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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Can we bring you all the top news in business and economics and finance. There are lens of our Bloomberg Intelligence folks. They cover two thousand companies and one hundred and thirty industries all around the world. They also cover commodities, and for that we go to Mike and Glohan, Bloomberg Intelligence senior commodity strategist. Mike. The news that Bloomberg broke yesterday is that US tariffs on copper imports would be coming within several weeks before a conclusion that was going to take like two hundred and seventy days. Can we just do like a primer here when we say copper imports, were talking like the stuff that comes out of the ground. Are we talking like refined things? Are we talking like copper wires? Do we have an idea yet of what that looks like?

Can we bring you all the top news in business and economics and finance. There are lens of our Bloomberg Intelligence folks. They cover two thousand companies and one hundred and thirty industries all around the world. They also cover commodities, and for that we go to Mike and Glohan, Bloomberg Intelligence senior commodity strategist. Mike. The news that Bloomberg broke yesterday is that US tariffs on copper imports would be coming within several weeks before a conclusion that was going to take like two hundred and seventy days. Can we just do like a primer here when we say copper imports, were talking like the stuff that comes out of the ground. Are we talking like refined things? Are we talking like copper wires? Do we have an idea yet of what that looks like?

Well, for me, it's a refined copper.

Well, for me, it's a refined copper.

The US imports about fifty percent, one of the few commodities that we have a deficit of. Obviously, it's spiking up, but what you mentioned is still it hasn't happened yet. Market's anticipating up to twenty five percent tariffs, and the price the CME US traded copper has jumped about twenty percent premium versus ALMA traded copper. So it's already priced in and we still haven't had it. And I think we're at the point where the market the Trump administrators is going to be realized. Okay, Yeah, we need to kind of reduce inflation, increase American productivity in American onshoing production to US. If we spite the price of copper too much, that's not going to help our goals. So I'm kind of worried now that copper is at that huge premium.

The US imports about fifty percent, one of the few commodities that we have a deficit of. Obviously, it's spiking up, but what you mentioned is still it hasn't happened yet. Market's anticipating up to twenty five percent tariffs, and the price the CME US traded copper has jumped about twenty percent premium versus ALMA traded copper. So it's already priced in and we still haven't had it. And I think we're at the point where the market the Trump administrators is going to be realized. Okay, Yeah, we need to kind of reduce inflation, increase American productivity in American onshoing production to US. If we spite the price of copper too much, that's not going to help our goals. So I'm kind of worried now that copper is at that huge premium.

It's the highest price ever.

It's the highest price ever.

And so give you example, right us Coppyer right now is a break down right now about five dollars and thirty cents a pound.

And so give you example, right us Coppyer right now is a break down right now about five dollars and thirty cents a pound.

It's the highest ever.

It's the highest ever.

The equivalent in London is about four dollars and fifty cents.

The equivalent in London is about four dollars and fifty cents.

So can we just all explain that for a second.

So can we just all explain that for a second.

Yes, please? Is that.

Yes, please? Is that.

It's been a light bulb.

It's been a light bulb.

For me today because I did all explain this to polling commerce great, but in fairness, he asked, So the Comax price, which is the US listed price, is by pound, and that's versus tons, which is in the London exchange, and there's two thousand pounds per ton, So that's how you get the price to scrap and seeing kind of.

For me today because I did all explain this to polling commerce great, but in fairness, he asked, So the Comax price, which is the US listed price, is by pound, and that's versus tons, which is in the London exchange, and there's two thousand pounds per ton, So that's how you get the price to scrap and seeing kind of.

Where we're at, you wire, Mike, do you arbitrash at do you it's moniest people start trush?

Where we're at, you wire, Mike, do you arbitrash at do you it's moniest people start trush?

Oh yeah, well they're doing it now. Yeah, Alex is all from a trader standpoint. That's why I look at it, Saratra. So I just take that London price converted to pounds and you can see over time it's been the same spread forever since we have data since nineteen ninety seven for that, and now it's twenty percent higher in the US.

