Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business Week Daily reporting from the magazine that helps global leaders stay ahead with insights on the people, companies, and trends shaping today's complex economy. Plus global business, finance and tech news as it happens the Bloomberg Business Week Daily Podcast with Carol Masser and Tim Stenebeck on Bloomberg Radio.

Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business Week Daily reporting from the magazine that helps global leaders stay ahead with insights on the people, companies, and trends shaping today's complex economy. Plus global business, finance and tech news as it happens the Bloomberg Business Week Daily Podcast with Carol Masser and Tim Stenebeck on Bloomberg Radio.

As we saw with some of the last earnings, including Apple and Amazon, tariffs are definitely making their mark on many industries. We've talked about that a lot over the last couple of hours, none more though perhaps so than the auto industry, as we've reported on a lot as well here at Bloomberg, and as Bloomberg's Hannah Elliott writes in this week's Pursuits newsletter, quote, confusion and chaos have rained since President Trump signed a proclamation on March twenty six to implement a twenty five percent terrify autos and parts imported into the United States. So what's a global auto maker to do? Kind of looked into it. She is Bloomberg Pursuit's autocommist co host of the Hot Pursuit podcast. It can be found on the Bloomberg at Bloomberg dot com and wherever you get your podcast. She joins us from LA kinda great to have you here with Emily and me Big Picture if we can just start there and then we'll dig into the newsletter. But it all kind of relates when you have conversations with global automakers. How are they continuing to think about the tariffs, the global tariffs, how they're managing and how they continue to think about their global supply chains and sailing in the US.

As we saw with some of the last earnings, including Apple and Amazon, tariffs are definitely making their mark on many industries. We've talked about that a lot over the last couple of hours, none more though perhaps so than the auto industry, as we've reported on a lot as well here at Bloomberg, and as Bloomberg's Hannah Elliott writes in this week's Pursuits newsletter, quote, confusion and chaos have rained since President Trump signed a proclamation on March twenty six to implement a twenty five percent terrify autos and parts imported into the United States. So what's a global auto maker to do? Kind of looked into it. She is Bloomberg Pursuit's autocommist co host of the Hot Pursuit podcast. It can be found on the Bloomberg at Bloomberg dot com and wherever you get your podcast. She joins us from LA kinda great to have you here with Emily and me Big Picture if we can just start there and then we'll dig into the newsletter. But it all kind of relates when you have conversations with global automakers. How are they continuing to think about the tariffs, the global tariffs, how they're managing and how they continue to think about their global supply chains and sailing in the US.

Yeah, it's been really interesting, and like we've talked about before, it seems like each automaker is doing something slightly different. I'll give you an example. Mercedes just announced this week that they are going to actually be moving production of one of their core segment vehicles. We don't know which one yet, but they will be moving production of.

Yeah, it's been really interesting, and like we've talked about before, it seems like each automaker is doing something slightly different. I'll give you an example. Mercedes just announced this week that they are going to actually be moving production of one of their core segment vehicles. We don't know which one yet, but they will be moving production of.

That vehicle into the US. So this is how they are coping.

That vehicle into the US. So this is how they are coping.

They're just saying, basically, all right, if we're gonna be taxed on vehicles we import, we're gonna start making more vehicles in the US.

They're just saying, basically, all right, if we're gonna be taxed on vehicles we import, we're gonna start making more vehicles in the US.

So that is one example.

So that is one example.

Ferrari, as we've talked about, has just said we're gonna have a ten percent across the board increase in prices. Let's be honest, probably not a lot of Ferrari owners are going.

Ferrari, as we've talked about, has just said we're gonna have a ten percent across the board increase in prices. Let's be honest, probably not a lot of Ferrari owners are going.

To bat any at that.

To bat any at that.

In fact, maybe it makes the cars even more desirable. Asin Martin for instance, has said they're going to stop importing new cars for the moment, put a pause on it and see how this all shakes out. So again, it's like case by case by case. The main thing that I hear that everybody is saying is just it's very, very difficult to plan when you don't know what the target is. They would like some consistency and a target that doesn't move, and the target.

In fact, maybe it makes the cars even more desirable. Asin Martin for instance, has said they're going to stop importing new cars for the moment, put a pause on it and see how this all shakes out. So again, it's like case by case by case. The main thing that I hear that everybody is saying is just it's very, very difficult to plan when you don't know what the target is. They would like some consistency and a target that doesn't move, and the target.

Is still moving, which makes it difficult to.

Is still moving, which makes it difficult to.

Plan well, but it sounds like Mercedes is at least planning a little bit. Do you do you know any more details about just kind of like how they're gonna do this, because are they gonna build a new factory and they still have I'm assuming many many different car parts that are all going to go into this vehicle. It it just sounds like a lot of not to have a pun here, but a lot of moving parts.

Plan well, but it sounds like Mercedes is at least planning a little bit. Do you do you know any more details about just kind of like how they're gonna do this, because are they gonna build a new factory and they still have I'm assuming many many different car parts that are all going to go into this vehicle. It it just sounds like a lot of not to have a pun here, but a lot of moving parts.

That's a great question, Emily.

That's a great question, Emily.

The good thing that Mercedes has going for is it already is established in the US as a major major builder. Mercedes has been here for decades. They've got a factory in the South. They have over eleven thousand employees that are US workers, plus four hundred suppliers or so, all in the US. So this is not as necessarily a heavy lift as if they had nothing and then they're just going to decide we're going to build a new factory and do all these things.

The good thing that Mercedes has going for is it already is established in the US as a major major builder. Mercedes has been here for decades. They've got a factory in the South. They have over eleven thousand employees that are US workers, plus four hundred suppliers or so, all in the US. So this is not as necessarily a heavy lift as if they had nothing and then they're just going to decide we're going to build a new factory and do all these things.

They're very firmly established.

They're very firmly established.

In fact, what Ola Collinius told me about a month ago when I was with him in Rome is that they consider themselves an American company. And I know that sounds a little bit weird, but considering how long they've been in the US and how many Americans they employ, Ola was really making the case that, hey, we are an American company. Let's not forget even a company like Tesla, which does have factories in California and Texas, also has a big factory in China. So you kind of get into this question of what is really American.

In fact, what Ola Collinius told me about a month ago when I was with him in Rome is that they consider themselves an American company. And I know that sounds a little bit weird, but considering how long they've been in the US and how many Americans they employ, Ola was really making the case that, hey, we are an American company. Let's not forget even a company like Tesla, which does have factories in California and Texas, also has a big factory in China. So you kind of get into this question of what is really American.

It's a bit of a gray area when you start.

It's a bit of a gray area when you start.

Really counting components and imports and production and all of that.

Really counting components and imports and production and all of that.

Now, I was kind of impressed by those numbers. I didn't realize how first of all, how long Hannah, and how much that they were doing. I knew they did some, but I didn't realize so much the presence. So they can really say made in America completely.

Now, I was kind of impressed by those numbers. I didn't realize how first of all, how long Hannah, and how much that they were doing. I knew they did some, but I didn't realize so much the presence. So they can really say made in America completely.

BMW's in the same position.

BMW's in the same position.

