18 Burst results for "Alex Steele"
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"Of the day's Wall Street action. What's the thought on apple here? From Bloomberg intelligence. Bloomberg opinion, and influential newsmakers. The bond market was the boss. The tape with Paul Sweeney and Matt Miller. Subscribe today on Apple, Spotify, and wherever you get your podcasts. Your listening to Bloomberg intelligence with Alex Steele and Paul Sweeney on Bloomberg radio. We'll be here each and every week at this time Tapping into our Bloomberg intelligence analyst covering some 2000 companies and 130 industries worldwide. Retailers at strategically target the rural customer may be better positioned to extend sales gains and expand margin in the near and longer term than peers. For more on this, we're pleased to welcome Bloomberg intelligence REITs and consumer hardlines analyst Lindsey Dutch. So Lindsey talked to us about kind of the retail space today, the consumer has been through a lot over the last several years. Certainly benefited from stimulus checks and other incentives, savings. Where is the consumer now and what's the outlook? Yeah, thanks, Paul. So the consumer, there's a lot of uncertainty going on right now in terms of what we expect going into the year. There's a lot of conservative outlooks from different companies, but retailers that outperformed last year in 2022, included some companies like Dollar General, Tractor Supply, who really target sort of the rural customer. And we ran a survey that to dive deep into this customer and how they may differ from counterparts. And we really discovered that they have very strong loyalty, and it's a growing community. And those attributes are really positive for these retailers that target that customer. And that could be a positive in 2023 when there is a lot of uncertainty. Well, Lindsay I feel like one of the big themes of the last year has been this divergence in people's wealth. When you're talking about kind of the higher income consumer spending far, far more than a lower consumer that's really feeling the pinch of inflation, is that divergence snapping back? Yes, it's interesting. One of the most fascinating things from this survey that we ran with a test, we asked people various macro type of questions. And one of the questions was, do you consider yourself wealthy? And very interestingly enough, you know, where you live had a strong part of the answers that we got, people that lived in more urban areas, definitely skewed towards considering themselves wealthy. And we also asked about inflation and how that's affected how you consider your own financial position. And interestingly enough, the rural customers actually skewed to say that they felt less impacted by inflation, then people from midsize and urban areas. So Lindsey and your research, I came across a company I had not heard of before and I want you to explain to me what they do and kind of what's the story Tractor Supply company. This is a real company in terms of market cap TSC O is the stock symbols kind of market capitalization of $25 billion. Tell us about this company and kind of what you found in your survey work. Yeah, so this company has been rapidly growing, they still have a relatively small store fleet about 2100 stores. That's less than half of Walmart's U.S. store fleet alone, way less than Dollar General. But they are expanding pretty rapidly and we see tremendous growth upside for them. They do target this rural customer. They sell a lot of products for that rural customer, but also a lot of pet food for all different types of animals. That's a big mover in their business. Also tools and a lot of the same categories that Walmart would have, including apparel, and I think we've seen a movement in the world, there is this sort of sway towards that country lifestyle and that has certainly benefited tractor a lot. And they are taking share from Walmart and Dollar General as they open stores based on the results that we saw in our survey. You know, palm reading this research and I see this headline here that I really love reminds me of my dad over 57% would like to have more land fewer neighbors. And I can't tell you how many times Lindsay, my dad is in, oh, you know, if I just had a few acres of land, never saw another human in my life, I'd be great. And here I am, his daughter and New York City life. Lindsay talked was a little bit about how that kind of sentiment affects where you shop. Right. So one of the key things that we saw comparing auroral customer versus a more urban customer is the royal customers tend to be extremely loyal. They tend to shop at the same stores over and over again. They send tend to shop in the store versus online. Urban we saw a much stronger skew towards whatever's convenient. Maybe whatever the convenience on your way home from work or when you're out doing other things whenever you're passing by, you'll pop in and also a stronger preference to shop online. So we did see sort of that split. And that loyalty, you know, again going back to Tractor Supply and some of those memes that targets rural customer, that loyalty is really, really important because that can really drive margin. They obviously have to work to acquire new customers, but they don't have to run big broad discounts to continuously draw people into the store because once they attract that customer, they have them for a long time. Inflation is a big issue, a big headwind for most people. And I would think it would be for perhaps some lower income in particular, given that inflation really cuts into their real income. What did your survey respondents kind of respond in terms of how inflation is impacting them and maybe they're purchasing habits? You know, we definitely did see everybody is looking for value and low prices, inflation obviously plays into that. A lot of these rural customers are Walmart shoppers
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"Value for our shareholders in whatever way that happens. And we work every day to try to figure out how to create more value. So things are on the is anything off the table. Nothing's off the table. Never off the table France. Never off the table for actually we look at everything. And we're determined to make sure that we get the most value for our company. It's such a pleasure. Vicki always good to see you. It's been a long time in person. Thank you so much, Vicki Holland CEO of accidental. Back to you. All right, Alex Steele there talking with the CEO of Occidental she is betting on a premium for zero carbon oil, which I think is just such a fascinating concept and talking to Alex a lot about these DAC costs getting them down to a hundred to a $125 dollars a ton. So really pushing the green angle there of Occidental. And of course, the drive behind any gains in the shares will be the buybacks, which she said that they're very focused on. So interesting stuff their oil in general has been, I think, fascinating. Last week we saw an 80 handle on WTI and now we're at 73. So we've really seen a drop in expectations. I guess for demand or is it just you think that the dollar has risen in value? What's a little bit of both, right? It's the fact that the dollar made a little bit of a rebound. It's also the fact that the Chinese reopening is taking longer. But it's also refining capacity. That's still a big hot topic when it comes to President Biden. So you're starting to see a lot of the underlying not enough. Not enough supply, basically. And refining capacity has to be difficult to build up. In any case, we've also seen big moves in yields as creating and we're talking about big jump on the front end of the curve. But even to four 41 on the two years, even the ten year has rocketed up, I think 13 points on Friday and another 9 basis points today to 360 one and change. Let's bring in Priya mizra. She is managing director and global head of rate strategy over at TD securities. Priya, what was your take on the incredible roller coaster ride that we had last week after the fed and the non farm payrolls? Sure. Thanks for having me on. It's been quite a week. So I think the market is dealing with both uncertainty on the economic outlook and that's what we saw with both payrolls as well as ISM. Very strong numbers. We're not seeing signs of slowdown there, at least in the labor market or even service demand. I actually was more interested in ISM services because I think that's going to be a leading indicator and so far not really seeing moderation. But then the other source of uncertainty is the fed. And there's a clear lack of urgency from chat power from the fed to keep hiking. And he was very non committal. I mean, I was surprised a little bit with the reaction on Wednesday because I don't think he was dovish per se, but he didn't push back on the easing of financial conditions that we've seen since December. He was very noncommittal on the end point. Like, where do they end hikes? And sort of left it to the data. So I think it's going to really come down. I know there's a lot of focus on tomorrow's comments by chip out. But I think their data dependent and it's very hard for the market to get exactly where the end point is. We're going to have to watch the economy and inflation. I think there's a lot of optimism that inflation will keep declining and our view is it's going to be sticky. And so you'll get a series of 25 hikes as the fed ends, but they don't end with the market was pricing in on Wednesday, just one more high we expect two more hikes, possibly chance of another 25 in June. If inflation sort of flat lines here and doesn't keep declining. Let's put some numbers on that here, we're looking at ten years map pointed out higher by about 9 basis points, 360 one as the bond markets factoring everything you just laid out is it kind of being a little wishy washy and just kind of sticking into this trading range. Why aren't we seeing it break out? I think that Daniel is really tricky, right? Because that's your view on fed funds in a way over the next ten years. And so that incorporates a slowdown later this year next year it incorporates rate cuts at some point. I mean, even if we get a soft landing, the fed is not going to keep rates at 5 or 5 and a quarter. They're going to have to bring it down. So I think the ten year likely stays in a range. Three 25 three 75 is the range we're thinking. The front end, I think, can break out. If we find that inflation is sticky, wages are staying strong, then I can see frontend rate it's going back to the upper bound of the range, maybe even moving higher because we realize the fed's not cutting. We have a lot of cuts priced in for this year next year. I think they can start to get taken out that terminal rate can go higher than where it is right now. Just