Oh yeah, well they're doing it now. Yeah, Alex is all from a trader standpoint. That's why I look at it, Saratra. So I just take that London price converted to pounds and you can see over time it's been the same spread forever since we have data since nineteen ninety seven for that, and now it's twenty percent higher in the US.

That's just never happened. So I think what that is.

That's just never happened. So I think what that is.

That's indicative of the how profound these tariffs are.

That's indicative of the how profound these tariffs are.

I mean, this is a shift in the global world order. Post World War Two.

I mean, this is a shift in the global world order. Post World War Two.

Well, the rest of the world was able to depend on exporting stuff to the US.

Well, the rest of the world was able to depend on exporting stuff to the US.

That's changing now.

That's changing now.

Copper is one of the things we do import. But look at things like crueil. We have a surplus to cr crudels down, we have a surplus of grains corn, So I mean sweet, they're having pressure coppers at the forefront right now. I just look at it in the short term. This is a trader's trade. I look at it as a trader. I'm like, yeah, I might be structuring put strategies. I've been wrong so far, admitted, But you know what the next in one tweet, it can drop twenty percent and just go right back to parody with what's trading in the rest of the world.

Copper is one of the things we do import. But look at things like crueil. We have a surplus to cr crudels down, we have a surplus of grains corn, So I mean sweet, they're having pressure coppers at the forefront right now. I just look at it in the short term. This is a trader's trade. I look at it as a trader. I'm like, yeah, I might be structuring put strategies. I've been wrong so far, admitted, But you know what the next in one tweet, it can drop twenty percent and just go right back to parody with what's trading in the rest of the world.

And is that how you think about valuation in this market, the copper market. Is it Chicago versus lineners? And another way to get a sense of val valuation?

And is that how you think about valuation in this market, the copper market. Is it Chicago versus lineners? And another way to get a sense of val valuation?

Are we stretched? Well? I love using that word in this case, Paul.

Are we stretched? Well? I love using that word in this case, Paul.

What usually happens if if you can identify spikes and commodizy and be on board people are doing that in copper, You're doing fine. The point is, almost every time you get an aberration and a commodity spikes like this, it always go down. What's the most recent example, Eggs? I mean they spike up for a little while, we find supply cut off the man and they go down.

What usually happens if if you can identify spikes and commodizy and be on board people are doing that in copper, You're doing fine. The point is, almost every time you get an aberration and a commodity spikes like this, it always go down. What's the most recent example, Eggs? I mean they spike up for a little while, we find supply cut off the man and they go down.

So just a question how far it goes.

So just a question how far it goes.

What's unique in this case is last year we could really see in futures driving that price higher.

What's unique in this case is last year we could really see in futures driving that price higher.

Manage money, hedge funds, future positions, we're driving it higher.

Manage money, hedge funds, future positions, we're driving it higher.

They got up to about thirty two percent of total copp and open interests. Now they're nine to ten percent. They don't really care because I think they know what's happening. We're squeezing a few shorts. You just can't see how obnoxious it is. And at some point, I just don't know how it can stay up here, particularly if the US stock market continues to trickle down, which is the base case from people like Gina Martin Aadams.

They got up to about thirty two percent of total copp and open interests. Now they're nine to ten percent. They don't really care because I think they know what's happening. We're squeezing a few shorts. You just can't see how obnoxious it is. And at some point, I just don't know how it can stay up here, particularly if the US stock market continues to trickle down, which is the base case from people like Gina Martin Aadams.

So using these arms to trade like is nothing new, and we see a lot of these dislocations a lot too, especially if you factor in Shanghai copper as well, and like how you then store it and then playing it. Typically, when these distortions happen, how do they wind up resolving?

So using these arms to trade like is nothing new, and we see a lot of these dislocations a lot too, especially if you factor in Shanghai copper as well, and like how you then store it and then playing it. Typically, when these distortions happen, how do they wind up resolving?

