Bloomberg Audio Studios, podcasts, radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on Applecarplay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts, or watch us live on YouTube.

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So here's a headline for you. Blacksuit cyber crime gang is blamed for major CDK ransomware attacks.

So here's a headline for you. Blacksuit cyber crime gang is blamed for major CDK ransomware attacks.

So this is the deal.

So this is the deal.

Fifteen thousand car dealerships across the US in Canada have gone days now without software systems that are crucial to running their business, and this is after multiple cyber attacks on CDK Global. Now that company's just a handful of dealer management systems that provide auto retailer's ability to basically function, schedule appointments, customer records, etc. And so apparently Blacksuit cyber crime Gang is blamed in that attack.

Fifteen thousand car dealerships across the US in Canada have gone days now without software systems that are crucial to running their business, and this is after multiple cyber attacks on CDK Global. Now that company's just a handful of dealer management systems that provide auto retailer's ability to basically function, schedule appointments, customer records, etc. And so apparently Blacksuit cyber crime Gang is blamed in that attack.

It's a real deal.

It's a real deal.

Buddy Mine manages a dealership in Jersey and he said it's definitely. It impacts everything they do. And the net result is it just takes longer to serve your customer, gives them.

Buddy Mine manages a dealership in Jersey and he said it's definitely. It impacts everything they do. And the net result is it just takes longer to serve your customer, gives them.

More time to walk out the door, and.

More time to walk out the door, and.

So it's impacting, you know, a little bit of an impact on units sold per day they're noticing, so they need to get that fixed as quickly as possible.

So it's impacting, you know, a little bit of an impact on units sold per day they're noticing, so they need to get that fixed as quickly as possible.

That's interesting.

That's interesting.

But also like when you go to a car dealership, you already spend half your day there, so you extended and like forget it. Steve Mann is Bloomberg Intelligence Global Auto is an industrials research analyst, and he joins us. Now, Steve, you've been following this and the hack.

But also like when you go to a car dealership, you already spend half your day there, so you extended and like forget it. Steve Mann is Bloomberg Intelligence Global Auto is an industrials research analyst, and he joins us. Now, Steve, you've been following this and the hack.

What happened?

What happened?

Oh, this is very significant. I mean, I mean, Paul just said he spoke to some of the dealership in New Jersey. If I've reached out to some of the dealerships that I've that I've talked to, the impact is significant. It's not just only sales, but it's also service and parts. You know, the systems interrupted to a point where they can't even get certain cars registered and delivered to their customers, the ones that's already sold. So you know, Inventor is gonna get a little pick up. It's gonna be you know, I don't know when it's gonna get fixed. They probably have to pay that fine, and I think they will pay that fine. But at the end of the day, I think if I look at from the automaker's perspective, it's it's a temporary, temporary blip. Inventory is gonna rise, but I think sales will be delayed, and hopefully when this gets resolved, customers will come back. More customers will come back to the to the showroom.

Oh, this is very significant. I mean, I mean, Paul just said he spoke to some of the dealership in New Jersey. If I've reached out to some of the dealerships that I've that I've talked to, the impact is significant. It's not just only sales, but it's also service and parts. You know, the systems interrupted to a point where they can't even get certain cars registered and delivered to their customers, the ones that's already sold. So you know, Inventor is gonna get a little pick up. It's gonna be you know, I don't know when it's gonna get fixed. They probably have to pay that fine, and I think they will pay that fine. But at the end of the day, I think if I look at from the automaker's perspective, it's it's a temporary, temporary blip. Inventory is gonna rise, but I think sales will be delayed, and hopefully when this gets resolved, customers will come back. More customers will come back to the to the showroom.

And it seems I mean Bloomberg News reporting CDK plans to make the ransomware payment.

And it seems I mean Bloomberg News reporting CDK plans to make the ransomware payment.

Oh yeah, frustrating. It's just but I guess they kind of have to.

Oh yeah, frustrating. It's just but I guess they kind of have to.

I don't know, all right, Steve talked to us about China europe tariffs. We've got the European Union reporting you know, we talked to you last week initiating some tariffs here. Now Beijing's kind of responding here. What's the latest.

I don't know, all right, Steve talked to us about China europe tariffs. We've got the European Union reporting you know, we talked to you last week initiating some tariffs here. Now Beijing's kind of responding here. What's the latest.

Yeah, it's uh, it's it's a big deal for the Germans, especially the luck through automakers like BMW, Mercedes and Audi which Volkswagen owns Audi. Uh. You know, they have about eighty percent of the market, the luxury car market in China, so they sell a huge amount of cars in China. About a third to forty percent of these companies' revenues actually generate in China, so they yeah, so they want to make good with the Chinese. As you know, Germany has been against the tariffs. So if the Germans are able to get something from China and help ease some of the tariffs or China. You know, if China can get the Germans to help them ease some of the tariffs in the EU, I think it will benefit you know, potentially companies like Stilentis as well, which is which also has a new joint venture.

Yeah, it's uh, it's it's a big deal for the Germans, especially the luck through automakers like BMW, Mercedes and Audi which Volkswagen owns Audi. Uh. You know, they have about eighty percent of the market, the luxury car market in China, so they sell a huge amount of cars in China. About a third to forty percent of these companies' revenues actually generate in China, so they yeah, so they want to make good with the Chinese. As you know, Germany has been against the tariffs. So if the Germans are able to get something from China and help ease some of the tariffs or China. You know, if China can get the Germans to help them ease some of the tariffs in the EU, I think it will benefit you know, potentially companies like Stilentis as well, which is which also has a new joint venture.

But here's the thing that I get confused, is it China's making a pitch to individual countries versus the European Union trying to operate as one body in relation to tariffs, and I wonder how that's gonna work itself out.

But here's the thing that I get confused, is it China's making a pitch to individual countries versus the European Union trying to operate as one body in relation to tariffs, and I wonder how that's gonna work itself out.

Yeah, I think it's it's that conquer, divine and conquer strategy they're they're taking. So but you know, I think the Germans probably has the most to lose out of the global automakers here. You know, about sixteen percent of their battery electric vehicles that are produced in China, it's actually shipped out globally. So China plays an important part for the BEEV market as a low cost producer. So you know, I don't think there's a lot of other automakers that are you know that have that many bev's produced in China and sold elsewhere around the world.

Yeah, I think it's it's that conquer, divine and conquer strategy they're they're taking. So but you know, I think the Germans probably has the most to lose out of the global automakers here. You know, about sixteen percent of their battery electric vehicles that are produced in China, it's actually shipped out globally. So China plays an important part for the BEEV market as a low cost producer. So you know, I don't think there's a lot of other automakers that are you know that have that many bev's produced in China and sold elsewhere around the world.

And Steeve just a red headline crossing the Bloomberg terminal. Now Canada now gets into the game. Canada announces planned to curb imports of Chinese made evs.

And Steeve just a red headline crossing the Bloomberg terminal. Now Canada now gets into the game. Canada announces planned to curb imports of Chinese made evs.

I mean, what's going on here?

I mean, what's going on here?

I mean, I mean, first of all, just give us a sense of how good, how competitive are these Chinese evs, because if you tell me they're good vehicles, let's bring them into the market.

