June 26, 2025 • 41 mins
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.
Andrew Cuomo’s loss is Eric Adams’ gain.
Just days ago, the New York City mayor faced steep reelection odds. His job-approval ratings had plunged to record lows after a federal corruption indictment. Support among Democrats fell even further when the Trump administration dropped the charges, raising questions about Adams’ indebtedness to the White House.But Adams, who dropped out of the campaign as a Democrat to run as an independent, is suddenly looking less toxic to a class of moderate voters.
The reason: The surprise ascendancy of democratic socialist Zohran Mamdani, a 33-year-old state assemblyman who crushed Cuomo in Tuesday’s primary election to become the all-but-certain Democratic nominee.
Now Cuomo’s backers — many of them opposed to Mamdani’s populist platform of taxing the wealthy and raising corporate levies — are discussing whether to pivot their support to Adams, according to people familiar with the matter. Those same donors are encouraging the former governor, who considered a run as an independent, to drop out of the race entirely to avoid being a spoiler, said the people, who asked not to be named discussing private conversations.
Today's show features:
- Bloomberg News New York politics reporter Laura Nahmias on Mayor Eric Adams relaunching his campaign following Zohran Mamdani's stunning primary performance
- Marc Morial, president and CEO at The National Urban League on Trump's tax bill and latest in Democratic politics
- Bloomberg Intelligence senior defense analyst Wayne Sanders on the latest intel on Iran, difficulty of a damage assessment
- Bloomberg Intelligence senior analyst for e-commerce, athleisure, off-price retail Poonam Gooyal on Nike earnings
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg Business
Weekdaily reporting from the magazine that helps global leaders stay
ahead with insight on the people, companies, and trends shaping
today's complex economy, plus global business, finance and tech news
(00:23):
as it happens. The Bloomberg Business Weekdaily Podcast with Carol
Masser and Tim Stenebeck on Bloomberg Radio.
Speaker 2 (00:32):
A Republican planned to cut two hundred and fifty billion
dollars in medicaid another healthcare spending hit a procedural roadblock
in the Senate today. It complicates efforts to pass Donald
Trump's massive tax and spending package. We go down to
Katherine Lucy, Bloomberg News White House correspondent, Catherine, is this
bill at risk as a result of cutting two hundred
and fifty billion dollars in medicaid?
Speaker 3 (00:54):
It just certainly slows this bill down. It certainly complicates it.
As you said said, what's an issue here is a
plan to cut two hundred and fifty billion in medicaid
and healthcare spending that the Senate parliamentarian has said they
can't move in this bill with the processes that they
are doing here. Leaders are saying they have time, that
(01:16):
they have plans they can do this, and I think
they are looking at ways to refashion this. But it
does take time to rewrite legislation. It does take time
to do this and to keep a sort of combative
a group of Republicans on board. So trying to keep
(01:36):
everyone rowing in the same direction is an issue. That said,
the event at the White House today is Donald Trump
trying to do just that. He is trying to rally
support behind this bill. He is aggressively pushing for it
to be passed by July fourth, He is personally a
lobbying for it, and so I think he's going to
pull out all the stops to try and make sure
(01:58):
that this happens.
Speaker 4 (01:59):
So what's the time? What does this due to the timeline? Right,
that's what everybody We know that there's a lot of
pressure Catherine on the President in the next couple of
weeks to get a bunch of stuff done, including trade
tariffs and of course his tax and spending bill. So
what's the timetable if there is a rewrite, how do
they do it? You're right, that's complicated, it's complicated.
Speaker 3 (02:21):
You know they are now working to do this and
we'll have to see how quickly they can come up with,
you know, a new version of it. I mean, I
think you guys know as well as anyone that Congress
never does anything until they're up against a hard deadline.
So things do happen when they feel like they're just
against the wall. So there is a little bit of that.
(02:43):
But I think you are really going to see an
aggressive effort by the President who really wants to do
this by July for them, and we'll see if he
can make it happen. But it is I mean, this
is his main legislative focus, you know that, you know,
for this term, this is his top legislative priority, and
he and Republicans really think that they need to pass
this to have something to run on next year in
(03:05):
the midterms, so it is a top priority.
Speaker 4 (03:08):
All right, good stuff. We wanted to check in and
find out what kind of where we are on this,
so really appreciate it. Catherine Lucy. She has Bloomberg News
White House correspondent joining us from our bureau in the
nation's capital.
Speaker 2 (03:19):
Well from the nation's capital to the financial capital of
the world. We are of course talking about New York City,
where Andrew Cuomo's loss is Eric adams game. Just days ago,
the New York City mayor faced steep reelection odds, but Adams,
who dropped out of the campaign as a Democrat to
run as an independent, is suddenly looking less toxic to
a class of moderate voters. Laura Namius is Bloomberg News
(03:41):
New York politics reporter. She joins us here in the
Bloomberg Interactive Brokers studio. Laura, you were honor with us
earlier this week, and you said, don't count out Eric Adams, right, essentially,
and that's what the strategists have been telling you. But
I think a lot of the public had said, you know,
after the challenges he faced and him dropping off the
Democratic tick, he's kind of done.
Speaker 5 (04:01):
He's not so done now he's not so done, in
part because of the drastic underperformance of Andrew Cuomo in
the primary. I think toward then there, Cuomo backers were
maybe expecting the race to be close. They didn't expect
Andrew Cuomo to be losing on the first ballot in
this contest by more than six percentage points, a gap
(04:21):
that's likely to widen next week when all of the
ballots are fully counted. Despite the fact that he had
an insane money advantage over every other candidate in the race,
including a twenty five million dollars super pack backing his candidacy.
So they're wondering, if he couldn't win this, can he
win the whole thing? And should Cuomo drop out and
(04:41):
consolidate behind a different moderate candidate, maybe Eric Adams, so
that he doesn't play spoiler in hand the election to
Mom Donnie or a Republican Curtis Lee was running on
the GOP line Laura.
Speaker 4 (04:54):
Eric Adams looking less toxic is still toxic. So I'm
just curious, like how that plays politically.
Speaker 5 (05:00):
That remains to be seen. We haven't seen fresh polling
that's non partisan post primary, but the most recent poll
numbers for Eric Adams are terrible. He was polling in
the teens. His favorability in New York City among voters
was in the teens. Like seventy percent of New Yorker's
disapproved of the job that he was doing as mayor
as recently as a month ago.
Speaker 4 (05:21):
So it's not an.
Speaker 5 (05:22):
Easy path to victory. But there's some thinking that maybe
if people are disenchanted enough with the idea of a
Mom Donnie candidacy they could get behind in Eric Adams.
Speaker 2 (05:31):
One, have you heard anything? So there's the supporters of
former Governor Cuomo. Yes, And we should note that Michael Bloomberg,
the founder of Bloomberg LP, the parent company of Bloomberg Radio,
did support Governor Cuomo ahead of the primary. Do you
supporters of Have any supporters of Governor Cuomo come and said,
(05:53):
wait a second, we can now support Mom Donnie.
Speaker 5 (05:56):
So here's what's going on. Donors are having a conversation.
There are also some powerful backers of Andrew Cuomo who
are labor unions, and right now conversations are happening with
labor unions about who they are going to pivot toward
backing in the general and we are hearing from some
sources that it's likely that a lot of them are
going to coalesce behind Mom Donnie. Their agenda largely dovetails
(06:21):
with some of the things he said he wants. That's
very different from some of the donors who backed Cuomo
who are in finance or real estate, who are seeing
some of Mom Donnie's policies around rent control, around taxes
as like an existential threat. But those conversations are happening
right now. It's fair to say that a lot of
conversations are happening, and that there's maybe a panicked air
(06:42):
to some of the conversations they're going on right now.
It's likely or that the unions might back Mom Donnie
than some of the big money backers.
Speaker 4 (06:49):
Yeah, no, that's really fascinating, right, Like, you know, where
there's politics, there's money, and where there's money, there's politics.
But it's just like you do wonder if ultimately Cuomo
is out. You know, what's the assumption about a lot
of those you know, a lot of the political donations.
Does it automatically go to Adams like we could.
Speaker 5 (07:08):
See so in twenty thirteen, if people will remember back then,
Christine Quinn was the favorite of moderates and a lot
of people in finance in the Democratic mayoral primary. She lost,
build a Blasio ultimately won. There was an effort to
consolidate support behind Deblasio because it was thought that he
was going to face a competitive general election against Joe Lodo,
the Republican at the time, and a lot of people
(07:30):
got behind Deblasio, and they also sort of talked to
him about moderating his positions about his nominees and who
he was going to bring into his administration, and there
was this sort of a moderating force by people who
had backed his opponents getting behind him at that point.
Speaker 2 (07:45):
Well, speaking of backers, prominent backer Bill Ackman, who was
one of the most prominent backers in the super Pac
supporting guests former Governor Cuomo. He has a very long
post on x which is pretty typical for him. He
writes very long messages on the platform, and he writes
(08:07):
about crowdsourcing the next candidate. He's really worried about Mom Donnie.
He said, who is your best centrist candidate who could
go toe to toe with Mom Donnie on the campaign
trail and on the debate stage. Let's crowdsource the names
and then do a poll. If someone is ready to
raise their hand, I will take care of the fundraising.
Speaker 6 (08:28):
Is it that easy.
Speaker 5 (08:29):
It is definitely not that easy. This is a little
bit of inside baseball. But after tomorrow, Andrew Cuomo cannot
get his name off of the November ballot. He's running
on an independent line that he set up in case
he lost the primary, which it looks like he did.
