can get a 623 00:30:22,600 --> 00:30:26,000 Speaker 4: dryer that's a gas has a gas heated element. But 624 00:30:26,360 --> 00:30:28,680 Speaker 4: in these newer buildings where they don't allow gas, you're 625 00:30:28,680 --> 00:30:31,000 Speaker 4: stuck with electric. Are they Is it as efficient? Right? 626 00:30:31,040 --> 00:30:34,040 Speaker 8: And they're they're getting efficient for sure, and they're getting 627 00:30:34,080 --> 00:30:34,440 Speaker 8: to pair of. 628 00:30:34,480 --> 00:30:35,520 Speaker 4: Heat pump works really well. 629 00:30:35,560 --> 00:30:38,880 Speaker 8: The heat pump is very efficient. It can be way 630 00:30:38,880 --> 00:30:41,520 Speaker 8: more efficient than the natural gas boiler furnace that you 631 00:30:41,560 --> 00:30:41,960 Speaker 8: already have. 632 00:30:42,320 --> 00:30:44,640 Speaker 4: What about when it comes to the other appliances though. 633 00:30:44,480 --> 00:30:46,960 Speaker 8: They're getting there and you know not yet hot water. No, 634 00:30:47,480 --> 00:30:50,200 Speaker 8: there are hot water systems that are there, okay, And 635 00:30:50,240 --> 00:30:52,600 Speaker 8: we need more technology to come on board when it 636 00:30:52,600 --> 00:30:55,360 Speaker 8: comes to hot water, particularly to scale across all the 637 00:30:55,800 --> 00:30:59,160 Speaker 8: different type of building types and cities. But you know, 638 00:30:59,160 --> 00:31:02,320 Speaker 8: we have the largest decarbonization market in the world now 639 00:31:02,320 --> 00:31:04,760 Speaker 8: in New York City, and that's going to spur innovation 640 00:31:04,920 --> 00:31:06,160 Speaker 8: to help serve this market. 641 00:31:06,600 --> 00:31:08,680 Speaker 4: The thing that's a challenge to me when thinking about this, 642 00:31:08,720 --> 00:31:10,560 Speaker 4: and look, no question, I want to do what's right 643 00:31:10,640 --> 00:31:14,840 Speaker 4: for the environment, what's right for the world. Where is 644 00:31:14,880 --> 00:31:17,840 Speaker 4: this power being generated? Because it's not being generated at 645 00:31:17,840 --> 00:31:21,160 Speaker 4: Indian Point anymore. That's shutdown, so it's not nuclear. Here 646 00:31:21,200 --> 00:31:23,320 Speaker 4: in New York City, we're still relying on a lot 647 00:31:23,360 --> 00:31:25,800 Speaker 4: of dirty sources to power. So whether or not we're 648 00:31:25,840 --> 00:31:29,440 Speaker 4: heating with gas or electricity net net doesn't really matter 649 00:31:29,520 --> 00:31:31,800 Speaker 4: if that electricity is generated by a dirty source. 650 00:31:32,080 --> 00:31:35,800 Speaker 8: It does because today's heat pumps are so more energy 651 00:31:35,840 --> 00:31:38,400 Speaker 8: efficient that you're just using less energy, which means you're 652 00:31:38,440 --> 00:31:40,440 Speaker 8: using less carbon and it almost doesn't matter what the 653 00:31:40,480 --> 00:31:40,920 Speaker 8: grid is. 654 00:31:41,040 --> 00:31:41,280 Speaker 1: Right. 655 00:31:41,480 --> 00:31:43,360 Speaker 8: But at that same time, the grid is greening in 656 00:31:43,400 --> 00:31:45,440 Speaker 8: New York. Right, we did lose Indian Point that was 657 00:31:45,480 --> 00:31:47,240 Speaker 8: about a third of our power in New York City 658 00:31:47,280 --> 00:31:50,720 Speaker 8: that was fossil fuel free. That's being replaced by hydropower 659 00:31:51,240 --> 00:31:53,800 Speaker 8: and renewable power that's coming in as soon as twenty 660 00:31:53,840 --> 00:31:57,400 Speaker 8: twenty six. So the grid is greening and that's