I mean, I mean, first of all, just give us a sense of how good, how competitive are these Chinese evs, because if you tell me they're good vehicles, let's bring them into the market.

I don't know, Yeah, I think some if you talk to some of the al makers, they actually have the same thinking. Let's let's let's compete, right. I think competition will make the whole industry better. You saw that with Tesla being the you know, fourth or third automaker in the US and actually helped drive a lot of the b EV costs down. But you know, it's not surprising that Canada is is implementing tariffs. Uh. They are part of the US Mexico Canada Free Trade Agreement, and I think you know they have to close that that door, that back door where the Chinese evs can come in. It is it is very competitive. I think you know, Chinese evs are cheap enough that if you know, some argue that even with the tariffs, even with some engineering change to to so that they're they fit thet they fit the regulatory safety and mission rules here, is still be a very competitive price vehicle for North America.

I don't know, Yeah, I think some if you talk to some of the al makers, they actually have the same thinking. Let's let's let's compete, right. I think competition will make the whole industry better. You saw that with Tesla being the you know, fourth or third automaker in the US and actually helped drive a lot of the b EV costs down. But you know, it's not surprising that Canada is is implementing tariffs. Uh. They are part of the US Mexico Canada Free Trade Agreement, and I think you know they have to close that that door, that back door where the Chinese evs can come in. It is it is very competitive. I think you know, Chinese evs are cheap enough that if you know, some argue that even with the tariffs, even with some engineering change to to so that they're they fit thet they fit the regulatory safety and mission rules here, is still be a very competitive price vehicle for North America.

So then to that point, we're waiting for Mexico now, right, because I think we talked about this before. So not only is Canada gonna put tariffs on EV imports, they're also going to curb imports.

So then to that point, we're waiting for Mexico now, right, because I think we talked about this before. So not only is Canada gonna put tariffs on EV imports, they're also going to curb imports.

Of Chinese made evs.

Of Chinese made evs.

The idea is that if Mexico doesn't have any of those restrictions, that they can just import EV's from China and then through Mexico go into the US. And that's a different way of operating. When do we get that from Mexico.

The idea is that if Mexico doesn't have any of those restrictions, that they can just import EV's from China and then through Mexico go into the US. And that's a different way of operating. When do we get that from Mexico.

I think there are some negotiation that's happening now with Mexico to kind of implement similar tariff. I've heard that VOVO is already kind of lobbying. VOVO is actually part of Chile, is actually lobbying the Mexican government to not implement, to not put tariffs in place. So then negotiations are ongoing. I don't think we were gonna wait, have to wait too long to hear any news from that.

I think there are some negotiation that's happening now with Mexico to kind of implement similar tariff. I've heard that VOVO is already kind of lobbying. VOVO is actually part of Chile, is actually lobbying the Mexican government to not implement, to not put tariffs in place. So then negotiations are ongoing. I don't think we were gonna wait, have to wait too long to hear any news from that.

All right, So stepping back a little bit, give us the latest thinking out of Detroit and other auto capitals around the world about.

All right, So stepping back a little bit, give us the latest thinking out of Detroit and other auto capitals around the world about.

EV's versus the hybrids.

EV's versus the hybrids.

Is the hybrid going to be I guess the stepping stone to a pure EV environment? Do you think is that still the thinking?

Is the hybrid going to be I guess the stepping stone to a pure EV environment? Do you think is that still the thinking?

Yeah, I think that is still the thinking. I think with BEEV sales slowing down or growth slowing down, the automakers do need something else to meet the cafe, the few economy regulations, the emissions regulations. So hybrid is a stopgap measure. But if you talk to the all the automakers just still spending a lot of money on BEV. They think that is the future because at the end of the day, hybrid vehicles do still spill spell out pollution or greenhouse gases. So you know, as you know, these emission standards, these few economy standards, they're only going to get tighter and tighter.

Yeah, I think that is still the thinking. I think with BEEV sales slowing down or growth slowing down, the automakers do need something else to meet the cafe, the few economy regulations, the emissions regulations. So hybrid is a stopgap measure. But if you talk to the all the automakers just still spending a lot of money on BEV. They think that is the future because at the end of the day, hybrid vehicles do still spill spell out pollution or greenhouse gases. So you know, as you know, these emission standards, these few economy standards, they're only going to get tighter and tighter.

All right, Steve, we appreciate it, Thank you very much.

All right, Steve, we appreciate it, Thank you very much.

I feel like your sector is moving so fast right now in terms of all the rules and regulations. Steve Man Bloomberg Intelligence, Global Autos and industrials research analyst.

I feel like your sector is moving so fast right now in terms of all the rules and regulations. Steve Man Bloomberg Intelligence, Global Autos and industrials research analyst.

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One of the pieces of news crossing the tape here, Alex just reaching is you know Apple, there's some concerns there at the European Union regulators once again looking at a big US tech company, in this case Apple, looking at their app store and maybe some abuses. Their Temlin Basent Joints is here. Temlin is a technologyannelst for Bloomberg Intelligence. He was in the US, but now he's in London.

One of the pieces of news crossing the tape here, Alex just reaching is you know Apple, there's some concerns there at the European Union regulators once again looking at a big US tech company, in this case Apple, looking at their app store and maybe some abuses. Their Temlin Basent Joints is here. Temlin is a technologyannelst for Bloomberg Intelligence. He was in the US, but now he's in London.

Get to London. I have no idea how that happened. I did not complane.

Get to London. I have no idea how that happened. I did not complane.

I mean a ship would take a way too long.

I mean a ship would take a way too long.

Yeah, I did not approve that.

Yeah, I did not approve that.

But anyway, Tamlin, thanks so much for joining us here.

But anyway, Tamlin, thanks so much for joining us here.

Talent.

Talent.

Tell us what's happening with Apple today as it relates to the European Union and some of the regulators there.

Tell us what's happening with Apple today as it relates to the European Union and some of the regulators there.

Yeah. Sure, So what happened today is the European Commission announced preliminary findings in an investigation into Apple under the Digital Markets Act. This is the sweeping new competition rules that the European Union is sort of implemented in March of this year. Now, the findings of this probe relate to anti steering rules, so essentially to Apple's rules that it has in place to sort of prevent app developers from informing users of maybe cheaper subscription options outside of the app store. Now this might sound familiar because just in early March, before the DMA took effect, the Commission did find Apple one point eight billion euros over sort of the same anti steering. Now, what today their commission said is that Apple is still not complying now with the d m A in terms of really letting developers freely engage with users and direct them to cheaper options. Specifically, this kind of they want developers to be able to market within the app and show cheaper subscriptions within that. So it's really this is kind of more pressure on those sort of app store revenues that Apple.

Yeah. Sure, So what happened today is the European Commission announced preliminary findings in an investigation into Apple under the Digital Markets Act. This is the sweeping new competition rules that the European Union is sort of implemented in March of this year. Now, the findings of this probe relate to anti steering rules, so essentially to Apple's rules that it has in place to sort of prevent app developers from informing users of maybe cheaper subscription options outside of the app store. Now this might sound familiar because just in early March, before the DMA took effect, the Commission did find Apple one point eight billion euros over sort of the same anti steering. Now, what today their commission said is that Apple is still not complying now with the d m A in terms of really letting developers freely engage with users and direct them to cheaper options. Specifically, this kind of they want developers to be able to market within the app and show cheaper subscriptions within that. So it's really this is kind of more pressure on those sort of app store revenues that Apple.