After tomorrow, if he doesn't decline that nomination, it's impossible
to get his name off the ballot. The ballot is
(08:49):
basically set. In order to get someone off of the ballot,
that person has to either be nominated to run for
a vacant position somewhere else, or be disqualified by death,
going to prison, or moving out of the state. Those
are really significant events. You don't want to force someone
to die or move out of the state or prison.
(09:11):
So it's just not that easy. It's not a question
of right candidate plus right money. There's rules, you know,
in elections, and they've.
Speaker 4 (09:19):
Been said in I'm gonna say favorite quote of the day.
We gotta put that one and send it out. It's
still early. A lot can happen.
Speaker 5 (09:28):
Oh yes, I mean think about three months ago, if
we were having this conversation, nobody in the general public
really knew who Zoron mom Donnie was, And now he's
looking like the next mayor we're talking about right now,
possibly of the City of New York.
Speaker 2 (09:42):
Anecdotally speaking, I live in South Brooklyn. The ground game
that Mom Donnie had was unbelievable. I would get notifications
Carol saw him of like door knockers. Yes, you know,
coming over to talk to different members of our building
and it's kind of wild, like he built something really
(10:03):
from the ground up. Do we see that happening during
the general election from now until November? Does that continue
for him?
Speaker 4 (10:11):
I think that that's plausible.
Speaker 5 (10:13):
It's too soon to say what will happen for the
other candidates who are in the race. Curtis Leiwa, there's
independent Jim Walden, an attorney, and Eric Adams of course
running on his own ballot line. You know, we can't
predict the future. But this enthusiasm that mom Donnie had
and actually this sort of managerial competence that he did
show in getting this campaign organization off the ground and
(10:34):
ultimately looks like winning this primary is nothing to be
trifled with. It's a serious operation. He had a huge
get out the vote effort and the data is really
showing us that he was able to convert people who
had never voted before into voters in a New York primary,
usually a very low turnout affair. He has shocked everyone.
Speaker 4 (10:53):
That's a big deal. Yeah, an indication that we would
assume that that interest is going to carry all the
way through or it depends like who's left in the race,
right yes, definitely. I don't know you're the New Yorker.
What's your last question?
Speaker 7 (11:07):
It is?
Speaker 2 (11:07):
Yeah, I mean, I'm just I'm still blown away by
the ground game and the interest. I think he was
seen as somebody literally twelve weeks ago that didn't have
name recognition.
Speaker 5 (11:15):
Yes, and he also really lacks managerial experience or much
experience in all money to be Yes.
Speaker 8 (11:22):
His opponent's made on the debate stage, right.
Speaker 5 (11:24):
But he has been saying, and I think people are
really starting to take this more seriously now that his
biggest qualification managerially is look at the campaign that I've
runage built up from nowhere to more than twenty thousand
individual donors, tons of volunteers, that converted enthusiasm into actual votes,
a much more difficult thing to do than it looks like.
Speaker 4 (11:45):
And there's a leader, and then there's all the people
that are around him too, right, it's not just the one.
I mean, it obviously the candidate first and foremost, but
it's his whole team or her team. Laura, thank you
so much, Laura and Omius keeping us informed on New
York City politics. She is Bloomberg New York, bloom News
New York Politics reporter.
Speaker 9 (12:02):
You're listening to the Bloomberg Business Weekdaily Podcast. Catch us
live weekday afternoons from two to five pm Eastern. Listen
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or watch us live on YouTube.
Speaker 8 (12:18):
There's a lot we want to talk about with Mark Moriol.
Speaker 4 (12:20):
Yeah, we certainly do. He is, of course, president and
CEO of the National Urban League. It is called itself
the nation's largest historic civil rights and urban advocacy organization,
devoted to empowering communities and changing lives since nineteen ten.
He's also a former state senator in Louisiana and the
former mayor of New Orleans. When he was elected, he
was the youngest mayor of New Orleans in fifty years.
(12:42):
He jones us from Atlanta. Hey, that's where we want
to start.
Speaker 6 (12:44):
Mark.
Speaker 4 (12:45):
First of all, great to be talking with you again.
Speaker 6 (12:47):
Thank you, Greg to be with you this afternoon.
Speaker 4 (12:49):
Well, thank you. You were thirty six when you were
elected mayor. If our math is right, age, how is
that like? How do you don't know when is age?
It could be a problem for someone when isn't it not?
Speaker 10 (13:04):
So every thirty six year old is not the same age.
Sometimes gives you energy or willingness to innovate, But the
question is really a question of maturity and the ability
to deal with a difficult and demanding job, pressure on
all fronts, and the ability to make decisions under pressure.
(13:25):
So age can be both a asset, but it also
can be a liability if you've never experienced pressure, you've
never been in a decision making position before, and then
all of a sudden you find yourself leading a major
American city, So you.
Speaker 6 (13:39):
Know, the jury is out.
Speaker 10 (13:41):
It was out on me when I first got elected,
although I had a political career as a state senator
and a very successful state senator who had passed at
that time some fifty bills, and a career as an
active lawyer doing a lot of high profile cases. So
when I got elected, certainly the city of New Orleans
(14:02):
was in a great crisis of murder and police corruption.
Speaker 6 (14:06):
And economic stagnation for the for the.
Speaker 10 (14:08):
Busting of the oil bust, and uh, you know, I
think at the end of the day, I proved all
my critics wrong and and and and had an incredibly
successful career turning the city around in those days.
Speaker 6 (14:21):
So you know, in the New York situation, with my
mam Donnie.
Speaker 10 (14:26):
Uh. You know, he is a new face, not a
very well known face, but pulled off a very important
and spectacular upset. But forty four percent of the Democratic
primary does not achieve a consensus of New York voters.
And there's a general election ahead, and I think although
he has momentum, I don't think he can pop the
(14:47):
cork and say I'm going to be the next mayor
just yet.
Speaker 8 (14:50):
What do you think it's that is? That is so clear?
Speaker 2 (14:52):
And we had a conversation with one of our colleagues here,
Laura Naimus, earlier in the day, about the challenges that
he still faces. Lornamias, you know, Mark, the question that
I have for you is a bigger question about the
Democratic Party and what this says about if anything, If
(15:12):
it says anything about the identity of the Democratic Party
on a national level, can you extrapolate from New York City.
Speaker 10 (15:19):
Though some people want to focus on this sort of
what I call an idiological distinction between progressives and moderates,
I think maybe one way to look at it is
that there may be an generational shift that this represents
in many respects, A younger candidate who ran an aggressive
(15:41):
grassroots campaign and used the taxic to social media, running
against candidates who ran more traditional campaigns that focus heavily
on television and indeed endorsements and so underneath that, for Mamdanie,
he has to demonstrate that he.
Speaker 6 (16:00):
Can expand his coalition.
Speaker 10 (16:02):
He has to demonstrate that he can govern govern right.
Govern is not an ideological thing. Governing does bring into
play one's values and one's philosophy, but it is The
mayor is the local chief executive officer. Basic services, public safety, education,
(16:26):
the condition and cleanliness of streets and neighborhoods, affordable housing.
Speaker 6 (16:31):
Those are the issues. It's not a.
Speaker 10 (16:35):
Job of foreign affairs, although because it is New York,
there are global issues that the mayor of New York
has to deal with. So to me, one of his
challenges is can he expand that coalition in an effort
to win a general election and build a kind of
coalition it will require to govern. I can say this,
(16:56):
I learned that getting elected. I had a decisive win,
but I had a win in a somewhat racially polarized situation.
I got ninety five percent of the African American vote.
At the time, I got less than ten percent of
the white vote. I had to expand my coalition home
my base, but expand my coalition to be able to
effectively govern, get things done, make things happen, reform the police,
(17:22):
expand you services, put together a coherent economic development plan.
And that indeed is a challenge that is in front
of him. So I think people need to watch his
early moves and what he does. But Andrew Como right
now is on the ballot in the general election. Eric
Adams is on the ballot in the general election. There's
a Republican candidate on the ballot in the general election.
(17:43):
And as I understand it, in the general election there's
no rank choice voting. So obstensibly someone could get elected
with twenty eight percent of the vote in a general
election in a four way general election. So it remains
to be seen. You know, the Democratic Party, like the
Republican Party, is a coalition. I think that using the
(18:04):
term party may be outmoded and outdated, and for it
to achieve success in local elections like mayor of New York,
or mayor of Philadelphia, mayor of Chicago, mayor Detroit may
be different than what is required in a national election.
So someone that may be successful in a New York
where there's a strong progressive base.
Speaker 6 (18:25):
May not be.
Speaker 10 (18:25):
And so I don't tape the Mayor of New York
or who wins the mayoralty in New York as a
stalking horse on the Democratic Party on a national basis.
Speaker 6 (18:37):
It never has been.
Speaker 10 (18:38):
It wasn't that way with Mayor Bloomberg, who turned who
was a Republican term Democratic. Wasn't that way with Mayor Kacha,
Mayor Dinkins or Mayor Adams, even though they may have
said I'm the future of the Democratic Party, I don't
think who the Mayor of New York is represents necessarily
the future of a party that exists in fifty states
and what may happen in a national election.
Speaker 6 (19:00):
But having said that, like the Republican.
Speaker 10 (19:03):
Party has to unite its far conservative wing and its
more moderate wing, a Democratic candidate running nationally in a
presidential election, right, he has to do the same thing.
Speaker 4 (19:14):
Well, we should point out right now we are talking
with Mark Moril, he's president and chief executive officer of
the National Urban League, joining us remotely. At the same time,
we're keeping an eye on Washington, DC and the White
House specifically where Republicans are gathering as they expect the
president to participate in what his press office calls one big,
(19:34):
beautiful event. So we do assume he is going to
talk about that spending and tax bill that he is
trying to get through in the next couple of weeks.