going 661 00:31:57,440 --> 00:31:59,840 Speaker 8: to help when we start to plug more things into 662 00:31:59,880 --> 00:32:00,760 Speaker 8: that grid. 663 00:32:00,680 --> 00:32:02,800 Speaker 2: Is the grid? So I read the book The Grid. 664 00:32:02,880 --> 00:32:04,200 Speaker 2: There is a book out there and I have John 665 00:32:04,240 --> 00:32:06,400 Speaker 2: Tucker reading it now and it talks about the history 666 00:32:06,400 --> 00:32:08,800 Speaker 2: of electricity in this country, which is fascinating. I look 667 00:32:08,880 --> 00:32:10,720 Speaker 2: like a geek sitting on the Jersey shore too summer. 668 00:32:11,120 --> 00:32:12,600 Speaker 4: You got to read that. I gotta read this book. 669 00:32:12,720 --> 00:32:15,040 Speaker 2: No way to pick up girls. I think reading the 670 00:32:15,080 --> 00:32:19,000 Speaker 2: book about the grid, you know, can our grid today 671 00:32:19,120 --> 00:32:21,240 Speaker 2: handle increased electrical demand? 672 00:32:21,840 --> 00:32:25,720 Speaker 8: It can for heating, right, So our organization modeled all 673 00:32:25,720 --> 00:32:28,120 Speaker 8: one million buildings in New York City against the local 674 00:32:28,200 --> 00:32:30,600 Speaker 8: kind of deis and grid. What we found is there's 675 00:32:30,640 --> 00:32:33,360 Speaker 8: a forty two percent headroom in the winter to plug 676 00:32:33,400 --> 00:32:36,040 Speaker 8: things into the grid. So said a different way. Our 677 00:32:36,040 --> 00:32:38,520 Speaker 8: grid is built out for the hottest day of the year, right, 678 00:32:38,560 --> 00:32:41,200 Speaker 8: and when we turn those air conditioners off, forty two 679 00:32:41,240 --> 00:32:44,040 Speaker 8: percent of our grid goes dormant. It's actually a very 680 00:32:44,080 --> 00:32:47,520 Speaker 8: inefficient use of assets. So there's forty two percent room 681 00:32:47,880 --> 00:32:50,080 Speaker 8: to plug stuff into the grid. Because our heating source 682 00:32:50,160 --> 00:32:52,400 Speaker 8: is not electrical based today, it's fossil fuel based. 683 00:32:53,400 --> 00:32:56,120 Speaker 4: So what would you say is the biggest thing holding 684 00:32:56,200 --> 00:33:00,720 Speaker 4: us back when it comes to widescale adoption of more 685 00:33:00,760 --> 00:33:04,440 Speaker 4: electricity versus and less gas. Is it because these legacy 686 00:33:04,480 --> 00:33:07,240 Speaker 4: systems are going to take so long to replace? 687 00:33:08,240 --> 00:33:10,640 Speaker 8: It's that we have laws now in New York State 688 00:33:10,640 --> 00:33:13,120 Speaker 8: and New York City and actually about one hundred jurisdictions 689 00:33:13,160 --> 00:33:15,760 Speaker 8: around the country that are forcing the transition. 690 00:33:16,120 --> 00:33:18,280 Speaker 4: So what that does is it tells developers, Okay, if 691 00:33:18,320 --> 00:33:21,200 Speaker 4: you're gonna build this, you can't include a gas line here. 692 00:33:21,280 --> 00:33:23,080 Speaker 8: It has to be all electric, right, correct, So in 693 00:33:23,120 --> 00:33:26,800 Speaker 8: New York City, starting this year, buildings under seven floors 694 00:33:26,840 --> 00:33:29,640 Speaker 8: new buildings have to be all electric, and then in 695 00:33:30,080 --> 00:33:33,040 Speaker 8: twenty seven all new construction needs to be all electric 696 00:33:33,120 --> 00:33:33,800 Speaker 8: in New York City. 697 00:33:33,840 --> 00:33:36,280 Speaker 4: I've talked to developers who say, Okay, the regulations are 698 00:33:36,280 --> 00:33:38,800 Speaker 4: not there yet, but it is such a pain for 699 00:33:38,920 --> 00:33:41,320 Speaker 4: us to deal with gas these days that we're just 700 00:33:41,360 --> 00:33:42,200 Speaker 4: going all electric. 