So what does Apple say to that, Like, well, what's their defense to that, because presumably they had months to kind of get it together.

So what does Apple say to that, Like, well, what's their defense to that, because presumably they had months to kind of get it together.

They did, and they haven't responded. What do they said is they think that they do comply with all of this. What's interesting about the DMA, though, is that this is the DMA that European Commission did play a strong role in drafting these rules, and it's also responsible for enforcing them, and there are a lot of sort of subjective interpretations in terms of first complying with it. So I think what we are going to see is probably the European Commission taking a very strict view of what's reasonable in these circumstances and probably really try to get strict adherance here. So it's going to be going to be up to them to decide whether Apple is complied or not, and then Apple can then sort of appeal to the courts. But I do think it's it's pretty likely we're going to see another fine in this and some behavioral remedies coming down the line.

They did, and they haven't responded. What do they said is they think that they do comply with all of this. What's interesting about the DMA, though, is that this is the DMA that European Commission did play a strong role in drafting these rules, and it's also responsible for enforcing them, and there are a lot of sort of subjective interpretations in terms of first complying with it. So I think what we are going to see is probably the European Commission taking a very strict view of what's reasonable in these circumstances and probably really try to get strict adherance here. So it's going to be going to be up to them to decide whether Apple is complied or not, and then Apple can then sort of appeal to the courts. But I do think it's it's pretty likely we're going to see another fine in this and some behavioral remedies coming down the line.

You know, Alex, I love talking to Tamlin. Good guy, smart guy, But you know what, it just doesn't matter. Apple stock up a tenths of one percent today, It's a nine percent year to date. We've seen this time and time again where the Europeans just start nitpicking at these US technology companies, Tamila, what's the feeling within the regulatory environment of Europe as to really what they're trying to do here, because it just doesn't seem like it's even relevant. I mean, it just at the end of the day, they just these whether it's Google or Facebook, or they just write checks here to make could all go away? I mean, is that kind of do European regulators recognize that it just doesn't seem to be that I material what they're doing.

You know, Alex, I love talking to Tamlin. Good guy, smart guy, But you know what, it just doesn't matter. Apple stock up a tenths of one percent today, It's a nine percent year to date. We've seen this time and time again where the Europeans just start nitpicking at these US technology companies, Tamila, what's the feeling within the regulatory environment of Europe as to really what they're trying to do here, because it just doesn't seem like it's even relevant. I mean, it just at the end of the day, they just these whether it's Google or Facebook, or they just write checks here to make could all go away? I mean, is that kind of do European regulators recognize that it just doesn't seem to be that I material what they're doing.

Right, Yeah, So I think if you look at this specific investigation, you know, this is one that sort of came out of sort of Spotify, which of course is headquartered in Europe, and the app developers are complaining that the Apple is squeezing them too hard. So I think in some of these instances, Europe is trying to protect some local players by sort of ordering a sort of loosening of these rules that sort of maybe benefit the gatekeeper on the NBA, which DNA, which would be at Apple, Google, Microsoft brothers, and they are sort of trying to show domestic industry that they are trying to pry open the markets. But I do think you're right that I think at this point investors are sort of kind of just shrugging this off. This is just one thing after another. I will point that may point out that a difference under the DMA is that the timeline is really much quicker than under sort of former case law, where it may take three four years until you got a result after an industiation. Here that this finding came just three months after the inquiry opened, and we're going to have sort of a final remedial measure by early next year. So I do think the timeline is faster. Whether or not this results and sort of the impact that the regulators might be looking for, I think definitely remains to be seen, and I think investors are definitely looking a little bit of skew at it and thinking maybe this is sort of just more of the same.

Right, Yeah, So I think if you look at this specific investigation, you know, this is one that sort of came out of sort of Spotify, which of course is headquartered in Europe, and the app developers are complaining that the Apple is squeezing them too hard. So I think in some of these instances, Europe is trying to protect some local players by sort of ordering a sort of loosening of these rules that sort of maybe benefit the gatekeeper on the NBA, which DNA, which would be at Apple, Google, Microsoft brothers, and they are sort of trying to show domestic industry that they are trying to pry open the markets. But I do think you're right that I think at this point investors are sort of kind of just shrugging this off. This is just one thing after another. I will point that may point out that a difference under the DMA is that the timeline is really much quicker than under sort of former case law, where it may take three four years until you got a result after an industiation. Here that this finding came just three months after the inquiry opened, and we're going to have sort of a final remedial measure by early next year. So I do think the timeline is faster. Whether or not this results and sort of the impact that the regulators might be looking for, I think definitely remains to be seen, and I think investors are definitely looking a little bit of skew at it and thinking maybe this is sort of just more of the same.

And Alex, I mean, you know, it's really almost, maybe even more than thirty years ago that Microsoft started going through the same whole thing with the European Union, and again it investors became conditioned to it's no big deal. They just write it check and it kind of goes away. The tobacco industry, you know, investors kind of said, put it in context, it's not that big a deal, and you kind of wonder, you know, given that the US regulators have taken a very light touch to technology and then allowing these companies to get so big, like the Europeans are trying to do what they can to kind of rein it in, but it seems almost too little, too late, right.

And Alex, I mean, you know, it's really almost, maybe even more than thirty years ago that Microsoft started going through the same whole thing with the European Union, and again it investors became conditioned to it's no big deal. They just write it check and it kind of goes away. The tobacco industry, you know, investors kind of said, put it in context, it's not that big a deal, and you kind of wonder, you know, given that the US regulators have taken a very light touch to technology and then allowing these companies to get so big, like the Europeans are trying to do what they can to kind of rein it in, but it seems almost too little, too late, right.

And also you can make the argument too that you know, Europe doesn't have a lot of technology companies. They have some, of course, like ASML for example, Yes, but yeah, exactly SAP, but I mean, can you name anymore? No, there's some, But I think that that's kind of the point. Maybe take a look at you know, European stocks versus the S and P and market cap like twenty years ago versus now, Oh my gosh, forget that different. Hey Tamlin, what's going on with Apple in general? Like it's it's it seems to be making a little bit of a comeback here. It's actually ups extensive one percent, despite you know, in video for example, down over two percent.

And also you can make the argument too that you know, Europe doesn't have a lot of technology companies. They have some, of course, like ASML for example, Yes, but yeah, exactly SAP, but I mean, can you name anymore? No, there's some, But I think that that's kind of the point. Maybe take a look at you know, European stocks versus the S and P and market cap like twenty years ago versus now, Oh my gosh, forget that different. Hey Tamlin, what's going on with Apple in general? Like it's it's it seems to be making a little bit of a comeback here. It's actually ups extensive one percent, despite you know, in video for example, down over two percent.

What do you make of that?

What do you make of that?