They've got literally, I believe eleven thousand workers in the US. Their plant in Spartanburg has been there for years. They really are part of the fabric, especially in the South, providing a lot of American jobs. So their argument is, hey, why are we being penalized as if we are not putting things back into the country.

They've got literally, I believe eleven thousand workers in the US. Their plant in Spartanburg has been there for years. They really are part of the fabric, especially in the South, providing a lot of American jobs. So their argument is, hey, why are we being penalized as if we are not putting things back into the country.

Okay, tell us about what's happening in Miami this weekend. I don't think you're going, but you know the plans.

Okay, tell us about what's happening in Miami this weekend. I don't think you're going, but you know the plans.

I know the plan I am this year.

I know the plan I am this year.

I am not going, but of course, this is year four of Formula one in Miami.

I am not going, but of course, this is year four of Formula one in Miami.

It's funny you should mention it.

It's funny you should mention it.

Just this week we spoke with Allie Berriman, who's the driver for Hawes. He's nineteen years old. This is his first year in Formula one. Clause, of course, is an American team. He's racing in Miami this weekend.

Just this week we spoke with Allie Berriman, who's the driver for Hawes. He's nineteen years old. This is his first year in Formula one. Clause, of course, is an American team. He's racing in Miami this weekend.

It's going to.

It's going to.

Be a really big deal because I just saw that they have extended the deal to keep the race in Miami for until twenty forty one. So we're gonna be in Miami for a while. And the parties.

Be a really big deal because I just saw that they have extended the deal to keep the race in Miami for until twenty forty one. So we're gonna be in Miami for a while. And the parties.

Look really extreme.

Look really extreme.

I just saw they've got Tso DJing too, so it's gonna be a big weekend.

I just saw they've got Tso DJing too, so it's gonna be a big weekend.

It's quite an event, right, no doubt about it. Hey, listen before you go. In the newsletter, you also talk about what you've been loving lately. It's actually in our backyard. It's in Brooklyn.

It's quite an event, right, no doubt about it. Hey, listen before you go. In the newsletter, you also talk about what you've been loving lately. It's actually in our backyard. It's in Brooklyn.

Oh, Wheels of New York.

Oh, Wheels of New York.

This has been This is my favorite car show that I've been to in a year at least.

This has been This is my favorite car show that I've been to in a year at least.

It was so cool.

It was so cool.

It's Wheels of NYC is the Instagram handle. It was a car show of vintage cars, everything from Ferraris to like Grand Nationals like Kendrick Lamar loves the Porsche's to Rolls Royces, and the vibes were good and it was in the Brooklyn Navy Yard.

It's Wheels of NYC is the Instagram handle. It was a car show of vintage cars, everything from Ferraris to like Grand Nationals like Kendrick Lamar loves the Porsche's to Rolls Royces, and the vibes were good and it was in the Brooklyn Navy Yard.

I just had the best time. I loved.

I just had the best time. I loved.

I highly recommend anyone going. They're gonna have another one pretty soon.

I highly recommend anyone going. They're gonna have another one pretty soon.

So it's not a show that I've heard about it. I mean it's been around for a while. No, it's new.

So it's not a show that I've heard about it. I mean it's been around for a while. No, it's new.

No, it's new, it's niche. This is not a big established This is like a very grassroots organic it's not corporate. It's just people who love cars. And I just love that it was all ages, all races, all different types of people and styles, and everyone was just happy. It felt like a little slice of heaven. It was really great.

No, it's new, it's niche. This is not a big established This is like a very grassroots organic it's not corporate. It's just people who love cars. And I just love that it was all ages, all races, all different types of people and styles, and everyone was just happy. It felt like a little slice of heaven. It was really great.

Okay, very quickly you got an email from Porsche. It was a mysterious note they're building this. Well, this picture that you have in the newsletter, I don't know if it's it's a makeup, if it's AI, or it's a real car.

Okay, very quickly you got an email from Porsche. It was a mysterious note they're building this. Well, this picture that you have in the newsletter, I don't know if it's it's a makeup, if it's AI, or it's a real car.

Yeah, it looks crazy.

Yeah, it looks crazy.

Porscha likes to tease us with these special projects that they have.

Porscha likes to tease us with these special projects that they have.

The short of it is this.

The short of it is this.

The Portcha nine seventeen is a very famous race car. They actually made one that was legal for the street, and Porscha has has sort of teased us, teased us with a picture of the car and then sort of saying, something's happening in June. Now we all know, as you know that Lemon, this big endurance race happens in June, so it's kind of like, are they going to be bringing a car back to race? You know, are they making a new one? We don't really know, but I think it could be something road legal that we might see in June.

The Portcha nine seventeen is a very famous race car. They actually made one that was legal for the street, and Porscha has has sort of teased us, teased us with a picture of the car and then sort of saying, something's happening in June. Now we all know, as you know that Lemon, this big endurance race happens in June, so it's kind of like, are they going to be bringing a car back to race? You know, are they making a new one? We don't really know, but I think it could be something road legal that we might see in June.

So stay tuned.

So stay tuned.

Such cool stuff and it's all in the newsletter that you can check it out. Hannah, thank you so much. Have a good weekend. Bloomberg Pursued Auto columnist, cohost of the Hot Pursuit podcast.

Such cool stuff and it's all in the newsletter that you can check it out. Hannah, thank you so much. Have a good weekend. Bloomberg Pursued Auto columnist, cohost of the Hot Pursuit podcast.

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Hey, folks, we're going to stay with supply chains. We've got someone who's been following, studying, talking about supply chains for more than two decades. We head to Florida, Sarah Barnes Humphrey. She's an entrepreneur and an influencer, as we mentioned, studying supply chains for a long time. She's founded the Let's Talk Supply Chain brand and podcast. She's also co founder and CEO of a bid and freight platform called ships Inc. And she joins us. Hey, Sarah, good to have you here. Before we get into the nitty gritty, tell us about your study of supply chains for the past two decades, because it's obviously a super timely topic today. But I don't know that everybody cared so much a few decades ago, maybe during the pandemic, but necessarily twenty years ago.

Hey, folks, we're going to stay with supply chains. We've got someone who's been following, studying, talking about supply chains for more than two decades. We head to Florida, Sarah Barnes Humphrey. She's an entrepreneur and an influencer, as we mentioned, studying supply chains for a long time. She's founded the Let's Talk Supply Chain brand and podcast. She's also co founder and CEO of a bid and freight platform called ships Inc. And she joins us. Hey, Sarah, good to have you here. Before we get into the nitty gritty, tell us about your study of supply chains for the past two decades, because it's obviously a super timely topic today. But I don't know that everybody cared so much a few decades ago, maybe during the pandemic, but necessarily twenty years ago.

Yeah, no, they definitely didn't. Thanks for having me on the show.

Yeah, no, they definitely didn't. Thanks for having me on the show.

So I've basically been talking about supply chain at the dinner table since I was nine.

So I've basically been talking about supply chain at the dinner table since I was nine.

My parents owned a logistics company.

My parents owned a logistics company.

And I worked in the family business operations and sales, and then ended up funding our media business, which is let's talk supply chain, so podcasts and live shows and all sorts of things.