701 00:33:43,040 --> 00:33:45,400 Speaker 2: Are there? And so what are the incentives today for 702 00:33:45,760 --> 00:33:47,560 Speaker 2: Like I'm just thinking of Jamie Diamond building that new 703 00:33:47,560 --> 00:33:51,080 Speaker 2: building on Park Avenue. I mean talk about going to 704 00:33:51,120 --> 00:33:53,600 Speaker 2: be state of the art when it's finished. I'm guessing 705 00:33:53,640 --> 00:33:55,800 Speaker 2: he's gonna hang all the plaque how it's this compliant 706 00:33:55,800 --> 00:33:57,400 Speaker 2: and that complaint and we won this award and we're 707 00:33:57,400 --> 00:34:00,360 Speaker 2: triple green this what's a new building like that today? 708 00:34:00,400 --> 00:34:02,200 Speaker 2: What are they trying to do for their energy? 709 00:34:02,880 --> 00:34:05,720 Speaker 8: Well? Sure, but there's the heart of your question on incentives. 710 00:34:05,760 --> 00:34:08,040 Speaker 8: There are way more incentives now than there's ever been 711 00:34:08,400 --> 00:34:10,840 Speaker 8: the history of this issue, right primarily from the federal 712 00:34:10,840 --> 00:34:13,880 Speaker 8: government through the Inflation Reduction Act, but also by states 713 00:34:13,920 --> 00:34:17,239 Speaker 8: around the country that are you know, putting their mouth 714 00:34:17,480 --> 00:34:19,000 Speaker 8: putting their money with their mouth is when it comes 715 00:34:19,000 --> 00:34:19,880 Speaker 8: to public policies. 716 00:34:21,200 --> 00:34:24,160 Speaker 4: Are you optimistic about the greenification of the grid, Like, 717 00:34:24,280 --> 00:34:26,239 Speaker 4: is this something you know we talk about offshore wind 718 00:34:26,280 --> 00:34:29,200 Speaker 4: for example, look at all the politics around that and 719 00:34:29,200 --> 00:34:31,960 Speaker 4: look at all the issues it faces. We just talked 720 00:34:32,000 --> 00:34:33,879 Speaker 4: last week to Will Wade, one of our reporters here, 721 00:34:33,960 --> 00:34:37,400 Speaker 4: who wrote about nuclear power plants around the country that 722 00:34:37,480 --> 00:34:41,279 Speaker 4: are coming back online potentially because they turn those things off. 723 00:34:41,320 --> 00:34:43,040 Speaker 4: And they were like, oh, wait a second, this is 724 00:34:43,040 --> 00:34:45,480 Speaker 4: actually a green source of power, anan point, not one 725 00:34:45,520 --> 00:34:49,120 Speaker 4: of them because they're dismantling. It is the timeline here, realistic, 726 00:34:49,640 --> 00:34:50,319 Speaker 4: I think it is. 727 00:34:50,360 --> 00:34:52,840 Speaker 8: Look at you know, offshore wind went live at the 728 00:34:52,960 --> 00:34:55,040 Speaker 8: end of last year off of Long Island. For a 729 00:34:55,040 --> 00:34:57,759 Speaker 8: part of Long Island, there's two big mega projects for 730 00:34:57,800 --> 00:35:01,760 Speaker 8: offshore wind. We're getting Canadian hydro power in there's upstate 731 00:35:01,840 --> 00:35:04,840 Speaker 8: New York excess renewable power. We actually have a bottleneck 732 00:35:04,960 --> 00:35:07,200 Speaker 8: and we're building transmission lines to get that into New 733 00:35:07,280 --> 00:35:09,920 Speaker 8: York City. So I'm confident that that the grid is 734 00:35:09,920 --> 00:35:12,520 Speaker 8: going to green. The impetus is there. 