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The Emergence of Flavored Spirits Nov 02, 2023

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Ann Mukherjee, CEO of Pernod Ricard North America, discusses the state of alcohol industry and expanding their portfolio in tequila and flavored whiskey.
Hosts: Carol Massar and Mike Regan. Producer: Paul Brennan.

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AGCO CEO on Harvesting Tech for the Future of Farming Nov 01, 2023

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Eric Hansotia, Chief Executive Officer at AGCO, discusses growth, technology and sustainability in the agriculture industry. theSkimm Co-Founder Danielle Weisberg talks about their Show Us Your Child Care initiative. Bloomberg News Chief Correspondent for Global Macro Markets Liz McCormick and Bloomberg News Cross Asset Reporter Denitsa Tsekova provide the details of their Businessweek Magazine story Hedge Funds Turbocharge Volatility in Cratering US Bond Market. And we Drive to the Close with Amanda Agati, Chief Investment Officer at PNC Asset Management Group.Hosts: Carol Massar and Mike Regan. Producer: Paul Brennan. FULL TRANSCRIPT: This is Bloomberg Business. Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus global business, finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. Well shares at Adco. Check it out, everybody, They're up our third day, They're at more than six percent in that time. Company reported earnings yesterday morning, of which third quarter just at EPs was a big beat. Third quarter net sales in line with expectations, and the maker of tractors and combines also said it still sees fiscal year net sales of about fourteen point seven billion, slightly above street estimates, with fiscal year just ADPs of about fifteen dollars seventy five cents a share. That's fifty cents above the company's earlier forecasts. Three analysts nonetheless cutting their price targets on the company by an average of three and a half percent since it reported yesterday. So let's get to it. We have a great guest. We have the CEO, Chairman, President and CEO at ADCO, Eric Hansotea. Excuse me, Eric Hensotia, He's on zoom from Duluth, Georgia, and he joins, us, forgive me, forgive me. I'm trying to race to get to you. So I apologize. Eric. Oh you good, no problem, Really great to have you here with us. First of all, how are you? And I do have to ask you about the FED? In an environment where the FED says, you know, we could still continue raising rates, we're still worried about inflation. Does that kind of mesh with the outlook that you see? Well, your first question was how am I doing great? Just couldn't be happier with the progress that our company is having relative to our strategy. We're going to have two billion more in sales this year, We're going to grow margins significantly relative to the and it's all in line with our high tech focus on being the industry leader and smart farming machines relatively to the FED. You know, interest rates do weigh on farmers' minds. These are big as they carry a lot of technology. They're expensive machines, many times half a million to a million dollars, and so they often finance those machines, and higher interest rates are part of the part of the decision. I'm expecting that we're you know, at a high plateau and that we're more likely over the coming year to have red rates go down then up, and that would be welcomed by our customers, you know, Eric, I'm looking at the revenue growth of ag CO over the years and really some impressive growth there. Twenty twenty one is up, twenty two, twenty twenty two up fourteen percent, sixteen percent. This year, it does, at least according to analyst estimates, look like you might be in for a dip in revenue last year. And I'm wondering what's the what's driving that? Is that entirely an interest rate story or is there is there something else going on? It's actually very little related to interest rates. Agriculture often is not connected, not correlated highly with the regular GDP growth. It's more tied to the agricultural agricultural economy. So the price of corn, wheat, soybeans, and that's a function of how much green there is in the world. For the last two or three years, there's been green shortages and so green prices have been high. That means more profit for our farmers. Now they've had a great year this year in terms of harvest and so there's a little bit more stock prices have come down a bit, and that's really more what drives farmer profitability and then turn their interest to purchase equipment. Hey, Eric, what I wonder is longer term how you guys think about the business, how you plan, because I wonder if things like weather, climate change, demographics globally, is that more significant in terms of how you think about the growth longer term? And if so, what does that maybe indicate to you. Yeah, that's a great point, Carol. So we see three macro tailwinds plus this weather factor. So let me touch those real quickly. Number One, we're moving from eight billion people to ten billion people between now and twenty fifty. Number two, emerging economies are adding more meat to their diet as they do that. That's a multiplier on the demand for green chicken is a two to one multiplier, beef is a ten to one multiplier. And then third is renewable fuels, so ethanol in the United States. But now the next one is renewable diesel. Ethanol consumes forty percent of the corn crop today. Renewable diesel is likely going to grow to that same kind of proportion over the next few years. Those are all macro tailwinds that cause the farmer to have higher yields and more pressure on higher yields. And then weather is another one. We're having more severe droughts and more severe floods every year that reduces the overall global global ability to produce cream. So you add those four factors together and the farmers are pushed to have higher yields while using less inputs, less fertilizer, pesticide, chemicals and things like that, and so there's a big squeeze for productivity. Using our technology, we're using artificial intelligence on our now to be able to use vision systems so identify the difference between a weed and a plant as a machine's going through the field and spray only the weed, saving like seventy percent of the chemical and a lot of automation of features throughout all of our products. Can you say, I'm assuming you've been using AI for a long time though, right, Yes, we have. Across many of our machines. We use AI to understand the variation in soil or crop and have the machine learn over time to be able to optimize itself real time in the field. It's amazing because when you think of AI. The last thing I think most people think of is farm labor. Do you think of machines though, I think a machine. Well, Eric made a great point and I wanted to ask about this. Is right at the beginning, you said that technology aspect of your business is so important, and again, if you're not really familiar with ACO, you might not think about that. But one thing I wanted to ask about, Eric, and full disclosure, I'm not an expert on tractors. In fact, I hire a kid to cut my own grass, so I'm really I've driven a tract, this big one. There we go. So I'm coming at this from a pure ignorance state of mind. But I would think that self driving technology would be easier to implement on the farm with a tractor. But from my understanding is it's not really I wonder if you could talk to us a little about where you are with that type of technology. You know what we see it anytime soon? Or is it just, for whatever reason, too complicated to have self driving tractors. It's a great topic. It's at the heart of our strategy is putting technology on machines to have the machine be smarter and be able to do more things for the customer. I talked about the sprayer. We're automating