And I worked in the family business operations and sales, and then ended up funding our media business, which is let's talk supply chain, so podcasts and live shows and all sorts of things.

Okay, so let's start high level. How are global supply chains looking in the here and now? There's a lot of fear about what.

Okay, so let's start high level. How are global supply chains looking in the here and now? There's a lot of fear about what.

Tariffs are going to do.

Tariffs are going to do.

But in the here and now, what are you seeing?

But in the here and now, what are you seeing?

Yeah, so I was at a conference last week and there was a lot of optimism. It was a breakball conference, but I do know there's a lot of uncertainty. There's a lot of supply chains being redesigned. I think the mindset is going from what are the challenges to what are the opportunities? How can we design our supply chains? What does that need to look like. Examples I've seen recently so Apple a couple of years ago, they moved their production or they're manufacturing some of it into India, and they did that because they wanted to use India as a new consumer market for them. And it's really paying off today because they're going to be able to produce iPhones in India and skirt some of the tariffs in China to be able to bring iPhones to the US as well. And there's a couple of other examples where you know, the electric vehicle maker Pollstar, they've paused their annual forecast and they're shifting manufacturing to the US and Europe, whereas Aston Martin is limiting exports to the US.

Yeah, so I was at a conference last week and there was a lot of optimism. It was a breakball conference, but I do know there's a lot of uncertainty. There's a lot of supply chains being redesigned. I think the mindset is going from what are the challenges to what are the opportunities? How can we design our supply chains? What does that need to look like. Examples I've seen recently so Apple a couple of years ago, they moved their production or they're manufacturing some of it into India, and they did that because they wanted to use India as a new consumer market for them. And it's really paying off today because they're going to be able to produce iPhones in India and skirt some of the tariffs in China to be able to bring iPhones to the US as well. And there's a couple of other examples where you know, the electric vehicle maker Pollstar, they've paused their annual forecast and they're shifting manufacturing to the US and Europe, whereas Aston Martin is limiting exports to the US.

So I think everybody's just sort.

So I think everybody's just sort.

Of taking a look at how do we want to spend our risk dollars, what does that look like, and what do we want to do right now?

Of taking a look at how do we want to spend our risk dollars, what does that look like, and what do we want to do right now?

Well, you know, I think about all the globalization everybody's been pushing to over the last few decades, like that was the way to go, go to the low cost producer, you know, go to the countries that could do it the best. It just kind of made a lot of sense. Do you think that's over?

Well, you know, I think about all the globalization everybody's been pushing to over the last few decades, like that was the way to go, go to the low cost producer, you know, go to the countries that could do it the best. It just kind of made a lot of sense. Do you think that's over?

No, I don't think it's over.

No, I don't think it's over.

I think people are waiting and seeing I think a lot of retailers were able to get product out before the tariffs hit. Some retailers are going to get hit with the new tariffs. But I think there's a lot of organizations that are pausing orders right now, which is a bit of a problem right because if we think about it, we're going into peak season, and peak season is where retailers and organizations are bringing in products for holiday season. So depending on how long this is going to go will determine whether they're going to turn on manufacturing again and whether they're going to order those products for holiday season. So we might not actually see some of the effects for another five to six months when people are starting to shop for holiday.

I think people are waiting and seeing I think a lot of retailers were able to get product out before the tariffs hit. Some retailers are going to get hit with the new tariffs. But I think there's a lot of organizations that are pausing orders right now, which is a bit of a problem right because if we think about it, we're going into peak season, and peak season is where retailers and organizations are bringing in products for holiday season. So depending on how long this is going to go will determine whether they're going to turn on manufacturing again and whether they're going to order those products for holiday season. So we might not actually see some of the effects for another five to six months when people are starting to shop for holiday.

How is shipping looking right now?

How is shipping looking right now?

Because there were a few analysts earlier in the week and even the week before who had started to fly shipping data that cargo shipments are slowing, and then that's going to mean that we're soon going to see shelves empty because trade is just going to stop. Are those fears overblown?

Because there were a few analysts earlier in the week and even the week before who had started to fly shipping data that cargo shipments are slowing, and then that's going to mean that we're soon going to see shelves empty because trade is just going to stop. Are those fears overblown?

No?

No?

I don't think so.

I don't think so.

The Port of Los Angeles came out with a stat that said that they're going to see a decline of thirty five percent, and they're also looking at every fourth vessel not stopping at the port, and so what's going to happen is not as much cargo is coming in, and so the shipping lines are actually going to start charging more.

The Port of Los Angeles came out with a stat that said that they're going to see a decline of thirty five percent, and they're also looking at every fourth vessel not stopping at the port, and so what's going to happen is not as much cargo is coming in, and so the shipping lines are actually going to start charging more.

For container shipping as well.

For container shipping as well.

So not only are we going to have higher costs for goods, but we're also going to have higher shipping costs on container shipping because those vessels, those steamship lines, they're not gonna want to lose money either.

So not only are we going to have higher costs for goods, but we're also going to have higher shipping costs on container shipping because those vessels, those steamship lines, they're not gonna want to lose money either.

You know. Do you think I don't know, I think about the negotiations between US and China or whether or not there really is any negotiations, right, I mean, do you think when all a said and done, that we're going to find more reasonable trade deals created and it will go back to kind of somewhat business as usual or no, things are going to change dramatically going forward.

You know. Do you think I don't know, I think about the negotiations between US and China or whether or not there really is any negotiations, right, I mean, do you think when all a said and done, that we're going to find more reasonable trade deals created and it will go back to kind of somewhat business as usual or no, things are going to change dramatically going forward.

So I'm not sure.

So I'm not sure.

I think at this point nobody really has a crystal ball for that. I mean, if we think about what has happened, do companies.

I think at this point nobody really has a crystal ball for that. I mean, if we think about what has happened, do companies.

Or do companies that you talk to or that you know, do they think it's going to go back to more of kind of business as usual, or they're not quite so sure.

Or do companies that you talk to or that you know, do they think it's going to go back to more of kind of business as usual, or they're not quite so sure.

They're not quite so sure right now either. I think everybody is sort of in a wait and see type mode at the moment with the changes that came in for Sheen and Timu today, you know, we're seeing eighty dollars shipments that now has close to sixty nine dollars in shipping and imports import charges. So these are the types of things that until it happens, we're not entirely sure how long it's going to stay and what that looks like, and so how do you plan for that? So a lot of forecasting and planning is really hard at the moment, and so supply chain teams have a lot on their plates right now.

They're not quite so sure right now either. I think everybody is sort of in a wait and see type mode at the moment with the changes that came in for Sheen and Timu today, you know, we're seeing eighty dollars shipments that now has close to sixty nine dollars in shipping and imports import charges. So these are the types of things that until it happens, we're not entirely sure how long it's going to stay and what that looks like, and so how do you plan for that? So a lot of forecasting and planning is really hard at the moment, and so supply chain teams have a lot on their plates right now.

I'm also wondering, you know, you talk about manufacturing, do you think this idea that you know, companies are going to be able to bring the manufacturing to the US build factories. Here is the supply chain in the US equipped to handle, you know, what could be an influx of a ton more domestic manufacturing very quickly.

