1 00:00:02,720 --> 00:00:10,560 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,560 --> 00:00:14,480 Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 3 00:00:14,560 --> 00:00:18,479 Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business App. 4 00:00:18,600 --> 00:00:21,840 Speaker 1: Listen on demand wherever you get your podcasts, or watch 5 00:00:21,920 --> 00:00:23,040 Speaker 1: us live on YouTube. 6 00:00:23,520 --> 00:00:26,920 Speaker 2: All right, you hit eco, go on your Bloomberg terminal, 7 00:00:27,000 --> 00:00:29,720 Speaker 2: and you see a lot of economic data coming out today. 8 00:00:30,000 --> 00:00:30,440 Speaker 3: I don't know. 9 00:00:30,440 --> 00:00:31,680 Speaker 2: One of the ones that kind of jumped out of 10 00:00:31,720 --> 00:00:35,480 Speaker 2: me is is GDP annualized quarter to quarter? 11 00:00:36,200 --> 00:00:37,080 Speaker 4: The forecast was. 12 00:00:37,040 --> 00:00:39,640 Speaker 2: For a decline of zero point two percent, came in 13 00:00:39,640 --> 00:00:43,000 Speaker 2: a decline of zero point three percent. That's versus a 14 00:00:43,000 --> 00:00:46,760 Speaker 2: gain of two point four percent last period. That kind 15 00:00:46,760 --> 00:00:48,680 Speaker 2: of gets my attention. So we said, hey, let's ask 16 00:00:48,720 --> 00:00:51,560 Speaker 2: Michael McKee. Does this stuff for a living international economics 17 00:00:51,800 --> 00:00:54,320 Speaker 2: and policy correspondent for Bloomberg Newsy joints us here in 18 00:00:54,320 --> 00:00:57,880 Speaker 2: our studio, Mike, is that a big deal that number 19 00:00:58,040 --> 00:00:58,800 Speaker 2: that print? 20 00:01:00,160 --> 00:01:02,680 Speaker 5: Yes, it's a big deal, but not for the reasons 21 00:01:02,800 --> 00:01:05,000 Speaker 5: you might think. And I'm going to say something you've 22 00:01:05,080 --> 00:01:09,600 Speaker 5: never heard me say that. Matt Miller just accused me 23 00:01:09,959 --> 00:01:13,319 Speaker 5: of He said, I sound like Peter Navarro. 24 00:01:13,440 --> 00:01:16,800 Speaker 4: Today. Yeah, I see. Did you see Alex's face when? 25 00:01:18,160 --> 00:01:23,480 Speaker 5: Because I agreed with what Navarro's sentiment was on television 26 00:01:23,520 --> 00:01:25,240 Speaker 5: a few minutes ago where he said. 27 00:01:25,040 --> 00:01:27,360 Speaker 4: That this was not a bad report. 28 00:01:27,480 --> 00:01:31,479 Speaker 5: I'm summarizing because the three tenths decline doesn't tell. 29 00:01:31,360 --> 00:01:32,000 Speaker 4: The whole story. 30 00:01:32,040 --> 00:01:35,399 Speaker 5: I mean, the story underneath GDP today is all tariffs. 31 00:01:36,000 --> 00:01:41,240 Speaker 5: What happened. We saw tariffs bring in tariffs, get people 32 00:01:41,280 --> 00:01:44,200 Speaker 5: to import a lot of stuff to try to get 33 00:01:44,240 --> 00:01:48,720 Speaker 5: ahead of the tariff price increases, and that has totally 34 00:01:48,720 --> 00:01:52,960 Speaker 5: distorted the numbers here. What we've seen is that imports 35 00:01:53,240 --> 00:01:58,320 Speaker 5: subtracted five percent from GDP, A record inventories added to 36 00:01:58,440 --> 00:02:01,520 Speaker 5: it a quarter percent because the jump in inventories was 37 00:02:01,680 --> 00:02:06,280 Speaker 5: a record during the month and they didn't quite offset. 38 00:02:06,320 --> 00:02:10,440 Speaker 5: But we did see all of this distortion in the numbers. 39 00:02:10,480 --> 00:02:13,280 Speaker 5: That doesn't tell you the real story. If you look 40 00:02:13,320 --> 00:02:16,040 Speaker 5: at consumer spending, it was up one point eight percent, 41 00:02:16,160 --> 00:02:19,240 Speaker 5: which was a little more than expected. And business spending 42 00:02:20,000 --> 00:02:24,480 Speaker 5: distorted by tariffs up nine point eight percent, well twenty 43 00:02:24,560 --> 00:02:28,600 Speaker 5: two point five percent gain in imports of equipment. So 44 00:02:30,240 --> 00:02:32,920 Speaker 5: it's really hard to tell. So what you do if 45 00:02:32,960 --> 00:02:35,400 Speaker 5: you're an economists as you look at real final sales 46 00:02:35,800 --> 00:02:39,480 Speaker 5: to domestic purchasers which takes out inventory and trade, and 47 00:02:40,200 --> 00:02:43,639 Speaker 5: that was up by two point three percent. It's a 48 00:02:43,680 --> 00:02:46,640 Speaker 5: little lower that it was in prior quarters, but that 49 00:02:46,760 --> 00:02:51,160 Speaker 5: is still showing growth in the overall consumption economy. 50 00:02:51,160 --> 00:02:54,400 Speaker 6: Well to that point. If we are seeing consumption okay 51 00:02:54,480 --> 00:02:57,280 Speaker 6: and now you have incomes being okay, is consumption also 52 00:02:57,320 --> 00:03:00,799 Speaker 6: being driven by pre buying tariffs or is this real 53 00:03:00,880 --> 00:03:01,960 Speaker 6: underlying straight. 54 00:03:01,840 --> 00:03:05,760 Speaker 4: No doubt, because people bought a lot of cars, and 55 00:03:05,800 --> 00:03:07,720 Speaker 4: they've bought at least they've. 56 00:03:07,520 --> 00:03:12,840 Speaker 5: Bought other things that we didn't see a big increase 57 00:03:12,919 --> 00:03:16,200 Speaker 5: in durable goods spending, but there was a big increase 58 00:03:16,280 --> 00:03:20,320 Speaker 5: in services spending, a relatively big increase, So Americans were 59 00:03:20,320 --> 00:03:23,160 Speaker 5: out spending money. Now the question is where do they 60 00:03:23,200 --> 00:03:25,440 Speaker 5: go from here? And for that you're what you're looking 61 00:03:25,520 --> 00:03:29,040 Speaker 5: at is the other data we just got at ten o'clock, 62 00:03:29,120 --> 00:03:31,040 Speaker 5: which is the PCEE data. 63 00:03:31,200 --> 00:03:32,080 Speaker 6: Is this the one we care about? 