about 5%, we can get to 5 and a quarter. So the front end can absolutely sell off. The ten year does get tricky because it's a longer year to view over the next ten years. Why do you think the fed is going to have to cut if we're adding jobs at such a fantastic pace and we don't see such a huge drop in earnings. I think right now we're looking at a 3% drop in earnings last quarter. What's going to be the impetus for the cut? Great question. So I'm going to go back to the fed's dual mandate. Inflation and growth. So our view for rate cuts. We've actually got a lot of cuts pencil in for next year, because we're looking for a recession in the base case. And we see inflation, I said it's sticky, but by next year starting to get within the three two and a half percent range. So cutting for both sides of the dual mandate. But let's say we get this, what we're calling immaculate disinflation scenario. Where inflation continues to fall soft landing every risk asset to the moon. Even in that scenario, I can see the fed cutting rates, which is embedded in their dot product. They've got hundred basis points next year and the year after, that's not for growth reasons. That's for inflation reasons and because the fed wants to get at that point rates away from restrictive into let's say neutral territory. So if inflation gets back to two and a half by the end of the year, I think there's a case for the fed starting to cut because fed funds at 5 or 5 and a quarter is too high. We should be closer to two and a half or 3%. So that's the reason to cut. The timing, the pace would depend a lot, whether it's a recession or a soft landing scenario, but the read cuts is just if inflation comes back down whenever it does, I think the fed then starts to signal rate cuts. All right, Priya, thanks so much for joining us Priya mizra their managing director and global head of rate strategy over at TD securities. We love to get her take on the
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"This is Bloomberg best on Bloomberg radio. I'm Ed Baxter, and I'm Denise Pellegrini. Denise, we're in the thick of earnings season now. Yeah, and we've got some really big ones coming next week. Apple, meta, alphabet, Amazon, Qualcomm, just to name a few. Johnson & Johnson among the big ones out the past week, along with Tesla, IBM and a bunch of others. And Jake just shares well, they didn't really pop much, even though the company did guide to higher 2023 earnings than expected. Well, J&J did also talk about being responsibly cautious. And here's Bloomberg's Alex Steele and guy Johnson about all that with J&J's CFO Joseph walk. You know, I would say that what we're trying to do is strike the right balance anytime we come out with guidance. And so we're trying to take those risks and those opportunities and say, hey, this is a fair projection of what our business is, is in terms of where we're taking the business though. We couldn't be more excited. In addition to the financial performance that we had better than 6% growth across the entire portfolio in 2022, we made a number of significant enhancements, progressions with our pharmaceutical pipeline, our med tech business acquired abiomed, which was a $16.5 billion acquisition to put us in a high growth cardiovascular market. And then the consumer business had a very, very solid second half, which positions them well for the separation. So I would say the guidance, while we're using words like prudent and responsibly cautious, it is really speaking to, it's a balanced assessment of risks and opportunities that we know today. For the margin pressure that you see, when do you feel like it bottoms? That's a really good question. Alex, right now, in terms of our guidance, we experienced a lot more inflation than we were speaking this time last year throughout the course of 2022. Some of that gets hung up on the balance sheet and inventory, and then we'll flow through our P and L throughout 2023. Right now, and maybe this is one of those responsibly cautious elements. We're not assuming any deflationary relief. So in terms of inflation, we think it's here to stay. We'll see some of it through our P and L, at least for the balance of 2023, what we believe costs will remain as high as they are. Joe, you said he gets up for an outlook upgrade later on this year. It feels like it. I sure hope so guy. I mean, that's always our goal to have aspirations that are above the expectations of the current day. But again, I'll come back to if you look at just all the macroeconomic uncertainties and earnings recession was certainly trying to avoid that. We feel very good about the 4% plus that we're offering in terms of an EPS outlook as well as a top line outlook amidst a lot of not only macroeconomic uncertainty, but some geopolitical uncertainty as well. So going back to the margins for a moment. Where do you see the stickiest cost pressure? Businesses are really starting to pass along those higher prices in the services sector. And that's really hard to reverse. Where are you seeing it and what your pass through? Yeah, so throughout 2022, Alex, we saw it in some materials, but mostly they were packaging materials, some contract manufacturing, and the wages associated with those types of services. I would say those are the areas that we see. In terms of pass through, being in pharmaceuticals being in med tech, the space of healthcare really doesn't give us the opportunity to pass those along. We have taken strategic price increases in our consumer unit consistent with what that marketplace has been doing. But we're very limited overall into what we can take in terms of price. As a matter of fact, our growth is largely volume. How do you view the reopening in terms of your device's unit? Yeah, that's another good question. So we are projecting right now and what we said in the call is we expect the second half of this year performance to be better than the first half and likely the second quarter to be better than the first quarter. Some of the rationale for that is the lingering effect from the surge of COVID in China that we experienced in the fourth quarter that hurt performance a little bit. We think that will linger into the early part of 2023, but then get continually better. Now we are hearing some things in terms of reports on your network that may be China's opening up a little bit faster than we expect. That would be one of those balanced upsides that maybe could portend, but we'll have to see how that plays out. Do you think Joe, you've got your arms fully around what the cost structure around this is going to be, what it's going to cost to do this spin. And do you think there's an opportunity? Why are you doing it now? Do you think if you waited, you might get better value for that business? Yes, you're always going to be subject in a transaction like this to what capital markets will do. But we feel really good about where we are with respect to the process. The first year of 2022 is really spent on developing a company within a company. So this business is ready to run on its own. Now it's a matter of the capital markets equation. And how we go to market on January 4th, we filed a form S one, which enables us the opportunity to go with an initial public offering at the outset. Again, we'll need capital markets to cooperate. But the brands and the strength of this business, as you saw in the second half, we think sets up well. We'll have to see how it plays out and there's not a lot we can say due to regulations being in registration. But we're on track for what we conveyed in November of 2021. And that's the separate this business throughout the course of this year. Is there anything that you feel like you need to do in that consumer brand to help that case? I want to say help that case. First of all, I want to be very mindful of the registration process and the regulations around that. But what I will say is maybe go back to why we made this announcement to begin with. And that is just a very different business model and different criteria for success in the future. If you think about how we used to advertise and consumer products for healthcare, we often rely upon 5 years ago 9 out of ten Dennis 9 out of ten dermatologists. Today it's much more likely that a Kardashian social media post or a Jennifer Aniston social media post has a lot more influence And so if you look at the heavily regulated, heavy investment R&D landscape of med tech and pharmaceuticals, it's very different than what's required in consumer products. Again, these are very important products. They help people live better daily lives, but it's just very different in terms of how you're going to be successful in
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"I think we're going to see pressure on earnings for sure. I think this might look a little bit like a 2008 or a 2020 or we continue to see negative earnings revisions going forward. But I don't think that's the giant surprise. I think a lot of us anticipated earnings pressure going into the holiday season, the amount of discounting and sales that we saw in the retail side. And I think that's going to continue that we're going to see companies struggle with passing through the margin increases. And it's going to translate into more difficult earnings scenario. Nevertheless, though, the equity markets don't really well. I mean, I spent a lot of money going into Europe as well. And there is there like a fomo thing happening, regardless of what the numbers tell us. Yeah, that's an interesting way to put it fomo. I've been traveling a lot for the last couple of weeks. And what the number one thing I've noticed when talking to investors, there seems to be a very different risk appetite for our U.S. institutional clients and retail clients versus a lot of the rest of the world. Maybe not the UK. And there seems to be some that are looking to put money back in and put on the U.S. saying much more defensive. We're not seeing a lot of flows into the public equity markets, maybe into the bond markets. And interestingly, one anecdote is that we're seeing lots of flows into EM equities, but I'm not hearing that from our U.S. institutional clients. So they're still sidelined. I don't know that they have that fomo feeling quite yet. I'm going to be pulled off their hands. They're sitting on them at the moment. What is it going to take to get them to put them to work? I don't think there's anyone trigger, but one way to get people to go back into a market that has been a little bit out of favor is to not have another alternative, sort of the reverse of what we saw the last decade. So when the risk reward becomes less compelling and credit and fixed income markets, then maybe people will look back to the institutions or investors will look back to the