Well, usually it's some kind of fear futures. You have to move copper towards the US. How you get there into inventory is kind of complicated. Usually it's it's just a matter of how why it goes before it goes back to disparity, back to parody, and question is how it does that, And that's key things I'm looking forward to. What can make that happen. First of all, time, it's not gonna last too long. It's just markets will markets will move to where prices will benefit. And then the key thing is you have to worry about if you're long US copper, you have to worry about just the next social media a tweet from a Trump administration fish might say, yeah, we were going to do twenty five percent terffs, Maybe we're going to do ten to fifteen percent because the copper price is telling us we might be a big extreme here.

Well, usually it's some kind of fear futures. You have to move copper towards the US. How you get there into inventory is kind of complicated. Usually it's it's just a matter of how why it goes before it goes back to disparity, back to parody, and question is how it does that, And that's key things I'm looking forward to. What can make that happen. First of all, time, it's not gonna last too long. It's just markets will markets will move to where prices will benefit. And then the key thing is you have to worry about if you're long US copper, you have to worry about just the next social media a tweet from a Trump administration fish might say, yeah, we were going to do twenty five percent terffs, Maybe we're going to do ten to fifteen percent because the copper price is telling us we might be a big extreme here.

So there's a lot of nuances.

So there's a lot of nuances.

But the thing is, the risk is you can turn around one day and what's been up thirty percent this year can drop thirty percent or twenty percent in a heartbeat.

But the thing is, the risk is you can turn around one day and what's been up thirty percent this year can drop thirty percent or twenty percent in a heartbeat.

All right, So we've talked about terraffs and copper, other other commodities that you're paying attention to, Mike, as it relates to.

All right, So we've talked about terraffs and copper, other other commodities that you're paying attention to, Mike, as it relates to.

Tariffs, that's the main one steal is in there.

Tariffs, that's the main one steal is in there.

But I'm steel's kind of a bit out of my purview because it doesn't trade a lot in actively trade of futures, but copper is the number one right now. But I like to point out the key thing that's really happening is because we're having this trade war, I guess trade war you could call it. It's the surplus commodities in the US that are major under pressure, and that means crude oil, liquid fuels, natural gas potentially at a peak around four and the grains. If we do have truce in Ukraine Russia, grains are already in the bear market, will pressure them lower.

But I'm steel's kind of a bit out of my purview because it doesn't trade a lot in actively trade of futures, but copper is the number one right now. But I like to point out the key thing that's really happening is because we're having this trade war, I guess trade war you could call it. It's the surplus commodities in the US that are major under pressure, and that means crude oil, liquid fuels, natural gas potentially at a peak around four and the grains. If we do have truce in Ukraine Russia, grains are already in the bear market, will pressure them lower.

They wouldn't have to depend on the US drought to go up in my view.

They wouldn't have to depend on the US drought to go up in my view.

And gold, what do you think still going to rock and high here?

And gold, what do you think still going to rock and high here?

That can still blush away?

That can still blush away?

I see goal that it's reached a good threshold of three thousand dollars and ounce, it's pretty much overbought.

I see goal that it's reached a good threshold of three thousand dollars and ounce, it's pretty much overbought.

It basically needs bull fuel, and that bull fuel the top source of that be the US stock market going down, which we know is basically deflation or good for gold, would probably maybe tilt over and help you as longbos.

It basically needs bull fuel, and that bull fuel the top source of that be the US stock market going down, which we know is basically deflation or good for gold, would probably maybe tilt over and help you as longbos.

All right, Mike, really appreciate you, Thank you so much. Mike mcglohm Boomerg Intelligence Senior Commodity strategistm.

All right, Mike, really appreciate you, Thank you so much. Mike mcglohm Boomerg Intelligence Senior Commodity strategistm.

You're listening to the Bloomberg Intelligence podcast. Catch us live weekdays at ten am Eastern on Applecarcklay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube.

You're listening to the Bloomberg Intelligence podcast. Catch us live weekdays at ten am Eastern on Applecarcklay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube.