all our functions on all of our machines. We've increased our engineering spend by sixty percent over the last three or four years since we started a strategy. We've bought six tech companies. We just announced the biggest AGG tech deal in history with Trimble agg where is over a two billion dollar deal to bring those to their technology and our technology together. So technology is a big deal. Now let's talk about the autonomy question. Already, guidance, which Trimble is is one of the world leaders in is used by farmers once they get into the field. They get into the field and they already turn on auto steer, which is a satellite driven guidance, tip the steering wheel out of the way and the machine steers for itself. Now it's still supervised today, but most large AGG has is the machine is doing the steering for itself. We've committed when we were in Wall Street last week last year, we committed that by the end of the decades, so twenty thirty, we would have the full crop cycle, meaning planting, spring, tractors, harvesting, all autonomous with no driver in them, and by twenty twenty five we'd have a retrofit kit that would be able to be put on an existing machine to make it autonomous. So it's a more contained environment. There's not so much other traffic and other things in the way, and you can stop. You don't have a lot of other traffic around, so you can if there's runs into a situation hasn't seen before, the machine will just failsafe mode is stop and then you can remotely view into it and restart it. It's like about right, there's lots of move there's a lot of space around you. Autopilots work really really well. Hey, in twenty twenty four, what do we expect for your company? Do you see higher prices due to inflation continuing And just got about forty seconds. Yeah, yeah, prices are going to moderate. You know, these last couple of years, we put a lot of pricing into the market, more than our a little bit more than our cost. We expect to still put more than our cost into the market because of all this technology we're bringing in the value it generates. But inflation is coming down pretty significantly for us, and so we think it'll be much more normalized. You know, we haven't given guidance, but it'll be more in the mid to low single digits than where we've been before. Any any kind of peak ten seconds in terms of the ag machinery market, do you see any kind of peeking out just very quickly. Well, we've still got strong demand going into next year. Our order boards are out six or seven months on large egg. We're sold out for our seasonal products. We're all through Mighty Year twenty four, so we still see twenty four as a good year, although getting more normalized. All right, love it, listen, come back soon, so appreciate it. Eric Hansodia He is chairman, president CEO at AGCO on zoom from Duluth, Georgia, So appreciate your time. On this Wednesday, you're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app and the Bloomberg Business app, or watch us live on YouTube. All right, we're going to switch gears a little bit off of earnings. Talk about the skim. It's a non partisan digital media company catering to women. It's a subscription newsletter company to offer up things like the daily Skim Skim Money. There's also a podcast and a lot more in terms of what they do the privately held company. Their investors include GV which was formerly Google Ventures. Also Disney. We just heard Denise talk about Disney when it comes to the Hulu ownership. Ventures is another investor in the company. We talked with both of the founders back in March, and great to have back with us this time around. The Skim co founder Danielle Weisberg. She's on Zoom in New York City. Danielle, how are you. I'm good, Thanks so much for having me here today. Before we get into some specifics, I always like to talk perspective. You guys have been around for more than a decade. It's been a few months, about six months or so since we last talked. Talk to us about, you know, how business is doing this year, and just talk to us about how you see the environment right now. Yeah, So you know, listen, you guys are in this day in and day out in terms of public companies, and I think that when it comes to this environment, we know ADS spending has been really up and down. It's been tenuous. I think that when those budgets flex, the biggest thing that you can rely on is a direct relationship with a sought after customer. And at the Skim we have been representing millions of win women for over a decade. Our audience is the people that you want to reach and that you need to reach. They are the ones that are making ninety five percent of household purchasing and spending decisions. So while the overall media landscape continues to have challenges, we've certainly felt that, but at the Skim, what we come back to again and again is what you can't duplicate and what you can't just start overnight, which is a real direct relationship with a group of women who look for look for us every single day. How big is that group? Just remind us in terms of your reaction base over twelve million women. Wow, that's a lot. That is a lot. Are you just remind me to only subscription based or no, there's ad dollars that comes in. No, we have a differentiated revenue model. So we have sponsorship, we have subscription, and actually our fastest growing line of revenue has been commerce. Danielle, at the Skin, you have a very interesting initiative going on called show us your Childcare, Talk to us a little bit about what that is, what the goal of that is. Yeah, so it's a good day to talk about it because there was I don't know if you guys saw this, but there was a report today where we were finally able to look at data in comparison to childcare costs in twenty nineteen. So the price of childcare is up thirty two percent. That means that many families can't afford to both work, and that price search outpaysd overall inflation. I mean, when you look back this year, how much time have we spent reporting on inflation and thinking about what that is doing to families and the decisions that they're having to make, and think about then what it means to say childcare costs are going beyond that. And again this isn't new. This child share share childcare crisis has been in existence for years and the pandemic only made that worse. And in fact, the only time that there has been an investment the US has ever made a sizable investment in childcare was during the pandemic. And when that pandemic era funding expired, which it did, there were no other solutions offered. So it's leaving about three point two million children and their families without childcare options, and that is absolutely just unacceptable. We have an economy that more and more relies on parents, both of them to work, and to do that, you need to make sure that your kids have proper care. Right Listen, you're preaching to the choir. Nobody's going to like get. We totally agree. We talk so much here, I feel like about the lack of affordable daycare or childcare, if you will, for many, many millions of Americans. Other countries seem to have figured it out. You guys, have a partnership and talk to us a little bit about it with moms first. You're partnering also with companies such as Verizon, MasterCards, show Banni on this. Tell us what specifically are you are doing to kind of impact this problem or the situation. Yeah, So we launched hashtags show us your Childcare. And this is the second real civic action campaign that we've lost that we've launched. The first was hashtag show us Your Leave. And what we believe is really matching areas with there is a disconnect for what the government is doing so. Again, childcare has not been something that's been solved by Democrats in leadership or Republicans, and so because of that, we again have really needed the private sec…