64 00:03:32,120 --> 00:03:33,360 Speaker 4: Is this the one get? This is the one we 65 00:03:33,360 --> 00:03:34,679 Speaker 4: care about? 66 00:03:33,720 --> 00:03:37,640 Speaker 5: This this is the monthly This is the monthly number, 67 00:03:38,200 --> 00:03:40,400 Speaker 5: so it's the most recent data. This is if you're 68 00:03:40,400 --> 00:03:42,920 Speaker 5: following the trend, which is what the Fed wants to do. 69 00:03:43,600 --> 00:03:45,880 Speaker 5: We were up seven tents of eight percent, which is 70 00:03:45,960 --> 00:03:49,840 Speaker 5: up from half a percent in February. So Americans spent 71 00:03:49,960 --> 00:03:54,520 Speaker 5: more in March. The numbers were weighed down by what 72 00:03:54,560 --> 00:03:57,840 Speaker 5: we got in January. In February, in the quarterly numbers 73 00:03:58,120 --> 00:04:01,360 Speaker 5: and incomes were relatively strong. They're still up half a 74 00:04:01,360 --> 00:04:04,280 Speaker 5: percent after a seven tenths rise the month before. If 75 00:04:04,320 --> 00:04:07,600 Speaker 5: you look at the wages and salaries in that report, 76 00:04:07,680 --> 00:04:10,080 Speaker 5: which is the most important thing because people spend what 77 00:04:10,120 --> 00:04:12,480 Speaker 5: they make, they were up half a percent, which was 78 00:04:13,840 --> 00:04:17,240 Speaker 5: up from February's four tenths and January's two tenths. So 79 00:04:17,279 --> 00:04:19,760 Speaker 5: as the month went on, people got more money, they 80 00:04:19,760 --> 00:04:23,680 Speaker 5: spent more money, and so it doesn't suggest we go 81 00:04:23,800 --> 00:04:28,120 Speaker 5: into the second quarter with a real problem in terms 82 00:04:28,160 --> 00:04:29,560 Speaker 5: of consumer momentum. 83 00:04:30,320 --> 00:04:30,960 Speaker 4: That's my read. 84 00:04:30,960 --> 00:04:32,880 Speaker 2: It seems like the consumer mic is still pretty good. 85 00:04:32,960 --> 00:04:37,240 Speaker 5: When you're when you're looking at the consumer confidence numbers, 86 00:04:37,279 --> 00:04:42,040 Speaker 5: it looks really terrible. But the numbers that we're seeing 87 00:04:42,080 --> 00:04:44,560 Speaker 5: from consumers in terms of what they do, rather, that's 88 00:04:44,560 --> 00:04:45,640 Speaker 5: a treasure. 89 00:04:45,720 --> 00:04:47,680 Speaker 2: Secretary Bestin's been saying, I mean, you can look at 90 00:04:47,720 --> 00:04:50,240 Speaker 2: all the survey numbers you want something. 91 00:04:50,040 --> 00:04:51,400 Speaker 4: Like best into along with Navarro. 92 00:04:51,600 --> 00:04:53,520 Speaker 2: Yes, exactly, but I mean that's what he's been saying 93 00:04:53,560 --> 00:04:55,600 Speaker 2: and say, you can look at all the sentiment data 94 00:04:55,720 --> 00:04:58,080 Speaker 2: you want, but people are still out there spending money. 95 00:04:58,240 --> 00:05:01,080 Speaker 4: Well, the question now still backward looking. 96 00:05:01,120 --> 00:05:03,159 Speaker 6: I mean, this is still from March. April was when 97 00:05:03,160 --> 00:05:05,480 Speaker 6: we saw the tariff headlines and the volatility in the market. 98 00:05:05,560 --> 00:05:05,640 Speaker 3: Right. 99 00:05:05,839 --> 00:05:09,240 Speaker 5: Yeah, the PCE numbers are March that I'm talking about, 100 00:05:09,320 --> 00:05:11,480 Speaker 5: and the rest of it is first quarter through the 101 00:05:11,560 --> 00:05:14,279 Speaker 5: end of March. So what's happened in April that we 102 00:05:14,360 --> 00:05:17,200 Speaker 5: don't know yet, We're going to have We're going to 103 00:05:17,240 --> 00:05:20,640 Speaker 5: have to see. We have the sentiment indicators, and March 104 00:05:20,800 --> 00:05:22,800 Speaker 5: was really the first month when there were. 105 00:05:22,640 --> 00:05:24,960 Speaker 4: Any tariffs, and they weren't really tariffs on you and me. 106 00:05:25,000 --> 00:05:28,120 Speaker 5: They were tariffs on the steel companies and things like that. 107 00:05:28,520 --> 00:05:32,240 Speaker 5: So if people are paying more from for what they're getting, 108 00:05:32,720 --> 00:05:35,160 Speaker 5: if they can get anything from China, now, maybe that 109 00:05:35,240 --> 00:05:38,120 Speaker 5: does affect what they're going to be spending on. So 110 00:05:39,400 --> 00:05:42,240 Speaker 5: somebody said to me this morning, this makes the fence 111 00:05:42,400 --> 00:05:47,000 Speaker 5: job easy harder because you had higher inflation and lower growth. 112 00:05:47,040 --> 00:05:49,720 Speaker 5: But I think it makes it easier. It just cements 113 00:05:49,760 --> 00:05:53,760 Speaker 5: the case for doing nothing because this report is so 114 00:05:53,920 --> 00:05:57,800 Speaker 5: distorted by the tariff stuff that it's impossible to say 115 00:05:57,839 --> 00:05:59,520 Speaker 5: what it's going to mean going forward. 116 00:06:00,120 --> 00:06:01,599 Speaker 6: Such a good point. He's so smart. 117 00:06:01,600 --> 00:06:03,159 Speaker 4: That's when we get them on talking about a this time. 118 00:06:03,200 --> 00:06:04,320 Speaker 4: So just like Peter Navarro. 119 00:06:04,520 --> 00:06:08,279 Speaker 6: Yeah, Samesy, certainly the same. Michael McKee, Bloomberg International Economics 120 00:06:08,320 --> 00:06:10,120 Speaker 6: and Policy correspondent, joining us in studio. 121 00:06:10,120 --> 00:06:11,159 Speaker 4: Thank you so very much. 122 00:06:12,839 --> 00:06:16,520 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 123 00:06:16,600 --> 00:06:19,679 Speaker 1: weekdays at ten am Eastern on Apple, Coarclay, and Android 124 00:06:19,720 --> 00:06:23,000 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 125 00:06:23,080 --> 00:06:26,160 Speaker 1: you get your podcasts, or watch us live on YouTube. 