equity markets. But I think at the moment, at Goldman Sachs, we're assuming that a really good case this year would be flat on the S&P at the end of the year, right? So I don't think that's a super compelling reason to dip your toe back into the waters in the U.S. right now. So based on that, if investors are derisking and foreign investors are dipping their toes in to say Europe, for example, what do you think is going to take for U.S. investors to get more constructive? It's an interesting point. I think one thing, at least on the institutional side, might be their strategic asset allocations and what their targets are. But again, sort of like how I said, if there's some bumps in the fixed income markets or credit markets, there's certainly will be bumps in the credit markets going forward next year, right? We've had a little bit of a Goldilocks scenario. There will be certain companies that have a different time with the higher cost of capital. Same thing on the equity side. In the fixed income markets, you know, I think that there's been a lot of bond buying lately. It's been certainly quite an interesting month, but I don't think the full story has played out on the fed. It looks like we're going to get three increases and then a pause. But we can't quite be certain because we still haven't seen the troughs in the equity markets that we really need to be sure that inflation is really has completely cooled, right? Elizabeth Burton, client investment strategist at Goldman Sachs asset management with Bloomberg's Alex Steele and guy Johnson. And coming up, Johnson & Johnson sounding upbeat bud investors have not necessarily been so impressed. You're listening to Bloomberg best. Bloomberg radio on demand and in your podcast feed. On the latest sound on podcasts, the debt ceiling debate has brought back the idea of mincing a $1 trillion platinum coin. Is this really a good idea? I ask Bloomberg's Joe wiesenthal. You know, look, if you run out of borrowing authority, which is what the debt ceiling means, and you still have obligations to meet your spending authority because the Congress has also passed a budget. What do you do rather than default, you could admit this coin, say, put a $1 trillion on it, write the word 1 trillion, deposit it at the treasury's account at the New York fed with the treasury general account. And now you have a $1 trillion in there that you can then spend. Is it a gimmick? Yeah, of course, writing a trillion on a coin, but on the other hand, you know, the idea that we would have this sort of fiction called the debt ceiling in which we arbitrarily threaten publicly is like, wait, we might default on our obligations. There's also pretty silly. If the prospect is your defaulting on the largest liquid fixed income asset class in the entire world, the definition of safety, that maybe it's okay to use a gimmick in that case because the alternative is so catastrophic. Maybe we warm up to the idea of a gimmick. So come on. Look, I don't want to do silly things either. I want to have a serious government that operates, but like, you know, I was just in a conversation with the other day and it's like, okay, if it's a choice between going over a cliff and the Grand Canyon or pressing a silly button, why is this so hard? Right, since it's a self imposed debt ceiling to begin with. If you're going to really insist that the dead ceiling is this sort of like catastrophic apocalyptic moment, right? Where if
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"According to those in the industry, and Bloomberg's Alex Steele had a chance to ask Alan Armstrong, CEO of Williams companies about it from the sidelines of the Barclays CEO energy power conference, and he says to JumpStart this whole effort, the U.S. needs lacks or permitting. Everybody in the industry right now is guessing and wondering whether or not the permitting reform will actually come through in a way that's super effective. It's a very complex issue and really getting it done such that we can move ahead with very effectively building out the infrastructure in the U.S. both for the sake of natural gas pipelines and renewables. We've got a lot of changes that need to be made. And it's a very complex issue. And so I don't think that there will be support for anything that is not comprehensive and detailed enough to make it happen. Where do we need the pipelines the most right now? And what's the probability that those pipelines get built and that we really need? Well, clearly, the by far the largest gas resource and probably I think one of the more important gas resources in the entire world is the Marcellus and the Utica. And so there have been now three pipelines out of that area that were certificated. In other words, the ferc had given them a certificate, so they'd gone through all the hurdles and spent three or four years in the permitting process. And then it still didn't get built. And so mountain valley pipeline is kind of the last one hanging on right now that everybody in the industry is hoping it will get built. Really important for people to understand that we think about gas and gas prices are problem is not lack of gas supplies. We have plenty of low cost gas supplies here in the U.S., but if we don't have the pipeline to get it from those places like the Marcellus and Utica to the points of consumption, people are going to be really upset this winter when they realize that their utility bills are up, not because we don't have low cost gas here in the U.S. and not because we're exporting it on the LNG basis, but because we simply keep standing in our own way to get critical pipeline infrastructure bills. Expectations are really high that the U.S. is going to export a ton of LNG, the projects are in the pipeline, et cetera. Are we going to be able to do that? The good news is in right now in the immediate term, the Haynesville, which is in the state of Louisiana where we have a lot of growing LNG export capacity. A lot of pipeline, we have a project that's a 1.8 BCF a day pipeline project called Louisiana energy gateway. That project's going ahead. There's another project called golf run. There's likely another project that will come behind as well. So a lot of infrastructure rapidly getting built to take gas from the Haynesville into the LNG. And then additionally, the Permian natural gas supplies and that also is within the state of Texas and therefore doesn't go through the regulatory process. Those two areas of Permian and Haynesville are in the short term going to help us, but
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"Best. I'm Ed Baxter. And I'm Denise Pellegrini. At a lot of talk about recession, we've been hitting it pretty hard here on Bloomberg radio. And some businesses are getting pretty hard hit by the shockwaves of rising interest rates. All right, and at the same time, some shoppers are apparently not exactly holding back on their spending. And Bloomberg sky Johnson and Alex Steele caught up with Michelle Meyer, chief U.S. economist at Mastercard economics institute to ask her what's really happening. Let's listen in. Consumers have been facing high inflation. They've been facing high prices for particularly for things like gas and food, although recently in the last month or so gas prices have come down, which has been a really nice welcome. The labor market has remained very robust. They still have income flowing in, but their apprehensive about what comes next for the economy. So clearly the surveys have shown that consumers are worried they're trying to plan ahead. They're trying to think about how to navigate the economic environment, but in the interim, they are still out spending. When you look at nominal spend, when we look at our own data, Mastercard spending full sadder, you are seeing, you know, still very solid spending trends. Yeah, that was something we took away from Joanne. No one feels good, but they're still buying the stuff. What stuff are they spending on? So there's been, you know, pretty decisive shifts in how consumers are spending. Certainly the theme throughout the summer has been one of experience based spending. We are seeing very, very strong and consistently strong spend on travel, on restaurants, on recreation. So people going back out and living their lives again, post the COVID period. Goods really is spending has been weaker. It has not fallen off a cliff by any means. There's not been a cute drop, but you have seen some navigation away from certain types of items and consumers are just trying to figure out how to balance their consumer trends. And they're also responding importantly to relative price differences. So you have seen consumers making some choices where, you know, a certain categories where prices have just increased in a painful way. They're looking to shift towards other types of items, which are a little bit more absorbable when it comes to those prices. Michelle, how is this spending big finance and are we seeing a shift? So when you look at the data, so the Federal Reserve consumer credits data, for example, you certainly have seen an increase in credit card spending a pretty meaningful one throughout the month of throughout the quarter, the second quarter. And that makes sense because if you look at what happened during the pandemic period, there was a drop in credit card usage because of the
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"That to you and Lamborghini. Are they public? Are they going public? They are owned by Volkswagen. So they're one of the 12 or 13 brands done by Volkswagen. Bentley, they own Bugatti. Obviously they have Volkswagen, Audi and Porsche. And my all time favorite brand, Ducati, and Lamborghini and Ducati have been doing a lot of work together lately because they're from the same area. They're both based in Bologna in Italy. In fact, if you remember the Lamborghini countach, of course. That name actually comes from Bologna slang. Apparently when they were test driving the countach back in the 70s, I guess, and driving it around the local area a Bologna farmer driving by on a tractor said, countach, which means damn it. In like Bologna and slang. And they said, wow, that sounds like a really good name for the car. All right, right now let's bring you that interview with Lamborghini Stefan winkleman. He'll speak with Bloomberg's guy Johnson Alex Steele and Matt Miller. Let's bring you that interview now. I now want to welcome our Bloomberg TV and radio audiences, focusing on cars, Lamborghini, is setting a new record for the first half of 2022, concluding its best 6 months ever in terms of sale and profit at joining us now as Bloomberg's Matt Miller and Stefan winkleman at Lamborghini's CEO. Mac go ahead and kick it off. Well, chef on thanks so much for joining us. I'm glad we could get you on the simulcast. We're on both radio and TV, so it's great to have you. Pebble beach obviously one of the most famous probably the most important car show in the world certainly for classic car collectors, but it's also been a hit for brands like yours. What are you doing there? What's the main focus for you at pebble beach