735 00:35:12,680 --> 00:35:14,680 Speaker 2: Is that a state or is it a federal mandate, 736 00:35:14,680 --> 00:35:18,640 Speaker 2: because I could see this breaking on political lines political 737 00:35:18,719 --> 00:35:20,760 Speaker 2: you know, red states maybe being more open to green, 738 00:35:21,600 --> 00:35:22,760 Speaker 2: you know, so on and so forth. 739 00:35:23,080 --> 00:35:26,239 Speaker 8: Yeah, sure it does fall along political lines. But the 740 00:35:26,239 --> 00:35:28,920 Speaker 8: renewable energy that's happening in New York is state driven. 741 00:35:29,920 --> 00:35:32,040 Speaker 8: The offshore wind is controlled by the federal government. But 742 00:35:32,080 --> 00:35:34,200 Speaker 8: those were cited years and years ago, and so those 743 00:35:34,239 --> 00:35:35,360 Speaker 8: projects are moving forward. 744 00:35:35,560 --> 00:35:38,480 Speaker 4: What about solar and solar efficiency? You know, I talked 745 00:35:38,480 --> 00:35:39,800 Speaker 4: to some neighbors who are like, Okay, we want to 746 00:35:39,800 --> 00:35:41,880 Speaker 4: do solar, but the payoff is it's a very expensive 747 00:35:41,880 --> 00:35:44,400 Speaker 4: capital expense. Financing is really high now because of rates, 748 00:35:44,600 --> 00:35:46,600 Speaker 4: and they're like, yeah, it pays off in like twelve years. 749 00:35:46,640 --> 00:35:47,360 Speaker 4: That's a long time. 750 00:35:47,640 --> 00:35:51,239 Speaker 8: Yeah, it is, And but we need all of the above, right, 751 00:35:51,280 --> 00:35:53,160 Speaker 8: And so the issue in big cities is we just 752 00:35:53,200 --> 00:35:55,200 Speaker 8: don't have a lot of place to put solar panels, right, 753 00:35:55,200 --> 00:35:57,400 Speaker 8: and so offshore wind is going to be the future 754 00:35:57,400 --> 00:36:00,000 Speaker 8: of renewable power, and that's where you see the projects going. 755 00:36:00,040 --> 00:36:02,280 Speaker 4: We looked into covering it at our old apartment building, 756 00:36:02,280 --> 00:36:06,160 Speaker 4: which was like five floors ninety units, and the assessment 757 00:36:06,200 --> 00:36:09,520 Speaker 4: we got Paul was like, it'll cover five percent of 758 00:36:09,560 --> 00:36:12,760 Speaker 4: your monthly usage. Really if you did the whole roof. Yeah, yeah, 759 00:36:12,800 --> 00:36:14,239 Speaker 4: just because it's a big building and not a lot 760 00:36:14,280 --> 00:36:14,800 Speaker 4: of roof space. 761 00:36:14,840 --> 00:36:15,040 Speaker 3: Yeah. 762 00:36:15,320 --> 00:36:18,040 Speaker 2: Well, Bloomberg, I mean our Bloomberg, our Princeton campus in 763 00:36:18,040 --> 00:36:21,680 Speaker 2: New Jersey, huge wind solary down there. Yeah. 764 00:36:21,760 --> 00:36:23,400 Speaker 4: So, and just depends on the location. 765 00:36:23,560 --> 00:36:25,359 Speaker 2: Yeah, so they're all in. So I'm not sure we're 766 00:36:25,440 --> 00:36:27,480 Speaker 2: Sunday get in New Jersey, but we'll see, all right, 767 00:36:27,600 --> 00:36:29,680 Speaker 2: John Mandike, thanks so much for joining us. John Mandyke, 768 00:36:29,680 --> 00:36:32,440 Speaker 2: he's a chief executive officer of the Urban Green Council. 769 00:36:32,520 --> 00:36:35,480 Speaker 2: Join us here in our Bloomberg Interactive Broker's studio talking 770 00:36:35,520 --> 00:36:37,279 Speaker 2: about I mean, you know, electric vehicles get a lot 771 00:36:37,320 --> 00:36:41,080 Speaker 2: of the headlines about energy transition, but there's a similar 772 00:36:41,360 --> 00:36:45,040 Speaker 2: trend going for buildings around the country, and so we'll 773 00:36:45,040 --> 00:36:46,760 Speaker 2: see how that technology develops. 