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Good Real Estate Assets With Bad Capital Structures Nov 01, 2023

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Margaret McKnight, Head of Real Estate Portfolio Solutions at StepStone Group, discusses opportunities for investors specializing in real estate recapitalizations.
Hosts: Carol Massar and Jess Menton. Producer: Paul Brennan.

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Fed Officials Set to Extend Pause Without Saying Hikes Are Done Oct 31, 2023

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Bloomberg Economics US Economist Stuart Paul and Steven Skancke, Chief Economic Advisor at Keel Point, discuss the Federal Reserve meeting and provide a preview of Wednesday's rate decision. Bloomberg Technology Co-Host Ed Ludlow breaks down AMD reporting a lackluster revenue forecast and looks at the latest EV news. Martina Larkin, CEO of Project Liberty, talks about efforts to return ownership and control of personal data to individuals. Bloomberg Businessweek Editor Joel Weber and Bloomberg News Media and Entertainment Reporter Samantha Stewart share the details of Samantha's Businessweek Magazine story Hollywood Has Perfected the Lucrative Business of Horror Movies. And we Drive to the Close with Jimmy Lee, CEO at Wealth Consulting Group.Hosts: Carol Massar and Jess Menton. Producer: Paul Brennan. FULL TRANSCRIPT: This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus global business, finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio. We're just under twenty four hours away, Jess from the next FED decision FOMC. We've got some economic news today. We talked about it right, consumer confidence down to a five month low, dropping to a five month low in October, and then you got employment costs unexpectedly accelerating in the third quarter or so. That reminds us we've got a strong, strong labor market. And especially with some thoughts ahead of this FOMC meeting. Back with US is doctor Steve Shanky, chief economist and advisor at Keele Point and former staff member of the US Treasury while White House National Security Council. And then of course Steve is on zoom in Mexico, also with US as Bloomberg Economics owned US economist Stewart here of course in the Bloomberg Interactive Brokers studio, and so Stewart I wanted to kick off with today's data, so we did get a lot of indications here what wage growth does look like in the economic snaphot obviously of the economy. When you are thinking about FED share Jerome Pale tomorrow, what are your thoughts in what do you think that the Federal Reserve should do? Because we're not going to get those quarterly economic projections or the dot plots tomorrow. So it was a bit of a shocker to see the employment cost index tick up in Q three. It departs from what we've been seeing with the Atlanta Fed wage tracker, departs from what we've been seeing in the non farm payrolls report, where we've had modest wage growth that's actually been relatively consistent with two percent inflation, with the Fed's two percent inflation target. We don't think that the Fed is going to be in a position to hike tomorrow ninety seven some odd percent odds market applied probability that the Fed's going to maintain its current policy rate when it makes its announcement tomorrow, and we think that that is the right move. Though I wouldn't be so presumptuous as to tell Chairman Powell how to do his job. I would either having said that way, I want to bring Steve into because what I think about A very wise individual said to me that Jay Powell, he's a lawyer, and he looks at the data in front of him, Steve, and that's what's going to determine the decision he's going to make on any given FOMC day. Having said that, so what is the data playbook that Jay Powell and company will be dealing with when they make that decision or just ahead of that decision tomorrow. Well, I absolutely agreet Carola, and the data that he has has in front of him is a little bit overwhelmeding just because it's so broad. I mean, we had this four point nine GDP growth number, but you know, consumer spending was up four percent and a rebuilding of inventories, which is a big variable, was up. So how do they discount that? Maybe he'll say something about that in his comments, as as Stewart said, the employment cost index unexpectedly up, but at the same time, a year over year, private wages and salaries were doubt a bit. Unemployment is not likely to fall, wages are looking to be on a downward trend when we look forward, and I think that the FED can probably see that. So the discussion, even with no rate increase, no change in tone, I think would be very interesting as chair of Powell answers questions about these data that are a little bit inconvenient. But at the same time he has a lot of other things that he can fall back to and point to, well, come back back in stut because I just I do wonder in terms of, you know, what you think will be top of mind or the message that he's going to need to get across in that press conference, or what he might be you know, questioned about the most because I feel like we've well, no, okay, no decision, So we moved to the press conference, right, So moving to the press conference. Here's just a typical strategy that Powell deploys at the press conference. If they were to ever make a hike a hawkish move, he ends up sounding a little bit more dubbish during the press conference if they do something that's a little bit you know, incrementally dookook right exactly, and you just hold on to your CDs. You watch equities move when he's in the middle of the press conference. But when they make something that's a little bit more dubvish, when they hold rates steadied as they will tomorrow. He's gonna most likely sound hawkish. He's going to talk about the persistence of growth, even if he takes Steve's really important points into consideration about thirty percent, about thirty percent of that four point nine percent Q OVERQ growth that we saw on Q three came from inventories. That doesn't exactly scream like organic growth in the US economy. Even if he were to take that into consideration, he's gonna end up saying every meeting is a live meeting. They're only making decisions for today. They're not making decisions for tomorrow. Based in the latest SEP, they're still showing another rate hike this year. So he's going to end up sounding a bit more hawkish at the press conference. Interesting how much does that job booning stew feed into the mistake from transitory that he dropped almost two years ago? You know, I think that it is still something that they think about. They don't want to end up with the egg on their face and perpetuity. They do want to end up showing some sort of dedication to bringing inflation back toward the two percent target. After having made such an important misstep and being so all too confident that inflation would come down naturally, and instead they're actually having to put in a lot of the work. And given the fact that the US hasn't been especially interest sensitive in their spending today and it's taken a lot more hiking than anticipated, I think that any sort of hawkish tone may exactly be part of that just and may be part of that legacy of dealing with that transitory egg on their faces. Hey, Steve, one of the things that I thought was really interesting. We've had a great story in the Bloomberg about corporate credit strength and that to really you know, tame inflation. The FED, you know, they're looking to tighten those financial conditions across the economy, but they really haven't made much of a dent in corporate America yet. So we're talking about you know, we look specifically at the extra yield investors demand for risk in the US investment grade and high yield bond markets, which has remained below their twenty