So there's some pressure on that. And we also do
have some earnings out that have crossed the Bloomberg and
we're talking about Nike, and that's docked him. We are
seeing it trend a little bit lower right now in
(19:55):
the aftermarket, down about one and a half percent.
Speaker 2 (19:57):
Yeah, the company did report revenue for the fourth quarter
that beat the average analyst estimate. The estimate was for
ten point seven billion dollars. It came in at eleven
point one billion dollars. North America revenue was higher than
analysts expected. EMEA revenue came in at three billion dollars
that was higher than estimates. Greater China revenue came in
(20:19):
right in line with estimates at one point four eight
billion dollars. We're going to be speaking with Punamguyl of
Bloomberg Intelligence a little later to break down these Nike earnings.
Speaker 4 (20:27):
Yeah, it does seem like investors are trying to make
sense of it because the stock has been down a
few percentage points. Now it's relatively flat, but still a
little bit lower, So we're going to continue to track it.
We should point out that the company did say the
results are in line with expectations, but not what we want.
Speaker 8 (20:47):
This is really interesting.
Speaker 2 (20:49):
Elliott Hill in the press release saying, our financial results
are in line with our expectations, they are not where
we want them to be moving forward, we expect our
business to improve as a result of the progress we're making.
Speaker 8 (20:59):
Three are win now actions.
Speaker 4 (21:01):
Yeah, so kind of interesting. I will point out that
the gross margin was forty point three percent versus forty
four point seven percent a year ago. The estudent was
forty point two percent, so it did beat that. But
again and now this stocks up about half a percent,
So continue to track that, watching and waiting for the
President to make some comments. And we're talking with Mark Morel,
(21:21):
president and CEO at the National Urban League, and Mark,
you know, we are awaiting comments from the President when
it comes to this massive spending and tax bill. What
do you want to see?
Speaker 10 (21:34):
Well, I think it's clear that this bill is in
somewhat trouble the polling is two to one against. There
are number of Republicans in the Senate and many in
the House who I think have become less enthusiastic about
deep cuts to Medicaid, veterans programs, and other programs, and
(21:56):
they're hearing from their constituents. I think because it's been
an aggressive campaign to educate people. I sent is the
more people learn about the bill, the less likely they
are to support the bill. And most of the polling
shows that Democrats and independents, and maybe twenty five to
thirty percent of Republicans are not in favor of the
(22:18):
bill and would like to see them sort of scrap it,
go back to the drawing board and put something together
that's better and that may be able to achieve some
bipartisan support. The great concern I have is the deep
cuts to programs like Medicaid, the deep cuts to workforce,
job training, and education, and the potential recessionary impact.
Speaker 6 (22:43):
Data I've seen shows that.
Speaker 10 (22:45):
There would be layoffs, that there would be holes bloan
into the budgets of many states Louisiana, Mississippi, Alabama, and Georgia,
to name a few. If Medicaid is cut, it would
damage them fiscally in a really, really be a way.
So I think the President with this today is trying
to rally support, trying to play a bit of catch
(23:06):
up in an effort to demonstrate to the Congress his
strong support for the bill. But that runs counter to
what the American people are saying. And now this bill
is too much on the cut side to pay for
tax cuts that benefit only a handful of people. That's
really the misbalance here. And they could do a better job.
(23:27):
They could come up with a better package. Congress has
achieved consensus packages in the past, and I think that's
what's in order today.
Speaker 8 (23:36):
Mark, when you look at the bill.
Speaker 2 (23:39):
The President, by the way, speaking right now, and again
we'll bring you comments if he does make comments that
are really focused on our investing audience. As you mentioned,
he is trying to garner support for this. In your view,
do you think that the bill in this current iteration
will become law?
Speaker 10 (23:58):
No, I do not think the margins right now with
the changes that are being made in the Senate in
an effort to put the votes together. The bill yet
has to go back to the House of Representatives.
Speaker 11 (24:11):
If it does pass the Senate, and it passed by
one vote in the House the last time, so there
will be an effort to get the House to accept
the changes that the Senate made. But I think this
bill is in precarious shape and I do not think
that it will ultimately be passed in its current form,
(24:32):
although there's going to be a great effort to do so.
Because you know, politicians, I'm a recovering politician, you know,
think long and hard about the impact of a vote.
One certainly on their constitutions, the two on their elect
on their reelection.
Speaker 6 (24:47):
And I think.
Speaker 12 (24:47):
If swing district are as Republicans think that this is
going to really make their reelection difficult and hard may
say I've got to put push back for a better
deal because that is in my best political interest.
Speaker 1 (25:06):
This is the Bloomberg Business Week Daily Podcast. Listen live
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Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (25:26):
I did want to bring in Wayne Sanders. He's Bloomberg
Intelligence senior defense analyst. He's a former colonel in the Army.
He's got a keen knowledge of intelligence analysis, information technology, counterinsurgency,
and more.
Speaker 8 (25:38):
Wayne.
Speaker 2 (25:38):
Good to have you back with us. Thanks for patiently waiting.
Things are little off schedule thanks to comments that we
took from the President a little earlier speaking of Washington, DC,
though we did hear from the US Defense Secretary earlier.
He took aim at press coverage of a preliminary assessment
by the Defense Intelligence Agency that the US attack likely
didn't cripple core components of Iran's uranium and richmond program
(26:03):
at the underground FOURDO facility. The President has said the
facility was quote completely complete and totally obliterated. In your experience,
do we have to wait for a battle damage assessment
to understand the full extent of damage in a situation
such as this, or can we take comments that we
(26:23):
get through the press, from leaks from the president, from
other sources. Can we take those at face value?
Speaker 7 (26:30):
Yeah, it's a great question, and thanks for having me back.
Speaker 13 (26:33):
I think that for the President when he said that
right when you're actually when you watch the video that
was part of that press conference this morning, it was
pretty definitive that there was a lot of damage, But
it's once we talked about it before, you're three hundred
feet down and so it's very difficult to see what
kind of damage that specifically is. And so when somebody
puts out this preliminary assessment, right, I used to be
(26:55):
an intel guy. I used to do battle damage assessment
for the army, and so that initial report that comes in,
you have a very limited amount of information, and so
you normally look to try and corroborate all that.
Speaker 7 (27:06):
You look for.
Speaker 13 (27:07):
Signals intelligence, human intelligence as well as as well as
imagery intelligent in it, and there are others as well.
You try to put all those together and corroborate what
it is. And that's why I think that Secretary Heasas
is really trying to push and say, stop trying to
jump directly to what we said originally that was the
initial assessment, and then let us be able to do
(27:28):
as much as we can, let the intelligence community do
what they're supposed to do and provide a better assessment. So,
even with de IA putting out what they had that
was from a leaked perspective, we don't know when that
initial assessment was made. A secondary piece of that that's
really important is a lot of battle damage assessment that's
normally done is normally classified.
Speaker 7 (27:50):
So in terms of what the.
Speaker 13 (27:52):
Public normally gets a hold of, what is normally comes
out that is normally something that is almost like pared
down based off it because you're always trying to protect
sources and methods of how you found out that information.
Speaker 4 (28:05):
So here we are doing the math. There, what six
days since the US attacked those sites, the nuclear sites
in or on. How long does it really take Wayne
to get a really accurate picture or maybe you never
get a fully accurate picture, but a mostly accurate picture
of exactly what happened.
Speaker 13 (28:28):
Yeah, the pieces start to fall into place a little
bit over time, right. I think that the chatter that
comes from signals intelligence, right as well as the human
source network that provides some of that intel, some of
that does take time. I was working, I was working
National Security Agency, US cyberc Command all the way back
when the bin Ladin strike. And the funny part about
(28:48):
that is is that we were still getting we were
still getting reports even three weeks a month, two months
after bin Laden was killed that he was alive.
Speaker 7 (28:58):
You know that there was this one piece of tell
that came up that was that way right.
Speaker 13 (29:02):
That's why you always look and it's so important to
corroborate what that information is. If we put out a
piece of news, we put out a piece of intel
that says says he if it then goes and the
UK picks up on it or another one of our
allies and says, hey, I've got this piece of reporting.
Speaker 7 (29:19):
If they end up reporting on.
Speaker 13 (29:20):
That, somebody might grab it and think that that's too
corroborating piece of information. But somebody's just reporting off the
original and so that's a very dangerous thing. And that's
why you heard the chairman, you heard General Kine talk
about allowing the IC to do their independent assessment. That's
why CIA has one versus what the DEA had and
I know that's why a Secretary of Access is bringing
(29:40):
that up to.
Speaker 4 (29:41):
So what you know, interesting times. I mean, there was
a lot of criticism at media. Media reacts to what
gets leaked, right, and that's what we that's what we do,
and we are supposed to be responsible with it and
you know, do our own reporting and check it out.
But we're also there to ask questions. So you know,
I mean, obviously somebody leaked it and put it out there.
(30:03):
So I mean, I'm just trying to understand, you know,
are they right to be so defensive and critical or
this is just kind of how it goes, not the
first administration where stuff gets leaked.
Speaker 14 (30:15):
No.
Speaker 7 (30:15):
Absolutely.
Speaker 13 (30:17):
The biggest thing there is it's we call it raw intelligence,
right if it is unanalyzed data. At that point in time,
data becomes information, information becomes intelligence, Intelligence becomes decisions. So
that's just the way that the military mindset looks. So
if you're at that data layer and you have something
that's leaked that's still at that raw unanalyzed data, then
(30:41):
it's important to know where that is in that So
when it comes to a leak and it's something that
we can't completely substantiate in terms of an actual report
that's been put together, that's why the intelligence community takes
the time that it has. Is why they're safeguards in
intelligence directives that are in place, is to when you
want to publish a report, you have to go through
(31:02):
a lot of different pieces to make sure that you're
not providing misinformation to the American public.
