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Speaker 1: This is Bloomberg Intelligence with Alex Steinhl and Paul Sweeny.

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Speaker 2: The real ap performance has been the US corporate high yield.

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Speaker 3: Are the companies lean enough? Have they trimmed all the fats?

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Speaker 2: The semiconductor business is a really cyclical business.

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Speaker 4: Breaking market headlines and corporate news from across the globe.

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Speaker 3: Do investors like the M and A that we've seen?

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Speaker 2: These are two big time blue chip companies.

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Speaker 3: The window between the peak and cut changing super fast.

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Speaker 1: Bloomberg Intelligence with Alex Steinhl and Paulsweenye on Bloomberg Radio.

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Speaker 2: On Today's Bloomberg Intelligence Show, we dig inside the big

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Speaker 2: business stories impacting Wall Street and the global markets.

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Speaker 3: Each and every week, we're going to provide in depth

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Speaker 3: research and data on some of the two thousand companies

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Speaker 3: and one hundred and thirty industries are analysts cover worldwide.

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Speaker 2: Today we'll talk Tesla and how the company remains the

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Speaker 2: Wilson was a valuable automaker.

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Speaker 3: Plus our conversation with Rockwell Automation CEO Blake Morritt. But first,

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Speaker 3: another week of earnings and another dismal forecast, this time

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Speaker 3: from the likes of US, the company posting disappointing fourth

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Speaker 3: quarter earnings and providing twenty twenty four guidance that missed

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Speaker 3: the mark.

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Speaker 2: For more in this co host John Tucker and I

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Speaker 2: spoke with Bloomberg Intelligence senior transport logistics and shipping analysts

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Speaker 2: Lea Clascow. I first asked them about why the results

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Speaker 2: were so disappointing.

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Speaker 5: They're really just reeling from the impact from the labor

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Speaker 5: negotiations they had last year. So running up ahead of

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Speaker 5: those negotiations, a lot of shippers were like, you know something,

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Speaker 5: I'm not going to use UPS because I might want

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Speaker 5: to use one of their competitors like FedEx or even

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Speaker 5: the postal service, because I don't know if my stuff

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Speaker 5: is going to be able to get where it needs

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Speaker 5: to go on time. So a lot of that diverted freight,

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Speaker 5: you know, is kind of deleveraging effect on the network,

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Speaker 5: which really weighs on margins. And then you know, they

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Speaker 5: had the negotiations. They have a contract in place, which

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Speaker 5: is fantastic for UPS and also for the teams stairs,

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Speaker 5: you know, but a lot of the costs, the initial

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Speaker 5: costs of that new contract are in year one, and

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Speaker 5: so that's like a real big hit to margins. That

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Speaker 5: coupled with the fact it's taking some time for them

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Speaker 5: to win back some of that share. Management noted that

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Speaker 5: they've won back about sixty percent of that share. It's

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Speaker 5: going to take time for them to get that share

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Speaker 5: back to where it needs to be. And again, these

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Speaker 5: are networks, and when you're talking about freight transportation, it's

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Speaker 5: all about building density because the more stuff you can

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Speaker 5: deliver at the same time, you know, the better the

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Speaker 5: margins are. And that's what they're really working through right now.

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Speaker 5: And you know, and what I thought was kind of

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Speaker 5: one of the more interesting little tidbits is that they

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Speaker 5: think that this year that the small package volume from

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Speaker 5: an industry standpoint, is only going to increase like one percent,

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Speaker 5: which to me I thought was a little pessimistic. But

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Speaker 5: you know, all in all, they're really dealing with tepid demand,

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Speaker 5: they're dealing with rising costs, and you know, they're obviously

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Speaker 5: taking those costs pretty seriously. As you know, they're laying

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Speaker 5: off or planning the layoff or reduce heads however nicely

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Speaker 5: you want to say it, twelve thousand people. And then

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Speaker 5: also they're looking to get there. They're putting their brokerage business,

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Speaker 5: which is called Coyote under a strategic review. Coyote is

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Speaker 5: the third largest freight broker out there. So one of

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Speaker 5: the largest publicly traded ones are C. H. Robinson. People

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Speaker 5: might not know that, might may know that name. Also

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Speaker 5: r XO is another pure play brokerage as Landstar. There's

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Speaker 5: a couple private ones. A lot of large companies like

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Speaker 5: JB Hunt have their own brokerage business in house.

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Speaker 6: You get sorry for a series of stupid questions, but

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Speaker 6: this is who you're talking to. What is a freight

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Speaker 6: what's their role on what do they do a freight brokerage?

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Speaker 5: So it's they're pretty much get together buyers and sellers

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Speaker 5: of freight. So if you think about it, so if

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Speaker 5: you're a shipper and you have a load that you

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Speaker 5: need to get from point A to point B, you

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Speaker 5: might use a broker to find a truck to carry

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Speaker 5: that load, and the broker kind of makes a spread

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Speaker 5: in between what their charge the shipper and what they're

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Speaker 5: paying the trucking company. What's happened is, you know, it's

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Speaker 5: a very cyclical business. Uh, there's there's there's great highs

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Speaker 5: and kind of depressing loads and margins can be very

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Speaker 5: volatile during this like, so.

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Speaker 6: This this just a backup of this brokerage that they

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Speaker 6: own that they're now getting rid of. That you could

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Speaker 6: have gone to them and they could have picked a

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Speaker 6: shipper other than you know, the company that owns them UPS.

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Speaker 5: Yeah, so you know, so UPS could potentially use its

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Speaker 5: own in house brokerage to move a trailer load of

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Speaker 5: freight between two of their sorting facilities. Or if you're

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Speaker 5: Walmart and you know you have an extra load that

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Speaker 5: you need to get from your DC to you know,

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Speaker 5: your spring Lake Walmart. I don't think there's a spring

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Speaker 5: Walmart and spring Lake Brick. You know, you might, you

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Speaker 5: might use them because either the carriers that you're contracted

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Speaker 5: with don't have the capacity, or you're trying to take

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Speaker 5: advantage of cheap rates and spot market, and right now

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Speaker 5: truckload rates are extremely cheap. They've been bouncing along the

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Speaker 5: bottom for quite some time, and so shippers might like

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Speaker 5: to leverage that. You know, intermodal is an example. So

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Speaker 5: you know the intermodal space, which is railroads. You know

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Speaker 5: that's when you see like two containers on top of

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Speaker 5: a railroad. You know, they're facing increased competition because of

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Speaker 5: the loose conditions that are on the spot market, and

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Speaker 5: a lot of those shippers might use brokerage to try

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Speaker 5: to find a carrier to carry their loads.