year averages and well under level seen during historical times of stress in the economy, and borrowing remains robust. So would the FED like to see that tighten up a little bit and not be so upbeat that there's more work to be done. They look at things like that, well, they certainly would like to see the market providing less liquidity, and that goes right to the point that you make. But they're also there are also very wary, I believe, notwithstanding wanted to wanting to continue their Hockey's tone of doing anything that is that is going to fuel a further sell off in the bond market. They seem to be happy with where mid and longer term rates are, and so while they might not be particularly happy with with all the liquidity that continues to exist in the corporate market, my belief is that they'll be patient about it. Can I ask you, do you feel like if it's getting close to a neutral rate? Yes, I think that they are. They just just the comments that that some of the Governor's f MC members and Jay Powell made this past last week. They they seem to be getting comfortable with that. I mean, to Stewart's point, they don't want to. They don't want to let up up on their hawky is tone. But but when you sort of parse out some of the things that they've been saying recently, I think the answer to that is yes, Stu. We also have another wild car for tomorrow with the refunding in the treasury market. What are your expectations and what do you think that could mean for yield as far as what that pressure could mean for maybe longer duration and growth stocks in the equity market with growing auctions with higher deficits than had been previously projected, there's reason to believe that even just the term premium that had been getting blown out, that had been raising the entire yield curve that has been front of mind for FED policy makers, could even just get blown out even further. One thing that's super important, though, is that when you see higher long term rates moving as a consequence of a larger term premium, it means the FED has less work than it has to do. It could sort of sit back and relax, not really relax, but at least wait to see the economic consequences of higher long term field continuing to ripple through. So, for example, while the FED had been doing most of the heavy lifting deeply inverting the curve raising front end rates as aggressively as we've seen it point in the past forty years, now with longer term rates catching up as a consequence of a larger term premium, the FED can sort of slow down. And I think that that's that is downstream funk fiscal policy, and that is going to be an important factor tomorrow. Yeah, you do feel like, hey, if I get a little bit of an assist, it wouldn't mind Steve saving the last forty five seconds minute for you here in terms of that the specifics on that refunding, how does you've worked at Treasury, how does that factor into or and you've worked at the government, you've worked at the White House? How does that factor and you think into the Fed's thinking, Well, they had to be aware of it. You know, they've gotten caught up on this a couple of times in the past on their REPO activities, so they're certainly mindful of it. They want to be respectful, and the Treasury Secretary has has indicated a point of view that maybe isn't fully embraced by the market. But I think that the the FED is going to be sensitive and accommodating. Going to be interesting, very interesting. Hey, guys, thank you so much. I feel like there's a lot going on, but we need a little bit of a setup ahead of that FED decision, which you know, twenty four hours from now, less than twenty four it will be front and center for all of us guys. Thank you so much. Blueberg Economics US economist Stuart Paul joining us in our Bloomberg Interactive Broker Studio along with doctor Steve Skankey, chief economic advisor of at kill Point. As we mentioned, former staff member at the US Treasury and the White House National Security Council, joining us on zoom in Mexico, you're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App, or watch us live on YouTube. AMD, which is down, continues to be down about four percent in the aftermarket following its earnings. By the way, their chips have been used in the automotive world as well as Tesla's, so we want to talk about AMD, We want to talk about Tesla, and we also want to talk about it another ev maker, carmaker Stilantis. I'm trying to roll it all together and I'm going to toss it over to our Ed Ludlow, who is co host of Bloomberg Technology on Bloomberg TV because I'm going to throw it all at you. But let's start with AMD. I know there's a lot on your plate. This is our weekly look at the world of evs. We call it Bloomberg plugged in. But let's start with AMD, which is down in the aftermarket. What jumps out for you, Ed, Yeah, it's just a mixture of disappointment. Right. If you go to their forecast for the fourth quarter, the revenue range is five point eight to six point four billion dollars. The street wanted to c six six point four billion dollars, so the mid range point is kind of disappointing. But the biggest story here is that they're not seeing the PC recovery that Intel saw. They make GPUs that go into gaming consoles and high end gaming pieces and are warning us that slowing down. And even though they told us that they're super special AI accelerated chips I three hundred are on track to go into production and ship in the final three months of this year, there's kind of no tangible boost from that. Right, It's not going to book a substantive revenue until the beginning of next year, and it will take them time to catch up with Nvidio in the H one hundred. So it's a bit of a mixed bag, which is never really what you want in earnings. But the market's a little disappointed in shares of AMD. We're actually up more than fifty percent heading into this report. How much of this also when you have another stock that may have gotten ahead of itself after last year's sell off and chip names, does this make sense for some investors? Well, this is part of the story. You know. The data center business was a disappointment last quarter. A missed estimates, so they have a data center business that isn't yet reflecting the opportunity of AI. They're the number two PC processor maker behind Intel, and Intel gave us really promising glimpse that maybe that market is recovering and when all told is at the end of twenty twenty three, shipments will look better when we get them. AMD's results don't really reflect that. And as I said, we're excited about the mi I three hundred AI accelerator, but it's some way off still showing up up in the financial results. Yeah, it's pretty fascinating. If you're sitting down with the CEO, what would you ask them or ask yeah, or at least i'd ask yeah, I'd ask what evidence do you have that you can continue at such a click that the mi I three hundred will gain traction in the market that the H one hundred. Did you know, all of the CEOs these chip companies say that we're just at the very beginning of this AI thing. There's going to be demand for all kinds of chips, all kinds of GPUs. Well, if that's the case, give me some data what the next twelve months looks like and how many of these you think you'll sell? And most importantly to who, Yeah, it's interesting to you to go down the revenue line. If you look at our des page right, like, I mean, gaming is important, client, you know, areas important, Data centers are important. I mean you're talking about, you know, over six billion revenue for each of those. So these are areas that they really want to be kind of you know, firing on all cylinders if you will correct and you kind of get this mixed bag. And it's in the history of both AMD and NVIDIA. The GPU graphics processing unit has its origins in video games. Right. It…