126 00:06:26,600 --> 00:06:29,679 Speaker 6: Alex still here alongside Paul Sweeney. This is Bloomberg Intelligence Radio. 127 00:06:29,760 --> 00:06:31,880 Speaker 6: We bring you all the top news in business, economics, 128 00:06:31,920 --> 00:06:34,320 Speaker 6: and finance through our lens of our Bloomberg Intelligence folks. 129 00:06:34,360 --> 00:06:36,360 Speaker 6: They cover two thousand companies in one hundred and thirty 130 00:06:36,360 --> 00:06:39,599 Speaker 6: industries all around the world. Want to get an update 131 00:06:39,640 --> 00:06:42,039 Speaker 6: here on super Micro. The stock gets hammered here after 132 00:06:42,080 --> 00:06:46,440 Speaker 6: preliminary earnings results that fell well short of analyst estimates. 133 00:06:46,440 --> 00:06:49,000 Speaker 6: Remember this was a darling that went into the mid 134 00:06:49,080 --> 00:06:51,479 Speaker 6: cap stocks and had lots of issues with kind of 135 00:06:51,480 --> 00:06:54,120 Speaker 6: revamping its accounting, etc. And they were trying to really 136 00:06:54,160 --> 00:06:57,000 Speaker 6: find their footing. Bou Jinho is Bloomberg Intelligence and your 137 00:06:57,080 --> 00:06:59,880 Speaker 6: technology analyst joins us now trying to find their footing 138 00:07:00,160 --> 00:07:02,359 Speaker 6: then maybe pushed back a bit. What happened in their 139 00:07:02,400 --> 00:07:03,280 Speaker 6: prilminary announcement. 140 00:07:04,200 --> 00:07:07,320 Speaker 7: Yeah, hey, Alex, thanks for having me on. It looks like, 141 00:07:08,000 --> 00:07:10,960 Speaker 7: you know, when you go big whale hunting and you 142 00:07:11,080 --> 00:07:13,200 Speaker 7: miss those whales, you're going to miss results. Right, They 143 00:07:13,320 --> 00:07:18,120 Speaker 7: essentially miss sales by about one billion dollars versus the 144 00:07:18,200 --> 00:07:21,120 Speaker 7: midpoint of their guidance. And the fact of the matter 145 00:07:21,320 --> 00:07:24,120 Speaker 7: is these AI deals are monster deals. That's why I'm 146 00:07:24,120 --> 00:07:27,880 Speaker 7: saying it's big whale hunting. One hundred thousand GPU cluster 147 00:07:28,240 --> 00:07:32,480 Speaker 7: that XAI or open Ai. Those are three point five 148 00:07:32,520 --> 00:07:35,200 Speaker 7: billion dollar deals. So if you miss on you know, 149 00:07:35,320 --> 00:07:38,280 Speaker 7: one or two of these, that accounts for easily a 150 00:07:38,320 --> 00:07:39,000 Speaker 7: billion dollars. 151 00:07:39,640 --> 00:07:44,480 Speaker 2: So is this a super micro computer specific issue or 152 00:07:44,640 --> 00:07:48,400 Speaker 2: is this big tech spending kind of slung down here? 153 00:07:49,880 --> 00:07:54,240 Speaker 7: Well, it's a product transition issue, right, So if we 154 00:07:54,280 --> 00:07:58,920 Speaker 7: look at the Nvidia GPUs, they transitioned over from the 155 00:07:59,040 --> 00:08:03,880 Speaker 7: last generation Hopper series to the next generation. Uh, the 156 00:08:04,680 --> 00:08:10,400 Speaker 7: the Blackwell series and given the greater capacity and the 157 00:08:10,480 --> 00:08:13,960 Speaker 7: more the stronger, the better computational power. The customers were 158 00:08:14,000 --> 00:08:15,960 Speaker 7: actually waiting for this for quite some time now, and 159 00:08:16,040 --> 00:08:19,400 Speaker 7: now they're clamoring for it. So essentially what customers appear 160 00:08:19,520 --> 00:08:23,080 Speaker 7: to be doing is canceling their Hopper orders and moving 161 00:08:23,160 --> 00:08:27,160 Speaker 7: over to Blackwell. Now, I will tell you they weren't 162 00:08:27,160 --> 00:08:29,720 Speaker 7: the only one that had this issue. HPE a couple 163 00:08:29,760 --> 00:08:34,040 Speaker 7: of months ago. Uh, they missed their expectations primarily because 164 00:08:34,080 --> 00:08:37,160 Speaker 7: of this product transition as well. And it's biting super 165 00:08:37,240 --> 00:08:37,760 Speaker 7: Micro now. 166 00:08:38,480 --> 00:08:43,200 Speaker 6: So based on that, the chip cycles moving really fast 167 00:08:43,360 --> 00:08:47,040 Speaker 6: for AI. So what's next after Blackwell? This is just 168 00:08:47,120 --> 00:08:49,199 Speaker 6: going to keep happening and kind of rolling it downhill. 169 00:08:50,120 --> 00:08:53,040 Speaker 7: Yeah, I mean, it's still probably a couple of years 170 00:08:53,120 --> 00:08:57,160 Speaker 7: before we start seeing the new the newer series of 171 00:08:57,280 --> 00:09:00,800 Speaker 7: chips really ramping up, So we probably have a two 172 00:09:00,880 --> 00:09:05,760 Speaker 7: year product cycle before we get to that, Alex, I mean, 173 00:09:05,840 --> 00:09:10,400 Speaker 7: let's see how the cloud Capex holds up in twenty 174 00:09:10,480 --> 00:09:14,880 Speaker 7: six and twenty seven. But for now, you know, right 175 00:09:14,960 --> 00:09:17,200 Speaker 7: now we have a neartim product cycle issue for at 176 00:09:17,280 --> 00:09:18,679 Speaker 7: least super Micro and HPE. 177 00:09:18,880 --> 00:09:22,840 Speaker 2: Which what are your companies kind of the tech hardware companies, 178 00:09:22,880 --> 00:09:27,319 Speaker 2: what are they saying about this whole tariff climate, what 179 00:09:27,600 --> 00:09:28,640 Speaker 2: is it going to be an issue for them? 180 00:09:29,760 --> 00:09:32,640 Speaker 7: Yes, well, we published an update to our tariff note 181 00:09:33,000 --> 00:09:37,679 Speaker 7: and surprisingly they've actually done a good job navigating the 182 00:09:37,720 --> 00:09:43,240 