Speaker 4 (31:06):
Well, so in this environment where there's a lot of
tensions between Republicans, Democrats and so on and so forth,
or the White House and members of press at large.
I mean, what we need to do is just kind
of though then be smart and maybe possibly would have
been better to say, listen, guys, it's raw data, so
just understand that it's out there. We've got to deal
with it. We're just going to let you know it's
(31:27):
raw data. And we all know raw data can have flaws.
And that's kind of the point right here, because we
just think about our audience and we're saying the endgame
is to understand what are the enrichment capabilities, nuclear enrichment capabilities,
ever on. That's the endgame, right, and so that's what
all these questions are all about. Ultimately, yep, no.
Speaker 13 (31:47):
Absolutely, when you're trying to put that together, the other
piece of it is, hey, the intelligence community never stops.
Speaker 7 (31:53):
They are going to continue to look.
Speaker 13 (31:55):
Last time we were talking about whether or not they
moved any of the FISTLE material to another location.
Speaker 7 (32:00):
The intelligence apparatus the United States.
Speaker 13 (32:02):
Never sleeps, it never sleeps, So they are going to
confirm or deny everything that is out there, with every
piece of intelligence collection that's underneath the US arsenal.
Speaker 15 (32:13):
Okay, next step, well, I want I want to I
want to ask about the enrich geranium. Okay, yeah, well
we heard we exactly we don't know, well, do we
know where it is? Do you think the US government
actually knows where it is? Because they seem confident in
some comments that we've heard from officials that it was
not moved out of facilities.
Speaker 13 (32:32):
So so that that's the difference I think between commercial capabilities,
uh and military capabilities as well.
Speaker 7 (32:39):
Right, So I trust I trust the military leaders. I
always have.
Speaker 13 (32:43):
Obviously, I think that they've they've earned that respect, they've
earned that trust. And so when when you look at
the difference between it that intelligent, those intelligence apparatus, all
the pieces of information that they have uh in terms
of what they're doing and all that, they're not going
to come out and make an assertion unless they're able
to it up. So I would trust that side a
(33:03):
little bit more when it comes to that because they
have no political agenda involved in being able to do that.
Speaker 7 (33:10):
Right.
Speaker 13 (33:11):
They want the truth because at the end of the day,
they provide the commander in chief and the National Command Authority,
they provide the president with options. They provide them with
the latest and greatest and says here's the situation and
hear your military strike in response options based off of that.
There's no reason to try and skew the numbers or
anything of that nature, because at the end of the day,
(33:32):
then you're making a decision off of bad intel and
nobody wins there.
Speaker 4 (33:36):
All right, We're going to have to leave it there.
It sounds like, you know, we all got to be
a little bit patient and wait for more of the
intel to come in. Hey, Wayne, thank you so much
always walking us through exactly what's going on so that
we have a better understanding. Wayne Sanders, Senior Defense analyst
at Bloomberg Intelligence, joining us once again from Maryland.
Speaker 9 (33:53):
You're listening to the Bloomberg Business Weekdaily podcast. Catch us
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Speaker 4 (34:08):
Hey, folks, us up forget. We've still got some earnings
and we did have Nike crossing after the closing, bellstock
down about two percent in the aftermarket. Let's get to
our Punam Goyle, who follows Nike as well as e
commerce at leisure. At leisure, excuse me an off price retail.
She's there in our Princeton bureau bi headquarters. All right,
Nike's down. It's been bouncing around. Punhum, what do we
(34:30):
need to know?
Speaker 14 (34:31):
You know, the numbers are better than expected, but the
issue here is the inventory was just flat, and we
expected inventory to be down more. You know, if there's
one thing I'm looking for in this turnaround, it's that
they rework their inventory levels down to get aligned with sales.
So when sales are down double digits and inventory is flat,
it's still a problem.
Speaker 2 (34:52):
We'll explain why you want inventory down.
Speaker 14 (34:55):
Well, they have a lot of inventory that's old in aged, right,
that they just need to sell and get rid of
so they could introduce more new product that resonates better
with shoppers and can drive more full price sales. There's
a lot of old inventory in the pipeline. They've talked
about it. They need to bring it down. I was
surprised with sales doing better that inventory isn't actually down
(35:18):
a lot more.
Speaker 10 (35:20):
So.
Speaker 14 (35:21):
Really, you know, the question going into this call in
just ten minutes is that what is the mix of
this inventory? Is the inventory higher because you have a
lot more new stuff now in it and a lot
of the old stuff is in fact gone? Or is
there still too much of the old stuff?
Speaker 10 (35:38):
Right?
Speaker 4 (35:38):
Doesn't everybody want the snowfer?
Speaker 8 (35:40):
What is it?
Speaker 4 (35:40):
The sneaker loafer? I mean, isn't that the big thing?
Speaker 14 (35:43):
The five hundred dollars one?
Speaker 4 (35:44):
Yes, yeah, that's like the big platform.
Speaker 8 (35:46):
Why is that so expensive?
Speaker 4 (35:48):
Hey, it's not.
Speaker 14 (35:50):
It's one hundred and fifty five dollars when they actually
drop it, I believe if that's the right price.
Speaker 4 (35:55):
The resale prices, right, these are resale price.
Speaker 14 (35:57):
These are resale prices. So you know the prices are
or what they are.
Speaker 4 (36:02):
Just look up by the Nike ticker snow for s
no a FVR like a loafer, snowfer, snoffer, sneaker loafer. Yeah,
we get the cross between sneakers and high heels, right,
I forget right, So we get that, but the guys
get the snow first, all right, So it does. So
what's the number one question you want to you want
to be asking about the inventory? What specifically? Or is
it just as simple as like, why is it still
(36:23):
so high?
Speaker 14 (36:25):
It's actually the mix of it, right, it's an inventory,
they're just flat. How much old inventory still needs to
be cleared? How much of it Have they cleared right?
Speaker 10 (36:34):
So?
Speaker 14 (36:34):
Have they cleared half of it by now, three fourths
of it, a fourth of it versus where they were
last quarter. Just to get a sense of their inventory position,
to know the new and old balance within it, that's
probably my biggest question. And then of course you know
there's questions around the Skims partnership that's being delayed for
this year. What's going on there? Why is it being delayed?
(36:55):
The tarriff question. They're raising prices, but are they seeing
any demand fall off from consumers or consumers pulling back?
That's all uncertainty. We'd love to hear sentiment around new launches,
new product, the basic questions.
Speaker 2 (37:08):
Aside from that, Jeerlan, we're both drawn to this headline
in commentary from Elliot Hill, the president and CEO of
the company, who said, well, our financial results are in
line with our expectations. They are not where we want
them to be moving forward, we expect our business to
improve as a result of the progress we're making through
our win now actions. Matthew Friend, the CFO and EVP,
(37:30):
also said that the fourth quarter reflected the largest financial
impact from our win now actions. Remind everybody what win
now means for Nike investors.
Speaker 14 (37:41):
So this is a strategic plan to get Nike to
come back to growth. So when you think about all
the actions that they've taken, the inventory reductions, staffing reductions,
the investments and technology creating efficiencies, etc. I think what
they're trying to say is we've done a lot of that,
and now here's the path forward. The headwinds will be fewer,
(38:05):
and now they can actually start to push the pedal
to accelerate into growth. So the dirty work is kind
of done, all right.
Speaker 4 (38:12):
So massive company, ninety two billion dollar market caps stocks
down seventeen percent year today.
Speaker 8 (38:18):
I feels to be a bigger market cup it did
used to be.
Speaker 4 (38:20):
And I feel like punam. We've been talking about their
struggles for a while. I mean, is Nike's heyday over
or they just have to kind of figure out the
inventories and get their groove back.
Speaker 14 (38:30):
Their heyday is not over. We actually ran a survey
just probably a few weeks ago that published this week,
and it asked people, just surveyors, one thousand people, this
common question, what do you want to buy in the
next six months? And the number one response when you're
buying sneakers was Nike. So Nike still is very very
visible with people in the US for sure, because that's
(38:53):
where the survey was run. But I'd say even around
the world, it's still the largest athlet uar brand. I
believe that if they can fix their inventory position and
really focus on product, which I think Elliott Hill is
doing and that is what he came in for. I
think they can win back customers as long as they
can stay on top of innovation, true to their game,
true to sports, because Nike is a sports for a company. Yes,
(39:16):
we'd love to see more snowfers or you know, those
kind of things, but at the end of the day,
it's a performance company, right, and I think they have
to stay true to that.
Speaker 4 (39:25):
I don't know if you do this. I sometimes in
the subway and I'm just kind of looking down and
of course all you see is feet, right if you're
sitting or standing, and like I kind of count like
what the brands are. There's a lot of on sneakers
I have on full discleasure, but I do I try
to get an idea of like what people are really
into in terms of what they're wearing on their feet.
I know I'm strange. What can I tell you?
Speaker 14 (39:45):
I do that too, so you're not.
Speaker 8 (39:47):
You guys are both analysts.
Speaker 4 (39:49):
That's the way I had a good company. But here's
the thing to get an idea. A year ago, I'll
look at ages too, to see who's wearing one.
Speaker 2 (39:56):
Wasn't it like a year ago or maybe two years
ago that analyst went to Central Park and he actually
looked at who was running and what and that was
a big issue because Nike had lost market share just
twenty seconds.
Speaker 8 (40:06):
Yeah.