I'm also wondering, you know, you talk about manufacturing, do you think this idea that you know, companies are going to be able to bring the manufacturing to the US build factories. Here is the supply chain in the US equipped to handle, you know, what could be an influx of a ton more domestic manufacturing very quickly.

Yeah, I think that's a great question, and I think there could be room for some I'm not sure we can do it all in the US. I think there's a number of different factors. There's some labor factors. I saw somebody the other day talking about how machinery into the US because of the tariffs might be more expensive as well.

Yeah, I think that's a great question, and I think there could be room for some I'm not sure we can do it all in the US. I think there's a number of different factors. There's some labor factors. I saw somebody the other day talking about how machinery into the US because of the tariffs might be more expensive as well.

So I'm not sure we can.

So I'm not sure we can.

Necessarily equip those facilities with the machinery that we need to manufacture either. And also, it takes a long time to be able to set up manufacturing in a new location. I mean, if you take that example of Apple that I mentioned earlier, it's taken them a couple of years to shift some of that manufacturing into India, and it's paying off today because of the tariffs, But at the end of the day, it's a really long term play. And a lot of people were moving to Mexico and now they're unsure how that actually fits into their manufacturing.

Necessarily equip those facilities with the machinery that we need to manufacture either. And also, it takes a long time to be able to set up manufacturing in a new location. I mean, if you take that example of Apple that I mentioned earlier, it's taken them a couple of years to shift some of that manufacturing into India, and it's paying off today because of the tariffs, But at the end of the day, it's a really long term play. And a lot of people were moving to Mexico and now they're unsure how that actually fits into their manufacturing.

Like Cadence as well.

Like Cadence as well.

That's what's fascinating Sarah and I think this is something that we talked about a lot after COVID. We would have just even architects or developers coming in and saying, you know where there's a lot of activity Mexico because people are moving operations to Mexico and coming off of COVID, we realized how vulnerable our supply chains really really were and that we wanted stuff closer to home. And so like that shift already started happening. I mean, what is going on behind the scenes. Even with Apple you mentioned India. We have talked with our mark German, who covers that company flawlessly and in depth, and you know, we've been having conversations how Apple was spreading out its supply chain but still so relying on China still is. But then bam, it was like, well, wait a minute, we can next year have all the iPhones that are needed in the United States come from India. So I feel like there's stuff that's been going on very quietly. What are you hearing about what companies are doing quietly as they continue to maybe spread their supply chain around.

That's what's fascinating Sarah and I think this is something that we talked about a lot after COVID. We would have just even architects or developers coming in and saying, you know where there's a lot of activity Mexico because people are moving operations to Mexico and coming off of COVID, we realized how vulnerable our supply chains really really were and that we wanted stuff closer to home. And so like that shift already started happening. I mean, what is going on behind the scenes. Even with Apple you mentioned India. We have talked with our mark German, who covers that company flawlessly and in depth, and you know, we've been having conversations how Apple was spreading out its supply chain but still so relying on China still is. But then bam, it was like, well, wait a minute, we can next year have all the iPhones that are needed in the United States come from India. So I feel like there's stuff that's been going on very quietly. What are you hearing about what companies are doing quietly as they continue to maybe spread their supply chain around.

Yeah.

Yeah.

Again, I think they're looking at the design of their supply chains. Where do I want to spend my risk dollars, Where can I actually source the components that I need to be able to create the products that I need. Just another mention on Apple, they looked at manufacturing the iPhone in the US and it would cost the US consumer thirty five hundred dollars, So there's a lot.

Again, I think they're looking at the design of their supply chains. Where do I want to spend my risk dollars, Where can I actually source the components that I need to be able to create the products that I need. Just another mention on Apple, they looked at manufacturing the iPhone in the US and it would cost the US consumer thirty five hundred dollars, So there's a lot.

Of on the phone. I mean fat in my household, and that's what almost ten thousand dollars. That's a lot, all.

Of on the phone. I mean fat in my household, and that's what almost ten thousand dollars. That's a lot, all.

Right, go ahead, Yeah, No, I just mean like there's it's different for different organizations, and supply chains look different across the board. And so for some manufacturing in the US makes sense, especially for medications and chips, for technology and things like that what you were talking about coming out of the pandemic. Those are the things we want to manufacture close to home. But for some organizations it really doesn't make any sense. Taking that Apple example, at thirty five hundred dollars for an iPhone, nobody's going to spend that kind of money. So I think it's a bit of a push pull. Everybody's having this discussion. They're looking at the design, Where can we source, where can we purchase, Where can we manufacture? What makes the most sense for us and for our customers.

Right, go ahead, Yeah, No, I just mean like there's it's different for different organizations, and supply chains look different across the board. And so for some manufacturing in the US makes sense, especially for medications and chips, for technology and things like that what you were talking about coming out of the pandemic. Those are the things we want to manufacture close to home. But for some organizations it really doesn't make any sense. Taking that Apple example, at thirty five hundred dollars for an iPhone, nobody's going to spend that kind of money. So I think it's a bit of a push pull. Everybody's having this discussion. They're looking at the design, Where can we source, where can we purchase, Where can we manufacture? What makes the most sense for us and for our customers.

Sarah, what are you seeing from small businesses? What are the particular challenges you know someone who's in the US is going to face if they're a small business.

Sarah, what are you seeing from small businesses? What are the particular challenges you know someone who's in the US is going to face if they're a small business.

Yeah, I think if they're a product based business, they're sort of rethinking what it is that they want their business to look like. I was recently reading an article about there was a bunch of small businesses that were sort of looking at the tariffs and saying, we want to be exempt from it.

Yeah, I think if they're a product based business, they're sort of rethinking what it is that they want their business to look like. I was recently reading an article about there was a bunch of small businesses that were sort of looking at the tariffs and saying, we want to be exempt from it.

And one of those.

And one of those.

Small business actually said they're going to pivot from products into services because that makes the most sense for.

Small business actually said they're going to pivot from products into services because that makes the most sense for.

Them right now.

Them right now.

And I think back to the pandemic and some small businesses pivoted what product they were actually selling and someone into hand sanitizer. So I feel like this is kind of a similar thing at the moment that small businesses were faced with during the pandemic.

And I think back to the pandemic and some small businesses pivoted what product they were actually selling and someone into hand sanitizer. So I feel like this is kind of a similar thing at the moment that small businesses were faced with during the pandemic.

All right, So when you kind of watched, like probably all of us, the news coming out of certainly the White House, and then just kind of what you are hearing from folks in terms of managing their own supply chains and what you're seeing, I don't know, how are you thinking about the next six months or so.

All right, So when you kind of watched, like probably all of us, the news coming out of certainly the White House, and then just kind of what you are hearing from folks in terms of managing their own supply chains and what you're seeing, I don't know, how are you thinking about the next six months or so.

I think that it's going to be very unpredictable. I think that it's extremely uncertain right now, and if retailers and organizations are pausing shipments at the moment, I don't think we're going to see the ripple effects for another five to six months, and I think we may see some challenges over the holiday season. I think organizations are sort of in a wait and see right And I just don't think that anybody has the answers right now until we figure out where those tariffs are going to land.