Speaker 7: tariff issues. So far, I've had three companies report related 183 00:09:43,320 --> 00:09:46,520 Speaker 7: that's hardware related. There's a couple of things we need 184 00:09:46,600 --> 00:09:48,720 Speaker 7: to take into consideration. One, a lot of them are 185 00:09:48,800 --> 00:09:52,280 Speaker 7: outside of China in terms of the manufacturing scope, so 186 00:09:52,640 --> 00:09:55,920 Speaker 7: the tariff impact is fairly minimal. Two, there's a lot 187 00:09:55,960 --> 00:09:59,360 Speaker 7: of manufacturing that comes out of Mexico. So you know, 188 00:10:00,160 --> 00:10:03,959 Speaker 7: because of the US Mexico and Canadian Trader agreementt U 189 00:10:04,040 --> 00:10:06,480 Speaker 7: S m c A, they're exempt for tariffs. So if 190 00:10:06,520 --> 00:10:09,240 Speaker 7: you have anything that's built out of Mexico or Canada, 191 00:10:09,960 --> 00:10:12,840 Speaker 7: whatever it's assembled there, you're except for tariffs. A lot 192 00:10:12,920 --> 00:10:16,040 Speaker 7: of my company, the companies that have reported, uh, they're 193 00:10:16,200 --> 00:10:18,040 Speaker 7: they're using your U S m c A to their 194 00:10:18,080 --> 00:10:21,880 Speaker 7: advantage to win deals. And three and this is this 195 00:10:22,080 --> 00:10:25,040 Speaker 7: was somewhat interesting to me. I thought there would have 196 00:10:25,080 --> 00:10:27,839 Speaker 7: been some pull in deals because of tariff concerns in 197 00:10:27,880 --> 00:10:33,280 Speaker 7: the second quarter. Uh, the guidance thus far, Uh, Yeah, 198 00:10:34,000 --> 00:10:38,200 Speaker 7: Western Digital as well as Seagate, which manufactured hard drives. 199 00:10:38,440 --> 00:10:40,719 Speaker 7: They don't see any pull in in deals. So the 200 00:10:40,800 --> 00:10:42,640 Speaker 7: second half of the year, which was a concern of mine, 201 00:10:43,240 --> 00:10:46,200 Speaker 7: we don't. We don't see a you know, we see 202 00:10:46,320 --> 00:10:49,400 Speaker 7: actually smooth demand going into the second half in. 203 00:10:49,600 --> 00:10:53,200 Speaker 6: Terms of spending from super Micro's customers. I know we're 204 00:10:53,200 --> 00:10:56,040 Speaker 6: in the product cycle part, but are we seeing any 205 00:10:56,760 --> 00:10:59,920 Speaker 6: change in customer spend, Like maybe they're spending the same amount, 206 00:11:00,080 --> 00:11:03,079 Speaker 6: they're spending in different areas or are they holding spend 207 00:11:03,160 --> 00:11:05,080 Speaker 6: all together or pulling back. 208 00:11:05,920 --> 00:11:06,120 Speaker 5: Yeah. 209 00:11:06,280 --> 00:11:09,560 Speaker 7: So, and let me let me clarify who super Micro 210 00:11:09,720 --> 00:11:10,079 Speaker 7: sells to. 211 00:11:10,920 --> 00:11:11,280 Speaker 1: They don't. 212 00:11:11,480 --> 00:11:15,480 Speaker 7: They don't sell to the Metas or the Googles or 213 00:11:15,520 --> 00:11:17,600 Speaker 7: the Amazon or the Microsofts of the world. I mean, 214 00:11:17,679 --> 00:11:19,880 Speaker 7: there's some of that, but the bulk of their spend 215 00:11:20,040 --> 00:11:25,400 Speaker 7: goes to Tesla, musks x AI or the core weaves 216 00:11:25,440 --> 00:11:30,160 Speaker 7: of the world. This classification of neo clouds and for 217 00:11:30,280 --> 00:11:34,000 Speaker 7: all intented purposes, it seems as if they're spending, they're 218 00:11:34,240 --> 00:11:37,800 Speaker 7: maintaining their level of spend. They're not spending more. The 219 00:11:38,200 --> 00:11:41,120 Speaker 7: one overhang or one concern that I do have is 220 00:11:41,200 --> 00:11:45,520 Speaker 7: because of the tariff issue. So far, if they're not 221 00:11:45,600 --> 00:11:48,040 Speaker 7: going to spend more. Are they going to buy less? 222 00:11:48,440 --> 00:11:52,120 Speaker 7: Right because of the increase in taps. Now, if I'm right, 223 00:11:53,600 --> 00:11:57,920 Speaker 7: we shouldn't see that much of a price increase from 224 00:11:58,240 --> 00:12:03,079 Speaker 7: the server vendors or the GPU vendors because of some 225 00:12:03,280 --> 00:12:05,719 Speaker 7: of the ways that they can avoid the tariffs. And 226 00:12:06,679 --> 00:12:09,120 Speaker 7: you know, spending should be okay to the second half, 227 00:12:09,160 --> 00:12:10,839 Speaker 7: and if the black wall cycle works out for them, 228 00:12:11,360 --> 00:12:14,880 Speaker 7: super Micro should get back some of the law sales. 229 00:12:15,600 --> 00:12:18,240 Speaker 2: So prior to three months ago, all we were talking 230 00:12:18,280 --> 00:12:22,719 Speaker 2: about in the marketplace broadly defined was AI. Now I've 231 00:12:22,800 --> 00:12:25,160 Speaker 2: gone three months really without really talking about AI because 232 00:12:25,160 --> 00:12:29,000 Speaker 2: it's all about Terriss. Have your clients kind of are 233 00:12:29,040 --> 00:12:33,559 Speaker 2: they still as enthusiastic about the real opportunities for a 234 00:12:33,679 --> 00:12:36,400 Speaker 2: transformation in technology coming from AI? Is that still on 235 00:12:36,440 --> 00:12:37,000 Speaker 2: the front burner? 236 00:12:37,800 --> 00:12:42,199 Speaker 7: Well, so again, I'm gonna I'm gonna, I'm gonna bifurcate 237 00:12:42,280 --> 00:12:44,120 Speaker 7: that from the cloud guys and as well as the 238 00:12:44,240 --> 00:12:48,400 Speaker 7: enterprise guys. From the cloud perspective, they're continuing to spend. 239 00:12:48,840 --> 00:12:49,000 Speaker 6: Right. 