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"And data on 2000 companies and 130 industry The supply chain breakdown is combining with labor shortages and user manufacturers continue to dominate or will there be a renewed interest in western manufacturers Bloomberg didn't intelligence with Alex Steele and Paul's weenie on Bloomberg Over the next hour we're going to dig into the big business stores impacting Wall Street and the global markets Each and every week we provide in depth research and data on some of the 2000 companies 130 industries our analysts cover worldwide Today we look at upcoming trends in crypto Plus as mortgage rates rise bars are looking for alternative financing to reduce purchase costs But first let's go into the crypto space and I want to look at it from the perspective of the exchanges so if you want to do that you got to take a look at coinbase And if you want to look at coinbase you got to talk to Julie She covers all things tech and FinTech for Bloomberg intelligence Julie tell us just kind of like what is coinbase And kind of how does it play in a FinTech ecosystem Yeah sure So coinbase is a crypto exchange It is the largest one in the U.S. The second largest in the world the only publicly traded crypto exchange that we have to deal with So as a retail investor if you want to buy or sell up to 90 or so different kinds of tokens you go to coinbase during institution many of them increasingly go to coinbase as well All right so is this a way to play just all things crypto and I don't want to necessarily make a bet on an individual token like Bitcoin or Lake Ethereum I just want to have some exposure Is this a good way for investors to do that It actually is It hasn't been as good a performer this year as it has been last year In terms of in terms of a stock So it does tend to trade very close to Bitcoin Very much in line But this year we saw a bit of a divergence So Bitcoin is off about 15% year to date Coinbase shares are down 40% So that's different from in the past We're a coinbase is actually outperformed Bitcoin in particular Why do you think that happened Yeah so some concerns here that one we're going into a broader crypto winter right When we saw the sell off in crypto really starting back in the fourth quarter They're concerned that this is going to be sort of a period where crypto just kept going down We've had three crypto winters in the past Could this be another one If so it's just a period of very very light volume Very hard to make money For coinbase in particular they're concerned about margin because it's growing It's expanding It's looking to broaden and diversify away from just crypto trading Into more crypto services and to decentralize finance which is a whole new area of financial services into NFTs and all kinds of things that are being spun out of the crypto world That investment is going to cost margin The margin is still pretty good EBITDA around in the 20% range So that's one reason the main reasons why it's filled off a bit more than the underlying crypto assets Crypto winter Is that just endemic to this particular little piece of the market people won't have a really good sense of the fundamentals of some of these crypto assets And so interest waxes and wanes Yeah I mean crypto is a crypto Bitcoin has been around since 2009 right So we've had since then three crypto winters made this period of just really very light activity Bitcoin in general as many people who watch it will know is very very volatile So crypto winters are periods where people kind of back off And don't do much and sort of wait to see what's the next iteration What's the next value proposition use case for crypto We've had three of them Each of those times those crypto winters have lasted about two to three years and Bitcoin has traded down 80% just about every single time It's been very very consistent But what we've seen very interestingly within that 6 to 12 months from the bottom of Bitcoin in a crypto winter Institutions have gotten involved The smart money has come in at a low price and got involved in Bitcoin got involved in crypto And I think what's happening already this time around way before Bitcoin trades off anywhere near 80% It was down as much as 40 to 50% Crypto institutions are getting involved and that we think is a big difference this time So I like in your research note you say an Amazon like opportunity for coinbase What do you mean by that So I think the way we've seen Amazon progress over the last has been already 25 years We think is very much the way coinbase may spend the next 25 years Maybe less given that everything happens much faster now So Amazon started off as just an online bookstore It into a bigger marketplace It added merchandise it had a logistics and added financing That was web one Then across over to dominate web two which is when it began building B2B cloud hosting As it did that it was hosting more sellers It was improving its platform and adding a whole other much bigger revenue stream as a service provider And we know where Amazon has gotten 40% kinds of revenue growth annually If you look at a cagr over the last 25 years very similar in terms of stock returns Coinbase similarly started off as an exchange supporting retail account It's brought them to attract institutions It's now one of the leaders there It's adding more products to drive loyalty more revenue streams and is positioning itself for now web three The.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"And data on 2000 companies and 130 industry The supply chain breakdown is combining with labor shortages at least during manufacturers continue to dominate or will there be a renewed interest in western manufacturers Bloomberg intelligence with Alex Steele and Paul's weenie on Bloomberg For the next hour we will dig inside the big business stories impacting Wall Street and the global markets Each and every week we provide in depth research and data on some of the 2000 companies and 130 industries our analysts cover worldwide I'm Paul Sweeney Alex Steele is off today Coming up we look at the implications of booting Russia from the World Trade Organization plus the pressure pumping recovery fracking stocks are off to a strong start in 2022 But first let's take a look at crypto and specifically crypto policy and regulation from where I'm drawn by Bloomberg intelligence senior government analyst Nathan dean Nathan when we think about crypto one of the issues out there and I think maybe one of the overhangs out there for a lot of investors is regulation Just give us a sense kind of right now Who regulates crypto So it depends on our U Bitcoin Are you a security or are you an exchange So if your Bitcoin essentially there's very few regulations out there And this is because Bitcoin and ether are considered commodities So there's some oversight at the CFTC in terms of fraud and manipulation but there's not much oversight The same can't be said for securities And so this is where the Securities and Exchange Commission is coming in So this is where the debate is Are all these tokens that you see are they securities or are they not The SEC is taking the view and they're taking the steps to take the view that they are securities This is a problem for the crypto industry because right now the way it's set up the industry is viewing these tokens as not securities And so we're heading towards a confrontation and potentially new rules regulations and even enforcement actions Well I know that when Gary gensler who is now the chairman of the securities exchange commission winning he came into town it seemed like he was saying we're going to do this The SEC is going to regulate this business but it's but he hasn't really done much So he's setting the stage and you're absolutely right He is going to regulate this business Now chairman gensler's view is customer protection So view it all in terms of customer protection He has taken the view that he has said that he thinks that about 95% of the tokens that are out there are securities And essentially if you're using it for speculation and there is a financial backer involved it's considered a security in the SEC's view Now the SEC takes the approach that they already have the tools and the instruments they need to oversee this part And that is where the problem is going to come The industry is not registering as exchanges They're not adhering to the securities portion of regulation because they still believe and we don't make a determination on this but they believe that they aren't securities And so the chairman is essentially waiting I think later this year you're going to see some additional enforcement actions that attempt to resolve this issue What's the position of the Biden administration Or has the Biden administration taken a position So the Biden administration has this executive order that they put out in the last few weeks Executive order is great It's just a fancy way of the president picking up the phone and saying do this But it is a good organizational strategy It does make it seem that the Biden administration is open to the idea We actually think it's what does the executive order say It essentially requires various number of agencies to go and create reports Now these reports I think there's about 12 of them that we're anticipating coming out of this They're going to come back in September and October And they're essentially going to say here are the recommendations that the government needs to do to put cryptocurrency into our regulatory framework Now these recommendations can be legislative meaning Congress has to approve them That's not really going to happen all that much Or they can be regulatory And so if they are the regulatory recommendation the Securities and Exchange Commission for example can go forth and do it It just takes time it will take years And so in our way in our notes we're seeing that the Biden executive order wasn't really much of a catalyst for change What does the industry want Does the industry say that those participants say we want no regulation or we want this entity to regulate us What's the feeling now So they want clarity And they need it They certainly don't want no regulation The industry has been screaming for regulation And this is why in one of our scenario we actually think that established companies like coinbase and FTX and finance they are actually well positioned to deal with this upcoming regulatory enforcement