Yeah, I mean I think some of this comes some sort of the recent announcement to sort of build AI into the into the iPhone and maybe maybe sort of accelerate the recycle in terms of getting people to buy those phones. I do think it probably definitely. I don't think the regulatory headwinds are really causing it much damage right now. I will point out that although the US is definitely like ASSAD taking a light touch approach, the one area they are getting involved in is on sort of these apps for rules, where where Apple's obviously been in litigation with Epic for years and years and years. So I think on both sides of the Atlantic, there are some pressure on that on those services revenues that we might see shaking out over the next you know, nine to eighteen months to see how that plays out.

Yeah, I mean I think some of this comes some sort of the recent announcement to sort of build AI into the into the iPhone and maybe maybe sort of accelerate the recycle in terms of getting people to buy those phones. I do think it probably definitely. I don't think the regulatory headwinds are really causing it much damage right now. I will point out that although the US is definitely like ASSAD taking a light touch approach, the one area they are getting involved in is on sort of these apps for rules, where where Apple's obviously been in litigation with Epic for years and years and years. So I think on both sides of the Atlantic, there are some pressure on that on those services revenues that we might see shaking out over the next you know, nine to eighteen months to see how that plays out.

So Timmley, you've you've been based both in the US and now in the UK. What's your view of kind of the technology and landscape and the ability for new technologies to kind of be developed and grow in in the UK and Europe. What's what's your view given your experience in the US.

So Timmley, you've you've been based both in the US and now in the UK. What's your view of kind of the technology and landscape and the ability for new technologies to kind of be developed and grow in in the UK and Europe. What's what's your view given your experience in the US.

Yeah, well, I think the US probably probably has more of a fostering environment for that startups stage. I think that's why you've seen some of your US companies really flourished. I do think in Europe there's trying to create that fostering environment, specifically for the artificial intelligence field. I think you have seen some they are. There's an AI regulation that's taken effect. I don't think it's nearly as strict as it could have been. I think a large reason for that are lawmakers, specifically in France and Germany, really wanted to try to foster and incubate beat AI industries that they had going on. So I think we'll have to see whether that works out and whether we have the European large scale AI players. I think historically definitely, I think you've seen more of that sort of startup, startup fostering taking place in the US than Europe.

Yeah, well, I think the US probably probably has more of a fostering environment for that startups stage. I think that's why you've seen some of your US companies really flourished. I do think in Europe there's trying to create that fostering environment, specifically for the artificial intelligence field. I think you have seen some they are. There's an AI regulation that's taken effect. I don't think it's nearly as strict as it could have been. I think a large reason for that are lawmakers, specifically in France and Germany, really wanted to try to foster and incubate beat AI industries that they had going on. So I think we'll have to see whether that works out and whether we have the European large scale AI players. I think historically definitely, I think you've seen more of that sort of startup, startup fostering taking place in the US than Europe.

All right, Tamlin, we really appreciate it. Thank you so much. Do you like living in Europe? By the way, are you enjoying the UK?

All right, Tamlin, we really appreciate it. Thank you so much. Do you like living in Europe? By the way, are you enjoying the UK?

Yeah?

Yeah?

Quite nice?

Quite nice?

Excellent, right, I get you. It's not ninety two degrees there.

Excellent, right, I get you. It's not ninety two degrees there.

Yeah, humidity. I'm just put that out there, all right, Tamlin. We appreciate you. Thank you.

Yeah, humidity. I'm just put that out there, all right, Tamlin. We appreciate you. Thank you.

Tamlin based in joining US A Bloomberg Intelligence technology analyst from the UK. Here's my question for you, Paul, what do you think is going on with tech right now? Like?

Tamlin based in joining US A Bloomberg Intelligence technology analyst from the UK. Here's my question for you, Paul, what do you think is going on with tech right now? Like?

Is this like a rebalancing to the end of the cour order. Is this like a pause? Is there something more disastrous going on here? What do you think?

Is this like a rebalancing to the end of the cour order. Is this like a pause? Is there something more disastrous going on here? What do you think?

I don't think so. I mean again, we just heard. I just got a note from Vince from out in the audience. Bid in stocks's quarter end window dressing. That's all he's hearing so far, Vince Cignarella kind of rating in here. So no, I think tech is you know, I just think it's a pause here.

I don't think so. I mean again, we just heard. I just got a note from Vince from out in the audience. Bid in stocks's quarter end window dressing. That's all he's hearing so far, Vince Cignarella kind of rating in here. So no, I think tech is you know, I just think it's a pause here.

I mean, I think they're gonna be.

I mean, I think they're gonna be.

The question for a lot of folks, is you know tech has been the leader in this stock market performance for years now?

The question for a lot of folks, is you know tech has been the leader in this stock market performance for years now?

Can it continue to be?

Can it continue to be?

And I just think you look at the tech spending and you see where it continues to be a significant growth story, and just in terms of old total tech spending throughout the entire tech stack.

And I just think you look at the tech spending and you see where it continues to be a significant growth story, and just in terms of old total tech spending throughout the entire tech stack.

Led by AI.

Led by AI.

So maybe the AI trade maybe got the sector a littlehead of itself. Maybe time for a pause, but boy, the longer term trend seems really solid.

So maybe the AI trade maybe got the sector a littlehead of itself. Maybe time for a pause, but boy, the longer term trend seems really solid.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on Focar playing Endroyd Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

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And the NASDA gets flat on the day. I mean, go figure. I feel like we're definitely on our way back. Alleren Gilbert's CEO of Wealthfuised Financial, is joining us right now for her take. So, Alaren Paul and I were talking just earlier about what is going on. Is it a tech breather, is it rebalancing into the end of the quarter. Is last week kind of the start of something more severe?

And the NASDA gets flat on the day. I mean, go figure. I feel like we're definitely on our way back. Alleren Gilbert's CEO of Wealthfuised Financial, is joining us right now for her take. So, Alaren Paul and I were talking just earlier about what is going on. Is it a tech breather, is it rebalancing into the end of the quarter. Is last week kind of the start of something more severe?

How do you view it?

How do you view it?

Yeah, I mean I think let's not forget it's starting to be summer. People are off to the Hamptons, off to international trips, et cetera. So part of this would be just seasonality. But another part is I think we're going through a shift when it comes to AI from development to deployment, and so I think with that, we're going to see a broadening out of the market, not just the companies like Nvidia that are the start of AI, but moving into how companies can monetize it. And so I think we're going to continue to see this broadening out with other companies that are able to actually profit from it.

Yeah, I mean I think let's not forget it's starting to be summer. People are off to the Hamptons, off to international trips, et cetera. So part of this would be just seasonality. But another part is I think we're going through a shift when it comes to AI from development to deployment, and so I think with that, we're going to see a broadening out of the market, not just the companies like Nvidia that are the start of AI, but moving into how companies can monetize it. And so I think we're going to continue to see this broadening out with other companies that are able to actually profit from it.

What are some of those companies on what are some of those sectors that can benefit from the actual deployment of this technology.

What are some of those companies on what are some of those sectors that can benefit from the actual deployment of this technology.

Well, it goes across all sectors really, but you know, when we think about even even just industrials and how the technology here is going to be able to broaden out. You know, even companies like Caterpillar and John Deere are going to be able to use AI to improve efficiencies. So really it's across all sectors, whether it's healthcare or industrials, et cetera.