Speaker 14 (40:06):
Absolutely, Look, Nike has lost market share and it is
losing market share. But Ken it went it back as
a question. We think yes, On is definitely growing. But
if you look at the size of the two companies,
you're looking at someone with, you know, more than forty
billion dollars in sales versus someone with less than ten.
So there's a big difference.
Speaker 4 (40:23):
Good point, all right, Nike, you shows down one point
seven percent. Put of you Rock Punam Goyle Senior analysts
for e Commerce at Leisure, off Price Retail at Bloomberg Intelligence,
joining us from BI headquarters in Princent.
Speaker 1 (40:34):
This is the Bloomberg Business Weekdaily podcast, available on Apple,
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(40:55):
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(00:23):
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Masser and Tim Stenebeck on Bloomberg Radio.
Speaker 2 (00:32):
A Republican planned to cut two hundred and fifty billion
dollars in medicaid another healthcare spending hit a procedural roadblock
in the Senate today. It complicates efforts to pass Donald
Trump's massive tax and spending package. We go down to
Katherine Lucy, Bloomberg News White House correspondent, Catherine, is this
bill at risk as a result of cutting two hundred
and fifty billion dollars in medicaid?
Speaker 3 (00:54):
It just certainly slows this bill down. It certainly complicates it.
As you said said, what's an issue here is a
plan to cut two hundred and fifty billion in medicaid
and healthcare spending that the Senate parliamentarian has said they
can't move in this bill with the processes that they
are doing here. Leaders are saying they have time, that
(01:16):
they have plans they can do this, and I think
they are looking at ways to refashion this. But it
does take time to rewrite legislation. It does take time
to do this and to keep a sort of combative
a group of Republicans on board. So trying to keep
(01:36):
everyone rowing in the same direction is an issue. That said,
the event at the White House today is Donald Trump
trying to do just that. He is trying to rally
support behind this bill. He is aggressively pushing for it
to be passed by July fourth, He is personally a
lobbying for it, and so I think he's going to
pull out all the stops to try and make sure
(01:58):
that this happens.
Speaker 4 (01:59):
So what's the time? What does this due to the timeline? Right,
that's what everybody We know that there's a lot of
pressure Catherine on the President in the next couple of
weeks to get a bunch of stuff done, including trade
tariffs and of course his tax and spending bill. So
what's the timetable if there is a rewrite, how do
they do it? You're right, that's complicated, it's complicated.
Speaker 3 (02:21):
You know they are now working to do this and
we'll have to see how quickly they can come up with,
you know, a new version of it. I mean, I
think you guys know as well as anyone that Congress
never does anything until they're up against a hard deadline.
So things do happen when they feel like they're just
against the wall. So there is a little bit of that.
(02:43):
But I think you are really going to see an
aggressive effort by the President who really wants to do
this by July for them, and we'll see if he
can make it happen. But it is I mean, this
is his main legislative focus, you know that, you know,
for this term, this is his top legislative priority, and
he and Republicans really think that they need to pass
this to have something to run on next year in
(03:05):
the midterms, so it is a top priority.
Speaker 4 (03:08):
All right, good stuff. We wanted to check in and
find out what kind of where we are on this,
so really appreciate it. Catherine Lucy. She has Bloomberg News
White House correspondent joining us from our bureau in the
nation's capital.
Speaker 2 (03:19):
Well from the nation's capital to the financial capital of
the world. We are of course talking about New York City,
where Andrew Cuomo's loss is Eric adams game. Just days ago,
the New York City mayor faced steep reelection odds, but Adams,
who dropped out of the campaign as a Democrat to
run as an independent, is suddenly looking less toxic to
a class of moderate voters. Laura Namius is Bloomberg News
(03:41):
New York politics reporter. She joins us here in the
Bloomberg Interactive Brokers studio. Laura, you were honor with us
earlier this week, and you said, don't count out Eric Adams, right, essentially,
and that's what the strategists have been telling you. But
I think a lot of the public had said, you know,
after the challenges he faced and him dropping off the
Democratic tick, he's kind of done.
Speaker 5 (04:01):
He's not so done now he's not so done, in
part because of the drastic underperformance of Andrew Cuomo in
the primary. I think toward then there, Cuomo backers were
maybe expecting the race to be close. They didn't expect
Andrew Cuomo to be losing on the first ballot in
this contest by more than six percentage points, a gap
(04:21):
that's likely to widen next week when all of the
ballots are fully counted. Despite the fact that he had
an insane money advantage over every other candidate in the race,
including a twenty five million dollars super pack backing his candidacy.
So they're wondering, if he couldn't win this, can he
win the whole thing? And should Cuomo drop out and
(04:41):
consolidate behind a different moderate candidate, maybe Eric Adams, so
that he doesn't play spoiler in hand the election to
Mom Donnie or a Republican Curtis Lee was running on
the GOP line Laura.
Speaker 4 (04:54):
Eric Adams looking less toxic is still toxic. So I'm
just curious, like how that plays politically.
Speaker 5 (05:00):
That remains to be seen. We haven't seen fresh polling
that's non partisan post primary, but the most recent poll
numbers for Eric Adams are terrible. He was polling in
the teens. His favorability in New York City among voters
was in the teens. Like seventy percent of New Yorker's
disapproved of the job that he was doing as mayor
as recently as a month ago.
Speaker 4 (05:21):
So it's not an.
Speaker 5 (05:22):
Easy path to victory. But there's some thinking that maybe
if people are disenchanted enough with the idea of a
Mom Donnie candidacy they could get behind in Eric Adams.
Speaker 2 (05:31):
One, have you heard anything? So there's the supporters of
former Governor Cuomo. Yes, And we should note that Michael Bloomberg,
the founder of Bloomberg LP, the parent company of Bloomberg Radio,
did support Governor Cuomo ahead of the primary. Do you
supporters of Have any supporters of Governor Cuomo come and said,
(05:53):
wait a second, we can now support Mom Donnie.
Speaker 5 (05:56):
So here's what's going on. Donors are having a conversation.
There are also some powerful backers of Andrew Cuomo who
are labor unions, and right now conversations are happening with
labor unions about who they are going to pivot toward
backing in the general and we are hearing from some
sources that it's likely that a lot of them are
going to coalesce behind Mom Donnie. Their agenda largely dovetails
(06:21):
with some of the things he said he wants. That's
very different from some of the donors who backed Cuomo
who are in finance or real estate, who are seeing
some of Mom Donnie's policies around rent control, around taxes
as like an existential threat. But those conversations are happening
right now. It's fair to say that a lot of
conversations are happening, and that there's maybe a panicked air
(06:42):
to some of the conversations they're going on right now.
It's likely or that the unions might back Mom Donnie
than some of the big money backers.
Speaker 4 (06:49):
Yeah, no, that's really fascinating, right, Like, you know, where
there's politics, there's money, and where there's money, there's politics.
But it's just like you do wonder if ultimately Cuomo
is out. You know, what's the assumption about a lot
of those you know, a lot of the political donations.
Does it automatically go to Adams like we could.
Speaker 5 (07:08):
See so in twenty thirteen, if people will remember back then,
Christine Quinn was the favorite of moderates and a lot
of people in finance in the Democratic mayoral primary. She lost,
build a Blasio ultimately won. There was an effort to
consolidate support behind Deblasio because it was thought that he
was going to face a competitive general election against Joe Lodo,
the Republican at the time, and a lot of people
(07:30):
got behind Deblasio, and they also sort of talked to
him about moderating his positions about his nominees and who
he was going to bring into his administration, and there
was this sort of a moderating force by people who
had backed his opponents getting behind him at that point.
Speaker 2 (07:45):
Well, speaking of backers, prominent backer Bill Ackman, who was
one of the most prominent backers in the super Pac
supporting guests former Governor Cuomo. He has a very long
post on x which is pretty typical for him. He
writes very long messages on the platform, and he writes
(08:07):
about crowdsourcing the next candidate. He's really worried about Mom Donnie.
He said, who is your best centrist candidate who could
go toe to toe with Mom Donnie on the campaign
trail and on the debate stage. Let's crowdsource the names
and then do a poll. If someone is ready to
raise their hand, I will take care of the fundraising.
Speaker 6 (08:28):
Is it that easy.
Speaker 5 (08:29):
It is definitely not that easy. This is a little
bit of inside baseball. But after tomorrow, Andrew Cuomo cannot
get his name off of the November ballot. He's running
on an independent line that he set up in case
he lost the primary, which it looks like he did.
After tomorrow, if he doesn't decline that nomination, it's impossible
to get his name off the ballot. The ballot is
(08:49):
basically set. In order to get someone off of the ballot,
that person has to either be nominated to run for
a vacant position somewhere else, or be disqualified by death,
going to prison, or moving out of the state. Those
are really significant events. You don't want to force someone
to die or move out of the state or prison.
(09:11):
So it's just not that easy. It's not a question
of right candidate plus right money. There's rules, you know,
in elections, and they've.
Speaker 4 (09:19):
Been said in I'm gonna say favorite quote of the day.
We gotta put that one and send it out. It's
still early. A lot can happen.
Speaker 5 (09:28):
Oh yes, I mean think about three months ago, if
we were having this conversation, nobody in the general public
really knew who Zoron mom Donnie was, And now he's
looking like the next mayor we're talking about right now,
possibly of the City of New York.
Speaker 2 (09:42):
Anecdotally speaking, I live in South Brooklyn. The ground game
that Mom Donnie had was unbelievable. I would get notifications
Carol saw him of like door knockers. Yes, you know,
coming over to talk to different members of our building
and it's kind of wild, like he built something really
(10:03):
from the ground up. Do we see that happening during
the general election from now until November? Does that continue
for him?