240 00:12:50,000 --> 00:12:53,640 Speaker 7: If anything, there's a lot more excitement to spend, primarily 241 00:12:53,720 --> 00:12:57,079 Speaker 7: because of some of these smaller language models like a 242 00:12:57,160 --> 00:12:58,040 Speaker 7: deep seek. 243 00:12:58,280 --> 00:13:02,520 Speaker 4: Up we have a blackout like a deep seek. 244 00:13:03,240 --> 00:13:04,839 Speaker 6: Right, the studio light went out just for those of 245 00:13:04,840 --> 00:13:06,679 Speaker 6: you be on radio, so your light went out on 246 00:13:07,000 --> 00:13:10,359 Speaker 6: mujin Hell, there is no broad blackout space go ahead. 247 00:13:10,760 --> 00:13:14,120 Speaker 7: Yes, like a deep seek. Or they are looking for 248 00:13:14,280 --> 00:13:17,120 Speaker 7: dinner models. If anything, there's going to be higher demand 249 00:13:18,320 --> 00:13:23,000 Speaker 7: for some of the products itself altogether, so there actually 250 00:13:23,080 --> 00:13:25,199 Speaker 7: is a lot of excitement now on the enterprise side. 251 00:13:25,800 --> 00:13:29,200 Speaker 7: If anything, there might be a pause on the enterprise 252 00:13:29,240 --> 00:13:33,079 Speaker 7: side because of the high cost of acquisition. So the 253 00:13:33,240 --> 00:13:38,360 Speaker 7: cycles for AI adoption may be more on twenty twenty 254 00:13:39,240 --> 00:13:41,439 Speaker 7: later in twenty twenty six and into twenty twenty seven 255 00:13:42,200 --> 00:13:44,680 Speaker 7: versus the second half of this year and into twenty 256 00:13:44,720 --> 00:13:46,480 Speaker 7: twenty six on the enterprise side. 257 00:13:46,960 --> 00:13:49,520 Speaker 6: All Right, Weich thanks a lot usenhel Bloomberg Intelligence senior 258 00:13:49,559 --> 00:13:52,959 Speaker 6: technology analyst in the dark, but helping us illuminate what 259 00:13:53,080 --> 00:13:55,199 Speaker 6: we're seeing when it comes to some tech names like 260 00:13:55,280 --> 00:13:55,920 Speaker 6: super micro. 261 00:13:57,720 --> 00:14:01,400 Speaker 1: You're listening to the Bloomberg Intelligence Pod. Catch us live 262 00:14:01,520 --> 00:14:04,600 Speaker 1: weekdays at ten am Eastern on Apple Coarcklay and Android 263 00:14:04,640 --> 00:14:07,880 Speaker 1: Auto with the Blueberg Business App. Listen on demand wherever 264 00:14:07,960 --> 00:14:11,439 Speaker 1: you get your podcasts, or watch us live on YouTube. 265 00:14:11,160 --> 00:14:13,800 Speaker 6: Your Caterpillar down by about half of percent, looking at 266 00:14:13,800 --> 00:14:16,880 Speaker 6: slightly lower sales this year if Trump administration tear US 267 00:14:16,920 --> 00:14:20,040 Speaker 6: remain in place. That's including an economy that dips into 268 00:14:20,080 --> 00:14:23,480 Speaker 6: a recession in the second half. Chris Chiolino, Bloomberg Intelligence 269 00:14:23,480 --> 00:14:27,400 Speaker 6: senior US machinery analyst joins US. Now, Chris, how do 270 00:14:27,480 --> 00:14:29,200 Speaker 6: you look at this company then when there's like a 271 00:14:29,400 --> 00:14:32,960 Speaker 6: huge variable, I'll throw off its earnings for the rest 272 00:14:33,040 --> 00:14:33,400 Speaker 6: of the year. 273 00:14:34,640 --> 00:14:37,040 Speaker 8: Yeah. So, I think the release really isn't as bad 274 00:14:37,080 --> 00:14:39,960 Speaker 8: as initially feared, and there's actually a number of positive 275 00:14:40,040 --> 00:14:42,880 Speaker 8: takeaways here. The quarter was weak, and we knew that 276 00:14:43,000 --> 00:14:44,960 Speaker 8: going in, volumes were going to be down, pricing was 277 00:14:44,960 --> 00:14:48,120 Speaker 8: gonna be under pressure, But the outlook is actually better 278 00:14:48,200 --> 00:14:51,480 Speaker 8: than I think many had anticipated. Their two Q sales 279 00:14:51,520 --> 00:14:54,880 Speaker 8: guide was actually above the street. We saw backlog improved 280 00:14:54,960 --> 00:14:57,920 Speaker 8: to a record thirty five billion dollars, Orders were up 281 00:14:58,080 --> 00:15:01,400 Speaker 8: double digits both year over year and sequentially. And really, 282 00:15:01,440 --> 00:15:03,600 Speaker 8: if you look at their outlook X tariffs, it was 283 00:15:03,680 --> 00:15:07,440 Speaker 8: really better than what they had expected prior so, and 284 00:15:07,560 --> 00:15:10,360 Speaker 8: the tariff impact as of now at least the peers manageable. 285 00:15:10,400 --> 00:15:12,600 Speaker 8: So I think the release, you know, should at least 286 00:15:12,600 --> 00:15:15,360 Speaker 8: help delay some of those concerns over a more pronounced 287 00:15:15,360 --> 00:15:16,240 Speaker 8: slowdown this year. 288 00:15:17,120 --> 00:15:20,720 Speaker 2: Christa's kind of pillar build their equipment in the US. 289 00:15:21,280 --> 00:15:22,720 Speaker 2: Is that where the manufacturing is? 290 00:15:22,880 --> 00:15:23,480 Speaker 1: How do they do that? 291 00:15:25,360 --> 00:15:29,800 Speaker 8: Short answer, they build everywhere. They are a net exporter 292 00:15:29,960 --> 00:15:31,800 Speaker 8: out of the US. But you have to remember this 293 00:15:31,960 --> 00:15:36,320 Speaker 8: is a large global manufacturer. They have manufacturing footprint and 294 00:15:36,440 --> 00:15:39,640 Speaker 8: and supply base that really spans the globe. But if 295 00:15:39,680 --> 00:15:42,760 Speaker 8: we're thinking about net exports, yes, they export more out 296 00:15:42,800 --> 00:15:45,720 Speaker 8: of the US than they do import from a From 297 00:15:45,760 --> 00:15:48,200 Speaker 8: a revenue perspective, you know, the US is you know, 298 00:15:48,320 --> 00:15:49,880 Speaker 8: almost half their revenue today. 299 00:15:51,840 --> 00:15:52,960 Speaker 4: What about for its peers? 