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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am

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Speaker 1: or watch us live on YouTube.

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Speaker 2: Steve Menushan is apparently targeting a purchase of TikTok from

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Speaker 2: his Chinese parent company. This comes a day after House

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Speaker 2: lawmakers passed a bipartisan bill that would ban the widely

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Speaker 2: popular social media app in the US. Quite interesting, particularly

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Speaker 2: after he led that buyout of a NYCB.

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Speaker 3: I know, and I think it's even more interesting about

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Speaker 3: it is because there was that whole issue with NYCB earlier.

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Speaker 3: It cause a lot of concern about regional banking, a

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Speaker 3: lot of concern about TikTok and the minds of teenagers

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Speaker 3: all across the country and politicians.

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Speaker 2: So let's go to Dan Ives. He joins US managing

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Speaker 2: director and senior equity analyst ever at Web Securities. He

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Speaker 2: always has opinions about these things. Hey, Dan, I guess

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Speaker 2: it's twofold. What do you think about manution leading a

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Speaker 2: group of investors to buy TikTok let's just start there.

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Speaker 4: He's gonna join the long list, right, I mean, others

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Speaker 4: haven't talked. If you a strategic financial you're gonna have

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Speaker 4: a long list of buyers from Big TAC as well

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Speaker 4: as outside looking to get TikTok because it's a unique

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Speaker 4: golden asset that no one ever thought would become available.

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Speaker 4: We still believe only a twenty five percent chance this

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Speaker 4: ban actually happened.

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Speaker 3: So what's gonna be the big sticking point for that

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Speaker 3: kind of a bet? Is it the algorithm?

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Speaker 4: It's all about the source code is not gonna lead

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Speaker 4: by dance in China. Are not gonna allow the source

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Speaker 4: code and the algorithm to go to a US company,

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Speaker 4: And that's buying an F one car without the engine.

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Speaker 4: That's the fundamental issue here is that because of the

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Speaker 4: source code, it makes us extremely complex. The value is

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Speaker 4: vastly different without the source code.

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Speaker 2: Well, then here's my question in terms of what the

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Speaker 2: government will allow. It's like, well, the government like a

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Speaker 2: minus led investor takeover. Will the government like a Netflix

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Speaker 2: or a Netflix I'm in, a meta or another social

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Speaker 2: media company buying TikTok, like if you divest, like they

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Speaker 2: have to be okay, with who's going to buy it?

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Speaker 5: What do you think the devil's in.

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Speaker 4: The details, right, I mean the problem is, Look, this

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Speaker 4: is all a third rail issue. It's great theater in

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Speaker 4: DC in front of the microphones. The reality is the

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Speaker 4: selling and ban of TikTok. First, besides First Amendment, what

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Speaker 4: could happen to other social media. There's a huge ripple effect,

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Speaker 4: the negative retaliatory from China as well as ultimately, how

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Speaker 4: could you sell this without the source code? And that

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Speaker 4: and Bye Dance in Beijing are not going to allow

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Speaker 4: source code to be sold.

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Speaker 5: And that's the issue.

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Speaker 4: Shoot for Senate, I mean, the Shumer you even let

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Speaker 4: this get on the floor, that's going to be the problem.

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Speaker 4: It's very good for grand standing, but the reality of

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Speaker 4: it is very complex.

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Speaker 3: I mean, and you add to that that Congress really

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Speaker 3: just has not done well in the past of turning

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Speaker 3: denunciations of these perceived tech abuses into law. I mean,

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Speaker 3: you think about things about protecting children online, anti trust authority,

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Speaker 3: data privacy. This is not something that has come into

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Speaker 3: really forceful law. So I mean there's a chance this

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Speaker 3: might just all fall apart anyway.

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Speaker 5: That's why it goes. But like all the work.

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Speaker 4: We've done twenty five percent chans a ban actually happens

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Speaker 4: because to Alex to your point, Okay, so now a

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Speaker 4: ban happens the twenty five percent chance, how do you

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Speaker 4: sell it? So you're forcing them to they don't have

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Speaker 4: to sell without source code.

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Speaker 5: Then who's going to buy it? And then it comes

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Speaker 5: down to this.

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Speaker 4: Now let's say it gets sold to Microsoft, to Oracle,

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Speaker 4: then is there anti trust issues from a government perspective?

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Speaker 5: The problem is you can't put Genie back in the bottle.

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Speaker 4: This is going to have huge complications because TikTok as

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Speaker 4: well as the precedent and even the Spider Web in

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Speaker 4: terms of how it gets sold.

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Speaker 2: How much do you think TikTok's worth? Like, let's just

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Speaker 2: game it out.

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Speaker 4: One hundred billion with the source code, without the source code,

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Speaker 4: thirty to forty billion.

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Speaker 2: Wow, that is a big, big, big, big difference. So

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Speaker 2: what do you watching next for it? Then? Like, what's

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Speaker 2: the next trigger point for you?

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Speaker 6: Well?

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Speaker 4: I think now the soap opera, we'll see that in

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Speaker 4: the two or two area. So it does it actually

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Speaker 4: get to the Senate for what negotiations go behind the scenes?

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Speaker 5: You have one hundred and fifty.

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Speaker 4: Million users, So you know you're in election year too,

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Speaker 4: So it goes back to that third rail issue. Voting

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Speaker 4: down TikTok as a ban not good for the eighteen

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Speaker 4: twenty four year old vote.

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Speaker 5: So that's we got to see how this all puts out.

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Speaker 4: Obviously Trump on one side, by none the other in

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Speaker 4: terms of TikTok ban book, Manutian has the first shot

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Speaker 4: across the bout in terms of you know, looking for

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Speaker 4: you know, potential to line up as buyers. Others are

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Speaker 4: clearly behind the scenes doing the same thing. But it's

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Speaker 4: all a game of high stakes poker right now playing out.

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Speaker 3: So on the assumption that somehow this algorithm and the

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Speaker 3: source code does become part of the sale, who do

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Speaker 3: you think is the best strategic fit for this as

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Speaker 3: a buyer.

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Speaker 4: Look, there's a better chance of me playing in March

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Speaker 4: Madness next week than this being sold with source code.

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Speaker 5: And that's what you never know.

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Speaker 2: Man, they could never.

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Speaker 4: Again and again three pointer decent but but look, but

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Speaker 4: the point is, you never know in terms of now

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Speaker 4: what Beijing and byte Dance are thinking to now even

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Speaker 4: to just trajector you this out, what's do they do

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Speaker 4: it without source code and there's buyers.

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Speaker 5: Then the question is.

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Speaker 4: Where does it is a big tact Is it a

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Speaker 4: consortium like Ammunition other financial buyers? And this is gonna

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Speaker 4: be just despite whoever regulatory it'll get, It'll go through

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Speaker 4: the court system. And I think that's how this is

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Speaker 4: all going to play out, is there's a huge ripple

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Speaker 4: effect unintended consequences when you go down this path.

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Speaker 2: Before I let you go, I got to ask Tesla.

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Speaker 2: We talked about it earlier in the hour after that

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Speaker 2: downgrade yesterday over at Wells Fargo, saying that it's a

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Speaker 2: growth company with no growth, Uh correct, accurate, not accurate?

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Speaker 4: Look for now, I mean clearly going through massive headwinds

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Speaker 4: in China, but we've never called Tesla for the last

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Speaker 4: decade in terms of the next thirty days sixty days.

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Speaker 4: On the other side, growth is still going to be

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Speaker 4: massive ev leadership AI. That's what we continue to be

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Speaker 4: bullish here. But no doubt it is a white knuckle

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Speaker 4: period that we're going through in you know, especially in

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Speaker 4: China for Tesla, and that's why bears are all coming

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Speaker 4: out of hibernation.

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Speaker 3: Yeah, so what do you think is next for them

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Speaker 3: in the next two quarters or so in terms of

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Speaker 3: analysts coming out with dimmer views on it.

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Speaker 5: Yeah, clearly numbers are getting caught.

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Speaker 4: A lot that's getting probably, But it comes down to,

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Speaker 4: like they got away out the goalpost. Are the price

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Speaker 4: cuts done? We just came back from Asia. I think

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Speaker 4: ninety five percent price cuts are done. If they put

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Speaker 4: a line to stand, their street starts to look through

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Speaker 4: second half of the year into next year, and I

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Speaker 4: think then we sort of bought them out. It's also

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Speaker 4: about Musk the twenty five percent ownership I think at

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Speaker 4: the shareholder me and they formally go to Texas from Delaware.

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Speaker 4: That continues to also be an overhang over the stock.

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Speaker 4: I think a lot of that gets resolved. We've been

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Speaker 4: here before. I don't view this as really the end

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Speaker 4: of the Tessa growth story.

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Speaker 2: Yeah, it's just sort of like delayed kind of thing.

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Speaker 2: Hate real quick twenty seconds in video headed into their

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Speaker 2: GTCAI conference, what do you think.

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Speaker 4: The godfather of Ai Jensen I think continues to is

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Speaker 4: going to show behind the curtains just what's coming and

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Speaker 4: because they're going to continue to lead the revolution. And

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Speaker 4: this is not a nineteen ninety nine moment, it's a

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Speaker 4: nineteen ninety five and get out the popcorn parties you started.

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Speaker 2: That's how you love Dana Ives. He gives you those

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Speaker 2: wonderful soundbites. Dan Ives of Rodwood Bush. We appreciate your time. Today.

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Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on applecar.

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Speaker 6: Play and Android Auto with the Bloomberg Business Act.

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Speaker 1: flagship New York station, Just say Alexa play Bloomberg eleven thirty.

