Single Best Idea with Tom Keene: Wei Li & David Westin

Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio.

In this episode, we feature conversations with Wei Li & David Westin.

Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news.

Speaker 2 (00:15):
Single best idea. We'll be quick about it. On a Monday,
sort of an odd Monday to say the least. Some
merger activity, but just a really eclectic set of conversations.
We did the H one B debate. Boy, we went
on both sides, Presidents correct, bring it on American for
America jobs, and a whole other side saying, you know what,

(00:37):
there's not enough engineers in America for the need, and
on we went, That's what we want to do is
generate the conversation around some of these seismic events. Waylee
was in with Blackrock, I asked her just the mathematics
dynamics of the massive capex in artificial intelligence.

Speaker 3 (00:56):
I would say that actually, it's remarkably hard to get
precise number written an investment for these capex because it's
quite well hidden and they're not obligated to report them
in a very precise form. But I would make the
general observation that markets are letting them off the hook
right now because it's really an existential build out race.

(01:17):
You're either spending and overspending to stay in the game
and stay on the table, or you will be viewed
as well, you won't be part of the future mix, right,
So I think markets are giving these tech companies some
leeway to spend and overspend. We pay attention to free
cash flow as a percentage of free cash flow. It's
gone up quite a bit in terms of the kapex spent,

(01:39):
but not to a level that they can't afford. Not
to mention, they can always having too funding market public
and private to raise additional cash to spend. Right So,
you know, like right now, it's still early in this
in this journey, and we see all systems go when
it comes to AI build out.

Speaker 2 (01:57):
Really a black Recers thought that was really wonderful. I
do want to say if I go to the Bloomberg
terminal in the FA screen, I and I think all
of us underestimate the cash generation of these juggernauts. Wayley
alluded to that, but it's just jaw dropping to see
the ability to raise cash from profit at some of

(02:21):
these technology country companies. It was a tree today to
have David Weston in the studio, of course, the driving
force of Wall Street Week here at Bloomberg. We talked
to him about education, higher education, the struggles of the universities.
But they did an audible and he was wonderful. David
Weston is the former leader of ABC News. Michael Eisner

(02:46):
was out with a blistering critique of Disney and ABC
this weekend. Of course, he did so much to further
the career of mister Eiger. As an aside, I saw
Sarah mcglough from the Canadian singer Songwriter saying she's not
gonna do Lilith Fair project with Disney. Okay, fine. We
asked David Weston about this moment for Disney and ABC.

Speaker 1 (03:10):
Bob has been a very powerful, very successful CEO, done
his way too soon, but is there a real issue
here for his long term reputation and brand. I would
have to say, as his friend, Yeah, you got a problem,
and I don't know exactly how you get out of this.
I don't think. I do think is I think Jimmy
Kimmel is going to have to sit down with somebody
and talk, and Bob Iger is going to have to

(03:31):
sit down with somebody, and mister.

Speaker 2 (03:33):
Kimmel has to speak with ABC and Disney or talk
to somebody else.

Speaker 1 (03:37):
They've got to figure out how to deal with the public.
I mean, Bob has got to explain what he did
at somewhere sometime, somehow, which he doesn't want to do.
I'm sure he's got to do.

Speaker 2 (03:46):
That, completely unrehearsed and unplanned. David Weston of Wall Street.
We here at Bloomberg an event for a week. Here.
I have to try to get home in the un
traffic for all of us. It's a battle. Some of us.
We may sleep under a park bench at Central Park
on Tuesday or Wednesday. We're on a podcast Apple and

(04:07):
Spotify on YouTube podcasts at single best idea