Sally Bigwall joints us she's Bloomberg US Finance team leader on a story. I like to read it, and just by definition, it's going to be one of the most read stories on the Bloomberg termninel Today. Wall Street bonus pool surges to a record forty seven point five billion for twenty twenty four, So, Sally, I mean a good year on Wall Street. It seems like people are getting paid, aren't they?

Sally Bigwall joints us she's Bloomberg US Finance team leader on a story. I like to read it, and just by definition, it's going to be one of the most read stories on the Bloomberg termninel Today. Wall Street bonus pool surges to a record forty seven point five billion for twenty twenty four, So, Sally, I mean a good year on Wall Street. It seems like people are getting paid, aren't they?

People are getting paid. I think it was largely driven by a grete twenty twenty four, we started to see deals bouncing back, but I think a big part of this was also the volatility in trading created by the election. I mean, we reported in December that executives a top the biggest banks were locking in plans to award traders and deal makers the biggest bonuses since the pandemic, with some hikes as much as ten percent or more.

People are getting paid. I think it was largely driven by a grete twenty twenty four, we started to see deals bouncing back, but I think a big part of this was also the volatility in trading created by the election. I mean, we reported in December that executives a top the biggest banks were locking in plans to award traders and deal makers the biggest bonuses since the pandemic, with some hikes as much as ten percent or more.

How much of this is actual results versus just the competition for talent.

How much of this is actual results versus just the competition for talent.

With a little bit of a result sprinkled in.

With a little bit of a result sprinkled in.

I think this is probably really more reflective of the results. But obviously lifting bonuses faster can help ensure that employees stay stay around for more business to come. And initially the beginning of this year and toward the end of last year, you know, we expected a big deal rebound, so that seemed much more important than it does perhaps now that things are a little more uns on Trump's tariff policies, which are kind of clouding that rebound, which in turn sort of makes the talent less of an in demand thing. Potentially.

I think this is probably really more reflective of the results. But obviously lifting bonuses faster can help ensure that employees stay stay around for more business to come. And initially the beginning of this year and toward the end of last year, you know, we expected a big deal rebound, so that seemed much more important than it does perhaps now that things are a little more uns on Trump's tariff policies, which are kind of clouding that rebound, which in turn sort of makes the talent less of an in demand thing. Potentially.

One of the more interesting parts of the story is that Wall Street employment has hit record levels. Now, I kind of thought this whole AI thing and automation and would have maybe cause head counter maybe come down, but there's still a lot of people working on global Wall Street.

One of the more interesting parts of the story is that Wall Street employment has hit record levels. Now, I kind of thought this whole AI thing and automation and would have maybe cause head counter maybe come down, but there's still a lot of people working on global Wall Street.

That is correct. I think the trend has generally been for employment to go up at Wall Street firms. Despite this, I think because so many of them are trying to modernize and improve their technology, that has caused them to need to hire more people and perhaps you know, and a lot of them also give this message that even with the advent of AI and using AI, actually we still need humans in order to choose.

That is correct. I think the trend has generally been for employment to go up at Wall Street firms. Despite this, I think because so many of them are trying to modernize and improve their technology, that has caused them to need to hire more people and perhaps you know, and a lot of them also give this message that even with the advent of AI and using AI, actually we still need humans in order to choose.

Humans.

Humans.

I mean, hey, as media people, let's take it. Let's take the win where we can get it. I guess the question is does this kind of pay out last? Because, as you mentioned rightly, that em and a boom that we've been waiting for hasn't happened. The IPO market being wide open has barely happened. We have a couple that are squeaking through and until the uncertainty settles down, like, it's hard to see that actually panning out.

I mean, hey, as media people, let's take it. Let's take the win where we can get it. I guess the question is does this kind of pay out last? Because, as you mentioned rightly, that em and a boom that we've been waiting for hasn't happened. The IPO market being wide open has barely happened. We have a couple that are squeaking through and until the uncertainty settles down, like, it's hard to see that actually panning out.