I think that it's going to be very unpredictable. I think that it's extremely uncertain right now, and if retailers and organizations are pausing shipments at the moment, I don't think we're going to see the ripple effects for another five to six months, and I think we may see some challenges over the holiday season. I think organizations are sort of in a wait and see right And I just don't think that anybody has the answers right now until we figure out where those tariffs are going to land.

Well and right, as you said, and we talked kind of kicked off in the two pm hour, talking with our Mike McKee, who follows the economy, and talking about the jobs report, and it looked like things at this point are doing pretty well. But the concern is when this data starts to hit, whether it's consumers. We've seen it in sentiment, but when it comes into the actuality of it, I am curious. Are you thinking a recession is likely too? From the conversations you're having in the pe you're talking to.

Well and right, as you said, and we talked kind of kicked off in the two pm hour, talking with our Mike McKee, who follows the economy, and talking about the jobs report, and it looked like things at this point are doing pretty well. But the concern is when this data starts to hit, whether it's consumers. We've seen it in sentiment, but when it comes into the actuality of it, I am curious. Are you thinking a recession is likely too? From the conversations you're having in the pe you're talking to.

I'm not sure.

I'm not sure.

Everybody's kind of all over the map. Some have said possibly, some are saying we might not. I think it's too early to tell, to be perfectly honest with you.

Everybody's kind of all over the map. Some have said possibly, some are saying we might not. I think it's too early to tell, to be perfectly honest with you.

Okay, yep, that's why we're on pins and needles. Not today. Everything seems awesome today. Good to leave it there. Hey, Sarah, thank you so much. Good to meet you and talk with you. Sarah Barnes Humphrey, founder of Let's Talk Supply Chain, joining us there from Florida.

Okay, yep, that's why we're on pins and needles. Not today. Everything seems awesome today. Good to leave it there. Hey, Sarah, thank you so much. Good to meet you and talk with you. Sarah Barnes Humphrey, founder of Let's Talk Supply Chain, joining us there from Florida.

This is the Bloomberg Business Week Daily Podcast. Listen live each weekday starting at two pm Eastern on Applecarplay and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just Say Alexa Play Bloomberg eleven thirty So.

This is the Bloomberg Business Week Daily Podcast. Listen live each weekday starting at two pm Eastern on Applecarplay and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just Say Alexa Play Bloomberg eleven thirty So.

We talked about last week Amazon and Apple, both noting kind of how their businesses were affected by tariff and trade policies. Amazon going so far to note that processionary fears and glob blackconomic and geopolitical conditions are in their forecast. Another company that's got a great read on the consumer's Wayfair. They reported earnings this week. They came in better than expected as consumers brought forward spending while suppliers are holding back from price increases. We caught up with Wayfair c FO Kate Gulliver. We talked to earning's business, the outlook and how the US consumer is doing.

We talked about last week Amazon and Apple, both noting kind of how their businesses were affected by tariff and trade policies. Amazon going so far to note that processionary fears and glob blackconomic and geopolitical conditions are in their forecast. Another company that's got a great read on the consumer's Wayfair. They reported earnings this week. They came in better than expected as consumers brought forward spending while suppliers are holding back from price increases. We caught up with Wayfair c FO Kate Gulliver. We talked to earning's business, the outlook and how the US consumer is doing.

To your point, we had significant pull forward in the category in the COVID time right, so in the sort of twenty twenty twenty twenty one time since then, the category has been down consistently since then. The category so that was actually below you know, starting to be below twenty nineteen levels.

To your point, we had significant pull forward in the category in the COVID time right, so in the sort of twenty twenty twenty twenty one time since then, the category has been down consistently since then. The category so that was actually below you know, starting to be below twenty nineteen levels.

Right, So we're.

Right, So we're.

Seeing a category that has historically been over the last few years quite depressed, which may be different than you know, some of the other consumer discretionary categories that the folks are referring to. That said, yes, it's absolutely an uncertain environment.

Seeing a category that has historically been over the last few years quite depressed, which may be different than you know, some of the other consumer discretionary categories that the folks are referring to. That said, yes, it's absolutely an uncertain environment.

All right, everybody take a shot, because every time we hear uncertain, I mean, that's it.

All right, everybody take a shot, because every time we hear uncertain, I mean, that's it.

Daked.

Daked.

That's the word of the year. I think I can safely say.

That's the word of the year. I think I can safely say.

Totally, totally. All right, that's wayfair.

Totally, totally. All right, that's wayfair.

CFO Kake Gulliver, Hey, let's get more into what CFOs are doing in this environment. The conversation she's been having with members of the CFO suite. Nina trentt menis senior editor a Bloomberg News author of CFO Briefing newsletter. You can find it at Bloomberg dot com slash CFO Dash Briefing. A new one comes out on Sunday.

CFO Kake Gulliver, Hey, let's get more into what CFOs are doing in this environment. The conversation she's been having with members of the CFO suite. Nina trentt menis senior editor a Bloomberg News author of CFO Briefing newsletter. You can find it at Bloomberg dot com slash CFO Dash Briefing. A new one comes out on Sunday.

How are you?

How are you?

Thank you? I'm good, that's good.

Thank you? I'm good, that's good.

Thanks for having me.

Thanks for having me.

Well, I'm curious the CFOs that you talked to how are they feeling, Are they good? Are they saying uncertainty or uncertain times a lot in conversations. What are you hearing?

Well, I'm curious the CFOs that you talked to how are they feeling, Are they good? Are they saying uncertainty or uncertain times a lot in conversations. What are you hearing?

Yeah, and certainly is probably the number one word, which sometimes is made harder by the fact that we aren't supposed to be writing it so often, given that, well what does this actually mean? And also we've heard it a lot during the pandemic? She mentioned it, and so the question is, of course, well, how do you navigate that? Of course we need to give CFOs also a bit of a pause, given that there's so many variables within their equations that they just don't have any information about tariffs being one of them. Way by sort of Yes, it's fair to say that times are very uncertain for CFOs right now.

Yeah, and certainly is probably the number one word, which sometimes is made harder by the fact that we aren't supposed to be writing it so often, given that, well what does this actually mean? And also we've heard it a lot during the pandemic? She mentioned it, and so the question is, of course, well, how do you navigate that? Of course we need to give CFOs also a bit of a pause, given that there's so many variables within their equations that they just don't have any information about tariffs being one of them. Way by sort of Yes, it's fair to say that times are very uncertain for CFOs right now.

You have these two variables, and of course they're related. The first is uncertainty again I say it about the kind of broader economy and the trade picture, and the second has to do with just the market volatility we've seen. How is that impacting the appetite for deal making among CFOs? I mean, going back to the campaign in the election, there was this promise of the deal market opening up and there was going to be a huge swell of them. Has it come to pass. Are deals getting done?

You have these two variables, and of course they're related. The first is uncertainty again I say it about the kind of broader economy and the trade picture, and the second has to do with just the market volatility we've seen. How is that impacting the appetite for deal making among CFOs? I mean, going back to the campaign in the election, there was this promise of the deal market opening up and there was going to be a huge swell of them. Has it come to pass. Are deals getting done?