Well, it goes across all sectors really, but you know, when we think about even even just industrials and how the technology here is going to be able to broaden out. You know, even companies like Caterpillar and John Deere are going to be able to use AI to improve efficiencies. So really it's across all sectors, whether it's healthcare or industrials, et cetera.

So that's the AI play.

So that's the AI play.

And then you do like, plus, let's look at valuation and where we're at, what's a good bet?

And then you do like, plus, let's look at valuation and where we're at, what's a good bet?

Like do you like industrials right now?

Like do you like industrials right now?

I do like industrials. We think that that is going to be a backbone and when we look to add infrastructure spending, that is going to continue to be a theme. So, you know, and I think we have to take in mind where we are with the FED and that we're definitely about to see ray cuts, you know, and the question is just when do they start. But we know that trend is going to be our friend, and so I think you can't give up on technology. It's going to continue to be the driver here moving forward, and with interest rates that will go down. That's a risk on move in the market, so we have to be mindful, but it is all about what are you buying at what price?

I do like industrials. We think that that is going to be a backbone and when we look to add infrastructure spending, that is going to continue to be a theme. So, you know, and I think we have to take in mind where we are with the FED and that we're definitely about to see ray cuts, you know, and the question is just when do they start. But we know that trend is going to be our friend, and so I think you can't give up on technology. It's going to continue to be the driver here moving forward, and with interest rates that will go down. That's a risk on move in the market, so we have to be mindful, but it is all about what are you buying at what price?

All right, Lauren, you're a graduate of the University of Texas, so that means by default you must have an energy call. What do you think what do you think energy stocks are going to be doing here? How do you think about, you know, investing in energy stocks.

All right, Lauren, you're a graduate of the University of Texas, so that means by default you must have an energy call. What do you think what do you think energy stocks are going to be doing here? How do you think about, you know, investing in energy stocks.

Yeah, we like energy a lot, and we like utilities. Looking at the play just continued expansion in the need for energy with regards to AI. If you look at those numbers, they're astronomical and so there has to be this continued build out and making energy more efficient. So we definitely like the energy play.

Yeah, we like energy a lot, and we like utilities. Looking at the play just continued expansion in the need for energy with regards to AI. If you look at those numbers, they're astronomical and so there has to be this continued build out and making energy more efficient. So we definitely like the energy play.

Where in the energy play because this is something that I've been thinking about, Like oil companies aren't power companies, and power companies are the ones that are going to benefit, But utilities are regulated. So does that kind of change how you want to be investing in utility companies versus power companies.

Where in the energy play because this is something that I've been thinking about, Like oil companies aren't power companies, and power companies are the ones that are going to benefit, But utilities are regulated. So does that kind of change how you want to be investing in utility companies versus power companies.

We're on that spectrum. It makes the most sense.

We're on that spectrum. It makes the most sense.

Yeah, So it's true that utility companies are regulated, but what we're seeing is that there's going to be there's just so much demand that the demand versus supply is going to be the story there. So definitely there I agree with you, not so much just oil and gas companies, but really everything that is behind the idea of what's going to help with AI.

Yeah, So it's true that utility companies are regulated, but what we're seeing is that there's going to be there's just so much demand that the demand versus supply is going to be the story there. So definitely there I agree with you, not so much just oil and gas companies, but really everything that is behind the idea of what's going to help with AI.

All right, so how do we think about that's at equities? How about fixed income?

All right, so how do we think about that's at equities? How about fixed income?

Here?

Here?

What are you telling your clients these days about bond market?

What are you telling your clients these days about bond market?

Well, we love the bond market. It couldn't be you know, more excited about bonds, and who gets excited about bonds? So right now is a very good time because when you look at where we are once again with rates going to be going down, the story is that all that money that's sitting in money markets is going to be moving. It's already started to move a little bit, and while some of it may land in the equity markets, a lot of it's going to end up in the bond markets. And so with that, you know, now is the time to be moving money because for people that are going to be in money markets a year later, they're going to be very disappointed and moving into the bond markets. Now you have the yield, but you also have capital appreciation opportunities. We like preferred stock as well, other good play that's fixed income to equity. So keeping it though, I would say all high quality, not venturing into as our economy has been softening, keeping it on the high quality side.

Well, we love the bond market. It couldn't be you know, more excited about bonds, and who gets excited about bonds? So right now is a very good time because when you look at where we are once again with rates going to be going down, the story is that all that money that's sitting in money markets is going to be moving. It's already started to move a little bit, and while some of it may land in the equity markets, a lot of it's going to end up in the bond markets. And so with that, you know, now is the time to be moving money because for people that are going to be in money markets a year later, they're going to be very disappointed and moving into the bond markets. Now you have the yield, but you also have capital appreciation opportunities. We like preferred stock as well, other good play that's fixed income to equity. So keeping it though, I would say all high quality, not venturing into as our economy has been softening, keeping it on the high quality side.

This brings up my question that I have is that why are we convinced that money market funds are going to go somewhere else? Because if we're in a rate normalization cycle, doesn't mean we're going to go back to one percent of the Fed funds rate, Like if we stay at four, I don't know, three and a half, Like, why would I maybe take on more resk when it can sit there and still make money.

This brings up my question that I have is that why are we convinced that money market funds are going to go somewhere else? Because if we're in a rate normalization cycle, doesn't mean we're going to go back to one percent of the Fed funds rate, Like if we stay at four, I don't know, three and a half, Like, why would I maybe take on more resk when it can sit there and still make money.

Well, because what you're doing is locking in to a higher rate for longer by moving into the fixed income markets versus seeing the rates continue to go down in money markets. So right now, if you move into just say, you know, a six year duration on your fixed income, you're looking at between you know, four to five percent on the yield with some capital appreciation opportunity that you can lock in for the next six years. That's what history tells us, So I'd liken it too. You know, if you could go back in time a couple of years ago and lock into a home mortgage rate at three percent, So if.

Well, because what you're doing is locking in to a higher rate for longer by moving into the fixed income markets versus seeing the rates continue to go down in money markets. So right now, if you move into just say, you know, a six year duration on your fixed income, you're looking at between you know, four to five percent on the yield with some capital appreciation opportunity that you can lock in for the next six years. That's what history tells us, So I'd liken it too. You know, if you could go back in time a couple of years ago and lock into a home mortgage rate at three percent, So if.

You could be alan statically, yes, so Paul's we can go back in time and be me that's what you.

You could be alan statically, yes, so Paul's we can go back in time and be me that's what you.

Would do, be a static about that. And so similarly, right now we have the opportunity in fixed income to lock in at the higher rate for a period of time and instead of watching the rates go down.

Would do, be a static about that. And so similarly, right now we have the opportunity in fixed income to lock in at the higher rate for a period of time and instead of watching the rates go down.

Uh, Lauren, you mentioned preferred stock, and we don't talk about prefers stock a lot.

Uh, Lauren, you mentioned preferred stock, and we don't talk about prefers stock a lot.

How do you use perfertock in your port portfolio? Why is it attractive right now?

How do you use perfertock in your port portfolio? Why is it attractive right now?