Yeah, I mean the banks have a lot of the bank executives are now outwardly saying that certain things are on pause, certain things are frozen because big sort of deals, big companies with deals, they absolutely don't want to come out and hit the market in this sort of uncertain environment. We have seen a few but the general message that Wall Street is very open about is that things are on a bit of a holding pattern at the moment.

Yeah, I mean the banks have a lot of the bank executives are now outwardly saying that certain things are on pause, certain things are frozen because big sort of deals, big companies with deals, they absolutely don't want to come out and hit the market in this sort of uncertain environment. We have seen a few but the general message that Wall Street is very open about is that things are on a bit of a holding pattern at the moment.

He stally, can I ask a quick question, I like the ones about money because anyway, well, now from.

He stally, can I ask a quick question, I like the ones about money because anyway, well, now from.

The peanut gallery over here how much of the local economy, and I'm talking in New York State, New York City, Connecticut, New Jersey depend on Wall Street for tax revenue and et cetera, and so forth.

The peanut gallery over here how much of the local economy, and I'm talking in New York State, New York City, Connecticut, New Jersey depend on Wall Street for tax revenue and et cetera, and so forth.

Well, Wall Street is responsible for seventeen point seven percent of all economic activity in the city.

Well, Wall Street is responsible for seventeen point seven percent of all economic activity in the city.

Really, see were important.

Really, see were important.

And Wall Street also accounted for about nineteen percent of New York State's tax revenue between twenty three and twenty four, twenty twenty three and twenty twenty four. And the estimates we got today are that for twenty twenty four bonuses they'll generate about six hundred million more in state income tax. And obviously this is very important, particularly as New York City is sort of struggling somewhat with potential budget gaps created by cuts to federal funding. And New York City, you know that relies heavily on federal funding for various programs like Medicaid and the Essential Plan, so it does have an importance.

And Wall Street also accounted for about nineteen percent of New York State's tax revenue between twenty three and twenty four, twenty twenty three and twenty twenty four. And the estimates we got today are that for twenty twenty four bonuses they'll generate about six hundred million more in state income tax. And obviously this is very important, particularly as New York City is sort of struggling somewhat with potential budget gaps created by cuts to federal funding. And New York City, you know that relies heavily on federal funding for various programs like Medicaid and the Essential Plan, so it does have an importance.

Here here's another great data point in the story. New York Cities sheriff securities industry jobs naturally has declined to eighteen percent from about thirty three percent and nineteen ninety as financial firms move jobs to other regions.

Here here's another great data point in the story. New York Cities sheriff securities industry jobs naturally has declined to eighteen percent from about thirty three percent and nineteen ninety as financial firms move jobs to other regions.

To drive down costs Slarida.

To drive down costs Slarida.

Yeah, and it's like Goldman Sacks has got to get a big place in Salt Lake. Yeah, salt Lake. I mean they're all over there, just lower Clow.

Yeah, and it's like Goldman Sacks has got to get a big place in Salt Lake. Yeah, salt Lake. I mean they're all over there, just lower Clow.

You don't have to be here necessarily when you can go to a place with good weather.

You don't have to be here necessarily when you can go to a place with good weather.

Right, Deutsche Bank has a big, big place down in Jacksonville for example. You know, so you don't have to send these jobs off to India. You can just put them to the Midwest or the South or somewhere else, right me on that, Yeah, so interesting.

Right, Deutsche Bank has a big, big place down in Jacksonville for example. You know, so you don't have to send these jobs off to India. You can just put them to the Midwest or the South or somewhere else, right me on that, Yeah, so interesting.

Sally, Thanks love, We really appreciate it's a mustery guys. It's always really fun to dissect those stories. Sally Bank Well joining us on that Bloomberg US Finance team leader.

Sally, Thanks love, We really appreciate it's a mustery guys. It's always really fun to dissect those stories. Sally Bank Well joining us on that Bloomberg US Finance team leader.

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.

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.