Some deals are getting done, yes, but we haven't necessarily seen this huge rise or surgeon deals that people were expecting because the deregulation that people were hoping for so far hasn't really happened, and instead there has been a lot of stuff that is not necessarily very conducive to deals, terrors, volatility, market volatility, and so I think for certain deals, yes, they're still going through. For example, Counagar this week announced in a divestiture where they're selling one of their brands to a PE firm. So those deals get done, and I think they're assuming it's going to be done in the next few months, so not necessarily a big challenge for them. But I think then also we're seeing that some deals are sort of hitting the brakes. I know, deals involving China, involving other countries. So I think bilateral deals and even multinational deals are very tricky these days.

Some deals are getting done, yes, but we haven't necessarily seen this huge rise or surgeon deals that people were expecting because the deregulation that people were hoping for so far hasn't really happened, and instead there has been a lot of stuff that is not necessarily very conducive to deals, terrors, volatility, market volatility, and so I think for certain deals, yes, they're still going through. For example, Counagar this week announced in a divestiture where they're selling one of their brands to a PE firm. So those deals get done, and I think they're assuming it's going to be done in the next few months, so not necessarily a big challenge for them. But I think then also we're seeing that some deals are sort of hitting the brakes. I know, deals involving China, involving other countries. So I think bilateral deals and even multinational deals are very tricky these days.

Yeah, it's interesting. I feel like we've been all talking about especially the private equity guys, right the private world just waiting for the environment so they can kind of start selling stuff or things to go public. So that they can kind of either return money to investors and move on to new deals. Having said that, always love the different CEOs CFOs. Excuse me that you talk to different areas of our world. Tell us who you've been talking to. You mentioned Canagra, but who else have you been talking to and what they're saying?

Yeah, it's interesting. I feel like we've been all talking about especially the private equity guys, right the private world just waiting for the environment so they can kind of start selling stuff or things to go public. So that they can kind of either return money to investors and move on to new deals. Having said that, always love the different CEOs CFOs. Excuse me that you talk to different areas of our world. Tell us who you've been talking to. You mentioned Canagra, but who else have you been talking to and what they're saying?

Yeah, So this week we spoke to a few CFOs. Canago was one of them. Then we spoke to the CFO full Seam, which is a Swiss materials concrete stuff co create concrete maker.

Yeah, So this week we spoke to a few CFOs. Canago was one of them. Then we spoke to the CFO full Seam, which is a Swiss materials concrete stuff co create concrete maker.

Correct, it's like the core of right.

Correct, it's like the core of right.

And then also a few a few other CFOs, including SMP Global. Interestingly enough, those companies are amongst the companies that are saying, okay, well, actually yes, the environment is tricky, but still we want to pull ahead with with our deals. So Whole SAM is in the process of spinning off its US and North America business, something that had started a while ago, so it's not something that they triggered recently, but they're expecting that spin to to take effect in May or in June. And I asked them, well, are you going ahead with it? Isn't the market volatility a tricky thing given that you're planning a spin off. This involves to some degree markets have to be confusive. You don't want the use your your shares to sell off on the day that the spin takes effect, And they were saying, well, no, the strategic rationale still is very much true and wholes and therefore, yeah, we're we're pulling through with the deal and we're we're not necessarily pausing it. Interesting enough, they're also pointing out that the dynamics in their business in North America versus in Europe are very different, where they were saying, well, in North America we have a lot of construction spending, and in Europe we are focusing on decarbonization. For example, let's CO two heavy concrete, as you pointed out, So they were saying, basically, it makes a lot of sense for these businesses to be separate. And so they think to some degree that the tariff tensions that we're seeing right now and the divergence between the US and the rest of the world might actually be sort of like, to some degree a supporting factor for the spin off, which was interesting because my assumption was that they would be like, oh, yeah, well timing isn't great.

And then also a few a few other CFOs, including SMP Global. Interestingly enough, those companies are amongst the companies that are saying, okay, well, actually yes, the environment is tricky, but still we want to pull ahead with with our deals. So Whole SAM is in the process of spinning off its US and North America business, something that had started a while ago, so it's not something that they triggered recently, but they're expecting that spin to to take effect in May or in June. And I asked them, well, are you going ahead with it? Isn't the market volatility a tricky thing given that you're planning a spin off. This involves to some degree markets have to be confusive. You don't want the use your your shares to sell off on the day that the spin takes effect, And they were saying, well, no, the strategic rationale still is very much true and wholes and therefore, yeah, we're we're pulling through with the deal and we're we're not necessarily pausing it. Interesting enough, they're also pointing out that the dynamics in their business in North America versus in Europe are very different, where they were saying, well, in North America we have a lot of construction spending, and in Europe we are focusing on decarbonization. For example, let's CO two heavy concrete, as you pointed out, So they were saying, basically, it makes a lot of sense for these businesses to be separate. And so they think to some degree that the tariff tensions that we're seeing right now and the divergence between the US and the rest of the world might actually be sort of like, to some degree a supporting factor for the spin off, which was interesting because my assumption was that they would be like, oh, yeah, well timing isn't great.

I think it's funny right strategy sometimes or fundamentals still matter.

I think it's funny right strategy sometimes or fundamentals still matter.

Yeah, I'm curious in the minute we have left, how persuadable these CFOs are. So now you talk to folks at advisory firms as well, what's the message that they're conveying to CFO is just about whether or not to move forward with deals or to pause or to reconsider them.

Yeah, I'm curious in the minute we have left, how persuadable these CFOs are. So now you talk to folks at advisory firms as well, what's the message that they're conveying to CFO is just about whether or not to move forward with deals or to pause or to reconsider them.

Of course, advisory folks, to some degree always when they talk to us, they want to talk to the books. Some degree, what they tell CFOs is.

Of course, advisory folks, to some degree always when they talk to us, they want to talk to the books. Some degree, what they tell CFOs is.

Different than.

Different than.

Just kidding.

Just kidding.

But they've certainly told me that they have a lot in the pipeline, and they see a lot in the pipeline. I think what they are also telling their clients that they work with is that, well, you need to really do scenario analysis here, you need to sort of really work through Okay, well, what are your assumptions, what do you think is going to happen, and how will the deal work in a different environment, just mentioning tariffs for example, And so I think they were saying that select deals still go through, that it's a case by case basis, industry by industry basis. But yeah, I think they were all hoping for more certainty as well. I think not just the CFOs, but also the deal advisors for that.

But they've certainly told me that they have a lot in the pipeline, and they see a lot in the pipeline. I think what they are also telling their clients that they work with is that, well, you need to really do scenario analysis here, you need to sort of really work through Okay, well, what are your assumptions, what do you think is going to happen, and how will the deal work in a different environment, just mentioning tariffs for example, And so I think they were saying that select deals still go through, that it's a case by case basis, industry by industry basis. But yeah, I think they were all hoping for more certainty as well. I think not just the CFOs, but also the deal advisors for that.

That's what's kind of wild. I think in this environment are Diena, Marn't Adams too, just saying I don't think I've ever seen a company come out and give you two you know, earning scenarios could happen, this could happen this way here, possibly recessioned so then not so good things go back to normal. And I think it's just this scenario led environment. I think companies do it all the time, but this is like amped up in a big way.