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Culture Wars Have American Parents Opting for Home-Schooling Oct 31, 2023

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Bloomberg Businessweek Editor Joel Weber and Businessweek Freelance Contributor Charley Locke explain how in states where conservatives have overhauled curricula, parents on the other side of the political spectrum are taking their kids out of school. Malaika Jabali, Senior News and Politics Editor at Essence Magazine, talks about her book It's Not You, It's Capitalism: Why It's Time to Break Up and How to Move On.
Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.

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The Big Bond Market Event Wednesday Is at Treasury, Not the Fed Oct 30, 2023

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Bloomberg News Chief Correspondent for Global Macro Markets Liz McCormick explains why the Federal Reserve’s policy statement is setting up to be the No. 2 event on Wednesday, with investor focus instead likely to be on the Treasury Department’s new borrowing plan, due hours ahead of the interest-rate decision. Bloomberg News Personal Finance Reporter Claire Ballentine talks about how the Fed’s fight against inflation is rattling middle-class Americans. Enterprise Holding CEO Chrissy Taylor discusses the car rental provider rebranding as Enterprise Mobility. And we Drive to the Close with Max Wasserman, Founder and Senior Portfolio Manager at Miramar Capital.
Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.

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The Women Who Fought to Become CIA Operatives Oct 30, 2023

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Journalist and Author Liza Mundy discusses her book The Sisterhood: The Secret History of Women at the CIA.
Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.

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Bloomberg Businessweek Weekend - October 27th, 2023 Oct 27, 2023

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Featuring some of our favorite conversations of the week from our daily radio show "Bloomberg Businessweek."
Hosted by Carol Massar and Tim Stenovec

Hear the show live at 3PM ET on WBBR 1130 AM New York, Bloomberg 106.1 FM Boston, Bloomberg 960 AM San Francisco, WDCH 99.1 FM in Washington D.C. Metro, Sirius/XM channel 119, on the Bloomberg Business App, Radio.com, the iHeartRadio app and at Bloomberg.com/audio.

You can also watch Bloomberg Businessweek on YouTube - just search for Bloomberg Global News.

Like us at Bloomberg Radio on Facebook and follow us on Twitter @carolmassar @timsteno and @BW

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Amazon Rises as AWS Unit Shows Signs of Stabilizing Oct 27, 2023