Speaker 4 (10:11):
I think that that's plausible.
Speaker 5 (10:13):
It's too soon to say what will happen for the
other candidates who are in the race. Curtis Leiwa, there's
independent Jim Walden, an attorney, and Eric Adams of course
running on his own ballot line. You know, we can't
predict the future. But this enthusiasm that mom Donnie had
and actually this sort of managerial competence that he did
show in getting this campaign organization off the ground and
(10:34):
ultimately looks like winning this primary is nothing to be
trifled with. It's a serious operation. He had a huge
get out the vote effort and the data is really
showing us that he was able to convert people who
had never voted before into voters in a New York primary,
usually a very low turnout affair. He has shocked everyone.
Speaker 4 (10:53):
That's a big deal. Yeah, an indication that we would
assume that that interest is going to carry all the
way through or it depends like who's left in the race,
right yes, definitely. I don't know you're the New Yorker.
What's your last question?
Speaker 7 (11:07):
It is?
Speaker 2 (11:07):
Yeah, I mean, I'm just I'm still blown away by
the ground game and the interest. I think he was
seen as somebody literally twelve weeks ago that didn't have
name recognition.
Speaker 5 (11:15):
Yes, and he also really lacks managerial experience or much
experience in all money to be Yes.
Speaker 8 (11:22):
His opponent's made on the debate stage, right.
Speaker 5 (11:24):
But he has been saying, and I think people are
really starting to take this more seriously now that his
biggest qualification managerially is look at the campaign that I've
runage built up from nowhere to more than twenty thousand
individual donors, tons of volunteers, that converted enthusiasm into actual votes,
a much more difficult thing to do than it looks like.
Speaker 4 (11:45):
And there's a leader, and then there's all the people
that are around him too, right, it's not just the one.
I mean, it obviously the candidate first and foremost, but
it's his whole team or her team. Laura, thank you
so much, Laura and Omius keeping us informed on New
York City politics. She is Bloomberg New York, bloom News
New York Politics reporter.
Speaker 9 (12:02):
You're listening to the Bloomberg Business Weekdaily Podcast. Catch us
live weekday afternoons from two to five pm Eastern. Listen
on Applecarplay and Android Auto with the Bloomberg Business app,
or watch us live on YouTube.
Speaker 8 (12:18):
There's a lot we want to talk about with Mark Moriol.
Speaker 4 (12:20):
Yeah, we certainly do. He is, of course, president and
CEO of the National Urban League. It is called itself
the nation's largest historic civil rights and urban advocacy organization,
devoted to empowering communities and changing lives since nineteen ten.
He's also a former state senator in Louisiana and the
former mayor of New Orleans. When he was elected, he
was the youngest mayor of New Orleans in fifty years.
(12:42):
He jones us from Atlanta. Hey, that's where we want
to start.
Speaker 6 (12:44):
Mark.
Speaker 4 (12:45):
First of all, great to be talking with you again.
Speaker 6 (12:47):
Thank you, Greg to be with you this afternoon.
Speaker 4 (12:49):
Well, thank you. You were thirty six when you were
elected mayor. If our math is right, age, how is
that like? How do you don't know when is age?
It could be a problem for someone when isn't it not?
Speaker 10 (13:04):
So every thirty six year old is not the same age.
Sometimes gives you energy or willingness to innovate, But the
question is really a question of maturity and the ability
to deal with a difficult and demanding job, pressure on
all fronts, and the ability to make decisions under pressure.
(13:25):
So age can be both a asset, but it also
can be a liability if you've never experienced pressure, you've
never been in a decision making position before, and then
all of a sudden you find yourself leading a major
American city, So you.
Speaker 6 (13:39):
Know, the jury is out.
Speaker 10 (13:41):
It was out on me when I first got elected,
although I had a political career as a state senator
and a very successful state senator who had passed at
that time some fifty bills, and a career as an
active lawyer doing a lot of high profile cases. So
when I got elected, certainly the city of New Orleans
(14:02):
was in a great crisis of murder and police corruption.
Speaker 6 (14:06):
And economic stagnation for the for the.
Speaker 10 (14:08):
Busting of the oil bust, and uh, you know, I
think at the end of the day, I proved all
my critics wrong and and and and had an incredibly
successful career turning the city around in those days.
Speaker 6 (14:21):
So you know, in the New York situation, with my
mam Donnie.
Speaker 10 (14:26):
Uh. You know, he is a new face, not a
very well known face, but pulled off a very important
and spectacular upset. But forty four percent of the Democratic
primary does not achieve a consensus of New York voters.
And there's a general election ahead, and I think although
he has momentum, I don't think he can pop the
(14:47):
cork and say I'm going to be the next mayor
just yet.
Speaker 8 (14:50):
What do you think it's that is? That is so clear?
Speaker 2 (14:52):
And we had a conversation with one of our colleagues here,
Laura Naimus, earlier in the day, about the challenges that
he still faces. Lornamias, you know, Mark, the question that
I have for you is a bigger question about the
Democratic Party and what this says about if anything, If
(15:12):
it says anything about the identity of the Democratic Party
on a national level, can you extrapolate from New York City.
Speaker 10 (15:19):
Though some people want to focus on this sort of
what I call an idiological distinction between progressives and moderates,
I think maybe one way to look at it is
that there may be an generational shift that this represents
in many respects, A younger candidate who ran an aggressive
(15:41):
grassroots campaign and used the taxic to social media, running
against candidates who ran more traditional campaigns that focus heavily
on television and indeed endorsements and so underneath that, for Mamdanie,
he has to demonstrate that he.
Speaker 6 (16:00):
Can expand his coalition.
Speaker 10 (16:02):
He has to demonstrate that he can govern govern right.
Govern is not an ideological thing. Governing does bring into
play one's values and one's philosophy, but it is The
mayor is the local chief executive officer. Basic services, public safety, education,
(16:26):
the condition and cleanliness of streets and neighborhoods, affordable housing.
Speaker 6 (16:31):
Those are the issues. It's not a.
Speaker 10 (16:35):
Job of foreign affairs, although because it is New York,
there are global issues that the mayor of New York
has to deal with. So to me, one of his
challenges is can he expand that coalition in an effort
to win a general election and build a kind of
coalition it will require to govern. I can say this,
(16:56):
I learned that getting elected. I had a decisive win,
but I had a win in a somewhat racially polarized situation.
I got ninety five percent of the African American vote.
At the time, I got less than ten percent of
the white vote. I had to expand my coalition home
my base, but expand my coalition to be able to
effectively govern, get things done, make things happen, reform the police,
(17:22):
expand you services, put together a coherent economic development plan.
And that indeed is a challenge that is in front
of him. So I think people need to watch his
early moves and what he does. But Andrew Como right
now is on the ballot in the general election. Eric
Adams is on the ballot in the general election. There's
a Republican candidate on the ballot in the general election.
(17:43):
And as I understand it, in the general election there's
no rank choice voting. So obstensibly someone could get elected
with twenty eight percent of the vote in a general
election in a four way general election. So it remains
to be seen. You know, the Democratic Party, like the
Republican Party, is a coalition. I think that using the
(18:04):
term party may be outmoded and outdated, and for it
to achieve success in local elections like mayor of New York,
or mayor of Philadelphia, mayor of Chicago, mayor Detroit may
be different than what is required in a national election.
So someone that may be successful in a New York
where there's a strong progressive base.
Speaker 6 (18:25):
May not be.
Speaker 10 (18:25):
And so I don't tape the Mayor of New York
or who wins the mayoralty in New York as a
stalking horse on the Democratic Party on a national basis.
Speaker 6 (18:37):
It never has been.
Speaker 10 (18:38):
It wasn't that way with Mayor Bloomberg, who turned who
was a Republican term Democratic. Wasn't that way with Mayor Kacha,
Mayor Dinkins or Mayor Adams, even though they may have
said I'm the future of the Democratic Party, I don't
think who the Mayor of New York is represents necessarily
the future of a party that exists in fifty states
and what may happen in a national election.
Speaker 6 (19:00):
But having said that, like the Republican.
Speaker 10 (19:03):
Party has to unite its far conservative wing and its
more moderate wing, a Democratic candidate running nationally in a
presidential election, right, he has to do the same thing.
Speaker 4 (19:14):
Well, we should point out right now we are talking
with Mark Moril, he's president and chief executive officer of
the National Urban League, joining us remotely. At the same time,
we're keeping an eye on Washington, DC and the White
House specifically where Republicans are gathering as they expect the
president to participate in what his press office calls one big,
(19:34):
beautiful event. So we do assume he is going to
talk about that spending and tax bill that he is
trying to get through in the next couple of weeks.
So there's some pressure on that. And we also do
have some earnings out that have crossed the Bloomberg and
we're talking about Nike, and that's docked him. We are
seeing it trend a little bit lower right now in
(19:55):
the aftermarket, down about one and a half percent.
Speaker 2 (19:57):
Yeah, the company did report revenue for the fourth quarter
that beat the average analyst estimate. The estimate was for
ten point seven billion dollars. It came in at eleven
point one billion dollars. North America revenue was higher than
analysts expected. EMEA revenue came in at three billion dollars
that was higher than estimates. Greater China revenue came in
(20:19):
right in line with estimates at one point four eight
billion dollars. We're going to be speaking with Punamguyl of
Bloomberg Intelligence a little later to break down these Nike earnings.
Speaker 4 (20:27):
Yeah, it does seem like investors are trying to make
sense of it because the stock has been down a
few percentage points. Now it's relatively flat, but still a
little bit lower, So we're going to continue to track it.