Yeah, so we use it as part of our fixed income allocation because you're getting a yield from it, but you also have equity like exposure with you know, some upside there. So it's this hybrid as it were, and it gives off a very nice yield while you're waiting. So it is kind of this more conservative way, more conservative approach and looks very attractive right now.

Yeah, so we use it as part of our fixed income allocation because you're getting a yield from it, but you also have equity like exposure with you know, some upside there. So it's this hybrid as it were, and it gives off a very nice yield while you're waiting. So it is kind of this more conservative way, more conservative approach and looks very attractive right now.

What do you think of corporate credit, Well, you.

What do you think of corporate credit, Well, you.

Know, I think that we would prefer agency mortgage backed securities corporate credit. You know, in a diversified fixed income portfolio, you're going to have some corporate credit, but more so than that agency even treasury, but a smaller allocation I would say to corporate just with the softening of the economy.

Know, I think that we would prefer agency mortgage backed securities corporate credit. You know, in a diversified fixed income portfolio, you're going to have some corporate credit, but more so than that agency even treasury, but a smaller allocation I would say to corporate just with the softening of the economy.

I mean I was speaking with a large group of registered investment advisers recently now surprised by how aggressive they were in terms of allocating their client's portfolio to alternative investments. While it's hedge funds, private equity, private credit, How do you view alternatives in a client's portfolio.

I mean I was speaking with a large group of registered investment advisers recently now surprised by how aggressive they were in terms of allocating their client's portfolio to alternative investments. While it's hedge funds, private equity, private credit, How do you view alternatives in a client's portfolio.

Well, I think alternatives have their space, and we allocate to alternatives as well, but it is a smaller piece of the puzzle. So you know, we look at, you know how much between equity and fixed income and in all alternatives in general, we consider that part of the equity exposure that gives us more diversification than just going along on equity. But I think you have to be careful because some alternatives can lock you in for a very long time, so liquidity needs have to be considered. And the other thing is as they can be a diversifier, but that doesn't always mean that they're going to outperform other areas of the market. So yes, we use it, and we're always looking for what the opport tunities are. I think there's been there's been quite a bit of investment in private credit as an alternative investment. And I don't know how much more legs that really have.

Well, I think alternatives have their space, and we allocate to alternatives as well, but it is a smaller piece of the puzzle. So you know, we look at, you know how much between equity and fixed income and in all alternatives in general, we consider that part of the equity exposure that gives us more diversification than just going along on equity. But I think you have to be careful because some alternatives can lock you in for a very long time, so liquidity needs have to be considered. And the other thing is as they can be a diversifier, but that doesn't always mean that they're going to outperform other areas of the market. So yes, we use it, and we're always looking for what the opport tunities are. I think there's been there's been quite a bit of investment in private credit as an alternative investment. And I don't know how much more legs that really have.

Great stuff really appreciated some counterintuitive views.

Great stuff really appreciated some counterintuitive views.

They're so fun to get.

They're so fun to get.

Hullarene Gilbert, CEO of wealth Wise Financial, kind of you know, sort of tempering.

Hullarene Gilbert, CEO of wealth Wise Financial, kind of you know, sort of tempering.

Expectations when it comes to private credit. Maybe it's not the bazillion dollar industry that we all think in.

Expectations when it comes to private credit. Maybe it's not the bazillion dollar industry that we all think in.

Yeah, we'll see how the asset class performs here with these higher for longer interest rates, because you've got to, you know, now, some of the banks are kind of getting you know, maybe getting a little bit more aggressive in their leverage lending businesses here, trying to you know, kind of compete a.

Yeah, we'll see how the asset class performs here with these higher for longer interest rates, because you've got to, you know, now, some of the banks are kind of getting you know, maybe getting a little bit more aggressive in their leverage lending businesses here, trying to you know, kind of compete a.

Little bit better with this private credit.

Little bit better with this private credit.

But the private credit's done really well, particularly in the mid middle markets where maybe some of the regional banks have dialed back since a great financial crisis their risk taking environment.

But the private credit's done really well, particularly in the mid middle markets where maybe some of the regional banks have dialed back since a great financial crisis their risk taking environment.

So keep an eye on that.

So keep an eye on that.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays ten am Eastern on applecar Play and Android Auto with the Bloomberg Business Act. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa playing Bloomberg eleven thirty.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays ten am Eastern on applecar Play and Android Auto with the Bloomberg Business Act. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa playing Bloomberg eleven thirty.

Malex Steel alongside pauls. We need this Bloomberg Intelligence Radio. We bring you all the top news and analysis with our analysts from Bloomberg Intelligence. They cover two thousand companies and one hundred and thirty industries worldwide. And Friday means the end of the second quarter, we will be halfway through the year. So it's that time where we're getting all the mid year outlooks, which are super helpful, particularly from Bloomberg Intelligence and joining us in studio as Michael Halen, He's consumer Products senior Bloomberg Intelligence industry analyst.

Malex Steel alongside pauls. We need this Bloomberg Intelligence Radio. We bring you all the top news and analysis with our analysts from Bloomberg Intelligence. They cover two thousand companies and one hundred and thirty industries worldwide. And Friday means the end of the second quarter, we will be halfway through the year. So it's that time where we're getting all the mid year outlooks, which are super helpful, particularly from Bloomberg Intelligence and joining us in studio as Michael Halen, He's consumer Products senior Bloomberg Intelligence industry analyst.

Michael in studio, We're very excited about this.

Michael in studio, We're very excited about this.

I'm excited too.

I'm excited too.

Thanks for joining. He finally came in.

Thanks for joining. He finally came in.

Yeah.

Yeah.

Yeah, I was digging through my junk drawer, but I found it.

Yeah, I was digging through my junk drawer, but I found it.

We found it. It was just important.

We found it. It was just important.

Well, I mean, is New Jersey Transit even running? I think is more of the question.

Well, I mean, is New Jersey Transit even running? I think is more of the question.

It's tough.

It's tough.

Nice.

Nice.

Okay, So midyear outlook give us the broad sweeps, like what are you expecting for the back half, and then we can get to specific stocks.

Okay, So midyear outlook give us the broad sweeps, like what are you expecting for the back half, and then we can get to specific stocks.

Yeah, sure, you know, broad sweeps. I'd say sales are probably looking a little bit better just because than they were in the first half. Because the year over year comparisons are getting easier. Higher income consumers should have money to spend, right, we see we see stock markets at all time highs, bitcoins having a rough day, but not far off the highs, and home prices have held in despite the higher rates, so that those should kind of buoy restaurants sales. But on the other end, the other end of the k, the low income consumers continue to struggle. You know, consumers under seventy five thousand were cited by Darden the other day on their earnings call is struggling, especially consumers you know that are earning less than fifty thousand. So we have kind of a push and a pull there. You know, Margins are okay, you know.

Yeah, sure, you know, broad sweeps. I'd say sales are probably looking a little bit better just because than they were in the first half. Because the year over year comparisons are getting easier. Higher income consumers should have money to spend, right, we see we see stock markets at all time highs, bitcoins having a rough day, but not far off the highs, and home prices have held in despite the higher rates, so that those should kind of buoy restaurants sales. But on the other end, the other end of the k, the low income consumers continue to struggle. You know, consumers under seventy five thousand were cited by Darden the other day on their earnings call is struggling, especially consumers you know that are earning less than fifty thousand. So we have kind of a push and a pull there. You know, Margins are okay, you know.