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Bloomberg Intelligence Senior Analyst for E-Commerce Poonam Goyal discusses Amazon posting robust sales and profit growth as they indicated that its cloud unit is regaining momentum. Terrence Yang, Managing Director at Swan Bitcoin, shares his thoughts on Sam Bankman-Fried testifying at FTX fraud trial. Bloomberg Businessweek Editor Joel Weber and Bloomberg News Social Media Reporter Aisha Counts provide the details Aisha's Businessweek story Elon Musk’s Year of Owning X Made a Mess of Twitter’s Business. And we Drive to the Close with Eric Clark, Portfolio Manager at Rational Dynamic Brands Fund. Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan. FULL TRANSCRIPT: This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus gloom O Business Finance and tech news the Bloomberg Business Week Podcast with Carol Messer and Tim Stenebek from Bloomberg Radio. Just all right, folks, were staying with the markets, and actually really two particular names, because as we just talked about, we've got stocks near their lows, some nervousness, the S and P ten percent down from its peak in July. But if you look at something like an Amazon, which makes up about five and a half percent of the Nasdaq one hundred, nearly three point four percent of the S and P five hundred earlier, helping send stocks hire in the session, you've got Amazon really rallying in a big way and holding on to tim most of its gains today yep, seven percent as we speak, help sending stocks overall higher at least earlier. In this from Carol, although the broader market has slipped since then. Intel is also higher on the day today. The company in the midst of attempted to turn around, in which the CEO Pat Gelsinger commented on saying the chipmaker is quote clearly coming back. We're gonna spend this time right now taking a look at both of these two very closely washed companies in the tech world. Let's start with Amazon. Let's do that and with us right now is Punam Goyle. She is Bloomberg Intelligence Senior analyst for e commerce at Leisure, off Price Retail on Zoom from New Jersey. Punham, I'm so glad we have you here. As we always do when we want to talk to Amazon, you focus on the retail side of this company, but to be fair, you look at it holistically. What was the impressive or what impressed you about the earnings and the color on the business when it comes to Amazon. Yes, thanks Carol. So there were really two things. You know, Amazon has two really big businesses. One is the cloud business and one is the retail business. And let's start with the retail business. I think the retail business it particularly well built. On the one PE and three P side. Sales are much stronger than expect did and that's a really good sign going into holidays, because we know that the consumers are clearly stretched for their dollars, but they're finding value in Amazon. Amazon's able to push this value again to them through crime days and deal days that they'll have I think throughout the Christmas season with Black Friday, Cyber Monday, etc. So we think that's good going into holiday. And then on the AWUS side, the fact that they were more optimistic than their peers on the cloud business thing strength with stabilization was really encouraging to hear on the call, and we are very positive on the cloud business longer term. The margins there thirty percent plus were obviously nice to see too, and we do think that cloud business in the longer term with scale will be over forty percent. So put them Why did sales for AWS just missed expectations? And I was a little confused by this move yesterday I said it on air. I thought AWS was kind of everything, and that's you know what either it beat or missed was what moved the company's stock. Why are you optimistic and why are investors still pushing shares higher even if there was that miss on APUs? I mean, I guess it depends on how you look at this, right, So twelve percent versus the twelve point four percent estimate, in my eyes, isn't really a bigness it was in line with what they did last quarter, meaning the second quarter. So the twelve percent gains relative to what we heard at both Google and Microsoft wasn't that bad. And I think really the icing on the cake here is on the call when Andy Jazzy came on and he spoke about how that they're seeing stabilization from those trends even into the fourth quarter. I think that was just really encouraging. We all know that spending will pick up in a matter of time. Businesses have to move towards integrating more cloud into their network as well as they need to spend more on AI. So Amazon is very well positioned for AWS growth in the longer turn. And the fact that they are stabilizing was good news to us and I think that's how the market received it too. Can you make the Amazon Ai connection here? I think a lot of people might not be familiar with why you know boush and AI will help AWS. Yeah, so boost and AI helps not only a WS, but it also helps the retail text business. So when you think about what AI does, it basically helps build the models and interpret data and models for businesses. So the fact that AWI can lean on new AI technologies and embed that into its infrastructure. It's going to help companies use that and leverage that in their own businesses. The retails side, oh keep going, no, no, no, keep going, keep going. On the