or upcoming regulatory oversight The reason being is that there's this fear out there of what can the SEC do Are they going to face an enforcement action or are they going to face a $100 million fine BlockFi did Instead by getting this type of clarity and by getting this type of oversight they will be able to move forward push this to the side and then essentially just continue to operate going forward So we actually think that this regulatory oversight if you will is a good thing for the industry Give us a sense of timing I mean this feels like the very very early innings of this asset class of crypto How do you think this is going to evolve in terms of the regulatory environment Is this something that you're just going to have to figure it out as we go along Or do you expect some sweeping rule to come out of either Congress or the administration or somewhere else So certainly not from Congress or from the administration just to our view on that is that it's an election year That's not the type of year for broad strokes When it comes to the regulatory side again all the action is at the SEC I would expect the SEC to come out probably by this summer a few more enforcement actions against the industry Again these are anticipated companies like coinbase and FTX They're talking to the regulators all the time So they know this But these enforcement actions will start to give regulatory clarity All right good stuff Nathan really appreciate it Nathan dean Bloomberg's intelligence senior government analyst coming up on the program the Russia UK war is pushing commodity related sectors to the top of the European equities market scorecard You're listening to Bloomberg intelligence on Bloomberg radio providing in depth research and data on 2000 companies and 130 industries You can access Bloomberg intelligence via BI go on the terminal.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"Now those Bloomberg sports update Saint Peter is trying to live to see another day in the NCAA tournament and they did it for the first time in school history They're headed for the sweet 16 beating Murray state 70 to 60 defense the name of the game says coach shaheen Holloway Yeah this is what we do in the whole year You know this is all this team is the defense of team This is why we came in and get in this tournament with a 7 game winter street because these guys decide to understand that playing defense when championships offering sales tickets and it's cool but playing deepens when championships and these guys brought in and the rest is history KC and defo scored 17 for the peacocks The first game of the day saw east region number one seed Baylor come from 25 down after North Carolina's Brady Matic was ejected for picking up a flagrant two foul The bears forced over time but ended up losing to the tar heels 93 86 North Carolina will meet UCLA who beat saint Mary's 72 to 56 Kansas Tom creighton 79 72 the jayhawks get Providence the friars dispatch Richmond 79 51 Providence to the sweet 16 for the first time in 25 years Michigan took out Tennessee 76 68 Arkansas with a 53 48 win over New Mexico state In 83 38 opening around win for the Connecticut women over Mercer Make his advantage ads scored a power play goal with 16 seconds left The rangers want to Tampa Bay two to one a hat trick for Brock Nelson all three goals in the third period as the islanders at home skated passed Dallas for two The Devils watched the oilers score four times in the third and route to a 6 three Edmonton win The oilers have now won 5 in a row Luis Georgia had three hits including a Homer the mets beat the national 6 two the Yankees finished in the three three deadlock with the Orioles Josh Donaldson connecting on a home run and from Major League Soccer Philadelphia with a two zero shutout of NYCFC in The Bronx With a Bloomberg sports update I'm Frank airy This is Bloomberg intelligence The new pools that a metaverse can bring that allows you to create more immersive content Beginning to sell less oil more electrons in the research and data on 2000 companies and 130 industry The supply chain breakdown is combining with labor shortages and eastern manufacturers continue to dominate or will there be a renewed interest in western manufacturers Bloomberg intelligence with Alex Steele and Paul's weenie on Bloomberg Well over the next hour we will dig inside the big business stories impacting Wall Street and the global markets Each and every week we provide in depth research and data on some of the 2000 companies and 130 industries our analysts cover worldwide On Paul Sweeney Alex Steele is off today Coming up we look at the impact of regulatory relief on prices of oil and natural gas plus March Madness control $1.2 billion in ads But first let's talk the Russian Ukraine war It has introduced a level of uncertainty into all financial markets across the world And that includes the global foreign exchange business We're talking about the currency trading For more on that I'm joined by Bloomberg intelligence chief G ten FX strategist Audrey child Friedman Audrey thanks so much for joining us here So as we think about this war which is you know we're into week four coming up A lot of real dynamics coming into different marketplaces Talk to us about the FX market What are you seeing over the last several weeks The main story that's come across is that European currency blocks have been the most exposed in the situation in the war in Ukraine We've seen significant move lower in Europe as the U.S. dollar But also in what are called high beta European currencies like the Swedish krona Sterling all underperform on the performing the U.S. dollar On the other side of the spectrum we also see commodity currencies doing really well Which usually doesn't necessarily happen in the time when the risk market is a risk of environment But this time around is very much driven by this spike high within commodity prices So The O.C. dollar the New Zealand dollar Canadian dollar as well have also been extremely resilient The Russian ruble has been all over the place Just give us a sense of how that currency has reacted over the last several weeks Well there's no liquidity there's no trading on that currency and it's obviously the first currency that would have been exposed But they are arbitrarily in the European eastern currency blog like the Polish lossy or the check crona that would also have also been extremely vulnerable and have underperformed significantly in the EM currency space All right so for the U.S. dollar I've heard some commentary of reds some news about the ability of the U.S. dollar to remain the dominant currency throughout the world for global trade What are your thoughts there There's been more and more talk about dollarization and the role of the dollar as the questioning of the role of the dollar as a Central Bank currency with the and what I would say here is that we are more likely to see a continuation on the acceleration of the regionalization of currency as opposed to degeneration And what I hear is that the dollar dominant on the international monetary system in my opinion is unchallenged for the time being I mean the dollar stock from a very high basis is still have nearly 60% of dollar reserve in Central Bank to the dollar in terms of the international debt market still represents about 62% turnover in global FX turnover We have more than 40% in dollar So the dollar remains dominant But what we see is that the war in Ukraine the change in geopolitics means that some of the current training partners will now use other currencies and the dollar like Russia China trade now there's more and more talk that the UN will be become a dominant currency in trade And that kind of actually this is not him This is a process that has been ever since 2014 and yet annexation of Crimea We have seen since then we've seen the Russian particular dropping the dollar in terms of the other currency to training And I think the process and Euro and the UN are the two currencies that will benefit the most And the process would just be accelerated by the war and the sanction that we've seen taken against Russia So for Russia has there foreign currency reserves have they been frozen How does that actually work Yeah so the effects currency the Russian FX currencies have been frozen that means that there is no dollar access for those for the Central Bank of Russia So expecting Russia in a very difficult situation in terms of meeting obligation and international obligations and payments And this is how.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"And the markets The Biden administration is working with allies to ban the import of Russian oil Bloomberg's Bill fairy says there's momentum on the ban but it's not clear if there's a way to make up for that lost oil There's a lot of pressure growing domestically on the Biden administration from Republicans and Democrats to cut the Russian oil imports At the same time they're really pressing every other producer they can to find if there's any additional output that they could put onto the market We've seen Libya cutting back at recently because of some issues there But you have the potential for some sort of deal in Iran that would bring more supply on Bloomberg's Bill fares and WTI crude now has gained about 8 and a half percent $125 and 43 cents a barrel We'll have more on markets including a big equity sell off in just a moment Some corporates are getting involved American Express suspending operations in Russia and Belarus TikTok suspending live streaming in Russia on the new law on fake news Netflix shutting all services PWC set to announce its departure from Russia and over the weekend Visa and Mastercard said that they were cutting operations and what was interesting was the two companies coordinated on the move And briefly China announced a GDP growth goal of about 5 and a half percent for 2022 that implies more stimulus will be coming All right let's check the markets The nikkei is trading down 3.2% of drop of 820 points thanks index off 3.5% The CSI 300 down 2.2% in the Cosby off 1.4% The dollar is stronger by about four tenths of a percent the yield on the ten year treasury 1.68% Global news 24 hours a day live and on Bloomberg quick take brought to you by 2700 journalists and analysts in a 120 countries In Los Angeles I'm Brian Curtis This is Bloomberg This is Bloomberg intelligence The new tools that a metaverse can bring allows you to create more immersive content Beginning to sell less oil more electrons in the research and data on 2000 companies and 130 industry The supply chain breakdown is combining with labor shortages In eastern manufacturers continue to dominate or will there be a renewed interest in western manufacturers Bloomberg didn't intelligence with Alex Steele and Paul