We would like to see better sales because that's really.

We would like to see better sales because that's really.

What drives most of the margin expansion in that business. Right There's a lot of operating leverage in the model, so so maybe some modest margin expansion. And the stocks generally haven't done so well this year, you know. You know what we wrote is that we we think we're going to see a larger spread between the stock market, you know, the market share winners and losers this year, you know, which we've largely seen in the first half.

What drives most of the margin expansion in that business. Right There's a lot of operating leverage in the model, so so maybe some modest margin expansion. And the stocks generally haven't done so well this year, you know. You know what we wrote is that we we think we're going to see a larger spread between the stock market, you know, the market share winners and losers this year, you know, which we've largely seen in the first half.

You've seen stocks like Chipotle, you.

You've seen stocks like Chipotle, you.

Know, actually absolutely knocked the cover off the ball again and and really appreciate where where other chains like Darden you know, actually, I'm sorry, Darden's done pretty well, like blooming I should say, is kind of struggled in the first half, and you've seen that stock, you know, sell off pretty precipitously.

Know, actually absolutely knocked the cover off the ball again and and really appreciate where where other chains like Darden you know, actually, I'm sorry, Darden's done pretty well, like blooming I should say, is kind of struggled in the first half, and you've seen that stock, you know, sell off pretty precipitously.

Talk to us about California and their new minimum wage law. What's the impact been on the fast food business?

Talk to us about California and their new minimum wage law. What's the impact been on the fast food business?

We have like a famous Hollywood restaurant closed because of that, like the famous like Hollywood Donalds or something.

We have like a famous Hollywood restaurant closed because of that, like the famous like Hollywood Donalds or something.

Oh, San Fran, Yeah, San Fran closed, Yeah, yeah, So it's not been.

Oh, San Fran, Yeah, San Fran closed, Yeah, yeah, So it's not been.

Good so far. April results were.

Good so far. April results were.

Kind of in line with the US in terms of same star sales at quick service restaurants. But I think everybody went in April and then they had got sticker shock and they did not return in May.

Kind of in line with the US in terms of same star sales at quick service restaurants. But I think everybody went in April and then they had got sticker shock and they did not return in May.

So the McDonald's are the world the restaurants in general California. Are they raising prices to cover their.

So the McDonald's are the world the restaurants in general California. Are they raising prices to cover their.

Higher labor Yeah, high single digits is typical, which is a lot, and and that's not even covering it because the traffic loss that that that we've seen here in May, it's it's not even gonna cover it. So they may even have to raise prices again if they can.

Higher labor Yeah, high single digits is typical, which is a lot, and and that's not even covering it because the traffic loss that that that we've seen here in May, it's it's not even gonna cover it. So they may even have to raise prices again if they can.

Quick Service.

Quick Service.

Uh, California Same Star sales underperformed by almost four hundred basis points in May versus the US. Yeah, so you know, what we wrote is that we expect quick service to continue to outperform casual dining just because it's a cheaper check. Even though it's gotten all the bad press about the eighteen dollars big Mac meal twenty two dollars smash Burger meal, it's still you can eat there a lot cheaper on the value menu and stuff like that. Also, you know, chains are starting to discount more Burger King and McDonald's five dollars meals, things of that nature. But California is definitely gonna weigh on quick service growth throughout your end for sure.

Uh, California Same Star sales underperformed by almost four hundred basis points in May versus the US. Yeah, so you know, what we wrote is that we expect quick service to continue to outperform casual dining just because it's a cheaper check. Even though it's gotten all the bad press about the eighteen dollars big Mac meal twenty two dollars smash Burger meal, it's still you can eat there a lot cheaper on the value menu and stuff like that. Also, you know, chains are starting to discount more Burger King and McDonald's five dollars meals, things of that nature. But California is definitely gonna weigh on quick service growth throughout your end for sure.

So as the k shape recovery grows even wider, it feels like, so do the valuations of those companies that service those two lines.

So as the k shape recovery grows even wider, it feels like, so do the valuations of those companies that service those two lines.

Is that a fair statement?

Is that a fair statement?

Yeah?

Yeah?

If you if you're a chain that can attract high end, can high income consumers like Chipotle's done such a good job of doing and McDonald's has done a good job of it as well since since the start of the pandemic.

If you if you're a chain that can attract high end, can high income consumers like Chipotle's done such a good job of doing and McDonald's has done a good job of it as well since since the start of the pandemic.

Chipotle is their Wednesday day, Paul, It varies, but it's seven one day week they get Chipotle.

Chipotle is their Wednesday day, Paul, It varies, but it's seven one day week they get Chipotle.

But here's a funny Chipotle story.

But here's a funny Chipotle story.

They got slammed in social media for like underfilling their time and things like that. Now they've gone overboard and they overfilled them. So the net result for me, instead of getting three hard tacos with chicken and I'll give you the whole order later, I only get two.

They got slammed in social media for like underfilling their time and things like that. Now they've gone overboard and they overfilled them. So the net result for me, instead of getting three hard tacos with chicken and I'll give you the whole order later, I only get two.

Oh, there you go.

Oh, there you go.

So it's got to be hurting their sales. So that is an interesting tidbit.

So it's got to be hurting their sales. So that is an interesting tidbit.

Yeah, so we were thinking about doing some work into it, but we haven't done anything yet all right here, but there was definitely some heat and some shade thrown at Chipotle for a little while there.

Yeah, so we were thinking about doing some work into it, but we haven't done anything yet all right here, but there was definitely some heat and some shade thrown at Chipotle for a little while there.

I'm gonna say a year and a half ago, somebody came in here. This is kind of the beginning of this whole AI thing, And somebody came in to this studio and said, one of the biggest areas is going to be like, for example, drive through going through a drive through McDonald's, it's gonna be all AI blah blah blah blah blah. So my question to you is, are local I don't know McDonald's or Burger Kings, did they have fewer employees because they're using technology or at all like that?

I'm gonna say a year and a half ago, somebody came in here. This is kind of the beginning of this whole AI thing, And somebody came in to this studio and said, one of the biggest areas is going to be like, for example, drive through going through a drive through McDonald's, it's gonna be all AI blah blah blah blah blah. So my question to you is, are local I don't know McDonald's or Burger Kings, did they have fewer employees because they're using technology or at all like that?

Well, they have tried to cut labor hours in other ways, that's a goal using AI, for sure.

Well, they have tried to cut labor hours in other ways, that's a goal using AI, for sure.

Uh.

Uh.

It's been harder though at the drive through then anticipated a lot of things just like accents, you know, you know, something like that. You know, actually is is has caused some issues something else there. Uh, they're also using AI with these cameras that are using AI to see if orders are being played packaged correctly, you know, since takeout and delivery has become such.

It's been harder though at the drive through then anticipated a lot of things just like accents, you know, you know, something like that. You know, actually is is has caused some issues something else there. Uh, they're also using AI with these cameras that are using AI to see if orders are being played packaged correctly, you know, since takeout and delivery has become such.