retail side, you know, AI has been doing phenomenal things, especially generative AI, where it's helping you predict demand, it's helping you streamline inventory, and it's helping you personalize, which is describing conversion higher and industry that typically, especially online, it's very low conversion rates. So does it make sense that I always think about, you know, when we first learned about AWS and they start breaking it out right because of all the streaming that was going on, and you're like, I don't really care who supplies the content. We're just making sure we have the pipe to get it to you basically, right, And that's what AWS was just so involved in the early days. Is that kind of akin to with AI that people are going to need the infrastructure, the backbone, and are they going to be involved in that part. So it's software, right, So AI basically it's software that's powered through AWUS and that they're integrating and embedding into the cloud platform. So as businesses need to become more agile and move on to the cloud. AI can only be done on the cloud, so you need that, you need that support. And for businesses that don't have it, which money don't, they will need to either tap into Amazon, Awus or Google or Microsoft in one of them. But keep in mind Amazon is the largest cloud rider of the thirty. All right, good stuff, as always, so appreciated, Have a great week and put them Goil Bloomberg Intelligence, Senior analyst for e Commerce at leisure and off price Retail on zoom from New Jersey. You're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App, or watch us live on YouTube. Well going on in the world of crypto this week Sam Bakman freed testifying at his own fraud trial. He says a lot of people got hurt over FTX, so that he's not entirely sure about the FTX. Alameda Fund flows. Alameda, of course, is the hedge fund, and then there's also the actual crypto market. Carol Bitcoin enjoying a solid week up roughly twelve percent, and you know you got you got to kind of throw that number out there with six two thousand one. Oops, that was Yeah, that was the past. You gotta throw that number out there with the understanding that it trades twenty four to seven. So if you say that number and you know you gotta, you ought to always be looking at it. It's all happening amid hopes of fresh demand from the possible approval in coming weeks of the first US ETF investing directly in bitcoin. Gotta tell you, we got a live blog that's tracking the testimony and what's going on in the courthouse today. Let's get to it though. We've got our weekly check on the world of crypto. We have with us Terrence Yang, managing director of Fintech, Law, Tech Privacy at Swan Bitcoin. It's a platform that allows people to buy bitcoin, including in iras, and he is joining us on Zoom from Los Angeles, California. Terran's nice to have you here with us. I feel like the world of crypto is focused and maybe rightfully so, on what's going on with SBF and FTX. What about the trial and the testimony are you watching very closely? And maybe what it means potentially for the crypto world going forward. I am watching closely. Great to see again, Carol. Bottom line, I think a couple of things. Defense finally present their case. When they do the cross examinations right, it's usually to create doubt about the credibility of the prosecution witnesses. It is not to present their case. And now they're doing that. I think Sam got very lucky and the defense countcil got very lucky to have sort of this mock trial profit yesterday with a judge, and now Sam seems to be doing a better job. He has a tendency to me under, but he's getting the point across. Do you know him, Terrence, You're you're kind of you're talking to You're using his first name and whereas a lot of people you know use his initials. Do you know Sam Bankman freed? No? No, I do not. But how are you following the trial? I follow through X They have a lot of goods, good information, but also at Bloomberg dot com and some other sites. I agree about Bloomberg dot com. There's some great stuff there. Our lifelog is really really good. Now I'm just curious because it's you know, we we're not getting We have to rely on you know, reporting from there, whereas in so many other instances we can actually watch live feeds from what's going on in the courtroom, and you know, we rely on court sketches and impressions Carol from our reporters who are there. So it's you know, it's a different experience I think for people who are observing you don't you know, you don't necessarily see the way he's feeling, at least according to our own interpretations. So talk more about about what you're seeing and what you're reading from the trial. Terrence. Yeah, sure, So based on what I'm reading and seeing, the defense is presenting a case since presenting the case that Caroline is basically the one to plane did not hedge he had doubts about her abilities right, and its thinking of shutting down Alameda and other things. So you just need really one juror to get a hung jury. One jur who thinks there's reasonable doubt does not cave. So someone who's a little bit strong minded, because it would be eleven to one. But that can happen, and then on retrial, what might happen with the black rock and fidelity ATF's happening. Arguably, we're in a bull market FTX with John Ray, who's excellent in my opinion, at this sort