Andrew sibnow joints us here. He's the CEO of International Paper. IP is the ticker. Put it into your Bloomberg terminally joints us here in our Bloomberg Interactives studios. Fact that you're in our studio makes me believe that you had an investor day we did yesterday.

Andrew sibnow joints us here. He's the CEO of International Paper. IP is the ticker. Put it into your Bloomberg terminally joints us here in our Bloomberg Interactives studios. Fact that you're in our studio makes me believe that you had an investor day we did yesterday.

Yeah, we had an investor d yesterday.

Yeah, we had an investor d yesterday.

Green What was the theme of the investor day today that you had yesterday?

Green What was the theme of the investor day today that you had yesterday?

Transformation? Okay, it's really about the transformation. I heard in the opening talking about international paper. Of course it's in our name, and so people think global paper. And the reality is is we're a packaging company now, so almost one hundred percent sustainable packaging.

Transformation? Okay, it's really about the transformation. I heard in the opening talking about international paper. Of course it's in our name, and so people think global paper. And the reality is is we're a packaging company now, so almost one hundred percent sustainable packaging.

With the acquisition of.

With the acquisition of.

DA Smith North America and Europe, we're number one in both places, and we're all focused on the customer and their packaging needs. You mentioned Chewy before, great customer for us and a wonderful opportunity to build their branding to help them be successful. That's what we're all about, is transforming into a packaging company.

DA Smith North America and Europe, we're number one in both places, and we're all focused on the customer and their packaging needs. You mentioned Chewy before, great customer for us and a wonderful opportunity to build their branding to help them be successful. That's what we're all about, is transforming into a packaging company.

So something that definitely came up is value over volume. You want to get the most out of what you're doing rather than just the numbers. Ups is doing something very similar and the short term, there's a lot of angst and pain kind of around that before you get to that volume.

So something that definitely came up is value over volume. You want to get the most out of what you're doing rather than just the numbers. Ups is doing something very similar and the short term, there's a lot of angst and pain kind of around that before you get to that volume.

After that value growth talk me through the cycle.

After that value growth talk me through the cycle.

Yeah, So if you think about we were our own worst enemy. So for years and years and years, we would chase volume at the most inopportunity time. And so what we've effectively had to do is go back to the marketplace and say we need to be paid for the value.

Yeah, So if you think about we were our own worst enemy. So for years and years and years, we would chase volume at the most inopportunity time. And so what we've effectively had to do is go back to the marketplace and say we need to be paid for the value.

That we're bringing. And that's what we do. We come into the marketplace.

That we're bringing. And that's what we do. We come into the marketplace.

We're trying to help you get your goods to the place do you want them to be, whether it's fast moving consumer goods or it's industrial goods, that's what we're.

We're trying to help you get your goods to the place do you want them to be, whether it's fast moving consumer goods or it's industrial goods, that's what we're.

Trying to help.

Trying to help.

But we've got to make sure that we're taking care of all of our constituents, and frankly, we weren't, and so we've got to get that value proposition right. I think we've made that switch over the last couple of years. We're seeing that start to play out appropriately and we're getting paid for the value that we bring.

But we've got to make sure that we're taking care of all of our constituents, and frankly, we weren't, and so we've got to get that value proposition right. I think we've made that switch over the last couple of years. We're seeing that start to play out appropriately and we're getting paid for the value that we bring.

You're building a state of the art box plant in Waterloo, Iowa, So talk about onshoing. That's big time. Two hundred and sixty million dollars. Talk to us about that investment. What are you trying to do there?

You're building a state of the art box plant in Waterloo, Iowa, So talk about onshoing. That's big time. Two hundred and sixty million dollars. Talk to us about that investment. What are you trying to do there?

So what a lot of people don't understand about the packaging business. Certainly the paper based packaging business is all of the business has done within two hundred miles a two hundred mile radius of a plant. And because you can't air as expensive as ship, and so you've got to be close.

So what a lot of people don't understand about the packaging business. Certainly the paper based packaging business is all of the business has done within two hundred miles a two hundred mile radius of a plant. And because you can't air as expensive as ship, and so you've got to be close.