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Speaker 2: So one stock to watch is US Steel. It's down

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Speaker 2: another one point three percent today. President Biden says that

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Speaker 2: US Steel should stay in American owned and operate a company.

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Speaker 2: This is nip On Steel over in Japan is trying

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Speaker 2: to buy the company. JP Morgan now saying that it

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Speaker 2: is possible that Cleveland Cliffs could rebid for US Steel.

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Speaker 2: So it's a lot. It's a lot happening. At the

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Speaker 2: end of the day, is we need the steal. We

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Speaker 2: want to produce it. Prices are not that great, therefore

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Speaker 2: the consolidation therefore a backstop. Who better to talk to

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Speaker 2: Bloomberg Intelligence A senior analyst. He covers basic materials for

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Speaker 2: US right here at Bloomberg Richard, How did this whole thing?

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Speaker 2: I don't want to say fall apart, because it hasn't

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Speaker 2: fallen apart, but like what happened?

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Speaker 7: Really?

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Speaker 8: Politics?

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Speaker 2: Oh, that's so weird.

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Speaker 8: If you look at US steel is located in Pennsylvania.

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Speaker 8: Biden won Pennsylvania by a little over eight thousand votes

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Speaker 8: last election twenty twenty. Steel Union members in Pennsylvania are

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Speaker 8: about seven hundred and fifty thou Union members in Pennsylvania, and.

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Speaker 2: They don't necessarily want this deal to go through.

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Speaker 8: And the union does not want the deal go through.

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Speaker 8: And you also had Trump come out saying that he would.

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Speaker 9: Block the deal.

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Speaker 8: You know, there's three or four you know, I'm not

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Speaker 8: a election expert, but there's three or four critical states

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Speaker 8: that probably will flip the election. In Pennsylvania's probably.

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Speaker 9: One of them.

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Speaker 3: So I guess I'm sort of wondering, knowing that that

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Speaker 3: is the politics of the situation, what was the motivation

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Speaker 3: to bring the deal in the first place.

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Speaker 8: The motivation is if you look at the US steel

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Speaker 8: market is actually with the Infrastructure Act and Inflation Reduction Act,

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Speaker 8: is actually probably one of the more higher growth steel

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Speaker 8: markets across the world. And Nippon Steel has said that

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Speaker 8: they want to get to one hundred million tons of

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Speaker 8: steel production a year. This was kind of helped them

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Speaker 8: along that goal.

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Speaker 2: Without them though, could they not do it? And is

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Speaker 2: it because it's just expensive to get it done or

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Speaker 2: is it because the prices are low so their margins

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Speaker 2: are not great?

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Speaker 8: Not quite falling?

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Speaker 2: Oh that if the Japanese company Nippon Steel went away,

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Speaker 2: and they you need all this product here in the

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Speaker 2: US to help satisfy all the infrastructure acting the chips

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Speaker 2: act without a buyer, why can't you still just do

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Speaker 2: it on their own?

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Speaker 5: Is no?

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Speaker 8: US still can't do it on their own?

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Speaker 2: Can Okay?

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Speaker 8: And they have outlined a plan to get there, to

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Speaker 8: improve their assets and build up. You know, they're building

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Speaker 8: another plant in Arkansas, Big River Steel too, which they

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Speaker 8: built you know, but back in August, Cliffs kind of

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Speaker 8: put them in play. Cliffs came in with an offer

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Speaker 8: for thirty five dollars a share, kind of put US steel,

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Speaker 8: you know, said that they had to evaluate strategic alternatives,

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Speaker 8: spent a few months doing this, and then came up

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Speaker 8: with where Nippon was the highest bidder.

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Speaker 3: So, I guess if you've got these competing bids for it.

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Speaker 3: I mean, what's the expectation for how long this can

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Speaker 3: go on?

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Speaker 8: Well, it's it's currently under reviewed by SYPHIUS, which is

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Speaker 8: the Committee for Foreign Investment in the US. Syphius deals with

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Speaker 8: national security, so as people said, their deliberations are shrouded

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Speaker 8: in secrecy. So you know, initially, when when we looked

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Speaker 8: at the deal and we saw the union opposition, we said,

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Speaker 8: what they should do is US steal and NIPHN should

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Speaker 8: slow walk the deal locked approval get passed the November

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Speaker 8: fifth election, and then maybe, you know, politicians attentions turn elsewhere.

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Speaker 2: Is it possible that US steal says all right later

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Speaker 2: and like the and they're just going to go on

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Speaker 2: their own way.

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Speaker 8: I don't think suareholders would appreciate that appen.

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Speaker 2: So now they're like, okay, we want to get right right.

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Speaker 8: I mean the steal, you know, the stock was traded

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Speaker 8: like in the mid twenties, and you got a deal

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Speaker 8: for fifty five dollars a share.

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Speaker 2: You want to take that, you want to get something.

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Speaker 2: I guess my question is, let's pretend that the the

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Speaker 2: nip On deal falls through. Let's say Cleveland Clips comes

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Speaker 2: back in and rebids, right, and the company's like, all right,

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Speaker 2: I guess we're up for sale. Is the US government

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Speaker 2: going to like that deal? Because that's gonna that's gonna

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Speaker 2: be antitrust concern right.

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Speaker 8: That's so it's just from national securities to anti trust concerns.

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Speaker 8: And also the other thing one of the areas of

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Speaker 8: anti trust would would come on our scrutiny. US still

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Speaker 8: and clean Cliffs are two of the biggest players to

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Speaker 8: the auto industry, so you have, you know, the auto companies,

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Speaker 8: you know, not happy with the deal there.

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Speaker 3: So to go back though to the politics of it,

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Speaker 3: just thinking through some of the opposition to the npon bid,

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Speaker 3: because a lot of that had to do with the

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Speaker 3: objection from the steel workers. So if you think of

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Speaker 3: it of an American bidder coming in, do you think

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Speaker 3: that's an easier that's an easier thing for steel workers

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Speaker 3: to accept?

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Speaker 8: Well, it's you know, Cleveland Cliffs is has a very

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Speaker 8: good relationship with the steel workers union, so that's why

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Speaker 8: the union has been favoring Cleveland Cliffs. In fact, in

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Speaker 8: the in the union agreements, there's a thing called right

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Speaker 8: to bid where if a be under a with the

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Speaker 8: US steel has a contract with the steel union gets

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Speaker 8: acquired by somebody, the union has a right to bid.

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Speaker 8: So in this whole escapade, the US steel Workers Union

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Speaker 8: assign their right to bid to cliffs, so favoring cliffs

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Speaker 8: and things along those lines.

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Speaker 10: Can I just ask, like, what's the fear of a

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Speaker 10: foreign company owning US steel? I mean, they're gonna nip

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Speaker 10: on steel is going to pack it up and move

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Speaker 10: it to.

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Speaker 2: Japan because Japan is supposed to be like a friendly

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Speaker 2: country like well, and it's.

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Speaker 10: Not like they're going to like raise prices to the

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Speaker 10: point where they're going to shoot themselves in the foot

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Speaker 10: to like have sales decline. I mean what it's now

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Speaker 10: part of this is jingoistic, is that agreed?

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Speaker 8: And also Japan is the biggest number the number one

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Speaker 8: a foreign direct investor in the United States. US has

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Speaker 8: over five trillion dollars a foreign direct investment. Japan accounts

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Speaker 8: for fifteen percent of it. It's the biggest foreign direct

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Speaker 8: investor in the United States. So on that it doesn't

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Speaker 8: really make sense either.

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Speaker 2: Hence just pointing out the whole union politicking of it. Okay,

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Speaker 2: so what do you think actually happens? Best guess?

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Speaker 8: Best guess I think you got a lots smart people

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Speaker 8: and at both companies.

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Speaker 5: I think.

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Speaker 8: I, like I said earlier, I would slow walk the.

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Speaker 2: Deal and get something.

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Speaker 8: Passed the elections and see what happens. You're probably going

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Speaker 8: to have to pay the union a little bit more

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Speaker 8: to get them on board. But Nippon still just could

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Speaker 8: deal two to three days ago with the unions in Japan,

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Speaker 8: so obviously they realized the worker landscape of wages are

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Speaker 8: going up.

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Speaker 3: Oh you know what, I wonder if the financing picture

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Speaker 3: will be a little bit easier if they cancel walk

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Speaker 3: the deal and get it past the election, because looking

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Speaker 3: at the FED dot plot, we could have had a

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Speaker 3: couple of industry cuts by then, so maybe it'll be

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Speaker 3: a bit cheaper.

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Speaker 8: They have everything all right align you know, companies have

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Speaker 8: you know, signed up to provide them the fifteen billion

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Speaker 8: dollars that don't need to buy all.

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Speaker 2: Right, So banks have broadening out for a second, what

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Speaker 2: is steel demand like right now globally and in the US,

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Speaker 2: and how prices because if you want to find one

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Speaker 2: ticker for steel prices, good luck, it is such a

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Speaker 2: regional market. Yeah, give me the landscape.

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Speaker 8: No steel prices are you know, what we had was

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Speaker 8: kind of an interesting year. Usually you have steel prices

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Speaker 8: at the beginning of the year increase because of seasonality.

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Speaker 8: Obviously constructions construction is the biggest market summer, it's easier

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Speaker 8: to do construction.

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Speaker 11: Everybody's buying steel.

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Speaker 8: What happened is that auto workers strike last year. Everybody

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Speaker 8: held off buying steel because they thought steel prices would

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Speaker 8: really go down because the auto workers strike was rumored

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Speaker 8: to be prolonged. And really what happened is the auto

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Speaker 8: workers strike didn't have as much effect as people thought.