of thing, clawing back assets, maybe doing a turnaround and so forth. You could have a situation where maybe people don't care as much because, for example, the investment anthropic and other things mean that everybody gets paid, or at least the FTX investors get paid whole kind of cents on the dollar that's possible by the time they retry, and so that might be how he gets off. See it as kind of a two step process, just because there's so much evidence against him. Terrence. What's productive though for the crypto industry here in terms of the outcome of this trial specifically, so I part ways with my crypto friends, some of them are friends with in real life even today, but I am bitcoin only and I think that there needs to be and there will be massive cleanup in crypto. You see that with Senator Lummis and others kind of asking the government to the DOJ to the side kind of get off the block or not and just issue indictments or make a decision on CZ and finance. But also tether I think Tether's okay, but I don't want to get into that. I think the main point is we have massive tailwinds for bitcoin because of Blackrock, Fidelity and two other trillion dollar plus asset managers all applying for a spotpitcoin ETF and that looks like it's going well. On the other hand, you have crypto which has destroyed many Americans, especially poor and middle class, of their life savings through these pump and dumps, these digital penny stops, that these casinos are basically underregulated, casinos are basically shilling on the American public, and that does not looks so good. I think that's less promising because of all the securities violations and allegedly crimes against committed by SBF potentially as cz in Binance will see a fee. Actually, are you worried about the implications of people changing the way they're thinking about crypto because of SBF and other people who are in the crosshairs of law enforcement Terance that people are saying, Okay, I'm just gonna throw in the towel, because well, look look at the performance and two sure and two look at the people who we thought were reputable. I mean, they named stadiums and had Super Bowl ads. I am not. The reason is because I'm a long term believer in bitcoin. I think five to ten decades out bitcoin should be very valuable. There are other threats to it, with Finsen and other things that the government's doing that's not good. It's under reported for now. I'm sure Bloomberg will fix that and others. But bottom line, I'm not worried because look, there's been a mess, was a massive bubble in twenty twenty one and crypto and bitcoin and the fallout from the bear market and the destruction, and there needs to be a cleanup. I think it's really naive to think that, you know, this is bad for bitcoin, because bitcoin has enduring values and it doesn't have a CEO. It's not a security Hey, terms, forgive me for jumping in. We've just got a couple of minutes left here. But I'm thinking, you know, there might be people listening or watching are broadcast right now listening to you and say, yeah, I get it that there needs to be a cleaning out. That makes sense, right. We certainly saw that in the Internet, you know, in dot com bust, right, there were some things that really made sense and there are a lot of things that didn't. Having said that, you know, you're at SWAN Bitcoin and you're of course going to say bitcoin is the one to follow, and that has legs here. So what would you say to somebody like that that you're basically forgive me, for lack of better words, talking your book. No, no, I am talking my book. I think you do want people to talk their book and reveal it and explain it. I used to be in crypto. I was retired when Corey Klipston, our wonderful founder and CEO, pulled me like made a job offer to come out of retirement. So a lot of time, you're two younger. I was paid on Wall Street. I'm older than I look, and I was overpaid on Wall Street. And I was living frugally taking care of my aging parents. But anyway, so bottom line, I would say at SWON, we have people on a mission to help other people get bitcoin before Wall Street and government supply on the bitcoin. If we're right, and I think we are, that this is the ultimate hard money asset for the future because it's digital, it's bare, it's very hard to stop, very hard to confiscate and take away and incredibly finite at only twenty one million bitcoin. So in my view, it's okay to be hav…

Full show notes at the publisher

Day Two at Schwab Impact in Philadelphia Oct 27, 2023

Show notes

Jeffrey Kleintop, Chief Global Investment Strategist at Charles Schwab & Co, discusses finding opportunities outside the US. Chloe Berry, Head of Infrastructure Income Strategy at Brookfield Asset Management, shares her thoughts on the “3 Ds” of infrastructure; deglobalization, decarbonization and digitization. David Botset, Head of Equity Product Management at Schwab Asset Management, provides the details of Schwab’s ETFs and Beyond study. Kevin Gordon, Senior Investment Strategist at Charles Schwab & Co, explains why the biggest risk for the market is its deteriorating breadth profile. Manju Boraiah, Head of Custom SMA Investments at Allspring Global Investments, makes the case for separately managed accounts as an investment vehicle.
Hosts: Carol Massar and Tim Stenovec. Producer: Paul Brennan.

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