Sweeney on Bloomberg Over the next hour we're going to dig into the big business stories impacting Wall Street and the global markets Each and every week we provide in depth research and data on some of the 2000 companies and 130 industries our analysts cover worldwide I'll Paul Sweeney Alex Steele is out today Today we take a look at the market for 3D indoor capture That is the process of digitizing physical space Plus telehealth could eclipse $20 billion in revenue by 2027 We're on that coming up But first let's talk Berkshire Hathaway Let's talk Warren Buffett Let's talk about what he's going to do with all that cash on the balance sheet For more I'm joined by Bloomberg intelligence property and casualty insurance senior analyst Matt Palazzo Matt Thanks so much for joining us here I read your research note in one of the many numbers that jumped out at me was cash a $147 billion Berkshire has on its balance sheet What does mister Buffett can do with this Yeah Paul it's interesting I think he's kind of in a tough spot He lamented earlier not buying when the markets were at kind of COVID lows in early 2020 And since that point valuations have done nothing but go up and he even admitted in his letter in terms of public equities nothing really excites him And then what happened is he's actually slowed his share repurchase in Berkshire So it looks like the first quarter is actually going to buy back a slower pace of Berkshire shares than he's been doing So I have the feelings he's still out there for his elephant still looking but I think that cash is going to sit there for a little while And Berkshire does not pay a dividend Is that correct They don't And their share repurchases is really a recent phenomenon Why don't they pay a dividend It seems like you could attract just a whole cadre of income seeking investors given where interest rates have been so low on in the credit markets Yes So Buffett ironically loves to receive dividends doesn't necessarily like to pay them out right So he even said of this annual letter the first and foremost goal is to reinvest in the business and drive acquisitions of companies Dividends have kind of always been on the bottom of his list And I guess when you're the best investor ever you probably want to hold on to as much of your own cash as you can So where would investors like to see him go I mean I know he's famously will deploy serious capital primarily in businesses that he really understands and example that's near and dear to my heart would be the railroad business I used to cover the railroad company So I could see how that would make a lot of sense to a Warren Buffett Are there some areas that you or investors would like to see Berkshire Hathaway may be more aggressive I think people would like to see him get more aggressive in technology I don't think that's going to happen I think apple is probably as far as they're going to go for major technology like investments Berkshire will tend to stick with these kind of boring monopolistic businesses My sense is the next big thing they buy maybe something we rarely have even heard of Right It's interesting I mean talk to us a little bit about the Succession if you will We remind us how old mister Buffett is and kind of where we are on him naming one or more potential successors So he actually last year in their annual meeting let it slip that Greg Abel is his successor I think it was him and Charlie Munger at which one of them actually let us flip in the annual meeting Buffett's 91 years old and he in pretty much every one of his annual letters acknowledges his own demise which hopefully as many years in the future but is kind of well aware that he is 91 years old and Greg Abel's in charge of the energy group is going to be his successor This has been long thought to be him He's actually gotten some more exposure recently He was with Buffett at the annual meeting last year and he had a whole piece in the ten K talking about the sustainability efforts in Berkshire Hathaway energy So I think we don't know a ton about him He's kind of been behind the scenes for a long time but from everything we hear about Buffett he's pretty much Berkshire and his blood is what he had said So.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"Bloomberg radio Now a global news update this is a special report the Russian invasion of Ukraine the British Ministry of Defense says the Russian advance on Ukraine has temporarily slowed According to the update that's likely due to acute logistical difficulties and strong Ukrainian resistance British defense officials went on to say that the capture of Kyiv is Russia's primary objective and that their forces are bypassing major cities to get there NATO's response force is being activated Josh Letterman reports on what the unprecedented move means The U.S. and other countries will be sending troops into this rapid response force that can deploy in as little as two days with air C special operations forces that will go not to Ukraine but to the eastern Flank of NATO This is the first time in NATO's history that the response force has been activated The Pentagon estimates Russian forces have launched more than 250 missiles inside Ukraine today This has been a special report the Russian invasion of Ukraine I'm Julie Ryan This is Bloomberg intelligence with Alex Steele and Paul Sweeney on Bloomberg radio On Paul swinney Alex Steele is out today What about three years ago I came upon this new thing in the fashion business And that is you can actually go out there and rent clothes and then send the clothes back It's called rent the runway I was dumbfounded by this model but apparently it's a thing And I'm going to talk about it now We can do that with poonam oil She's retail analyst for Bloomberg intelligence For our listeners who aren't aware of what rent the runway is can you explain what the company is Sure.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"Is Bloomberg radio Now a global news update President Biden is agreeing to conditionally meet with Russian president Vladimir Putin the condition is that Russia does not proceed with invading Ukraine in a statement White House press secretary Jen Psaki reiterated the administration's commitment to pursuing diplomacy in preventing a war Meanwhile Finland's president says the western world and Russia are entering into a colder war This makes the situation much more vulnerable Appearing on CNN State of the Union finished president Sally nysta cited the main reason as a lack of agreements against the use of violence and weapons the Finnish leader also said Russian president Vladimir Putin's behavior has gotten increasingly difficult to predict Talks are scheduled to resume Monday between Major League Baseball and the players union Meanwhile spring training games have been pushed back into March 5th at the earliest because of the ongoing lockout Florida and Arizona stand to lose hundreds of millions of dollars if there's no spring training I'm Brad Siegel This is Bloomberg intelligence with Alex Steele and Paul Sweeney on Bloomberg radio Thanks for joining us I'll Paul Sweeney Alex Steele is out this week I don't know about you but when I fly on a plane I really don't care whether it's owned by the airline or lease by the airline but I think the accountants at these airlines really do care different profitability For more let's bring in George Ferguson He's Bloomberg intelligence senior aerospace and defense and airline analyst George So again if I'm an airline do I want to own my planes and I have all that depreciation or do I want to lease them It's kind of like do I want to own my car at least it I think that's going to be an interesting question that we're going to explore here in the next airline expansion So in the past really it was always kind of seen as a more stable platform to own a good portion of your fleet in downtimes like we just saw If you own your fleet or proportionate your fleet you could park it without having to worry about making payments because you're probably making payments on the entire fleet over time and then you probably financed And so some of them are paid off to get parked on the side of the runway and say look at some other flying market is horrible right now And you didn't have to worry about making payments and all of them Like I said some of them were paid off But what we're starting to see is a lot more leasing especially at the fast growing low cost airlines Airlines are frontier But even some of the big majors like American and so when you're leasing your fleet you're effectively financing them all the time right You pay a rent on them when you stop paying the rent is when you give the airplane back to the left sore And so there's a tendency in airlines that have a large lease fleet to fly almost all other fleet because you've got to make payments on it So what we've seen is actually a lot of them haven't taken airplane data service during dips and demand like omac and it's kind of turning fares and turning some of the results And so again we'll see in this next expansion Who's got it right but that's kind of the two different ways we're seeing depending on where is the airline industry here in terms of the capacity relative to pre-pandemic levels because I've just booked three or four trips over the next coming few months So I'm wondering if I'm representative of a post omicron travel marketplace So how are the airlines in terms of their capacity So we finished the year off pretty well and we were getting up there really into 2019 levels of supply It depends who you are if you're a fast growing low cost airline again spirit frontier JetBlue even you're already above probably 2019 levels supply what you're putting in the marketplace The big full service guides American United Delta not as much and are still 10% or more below But all of them really think that they'll be approaching 2019 levels by the end of 2022 And interestingly so you're talking about booking we're seeing a bunch of bookings right now See a nice rebound in the booking curve I mean January was pretty rough because of omicron but I think the airlines have gone out and provided some discounts to really spur people to start booking travel for spring and for summer one it brings in cash flow now And they kind of commit you or I think there's still probably you could change without much fee or any fee But they're trying to pull you in and grab part of that spring summer balance now by offering some decent affairs You might be part of that wave that we're starting to see or that we bound to start to see the book How about so that's the leisure travel I'm back But I haven't had any business travel What are the airlines thinking the new normal will be as it relates to business travel I mean that's hard because I think