774 00:36:48,840 --> 00:36:52,719 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 775 00:36:52,800 --> 00:36:56,320 Speaker 1: weekdays at ten am Eastern on applecar Play and Android 776 00:36:56,360 --> 00:36:59,120 Speaker 1: Auto with the Bloomberg Business app. You can also listen 777 00:36:59,239 --> 00:37:02,319 Speaker 1: live on on Alexa from our flagship New York station 778 00:37:02,719 --> 00:37:05,080 Speaker 1: just say Alexa playing Bloomberg eleven. 779 00:37:07,000 --> 00:37:09,560 Speaker 2: Tesla more news out today that I think is buffeting 780 00:37:09,600 --> 00:37:13,560 Speaker 2: the stock here, first and foremost, Tesla autopilot probe escalates 781 00:37:13,560 --> 00:37:16,640 Speaker 2: with US regulator's data demand, so that's an issue for 782 00:37:16,680 --> 00:37:20,440 Speaker 2: the company. And then also reported today that Tesla is 783 00:37:20,440 --> 00:37:23,400 Speaker 2: going to have some April decline in China shipment, so 784 00:37:23,480 --> 00:37:26,000 Speaker 2: again goes to that demand issue. Let's bring it all 785 00:37:26,160 --> 00:37:29,360 Speaker 2: to bear here. Craig Trudell, Global autos editor for Bloomberg News. 786 00:37:29,480 --> 00:37:33,640 Speaker 2: He joins us from London via zoom. Craig, again, a 787 00:37:33,640 --> 00:37:35,680 Speaker 2: lot of issues, a lot of cross currents for Tesla. 788 00:37:35,760 --> 00:37:38,640 Speaker 2: Let's start with issue number one today, which is just 789 00:37:38,680 --> 00:37:41,440 Speaker 2: this autopilot probe here. Give us the background here and 790 00:37:41,480 --> 00:37:43,920 Speaker 2: give us kind of the lay of the land on 791 00:37:43,920 --> 00:37:45,680 Speaker 2: this particular issue. 792 00:37:45,920 --> 00:37:48,040 Speaker 9: Yeah, this goes back quite a way. I mean, we 793 00:37:48,920 --> 00:37:52,680 Speaker 9: saw federal scrutiny of autopilot almost from the beginning when 794 00:37:52,680 --> 00:37:55,440 Speaker 9: there was a fatal crash the way back in twenty sixteen, 795 00:37:55,880 --> 00:37:59,120 Speaker 9: around the time that Tesla started to market this technology. 796 00:38:00,440 --> 00:38:03,839 Speaker 9: It sort of, you know, gives people the impression from 797 00:38:03,840 --> 00:38:08,279 Speaker 9: the name, at least among some people, that you can 798 00:38:08,320 --> 00:38:11,799 Speaker 9: maybe tune out, or that the driver will the car 799 00:38:11,840 --> 00:38:15,839 Speaker 9: will run on autopilot. In this case and in the 800 00:38:15,840 --> 00:38:19,200 Speaker 9: case of full self driving, however, you the driver are 801 00:38:19,239 --> 00:38:23,080 Speaker 9: in control and are responsible for the vehicle. And one 802 00:38:23,120 --> 00:38:25,839 Speaker 9: of the big problems that Tesla has had has been 803 00:38:25,960 --> 00:38:31,600 Speaker 9: keeping drivers in control and attentive, and so you know, 804 00:38:32,239 --> 00:38:35,560 Speaker 9: in August of twenty twenty one, the National Highway Traffic 805 00:38:35,640 --> 00:38:39,880 Speaker 9: Safety Administration opened a probe into whether autopilot was defective. 