A big part of these businesses.

A big part of these businesses.

But uh, you know, one of the companies that was doing that got caught using people in India watching like screens.

But uh, you know, one of the companies that was doing that got caught using people in India watching like screens.

Videos supposedly quote unquote AI.

Videos supposedly quote unquote AI.

So we're not quite there yet with the AI in that.

So we're not quite there yet with the AI in that.

That's interesting.

That's interesting.

It's like the practical application, like how it really makes the difference. We may not quite be there yet. Here's my question if you and Ken Shae Fromloomberg Intelligence, who covers many things but in particular he covers all the cannabis companies got together, like what is your interplay between you guys?

It's like the practical application, like how it really makes the difference. We may not quite be there yet. Here's my question if you and Ken Shae Fromloomberg Intelligence, who covers many things but in particular he covers all the cannabis companies got together, like what is your interplay between you guys?

And I'm not actually trying to be that funny, but like you know, with all the.

And I'm not actually trying to be that funny, but like you know, with all the.

Weed stores coming up and you can get kind of cannabis anywhere in many places, Like, does that have a direct impact on the companies that you cover? Like have you noticed something along those lines?

Weed stores coming up and you can get kind of cannabis anywhere in many places, Like, does that have a direct impact on the companies that you cover? Like have you noticed something along those lines?

They haven't necessarily necessarily attributed any you know, lower alcohol sales to that, you.

They haven't necessarily necessarily attributed any you know, lower alcohol sales to that, you.

Know, or like more food sales or like runchy sales.

Know, or like more food sales or like runchy sales.

Yeah.

Yeah.

I mean, you know, we've had some of our companies like Jack in the Box and other companies that do a big late night business kind of lean into that stuff on their advertising. You know, they've used snoop you know, and some of their stuff. I think ice Cube now is.

I mean, you know, we've had some of our companies like Jack in the Box and other companies that do a big late night business kind of lean into that stuff on their advertising. You know, they've used snoop you know, and some of their stuff. I think ice Cube now is.

But on the flip side of that, is the GLP one situation true?

But on the flip side of that, is the GLP one situation true?

Because is that real? Because your company has called it out.

Because is that real? Because your company has called it out.

Yeah, but like the panic over it seems to have uh subsided.

Yeah, but like the panic over it seems to have uh subsided.

Is it real? Yeah? But there's still a lot of question marks.

Is it real? Yeah? But there's still a lot of question marks.

You know.

You know.

Uh, there is definitely concern because like people are less likely to go to fast food restaurants like there's a lot of people saying they feel sick eating fast food on GLP ones.

Uh, there is definitely concern because like people are less likely to go to fast food restaurants like there's a lot of people saying they feel sick eating fast food on GLP ones.

There's a lot lower alcohol.

There's a lot lower alcohol.

Consumption on GLP one. So it's definitely something that's being monitored. But right now it's still like such a small it's just had such small distributions so far. I think what's going to be more of a concern is once it's in a in a pill or something that's easier than a shot.

Consumption on GLP one. So it's definitely something that's being monitored. But right now it's still like such a small it's just had such small distributions so far. I think what's going to be more of a concern is once it's in a in a pill or something that's easier than a shot.

Yeah, right, it's interesting.

Yeah, right, it's interesting.

So I'm looking at the S and P Restaurant Index VAT member returns. The second worst performing stock for restaurants is cracker Barrel Old Country. That kills me because I'm a huge advocate for Cracker brow So I don't know why this stock's not working.

So I'm looking at the S and P Restaurant Index VAT member returns. The second worst performing stock for restaurants is cracker Barrel Old Country. That kills me because I'm a huge advocate for Cracker brow So I don't know why this stock's not working.

All right, all right, I'm going to improve by breakfast.

All right, all right, I'm going to improve by breakfast.

All right, Michael Halen, Bloomberg Intelligence, Thank you very much.

All right, Michael Halen, Bloomberg Intelligence, Thank you very much.

This is Bloombergen.

This is Bloombergen.

You're listening to the Bloomberg Intelligence podcast cat I have week days at ten am Eastern on applecar Play and Android Auto with the Bloomberg Business Act. You can also listen live on Amazon Alexa from our flagship New York station just Say Alexa playing Bloomberg eleven thirty.

You're listening to the Bloomberg Intelligence podcast cat I have week days at ten am Eastern on applecar Play and Android Auto with the Bloomberg Business Act. You can also listen live on Amazon Alexa from our flagship New York station just Say Alexa playing Bloomberg eleven thirty.

Well for the month of June, Bloomberg Radio is committed to bringing new segments and guests focus on the topic of equality. Today, we're speaking with Mike Heider, President and CEO of Executive Leadership Council. Mike, thanks so much for joining us here. Tell us what the Executive Leadership Council is.

Well for the month of June, Bloomberg Radio is committed to bringing new segments and guests focus on the topic of equality. Today, we're speaking with Mike Heider, President and CEO of Executive Leadership Council. Mike, thanks so much for joining us here. Tell us what the Executive Leadership Council is.

What are you guys doing over there?

What are you guys doing over there?

Well, it's good. Thank you for having me. It's nice to be here. I appreciate it. The Executive leaders of Council, otherwise known as the ELC, we're an organization of the highest ranking black executives in global organizations worldwide with a commitment to the leadership and development of talent in corporations.

Well, it's good. Thank you for having me. It's nice to be here. I appreciate it. The Executive leaders of Council, otherwise known as the ELC, we're an organization of the highest ranking black executives in global organizations worldwide with a commitment to the leadership and development of talent in corporations.

Been around thirty eight years.

Been around thirty eight years.

Right, good stuff.

Right, good stuff.

What are you finding these days? Just in terms of overall that DEI concept which had been ascending for many years and for some people feels.

What are you finding these days? Just in terms of overall that DEI concept which had been ascending for many years and for some people feels.

Like it may have peaked. How how do you view that commitment?

Like it may have peaked. How how do you view that commitment?

Well, the diversity, equity and inclusion is and continues to be a very strong element and element for organizations that are beneficial for them. Unfortunately, there's a lot of heated rhetoric about the diversity, equity, inclusion I guess being perceived as reverse discrimination, which we don't. We fundamentally disagree with that assertion. It is failing to sort of readdress the facts that diversity equity inclusion has actually been benefited the United States economy over the years with its But it just has to be folks as properly if in order for that to happen.

Well, the diversity, equity and inclusion is and continues to be a very strong element and element for organizations that are beneficial for them. Unfortunately, there's a lot of heated rhetoric about the diversity, equity, inclusion I guess being perceived as reverse discrimination, which we don't. We fundamentally disagree with that assertion. It is failing to sort of readdress the facts that diversity equity inclusion has actually been benefited the United States economy over the years with its But it just has to be folks as properly if in order for that to happen.

How do we do that, How does that? How is it focused properly? And one of the steps that need to be taken.

How do we do that, How does that? How is it focused properly? And one of the steps that need to be taken.

Now the steps should be the diversity equity inclusion should be considered the impetus behind superior business performance, increase access and opportunity for development for all people, and that the focusing on increasing building corporate culture to increase and enhance the engagement of as many employees as possible is what diversity equity inclusion means.