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Speaker 8: Everybody rushed back to the market and really pulled in

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Speaker 8: pricing at the end of last year, so you had

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Speaker 8: kind of that peak of pricing rather than coming in

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Speaker 8: the first quarter. Actually prices peak back at the end

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Speaker 8: of January. They've it looks like now they're probably've hit

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Speaker 8: a bottom. Both New Core and Cliffs that come out

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Speaker 8: with announcements that you know, eight hundred and twenty five

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Speaker 8: dollars a ton we want and eight forty respectively, So

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Speaker 8: that's kind of stopped the free falling prices. You have

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Speaker 8: a lot uncertainty. What I would characterize across the world

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Speaker 8: is hand the mouth buying. You're just buying what you need.

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Speaker 8: You're not taking any speculative risk or anything like that

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Speaker 8: to build up inventoris.

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Speaker 2: Hi, Richard, thanks a lot. We super appreciate it. Richard Burg,

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Speaker 2: Bloomberg Intelligence, Senior analyst on US Steel.

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Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live

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Speaker 1: weekdays at ten am Eastern on Affo car Playing and

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Speaker 1: broun Otto with the bloom Bird Business app. Listen on

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Speaker 1: on YouTube.

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Speaker 2: So let's get to the retail sales here. That disappointed

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Speaker 2: and this just goes to my point. I tell everyone

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Speaker 2: I'm on a budget and no one believes me, and

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Speaker 2: yet these sales prove that it's true. Just putting that

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Speaker 2: out there. Jill Blanchard is president of Enterprise Client Solutions

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Speaker 2: over at Advantage At Solutions and she joins US. So

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Speaker 2: I'm looking at Control Group flat for February back out autos,

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Speaker 2: back out gas just up by three tenths. You also

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Speaker 2: had January revised lower. What's the state of the economy

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Speaker 2: When you look at consumption, you look at retail.

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Speaker 12: So hello, thanks for having me back. I was listening

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Speaker 12: before Happy Friday Eve. It still continues to be a

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Speaker 12: struggle for consumers out there when we look at things

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Speaker 12: like in consumer package, because the prices are still up

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Speaker 12: six point eight percent.

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Speaker 11: Versus last year.

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Speaker 12: The good news is that in the recent Advantage Outlook survey,

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Speaker 12: manufacturers fifty percent said that they don't have plans to

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Speaker 12: increase prices, but we do have a that plan to

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Speaker 12: increase prices on non core items, so think of things

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Speaker 12: like a.

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Speaker 11: Smaller size package or a low fat version.

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Speaker 12: Where we really get concerned is with the value priced brands,

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Speaker 12: and so those are the lower price brands that typically

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Speaker 12: compete with like a private brand. Those those brands have

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Speaker 12: increased their prices one point five points higher than a

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Speaker 12: mainstream price or a premium price, and so essentially is

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Speaker 12: the rising of the floor further squeezing consumers.

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Speaker 3: So it's interesting, you've got the cheaper stuff is getting

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Speaker 3: more expensive, and then you've got continued triflation. It sounds like,

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Speaker 3: so you know, how much more of this can consumers take?

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Speaker 3: Because you know, at the same time you've got an

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Speaker 3: incredibly strong job market, so something's got to give.

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Speaker 9: I would have thought at some point.

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Speaker 12: We do see a lot of give actually out there

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Speaker 12: in the form of a few things.

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Speaker 11: One is trade down right or pare down.

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Speaker 12: And so we see consumers you know, pairing down whether

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Speaker 12: they're buying a you know, a used luxury car instead

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Speaker 12: of a new luxury car, or they're trying to make

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Speaker 12: meals at home instead of going out, and so we

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Speaker 12: see a lot of shifting in that spending to lower

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Speaker 12: price things. We see consumers buying more private brand boys.

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Speaker 12: They're having a really good day. In fact, to seventy

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Speaker 12: five percent of retailers say that they're number one growth

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Speaker 12: strategy is private brand. We see consumers buying things on promotions,

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Speaker 12: so we're definitely seeing a big shift in behavior. Promotions

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Speaker 12: are a top strategy for manufacturers and for retailers, but

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Speaker 12: they've got to be really careful not to sacrifice tomorrow

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Speaker 12: by giving away today. And consumers are becoming more disloyal

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Speaker 12: to brands because they're waiting for brands to be on

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Speaker 12: sale or switching to a brand to be on sale.

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Speaker 12: I mean, consumers new loyalty is disloyalty.

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Speaker 2: That is such an interesting point because you've basically described

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Speaker 2: my entire shopping habit for discretionary So I wanted to

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Speaker 2: go to the point of sort of the macro and

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Speaker 2: then the retail. So let's just pretend we get three

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Speaker 2: or four rate cuts this year, right, does a consumer

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Speaker 2: all of a sudden go out and spend a lot?

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Speaker 2: Is their pent up demand in this area that you.

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Speaker 12: See, No, I don't see. I don't see the consumers

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Speaker 12: going out and spending more. Consumers are going to continue

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Speaker 12: to well, actually they might tick up a little bit

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Speaker 12: on the out of home spending. So think of things

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Speaker 12: like the big ticket items like a car or vacation,

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Speaker 12: a home remodel. That might tick up a little bit,

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Speaker 12: but those are such big priced items that consumers really

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Speaker 12: have been pairing that down or foregoing that in lieu

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Speaker 12: of in home activities, in lieu of affordable indulgences. So

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Speaker 12: think of things like getting your nails done at home

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Speaker 12: instead of a spot.

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Speaker 11: So I could see a little bit, but not a lot.

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Speaker 3: So I guess what's next for retail because it doesn't

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Speaker 3: sound like a particularly you know, enthusiastic outlook there for

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Speaker 3: the consumer.

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Speaker 12: Yeah, I mean both both manufacturers and retailers are really

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Speaker 12: struggling to find a path to win for both of

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Speaker 12: them as well as consumers.

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Speaker 11: As I said upfront, it's a super challenging environment.

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Speaker 12: Retailers have to find the right way to promote, and

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Speaker 12: when they all have the same strategy, it's hard to win.

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Speaker 12: And pretty much when you talk to any company out there,

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Speaker 12: they've got a plan to win in an environment that's

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Speaker 12: largely going to be stable flat to down. So they

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Speaker 12: truly have to find a differentiated way to meet that

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Speaker 12: consumer where they need to be met to win, whether

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Speaker 12: that's a differentiated way with products, which is also pretty interesting.

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Speaker 12: If you look at retailers, over forty percent plan to

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Speaker 12: carry less products, but higher performing retailers carrying more product,

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Speaker 12: which really speaks to consumers valuing choice and differentiation. So

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Speaker 12: lots of different strategies, it's really going to be challenging

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Speaker 12: to find the right one to win.

443
00:22:48,960 --> 00:22:51,000
Speaker 2: Yeah, I would find it to be so hard, like

444
00:22:51,040 --> 00:22:53,639
Speaker 2: so much that you have to anticipate and then stock

445
00:22:53,720 --> 00:22:55,400
Speaker 2: up and then if not, you're looking at eighty eighty

446
00:22:55,440 --> 00:22:58,879
Speaker 2: five ninety percent discounts, which I love, but can't be

447
00:22:58,920 --> 00:23:02,840
Speaker 2: good for an investor. Who would you say has a

448
00:23:02,840 --> 00:23:06,400
Speaker 2: good strategy, Like, what's a good formula to emulate.

449
00:23:08,200 --> 00:23:08,240
Speaker 4: You?

450
00:23:08,640 --> 00:23:10,240
Speaker 11: Right now? We see consumers.

451
00:23:10,320 --> 00:23:14,200
Speaker 12: I talked about consumers pairing down. I think discount retailers

452
00:23:14,280 --> 00:23:16,720
Speaker 12: are having a really good day and it's making it

453
00:23:16,800 --> 00:23:21,000
Speaker 12: pretty challenging for mainstream retailers. So mainstream retailers need to

454
00:23:21,040 --> 00:23:23,560
Speaker 12: look at why consumers are going there.

455
00:23:23,720 --> 00:23:23,840
Speaker 11: Is it?

456
00:23:24,280 --> 00:23:27,199
Speaker 12: Is it purely priced? Is it the ability to one

457
00:23:27,280 --> 00:23:30,920
Speaker 12: stop shop? Is it the ability to you know, the

458
00:23:30,920 --> 00:23:34,520
Speaker 12: the environment of the retailers, So retailers need to look

459
00:23:34,560 --> 00:23:37,359
Speaker 12: at or is it their online strategy? So lots of

460
00:23:37,400 --> 00:23:40,480
Speaker 12: different things to look at, But who's winning are largely

461
00:23:40,600 --> 00:23:41,679
Speaker 12: discount retailers.

462
00:23:42,240 --> 00:23:43,679
Speaker 3: You know, could you give us a sense of the

463
00:23:43,720 --> 00:23:46,720
Speaker 3: bigger picture here for consumers because you know, I've certainly

464
00:23:46,760 --> 00:23:50,040
Speaker 3: read a lot about consumers moving away from stuff and

465
00:23:50,080 --> 00:23:53,399
Speaker 3: towards experiences. But everything is so expensive right now, so

466
00:23:54,359 --> 00:23:56,840
Speaker 3: you know, for you're mentioning that it's the discounters that

467
00:23:56,880 --> 00:23:58,960
Speaker 3: are winning, but that's a very you know, sort of

468
00:24:00,040 --> 00:24:01,200
Speaker 3: centraded area in retail.

469
00:24:01,240 --> 00:24:02,680
Speaker 9: I would have thought, So, you know.

470
00:24:02,840 --> 00:24:05,920
Speaker 3: Is the thought there that retail is just perhaps too big.