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Speaker 2: Our Thanks to Bloomberg Intelligence senior Transport, Logistics and Shipping

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Speaker 2: analysts Lea Clasico, let's turn.

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Speaker 3: Out to Boeing posting fourth quarter earnings, cashul and revenue

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Speaker 3: that surpassed analyst expectations, but the planemaker for gold guidance

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Speaker 3: for twenty twenty four as it faces lapses in safety.

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Speaker 2: To help recap the earnings, co host Emily Grafeo and

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Speaker 2: I spoke with Bloomberg Intelligence Senior Aerospace, Defense and Airlines

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Speaker 2: analysts George Ferguson. He began the conversation by discussing his

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Speaker 2: key takeaways from fourth quarter earnings.

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Speaker 7: I thought that the quarter's numbers looked pretty much in

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Speaker 7: line with what we expected, maybe a little bit better.

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Speaker 7: Commercial airplane. Some of the cash flow generation was a

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Speaker 7: little bit better. A lot of it from deposits, you

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Speaker 7: know that they're getting from airplanes as they move through production.

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Speaker 7: So I wouldn't call that sort of I mean, it's

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Speaker 7: good cash FLOWD what I wouldn't call it super high quality,

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Speaker 7: right like when you're generating a lot of cash from

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Speaker 7: your core operations. Their their global services business had some

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Speaker 7: very nice margins, even better than we expected, and that's

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Speaker 7: been a star performer.

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Speaker 8: It's good to see that holding up.

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Speaker 7: But yeah, I think the real story here is about

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Speaker 7: going forward. How they, how they, you know, nip these

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Speaker 7: quality problems in the bud. And so I do think

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Speaker 7: that as I think about it more sort of pulling

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Speaker 7: back guidance, I think that indicates that management is ready

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Speaker 7: to do whatever it takes to get these.

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Speaker 8: Quality problems in hand.

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Speaker 7: And so, you know, my senses maybe they think, look,

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Speaker 7: we we you know, we may not want to be

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Speaker 7: whole to an exact number of airplanes in twenty twenty

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Speaker 7: four as we dig through our manufacturing process and through

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Speaker 7: the supply chain processes and make sure that we're getting

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Speaker 7: a quality airplane out the door every single time.

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Speaker 8: So if pulling guidance is all.

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Speaker 7: About that and the efforts around that, at what it's

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Speaker 7: going to take, and focusing again on quality over just

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Speaker 7: management management metrics, I think that could be a very

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Speaker 7: very good sign. You know, again the management team is

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Speaker 7: crystal focused on this is what we have to do.

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Speaker 9: How different is that than what the company has already

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Speaker 9: been doing for the last few years. Were they not

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Speaker 9: as focused on quality and safety beforehand? Like how much

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Speaker 9: of this is truly a turnaround and a change for Boeing.

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Speaker 7: So I think I think the business has just materially changed.

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Speaker 7: I was at an aerospace defense conference last week, and

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Speaker 7: you know, I didn't need the conference to tell me this,

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Speaker 7: but I was prize that it was persistent and that

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Speaker 7: and what I heard from people at the conference over

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Speaker 7: and over again is that finding employees and employee turnover

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Speaker 7: is still a problem.

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Speaker 8: In this industry. It's still a problem now, you know.

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Speaker 7: I think that the higher you up in the tiers,

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Speaker 7: like a Boeing or an RTX or a GE, it's

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Speaker 7: easier to retain employees because you provide great benefit packages.

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Speaker 8: Everybody wants to be there. But even they have had

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Speaker 8: a lot of turnover.

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Speaker 7: And so I think pre pandemic, you could you could

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Speaker 7: potentially fall back on the thought and in the manufacturing

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Speaker 7: process of Boeing that you had very, very seasoned.

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Speaker 8: Folks on the line that have been well.

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Speaker 7: Trained, seen years in and years out of the business

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Speaker 7: and we're always going to get it done right. But

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Speaker 7: I think with the amount of turnover they've had. They

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Speaker 7: really need to go back and rethink, you know, how

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Speaker 7: they supervise the line, how they train the employees, and

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Speaker 7: they have to they have to create more stability by

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Speaker 7: investing in those people. And so I think this business

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Speaker 7: has been to rely changed since the pandemic. I will

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Speaker 7: also say that, you know, Bowling has been sort of

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Speaker 7: pushing this outsourcing of the business again. They were doing

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Speaker 7: this pre pandemic, and this is all about, you know,

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Speaker 7: they want to sort of turn it into the auto industry,

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Speaker 7: where you outsource subcomponents, you bring it together and rent

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Speaker 7: and you put together an airplane. And that's turned the

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Speaker 7: supply chain into a much bigger, you know, portion of

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Speaker 7: of what you're doing. And it's global as well, right

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Speaker 7: You're making some of these doors in Malaysia. Things are

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Speaker 7: coming from all over the world into renting to turn

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Speaker 7: into an airplane. And I think that's making it more

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Speaker 7: difficult to keep track of the supply chain and the

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Speaker 7: quality and the supply chain and what folks are doing

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Speaker 7: down at those factories. And so I think it's terially changed.

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Speaker 2: That's the problem, So George, and that sounds like a

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Speaker 2: problem to me. That was probably decades in the making,

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Speaker 2: i e. You know, going more to subcontractors and and

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Speaker 2: you know, as part of globalization. Perhaps is there a

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Speaker 2: sense that this is a really a long term fix

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Speaker 2: that investors should not expect anything months. Maybe it's gonna

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Speaker 2: take years here.

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Speaker 7: Well, so I mean, I don't think they're going to

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Speaker 7: stop production. I do think they're going to dig through

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Speaker 7: the supply chain, you know, sort of hopefully methodically, and

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Speaker 7: figure out where there could be sources of problem. But

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Speaker 7: I think what it means is that you're just not

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Speaker 7: going to see potentially the margin and the cash flow

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Speaker 7: out of this business that you saw a pre pandemic

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Speaker 7: for years. While they spend more money and more time

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Speaker 7: and invest in people and go down and make sure

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Speaker 7: that everything works. Some stuff may need to be reconsolidated

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Speaker 7: back at sub tier suppliers or even at Boeing if

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Speaker 7: they can't get comfortable that they're going to get the

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Speaker 7: quality out of it. I think it drags. Like I

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Speaker 7: said in Earnings, Cash Generation two years from now.