We should point out that the company did say the
results are in line with expectations, but not what we want.
Speaker 8 (20:47):
This is really interesting.
Speaker 2 (20:49):
Elliott Hill in the press release saying, our financial results
are in line with our expectations, they are not where
we want them to be moving forward, we expect our
business to improve as a result of the progress we're making.
Speaker 8 (20:59):
Three are win now actions.
Speaker 4 (21:01):
Yeah, so kind of interesting. I will point out that
the gross margin was forty point three percent versus forty
four point seven percent a year ago. The estudent was
forty point two percent, so it did beat that. But
again and now this stocks up about half a percent,
So continue to track that, watching and waiting for the
President to make some comments. And we're talking with Mark Morel,
(21:21):
president and CEO at the National Urban League, and Mark,
you know, we are awaiting comments from the President when
it comes to this massive spending and tax bill. What
do you want to see?
Speaker 10 (21:34):
Well, I think it's clear that this bill is in
somewhat trouble the polling is two to one against. There
are number of Republicans in the Senate and many in
the House who I think have become less enthusiastic about
deep cuts to Medicaid, veterans programs, and other programs, and
(21:56):
they're hearing from their constituents. I think because it's been
an aggressive campaign to educate people. I sent is the
more people learn about the bill, the less likely they
are to support the bill. And most of the polling
shows that Democrats and independents, and maybe twenty five to
thirty percent of Republicans are not in favor of the
(22:18):
bill and would like to see them sort of scrap it,
go back to the drawing board and put something together
that's better and that may be able to achieve some
bipartisan support. The great concern I have is the deep
cuts to programs like Medicaid, the deep cuts to workforce,
job training, and education, and the potential recessionary impact.
Speaker 6 (22:43):
Data I've seen shows that.
Speaker 10 (22:45):
There would be layoffs, that there would be holes bloan
into the budgets of many states Louisiana, Mississippi, Alabama, and Georgia,
to name a few. If Medicaid is cut, it would
damage them fiscally in a really, really be a way.
So I think the President with this today is trying
to rally support, trying to play a bit of catch
(23:06):
up in an effort to demonstrate to the Congress his
strong support for the bill. But that runs counter to
what the American people are saying. And now this bill
is too much on the cut side to pay for
tax cuts that benefit only a handful of people. That's
really the misbalance here. And they could do a better job.
(23:27):
They could come up with a better package. Congress has
achieved consensus packages in the past, and I think that's
what's in order today.
Speaker 8 (23:36):
Mark, when you look at the bill.
Speaker 2 (23:39):
The President, by the way, speaking right now, and again
we'll bring you comments if he does make comments that
are really focused on our investing audience. As you mentioned,
he is trying to garner support for this. In your view,
do you think that the bill in this current iteration
will become law?
Speaker 10 (23:58):
No, I do not think the margins right now with
the changes that are being made in the Senate in
an effort to put the votes together. The bill yet
has to go back to the House of Representatives.
Speaker 11 (24:11):
If it does pass the Senate, and it passed by
one vote in the House the last time, so there
will be an effort to get the House to accept
the changes that the Senate made. But I think this
bill is in precarious shape and I do not think
that it will ultimately be passed in its current form,
(24:32):
although there's going to be a great effort to do so.
Because you know, politicians, I'm a recovering politician, you know,
think long and hard about the impact of a vote.
One certainly on their constitutions, the two on their elect
on their reelection.
Speaker 6 (24:47):
And I think.
Speaker 12 (24:47):
If swing district are as Republicans think that this is
going to really make their reelection difficult and hard may
say I've got to put push back for a better
deal because that is in my best political interest.
Speaker 1 (25:06):
This is the Bloomberg Business Week Daily Podcast. Listen live
each weekday starting at two pm Eastern on Applecarplay and
Android Auto with the Bloomberg Business app. You can also
listen live on Amazon Alexa from our flagship New York station,
Just say Alexa play Bloomberg eleven thirty.
Speaker 2 (25:26):
I did want to bring in Wayne Sanders. He's Bloomberg
Intelligence senior defense analyst. He's a former colonel in the Army.
He's got a keen knowledge of intelligence analysis, information technology, counterinsurgency,
and more.
Speaker 8 (25:38):
Wayne.
Speaker 2 (25:38):
Good to have you back with us. Thanks for patiently waiting.
Things are little off schedule thanks to comments that we
took from the President a little earlier speaking of Washington, DC,
though we did hear from the US Defense Secretary earlier.
He took aim at press coverage of a preliminary assessment
by the Defense Intelligence Agency that the US attack likely
didn't cripple core components of Iran's uranium and richmond program
(26:03):
at the underground FOURDO facility. The President has said the
facility was quote completely complete and totally obliterated. In your experience,
do we have to wait for a battle damage assessment
to understand the full extent of damage in a situation
such as this, or can we take comments that we
(26:23):
get through the press, from leaks from the president, from
other sources. Can we take those at face value?
Speaker 7 (26:30):
Yeah, it's a great question, and thanks for having me back.
Speaker 13 (26:33):
I think that for the President when he said that
right when you're actually when you watch the video that
was part of that press conference this morning, it was
pretty definitive that there was a lot of damage, But
it's once we talked about it before, you're three hundred
feet down and so it's very difficult to see what
kind of damage that specifically is. And so when somebody
puts out this preliminary assessment, right, I used to be
(26:55):
an intel guy. I used to do battle damage assessment
for the army, and so that initial report that comes in,
you have a very limited amount of information, and so
you normally look to try and corroborate all that.
Speaker 7 (27:06):
You look for.
Speaker 13 (27:07):
Signals intelligence, human intelligence as well as as well as
imagery intelligent in it, and there are others as well.
You try to put all those together and corroborate what
it is. And that's why I think that Secretary Heasas
is really trying to push and say, stop trying to
jump directly to what we said originally that was the
initial assessment, and then let us be able to do
(27:28):
as much as we can, let the intelligence community do
what they're supposed to do and provide a better assessment. So,
even with de IA putting out what they had that
was from a leaked perspective, we don't know when that
initial assessment was made. A secondary piece of that that's
really important is a lot of battle damage assessment that's
normally done is normally classified.
Speaker 7 (27:50):
So in terms of what the.
Speaker 13 (27:52):
Public normally gets a hold of, what is normally comes
out that is normally something that is almost like pared
down based off it because you're always trying to protect
sources and methods of how you found out that information.
Speaker 4 (28:05):
So here we are doing the math. There, what six
days since the US attacked those sites, the nuclear sites
in or on. How long does it really take Wayne
to get a really accurate picture or maybe you never
get a fully accurate picture, but a mostly accurate picture
of exactly what happened.
Speaker 13 (28:28):
Yeah, the pieces start to fall into place a little
bit over time, right. I think that the chatter that
comes from signals intelligence, right as well as the human
source network that provides some of that intel, some of
that does take time. I was working, I was working
National Security Agency, US cyberc Command all the way back
when the bin Ladin strike. And the funny part about
(28:48):
that is is that we were still getting we were
still getting reports even three weeks a month, two months
after bin Laden was killed that he was alive.
Speaker 7 (28:58):
You know that there was this one piece of tell
that came up that was that way right.
Speaker 13 (29:02):
That's why you always look and it's so important to
corroborate what that information is. If we put out a
piece of news, we put out a piece of intel
that says says he if it then goes and the
UK picks up on it or another one of our
allies and says, hey, I've got this piece of reporting.
Speaker 7 (29:19):
If they end up reporting on.
Speaker 13 (29:20):
That, somebody might grab it and think that that's too
corroborating piece of information. But somebody's just reporting off the
original and so that's a very dangerous thing. And that's
why you heard the chairman, you heard General Kine talk
about allowing the IC to do their independent assessment. That's
why CIA has one versus what the DEA had and
I know that's why a Secretary of Access is bringing
(29:40):
that up to.
Speaker 4 (29:41):
So what you know, interesting times. I mean, there was
a lot of criticism at media. Media reacts to what
gets leaked, right, and that's what we that's what we do,
and we are supposed to be responsible with it and
you know, do our own reporting and check it out.
But we're also there to ask questions. So you know,
I mean, obviously somebody leaked it and put it out there.
(30:03):
So I mean, I'm just trying to understand, you know,
are they right to be so defensive and critical or
this is just kind of how it goes, not the
first administration where stuff gets leaked.
Speaker 14 (30:15):
No.
Speaker 7 (30:15):
Absolutely.
Speaker 13 (30:17):
The biggest thing there is it's we call it raw intelligence,
right if it is unanalyzed data. At that point in time,
data becomes information, information becomes intelligence, Intelligence becomes decisions. So
that's just the way that the military mindset looks. So
if you're at that data layer and you have something
that's leaked that's still at that raw unanalyzed data, then
(30:41):
it's important to know where that is in that So
when it comes to a leak and it's something that
we can't completely substantiate in terms of an actual report
that's been put together, that's why the intelligence community takes
the time that it has. Is why they're safeguards in
intelligence directives that are in place, is to when you
want to publish a report, you have to go through
(31:02):
a lot of different pieces to make sure that you're
not providing misinformation to the American public.
Speaker 4 (31:06):
Well, so in this environment where there's a lot of
tensions between Republicans, Democrats and so on and so forth,
or the White House and members of press at large.
I mean, what we need to do is just kind
of though then be smart and maybe possibly would have
been better to say, listen, guys, it's raw data, so
just understand that it's out there. We've got to deal
with it. We're just going to let you know it's
(31:27):
raw data. And we all know raw data can have flaws.
And that's kind of the point right here, because we
just think about our audience and we're saying the endgame
is to understand what are the enrichment capabilities, nuclear enrichment capabilities,
ever on. That's the endgame, right, and so that's what
all these questions are all about. Ultimately, yep, no.