471
00:24:08,280 --> 00:24:10,840
Speaker 12: That retail too big? Now I think it's more that

472
00:24:10,960 --> 00:24:15,399
Speaker 12: retail is really varied. So I would say, in response

473
00:24:15,440 --> 00:24:17,600
Speaker 12: to your question about what does this mean for consumers,

474
00:24:17,960 --> 00:24:21,199
Speaker 12: consumers behavior today is so drastically different than it used

475
00:24:21,200 --> 00:24:23,160
Speaker 12: to be in twenty nineteen in terms of.

476
00:24:23,280 --> 00:24:26,080
Speaker 11: You know, what we buy, how we buy, and when

477
00:24:26,119 --> 00:24:26,760
Speaker 11: we buy.

478
00:24:26,640 --> 00:24:31,480
Speaker 12: Think of online, think of discount, think of of you know, of.

479
00:24:33,080 --> 00:24:33,760
Speaker 11: Being in the.

480
00:24:33,720 --> 00:24:37,880
Speaker 12: Home versus outside the home. So the future for consumers

481
00:24:38,040 --> 00:24:42,479
Speaker 12: is that continued shift, you know, towards more value based living.

482
00:24:42,920 --> 00:24:45,919
Speaker 12: I'd say one thing that we talk about often is

483
00:24:45,960 --> 00:24:49,040
Speaker 12: the is the baking aisle. And twenty nineteen in the

484
00:24:49,080 --> 00:24:52,800
Speaker 12: grocery store that ale gather dust, and now it is

485
00:24:52,880 --> 00:24:55,240
Speaker 12: the hot spot. Over twenty twenty and twenty twenty one,

486
00:24:55,280 --> 00:24:58,240
Speaker 12: we actually created a lot of bakers, and today it's

487
00:24:58,240 --> 00:25:01,159
Speaker 12: really one of the fastest growing aisles in the store.

488
00:25:01,920 --> 00:25:04,520
Speaker 2: I did the baking thing before and then during the

489
00:25:04,760 --> 00:25:06,439
Speaker 2: you were ahead of the curve. I was ahead of

490
00:25:06,440 --> 00:25:07,520
Speaker 2: the curve, says no one ever.

491
00:25:07,560 --> 00:25:09,040
Speaker 10: But what is it the bake? What is it? You

492
00:25:09,040 --> 00:25:11,920
Speaker 10: bake like a chocolate I happen to love chocolate cake,

493
00:25:12,040 --> 00:25:13,680
Speaker 10: so I actually.

494
00:25:13,320 --> 00:25:16,800
Speaker 2: Have a fantastic chocolate cake recipe that is super east.

495
00:25:16,800 --> 00:25:17,680
Speaker 10: I don't want the recipe.

496
00:25:17,760 --> 00:25:19,480
Speaker 2: I'm going to give it to you. I'll bake it

497
00:25:19,520 --> 00:25:22,480
Speaker 2: at some point. But I actually do like baking, like

498
00:25:22,680 --> 00:25:25,840
Speaker 2: bread and clastants and things like that. But anyway, that

499
00:25:26,080 --> 00:25:29,760
Speaker 2: was hard to do U during the pandemic before we

500
00:25:29,840 --> 00:25:32,320
Speaker 2: let you go. So I gotta say, I go out

501
00:25:32,359 --> 00:25:35,000
Speaker 2: to eat, you know, two adults and a kid, and

502
00:25:35,080 --> 00:25:38,000
Speaker 2: it's like three hundred dollars. It's bananas. And I'm not

503
00:25:38,080 --> 00:25:40,240
Speaker 2: talking like a super fancy restaurant, like I'm talking like

504
00:25:40,280 --> 00:25:43,000
Speaker 2: the neighborhood place. At what point do you think that

505
00:25:43,080 --> 00:25:45,320
Speaker 2: that's going to top out? And then we're gonna see

506
00:25:45,320 --> 00:25:47,399
Speaker 2: people sort of readjust and then all of a sudden

507
00:25:47,480 --> 00:25:49,080
Speaker 2: the stay at home stuff comes back.

508
00:25:51,119 --> 00:25:55,320
Speaker 12: Yeah, I'm right right now, out of home food prices

509
00:25:55,600 --> 00:25:58,800
Speaker 12: are are higher in terms of their increases than in

510
00:25:58,960 --> 00:26:01,560
Speaker 12: home and so it really is making it challenging for

511
00:26:01,800 --> 00:26:04,800
Speaker 12: families to do more things outside the home. That has

512
00:26:04,920 --> 00:26:10,040
Speaker 12: already contributed to increased in home consumption, which will continue

513
00:26:10,119 --> 00:26:12,680
Speaker 12: to grow if we if we continue to see the

514
00:26:12,800 --> 00:26:15,480
Speaker 12: outside the home food prices elevate.

515
00:26:17,040 --> 00:26:19,639
Speaker 3: That's really interesting because I feel like restaurants are just

516
00:26:19,680 --> 00:26:22,520
Speaker 3: getting so squeezed. They've got the staffing issues, they've got

517
00:26:22,560 --> 00:26:25,720
Speaker 3: the food costs, and so consumers just want to break.

518
00:26:25,840 --> 00:26:28,880
Speaker 3: But you know, cooking at home is has its own

519
00:26:28,960 --> 00:26:32,280
Speaker 3: challenges and you know, you're mentioning the point about food

520
00:26:32,320 --> 00:26:34,840
Speaker 3: at home and people are so pressed for time. It's

521
00:26:35,000 --> 00:26:36,159
Speaker 3: kind of like one of those things, how do you

522
00:26:36,240 --> 00:26:36,880
Speaker 3: trade that down?

523
00:26:39,160 --> 00:26:41,520
Speaker 12: I sometimes feel like the world that we're living in

524
00:26:41,600 --> 00:26:45,800
Speaker 12: today is so circular, right, So the cost have increased everywhere,

525
00:26:45,920 --> 00:26:48,840
Speaker 12: and it continues to go to be passed around. Right,

526
00:26:48,960 --> 00:26:52,360
Speaker 12: So restaurants are paying more for their for their products,

527
00:26:52,400 --> 00:26:55,439
Speaker 12: for transportation and distribution of the products, for their labor,

528
00:26:55,880 --> 00:26:58,000
Speaker 12: and they're having to pass as much as they can

529
00:26:58,280 --> 00:27:02,000
Speaker 12: onto consumers who in turn can't really afford that and

530
00:27:02,119 --> 00:27:04,960
Speaker 12: are cutting back, and so it continues to have a

531
00:27:05,119 --> 00:27:08,400
Speaker 12: circular effect on the overall economy.

532
00:27:08,960 --> 00:27:11,359
Speaker 2: Well, great stuff, Jill, really appreciate it. Thank you so much.

533
00:27:11,480 --> 00:27:16,320
Speaker 2: Jill Blanchard, President of Enterprise Client Solutions for Advantage Solutions

534
00:27:16,400 --> 00:27:18,399
Speaker 2: time other weeker retail sales.

535
00:27:19,960 --> 00:27:23,800
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

536
00:27:23,920 --> 00:27:26,840
Speaker 1: weekdays at ten am Eastern on applecar.

537
00:27:26,480 --> 00:27:29,200
Speaker 6: Play and Android Auto with the Bloomberg Business app.

538
00:27:29,359 --> 00:27:32,159
Speaker 1: You can also listen live on Amazon Alexa from our

539
00:27:32,200 --> 00:27:36,560
Speaker 1: flagship New York station, Just Say Alexa Play Bloomberg eleven thirty.

540
00:27:38,119 --> 00:27:42,040
Speaker 2: Blackstone President John Gray was in Rome tough gig attending

541
00:27:42,080 --> 00:27:44,919
Speaker 2: the Bank of America Global Investor Summit conference, and here

542
00:27:45,080 --> 00:27:48,480
Speaker 2: was the headline, Time to buy real estate as prices

543
00:27:48,840 --> 00:27:52,120
Speaker 2: are at bottom, he says, quote the perception so negative,

544
00:27:52,160 --> 00:27:54,480
Speaker 2: and yet the value decline has occurred. So when you

545
00:27:54,520 --> 00:27:57,240
Speaker 2: get into this bottoming period, that's when you want to move.

546
00:27:57,320 --> 00:28:00,320
Speaker 2: Let's get another perspective here. Lisa Nie is managing partner

547
00:28:00,359 --> 00:28:03,119
Speaker 2: and head of real Estate over at Eisner Amper. She

548
00:28:03,320 --> 00:28:06,040
Speaker 2: joins us here in the studio, is that true? I mean,

549
00:28:06,080 --> 00:28:08,000
Speaker 2: who's going to disagree with John Gray, like clearly talking

550
00:28:08,040 --> 00:28:10,760
Speaker 2: your book for Blackstone too, but price is bottom, time

551
00:28:10,800 --> 00:28:11,080
Speaker 2: to buy?

552
00:28:11,600 --> 00:28:13,200
Speaker 13: Well, first of all, thank you for having me. So

553
00:28:13,440 --> 00:28:16,560
Speaker 13: his perspective is correct. And so what happened when Signature

554
00:28:16,600 --> 00:28:19,040
Speaker 13: Bank went out and brought its portfolio out to market.