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Speaker 2: At the same time, what I hear from you and

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Speaker 2: from others in the airline businesses, there's a big demand

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Speaker 2: for new aircraft out there. So how do they balance

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Speaker 2: maybe slowing down the line a little bit with the

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Speaker 2: fact that they're customers need more and more of their product.

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Speaker 7: So I think it I think it hurts. I think

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Speaker 7: you'd like to be breaking to higher build rates. Now

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Speaker 7: air Bus will and air Bus will get market share,

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Speaker 7: but I think in the long term if you don't,

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Speaker 7: if you don't fix the quality problem here, you'll lose

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Speaker 7: long term share and competitiveness and that and that would

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Speaker 7: be really really bad.

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Speaker 9: What does this mean for Boeing stock price? Because compare

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Speaker 9: it to air Bus, it's underperforming on a year basis

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Speaker 9: Boeing versus Airbus. So is this enough to bring investors

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Speaker 9: new money into Boeing or is Airbus still going to

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Speaker 9: be the outperformer here?

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Speaker 7: So I mean, I think you know, Boeing investors are

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Speaker 7: going to have to take the long view here, right

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Speaker 7: because again I don't see any quick fix, you know,

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Speaker 7: quick leaping to much higher build rates, much better cash generation,

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Speaker 7: because I think they need to invest back in their business.

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Speaker 7: Airbus apparent doesn't apparently have this problem. I think more

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Speaker 7: of the supply chain is bill in house at Airbus

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Speaker 7: or at least better controlled, And so I think you're

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Speaker 7: going to see that Airbus is going to perform fundamentally better.

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Speaker 2: Here thanks to Bloomberg Intelligence. Senior Aerospace, Defense and Airlines

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Speaker 2: analyst George ferguson.

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Speaker 3: Coming up why Tesla's profit margin may deserve more appreciation

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Speaker 3: than it's actually getting.

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Speaker 2: You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in

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Speaker 2: depth research and data on two thousand companies and one

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Speaker 2: hundred and thirty industries. You can access Bloomberg Intelligence via

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Speaker 2: b I go on the terminal.

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Speaker 3: I'm Paul Sweeney, Ana Malex Steel, and this is Bloomberg.

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Speaker 4: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 4: weekdays at ten am Eastern on.

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Speaker 1: Apocarplay and Android Auto with the Bloomberg Business App. Listen

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Speaker 1: on demand wherever you get your podcasts, or watch us

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Speaker 1: live on YouTube.

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Speaker 3: Let's turn out a Tesla, who stock has tumbled so

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Speaker 3: far this year, the auto industry warns a plunging ed demand,

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Speaker 3: and Wall Street analyst scale back on expectations.

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Speaker 2: Co host Emliker Feel joined me as we spoke with

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Speaker 2: Bloomberg News Editor in chief Emeritus Matt Winkler on this

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Speaker 2: He discussed why Tesla's profit margin deserves more appreciation than

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Speaker 2: it's getting.

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Speaker 10: After losing fifty percent of shareholder worth since November twenty

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Speaker 10: twenty one, Tesla still is, surprise, surprise, the tenth most

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Speaker 10: valuable company, and it has the greatest market capitalization of

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Speaker 10: any maker of cars and trucks in the world. And

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Speaker 10: there's a reason for that why that is so today,

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Speaker 10: and it's because Tesla's margins of profit profit margins are

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Speaker 10: superior to any automaker, including by the way, you could

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Speaker 10: say its most interesting competitor, BYD from China, which if

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Speaker 10: you look at the last quarter, became the global sales

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Speaker 10: leader for zero mission vehicles, which of course it's the

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Speaker 10: Tesla space, which it has owned. And with all of that,

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Speaker 10: with all of that, if you like bad news, Tesla

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Speaker 10: still is holding its value. And I will say this

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Speaker 10: that if you looked at bid over the past six months,

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Speaker 10: it's actually trading it it's low. It's declined significantly since August.

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Speaker 10: So if there was if you like a reevaluation in

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Speaker 10: the market, if anything, Tesla is more than holding its

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Speaker 10: own and if anything, BYD is depreciating, and the rest

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Speaker 10: of the auto industry, of course doesn't have anything close

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Speaker 10: to the profit margins of Tesla. So that's the story.

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Speaker 10: I kind of like it, only because after last week,

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Speaker 10: everybody seemed to be going in one direction if you

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Speaker 10: read the narrative. The prevailing narrative was, you know, Tesla's

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Speaker 10: days are numbered not so fast.

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Speaker 9: So why are people overlooking? And is the fact that

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Speaker 9: Tesla is down more than fifty percent from its all

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Speaker 9: time high? Does that mean to you that this profitability

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Speaker 9: is actually not priced in yet?

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Speaker 10: Tesla has been a volatile stock, and remember we're talking

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Speaker 10: about an adolescent here when public in twenty ten, and

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Speaker 10: it's had many periods like this one where it has

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Speaker 10: retreated significantly, only to rebound with greater fervor. You've seen

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Speaker 10: that time and again. You know we're likely to see

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Speaker 10: it again. But here's an example. If you were to

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Speaker 10: go right now to the say Fortune magazine most admired Companies,

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Speaker 10: Tesla isn't there. Now, Think about that for a second.

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Speaker 10: This is a company that has completely transformed the auto

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Speaker 10: industry as we know it. It has essentially convinced people

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Speaker 10: that zero omission vehicles or the future, and even the

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Speaker 10: very traditional auto giants that competes against have conceded that

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Speaker 10: they have to make evs, and you would have thought

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Speaker 10: that would be in and of itself significant enough to

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Speaker 10: be admired, But no, it's not there. So there's a

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Speaker 10: lot of, if you will, noise that's associated with Tesla

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Speaker 10: because of its co founder, Elon Musk, and often the

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Speaker 10: noise obscures the signal, which is the vehicle itself.

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Speaker 2: Hey, Matt, I know you've been a long time owner

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Speaker 2: of the Tesla automobile, so you follow this industry probably

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Speaker 2: as close as anyone, just because I suspect it's always

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Speaker 2: been of interest to you. I think the issue now

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Speaker 2: for investors, not just for Tesla investors, is what is

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Speaker 2: the ultimate demand for evs out there? And now there's

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Speaker 2: a question. We saw Ford pull back the production of

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Speaker 2: the Ford F one fifty Lightning, which I've test driven.

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Speaker 2: It is an awesome vehicle at ninety four thousand dollars,

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Speaker 2: or better be, what is your sense as to the

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Speaker 2: man picture for electric vehicles in this country?

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Speaker 10: Okay, so you're quite right. I do own a Tesla models.