So we want to be close to our best customers.

So we want to be close to our best customers.

That's protein Alley, So that area there's protein out, Protein Alley.

That's protein Alley, So that area there's protein out, Protein Alley.

Really think of the beef and the chicken before and so if you.

Really think of the beef and the chicken before and so if you.

Think about kind of kind of where protein happens in the United States from if you think of the South all the way through the Midwest through there. We want to be close to our customers. We have a great customer relationships. We need a modern facility. We're going to have the I think it's going to be the largest facility in the US that does paper based packaging. And we want to make sure because we're shipping in from other parts of the country now service those customers very ineffective, very inefficient.

Think about kind of kind of where protein happens in the United States from if you think of the South all the way through the Midwest through there. We want to be close to our customers. We have a great customer relationships. We need a modern facility. We're going to have the I think it's going to be the largest facility in the US that does paper based packaging. And we want to make sure because we're shipping in from other parts of the country now service those customers very ineffective, very inefficient.

We want to be local, we want to be close. We want to drive customer service and innovation as close to the customer.

We want to be local, we want to be close. We want to drive customer service and innovation as close to the customer.

As we can.

As we can.

International is in your name, So what how are you affected by potential tariffs? And everyone sort of every country shift to nationalism and whenever that way that is energy nationalism, goods nationalism, supply to nationalism.

International is in your name, So what how are you affected by potential tariffs? And everyone sort of every country shift to nationalism and whenever that way that is energy nationalism, goods nationalism, supply to nationalism.

Where do you play and that has affect you?

Where do you play and that has affect you?

Yeah, so we are.

Yeah, so we are.

We're definitely international company, principally North America and Europe.

We're definitely international company, principally North America and Europe.

We're about two thirds North America and a third Europe.

We're about two thirds North America and a third Europe.

We don't ship actually a lot cross borders, believe it or not, so that doesn't happen. So we're not being impacted directly by tariffs with crossboarder trade, but we're impacted by the economy, and so as tariffs impact the economy, that will have an impact of us. So we're watching what's going on and we see it in our numbers. We've seen the volatility in the last month or so, so we're keeping a close eye on that.

We don't ship actually a lot cross borders, believe it or not, so that doesn't happen. So we're not being impacted directly by tariffs with crossboarder trade, but we're impacted by the economy, and so as tariffs impact the economy, that will have an impact of us. So we're watching what's going on and we see it in our numbers. We've seen the volatility in the last month or so, so we're keeping a close eye on that.

But that's really how it impacts us.

But that's really how it impacts us.

What are your customers saying about their outlook for the economy. I would think that you would have a finger on the pulse of that.

What are your customers saying about their outlook for the economy. I would think that you would have a finger on the pulse of that.

Yeah, I think we do have a pretty good pulse. I think there's uncertainty, if we're fair about that. The last month or two or so, there's been some real uncertainty, and I think, well, nothing's really happened. Yet it's caused people to retrench a little bit and ask, hey, do I want to make that investment right now?

Yeah, I think we do have a pretty good pulse. I think there's uncertainty, if we're fair about that. The last month or two or so, there's been some real uncertainty, and I think, well, nothing's really happened. Yet it's caused people to retrench a little bit and ask, hey, do I want to make that investment right now?

Can I hold off on spending money right now? And let's see.

Can I hold off on spending money right now? And let's see.

Look, my belief is these things wash out over time, and we make investments for decades. We don't make investments for quarters or even years. And so we're thinking about investments for the long.

Look, my belief is these things wash out over time, and we make investments for decades. We don't make investments for quarters or even years. And so we're thinking about investments for the long.

Term in terms of say, hiring labor, how you're managing the business. Is it a retrenchman time, is it expansion? How would you define it.

Term in terms of say, hiring labor, how you're managing the business. Is it a retrenchman time, is it expansion? How would you define it.

For you guys?

For you guys?

Actually, interestingly, it's a little bit of both.