we're all trying to figure it out Airlines are trying to figure it out The industry all of us that watch the industry is trying to figure it out I mean we aren't seeing business bounce back as quick as leisure It's still lagging pretty significantly It's a strong source of profitability the price point is usually much higher as you know But what we're starting to think is that some of the intercompany travel maybe gets peeled away in the future right is more work from home going on In the old days maybe it brought people into the home office three or four times a year So you could talk to about strategy and things like that Maybe you only do that a couple times because we all know how to operate zoom So well And we are still seeing challenges in big meetings right We saw it with the CES show And Vegas right Some companies just don't want to subject their employees or ask their employees to subject themselves to the risk of a big conference And so some of those conferences are getting peeled away I mean I frankly think we'll get back to the same level in a couple of years of those conferences but that probably lags for a couple of years that we people who will be afraid to concern about going to them but maybe maybe 90% kind of ish And we still think that the face to face business travel can make a sale that probably gets back to a 100% of what it was in 2019 Much sooner even this year because those are relationships account it's all about bringing in revenue so we think that rebound much faster All right I'm booked for my leisure No I'm ready to start doing some business travel so we'll see how that plays out George Ferguson thanks so much for joining us there George Ferguson Bloomberg intelligence senior aerospace defense and airline analyst All right we've all been talking about infrastructure spending on one of the areas that I find really fascinating is water infrastructure because so many leaders in business and in government have been saying for years that.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"This is Bloomberg intelligence The new pools that are metaphors can bring allows you to create more immersive content Less oil more electrons In depth research and data on 2000 companies and 130 industry The supply chain breakdown is combining with labor shortages Eastern manufacturers continue to dominate or will there be a renewed interest in western manufacturers Bloomberg intelligence with Alex Steele and Paul Sweeney on Bloomberg Over the next hour we're gonna dig inside the big business stories and packing Wall Street and the global markets Each and every week we provide in depth research and data on some of the 2000 companies and 130 industries our analysts cover worldwide I'm Paul Sweeney Alex Steele is out today she'll be back next week Today we look at the business implications of Supreme Court Justice Stephen breyers coming retirement plus the global oil major uniquely positioned for Europe's guest crisis But first let's talk about beyond me They are rolling out a faux chicken sandwich at KFC Is this going to be enough to continue this growth story Let's bring in Bloomberg intelligence packaged food and retail Staples senior analysts gen bartas Jen thanks so much for joining us here Talk to us about beyond meat and I guess KFC That's a thing It is Really KFC has launched a national launch of their beyond meat fried chicken nuggets And this is really important for a couple of reasons For the first thing it is the biggest national launch that beyond meat has had at a restaurant chain And so we're really watching how successful this is because it's arguably a really critical milestone for the company's growth How much of their business to date has been selling to restaurants versus supermarket sales Well if you went back to before the pandemic the sales mix for beyond meat was really pretty even Just about 50% at food service and about 50% at retail But with the pandemic obviously that split greatly Because beyond these restaurant clients tend to be those that are more casual dining chains in places where you go and sit down versus fast food restaurants And so right now only about 30% of the revenue is coming from restaurants And that's something that they're looking to change with partnerships like the one with Yum Brands So during the pandemic did everybody buy more beyond meat like they bought a lot more of lots of other stuff in supermarkets because we were eating in Yeah it definitely was a boon for beyond meat and it was a competitive advantage over some of the other players that people think of impossible Because there had wider distribution at retail And so is everybody stopped going to restaurants and they started preparing more things at home They really bought more of those products in grocery stores to make it home But beyond meat has just relaunched a chicken nugget product which is also going to be is also at retailers at retail stores and is expanding But having that presence at a big restaurant puts it puts their brand back in the minds of consumers And so when people are out there and they see advertising where they try the nuggets at KFC the next time in the grocery store that marketing message stays with them and it hopefully will help them spur additional spending back at retail as well So if I'm beyond me do I have a preference from a profit perspective where my product is sold supermarket versus a restaurant Well it's really about having diversification of your revenue stream So from an actual profitability perspective there's probably not a huge meaningful difference But you want to have sort of a balanced portfolio of your products and where people are buying them And so that's why making a push into fast food chains which have been very resilient throughout the pandemic is an important next step for beyond meat There was also news that a pilot program with McDonald's for what's called the plant burger Is being expanded as well So this KFC national launch really is a way to kind of test beyond meat's ability to meet highest levels of demand on a national scale And so it's very promising to see these relationships with Yum Brands McDonald's emerging and really starting to gain some traction So is the overall market for I think I've read in your research alt meat I guess is kind of the market segment a sense of maybe how big it is what the growth dynamics are Right now that the size of the market is still quite small It is really placed for a lot of growth And really we're expecting that this market can grow to over $60 billion over the next ten years But what we're seeing right now is there was a little bit of a pull back in 2022 or 2021 as people started going back out to restaurants and there weren't as many sales happening in grocery stores But we do think that the revenue is going to rebalance and that the growth indicators are still there People are caring about what they're eating They want to have an environmental impact They want to have some choice in their diet and all of those things that the catalysts that we think are going to continue to push overall sales in the alternative meat category growing going forward Looking at the stock here off more than 60% over the last 12 months what's been the bear cases seems to have taken hold here Well really what's been happening is you're looking at a lot of skepticism on how well beyond meat was progressing with some of these key relationships And that's what makes the announcements from in January with KFC and with McDonald's really very important At the same time with the pandemic there were supply chain disruptions They had a fire or flooding at one of their facilities that we can their ability to meet orders So there have been a lot of things that have contributed to that play down in the stock We do think that there are some good things happening with beyond meat They also have a partnership with PepsiCo where they're going to be branching into snacking opportunities to further diversify their portfolio But there's been a lot of heavy investment in terms of R and D in terms of staffing that has been happening And so now it's at a point where I think investors are really looking for some returns on all of those investments and seeing sales start to grow and hopefully achieving fairly consistent profitability at some point in the.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"And that is your Bloomberg business flash All right Doug thank you so much Let's get back to our conversation Carol masser here with Katie greyfell She's in our interactive broker studio also streaming on YouTube Karen Klein is founder of Bloomberg beta she is still with us on the phone in Florida You know Karen I was listening to some of the Bloomberg teases for upcoming weekend shows and I heard Alex Steele talking about the metaverse And life in the metaverse And I am curious how do you think about it You understand technology you've seen some of the new waves and trends over your career Will we be working to some form in the metaverse Well there are certainly one of the things we'd like to see on technologies to try new opportunities and see where it lands That one is still sorting itself out And probably another word that you've heard that's in conjunction with that is around web three Which is the next generation of the Internet and something I think that we're all kind of watching and seeing how it develops And hard to tell yet where some of the effusiveness is and where some of the reality is but some of the things that we've noticed at least around web three which are causing us to pay more attention and start putting some capital work is many respected software developers are starting to spend their time on web three There were 34,000 developers in 2021 that worked on an open-source web three project And that to put in context is almost as many as work if Amazon So the fact that this elite and time constrained group is spending their time on web three probably means that maybe there's something there and we certainly want to continue to see more of the inclusion around it and greater groups trying to adopt and figure it out And shameless and a shameless plug I just want to put it in the ear head issue of Bloomberg business week They get into Katie three and what it might mean for this next phase But anyway go ahead Yeah that is a jam packed issue And it makes sense that web three would be in it because there is so much enthusiasm enthusiasm around this space and Karen You kind of got at what I was going to ask and that it is such a new space There's a lot of hype A lot of buzz but how do you even begin to do due diligence that are evaluated I mean you mentioned looking at who's involved that you do have all these big time well respected software engineers Is that basically what you have to