That's what's kind of wild. I think in this environment are Diena, Marn't Adams too, just saying I don't think I've ever seen a company come out and give you two you know, earning scenarios could happen, this could happen this way here, possibly recessioned so then not so good things go back to normal. And I think it's just this scenario led environment. I think companies do it all the time, but this is like amped up in a big way.

Yeah, And also we're seeing sort of if you look at the guidance that companies are putting out right now, of course we've seen a fair amount of companies pulling guidance. All we all also.

Yeah, And also we're seeing sort of if you look at the guidance that companies are putting out right now, of course we've seen a fair amount of companies pulling guidance. All we all also.

See get like, okay, we can't give you an outlook, but when you give like a couple of scenarios as wild.

See get like, okay, we can't give you an outlook, but when you give like a couple of scenarios as wild.

Well, we've also been seeing, of course, companies widening their guidance, which then also gives them gives them more room to some degree. It's understandable then also if you look at it from the analyst perspective, like companies that withdraw their guidance, that's basically for any analyst. Very difficult to then work with in terms of factoring models. But figure out we're all coming to the same question of not knowing what's going to happen.

Well, we've also been seeing, of course, companies widening their guidance, which then also gives them gives them more room to some degree. It's understandable then also if you look at it from the analyst perspective, like companies that withdraw their guidance, that's basically for any analyst. Very difficult to then work with in terms of factoring models. But figure out we're all coming to the same question of not knowing what's going to happen.

Dare I say it uncertain? Take us away, everybody, Nina, thank you so much as always, Nina Trentman, Senior editor of Bloomberg News. Check out the CFO Briefing newsletter comes out on Sunday on the Bloomberg and at Bloomberg dot Com. How about you let me drive?

Dare I say it uncertain? Take us away, everybody, Nina, thank you so much as always, Nina Trentman, Senior editor of Bloomberg News. Check out the CFO Briefing newsletter comes out on Sunday on the Bloomberg and at Bloomberg dot Com. How about you let me drive?

Oh no, no, no no, this is not a toy's going to drive?

Oh no, no, no no, this is not a toy's going to drive?

Alright, please, I'll do the gravels. Let's wat I want to drive.

Alright, please, I'll do the gravels. Let's wat I want to drive.

It's good question. This is the Drive to the Clothes.

It's good question. This is the Drive to the Clothes.

Punster music, Well drivers on Bloomberg Radio.

Punster music, Well drivers on Bloomberg Radio.

All right, time now for Drive to the Clothes with Alexis Brown Roberts, COO at Alexis Investment partners with us from Montgomery, Texas, and she's joining.

All right, time now for Drive to the Clothes with Alexis Brown Roberts, COO at Alexis Investment partners with us from Montgomery, Texas, and she's joining.

Us right now.

Us right now.

When the S and P five hundred is on track for its longest streak of gains since two thousand and.

When the S and P five hundred is on track for its longest streak of gains since two thousand and.

Four, feels like a big deal.

Four, feels like a big deal.

It feels like a big deal. But let's see what Alexis thinks. Is this a sustainable bounce off of the lows or are these gains just going to reverse soon and then next week we're going to be talking about.

It feels like a big deal. But let's see what Alexis thinks. Is this a sustainable bounce off of the lows or are these gains just going to reverse soon and then next week we're going to be talking about.

Yeah, O, there's so much read exactly.

Yeah, O, there's so much read exactly.

Well, Hi, Carol and Emily. It's great to see you again, Carol, and it's nice to meet you know, thank you both for having me on. And that really a million dollar question right now, isn't It's what investors are all asking each other themselves. But we think it's sustainable. I mean, we came into this year expecting a very volatile but overall positive year, although admittedly a little bit of a different path. We thought we were going to be more positive in the front end and then have this volatility in the back end. Looks like we're flipping that around. But we do see this as being sustainable. I mean, earnings are still doing well and honestly, there's a lot of cash on the sidelines.

Well, Hi, Carol and Emily. It's great to see you again, Carol, and it's nice to meet you know, thank you both for having me on. And that really a million dollar question right now, isn't It's what investors are all asking each other themselves. But we think it's sustainable. I mean, we came into this year expecting a very volatile but overall positive year, although admittedly a little bit of a different path. We thought we were going to be more positive in the front end and then have this volatility in the back end. Looks like we're flipping that around. But we do see this as being sustainable. I mean, earnings are still doing well and honestly, there's a lot of cash on the sidelines.

And as I have to stop you because what's interesting is you say earning's going well. Amazon, Apple, massive companies, massive waitings in the s and P five hundred, the Nasdaq one hundred. We talked with our Eric Greener about this that it is unusual, especially Apple, you know, often so goes Apple, so goes the market, and that to see kind of broad based buying. But these two names down substantially because of the worries. The big worries that is that is really the overhang of the overall financial US market that's not odd to you.

And as I have to stop you because what's interesting is you say earning's going well. Amazon, Apple, massive companies, massive waitings in the s and P five hundred, the Nasdaq one hundred. We talked with our Eric Greener about this that it is unusual, especially Apple, you know, often so goes Apple, so goes the market, and that to see kind of broad based buying. But these two names down substantially because of the worries. The big worries that is that is really the overhang of the overall financial US market that's not odd to you.

And also that.

And also that.

Retail investors are really buying, but it's not necessarily the institutional guys. So like, how does that factor in too? You know, you're out like you're optimistic, but doesn't that kind of concern you a little bit?

Retail investors are really buying, but it's not necessarily the institutional guys. So like, how does that factor in too? You know, you're out like you're optimistic, but doesn't that kind of concern you a little bit?

Heay?

Heay?

There is their earnings were actually strong if you look at the numbers, they did well this past quarter. That they're concerning investors.

There is their earnings were actually strong if you look at the numbers, they did well this past quarter. That they're concerning investors.

It's a guidance right.

It's a guidance right.

Right, but since I mean we've been living with tariffs for two months now, so it has been since liberation Day as they like to call it. But the guidance going forward is really what's worrying investors. I mean, honestly, with the amount of uncertainty right now, why wouldn't CEOs be saying, hey, this is an uncertain environment and kind of trying to tamper down expectations. I think as investors, if we didn't hear we're taking a step back going hold out. Are you not seeing what's happening? So yes, absolutely there's uncertainty, there's reasons to be worried. But honestly, those names, they were beaten down a lot because they had just been the leaders so strong prior to this move. When you're looking at things like productivity AI, they're going to be good again and even more since then. We actually did buy into these bigger cap tech names once we had this pullback, because they had been valued much higher than they were now. And when you have an opportunity to buy these names at a more reasonable valuation, I mean you might as well at the end of the day. And VideA is going to do better than Coca Cola. Nothing against Coca Cola, but just their earnings potential is higher. And if you can get a more similar pe between a big tech name versus a stable's name life, I would rather do it. So that's my view on the tech names there. I think they've been beaten down. They're going to participate more in this recovery as we've been seeing tech has really been participating in this recovery. Now once we're fully recovered, when we see a broadening of leadership potential rotation of leadership, absolutely, and we're watching for that. But here we'd rather be owning those names, and we took the opportunity with this dip to add to those names in particular.