806 00:38:40,760 --> 00:38:44,239 Speaker 9: While it closed that probe recently, it opened a new 807 00:38:44,280 --> 00:38:47,680 Speaker 9: one having to do with a recall. In December, so 808 00:38:48,000 --> 00:38:53,160 Speaker 9: Tesla tried over the air software update to guard against 809 00:38:53,200 --> 00:38:56,040 Speaker 9: misuse of the system, and there have been twenty craft 810 00:38:56,160 --> 00:38:59,080 Speaker 9: is just in a handful of months since that over 811 00:38:59,080 --> 00:39:02,439 Speaker 9: the air software update. So NITSA is looking into whether 812 00:39:02,520 --> 00:39:05,200 Speaker 9: or not that recall was effective and whether more needs 813 00:39:05,200 --> 00:39:05,560 Speaker 9: to be done. 814 00:39:05,600 --> 00:39:08,719 Speaker 2: Here is there is there any feeling from Tesla or 815 00:39:08,719 --> 00:39:12,600 Speaker 2: any statement from Tesla about how they plan to either 816 00:39:12,719 --> 00:39:16,840 Speaker 2: fix this or maybe update the autopilot and improve the 817 00:39:16,880 --> 00:39:18,120 Speaker 2: autopilot technology. 818 00:39:19,560 --> 00:39:23,480 Speaker 9: I think we we will keep a close eye on 819 00:39:23,520 --> 00:39:26,439 Speaker 9: Elon Musk's X feed that seems to be this sort 820 00:39:26,440 --> 00:39:29,680 Speaker 9: of you know, only means in which this company communicates 821 00:39:29,360 --> 00:39:34,520 Speaker 9: uh to some degree. But he I mean, I do 822 00:39:34,600 --> 00:39:37,120 Speaker 9: think one of the interesting things here is we have 823 00:39:37,440 --> 00:39:40,319 Speaker 9: seen him in the past sort of rail against you know, 824 00:39:40,400 --> 00:39:44,520 Speaker 9: outdated uh you know language around recalls, and in the 825 00:39:44,560 --> 00:39:48,319 Speaker 9: case of autopilot, you know, I mentioned the over the 826 00:39:48,360 --> 00:39:51,560 Speaker 9: air nature of the fix that they ployed in December. 827 00:39:51,880 --> 00:39:54,520 Speaker 9: I think one of the keys for investors is a 828 00:39:54,760 --> 00:39:57,480 Speaker 9: concern as to whether or not that's going to be sufficient. 829 00:39:58,120 --> 00:40:02,760 Speaker 9: Do they need to install a different type of camera 830 00:40:02,920 --> 00:40:05,080 Speaker 9: or in some vehicles, even just a camera at all 831 00:40:05,560 --> 00:40:10,000 Speaker 9: to pay attention to whether the driver is paying attention 832 00:40:10,560 --> 00:40:14,160 Speaker 9: and monitoring the driver and doing more to to sort 833 00:40:14,200 --> 00:40:18,919 Speaker 9: of measure and evaluate engagement. And you know, they're really 834 00:40:18,960 --> 00:40:20,880 Speaker 9: being asked to cough up quite a bit of data 835 00:40:20,880 --> 00:40:26,120 Speaker 9: here and are being given a deadline of July first 836 00:40:26,239 --> 00:40:29,880 Speaker 9: to hand over that information, to give n it, you 837 00:40:29,920 --> 00:40:33,520 Speaker 9: know what it needs to determine whether whether this recall 838 00:40:33,920 --> 00:40:34,479 Speaker 9: did enough. 839 00:40:34,719 --> 00:40:37,840 Speaker 2: Yeah, And This feels really important for Tesla because I 840 00:40:37,840 --> 00:40:39,960 Speaker 2: think Tesla that in terms of the investment narrative, they're 841 00:40:39,960 --> 00:40:41,759 Speaker 2: trying to get away from focusing on the number of 842 00:40:41,840 --> 00:40:45,720 Speaker 2: vehicles sold, thinking more about Tesla as a AI company, 843 00:40:45,760 --> 00:40:50,399 Speaker 2: as a robotaxi company, as just the technology that can 844 00:40:50,480 --> 00:40:52,960 Speaker 2: maybe be used across the industry. So they need to 845 00:40:53,000 --> 00:40:54,120 Speaker 2: get this stuff right, don't they. 846 00:40:55,120 --> 00:40:57,359 Speaker 9: They do? And I mean to Tesla's credit. I mean, 847 00:40:57,640 --> 00:41:01,080 Speaker 9: the over the air capability that they built into their 