Actually, interestingly, it's a little bit of both.

Right.

Right.

What I mean by that you have yeah, you can. Actually, so when you think about.

What I mean by that you have yeah, you can. Actually, so when you think about.

That, you have certain parts of your business that aren't as strong or aren't as healthy, and you have other parts that are very healthy. So, as an example, protein alley very healthy for us. Let's make investments in water, rely on it. Let's move the the let's move people in this investment. There things that are weaker, things that are struggling or markets you're not as strong in, you have to retrench.

That, you have certain parts of your business that aren't as strong or aren't as healthy, and you have other parts that are very healthy. So, as an example, protein alley very healthy for us. Let's make investments in water, rely on it. Let's move the the let's move people in this investment. There things that are weaker, things that are struggling or markets you're not as strong in, you have to retrench.

So you have to do blame as those.

So you have to do blame as those.

Well you've got you've got softness in parts of the economy kind of broad base. You've got to be concerned about things that are going to shrink over time and things, you know, things like e commerce that are strong, things like protein and fresh vegetables, those are strong.

Well you've got you've got softness in parts of the economy kind of broad base. You've got to be concerned about things that are going to shrink over time and things, you know, things like e commerce that are strong, things like protein and fresh vegetables, those are strong.

You want to move towards those things.

You want to move towards those things.

And uh and so you know, we want to move our investment towards the parts of the economy that we think are going to expand over time, location and industry and and really you know, grow on those strengths.

And uh and so you know, we want to move our investment towards the parts of the economy that we think are going to expand over time, location and industry and and really you know, grow on those strengths.

So to the extent, if I think about your company, I think about a GDP top line growth story, is there anything different than that?

So to the extent, if I think about your company, I think about a GDP top line growth story, is there anything different than that?

I mean, that's it?

I mean, that's it?

And is it just so?

And is it just so?

Is your business really about managing the cost of managing margin?

Is your business really about managing the cost of managing margin?

No, it's not.

No, it's not.

Ok Yes, you always have to manage your cost, right, But the key thing is you want to align yourself with where growth is. Okay, I think that's the biggest thing. Bottom line though, is we're going to generally follow the economy. So yesterday in our in our investor day, we talked about a volume growth. It's kind of one to two percent that follows, you know, underlying volume growth and pricing power over time. It's also about one to two percent so we think we're three to four percent grower over time the core market. And then that question is can you align with better growing industries and can you win markets?

Ok Yes, you always have to manage your cost, right, But the key thing is you want to align yourself with where growth is. Okay, I think that's the biggest thing. Bottom line though, is we're going to generally follow the economy. So yesterday in our in our investor day, we talked about a volume growth. It's kind of one to two percent that follows, you know, underlying volume growth and pricing power over time. It's also about one to two percent so we think we're three to four percent grower over time the core market. And then that question is can you align with better growing industries and can you win markets?

Here, Andrew, thank you.

Here, Andrew, thank you.

So much for joining us. Really appreciate you taking a few minutes of your time here today. Andrew Cilnaire, he's the CEO of International Paper. No surprise, the ticker symbols ip logging it to your Bloomberg terminal. He joins us here in a Bloomberg INTERACTI appropriate studio. They the Investor Day yesterday. The stocks up forty five percent over the trailing twelve months, so it's had some pretty solid performance.

So much for joining us. Really appreciate you taking a few minutes of your time here today. Andrew Cilnaire, he's the CEO of International Paper. No surprise, the ticker symbols ip logging it to your Bloomberg terminal. He joins us here in a Bloomberg INTERACTI appropriate studio. They the Investor Day yesterday. The stocks up forty five percent over the trailing twelve months, so it's had some pretty solid performance.

This is the Bloomberg and Telligen's podcast, available on Apple, Spotify, and anywhere else you get your podcasts. Listen live each weekday ten am to noon 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 and Telligen's podcast, available on Apple, Spotify, and anywhere else you get your podcasts. Listen live each weekday ten am to noon 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