go on at this point You know who is putting their energy into it That's one of the things And then I try and think about how is it changing things Like how is it making what we currently have better and look for those pockets So we were talking about the metaverse When does it make sense for somebody to be wearing a headset Like to put that extra piece of plastic on your head When do you want to be using AR and VR And when are there other ways that you can adopt and potentially experiment with the technology And the use cases aren't necessarily that clear yet right Like in terms of if you're trying to learn surgery it might be a very in your student and an up and coming and you can't necessarily or you want to practice on your own time It might make tremendous sense Whereas collaboration if you can't meet with people it might be another potential opportunity But just to hang out at home and might not might not be as good as actually reading or consuming something without having to have all the devices attached to you There is a point where I just want to shut everything off and take all my wearables and everything and just kind of live But it is interesting Karen tell us a little bit more about some of the companies that you guys at Bloomberg beta have invested in when it comes to how we work So one of the areas I'm particularly excited about right now is around culture and just because we're spread out our homes are becoming our workplaces It's just so important for leadership to be much more intentional around that And we've heard a lot of talk about this great resignation I actually think it's an opportunity for the best leaders to upgrade their talent and that that's the way they should be looking at it And so there are a bunch of tools and technologies that can kind of help us keep in better touch with our employees and know what's going on And it might be around corporate training so that people feel valued and can develop the skills they need And we have a company we invested in called code academy that's just getting sold to skill soft because it helps people learn how to code in a much more seamless seamless kind of way Degree does corporate education training And so there's some along the training part I think we're going to see a lot more there certainly have been some around mental health and it's now becoming more okay just because to talk about it And so companies are going to be offering a lot more resources to make sure the well-being of their employees work If they want to retain those employees eager to see that transition Which is I'll go on Go on Well I was just going to see one of the other things that maybe not even in the culture around that I think is going to also pop up is because we are working in different places There are even greater security vulnerabilities happening And so we're going to continue to see a lot of movement around security We have a company called flashpoint New York based And 6 years ago they were a small startup Now they're buying They just announced this week acquiring risk base which is a big deal that they're able to buy another meaningful company and continue to make us all safer And in particular it's doing it around the log four J challenges I think is going to be a lot more buttoned up with their combined offering Yeah one of the most interesting storylines for me in 2021 was just all the cybersecurity attacks really fascinating Karen we have about a minute left but I'd love to hear what else is on your radar that we haven't talked about You know what other trends are you keeping an eye on outside of how we work Well so I love that you mentioned Elon and The Boring Company earlier I went to college with Elon so it kind of seen him over the years And it had the pleasure of getting to invest in.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"Just an example of how we want to help people get paid If you like what somebody's saying if you want to contribute whether it's to GoFundMe or with Bitcoin through a lightning wallet or if you want to use the cash app or other things we just want to make it as easy as possible to allow value to transfer from one person to another on Twitter We think about that a lot less from a revenue perspective for us and a lot more about helping people get paid because if we do that there'll be so much more great content and we'll continue to grow our audience on Twitter Fair enough This is Alex Ned thanks for joining us Fair enough but still you're gonna wanna grow your revenue and grow that top line And I'm wondering how much the new products that you're unveiling are really gonna contribute to the top line growth and when can we expect some real numbers there Well speaker revenue 37% this quarter So I think you're seeing it already We guided for the typical seasonal strength that we see in Q four with the Olympics were such a strong event for us We exceeded our expectations but when advertisers came to Twitter during the Olympics 12 of the 14 Olympics advertisers amplified their campaigns on Twitter acai got 2 billion impressions around their campaigns during the Olympics It's a great example of how we're able to deliver for advertisers We came out with a new format called the multi destination carousel so you can click through and go to different places on an advertiser's website That's driving 20% better click through rates These are real proof points that we're able to deliver better and better for advertisers right now Isn't that Seagal Speaking only there he's the Twitter CFO and he was in conversation with Bloomberg's Alex Steele Still more to come This is Bloomberg Before and after the pandemic Is it driven by politics or by science That may be how we keep track of our lives from here on out What do you think the political effects of that impatience will be And through it all there's been Bloomberg We begin on Capitol Hill the most accurate business world and healthcare news before and after The fundamentals do not justify this price section Bloomberg radio the Bloomberg business app and Bloomberg radio dot com Bloomberg the world is listening.
Bloomberg Radio New York
"alex steele" Discussed on Bloomberg Radio New York
"The main reason was it shares serve last year was because investors understood that there is a way for Spotify to be to improve the profitability which is with podcasts And including the margins there Now when the margin story was clear that's why shares were improving But at the end of the day when you look at the podcast industry in the U.S. it's only about $1 billion And it's still growing Spotify is a big part of that But still for that impact the bottom line for the whole company is going to take many years And I think maybe there was an overreaction into thinking this is going to something that's going like podcasts for instance are going to improve margins in the near term So that's why we see some of the moderation but also like you said a delay of commuting and things about sort that are not good for Spotify All right that's a good deep dive on the music business of today It's streaming Spotify good stuff I mean Ben Saad Bloomberg intelligence media analyst Really interesting All right that's this week's edition of Bloomberg intelligence on Bloomberg radio providing in depth research and data on 2000 companies and a 130 industries And remember you can access Bloomberg intelligence via BI go on the terminal I'm Paul Sweeney And I'm Alex Steele it's 57 minutes past the hour and this is Bloomberg When will you be able to go to a meeting where nobody smells like hand sanitizer Who knows But we can give you the latest business and financial news fragrance free Plus tease out some of what you just said Are there tools in the.
Making It With Jimmy Diresta, Bob Clagett and David Picciuto
Learning to Weld
"On Friday. We put out the corner table video video which came out really good. And as some Bob before we hit record are the welding on the table Dannon I looked at at one we were done and Dan goes. You'RE NOT GONNA win any awards for that and it was A. You're you're right and on camera I would explain like I'm still learning. Don't just Gimme a chance. I'm still learning but when I went to go at it the video none of it showed up like there's not enough detail. It's not close enough and so I'll just cut that part out and make it look like I know what I'm doing So just know that the tables perfectly fine I got some good penetration is just not pretty but this week my buddy jol. WHO's a professional fabricator? He's coming over and we're going to shoot a video on getting started in welding and and what you need to look for. And he's is going to help me with my technique because it's going to be really important here and a couple weeks when I start attacking in the go kart together because that's gotta be saving for me and the other people and if it's not good I can't I can't I can't race it so I need to. I need to get my technique down before before. So Joel Washing He's GonNa come over and he's he's he's GonNa hold my hand again and we're GONNA WE'RE GONNA get it all on camera breath very Zena. Hold the hand. That's holding the welding torch. The other both of them that Patrick swayze ghost scene. It's going to be. We'll have some nice music playing in the background. Oh man that's all. We talked about this off off camera that you know it. It is totally different to have somebody who knows what they're doing. Give you like five minutes of dedicated dedicated teaching hand experience with somebody rather than just fumbling around and takes you so much less time. You're getting immediate give. Yeah exactly you can mm seat rather than like waiting a week or two weeks and then getting feedback from the Youtube comments when your mind is an entirely different place I had tons of people. Tell me that Oh you should go. You know work with Alex Steele Bill. When you're doing the blacksmith thing for the first time I'm like well that's awesome? Yeah I would love to live somewhere else and I did this three weeks ago so you know like it it. It didn't work but having somebody there to give you just a few minutes of instruction hands on is awesome which is probably why the classes are such a success for you Jimmy. Carr's people were getting that in a group you know great. I say it all the time when I first learned my shop bought. CNC Try playing with the Safa by myself. I didn't know what what I was doing then. I didn't go to youtube videos. I just try to make it on my own and then I was so confused. I sat with somebody one of the teachers at maker Faire and I sat with five minutes and that was my whole entire education and from there it got started. So that five minutes of clarity clearing up some MM stuff that I had learned playing with it on my own. Got Me completely on my way