848 00:41:01,160 --> 00:41:04,239 Speaker 9: vehicles was really novel when they were first, you know, 849 00:41:04,280 --> 00:41:07,480 Speaker 9: sort of coming onto the scene. I'll never forget that. 850 00:41:07,560 --> 00:41:10,360 Speaker 9: You know, the Model three was coming out and the 851 00:41:10,400 --> 00:41:13,440 Speaker 9: break distance was was not up up to snuff for 852 00:41:13,560 --> 00:41:16,399 Speaker 9: Consumer Reports, which was evaluating this, you know, new car 853 00:41:16,480 --> 00:41:19,640 Speaker 9: that was really important to test at the time, and uh, 854 00:41:19,880 --> 00:41:22,759 Speaker 9: you know, speaking of Musks, I guess then Twitter feed, 855 00:41:23,400 --> 00:41:25,680 Speaker 9: uh you know, he you know, sort of said I'm 856 00:41:25,680 --> 00:41:29,680 Speaker 9: on it. They they didn't over the air software update. Uh, 857 00:41:29,760 --> 00:41:33,120 Speaker 9: Consumer Reports retested the car and and threw in over 858 00:41:33,160 --> 00:41:36,120 Speaker 9: the air update they were able to shorten the breaking distance, 859 00:41:36,160 --> 00:41:39,520 Speaker 9: and uh, you know, the question here is whether autopilot, 860 00:41:39,560 --> 00:41:42,400 Speaker 9: if they do need to come up with a hardware pollution. 861 00:41:42,680 --> 00:41:46,000 Speaker 9: To fix a defect with autopilot, that's going to be 862 00:41:46,040 --> 00:41:49,760 Speaker 9: expensive or has the potential to be very expensive, especially 863 00:41:49,760 --> 00:41:53,440 Speaker 9: since the company that doesn't have a franchise dealer network, 864 00:41:53,480 --> 00:41:56,799 Speaker 9: they would have to you know, deploy service vans uh 865 00:41:56,880 --> 00:41:59,399 Speaker 9: to to cars and and go fix the stuff, which 866 00:41:59,440 --> 00:42:00,799 Speaker 9: is going to cost a heck of a lot more 867 00:42:00,800 --> 00:42:03,839 Speaker 9: money than flapping a thoughtware update over the year. 868 00:42:03,880 --> 00:42:06,319 Speaker 2: All right, issue number two, at least for today as 869 00:42:06,360 --> 00:42:08,960 Speaker 2: it relates to the stock Preliminary data from the China's 870 00:42:09,200 --> 00:42:13,760 Speaker 2: Passenger Car Association showed shipments from Tesla's Shanghai factory dropped 871 00:42:14,160 --> 00:42:18,239 Speaker 2: eighteen percent year on year in April, even as the 872 00:42:18,239 --> 00:42:22,600 Speaker 2: broader market for new new energy cars grew. Not good 873 00:42:22,640 --> 00:42:24,480 Speaker 2: news for Tesla. What do we know? 874 00:42:25,719 --> 00:42:28,480 Speaker 9: No, and it's it's been the case that this is 875 00:42:28,800 --> 00:42:30,520 Speaker 9: a company that tends to have a lot of up 876 00:42:30,840 --> 00:42:34,920 Speaker 9: and down months in terms of how they you know, 877 00:42:35,000 --> 00:42:37,640 Speaker 9: build their cars. They've tried to move away from this, 878 00:42:37,760 --> 00:42:40,480 Speaker 9: and I don't think we've necessarily seen a whole lot 879 00:42:40,480 --> 00:42:44,200 Speaker 9: of follow through there where you tend to see you know, 880 00:42:44,480 --> 00:42:47,719 Speaker 9: rolls in the beginning of each quarter, followed by a 881 00:42:47,800 --> 00:42:50,560 Speaker 9: sort of end of quarter push and so you know, 882 00:42:50,920 --> 00:42:55,160 Speaker 9: March December. You know, these end of quarter months you 883 00:42:55,239 --> 00:42:58,640 Speaker 9: tend to see an uptick, but but then a sort 884 00:42:58,640 --> 00:43:01,279 Speaker 9: of drop off in the