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Speaker 10: I never owned the shares for obvious reasons, because it

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Speaker 10: would be a conflict of interest. In Bloomberg. Being Bloomberg,

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Speaker 10: we're very careful about such things. But I am at

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Speaker 10: the one hundred thousand threshold on my Tesla and there's

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Speaker 10: no sign of any kind of deterioration. And I would

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Speaker 10: say that many people who write about Tesla probably don't

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Speaker 10: have the experience of the people who own Tesla's and

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Speaker 10: if you ask people who own Tesla's pretty much the

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Speaker 10: satisfaction there is right near the top. And actually Consumer

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Speaker 10: Report spares that out. So I would say that the

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Speaker 10: demand for evs is only going to increase. There was

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Speaker 10: recently a story on Bloomberg about more competition in California,

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Speaker 10: which has been the same that has led.

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Speaker 2: But that's California. It's like a different country.

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Speaker 8: Let's be honest.

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Speaker 10: It's a case of yeah, there are more people buying evs,

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Speaker 10: and they're not buying as just Tesla as anymore. Tesla

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Speaker 10: had a seventy percent market share and now it's down

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Speaker 10: to sixty something percent. But Tesla's still growing. And that's

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Speaker 10: the whole point, is that the pie is getting bigger,

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Speaker 10: and Tesla's piece of the pie is going to get biggers.

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Speaker 2: From people say I want to buy a Tesla, I

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Speaker 2: don't want to buy an ev you know, it's like

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Speaker 2: I want to buy a Tesla because a teslacas it's

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Speaker 2: such a cool car core brand, But I'm not buying

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Speaker 2: it because per se, because it's an EV.

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Speaker 8: Yeah.

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Speaker 10: And look, here's the thing. Tesla makes only zero mission vehicles.

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Speaker 10: It's competing against companies outside of BYD and a handful

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Speaker 10: of others that make all these other fossil fuel machines.

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Speaker 10: That's a very complicated equation, which is why the profitability

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Speaker 10: in the auto industry is inferior compared to Tesla. Tesla

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Speaker 10: only has to focus on one thing, and so far,

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Speaker 10: if you look at it, it's done very well. You know,

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Speaker 10: first there was the models, and then there was the

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Speaker 10: Model X, and then there's the Model Why you know,

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Speaker 10: the Model three. All of these vehicles actually have made

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Speaker 10: Tesla a very formidable company, and there's more to come.

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Speaker 10: I mean, the reason why the stock fell as much

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Speaker 10: as it did is because Elon Musk actually said we're

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Speaker 10: going to take a pause, so to speak, to get

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Speaker 10: an even cheaper EV model in front of people in

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Speaker 10: the years to come.

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Speaker 2: What do you think that China's situation is for Elon

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Speaker 2: must from a competitive standpoints, selling those Teslas into China,

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Speaker 2: visav byd and some of the other Chinese manufacturers.

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Speaker 10: The vehicle speaks for itself, and to the extent that

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Speaker 10: consumers make that choice, it's a good thing for Tesla

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Speaker 10: to be in China.

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Speaker 2: Our thanks to Bloomberg News Editor in Chief Emeritus Matt Winkler.

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Speaker 3: Amazon dot Com abandoning its plan one point four billion

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Speaker 3: dollar acquisition of rumba maker I Robana. This comes after

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Speaker 3: a clash with European Union regulators who had threatened to

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Speaker 3: block that.

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Speaker 2: Co host Molly Smith and I spoke about this and

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Speaker 2: the latest and anti trust enforcement with Bloomberg Intelligence senior

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Speaker 2: litigation antitrust analyst Jennifer ree I first asked Jennifer if

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Speaker 2: she was surprised the deal between Amazon and I Robot

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Speaker 2: fell apart.

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Speaker 11: It wasn't at all, because back in July, the EU

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Speaker 11: said we have concerns about this deal. I mean they're

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Speaker 11: concerned about competition in the market for robot vacuums. I

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Speaker 11: think there's this idea that anti trust is only interested

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Speaker 11: in really big deals. But at the end of the day,

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Speaker 11: no matter how small the business is or how few

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Speaker 11: consumers it might impact, if there's an anti trust problem,

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Speaker 11: they still have concerns and it's still an illegal deal

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Speaker 11: in the eyes of regulators. So here they said in

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Speaker 11: a couple different countries in Europe that Amazon was a

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Speaker 11: particularly important distributor for robot vacuums and they could foreclose competitors.

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Speaker 12: I mean, but Amazon's in the market for everything obviously,

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Speaker 12: not just you know, the robo vacuum market. So and

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Speaker 12: surely there must be other real competitors out there that

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Speaker 12: have a more narrowed focus on the robo vacuum space

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Speaker 12: than Amazon.

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Speaker 11: Well likely, and that's probably what they argued. But the

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Speaker 11: thing is, the European Commission said, but this is a

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Speaker 11: particularly important channel because you won't only own the vacuum,

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Speaker 11: but you're going to own distribution. An important distribution is

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Speaker 11: like a vertical acquisition, right. It's an integration that they

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Speaker 11: had a problem with because that would give them the

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Speaker 11: ability to foreclose some of these other smaller makers of

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Speaker 11: these vacuums that need to sell on Amazon. And apparently

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Speaker 11: in some countries there wasn't enough other competition, so they

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Speaker 11: had some concerns. There could have been a remedy offered,

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Speaker 11: but the company decided not to do that. So it

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Speaker 11: was kind of a stalemate and honestly they were going

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Speaker 11: to get sued in the US, right, That's what I think.

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Speaker 12: Yes, OK, I kind of feel like this sets like

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Speaker 12: a bit of a tone maybe for I would think

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Speaker 12: there's got to be other similar consumer electronics companies the

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Speaker 12: where Amazon is a big competitor. That's like, I mean,

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Speaker 12: does this set some kind of a standard maybe that

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Speaker 12: this could be an issue going forward in the antitrust world.

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Speaker 11: Well, I think what it tells you in terms of mergers,

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Speaker 11: I think it'll tell you that anytime these big tech platforms,

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Speaker 11: particularly Amazon, try to continue to expand their businesses this

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Speaker 11: way through mergers, they're going to have trouble. They're going

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Speaker 11: to face hurdles in the EU, UK, US, The UK

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Speaker 11: didn't have too many problems with this one. But I

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Speaker 11: think it does tell us something about the FTC's lawsuit.

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Speaker 11: You know, they have now this ongoing lawsuit against Amazon,

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Speaker 11: and they're looking at all these different businesses where that

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Speaker 11: compete with Amazon but also sell on the marketplace and

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Speaker 11: have some concerns about it. So you know, some of

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Speaker 11: the concept that went into the concerns here will be

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Speaker 11: part of that lawsuit in the US. We're a long

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Speaker 11: way away from an outcome there. That's pretty new, but

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Speaker 11: it's pending.

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Speaker 2: Chen when you talk to some of your friends in

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Speaker 2: the business, the M and A attorneys out there is

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Speaker 2: the feeling like almost it really is different out there.

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Speaker 2: It is really appreciably harder to get anything approved these days.

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Speaker 11: Oh, Paul, Absolutely, it is so much harder. There's so

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Speaker 11: much more scrutiny, it takes longer, and that we're seeing

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Speaker 11: that in the merger agreements. They are different than they

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Speaker 11: were five years ago. There are much bigger breakup fees

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Speaker 11: for sellers because they're concerned about the investigation, which can

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Speaker 11: take a year. They're concerned about a lawsuit. You have

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Speaker 11: much longer end dates. I mean, it used to be

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Speaker 11: the end date of a year seem like a really

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Speaker 11: long end date. Now we're looking at like two years

436
00:23:05,760 --> 00:23:08,080
Speaker 11: in some of these agreements because they know they might

437
00:23:08,119 --> 00:23:09,080
Speaker 11: have to go to litigation.

438
00:23:10,280 --> 00:23:11,720
Speaker 2: So, yeah, there's a big.

439
00:23:11,600 --> 00:23:12,400
Speaker 11: Difference right now.

440
00:23:12,480 --> 00:23:15,200
Speaker 2: And is that a sense that this it's a short

441
00:23:15,280 --> 00:23:17,480
Speaker 2: term reflection of who's in the White House, or is

442
00:23:17,480 --> 00:23:21,720
Speaker 2: that just a sense that I don't know, Congress or

443
00:23:22,200 --> 00:23:25,160
Speaker 2: society is anti big deal, or.

444
00:23:25,480 --> 00:23:27,760
Speaker 11: It's more about who's in the White House, because it's

445
00:23:27,760 --> 00:23:30,600
Speaker 11: about the appointments at the FTC and DJ making these

446
00:23:30,600 --> 00:23:33,639
Speaker 11: anti trust decisions. Right, So it just happens that we

447
00:23:33,760 --> 00:23:36,520
Speaker 11: have two people making decisions that the DOJ and FTC

448
00:23:36,760 --> 00:23:41,040
Speaker 11: that are particularly activists, particularly progressive in this area, believe

449
00:23:41,080 --> 00:23:43,480
Speaker 11: anti trust enforcement has been way too lax for years

450
00:23:43,520 --> 00:23:44,760
Speaker 11: and they're trying to change things.

451
00:23:44,920 --> 00:23:48,280
Speaker 12: Are these people's jobs potentially at risk if if Biden

452
00:23:48,359 --> 00:23:53,639
Speaker 12: doesn't win re election, Absolutely, and what would the potential

453
00:23:54,600 --> 00:23:56,920
Speaker 12: other candidates view on antitrust be.

454
00:23:57,960 --> 00:24:00,800
Speaker 11: So the interesting thing is that it really depends on

455
00:24:00,800 --> 00:24:04,600
Speaker 11: who's appointed. So let's just say the next president is Republican, right,

456
00:24:04,800 --> 00:24:08,000
Speaker 11: Trump or somebody else? Right Now, the Republicans are kind

457
00:24:08,000 --> 00:24:09,560
Speaker 11: of a mixed bag. I mean, it used to be

458
00:24:09,640 --> 00:24:11,360
Speaker 11: you could always think they're going to be way more

459
00:24:11,359 --> 00:24:13,840
Speaker 11: business friendly, they're going to appreciate the efficiencies that come

460
00:24:13,880 --> 00:24:16,520
Speaker 11: from consolidation, right, But now you kind of have this

461
00:24:16,640 --> 00:24:20,480
Speaker 11: populous side of the Republican Party, and some of the

462
00:24:20,520 --> 00:24:22,880
Speaker 11: people in that group also believe we need to crack

463
00:24:22,920 --> 00:24:25,000
Speaker 11: down on andy trust, like sort of the Josh Hollies

464
00:24:25,040 --> 00:24:27,280
Speaker 11: of the world. So I think if you get a

465
00:24:27,320 --> 00:24:30,560
Speaker 11: Republican it's going to depend exactly on who they put

466
00:24:30,800 --> 00:24:32,800
Speaker 11: as the chief of Anti Trust at DOJ and who

467
00:24:32,800 --> 00:24:34,560
Speaker 11: the commissioners are that get appointed at the.

468
00:24:34,520 --> 00:24:38,480
Speaker 2: FTC our Thanks to Bloomberg Intelligence, senior litigation analyst Jennifer Ree.

469
00:24:38,680 --> 00:24:40,159
Speaker 3: Coming up on the program, We're going to get the

470
00:24:40,200 --> 00:24:43,280
Speaker 3: latest on earnings from Rockwell Automation directly from the company.

471
00:24:43,400 --> 00:24:46,280
Speaker 2: C e oh, you're listening to the Bloomberg Intelligence on

472
00:24:46,320 --> 00:24:48,880
Speaker 2: Bloomberg Radio, providing in depth research and data on two

473
00:24:48,880 --> 00:24:51,440
Speaker 2: thousand companies and one hundred and thirty industries. You can

474
00:24:51,480 --> 00:24:53,959
Speaker 2: access Bloomberg Intelligence via bi go on the terminal.

475
00:24:54,040 --> 00:25:01,360
Speaker 3: I'm Paul Sweeney, anam Alex Steele. This is Bloomberg.

476
00:25:01,160 --> 00:25:09,160
Speaker 4: You're listening to the Bloomberg Intelligence Podcast. Catch us live

477
00:25:09,240 --> 00:25:11,080
Speaker 4: weekdays at ten am Eastern on.

478
00:25:11,119 --> 00:25:14,600
Speaker 1: Applecar Play and Android Auto with the Bloomberg Business app.

479
00:25:14,640 --> 00:25:17,479
Speaker 1: You can also listen live on Amazon Alexa from our

480
00:25:17,520 --> 00:25:21,880
Speaker 1: flagship New York station Just Say Alexa playing Bloomberg eleven thirty.

481
00:25:23,320 --> 00:25:27,200
Speaker 3: Rockwell Automation posting first quarter propit that missed analyst expectations.

482
00:25:27,200 --> 00:25:29,439
Speaker 3: So for more, Paul and I spoke with Rockwell CEO

483
00:25:29,520 --> 00:25:32,679
Speaker 3: Blake Morett. We discussed the state of American manufacturing and

484
00:25:32,720 --> 00:25:35,760
Speaker 3: the use of automation and technology. I first asked him

485
00:25:36,160 --> 00:25:38,920
Speaker 3: why the street was so disappointed in his numbers.

486
00:25:39,240 --> 00:25:42,560
Speaker 13: Well, I think they did hear the message of continued

487
00:25:42,760 --> 00:25:47,760
Speaker 13: underlying demand remaining strong. But we had a shipment miss

488
00:25:47,760 --> 00:25:51,199
Speaker 13: in the quarter. A lot of that was execution, and

489
00:25:51,440 --> 00:25:54,320
Speaker 13: we look at that as timing for shipments that will

490
00:25:54,320 --> 00:25:56,760
Speaker 13: come back in the year. You know, we had a

491
00:25:57,240 --> 00:26:01,080
Speaker 13: very strong growth last year of seventeen percent top line

492
00:26:01,160 --> 00:26:04,760
Speaker 13: twenty eight percent adjust to EPs. This is a bit

493
00:26:04,800 --> 00:26:08,160
Speaker 13: of a reset year as we get done shipping off

494
00:26:08,240 --> 00:26:12,040
Speaker 13: that older backlog that piled up as a result of

495
00:26:12,160 --> 00:26:16,880
Speaker 13: supply chain shortages and go back to booking and billing

496
00:26:17,200 --> 00:26:20,520
Speaker 13: incoming new orders. And so we're seeing lower growth in

497
00:26:20,560 --> 00:26:24,480
Speaker 13: the year with some growing pains, but the underlying demand

498
00:26:24,600 --> 00:26:25,679
Speaker 13: remains pretty strong.

499
00:26:25,920 --> 00:26:27,600
Speaker 2: That's kind of where I want to go. Blake, tell

500
00:26:27,680 --> 00:26:30,520
Speaker 2: us who your customers are and what are your customers

501
00:26:30,520 --> 00:26:33,040
Speaker 2: telling you these days, we may.

502
00:26:32,880 --> 00:26:38,480
Speaker 13: Be the most pervasive technology in American manufacturing, so everything

503
00:26:38,560 --> 00:26:45,199
Speaker 13: from automotive and battery manufacturing to warehouse automation, food and beverage,

504
00:26:45,359 --> 00:26:50,240
Speaker 13: life sciences, energy, both traditional fossil fuel as well as

505
00:26:50,280 --> 00:26:54,800
Speaker 13: renewables across that whole spectrum our technology, our hardware, and

506
00:26:54,840 --> 00:26:57,560
Speaker 13: our software and our services are pretty prevalent.

507
00:26:58,200 --> 00:27:00,639
Speaker 3: So when do you know, Blake, if it's still the

508
00:27:00,680 --> 00:27:04,280
Speaker 3: supply chain issues that you're still working through versus just

509
00:27:04,320 --> 00:27:09,120
Speaker 3: weaker demand, Like do you even know when that moment shifts?

510
00:27:10,240 --> 00:27:13,960
Speaker 13: Well, So we had an encouraging quarter in the demand

511
00:27:14,080 --> 00:27:17,159
Speaker 13: side in that in Q one, so the quarter ended

512
00:27:17,720 --> 00:27:22,159
Speaker 13: in December. We did see double digit sequential growth and

513
00:27:22,440 --> 00:27:26,480
Speaker 13: orders off of the trough in our fiscal year, our

514
00:27:26,480 --> 00:27:31,000
Speaker 13: fiscal Q four last year, and those orders increases have

515
00:27:31,119 --> 00:27:35,480
Speaker 13: continued into January, so that's a very positive sign. Now,

516
00:27:36,080 --> 00:27:38,360
Speaker 13: a lot of our distributors, and most of our business

517
00:27:38,359 --> 00:27:42,719
Speaker 13: does go through electrical distributors, they had higher inventory than

518
00:27:42,760 --> 00:27:45,479
Speaker 13: they wanted and we expect in the coming couple of

519
00:27:45,520 --> 00:27:48,680
Speaker 13: months that that inventory gets to more of a normal

520
00:27:48,840 --> 00:27:53,359
Speaker 13: level so that their orders to us reflect the strong

521
00:27:53,520 --> 00:27:57,160
Speaker 13: underlying demand from machine builders and end users.

522
00:27:57,680 --> 00:28:01,120
Speaker 2: Blake, how much lead time do you have in your business?

523
00:28:01,119 --> 00:28:04,679
Speaker 2: What's your order book and kind of how much how

524
00:28:04,760 --> 00:28:05,919
Speaker 2: much lead tien do you really have?

525
00:28:06,840 --> 00:28:11,880
Speaker 13: So the product business, which is the majority of our business,

526
00:28:12,240 --> 00:28:15,199
Speaker 13: those lead times are typically days and weeks in a

527
00:28:15,280 --> 00:28:18,920
Speaker 13: normal period, and part of our challenge in Q one

528
00:28:19,640 --> 00:28:23,560
Speaker 13: was returning all of our products to those fast lead times.

529
00:28:23,600 --> 00:28:27,760
Speaker 13: But in a normal, you know, environment, we get an

530
00:28:27,880 --> 00:28:30,880
Speaker 13: order and it either gets shipped that day off our

531
00:28:30,920 --> 00:28:34,159
Speaker 13: distributors shelf, or we're able to make it and ship

532
00:28:34,200 --> 00:28:37,359
Speaker 13: it within days or a few weeks for those products.

533
00:28:37,600 --> 00:28:41,640
Speaker 3: So are you an early cycle economic read? Is that

534
00:28:41,720 --> 00:28:42,280
Speaker 3: fair to say?

535
00:28:43,520 --> 00:28:47,240
Speaker 13: You know, we certainly have exposure early in the cycle,

536
00:28:47,680 --> 00:28:51,000
Speaker 13: but the so called late cycle is also an important

537
00:28:51,000 --> 00:28:55,360
Speaker 13: part of our business. Whether you're talking about the traditional

538
00:28:55,400 --> 00:29:01,600
Speaker 13: process industries or life sciences, we've got pretty broad exposure early,

539
00:29:01,800 --> 00:29:05,320
Speaker 13: mid and late cycle. Although I have to say with

540
00:29:05,440 --> 00:29:09,080
Speaker 13: the supply chain backlog that we had in twenty twenty

541
00:29:09,120 --> 00:29:13,120
Speaker 13: two and twenty three, with the distributor overstock that we're

542
00:29:13,120 --> 00:29:16,360
Speaker 13: working through now, it's hard to pin a particular point

543
00:29:16,400 --> 00:29:19,120
Speaker 13: in the traditional cycle on this time.