555
00:28:20,240 --> 00:28:22,200
Speaker 13: The prices were at a really good rate for people

556
00:28:22,240 --> 00:28:25,040
Speaker 13: to come in and take the opportunities and go purchase

557
00:28:25,080 --> 00:28:27,480
Speaker 13: all those great assets that were in that portfolio. And

558
00:28:27,640 --> 00:28:29,919
Speaker 13: so he was one of the companies that went out

559
00:28:30,080 --> 00:28:32,480
Speaker 13: and was looking at those portfolios. So there's plenty of

560
00:28:32,560 --> 00:28:35,760
Speaker 13: opportunities for that careful investor to go out and there

561
00:28:35,840 --> 00:28:38,160
Speaker 13: is capital to go out there, whether you're saying it's

562
00:28:38,200 --> 00:28:41,320
Speaker 13: a distressed asset or a really good investment. The market

563
00:28:41,520 --> 00:28:44,640
Speaker 13: is set to go out and have an influx of

564
00:28:44,720 --> 00:28:48,200
Speaker 13: capital within commercial real estate, whichever sector it is. So

565
00:28:48,560 --> 00:28:50,800
Speaker 13: never going to disagree with him. He certainly is accurate

566
00:28:50,880 --> 00:28:53,560
Speaker 13: on that one. And again it's for that investor who's

567
00:28:53,600 --> 00:28:56,000
Speaker 13: making sure that they're really doing their due diligence and

568
00:28:56,040 --> 00:28:58,640
Speaker 13: their background, making sure that the interest rates and the

569
00:28:58,720 --> 00:29:01,280
Speaker 13: cash flows make sense. That's always first and foremost.

570
00:29:01,680 --> 00:29:03,680
Speaker 9: I mean, I for one, definitely would not want to

571
00:29:03,720 --> 00:29:04,440
Speaker 9: disagree with him.

572
00:29:04,480 --> 00:29:07,680
Speaker 3: But one question I would have is the whole reason

573
00:29:07,720 --> 00:29:10,440
Speaker 3: why we're in this commercial real estate crisis is because

574
00:29:10,560 --> 00:29:13,760
Speaker 3: of the shift to working from home, and so is

575
00:29:13,800 --> 00:29:16,520
Speaker 3: that crisis over? I mean, it still seems to me

576
00:29:16,640 --> 00:29:19,640
Speaker 3: that you know, personal anecdote only, but the subway isn't

577
00:29:19,680 --> 00:29:21,600
Speaker 3: nearly as full as it used to be, even though

578
00:29:21,600 --> 00:29:23,760
Speaker 3: it's picked up a little bit. I mean, if people

579
00:29:23,760 --> 00:29:26,400
Speaker 3: are still working from home, there's still quite a lot

580
00:29:26,440 --> 00:29:27,880
Speaker 3: of risk there for somebody trying to get in at

581
00:29:27,920 --> 00:29:28,640
Speaker 3: these low prices.

582
00:29:29,040 --> 00:29:31,960
Speaker 13: Yeah, so real estate is cyclical, So every asset class

583
00:29:32,000 --> 00:29:34,360
Speaker 13: goes through its highs and lows. It was retail, now

584
00:29:34,440 --> 00:29:36,640
Speaker 13: it's we're at the lows of office, we're going to

585
00:29:36,680 --> 00:29:40,600
Speaker 13: see some inflections and some differentiation within a multifamily as well.

586
00:29:40,920 --> 00:29:44,480
Speaker 13: And when we look at what work from home concept did.

587
00:29:44,920 --> 00:29:47,440
Speaker 13: I'm looking around here today and I'm seeing a great

588
00:29:47,480 --> 00:29:50,240
Speaker 13: amount of activity where people are collaboration. And if you

589
00:29:50,360 --> 00:29:53,200
Speaker 13: look back, I think two or three years ago, all

590
00:29:53,240 --> 00:29:55,280
Speaker 13: the big tech companies that everyone gets to work from home,

591
00:29:55,360 --> 00:29:58,640
Speaker 13: and they've changed their statements. They're coming and saying we

592
00:29:58,760 --> 00:30:01,000
Speaker 13: want you back two to three days. And when you

593
00:30:01,080 --> 00:30:03,640
Speaker 13: look at an office lease, you're leasing office space for

594
00:30:03,720 --> 00:30:04,320
Speaker 13: five days, but.

595
00:30:04,360 --> 00:30:05,440
Speaker 9: You're getting it for seven.

596
00:30:06,000 --> 00:30:08,960
Speaker 13: And so it's just changing how you're looking at office

597
00:30:09,240 --> 00:30:10,880
Speaker 13: and looking at some of the buildings that are out

598
00:30:10,880 --> 00:30:13,720
Speaker 13: there in the marketplace, those older buildings that need some

599
00:30:14,120 --> 00:30:17,360
Speaker 13: adaptive reuse. We're going to need that regardless of where

600
00:30:17,400 --> 00:30:18,240
Speaker 13: we were in this cycle.

601
00:30:19,080 --> 00:30:20,640
Speaker 2: Yeah, and you think there's people out here now, you

602
00:30:20,640 --> 00:30:22,920
Speaker 2: just wait till the snacks come up around two. It's

603
00:30:23,000 --> 00:30:26,000
Speaker 2: like a people wait online for that stuff. So to

604
00:30:26,160 --> 00:30:28,040
Speaker 2: that point, just in terms of the capital being out there,

605
00:30:28,320 --> 00:30:31,360
Speaker 2: do you notice the bid ask like, have we resolved

606
00:30:31,440 --> 00:30:33,800
Speaker 2: for that gap yet or is that still to come.

607
00:30:34,440 --> 00:30:36,280
Speaker 11: So that it hasn't been resolved.

608
00:30:36,320 --> 00:30:38,440
Speaker 13: And what's happening is because of the banks and their

609
00:30:38,520 --> 00:30:41,680
Speaker 13: underwriting and regulations, they're unable to go in and provide

610
00:30:41,880 --> 00:30:45,160
Speaker 13: a capital at at a rate that's worthy of the

611
00:30:45,920 --> 00:30:49,320
Speaker 13: what's being underwritten. So who's coming in the rescue capital,

612
00:30:49,360 --> 00:30:51,680
Speaker 13: which is people who are opportunistic, So you're going to

613
00:30:51,760 --> 00:30:54,240
Speaker 13: come in as a preferred equity or a mess lender,

614
00:30:54,480 --> 00:30:55,880
Speaker 13: or you know, at a higher rate.

615
00:30:56,280 --> 00:30:58,480
Speaker 2: And so those interest rates, if you're that.

616
00:30:58,680 --> 00:31:00,800
Speaker 13: Really discerned investor, is going to be very good for you,

617
00:31:00,960 --> 00:31:02,720
Speaker 13: but it's not going to be great for the owners

618
00:31:03,280 --> 00:31:04,880
Speaker 13: and they're not going to get their cash flow back.

619
00:31:05,240 --> 00:31:08,040
Speaker 13: So the rates right now for the rescue is really

620
00:31:08,120 --> 00:31:11,920
Speaker 13: really high, So we're not at that time. Well, we've

621
00:31:12,000 --> 00:31:15,400
Speaker 13: seen some preferred equity coming in between eighteen and twenty percent.

622
00:31:15,520 --> 00:31:18,440
Speaker 13: That's very Remember those are for some distress deals that

623
00:31:18,560 --> 00:31:21,040
Speaker 13: might need that rescuing and they just don't want to

624
00:31:21,040 --> 00:31:22,600
Speaker 13: get back the properties.

625
00:31:22,880 --> 00:31:24,440
Speaker 9: What's it going to take to broaden this out? But

626
00:31:24,520 --> 00:31:26,240
Speaker 9: YEWND non rescue deals.

627
00:31:27,360 --> 00:31:28,160
Speaker 11: What's it going to take?

628
00:31:28,320 --> 00:31:30,120
Speaker 13: So it's we have to wait to see, as you

629
00:31:30,200 --> 00:31:31,720
Speaker 13: mentioned before, what the Feds are going to be doing

630
00:31:31,800 --> 00:31:33,400
Speaker 13: later in the year where interest rates are going to

631
00:31:33,440 --> 00:31:35,720
Speaker 13: be who's going to be providing that capital? Is it

632
00:31:35,760 --> 00:31:37,480
Speaker 13: going to be the banks getting back into the market.

633
00:31:37,760 --> 00:31:39,480
Speaker 13: So once if the banks go back in and they're

634
00:31:39,600 --> 00:31:42,160
Speaker 13: at a better point where we can pencil out.

635
00:31:42,080 --> 00:31:43,640
Speaker 9: Some deals, it could take.

636
00:31:43,720 --> 00:31:46,200
Speaker 13: It could just be a wait and see approach. Also,

637
00:31:46,240 --> 00:31:48,200
Speaker 13: there's not a lot of trading going on, so people

638
00:31:48,320 --> 00:31:52,040
Speaker 13: really don't have the true understanding what valuations are right now.

639
00:31:52,440 --> 00:31:54,960
Speaker 13: So time's going to tell, and we really don't know

640
00:31:54,960 --> 00:31:56,400
Speaker 13: where we're going to end up in the long term

641
00:31:56,680 --> 00:32:00,200
Speaker 13: because consumer behavior is still so different than any one

642
00:32:00,600 --> 00:32:01,960
Speaker 13: has anticipated in the past.

643
00:32:02,320 --> 00:32:06,240
Speaker 2: So let's broaden out then and talk about say reshoring, onshoring,

644
00:32:06,320 --> 00:32:09,600
Speaker 2: near shoring, all that stuff and logistics we were supposed

645
00:32:09,640 --> 00:32:11,200
Speaker 2: to see like a ton of data centers, build, a

646
00:32:11,240 --> 00:32:13,360
Speaker 2: ton of logistics, and then a ton of factories built.

647
00:32:13,400 --> 00:32:15,440
Speaker 2: Are we still seeing all of those three things happen?