squit months. I think in 885 00:43:01,320 --> 00:43:04,040 Speaker 9: this case though, you know, the year over year change 886 00:43:04,920 --> 00:43:10,080 Speaker 9: is you know, in and of itself plenty alarming, especially 887 00:43:10,080 --> 00:43:12,560 Speaker 9: when you compare Tesla against you know, some of its 888 00:43:13,239 --> 00:43:17,000 Speaker 9: Chinese competitor. A lot of these companies really are not 889 00:43:17,200 --> 00:43:20,759 Speaker 9: having the demand problems that we're seeing Tesla have. And 890 00:43:21,000 --> 00:43:24,400 Speaker 9: I think it's also problematic in the sense that, you know, 891 00:43:24,480 --> 00:43:27,200 Speaker 9: wholesales from this plant in Shanghai are also a reflection 892 00:43:27,280 --> 00:43:30,600 Speaker 9: of demand here in Europe because this this is a 893 00:43:30,600 --> 00:43:34,680 Speaker 9: plant that has been a export hub for Tesla, and 894 00:43:34,760 --> 00:43:39,240 Speaker 9: so it's not only an indication of some softness in China, 895 00:43:39,280 --> 00:43:42,280 Speaker 9: but potentially in export markets including Europe. 896 00:43:42,560 --> 00:43:45,440 Speaker 2: Interesting. Interesting, So that kind of goes to that. I 897 00:43:45,440 --> 00:43:48,640 Speaker 2: think probably the overarching concern for Tesla and just for 898 00:43:48,719 --> 00:43:52,200 Speaker 2: the EV business in general, is this the end demand, 899 00:43:52,360 --> 00:43:54,320 Speaker 2: ultimate end demand for evs here. So I have to 900 00:43:54,320 --> 00:43:55,840 Speaker 2: see how that plays out. Craig Trudell, thank you so 901 00:43:55,920 --> 00:43:58,720 Speaker 2: much for joining us. Craig Trudell Global all those editor 902 00:43:58,760 --> 00:44:03,480 Speaker 2: for Bloomberg News. From our beautiful New York headquarters in London, 903 00:44:03,560 --> 00:44:06,600 Speaker 2: Queen Victoria Street. Coming at us via zoom again. Tesla 904 00:44:06,600 --> 00:44:09,680 Speaker 2: stock off two point eight percent today, off twenty eight 905 00:44:09,680 --> 00:44:12,840 Speaker 2: percent year to date on a trailing twelve month basis, 906 00:44:12,840 --> 00:44:15,080 Speaker 2: eking out about a five and a half percent gain here. 907 00:44:15,120 --> 00:44:18,160 Speaker 2: So there's definitely some concerns there for Tesla across the board. 908 00:44:18,200 --> 00:44:19,960 Speaker 2: I think they're pretty well known, but again for me, 909 00:44:20,560 --> 00:44:22,520 Speaker 2: it kind of all comes down to where is demand 910 00:44:22,600 --> 00:44:26,480 Speaker 2: for evs in general, not just for Tesla. I think 911 00:44:26,480 --> 00:44:28,320 Speaker 2: that's a big concern for a lot of investors and 912 00:44:28,320 --> 00:44:30,959 Speaker 2: a lot of for the traditional automakers as well. Market 913 00:44:30,960 --> 00:44:34,120 Speaker 2: cap five hundred and seventy billion dollars for Tesla. 914 00:44:34,560 --> 00:44:39,080 Speaker 1: This is the Bloomberg Intelligence podcast, available on Apples, Spotify, 915 00:44:39,280 --> 00:44:40,320 Speaker 1: and anywhere. 916 00:44:39,920 --> 00:44:41,359 Speaker 4: Else you will get your podcasts. 917 00:44:41,520 --> 00:44:44,600 Speaker 1: Listen live each weekday ten am to noon Eastern on 918 00:44:44,680 --> 00:44:48,160 Speaker 1: Bloomberg dot Com, Behar Radio app, tune In, and the 919 00:44:48,200 --> 00:44:51,399 Speaker 1: Bloomberg Business App. You can also watch us live every 920 00:44:51,440 --> 00:44:54,600 Speaker 1: weekday on YouTube and always on the Bloomberg terminal