300 00:15:53,040 --> 00:15:54,760 Speaker 6: What does this mean for some of its peers and 301 00:15:56,040 --> 00:15:58,080 Speaker 6: the trading environment that they were previously in. 302 00:15:59,680 --> 00:16:03,240 Speaker 8: Yes, so, at least for some of the domestic US 303 00:16:03,360 --> 00:16:06,400 Speaker 8: based manufacturers, I think this is maybe a little bit 304 00:16:06,400 --> 00:16:08,400 Speaker 8: of a sigh of relief. By no means or we 305 00:16:08,480 --> 00:16:12,000 Speaker 8: have the woods yet, but it certainly seems that the tariffs, 306 00:16:12,200 --> 00:16:16,200 Speaker 8: as at least how they stand right now, are somewhat manageable. 307 00:16:16,840 --> 00:16:19,640 Speaker 8: You know, cats expecting a net cost headwind of about 308 00:16:19,640 --> 00:16:22,000 Speaker 8: two hundred and fifty is three hundred and fifty million 309 00:16:22,040 --> 00:16:25,440 Speaker 8: dollars next quarter. If you kind of extrapolate that out 310 00:16:25,480 --> 00:16:27,520 Speaker 8: over the balance of the year, you're talking you know, 311 00:16:27,760 --> 00:16:30,040 Speaker 8: maybe somewhere in the one hundred hundred and fifty basis 312 00:16:30,080 --> 00:16:33,520 Speaker 8: point headwinded margins. But that may even prove, you know, 313 00:16:33,640 --> 00:16:37,480 Speaker 8: overly pessimistic, because you know, cats still evaluate and get implement, 314 00:16:37,800 --> 00:16:42,760 Speaker 8: implement implementing some of these mitigation actions, so we could 315 00:16:42,760 --> 00:16:44,440 Speaker 8: even see that come down from here. 316 00:16:45,040 --> 00:16:47,200 Speaker 2: I was kind of surprised, I guess positively, Chris, that 317 00:16:47,480 --> 00:16:51,480 Speaker 2: their backlog looks pretty darn good. It's not like their 318 00:16:51,520 --> 00:16:54,239 Speaker 2: customers are saying are canceling orders or anything. 319 00:16:55,160 --> 00:16:57,800 Speaker 8: Now, and it's it's a record backlog, right, So you know, 320 00:16:57,920 --> 00:17:01,720 Speaker 8: we have coverage. You know, if you look at consensus revenue, 321 00:17:01,920 --> 00:17:04,880 Speaker 8: you know, whether we call it flatter down slightly this year, 322 00:17:05,440 --> 00:17:08,000 Speaker 8: they've got coverage for you know, nearly seventy percent of 323 00:17:08,040 --> 00:17:10,720 Speaker 8: the year already. So I think that does help provide 324 00:17:10,800 --> 00:17:13,359 Speaker 8: some kind of buffer. You know, there was a concern 325 00:17:13,440 --> 00:17:16,639 Speaker 8: out there that do we see this pre buy you know, 326 00:17:16,720 --> 00:17:19,600 Speaker 8: ahead of some of the tariff implementation, and KAT really 327 00:17:19,680 --> 00:17:22,520 Speaker 8: kind of downplay that in conversations they're having with their 328 00:17:22,600 --> 00:17:25,280 Speaker 8: dealers and with their customers. They're really not seeing any 329 00:17:25,359 --> 00:17:29,080 Speaker 8: evidence of that. So yeah, these do seem like, you know, 330 00:17:29,280 --> 00:17:32,680 Speaker 8: true orders and really a really healthy backlog, which you know, 331 00:17:33,240 --> 00:17:36,240 Speaker 8: I think helps support you know, that flatish type revenue 332 00:17:36,280 --> 00:17:38,640 Speaker 8: outlook that they're putting out there. 333 00:17:39,520 --> 00:17:42,119 Speaker 6: All right, thanks a lot, Chris, really appreciate appreciate it, 334 00:17:42,200 --> 00:17:45,439 Speaker 6: Chris Chile. You know, Bloomberg Intelligence Senior US machinery analyst. 335 00:17:47,160 --> 00:17:50,800 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live 336 00:17:50,920 --> 00:17:54,280 Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto 337 00:17:54,400 --> 00:17:57,440 Speaker 1: with the Bloomberg Business app. Listen on demand wherever you 338 00:17:57,520 --> 00:18:01,159 Speaker 1: get your podcasts, or watch US live on to just get. 339 00:18:01,040 --> 00:18:02,760 Speaker 2: Back to these markets we have as all offware. You're 340 00:18:02,840 --> 00:18:05,960 Speaker 2: off the lows of the morning. The S and p's 341 00:18:06,040 --> 00:18:08,280 Speaker 2: off eighty two points, that's one and a half percent. 342 00:18:08,720 --> 00:18:12,600 Speaker 2: And Malletti joins us here, old buddy of mine. We've 343 00:18:12,640 --> 00:18:14,439 Speaker 2: been into business a long time. She's head of equity 344 00:18:14,480 --> 00:18:18,240 Speaker 2: investments in all Spring Global Investments. Dude, you're grinding it. 345 00:18:18,480 --> 00:18:19,640 Speaker 4: Still working hard. 346 00:18:19,720 --> 00:18:22,280 Speaker 2: And Malletti joins us here in studio and you and 347 00:18:22,359 --> 00:18:24,520 Speaker 2: your colleagues at all Spring, I mean a lot of 348 00:18:24,560 --> 00:18:26,040 Speaker 2: folks that have been in the market for a while. 349 00:18:26,160 --> 00:18:29,680 Speaker 2: You've seen, you know, lots of different markets, whether it's 350 00:18:29,800 --> 00:18:31,680 Speaker 2: the you know, the dot com bust or the you know, 351 00:18:31,720 --> 00:18:34,280 Speaker 2: the financial crisis or the pandemic, A little bit of 352 00:18:34,320 --> 00:18:36,280 Speaker 2: uncertain to hear this year in the market. How are 353 00:18:36,280 --> 00:18:39,320 Speaker 2: you guys thinking about some of the very I guess 354 00:18:39,400 --> 00:18:41,320 Speaker 2: the volatility we're seeing in a lot of these markets. 355 00:18:41,560 --> 00:18:44,800 Speaker 3: Yeah, I mean, I think, Paul, you're right. There's when 356 00:18:44,840 --> 00:18:46,800 Speaker 3: you when you have moments like this, you kind of 357 00:18:46,880 --> 00:18:50,000 Speaker 3: always look back and you look at what rhymes to 358 00:18:50,119 --> 00:18:53,119 Speaker 3: the past, and you know, even during COVID, that was 359 00:18:53,200 --> 00:18:56,160 Speaker 3: something we never lived through before. So while history does 360 00:18:56,280 --> 00:18:59,600 Speaker 3: kind of rhyme, it never perfectly repeats itself. And here 361 00:18:59,680 --> 00:19:02,200 Speaker 3: we are again in something we've never lived through before. 