Right, but since I mean we've been living with tariffs for two months now, so it has been since liberation Day as they like to call it. But the guidance going forward is really what's worrying investors. I mean, honestly, with the amount of uncertainty right now, why wouldn't CEOs be saying, hey, this is an uncertain environment and kind of trying to tamper down expectations. I think as investors, if we didn't hear we're taking a step back going hold out. Are you not seeing what's happening? So yes, absolutely there's uncertainty, there's reasons to be worried. But honestly, those names, they were beaten down a lot because they had just been the leaders so strong prior to this move. When you're looking at things like productivity AI, they're going to be good again and even more since then. We actually did buy into these bigger cap tech names once we had this pullback, because they had been valued much higher than they were now. And when you have an opportunity to buy these names at a more reasonable valuation, I mean you might as well at the end of the day. And VideA is going to do better than Coca Cola. Nothing against Coca Cola, but just their earnings potential is higher. And if you can get a more similar pe between a big tech name versus a stable's name life, I would rather do it. So that's my view on the tech names there. I think they've been beaten down. They're going to participate more in this recovery as we've been seeing tech has really been participating in this recovery. Now once we're fully recovered, when we see a broadening of leadership potential rotation of leadership, absolutely, and we're watching for that. But here we'd rather be owning those names, and we took the opportunity with this dip to add to those names in particular.

Right, so, I see your overweight stocks, but you also said in your notes that you're still hedging with gold, and I'm wondering what risks you're hedging for and then what would have to happen for you to add more gold.

Right, so, I see your overweight stocks, but you also said in your notes that you're still hedging with gold, and I'm wondering what risks you're hedging for and then what would have to happen for you to add more gold.

Yeah, so we are overweight stocks as well as we do hold our largest position is in gold. Now that's still just under a ten percent positions about a nine percent position, And really that's an opportunistic diversification, I would call it. It's not like every time gold goes app stocks go down or vice versa. It really moves differently, and you see these large swaths of time where gold does really well and then swats of time where they go lousy as well. But right now is one of those times where we really do see gold as performing well. We originally bought it as an inflation hedge and that was a good decision on our part. Now we're really holding it as a more of a geopolitical risk hedge, not just from a geopolitics standpoint, but also from there's a lot of different moves being made all across the world from all the central banks, So also from a policy risk standpoint there as well.

Yeah, so we are overweight stocks as well as we do hold our largest position is in gold. Now that's still just under a ten percent positions about a nine percent position, And really that's an opportunistic diversification, I would call it. It's not like every time gold goes app stocks go down or vice versa. It really moves differently, and you see these large swaths of time where gold does really well and then swats of time where they go lousy as well. But right now is one of those times where we really do see gold as performing well. We originally bought it as an inflation hedge and that was a good decision on our part. Now we're really holding it as a more of a geopolitical risk hedge, not just from a geopolitics standpoint, but also from there's a lot of different moves being made all across the world from all the central banks, So also from a policy risk standpoint there as well.

What about overseas interest and allocation and buying.

What about overseas interest and allocation and buying.

Yeah, it's something we're definitely watching and we are interested in potentially moving into foreign but that again will probably more be after this recovery, once we look to see more of that branding of leisured leadership and potentially that rotation of leadership. Foreign was doing definitely interestingly this year, but I think if you hop into it right now, you have that potential to really get whipsof and we didn't want to do that when some of these great tech names and other names had gotten beaten down and were more likely to participate in this recovery first. And then potentially we'll see that rotation ship rotation into foreign leadership, and that's when we would be more interested in getting in then. So we're just being a little patient to avoid that whipsoft, but it is definitely on our radar.

Yeah, it's something we're definitely watching and we are interested in potentially moving into foreign but that again will probably more be after this recovery, once we look to see more of that branding of leisured leadership and potentially that rotation of leadership. Foreign was doing definitely interestingly this year, but I think if you hop into it right now, you have that potential to really get whipsof and we didn't want to do that when some of these great tech names and other names had gotten beaten down and were more likely to participate in this recovery first. And then potentially we'll see that rotation ship rotation into foreign leadership, and that's when we would be more interested in getting in then. So we're just being a little patient to avoid that whipsoft, but it is definitely on our radar.

Yeah, I would just point out, I mean the eurostocks fifty. I know it's been beaten up and maybe not as up as it was earlier this year, but it's still up about eight percent year to date, and that compares with still about a three and a half percent to cline in the S and P five hundred, So you know, betting overseas has still been pretty good this.

Yeah, I would just point out, I mean the eurostocks fifty. I know it's been beaten up and maybe not as up as it was earlier this year, but it's still up about eight percent year to date, and that compares with still about a three and a half percent to cline in the S and P five hundred, So you know, betting overseas has still been pretty good this.

Year, right this year, but in the longer term, no, I know, but you know when you're yeah, well, Alexis, we only have like forty five seconds left. But I'm just wondering what's the general vibe you're getting from clients. Are people panicked? Are they are they asking to go to cash gold or are people more optimistic.

Year, right this year, but in the longer term, no, I know, but you know when you're yeah, well, Alexis, we only have like forty five seconds left. But I'm just wondering what's the general vibe you're getting from clients. Are people panicked? Are they are they asking to go to cash gold or are people more optimistic.

We're really lucky with our client base. They've been through markets like this with us, and they've seen really that it's really difficult to have to go through moments like this. But if you think about it, most of the time you're hearing investors say that you want to buy low now. That's really hard to do when you're emotionally charged. And luckily, our clients trust us enough that we've had Yeah, we've had some who are nervous who we just need to talk to and then they wind up being fine, and some who actually want to send us more money to get it more invested right now. But really, how we aim to make money for our clients is by participant.

We're really lucky with our client base. They've been through markets like this with us, and they've seen really that it's really difficult to have to go through moments like this. But if you think about it, most of the time you're hearing investors say that you want to buy low now. That's really hard to do when you're emotionally charged. And luckily, our clients trust us enough that we've had Yeah, we've had some who are nervous who we just need to talk to and then they wind up being fine, and some who actually want to send us more money to get it more invested right now. But really, how we aim to make money for our clients is by participant.

Oh sorry what no, we get a run unfortunately, but thank you, thank you. I was glad we can check in with you. Forgive me, Forgive Me. Alexis Brown Roberts at Alexis Investment Partners.

Oh sorry what no, we get a run unfortunately, but thank you, thank you. I was glad we can check in with you. Forgive me, Forgive Me. Alexis Brown Roberts at Alexis Investment Partners.

This is the Bloomberg Business Week Daily podcast, available on Apple, Spotify, and anywhere where else you get your podcasts. Listen live weekday afternoons from two to five pm Eastern on Bloomberg dot com, the iHeartRadio app, tune In, and the Bloomberg Business App. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal

This is the Bloomberg Business Week Daily podcast, available on Apple, Spotify, and anywhere where else you get your podcasts. Listen live weekday afternoons from two to five pm Eastern on Bloomberg dot com, the iHeartRadio app, tune In, and the Bloomberg Business App. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal