Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, along
Speaker 1: with my co host of Bonnie Quinn. Every business day
Speaker 1: we bring you interviews from CEOs, market pros, and Bloomberg experts,
Speaker 1: along with essential market moving news. Find the Bloomberg Markets
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Speaker 1: and on Bloomberg dot com. So it's a major uncertainty
Speaker 1: whether and when sports come back, either on the field
Speaker 1: or even on TV. It's all going to depend on sponsors, advertisers,
Speaker 1: and of course consumers. Let's bring in somebody who's been
Speaker 1: thinking a lot about this now. He used to be
Speaker 1: former where he is, former president of CBS Sports. He
Speaker 1: is now founder and president of Pilson Communications. I'm talking
Speaker 1: about Neil Pilson. Neil, thanks so much for joining. Good morning.
Speaker 1: So we have You know, the NFL season supposed to
Speaker 1: be starting off, and yet there really is no NFL
Speaker 1: plan yet. For example, even though training camps are set
Speaker 1: to fully begin at the end of this month, What's
Speaker 1: what are leagues supposed to do at a time like this,
Speaker 1: Neil leaks or all the leagues are doing what what
Speaker 1: they need to do. They're assessing the data there trying
Speaker 1: to create strategies. We see different plans in effect for uh,
Speaker 1: the NBA, the NHL, UH, the NFL. UH. So the
Speaker 1: leaks are they're they're caught between the uh, you know,
Speaker 1: the interest of the American public to watch sports and
Speaker 1: the risks that they have to understand if they're going
Speaker 1: to put the sports on the air. But all of
Speaker 1: the professional leagues, including Major League Soccer, do have a plan,
Speaker 1: they have a strategy and we'll see how it works out. So, Neil,
Speaker 1: we know that sports is just a huge, huge, multi
Speaker 1: billion dollar business. There's rights fees all over the place,
Speaker 1: and it's it's a key programming component for a lot
Speaker 1: of broadcast and cable networks here. But let's start with ESPN.
Speaker 1: It is a sports network after all. You know, how
Speaker 1: how at risk are they here of just you know,
Speaker 1: a prolonged shutdown of sports. Well, the answer is in
Speaker 1: your question, Yes they are at risk. They are doing
Speaker 1: the best they can with I was watching the Eagles
Speaker 1: concert last night on the ESPN. I've been watching their boxing,
Speaker 1: I've been watching some of their other programming. UH. What
Speaker 1: they've done is they've looked to reduce their costs, keep
Speaker 1: in mind that while the networks, including ESPN, had serious
Speaker 1: revenue shortfalls due to the lack of sports, they are
Speaker 1: also I won't use the word enjoying, but they are
Speaker 1: experiencing some significant cost savings. Uh. They are not paying
Speaker 1: the rights fees that they would otherwise pay since they're
Speaker 1: not getting the games, and they're not incurring the production
Speaker 1: costs which they would otherwise have to uh spend to
Speaker 1: cover the games. So UH, while the impact is negative
Speaker 1: in the sense that it's not a h they make
Speaker 1: profits and that's what they're for going right now. UH,
Speaker 1: it is they can weather the storm. They're Obviously ESPN
Speaker 1: is well financed with a very large company as it's
Speaker 1: as his owner, Disney. UH. The other networks Comcast owns NBC,
Speaker 1: UH CBS is with Viacom, which is not as big
Speaker 1: a company as Comcast. Fox is a little thinner in
Speaker 1: terms of their financial strength, that given the changes in
Speaker 1: their corporate structure in the past couple of years. But
Speaker 1: none of the networks really are are in danger in
Speaker 1: just in terms of the financials on sports. The real
Speaker 1: problem is what's going to happen next? UH. And let
Speaker 1: me give you quick example. Let's say the NFL comes
Speaker 1: back and they're playing their games, and the networks are
Speaker 1: now responsible to pay rights fees. However, the sponsor market
Speaker 1: may not be as strong as it normally would be
Speaker 1: because sponsors are very concerned that the American public is
Speaker 1: just not in a buying mood. I mean, how are
Speaker 1: you going to buy a car this fall? With the
Speaker 1: COVID experience threatening almost every state in the country. Uh So,
Speaker 1: it could be that the networks get caught in a
Speaker 1: situation where the games are being played and they're providing
Speaker 1: television coverage, but the advertising and sponsor market is not
Speaker 1: as strong as you would hope, even though the ratings
Speaker 1: are good. We all expect the ratings are going to
Speaker 1: be good for sports when they come back. But what
Speaker 1: we don't know at this point is whether the sponsor
Speaker 1: an advertising market will be as strong as it normally
Speaker 1: is for fall sports. So what will happen to pricing then, Neil,
Speaker 1: Will there be a big discount for those sponsors that
Speaker 1: are willing to keep spending and for those advertisers that
Speaker 1: are willing to keep spending or will you know, networks
Speaker 1: somebody say, look there are more eyeballs on these we
Speaker 1: need to up the price. Well, that's the trick of
Speaker 1: television advertising. There is no is a rate card, but
Speaker 1: that doesn't mean anything. If the networks can't sell at
Speaker 1: the number that they're asking, then they'll drop their number. Uh.
Speaker 1: Network commercials are like seats on an airplane. Once the
Speaker 1: plane takes off, you can't sell that seat. Well, once
Speaker 1: the game takes place, you can't sell that commercial. So
Speaker 1: what you have is a fluid marketplace with supply and
Speaker 1: demand being the determinator in terms of pricing. Uh. It's
Speaker 1: it's relatively simple. It's very complex in operation. But the networks,
Speaker 1: if they can't sell their their time, will drop their
Speaker 1: price to UH to the market. If they can sell
Speaker 1: their time, then the marketplace will bid for the units
Speaker 1: and the price will go up. NOL. Just real quickly here,
Speaker 1: do you think consumer behavior maybe changing? Here? We're streaming
Speaker 1: more content at home because we're stuck at home. Do
Speaker 1: you think streaming is going to come to big time
Speaker 1: sports packages like the NFL? Will you see Amazon or
Speaker 1: Facebook bid for major major sports package? Uh? Not as
Speaker 1: quickly as some people think, because the basic advantage of
Speaker 1: the networks is they guarantee the pricing when they buy
Speaker 1: a long term deal with the NFL, the NBA. They're
Speaker 1: guaranteeing billions of ours. UH. It remains to be seen
Speaker 1: whether Amazon or Google or Netflix is prepared to guarantee
Speaker 1: the kind of money that the networks have traditionally provided
Speaker 1: the leagues, And until that happens, I think you're going
Speaker 1: to see streaming as a supplementary UH delivery system and
Speaker 1: quite effective, but not the primary distribution platform. Kind of
Speaker 1: everybody's waiting for that day. I know the league's are
Speaker 1: as well to get another well healed and wealth financed
Speaker 1: bidder set of bidders in their in addition to the
Speaker 1: broadcasting cable networks. Neil Pilson, founder and president of Pilson Communications,
Speaker 1: former president of CBS Sports, getting his thoughts on kind
Speaker 1: of the lay of the land of the sports UH
Speaker 1: landscape as this economy tries to reopen, and what it
Speaker 1: means for the media companies that depends so heavily on
Speaker 1: sports programming for viewership and advertising. The state of banks
Speaker 1: earnings this mornings o JP Morgan's total revenues of seventy
Speaker 1: year over year, but we also had credit loss provisions
Speaker 1: higher and Jamie diamond saying expect double digit unemployment through
Speaker 1: the first half of one city, also talking about higher
Speaker 1: loan losses going forward, but also trying to put a
Speaker 1: brave face forward. And then Wells Fargo, of course, is
Speaker 1: a whole another subject. Let's bring in someone who knows
Speaker 1: all about it. Kenley, Owner is Litable, Director of Industry
Speaker 1: and Equity Research at ce f R. A can what
Speaker 1: are the headlines from this morning's three reports. It's really
Speaker 1: tell us two stories. Banks obviously are impacted by the
Speaker 1: COVID nineteen and the recession, and it's affecting loan volumes.
Speaker 1: It's also impacting the rate or rate. Interest rates are
Speaker 1: much lower, but off setting that was the app and
Speaker 1: that's the consumer. But on the corporate side, the strength
Speaker 1: that we saw was on paralleled in terms of investment,
Speaker 1: banking and trading, especially in fixed income, but also in
Speaker 1: equity underwriting. So that kind of buffered a significant decline
Speaker 1: in terms of performance of lending um And unfortunately, this
Speaker 1: being the first quarter, full quarter of the impact of
Speaker 1: COVID nineteen, we're likely to still see weakness in the
Speaker 1: third quarters. So the road to recovery is looking to
Speaker 1: be ar shaped into all right, ken, let's focus a
Speaker 1: little bit on Wells Fargo, because the number that really
Speaker 1: jumped out of me was the nine point five billion
Speaker 1: dollar provision for credit losses. That's more than the consensus
Speaker 1: of four point nine billions. So obviously, when you think
Speaker 1: about Wells Fargo Fargo, you think about the consumer, you
Speaker 1: think about small and mid sized businesses. So that's really
Speaker 1: an ominous tone, isn't it. It is? But I think
Speaker 1: Wells Fargo kind of undershot the mark on building credit
Speaker 1: reserves in the first quarter. It was a half or
Speaker 1: even less than its appears of Bank of America or
Speaker 1: JP Morgan's. So I think part of this answer the
Speaker 1: question is patched up, but it is significant. And whilst
Speaker 1: far Ago highly relies on it's a community bank and
Speaker 1: consumer loans, Ken City Group, you know, setting aside seven
Speaker 1: point nine billion dollars more for so our loans, and
Speaker 1: David Morgan obviously setting aside more than anticipated as well.
Speaker 1: Why are loans beginning to go bad at such a
Speaker 1: rate when the FED stepped in to try and stop
Speaker 1: some of this. It's actually building reserves, So these are
Speaker 1: provisions or charges um to the bank. The actual delinquencies
Speaker 1: or loan losses are likely over the next few quarters.
Speaker 1: Think about this, this is the first full quarter yet
Speaker 1: the banks really don't have total visibility to the health
Speaker 1: of the consumers small business who have benefited into for
Speaker 1: bearans or subsidies from the federal government. So the banks
Speaker 1: are being very conservative. They have significant capital and as
Speaker 1: I think we might have lost Ken their Vanni. But
Speaker 1: I think he's saying, you know, I was interesting his
Speaker 1: comments about some of these banks, you know, don't have
Speaker 1: great visibility. So but they're still you know, taking these
Speaker 1: big low mass reserves. I think in anticipation that this
Speaker 1: is going to be an economy that is lower for longer. Yeah,
Speaker 1: I mean, I think that's very very telling because right
Speaker 1: now it seems like things are being managed pretty well.
Speaker 1: Right the consumer is still spending to a certain extent,
Speaker 1: and you know, even as we're seeing mass unemployment rules
Speaker 1: of seeing mass job creation again, you know, month over month,
Speaker 1: at the same time, if we don't have continued fiscal
Speaker 1: stimulus from the government, who knows what the situation will
Speaker 1: be like. And obviously the banks don't know any more
Speaker 1: than we do as to what's going to come out
Speaker 1: of Washington, d C. Over the next literally two weeks. Ball,
Speaker 1: I mean that funding for the six hundred dollars per
Speaker 1: week extra for each consumer who's out of work that
Speaker 1: goes away in two weeks unless Congress does something about it. Yeah,
Speaker 1: so we have Ken back. Ken Leone joins us once again,
Speaker 1: Global director of Research at cf are A. So Ken
Speaker 1: going to that point, what are the banks saying about
Speaker 1: the consumer here? Um? You know, are they Jamie Diamond's
Speaker 1: commentary seemed to be quite conservative on the margin, that's right,
Speaker 1: and the issue really relates to UM employment, particularly if
Speaker 1: we have adverse scenarios where unemployment, let's say for the
Speaker 1: U S economy is still in the mid teens UM,
Speaker 1: that will be kind of a dire outlook for the
Speaker 1: rest of this year. So that's the worst case. You
Speaker 1: gotta remember, banks hope for the best, but they prepare
Speaker 1: for the worst, and that's the build up of these
Speaker 1: credit reserves. Keep in mind, though, that what the banks
Speaker 1: are following is in line with the Settle reserve UM
Speaker 1: stress tests and the new scenarios on COVID back in
Speaker 1: late June, where when you look at those thirty three
Speaker 1: banks that participated in these stress tests, uh, the historical
Speaker 1: framework was a worst case of a four hundred thirty
Speaker 1: three billion with COVID. With the unemployment levels that you've
Speaker 1: mentioned before, um possibly mid teens, eight hundred billion. So
Speaker 1: what the banks have to do is before the reality,
Speaker 1: they have to build reserves. The flip side if we
Speaker 1: have this conversation later this year, is if the economic
Speaker 1: scenario is better, then you get a reserve reverse of
Speaker 1: these credit reserves, which would boost profitability absolutely. So we'll
Speaker 1: keep an eye on those. We've got still more banks
Speaker 1: to go uh tomorrow and Thursday as well. Ken le Own,
Speaker 1: Global Director of Industry and Equity Research at c f
Speaker 1: r A Research. We appreciate his commentary on the banks
Speaker 1: and again kind of a mixed bag coming out here
Speaker 1: about the consistent theme across the three banks that we
Speaker 1: saw today is very high single digit in terms of
Speaker 1: a billion dollar low loss reserves as they prepare for
Speaker 1: a weaker economy for some time to come. We'll see
Speaker 1: what we get from the big investment banks tomorrow. Well,
Speaker 1: when you have Max Niss and there's so many ways
Speaker 1: you can go when discussing this coronavirus on a global scale, Maxinis,
Speaker 1: it's a biotech farm at healthcare calumnist for Bloomberg Opinion Uh,
Speaker 1: but Max, today, I want to start with containment or
Speaker 1: lack thereof. It's it's it's something that's come back to
Speaker 1: the forefront of discussion of this virus containment and such
Speaker 1: key states as California, Texas, Florida. Where are we in
Speaker 1: some of those hotspots states? Are they bending the curve
Speaker 1: at all? Uh? Too early to say definitively, but probably not.
Speaker 1: And the reason is that, um, you know, with the
Speaker 1: exception of of California, as of you know this week, uh,
Speaker 1: no of them have really taken especially aggressive steps, you know,
Speaker 1: really big steps back in terms of, um, you know,
Speaker 1: the sorts of businesses that are open when you have
Speaker 1: community spread at a certain level. UM, you know, anything
Speaker 1: other than that either isn't going to contain the virus
Speaker 1: at all or is going to take a really long
Speaker 1: time over which um, you'll have a lot of infections
Speaker 1: and death to do so. So UM, I'll be curious
Speaker 1: to see if if California's move, which I will note
Speaker 1: comes on the back of data that that on kind
Speaker 1: of a statewide for capital level, is actually not as
Speaker 1: concerning as what you see out of Florida Arizona. If
Speaker 1: that will um, you know, pressure some other states to
Speaker 1: take some more aggressive action given to the sort of
Speaker 1: rates of new infection that they're seeing. Max, what's the
Speaker 1: latest thinking on herd immunity? Um? The latest I mean,
Speaker 1: I can give you my opinion on her immunity, but
Speaker 1: they're they're sort of two factors. One is whether you
Speaker 1: know it's even possible to achieve via natural infection, This
Speaker 1: being the form of the argument you here sometimes that
Speaker 1: you know it's going to take so long to get
Speaker 1: a vaccine and be so economically damaging to mitigate the virus,
Speaker 1: that we should just sort of let it run comparatively
Speaker 1: free in order thin. But the thing that we don't
Speaker 1: know and and still don't know is the degree to
Speaker 1: which UM natural immunity is conferred by infection or whether
Speaker 1: it lasts. And there's mixed evidence on this. UM. You know,
Speaker 1: some data that antibody levels fall over time. This doesn't
Speaker 1: confirm that that people probably can get reinfected UM, but
Speaker 1: it does suggest that that there isn't sort of rock
Speaker 1: solid evidence that that there is definitely gonna be durable
Speaker 1: immunity for everybody, So UM, you know that that's one
Speaker 1: reason to doubt that strategy. The second is just the
Speaker 1: numbers required to get there. Even if you do have
Speaker 1: you know, durable and consistent immunity, which we're not true
Speaker 1: about our enormous you know, it's it's fift and to
Speaker 1: get there. Um, if you just through the really simple math,
Speaker 1: even an you know, a relatively low implied fatality rate
Speaker 1: under one percent, UM, you know that that's a lot
Speaker 1: of deaths. And on top of that, UM, we also
Speaker 1: don't know the percentage of people that have lasting significant
Speaker 1: punseqluences from infection. So UM, it's a wildly irresponsible and
Speaker 1: dangerous strategy, all right. So if herd immunity is not
Speaker 1: a valid strategy, then obviously the focus turns back uh
Speaker 1: MAX to treatments and then ultimately to uh A or
Speaker 1: multiple vaccines. Anything new on that front that we should
Speaker 1: be paying attention to. UM, you know, the we're overall,
Speaker 1: I'd say the situation is is pretty close to what
Speaker 1: it's been in recent weeks, where we're we're sort of
Speaker 1: still waiting for the beginning of of these sort of
Speaker 1: big infirmatory trials. The news today that UM we're during
Speaker 1: an age to start its trial on July, So that
Speaker 1: would be the first really big trial in the US
Speaker 1: and a significant step on the path to seeing whether
Speaker 1: that the vaccine works. But how the thing I always
Speaker 1: like to highlight is, you know, it's impossible to say
Speaker 1: how long that that trial will take. You know, it's
Speaker 1: a big endeavor people. And on top of that, it's
Speaker 1: really difficult to handicap the possibility of success. Um, both
Speaker 1: because you know, the metrics of possible success we're using
Speaker 1: right now are there was antibody levels, um. You know,
Speaker 1: the comparison for people that have made it through the virus.
Speaker 1: That that's a metric that we don't necessarily know is valid.
Speaker 1: So again, just highlights that it's going to be a
Speaker 1: weight and they're they're significant and certain, especially given how
Speaker 1: rapidly these programs have progressed a relative to the norm
Speaker 1: for vaccine development. A lot of talk about children with
Speaker 1: you know, back to school sort of insights and and
Speaker 1: not in sits in other places. What about children? What
Speaker 1: do we know about how much they transmit this disease
Speaker 1: these days? Um? You know, again still something where where
Speaker 1: the evidence is evolving and and not conclusive. Um. I
Speaker 1: think it's it's broadly correct to say that the children
Speaker 1: are at substantially lower risk of of severe consequences of infection. UM.
Speaker 1: That's been a pretty consistent finding. Whether it's no risk
Speaker 1: UM is still is probably not the case. And then
Speaker 1: the broader question about beyond you know, the level of
Speaker 1: risk UM is the fact that you know, in starting
Speaker 1: up school you're encouraging a lot more travel, you have
Speaker 1: to think about teachers UM. So overall, even if children
Speaker 1: are are relatively less vulnerable, UM, if you don't have
Speaker 1: the virus contained, it's still going to be in one
Speaker 1: way or another, UM, pretty seriously unsafe to open schools broadly. Max,
Speaker 1: it's always a pleasure to have you on. I really
Speaker 1: don't know how you find the time to read everything
Speaker 1: and keep up with everything. It's just constant and a
Speaker 1: very difficult job these days. Well, Max Mason is biotech,
Speaker 1: pharmac and healthcare columnist for Bloomberg Opinion, and he's up
Speaker 1: with all the latest news surrounding the coronavirus and you know,
Speaker 1: every single drug trial that's underway, and and really you
Speaker 1: have the whole world on the case of this, Paul,
Speaker 1: and it's you know, it's I don't know when we
Speaker 1: last saw a global effort as you know, uh hefty
Speaker 1: as the one we're seeing right now. It's just a
Speaker 1: matter of when we'll get something that will break through.
Speaker 1: When you think about the industries that have been hardest
Speaker 1: hit by the coronavirus, the airline industry is certainly front
Speaker 1: and center among them. And we had some earnings out
Speaker 1: this morning from Delta Airlines. It just confirmed how difficult
Speaker 1: things are. Delta shares are off two point five percent
Speaker 1: today and off fifty year to date. To dig into
Speaker 1: that and all things aerospace and airlines, we welcome George Ferguson,
Speaker 1: senior Aerospace, defense and airlines analysts for Bloomberg Intelligence. So George,
Speaker 1: let's start off with Delta Boy, what's the takeaway here? Yeah, Paul, thanks,
Speaker 1: I think the big takeaway from Delta was, uh, they're
Speaker 1: burning about twenty seven million dollars a day as they
Speaker 1: closed the quarter. They still they want to push that
Speaker 1: to break even by year end um, but that's going
Speaker 1: to require more demand. They explicitly said, you know, the
Speaker 1: components going into sort of driving at the zero is
Speaker 1: more demand, and demand is petering out. They confirmed. For US,
Speaker 1: we've kind of been watching schedules and load factors and
Speaker 1: it looks like the US airlines have had a lot
Speaker 1: of capacity in the last sort of a couple of weeks. Uh,
Speaker 1: you know, as we started to see this nascent recovery
Speaker 1: and uh and travel. But look, with the cropping up
Speaker 1: of outbreaks in the south and the west and quarantine
Speaker 1: still in effect overseas, you know, we're concerned that it's
Speaker 1: going to start to peter out. And Delta kind of
Speaker 1: confirmed that. And so it's going to be a long road.
Speaker 1: Delta even said that, right, it's a long road. They
Speaker 1: talked in eighteen months to get to sort of you know,
Speaker 1: think reasonable travel levels. Are not talking talking reasonable travel levels.
Speaker 1: And we haven't seen business come back, business flying demand
Speaker 1: come back, and that's really important. Delta they said, revenues
Speaker 1: is business. You know, we kind of thought something around there.
Speaker 1: So I think those are the big takeaways from today.
Speaker 1: It's still a lot more a lot more distance to
Speaker 1: travel for recovery for this industry. George Delta saying seventeen
Speaker 1: thousand workers have now signed up to leave the airline
Speaker 1: at it's parked more than seven hundred aircraft. How much
Speaker 1: smaller will the future Delta be? I think again, again,
Speaker 1: that's a really hard question. Right, It's a function of
Speaker 1: the bounce back in demand. UM. And and right now,
Speaker 1: you know, we still have sort of an industry that's
Speaker 1: that's flying the passengers that they flew last year at
Speaker 1: this time. UM, I do think people will get more
Speaker 1: comfortable flying here in time, even if we don't have
Speaker 1: a vaccine or an effective treatment. The question is how
Speaker 1: much I know, you may have to strip some of
Speaker 1: these airlines, um for a couple of years here while
Speaker 1: you you know, fifty or while you wait for uh
Speaker 1: demand come back. So they've come a long way, but
Speaker 1: there's more distance to travel, and we think book four
Speaker 1: queues when you're really going to start to see adjustments
Speaker 1: to the workforce, because that's when the cares act money
Speaker 1: that's basically subsidizing all their labor goes away. All right, George,
Speaker 1: I guess it's time to go to the balance sheet
Speaker 1: discussion here is if this demand is going to uh
Speaker 1: perhaps come back slower than expected, we have to start
Speaker 1: looking at which airlines can can really weather the storm.
Speaker 1: So kind of how are you looking at that right now? Yeah?
Speaker 1: I look, they've all put on a lot of cash
Speaker 1: over the last bunch of months. UM. I've actually been
Speaker 1: pretty impressed with how receptive credit markets have been for
Speaker 1: these airlines. Many of them, you know, are in the
Speaker 1: tens between ten and twenty billion worth of liquidity, and
Speaker 1: so Delta said today they at eighteen for the liquidity. UM. Obviously,
Speaker 1: I think it probably puts them in in pretty good order.
Speaker 1: Will looks very closely as we go through earning season
Speaker 1: for cash burn and how long they can last. Delta
Speaker 1: entered the downturn with the better balance sheet and therefore
Speaker 1: more ability to get um, you know, to bring more
Speaker 1: cash out of their balance sheet. As pretty oppressed. They
Speaker 1: talked about adjusting even their credit lines so that some
Speaker 1: of those covenants don't trip them up. UM. I think again,
Speaker 1: being an investigated company going into the downturn helps you
Speaker 1: a lot. Leisure is going to perform better than business too,
Speaker 1: and so I think that a bunch of the leisure
Speaker 1: carriers that are that are have good balance sheets, companies
Speaker 1: like South Pest and such a circle prepared well to
Speaker 1: get through the downturn for a longer pair. At to time,
Speaker 1: George Davidson Kemner that US Hedge Fund injected about two
Speaker 1: hundred million dollars or so into Virgin Atlantic to try
Speaker 1: and rescue the company along with Richard Branson themselves. What's
Speaker 1: the value proposition for Davidson there? Uh you know, I
Speaker 1: think you know, the value proposition at Britain Atlantic is
Speaker 1: really heat throw slots. And so look today it doesn't
Speaker 1: matter as much for it because nobody's um sort of
Speaker 1: jumping all over themselves to get more. He throw slots
Speaker 1: International is dead. But when the when the world recovers
Speaker 1: and and demand comes back again, and you know, look
Speaker 1: at me, not come back fully, but it comes back
Speaker 1: in the large proportions that he throwed another, uh, have
Speaker 1: another another choke point in sort of the worldout network.
Speaker 1: Heathrow has always been that way. There's a lot of
Speaker 1: demand again and the Heathrow and I think that's what
Speaker 1: Emerge Atlantic really really brings. It also brings it to Delta,
Speaker 1: by the way, because Delta was an investor in there,
Speaker 1: and I imagine they'll still have a decent relationship even
Speaker 1: though the equity investment might get is going to get adjusted. Here.
Speaker 1: It's so interesting following industries as they have to adapt
Speaker 1: to the environment. George, thank you so much for all
Speaker 1: of your expertise. George Ferguson, a senior Aerospace, Defense and
Speaker 1: airline analyst, and for all of the you know, consultants
Speaker 1: and so on that have gone into companies over the
Speaker 1: last several years and you know, restrategized and changed the strategy.
Speaker 1: I mean, something like a global pandemic comes along and
Speaker 1: that just all goes out the window and you have
Speaker 1: to start from scratch again. It's really, you know, interesting
Speaker 1: thing to watch, particularly when there's really no industry that's
Speaker 1: not affected by this. Thanks for listening to Bloomberg Markets podcast.
Speaker 1: You can subscribe and listen to interviews at Apple Podcasts
Speaker 1: or whatever a podcast platform you prefer. I'm Bonnie Quinn.
Speaker 1: I'm on Twitter at Bonnie Quinn, and I'm Paul Sweeney.
Speaker 1: I'm on Twitter at pt Sweeney. Before the podcast, you
Speaker 1: can always catch us worldwide at Bloomberg Radio.