Speaker 13 (31:47):
Absolutely, when you're trying to put that together, the other
piece of it is, hey, the intelligence community never stops.
Speaker 7 (31:53):
They are going to continue to look.
Speaker 13 (31:55):
Last time we were talking about whether or not they
moved any of the FISTLE material to another location.
Speaker 7 (32:00):
The intelligence apparatus the United States.
Speaker 13 (32:02):
Never sleeps, it never sleeps, So they are going to
confirm or deny everything that is out there, with every
piece of intelligence collection that's underneath the US arsenal.
Speaker 15 (32:13):
Okay, next step, well, I want I want to I
want to ask about the enrich geranium. Okay, yeah, well
we heard we exactly we don't know, well, do we
know where it is? Do you think the US government
actually knows where it is? Because they seem confident in
some comments that we've heard from officials that it was
not moved out of facilities.
Speaker 13 (32:32):
So so that that's the difference I think between commercial capabilities,
uh and military capabilities as well.
Speaker 7 (32:39):
Right, So I trust I trust the military leaders. I
always have.
Speaker 13 (32:43):
Obviously, I think that they've they've earned that respect, they've
earned that trust. And so when when you look at
the difference between it that intelligent, those intelligence apparatus, all
the pieces of information that they have uh in terms
of what they're doing and all that, they're not going
to come out and make an assertion unless they're able
to it up. So I would trust that side a
(33:03):
little bit more when it comes to that because they
have no political agenda involved in being able to do that.
Speaker 7 (33:10):
Right.
Speaker 13 (33:11):
They want the truth because at the end of the day,
they provide the commander in chief and the National Command Authority,
they provide the president with options. They provide them with
the latest and greatest and says here's the situation and
hear your military strike in response options based off of that.
There's no reason to try and skew the numbers or
anything of that nature, because at the end of the day,
(33:32):
then you're making a decision off of bad intel and
nobody wins there.
Speaker 4 (33:36):
All right, We're going to have to leave it there.
It sounds like, you know, we all got to be
a little bit patient and wait for more of the
intel to come in. Hey, Wayne, thank you so much
always walking us through exactly what's going on so that
we have a better understanding. Wayne Sanders, Senior Defense analyst
at Bloomberg Intelligence, joining us once again from Maryland.
Speaker 9 (33:53):
You're listening to the Bloomberg Business Weekdaily podcast. Catch us
live weekday afternoons from two to five pms. Listen on
Apple CarPlay and Android Auto with the Bloomberg Business app,
or watch us live on YouTube.
Speaker 4 (34:08):
Hey, folks, us up forget. We've still got some earnings
and we did have Nike crossing after the closing, bellstock
down about two percent in the aftermarket. Let's get to
our Punam Goyle, who follows Nike as well as e
commerce at leisure. At leisure, excuse me an off price retail.
She's there in our Princeton bureau bi headquarters. All right,
Nike's down. It's been bouncing around. Punhum, what do we
(34:30):
need to know?
Speaker 14 (34:31):
You know, the numbers are better than expected, but the
issue here is the inventory was just flat, and we
expected inventory to be down more. You know, if there's
one thing I'm looking for in this turnaround, it's that
they rework their inventory levels down to get aligned with sales.
So when sales are down double digits and inventory is flat,
it's still a problem.
Speaker 2 (34:52):
We'll explain why you want inventory down.
Speaker 14 (34:55):
Well, they have a lot of inventory that's old in aged, right,
that they just need to sell and get rid of
so they could introduce more new product that resonates better
with shoppers and can drive more full price sales. There's
a lot of old inventory in the pipeline. They've talked
about it. They need to bring it down. I was
surprised with sales doing better that inventory isn't actually down
(35:18):
a lot more.
Speaker 10 (35:20):
So.
Speaker 14 (35:21):
Really, you know, the question going into this call in
just ten minutes is that what is the mix of
this inventory? Is the inventory higher because you have a
lot more new stuff now in it and a lot
of the old stuff is in fact gone? Or is
there still too much of the old stuff?
Speaker 10 (35:38):
Right?
Speaker 4 (35:38):
Doesn't everybody want the snowfer?
Speaker 8 (35:40):
What is it?
Speaker 4 (35:40):
The sneaker loafer? I mean, isn't that the big thing?
Speaker 14 (35:43):
The five hundred dollars one?
Speaker 4 (35:44):
Yes, yeah, that's like the big platform.
Speaker 8 (35:46):
Why is that so expensive?
Speaker 4 (35:48):
Hey, it's not.
Speaker 14 (35:50):
It's one hundred and fifty five dollars when they actually
drop it, I believe if that's the right price.
Speaker 4 (35:55):
The resale prices, right, these are resale price.
Speaker 14 (35:57):
These are resale prices. So you know the prices are
or what they are.
Speaker 4 (36:02):
Just look up by the Nike ticker snow for s
no a FVR like a loafer, snowfer, snoffer, sneaker loafer. Yeah,
we get the cross between sneakers and high heels, right,
I forget right, So we get that, but the guys
get the snow first, all right, So it does. So
what's the number one question you want to you want
to be asking about the inventory? What specifically? Or is
it just as simple as like, why is it still
(36:23):
so high?
Speaker 14 (36:25):
It's actually the mix of it, right, it's an inventory,
they're just flat. How much old inventory still needs to
be cleared? How much of it Have they cleared right?
Speaker 10 (36:34):
So?
Speaker 14 (36:34):
Have they cleared half of it by now, three fourths
of it, a fourth of it versus where they were
last quarter. Just to get a sense of their inventory position,
to know the new and old balance within it, that's
probably my biggest question. And then of course you know
there's questions around the Skims partnership that's being delayed for
this year. What's going on there? Why is it being delayed?
(36:55):
The tarriff question. They're raising prices, but are they seeing
any demand fall off from consumers or consumers pulling back?
That's all uncertainty. We'd love to hear sentiment around new launches,
new product, the basic questions.
Speaker 2 (37:08):
Aside from that, Jeerlan, we're both drawn to this headline
in commentary from Elliot Hill, the president and CEO of
the company, who said, well, our financial results are in
line with our expectations. They are not where we want
them to be moving forward, we expect our business to
improve as a result of the progress we're making through
our win now actions. Matthew Friend, the CFO and EVP,
(37:30):
also said that the fourth quarter reflected the largest financial
impact from our win now actions. Remind everybody what win
now means for Nike investors.
Speaker 14 (37:41):
So this is a strategic plan to get Nike to
come back to growth. So when you think about all
the actions that they've taken, the inventory reductions, staffing reductions,
the investments and technology creating efficiencies, etc. I think what
they're trying to say is we've done a lot of that,
and now here's the path forward. The headwinds will be fewer,
(38:05):
and now they can actually start to push the pedal
to accelerate into growth. So the dirty work is kind
of done, all right.
Speaker 4 (38:12):
So massive company, ninety two billion dollar market caps stocks
down seventeen percent year today.
Speaker 8 (38:18):
I feels to be a bigger market cup it did
used to be.
Speaker 4 (38:20):
And I feel like punam. We've been talking about their
struggles for a while. I mean, is Nike's heyday over
or they just have to kind of figure out the
inventories and get their groove back.
Speaker 14 (38:30):
Their heyday is not over. We actually ran a survey
just probably a few weeks ago that published this week,
and it asked people, just surveyors, one thousand people, this
common question, what do you want to buy in the
next six months? And the number one response when you're
buying sneakers was Nike. So Nike still is very very
visible with people in the US for sure, because that's
(38:53):
where the survey was run. But I'd say even around
the world, it's still the largest athlet uar brand. I
believe that if they can fix their inventory position and
really focus on product, which I think Elliott Hill is
doing and that is what he came in for. I
think they can win back customers as long as they
can stay on top of innovation, true to their game,
true to sports, because Nike is a sports for a company. Yes,
(39:16):
we'd love to see more snowfers or you know, those
kind of things, but at the end of the day,
it's a performance company, right, and I think they have
to stay true to that.
Speaker 4 (39:25):
I don't know if you do this. I sometimes in
the subway and I'm just kind of looking down and
of course all you see is feet, right if you're
sitting or standing, and like I kind of count like
what the brands are. There's a lot of on sneakers
I have on full discleasure, but I do I try
to get an idea of like what people are really
into in terms of what they're wearing on their feet.
I know I'm strange. What can I tell you?
Speaker 14 (39:45):
I do that too, so you're not.
Speaker 8 (39:47):
You guys are both analysts.
Speaker 4 (39:49):
That's the way I had a good company. But here's
the thing to get an idea. A year ago, I'll
look at ages too, to see who's wearing one.
Speaker 2 (39:56):
Wasn't it like a year ago or maybe two years
ago that analyst went to Central Park and he actually
looked at who was running and what and that was
a big issue because Nike had lost market share just
twenty seconds.
Speaker 8 (40:06):
Yeah.
Speaker 14 (40:06):
Absolutely, Look, Nike has lost market share and it is
losing market share. But Ken it went it back as
a question. We think yes, On is definitely growing. But
if you look at the size of the two companies,
you're looking at someone with, you know, more than forty
billion dollars in sales versus someone with less than ten.
So there's a big difference.
Speaker 4 (40:23):
Good point, all right, Nike, you shows down one point
seven percent. Put of you Rock Punam Goyle Senior analysts
for e Commerce at Leisure, off Price Retail at Bloomberg Intelligence,
joining us from BI headquarters in Princent.
Speaker 1 (40:34):
This is the Bloomberg Business Weekdaily podcast, available on Apple,
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