648
00:32:16,080 --> 00:32:17,640
Speaker 13: So I love the fact that you brought up the

649
00:32:17,640 --> 00:32:21,560
Speaker 13: concept near shoring, which is now Canada and Mexico really

650
00:32:21,680 --> 00:32:23,480
Speaker 13: is coming in because so it's going to really change

651
00:32:23,520 --> 00:32:27,239
Speaker 13: the landscape of where those industry and those warehouses were

652
00:32:27,280 --> 00:32:29,160
Speaker 13: being built before they were built on the East and

653
00:32:29,240 --> 00:32:31,160
Speaker 13: West coast. Now you're going to see them having to

654
00:32:31,240 --> 00:32:33,760
Speaker 13: be built northern and southern because that's where the cheaper

655
00:32:35,800 --> 00:32:37,200
Speaker 13: containers are going to be able to be brought in.

656
00:32:37,760 --> 00:32:41,680
Speaker 13: Because so Mexico, which was our largest importer export of

657
00:32:41,760 --> 00:32:44,280
Speaker 13: this year, and Canada coming in. So it's going to

658
00:32:44,400 --> 00:32:47,760
Speaker 13: change where those industrial cities have been historically in the US,

659
00:32:48,040 --> 00:32:50,080
Speaker 13: and it's going to change the landscape. So once you

660
00:32:50,280 --> 00:32:52,720
Speaker 13: change the north and the south with the industries, you're

661
00:32:52,800 --> 00:32:55,680
Speaker 13: also for an industrial center. Multi family is going to change.

662
00:32:55,680 --> 00:32:58,800
Speaker 13: Commercial office center's going to change there. So to really

663
00:32:58,880 --> 00:33:01,440
Speaker 13: look at where we are in the and those cycles

664
00:33:01,480 --> 00:33:03,920
Speaker 13: could be really interesting when you're looking at the concept

665
00:33:04,000 --> 00:33:05,920
Speaker 13: of near shoring versus right shoring.

666
00:33:06,000 --> 00:33:06,600
Speaker 9: It's interesting.

667
00:33:06,840 --> 00:33:08,320
Speaker 3: Can we shift gears a little bit to talk to

668
00:33:08,440 --> 00:33:10,320
Speaker 3: us about a subject very near to my heart, which

669
00:33:10,360 --> 00:33:11,920
Speaker 3: is residential realize, Oh, yes.

670
00:33:12,320 --> 00:33:13,160
Speaker 2: We always go there.

671
00:33:13,440 --> 00:33:14,320
Speaker 9: We always go there.

672
00:33:14,520 --> 00:33:17,520
Speaker 10: We just take out an ad, you know, looking.

673
00:33:18,080 --> 00:33:21,800
Speaker 2: She's looking to buy. It's not the best process.

674
00:33:21,880 --> 00:33:24,000
Speaker 9: I might have a house, help me out, don't's get

675
00:33:24,080 --> 00:33:24,400
Speaker 9: a house?

676
00:33:24,480 --> 00:33:29,000
Speaker 2: Some long house applies coming online? Okay, cheap though, there

677
00:33:29,040 --> 00:33:29,200
Speaker 2: you go.

678
00:33:29,560 --> 00:33:31,360
Speaker 9: So what's the outlook? What am I looking for here?

679
00:33:31,800 --> 00:33:33,560
Speaker 9: So I think you have it?

680
00:33:33,640 --> 00:33:35,720
Speaker 13: Spot on is so the people who have the homes

681
00:33:36,080 --> 00:33:38,120
Speaker 13: would be looking to go. We have no place to

682
00:33:38,200 --> 00:33:40,800
Speaker 13: go to to sell, and so for us to replace

683
00:33:41,200 --> 00:33:43,600
Speaker 13: our homes is there's no place for us to go

684
00:33:43,720 --> 00:33:46,280
Speaker 13: at a low cost of capital. And so that's why

685
00:33:46,360 --> 00:33:49,320
Speaker 13: that housing market is so difficult and why pricing is

686
00:33:49,400 --> 00:33:54,000
Speaker 13: still so high for residential for single family homes. And

687
00:33:54,120 --> 00:33:56,280
Speaker 13: if you look and you look at Biden's bill that

688
00:33:56,360 --> 00:33:59,000
Speaker 13: he's proposing out there, when he's talking about housing, they

689
00:33:59,000 --> 00:34:02,120
Speaker 13: are very well aware that we have we are do

690
00:34:02,280 --> 00:34:05,800
Speaker 13: not have enough supply for the demand of single family homes.

691
00:34:06,080 --> 00:34:09,320
Speaker 13: And so you are not alone with your frustrations. But

692
00:34:09,480 --> 00:34:12,120
Speaker 13: for people who could be potential buyers, we're sitting and

693
00:34:12,160 --> 00:34:12,840
Speaker 13: waiting because we.

694
00:34:12,920 --> 00:34:15,120
Speaker 2: Don't know where our next home is going to be.

695
00:34:15,280 --> 00:34:17,680
Speaker 13: And that's not helping your story at all.

696
00:34:17,840 --> 00:34:21,439
Speaker 2: So I'm yeah, she pain, she feels your.

697
00:34:21,320 --> 00:34:23,680
Speaker 10: Pain on it and a three twenty five, I think

698
00:34:23,719 --> 00:34:24,480
Speaker 10: we're staying put.

699
00:34:24,800 --> 00:34:26,960
Speaker 2: Really, yeah, we can't replace it.

700
00:34:27,080 --> 00:34:30,120
Speaker 10: That's that's really what My mortgage is higher. My toll

701
00:34:30,239 --> 00:34:32,040
Speaker 10: bills are higher than my mortgage.

702
00:34:32,080 --> 00:34:33,839
Speaker 2: But that's a reflection how you feel about your toll bills.

703
00:34:34,160 --> 00:34:36,439
Speaker 10: No, it's it's true though, no, I know it's true,

704
00:34:36,440 --> 00:34:36,680
Speaker 10: but I.

705
00:34:36,680 --> 00:34:38,760
Speaker 2: Also feel like you like to complain about toll.

706
00:34:38,400 --> 00:34:40,480
Speaker 10: Bills, which is like a complain about everything.

707
00:34:40,600 --> 00:34:42,440
Speaker 2: That's also fair. All Right, Lisa, thanks a lot, really

708
00:34:42,440 --> 00:34:44,920
Speaker 2: great stuff. Definitely come back. Love that conversation. Lisa Nee,

709
00:34:44,960 --> 00:34:48,160
Speaker 2: managing partner and head of real estate over at Eisner Amper.

710
00:34:50,760 --> 00:34:54,600
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live

711
00:34:54,719 --> 00:34:57,239
Speaker 1: week days at ten am Eastern on Apple car.

712
00:34:57,280 --> 00:34:59,720
Speaker 6: Play and Android Auto with the Bloomberg Business.

713
00:35:00,160 --> 00:35:02,960
Speaker 1: You can also listen live on Amazon Alexa from our

714
00:35:03,000 --> 00:35:07,359
Speaker 1: flagship New York station, Just Say Alexa playing Bloomberg eleven thirty.

715
00:35:09,200 --> 00:35:11,960
Speaker 2: Let's go now to Tesla. So that stock is down

716
00:35:12,080 --> 00:35:14,080
Speaker 2: by another three percent. Let me just let me just

717
00:35:14,080 --> 00:35:15,799
Speaker 2: see if I can pull up how bad it's been

718
00:35:15,840 --> 00:35:17,640
Speaker 2: for Tesla, because I gotta say it has not been

719
00:35:17,800 --> 00:35:20,400
Speaker 2: very good. The news from yesterday, of course, as well

720
00:35:20,400 --> 00:35:23,560
Speaker 2: as Fargo con Langen says it'll be zero growth in

721
00:35:23,640 --> 00:35:26,399
Speaker 2: sales volume for the ev maker this year. So can

722
00:35:26,440 --> 00:35:29,000
Speaker 2: you be a company that's growth company if you have

723
00:35:29,120 --> 00:35:31,240
Speaker 2: no growth in sales? And that stock has just really

724
00:35:31,400 --> 00:35:33,960
Speaker 2: had a tough run of it, down eighteen percent just

725
00:35:34,040 --> 00:35:37,160
Speaker 2: so far this month. Steve Mann is Global Auto's industrial's

726
00:35:37,200 --> 00:35:39,200
Speaker 2: research analyst. He's standing by for Steve. What do you

727
00:35:39,239 --> 00:35:40,480
Speaker 2: think growth company with no growth?

728
00:35:41,640 --> 00:35:41,759
Speaker 1: Oh?

729
00:35:41,920 --> 00:35:44,720
Speaker 7: I'm I tend to be more optimistic about the company.

730
00:35:44,880 --> 00:35:48,400
Speaker 7: I really like the stuff they're doing behind the scenes

731
00:35:48,640 --> 00:35:53,320
Speaker 7: with AI with full self driving, the optimist robot. I

732
00:35:53,440 --> 00:35:57,120
Speaker 7: think the company is pretty much set up vertically integrated

733
00:35:57,560 --> 00:36:02,759
Speaker 7: to actually succeed, So I'm not as negative. But there

734
00:36:02,880 --> 00:36:05,960
Speaker 7: is a valley right that the company's going through right now.

735
00:36:07,000 --> 00:36:09,959
Speaker 7: The problem is, you know, where is the bottom.

736
00:36:09,640 --> 00:36:10,320
Speaker 10: Of that valley?

737
00:36:10,520 --> 00:36:15,080
Speaker 7: Because prices for their cars just keeps coming down. You know.