362 00:19:02,320 --> 00:19:04,800 Speaker 3: But there are lessons from the past that you definitely 363 00:19:04,880 --> 00:19:08,280 Speaker 3: take forward. And some of those lessons really are like, 364 00:19:08,640 --> 00:19:12,680 Speaker 3: look in the moment, it feels awful and uncomfortable, but 365 00:19:13,400 --> 00:19:17,120 Speaker 3: history does suggest that equity market returns for those who 366 00:19:17,240 --> 00:19:22,080 Speaker 3: stay invested and really think about bottom up fundamentals and 367 00:19:22,200 --> 00:19:26,439 Speaker 3: companies that really can control their own destiny, those investors 368 00:19:26,560 --> 00:19:29,239 Speaker 3: do well over a cycle. And so that's what our 369 00:19:29,280 --> 00:19:32,320 Speaker 3: investment teams are focused on looking at trying to take 370 00:19:32,359 --> 00:19:36,080 Speaker 3: advantage of emotion and take advantage of uncertainty and volatility. 371 00:19:36,359 --> 00:19:38,560 Speaker 6: So is that on a sector level, an index level, 372 00:19:38,640 --> 00:19:39,880 Speaker 6: or a stock specific level. 373 00:19:40,240 --> 00:19:44,040 Speaker 3: It's more on you from a bottom up stock selection basis. 374 00:19:44,280 --> 00:19:48,359 Speaker 3: And there certainly are, depending on the environment, different industries 375 00:19:48,400 --> 00:19:52,000 Speaker 3: that might fare better than others. But I would say 376 00:19:52,119 --> 00:19:54,720 Speaker 3: even within almost any industry, there are going to be 377 00:19:54,800 --> 00:19:56,440 Speaker 3: companies that do better than others. 378 00:19:56,840 --> 00:20:00,560 Speaker 2: How do your portfolio managers, how do your analysts, you know, 379 00:20:01,000 --> 00:20:03,159 Speaker 2: assess a company when a lot of times these companies 380 00:20:03,200 --> 00:20:05,840 Speaker 2: are coming on their conference calls and saying we're withdrawing 381 00:20:05,920 --> 00:20:07,879 Speaker 2: guidance or we can't give guidance because we don't know 382 00:20:07,920 --> 00:20:10,080 Speaker 2: what's happening in our business, or if they don't know 383 00:20:10,720 --> 00:20:11,960 Speaker 2: how our investors supposed to know. 384 00:20:12,200 --> 00:20:14,639 Speaker 3: Yeah, I mean, Paul, this is something you spent a 385 00:20:14,720 --> 00:20:17,400 Speaker 3: lot of your career doing and our teams too too. 386 00:20:17,560 --> 00:20:21,080 Speaker 3: So while the calls are critically important, as you know, 387 00:20:21,200 --> 00:20:23,879 Speaker 3: kind of during reporting season, most of the past is 388 00:20:24,119 --> 00:20:26,399 Speaker 3: the past. We're not focused on that. We're focused on 389 00:20:26,520 --> 00:20:28,720 Speaker 3: going forward. And on the calls, they may not be 390 00:20:28,800 --> 00:20:31,399 Speaker 3: able to give guidance, But if you know that company 391 00:20:31,560 --> 00:20:35,320 Speaker 3: really well, and our teams do have deep expertise and 392 00:20:35,400 --> 00:20:39,160 Speaker 3: fundamental research. They understand the model and they can kind 393 00:20:39,160 --> 00:20:42,239 Speaker 3: of walk through with the management teams where do they 394 00:20:42,320 --> 00:20:45,760 Speaker 3: have levers to pull if things get worse or if 395 00:20:45,800 --> 00:20:48,359 Speaker 3: things get better? And how quickly can those levelers be 396 00:20:48,480 --> 00:20:52,159 Speaker 3: pull and then asking them the same question you asked me, 397 00:20:52,520 --> 00:20:55,359 Speaker 3: how do you look at this environment versus other environments? 398 00:20:55,560 --> 00:20:58,959 Speaker 3: How can you manage through those? And understanding where they 399 00:20:59,119 --> 00:21:02,720 Speaker 3: have control of their own versus where macro can kind 400 00:21:02,760 --> 00:21:05,160 Speaker 3: of push them is really really important, and you will 401 00:21:05,200 --> 00:21:08,280 Speaker 3: see some companies actually do have more control in this 402 00:21:08,440 --> 00:21:09,399 Speaker 3: environment than others. 403 00:21:10,640 --> 00:21:13,800 Speaker 6: What do you do about finding safety in the middle 404 00:21:13,840 --> 00:21:15,840 Speaker 6: of that? Right, Like in other cycles, you can make 405 00:21:15,840 --> 00:21:18,960 Speaker 6: an argument that maybe the dollar a treasury market, it's 406 00:21:18,960 --> 00:21:20,240 Speaker 6: okay to hide out there a little bit. 407 00:21:20,359 --> 00:21:21,080 Speaker 4: Is that still the case? 408 00:21:21,119 --> 00:21:22,560 Speaker 6: Do you guys see that Mark Mobius is like all 409 00:21:22,640 --> 00:21:25,480 Speaker 6: his funds are like ninety five percent in cash? Wow? 410 00:21:25,640 --> 00:21:28,800 Speaker 3: Yeah, yeah. Look, I think we tend to be and 411 00:21:28,920 --> 00:21:33,000 Speaker 3: think about being invested for the long term. And you know, 412 00:21:33,240 --> 00:21:36,880 Speaker 3: look I manage our equity business, our fixed income team, 413 00:21:37,119 --> 00:21:39,240 Speaker 3: you know, they believe it's a it's a good time 414 00:21:39,359 --> 00:21:43,159 Speaker 3: for fixed income to focusing on the income component of that. 415 00:21:43,840 --> 00:21:47,119 Speaker 3: But on the equity side, you know, you gotta be 416 00:21:47,320 --> 00:21:51,200 Speaker 3: right twice if you're going to sell and then predict 417 00:21:51,320 --> 00:21:54,040 Speaker 3: when is the right timing to come back. And again 418 00:21:54,200 --> 00:21:57,200 Speaker 3: history would suggest that if you just wait out these 419 00:21:57,359 --> 00:22:01,520 Speaker 3: periods and stay invested, you're going to do better in 420 00:22:01,600 --> 00:22:02,160 Speaker 3: the long run. 421 00:22:02,720 --> 00:22:04,159 Speaker 2: I never thought i'd be talking to you about this 422 00:22:04,240 --> 00:22:07,439 Speaker 2: topic because usually and and I talk about radio stocks, 423 00:22:07,480 --> 00:22:09,000 Speaker 2: TV stocks, billboard companies. 