544
00:29:19,440 --> 00:29:21,280
Speaker 3: Well, also because you're exposed to sort of all the

545
00:29:21,320 --> 00:29:25,640
Speaker 3: structural changes too, like infrastructure act A, chips ACT, the IRA,

546
00:29:25,920 --> 00:29:28,720
Speaker 3: So that's a structural shift even though you're still cyclical.

547
00:29:28,720 --> 00:29:32,360
Speaker 3: I can imagine that being quite confusing. So based on

548
00:29:32,400 --> 00:29:35,040
Speaker 3: where you are and all the different cycles, how are

549
00:29:35,080 --> 00:29:38,480
Speaker 3: we doing, Like how's the global economy doing, you know.

550
00:29:39,400 --> 00:29:42,080
Speaker 13: Particularly in our home market in the US, where we

551
00:29:42,200 --> 00:29:47,320
Speaker 13: have the largest market share, we see continued strong underlying demand.

552
00:29:47,840 --> 00:29:52,400
Speaker 13: So we're expecting our orders to be up, you know,

553
00:29:52,720 --> 00:29:57,560
Speaker 13: low single digits, and we've guided to one point up

554
00:29:57,600 --> 00:30:02,520
Speaker 13: in terms of organic shipments. Underlining demand I think remained

555
00:30:02,600 --> 00:30:06,320
Speaker 13: strong and one of the key indicators for me is

556
00:30:06,400 --> 00:30:11,040
Speaker 13: continued low unemployment rates in our most important markets.

557
00:30:11,680 --> 00:30:14,320
Speaker 2: So, Blake, I'm looking at the PGeo function on the

558
00:30:14,320 --> 00:30:16,680
Speaker 2: Bloomberg termol and I could see just by geography looking

559
00:30:16,720 --> 00:30:19,200
Speaker 2: at your revenue again, sixty percent roughly of your revenue

560
00:30:19,200 --> 00:30:21,560
Speaker 2: as North America. So give us a sense of kind

561
00:30:21,560 --> 00:30:23,840
Speaker 2: of North America versus rest of the world. What do

562
00:30:23,920 --> 00:30:25,920
Speaker 2: you guys seeing North America is.

563
00:30:25,840 --> 00:30:32,080
Speaker 13: The strongest market. China has significant problems right now, and

564
00:30:32,520 --> 00:30:37,480
Speaker 13: Europe still dealing with some of their structural issues. A

565
00:30:37,520 --> 00:30:39,680
Speaker 13: lot of the business we get in Europe is actually

566
00:30:39,800 --> 00:30:44,400
Speaker 13: for export back to North America from the machine builders

567
00:30:44,440 --> 00:30:48,840
Speaker 13: over there. But we expect for this year North America

568
00:30:48,960 --> 00:30:51,160
Speaker 13: is going to be the strongest market and that's good

569
00:30:51,160 --> 00:30:53,360
Speaker 13: for us because we've got home field advantage.

570
00:30:53,520 --> 00:30:57,560
Speaker 3: It feels like a US exceptionalism conversation right. Like yet again,

571
00:30:58,920 --> 00:31:01,120
Speaker 3: so if we just go macro them for a minute,

572
00:31:01,200 --> 00:31:04,680
Speaker 3: if the FED cuts rates in May, what does that do,

573
00:31:04,800 --> 00:31:07,920
Speaker 3: Like if you're already seeing us hold up pretty well,

574
00:31:08,120 --> 00:31:11,040
Speaker 3: does that accelerate the economy from where you stound?

575
00:31:12,240 --> 00:31:17,120
Speaker 13: I think that could help some of the largest CAPEX projects,

576
00:31:17,560 --> 00:31:20,160
Speaker 13: which you know we get some business from. But we're

577
00:31:20,240 --> 00:31:23,560
Speaker 13: not as much of a capex play as you know

578
00:31:23,760 --> 00:31:26,959
Speaker 13: some other names, and that we're pretty balanced between CAPEX

579
00:31:27,360 --> 00:31:31,800
Speaker 13: as well as op X in terms of improvements additional

580
00:31:31,840 --> 00:31:36,280
Speaker 13: efficiency in existing facilities as well. So I don't know

581
00:31:36,320 --> 00:31:39,720
Speaker 13: that interest rates are our biggest indicator. As I said,

582
00:31:39,760 --> 00:31:44,120
Speaker 13: for the economy, I look at unemployment, and you know,

583
00:31:44,160 --> 00:31:49,440
Speaker 13: I look at the amount of automation investment, both for

584
00:31:49,560 --> 00:31:54,120
Speaker 13: new green fields as well as adding efficiency and resilience

585
00:31:54,160 --> 00:31:55,600
Speaker 13: in existing facilities.

586
00:31:57,200 --> 00:32:00,000
Speaker 2: Like just explain to us kind of what your competitive

587
00:32:00,080 --> 00:32:02,880
Speaker 2: marketplace looks like. Where are you guys versus your competitors?

588
00:32:03,040 --> 00:32:05,600
Speaker 2: Who do you compete against? And how's that changing?

589
00:32:06,400 --> 00:32:11,560
Speaker 13: So our big competitors are mostly the European conglomerates. Really,

590
00:32:11,600 --> 00:32:17,800
Speaker 13: it's Semen, Schneider abb in certain narrow parts in the market,

591
00:32:17,920 --> 00:32:23,640
Speaker 13: Honeywell and Emerson here in the US where really, you know,

592
00:32:23,680 --> 00:32:27,680
Speaker 13: we distinguished ourselves by having a very balanced exposure from

593
00:32:27,800 --> 00:32:33,200
Speaker 13: discrete applications like automotive, to hybrid applications like food and

594
00:32:33,280 --> 00:32:38,960
Speaker 13: beverage and life sciences, to continuous process applications like energy

595
00:32:39,040 --> 00:32:40,280
Speaker 13: and mining and so on.

596
00:32:40,680 --> 00:32:43,800
Speaker 3: Hey Blake. To that point, Seemens Energy, part of Semen

597
00:32:43,840 --> 00:32:47,640
Speaker 3: had just been really hurt by offshore wind here in

598
00:32:47,680 --> 00:32:49,760
Speaker 3: the US, I should say, not owned by Semens, but

599
00:32:50,280 --> 00:32:53,520
Speaker 3: Semens owns a stake in Semens Energy. How what's your

600
00:32:53,640 --> 00:32:57,480
Speaker 3: view on the energy green transition build out right now?