738
00:36:15,520 --> 00:36:17,480
Speaker 3: One of the issues that Elon Musk has faced with

739
00:36:17,560 --> 00:36:20,279
Speaker 3: Tesla is what he gets out of cutting prices. And

740
00:36:20,360 --> 00:36:22,120
Speaker 3: I wondered if you could talk a little bit about

741
00:36:22,640 --> 00:36:24,399
Speaker 3: what you think he's going to be able to earn

742
00:36:24,480 --> 00:36:26,400
Speaker 3: if he thinks that he's going to be able to

743
00:36:26,680 --> 00:36:28,640
Speaker 3: institute more if he thinks he's gonna be able to

744
00:36:28,680 --> 00:36:30,160
Speaker 3: get more sales with lowering prices.

745
00:36:31,400 --> 00:36:32,080
Speaker 2: Yeah, I think so.

746
00:36:32,440 --> 00:36:35,560
Speaker 7: I mean, the you know, pricing is pretty elastic. I

747
00:36:35,680 --> 00:36:40,440
Speaker 7: think he will get some sales. The question is is

748
00:36:40,600 --> 00:36:43,800
Speaker 7: how far and how much price cutting can he do

749
00:36:44,800 --> 00:36:47,880
Speaker 7: from now on? Well, their gross margins are still in

750
00:36:47,920 --> 00:36:50,160
Speaker 7: the mid teens. They still have room. I think relative

751
00:36:50,200 --> 00:36:55,080
Speaker 7: to the legacy automakers, their margins are still relatively healthy.

752
00:36:56,000 --> 00:37:02,160
Speaker 7: The issue is China. China's hype competitive market. Their main

753
00:37:02,360 --> 00:37:05,839
Speaker 7: rival is BID. They're continue to cut prices, and if

754
00:37:05,880 --> 00:37:08,880
Speaker 7: they do cut prices in China, they really have to

755
00:37:08,960 --> 00:37:12,160
Speaker 7: do the same elsewhere in the world to eliminate the

756
00:37:12,239 --> 00:37:15,560
Speaker 7: arbitrage that can actually occur if there's a price difference

757
00:37:15,600 --> 00:37:16,279
Speaker 7: across the world.

758
00:37:17,040 --> 00:37:19,480
Speaker 2: So here's my question. I hear that it's not as

759
00:37:19,960 --> 00:37:22,879
Speaker 2: desperate as maybe Wells Fargo is saying, but we're still

760
00:37:22,960 --> 00:37:26,840
Speaker 2: looking at an estimated price startings multiple at fifty four times,

761
00:37:27,520 --> 00:37:30,239
Speaker 2: So is it worth that much based on everything we've

762
00:37:30,239 --> 00:37:32,160
Speaker 2: just talked about, do we need to rewrate that in

763
00:37:32,239 --> 00:37:33,200
Speaker 2: a more significant way?

764
00:37:33,320 --> 00:37:34,400
Speaker 6: We do.

765
00:37:34,640 --> 00:37:36,960
Speaker 7: I think we're in a cycle where we're going to

766
00:37:37,000 --> 00:37:42,160
Speaker 7: see some rerating. But long term, what I'm really excited

767
00:37:42,160 --> 00:37:45,560
Speaker 7: about is the company is actually very vertically integrated. They're

768
00:37:45,760 --> 00:37:48,319
Speaker 7: actually behaving like an Apple where they're trying to create

769
00:37:48,360 --> 00:37:52,279
Speaker 7: an ecosystem. We haven't seen it yet, but it's an

770
00:37:52,400 --> 00:37:56,360
Speaker 7: interesting thing. There's doing a lot of interesting things with manufacturing,

771
00:37:57,280 --> 00:38:00,400
Speaker 7: with their FSD and how it creates value for the

772
00:38:00,480 --> 00:38:04,359
Speaker 7: long term owners of the vehicle over time, and that's

773
00:38:04,640 --> 00:38:07,040
Speaker 7: you know, I don't think the market wants to look

774
00:38:07,080 --> 00:38:09,800
Speaker 7: at that right now given the slowdown in EV sales.

775
00:38:10,160 --> 00:38:13,520
Speaker 7: But again, like I said earlier, we're in that valley

776
00:38:13,880 --> 00:38:16,320
Speaker 7: and there is I think light at the end of

777
00:38:16,360 --> 00:38:19,759
Speaker 7: the tunnel. But you know, where are we at? Are

778
00:38:19,800 --> 00:38:21,919
Speaker 7: we at the bottom of the valley? That's the main question.

779
00:38:22,320 --> 00:38:22,640
Speaker 1: I don't.

780
00:38:22,680 --> 00:38:23,759
Speaker 7: I don't think we're there yet.

781
00:38:24,160 --> 00:38:25,719
Speaker 3: I want to pick up on your point, you know

782
00:38:26,120 --> 00:38:28,400
Speaker 3: that we don't think we're that we're there yet because

783
00:38:28,560 --> 00:38:31,280
Speaker 3: I feel like there might be more to come from analysts,

784
00:38:31,480 --> 00:38:33,520
Speaker 3: potentially more people souring on Tessa.

785
00:38:33,600 --> 00:38:36,280
Speaker 9: But do you agree on that or what's your expectation

786
00:38:36,640 --> 00:38:37,600
Speaker 9: for the coming core I do.

787
00:38:38,280 --> 00:38:40,799
Speaker 7: I do. If you look at consensus earning, the range

788
00:38:40,840 --> 00:38:44,320
Speaker 7: is very wide. I think there's still still very bollish

789
00:38:44,400 --> 00:38:47,480
Speaker 7: people out there, bullish analysts out there that's going to

790
00:38:47,520 --> 00:38:50,440
Speaker 7: have to bring down earnings to more a little bit

791
00:38:50,520 --> 00:38:53,120
Speaker 7: more realistic to the current growth rate that we're seeing,

792
00:38:53,640 --> 00:38:55,000
Speaker 7: especially in the US market.

793
00:38:56,800 --> 00:38:58,800
Speaker 2: When do you think we then get to the valley?

794
00:38:59,200 --> 00:39:00,000
Speaker 2: And what is the vale?

795
00:39:02,480 --> 00:39:05,000
Speaker 7: I think the I think one thing that we have

796
00:39:05,080 --> 00:39:07,120
Speaker 7: to keep track of, and that's what we're doing as well,

797
00:39:07,840 --> 00:39:12,080
Speaker 7: is a slowdown in price cuts. You know, we may

798
00:39:12,200 --> 00:39:16,640
Speaker 7: be starting to see that at the moment because price cutting,

799
00:39:17,080 --> 00:39:21,520
Speaker 7: the additional sales from price cutting is actually shrinking. That

800
00:39:21,640 --> 00:39:24,880
Speaker 7: gap is shrinking, So I do see it. We're closer

801
00:39:25,560 --> 00:39:29,160
Speaker 7: to that than maybe six months ago. So hopefully, you know,

802
00:39:29,280 --> 00:39:32,960
Speaker 7: by midyear, second half the year, we can see some

803
00:39:33,200 --> 00:39:34,760
Speaker 7: relief in price cutting.

804
00:39:35,719 --> 00:39:38,719
Speaker 3: Talk a little bit about Tesla's margins, because we've got

805
00:39:39,160 --> 00:39:41,840
Speaker 3: some analysis. It says that Tesla aims to slash production

806
00:39:41,920 --> 00:39:45,040
Speaker 3: costs by about fifty percent, but maybe that's going to

807
00:39:45,080 --> 00:39:47,160
Speaker 3: be wind up being more about like thirty three percent.

808
00:39:47,239 --> 00:39:48,000
Speaker 9: What do you think about that?

809
00:39:48,960 --> 00:39:50,960
Speaker 10: Yeah, I think their target.

810
00:39:51,040 --> 00:39:53,720
Speaker 7: I think their target of fifty percent is a stretch target,

811
00:39:54,800 --> 00:39:57,359
Speaker 7: especially as you know, as they ramp up the model too.

812
00:39:57,480 --> 00:40:00,120
Speaker 7: This is the fifty percent that they're referring to, and

813
00:40:00,200 --> 00:40:02,800
Speaker 7: cost cutting is really on their next generation of vehicles,

814
00:40:02,880 --> 00:40:07,800
Speaker 7: the model too, and you know, they've done a huge,

815
00:40:07,920 --> 00:40:12,400
Speaker 7: significant revolutionary change to how they built vehicles. You know,

816
00:40:12,520 --> 00:40:16,520
Speaker 7: you haven't seen that since Toyota introduced the lean manufacturing

817
00:40:16,520 --> 00:40:21,480
Speaker 7: in nineteen fifties. So the cutting price cutting of fifty

818
00:40:21,480 --> 00:40:26,920
Speaker 7: percent likely unrealistic. Unrealistic, especially as they ramp up production

819
00:40:27,160 --> 00:40:30,280
Speaker 7: in twenty twenty five, twenty twenty six. You know, maybe

820
00:40:30,360 --> 00:40:33,400
Speaker 7: beyond twenty twenty six, we may get to fifty percent,

821
00:40:33,760 --> 00:40:37,440
Speaker 7: but that's a little bit far out there to really forecast.

822
00:40:37,760 --> 00:40:39,799
Speaker 2: So, Steve, I was interested in what you said about

823
00:40:39,800 --> 00:40:41,560
Speaker 2: Apple in terms of sort of being all things to

824
00:40:41,640 --> 00:40:44,839
Speaker 2: all people in one area. Right, So does that mean

825
00:40:44,880 --> 00:40:47,400
Speaker 2: and I know that Apple is a harbor company, but

826
00:40:47,480 --> 00:40:49,799
Speaker 2: they really want to be a services company, Like they

827
00:40:49,920 --> 00:40:51,720
Speaker 2: want that to take up a lot of their space

828
00:40:51,760 --> 00:40:53,799
Speaker 2: in terms of earnings and their revenue. Right makes sense?

829
00:40:54,120 --> 00:40:54,239
Speaker 6: Right?

