Dallas Fort Worth, Pete Arundo, Ivaldi City Council discussed on BTV Simulcast


5000 flights were delayed on Saturday, just under 650 flights have been canceled Dallas Fort Worth continues to see the most issues followed by New York, staffing shortages and severe weather along the east coast are to blame for many of the issues. Gas prices are slipping downward just in time for the holiday triple-A says the nationwide average for a gallon of regular gas is $4 and 84 cents that's still a lot more than last 4th of July when the average price was $3 and 12 cents a gallon. The price of gas hit an all time high earlier this month when the average peaked at just over $5. In battle school police chief Pete arundo was resigning from the ivaldi city council, he was sworn in on May 31st, less than a week after the massacre at rob elementary that claimed the lives of 19 students and two teachers in a statement R andando said his stepping down was the best decision he has faced heavy criticism over the delayed police response to the shooting. He was also placed on administrative leave from his role as police chief on June 22nd. I'm Chris coraggio. Now this Bloomberg sports update Yankees and guardians playing two and New York takes to game one saw 13 to four final. Garrett Cole put up 6 innings of work and came out with 6 strikeouts and his 7th win this season. Cole only giving up two of those runs during his outing. Matt Carpenter's bat was loud knocking two home runs and four RBIs on the day, game two was a 6 O one final score nester Cortez also getting his 7th win this season going 6 innings giving up one run on three hits while striking out 6. Anthony Rizzo knocking in his 22nd home run of the season Metz having a tough go against the rangers falling 7 to three at city field, New York winning one of their last 5 games, series finale is Sunday. On the soccer pitch, New York City FC looking to get their first win since May. They'll take on Atlanta Sunday Night at Yankee Stadium. After having their two game win streak snapped, the liberty get back on the court tonight for a matchup against the sparks, Sabrina UNESCO putting up a double double and Friday's effort against the dream, Stephanie dolson with a 20 point game. On the tennis court, some drama over at Wimbledon with Nick curios upsetting fourth seed, stephanos sits a passing force set to move on to the fourth round. Number two seed Rafael Nadal took care of Lorenzo sonoco in three sets. The United States men's soccer team has qualified for the 2024 Olympics in France. Joel stern has more. A three nil win by the U.S. over Honduras Friday night in the semifinals of the under 20 championship of north and Central America and the Caribbean advances them to its first Olympic men's soccer tournaments since 2008 packs an air and said of the Philadelphia union scores what turns out to be the game winner in the third minute. It's payback for the U.S. who lost a Honduras two one in last year's Olympic qualification game. And in golf three rounds down of the John Deere classic JT poston is on top of the leaderboard after shooting a 67 on the day to sit at 19 under a three way tie for the second spot with Scott stallings, emiliano grillo, and Denny McCarthy. With a Bloomberg sports update, I'm at mattson. This is Bloomberg intelligence, but Alex Steele and Paul Sweeney on Bloomberg radio. We'll be here each and every week at this time Tapping into Bloomberg intelligence analyst carving some 2000 companies in 130 industries worldwide. While many are talking about how for the back half of the year, earnings estimates are going to have to come down. Profit margins are going to have to come down. One company, though, that might stand out and not have to do that is Emerson Electric. Designs and manufacturers electronic and electrical equipment, software, systems, and services. And they're actually doing really well, despite their stock being hammered so far this year. Joining us now with more is Caro and Uber hard senior industry analyst for Bloomberg intelligence. All right, give me the reason why I should be powered up on Emerson. A couple of things. One, they are very energy exposed 23% of sales. Their biggest business, which has been lagging, two thirds of the company now has an opportunity to benefit from higher CAPEX. Number two, they're on their way to beating all their 2023 targets. They're ahead of schedule. They're already meeting the margin target for this business. The energy related business that's just coming, turning around. They have a record backlog, and they're about to complete a $650 million savings program. So there's a lot of upside in. They have a day and Analyst Day in November. They'll raise all their expectations and the financial targets. So talk to us about the cost side Karen. We hear about inflation impacting margins for companies across many, many industry verticals. Talk to us about Emerson and their outlook. Emerson had an activist come about three years ago to tell them to get their act together on costs. They went to the drawing board and are doing structural takeouts across the board and the company and actually started in 2019. And their margins have exceeded expectations and they're not done. So there was pressure to do that. They did it, and they're now seeing the benefits of that and they've got one more year to go. What are some going to be some of the extra catalysts we have to think about? Capital spending, particularly on the upstream side, is expected to be up over 20% this year and another 10% next year. That's big kicker for Emerson in the automated solutions business. I think both those numbers could be low because they've been under investing for a number of years. They'll also probably be some help on the refining side, but for them the upstream side right now is the most important. Secondly, they have record backlog in that business. And again, $6.4 billion backlog. And again, it's just started to turn. So there's a lot that becomes sales. It's a long cycle business. Everybody's very worried about the more short cycle stuff because of a recession. There's automated solutions is all CAPEX driven. It's not just energy, it's chemicals, it's other things, but that tends to hold up better in the early part of a downturn. And I think the numbers are too low. I looked at how much automated solutions grew in the last four energy CAPEX cycles, and that grew 16%, 13%, double digit, consensus right now, has that segment growing at about 7%. I went through different scenarios I used 13% as the mid range and I come up with a 9% above consensus EPS, and I think there's probably upside. So estimates are already starting to drift up, but I think they can drift up more. Talk to us about valuation Karen here. I'm looking at the stock, is that about 14% year to date, but that's outperforming the S&P 500, which is down a little bit more than 20%. How does valuation look here? Emerson is underperformed on a three and a 5 year, and this is the first year they've actually outperformed. And I think some of that is people saying, wait a minute, they're in the right, they're in the automated solutions is in the sweet spot. It's time for them to turn. This new CEO is really executing. So you're starting to see people warm up to it. Energy is nothing if it's not cyclical. And I understand that this time structurally we may be in a different place with energy. If it is still cyclical in a year, are we going to be talking about how Emerson is appropriately priced and that their cycle's not going anywhere? Well, this is usually a multiyear turn. I mean

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