601
00:32:57,520 --> 00:32:59,560
Speaker 3: Are you losing money? You making money? What is your

602
00:32:59,600 --> 00:33:00,400
Speaker 3: order book look like?

603
00:33:01,520 --> 00:33:05,160
Speaker 13: It's still early innings, but we're seeing good business as

604
00:33:05,200 --> 00:33:09,200
Speaker 13: a result of energy transition. And I would bucket it

605
00:33:09,280 --> 00:33:13,640
Speaker 13: in three different ways. I'd look at first, the decarbonization

606
00:33:13,840 --> 00:33:18,720
Speaker 13: of the traditional oil and gas companies, so carbon capture projects.

607
00:33:18,920 --> 00:33:21,960
Speaker 13: We've talked about the work we're doing with Occidental in

608
00:33:22,000 --> 00:33:28,120
Speaker 13: their director capture projects, the one point five initiative, it's renewables,

609
00:33:28,680 --> 00:33:31,480
Speaker 13: and again we've talked publicly about what we're doing with

610
00:33:31,560 --> 00:33:35,960
Speaker 13: companies like First Solar in creating you know, PV panels.

611
00:33:36,360 --> 00:33:38,960
Speaker 13: And then it's the thing that we've been doing for

612
00:33:39,280 --> 00:33:44,920
Speaker 13: our entire history, and that's driving efficiency across all manufacturing,

613
00:33:45,000 --> 00:33:48,040
Speaker 13: and those are all good applications for us. You know,

614
00:33:48,040 --> 00:33:53,800
Speaker 13: there's some relatively nascent areas like hydrogen that are sources

615
00:33:53,800 --> 00:33:55,880
Speaker 13: of optimism, but you know, I would put them in

616
00:33:55,960 --> 00:33:57,320
Speaker 13: those three main areas.

617
00:33:57,760 --> 00:33:59,760
Speaker 2: Hey, Blake, I'm looking at the A and R function

618
00:33:59,800 --> 00:34:02,239
Speaker 2: on the Bloomberg terminal. It shows me that there are

619
00:34:02,240 --> 00:34:05,480
Speaker 2: eleven Wall Street analysts buys on your stock, twelve holds

620
00:34:05,520 --> 00:34:08,839
Speaker 2: and five cells, so pretty mixed across the board. What's

621
00:34:08,880 --> 00:34:12,640
Speaker 2: the message that you bring to your investors into the marketplace.

622
00:34:13,360 --> 00:34:17,400
Speaker 13: That the underlying demand remained strong, that we really have

623
00:34:17,520 --> 00:34:22,480
Speaker 13: a unique position among all of those competitors and among

624
00:34:22,520 --> 00:34:26,160
Speaker 13: the niche competitors. I like the hand we have, and

625
00:34:26,600 --> 00:34:31,560
Speaker 13: as you know, manufacturing picks up and resets from the

626
00:34:31,600 --> 00:34:35,000
Speaker 13: period of supply chain shortages. We're in a great spot

627
00:34:35,120 --> 00:34:39,560
Speaker 13: to accelerate our profitable growth before.

628
00:34:39,280 --> 00:34:39,759
Speaker 9: We end here.

629
00:34:40,160 --> 00:34:43,279
Speaker 3: I don't know ninety seconds left. You mentioned jobs quite

630
00:34:43,320 --> 00:34:46,080
Speaker 3: a few times. What is your assessment of the labor market?

631
00:34:46,120 --> 00:34:48,319
Speaker 3: Hard to get you're going to keep labor paying more?

632
00:34:48,320 --> 00:34:48,960
Speaker 9: What do you see?

633
00:34:50,000 --> 00:34:54,319
Speaker 13: You know, I think in manufacturing workforce there's still a

634
00:34:54,360 --> 00:34:59,120
Speaker 13: lot of unfilled jobs, and we think that, you know,

635
00:34:59,200 --> 00:35:04,320
Speaker 13: having a skill workforce is absolutely essential for manufacturers to compete,

636
00:35:04,480 --> 00:35:07,840
Speaker 13: but it's augmented with the kind of technology that we offer.

637
00:35:07,920 --> 00:35:11,480
Speaker 13: So it's really that winning hand of having an enabled

638
00:35:11,920 --> 00:35:14,879
Speaker 13: and engaged workforce, and we do a lot to help

639
00:35:14,920 --> 00:35:18,640
Speaker 13: with workforce development, and it's also given them so called

640
00:35:18,760 --> 00:35:21,640
Speaker 13: superpowers with the technology that we offer.

641
00:35:21,840 --> 00:35:22,800
Speaker 9: Superpowers.

642
00:35:23,239 --> 00:35:26,280
Speaker 2: Can you find people for your type of work?

643
00:35:27,280 --> 00:35:30,880
Speaker 13: You know, certain jobs, it takes longer than in others.

644
00:35:31,160 --> 00:35:35,720
Speaker 13: We're actually helping with workforce development programs that we offer

645
00:35:35,800 --> 00:35:41,319
Speaker 13: in house and then provide labor, particularly focused towards technician

646
00:35:41,440 --> 00:35:45,799
Speaker 13: level jobs for manufacturers in America through our Academy of

647
00:35:45,840 --> 00:35:47,120
Speaker 13: Advanced Manufacturing.

648
00:35:47,320 --> 00:35:50,080
Speaker 3: Thanks very much to Rockwell Automation CEO Blake Morrett.

649
00:35:50,280 --> 00:35:52,919
Speaker 2: That's this week's edition of Bloomberg Intelligence on Bloomberg Radio,

650
00:35:53,040 --> 00:35:55,799
Speaker 2: providing research and data on two thousand companies and one

651
00:35:55,840 --> 00:35:56,760
Speaker 2: hundred and thirty industries.

652
00:35:56,880 --> 00:35:59,759
Speaker 3: And remember you can access Bloomberg Intelligence through Bigo on

653
00:35:59,760 --> 00:36:01,440
Speaker 3: the two terminal. I'm Alex Steele and.

654
00:36:01,400 --> 00:36:03,840
Speaker 2: I'm Paul Sweeney. Stay with us. Today's top stories and

655
00:36:03,880 --> 00:36:06,040
Speaker 2: global business headlines are coming up right now

656
00:36:10,440 --> 00:36:10,480
Speaker 8: M