424 00:22:09,040 --> 00:22:11,320 Speaker 4: That's kind of back in the day, billboard companies. What's 425 00:22:11,359 --> 00:22:12,840 Speaker 4: that great business? 426 00:22:12,920 --> 00:22:15,840 Speaker 2: By the way, you can't fast forward through a billboard. 427 00:22:16,760 --> 00:22:20,359 Speaker 2: Just remember that your second traffic exactly emerging markets. How 428 00:22:20,359 --> 00:22:21,840 Speaker 2: do you guys approach emerging markets? 429 00:22:22,280 --> 00:22:24,359 Speaker 3: You know, I think you know we We're lucky. We 430 00:22:24,480 --> 00:22:28,800 Speaker 3: have two great emerging markets teams. One that has a 431 00:22:28,920 --> 00:22:33,680 Speaker 3: focus on providing equity i'm sorry, income along with the 432 00:22:33,720 --> 00:22:37,760 Speaker 3: equity returns, so equity and income focused, and the other 433 00:22:37,840 --> 00:22:40,560 Speaker 3: one that's a little bit more kind of focused on, 434 00:22:41,359 --> 00:22:43,480 Speaker 3: you know, more growth at a reasonable price and a 435 00:22:43,560 --> 00:22:48,760 Speaker 3: little bit more emerging market like with real growth behind it. 436 00:22:49,000 --> 00:22:54,919 Speaker 3: And so in this environment, you are seeing a natural 437 00:22:55,040 --> 00:22:59,760 Speaker 3: lyft to EM and I think it's because obviously the weakness, 438 00:22:59,800 --> 00:23:03,760 Speaker 3: and the dollar has propelled those markets. Again. We kind 439 00:23:03,800 --> 00:23:07,280 Speaker 3: of predicted that in our outlook piece in October that 440 00:23:07,800 --> 00:23:10,440 Speaker 3: whether we saw a dollar weakness, we might see the 441 00:23:10,480 --> 00:23:15,679 Speaker 3: strength of other current currencies happen, and investors have been 442 00:23:16,000 --> 00:23:19,840 Speaker 3: long under allocated in emerging markets, so you're seeing kind 443 00:23:19,840 --> 00:23:22,560 Speaker 3: of a natural lift in some of those areas with 444 00:23:22,680 --> 00:23:24,920 Speaker 3: real opportunity. The other thing I would say, Paul is 445 00:23:25,680 --> 00:23:27,760 Speaker 3: it's pretty apparent that we're kind of tapped out on 446 00:23:27,800 --> 00:23:30,400 Speaker 3: the fiscal spend here in the US. There's a lot 447 00:23:30,440 --> 00:23:33,119 Speaker 3: of other countries that have the ability to really spend. 448 00:23:33,640 --> 00:23:35,240 Speaker 6: So do you guys like hang out all the time 449 00:23:35,280 --> 00:23:37,159 Speaker 6: and like talk about stocks, Like like in the. 450 00:23:37,200 --> 00:23:39,520 Speaker 2: Day when conferences you get the cool kids will go 451 00:23:39,560 --> 00:23:40,480 Speaker 2: to the table. 452 00:23:40,359 --> 00:23:42,200 Speaker 6: You know, oh okay, and if they're not cool, you're like, 453 00:23:42,280 --> 00:23:43,280 Speaker 6: no thanks, yeah. 454 00:23:43,240 --> 00:23:44,960 Speaker 4: You take your stocks. 455 00:23:45,040 --> 00:23:48,240 Speaker 2: And group of former media analysts on Wall Street fun 456 00:23:48,480 --> 00:23:52,000 Speaker 2: and all these Drew Marcus says high Rich Rosen says 457 00:23:52,040 --> 00:23:55,520 Speaker 2: high go name dropping dropping. I mean, they're all just 458 00:23:55,600 --> 00:23:58,840 Speaker 2: they all know Ann Meletti. So that's in my studio 459 00:23:59,320 --> 00:23:59,920 Speaker 2: on my shape. 460 00:24:00,000 --> 00:24:00,520 Speaker 1: How cool is that? 461 00:24:00,680 --> 00:24:01,280 Speaker 4: That's really cool? 462 00:24:01,520 --> 00:24:03,040 Speaker 3: They were the all stars back in the day. I 463 00:24:03,640 --> 00:24:04,560 Speaker 3: was the little kid on the block. 464 00:24:04,680 --> 00:24:08,280 Speaker 4: Now don't say that please, all right, and thanks a lot. 465 00:24:08,359 --> 00:24:09,960 Speaker 4: Well you can tag her out. Yeah. 466 00:24:10,000 --> 00:24:11,919 Speaker 2: And Malletti, head of an equity Is this a new 467 00:24:12,000 --> 00:24:12,399 Speaker 2: role for you. 468 00:24:13,520 --> 00:24:14,320 Speaker 4: About five years? 469 00:24:14,480 --> 00:24:14,640 Speaker 1: Oh? 470 00:24:14,760 --> 00:24:17,399 Speaker 2: Okay, all right, yeah, she's always like the media analyst. 471 00:24:17,440 --> 00:24:21,080 Speaker 2: It's strong. And Malletti, head of equity Investments Offspring Global Investments, 472 00:24:21,160 --> 00:24:23,600 Speaker 2: joining us live here in our Bloomberg Interactive Brokers. We 473 00:24:23,720 --> 00:24:25,240 Speaker 2: appreciate getting a few minutes of your time. 474 00:24:25,480 --> 00:24:30,119 Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify, 475 00:24:30,359 --> 00:24:33,800 Speaker 1: and anywhere else you get your podcasts. Listen live each 476 00:24:33,840 --> 00:24:37,280 Speaker 1: weekday ten am to noon Eastern on Bloomberg dot com, 477 00:24:37,720 --> 00:24:41,200 Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business app. 478 00:24:41,680 --> 00:24:44,560 Speaker 1: You can also watch us live every weekday on YouTube 479 00:24:45,000 --> 00:24:47,199 Speaker 1: and always on the Bloomberg terminal.