830
00:40:54,400 --> 00:40:56,200
Speaker 2: Do you think the Tesla's going to do the same thing?

831
00:40:56,320 --> 00:40:58,600
Speaker 2: Like they're going to get you know, your solar panel

832
00:40:58,640 --> 00:41:00,360
Speaker 2: and they're going to get services from that. And I

833
00:41:00,480 --> 00:41:02,120
Speaker 2: appreciate the tests is a little bit different than your

834
00:41:02,160 --> 00:41:04,400
Speaker 2: battery storage and then your car, Like is that the

835
00:41:04,440 --> 00:41:06,200
Speaker 2: company's going to be in twenty years?

836
00:41:07,080 --> 00:41:09,399
Speaker 7: I you know, if you look at all the things

837
00:41:09,440 --> 00:41:12,680
Speaker 7: that they do, right, the solar panel you just mentioned,

838
00:41:12,880 --> 00:41:16,680
Speaker 7: the Starlink satellite system, you know those all can be

839
00:41:16,840 --> 00:41:21,360
Speaker 7: connected where you know, I can imagine where Tesla not

840
00:41:21,560 --> 00:41:25,400
Speaker 7: only you know, you have the uber or lift model

841
00:41:25,480 --> 00:41:28,800
Speaker 7: that you know, robotaxi model, but you know, these cars

842
00:41:28,840 --> 00:41:33,920
Speaker 7: are actually carrying heavy, high capacity batteries that you know,

843
00:41:34,160 --> 00:41:37,080
Speaker 7: it can be moved around, redistribute power around, and you

844
00:41:37,200 --> 00:41:39,960
Speaker 7: have the star Link system really connected to these vehicles

845
00:41:40,440 --> 00:41:42,719
Speaker 7: to really manage that in a more efficient way. So,

846
00:41:43,400 --> 00:41:46,279
Speaker 7: you know, we haven't really talked about energy. We only

847
00:41:46,360 --> 00:41:48,239
Speaker 7: you know, I think the market really are focused on

848
00:41:48,560 --> 00:41:52,080
Speaker 7: the current EV sales and how are they going to

849
00:41:52,200 --> 00:41:55,600
Speaker 7: roll out the self full self driving, but the you know,

850
00:41:55,760 --> 00:41:58,160
Speaker 7: long term, the next step could be you know, managing

851
00:41:58,239 --> 00:42:02,600
Speaker 7: power with these mobile batteries that are in these cars.

852
00:42:03,200 --> 00:42:05,680
Speaker 3: Can you talk a little bit more about demand for

853
00:42:05,800 --> 00:42:08,640
Speaker 3: electric vehicles? And part of the thing I'm wondering about

854
00:42:08,800 --> 00:42:11,440
Speaker 3: is if you see that Tesla is going to need

855
00:42:11,520 --> 00:42:15,480
Speaker 3: a very particular policy environment in order to see sales

856
00:42:15,520 --> 00:42:17,560
Speaker 3: continuing to pick up, and you know, in particular we've

857
00:42:17,600 --> 00:42:20,400
Speaker 3: got the election coming up, a potential change of administration.

858
00:42:20,600 --> 00:42:22,880
Speaker 3: Is there anything to think about there for what that

859
00:42:22,960 --> 00:42:23,920
Speaker 3: would mean for Tesla?

860
00:42:24,680 --> 00:42:28,479
Speaker 7: Actually, I think Tesla have a unique benefit where they're

861
00:42:28,640 --> 00:42:32,160
Speaker 7: actually a very global company already, Like they have a

862
00:42:32,239 --> 00:42:36,280
Speaker 7: third of sales in the US, third in Asia, mostly China,

863
00:42:36,440 --> 00:42:40,400
Speaker 7: and then third in Europe, so they're very diversified regionally,

864
00:42:40,680 --> 00:42:45,680
Speaker 7: So I don't think they really need any specific policy

865
00:42:46,600 --> 00:42:49,640
Speaker 7: push from the US, you know, with their model to

866
00:42:50,520 --> 00:42:53,759
Speaker 7: their next gen vehicle coming out in twenty twenty twenty

867
00:42:53,800 --> 00:42:58,080
Speaker 7: five and twenty twenty six, that will really resonate to

868
00:42:58,200 --> 00:43:02,080
Speaker 7: a lot of the emerging markets around world. So US

869
00:43:02,200 --> 00:43:05,440
Speaker 7: is an important market, but I think their aim is

870
00:43:05,520 --> 00:43:07,799
Speaker 7: really go even more global.

871
00:43:09,200 --> 00:43:11,680
Speaker 2: Hybrids. Is hybrid is going to be a consistent thorn

872
00:43:11,719 --> 00:43:13,440
Speaker 2: in tesla side or we think we overcome that.

873
00:43:15,040 --> 00:43:19,279
Speaker 7: I think the world's gonna see a mix of powertrain

874
00:43:19,719 --> 00:43:24,840
Speaker 7: to really get to kind of net zero emissions. So

875
00:43:25,920 --> 00:43:29,160
Speaker 7: I think in the US, I think, you know, plug

876
00:43:29,239 --> 00:43:32,319
Speaker 7: in hybrids will play a bigger role, potentially bigger role.

877
00:43:32,880 --> 00:43:34,920
Speaker 7: But I think the rest of the world we're going

878
00:43:35,000 --> 00:43:40,360
Speaker 7: to see, you know, significant growth in Southeast Asia, Southeast Asia,

879
00:43:40,440 --> 00:43:44,320
Speaker 7: continued growth in China, Europe. You're kind of between the

880
00:43:45,400 --> 00:43:49,880
Speaker 7: US and Asia. I think there's still a big enough space,

881
00:43:50,239 --> 00:43:52,399
Speaker 7: a big enough market the pie. I think the pie

882
00:43:52,520 --> 00:43:56,360
Speaker 7: for battery electric vehicles will continue to grow and absorb

883
00:43:56,520 --> 00:43:58,879
Speaker 7: some of the newer competition that we're seeing from test

884
00:44:00,080 --> 00:44:01,440
Speaker 7: that Tesla is facing.

885
00:44:02,280 --> 00:44:04,920
Speaker 2: See, we're gonna leave it there. Steve Mann, Bloomberg Intelligence

886
00:44:04,960 --> 00:44:07,480
Speaker 2: Automotive Analysts joining us. Really good stuff. Okay, so I

887
00:44:07,520 --> 00:44:09,120
Speaker 2: know you're in the market to buy home, but what

888
00:44:09,160 --> 00:44:10,719
Speaker 2: would it take you to buy a Tesla or an

889
00:44:10,760 --> 00:44:12,280
Speaker 2: ev Hibar.

890
00:44:13,000 --> 00:44:15,680
Speaker 3: I think the charging situation is just too horrible, Like

891
00:44:15,760 --> 00:44:18,600
Speaker 3: there's just not enough around anywhere in New York City.

892
00:44:19,160 --> 00:44:20,239
Speaker 9: Well, no, I take that back.

893
00:44:20,280 --> 00:44:21,680
Speaker 3: There's a lot of man Henan, but you get to

894
00:44:21,719 --> 00:44:23,360
Speaker 3: the out of Burrows and it gets a lot more tricky.

895
00:44:23,560 --> 00:44:25,279
Speaker 2: There is a lot coming up in Brooklyn, like you

896
00:44:25,280 --> 00:44:27,960
Speaker 2: can see dedicated charging spots. But I'm also in Parkslope,

897
00:44:28,000 --> 00:44:30,600
Speaker 2: so that would make a lot more sense. But I

898
00:44:30,680 --> 00:44:33,360
Speaker 2: wonder too, is that we put so much emphasis on

899
00:44:33,400 --> 00:44:35,600
Speaker 2: the evs and we missed the hybrid there. And I

900
00:44:35,680 --> 00:44:37,400
Speaker 2: feel like we're all playing a little bit of catchup

901
00:44:37,440 --> 00:44:39,720
Speaker 2: because you can make an argument that while John Tucker

902
00:44:39,760 --> 00:44:42,960
Speaker 2: waits for his hydrogen car, that you know a hybrid

903
00:44:43,040 --> 00:44:43,760
Speaker 2: makes good sense.

904
00:44:44,880 --> 00:44:47,560
Speaker 10: Yeah, I'm not disagreeing with you, right, just don't have

905
00:44:47,640 --> 00:44:50,759
Speaker 10: any money, so I'm spending so much on my bathroom.

906
00:44:51,000 --> 00:44:53,120
Speaker 9: Oh yeah, Well you've got to pick your poison.

907
00:44:52,880 --> 00:44:53,120
Speaker 1: Don't you.

908
00:44:53,600 --> 00:44:56,160
Speaker 2: That's true. One big purchase in the house, you do

909
00:44:56,200 --> 00:44:56,360
Speaker 2: in the.

910
00:44:56,400 --> 00:44:58,240
Speaker 10: Bath environmentally friendly bathroom.

911
00:44:59,280 --> 00:45:00,919
Speaker 9: Well, it's gonna be a This could be really tough

912
00:45:00,960 --> 00:45:01,720
Speaker 9: to get that fixed.

913
00:45:02,080 --> 00:45:05,359
Speaker 2: Yeah, that's true. No floating toilets, no floating sings. I'm

914
00:45:05,400 --> 00:45:06,560
Speaker 2: really glad we work that out.

915
00:45:07,040 --> 00:45:11,560
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916
00:45:11,760 --> 00:45:14,919
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917
00:45:14,960 --> 00:45:18,120
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918
00:45:18,440 --> 00:45:21,839
Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business app.

919
00:45:21,960 --> 00:45:24,960
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920
00:45:25,200 --> 00:45:27,000
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