September 22, 2023 • 36 mins
Bloomberg News Autos Reporter Gabrielle Coppola and Diana Lee, CEO at Constellation, discuss the United Auto Workers’ expanding their strike to 38 additional facilities run by General Motors and Stellantis. Eloisa Lewis, CEO of New Climate Culture, explains her work reimagining commercial and residential projects to be more regenerative and disaster resilient. Bloomberg Businessweek Editor Joel Weber and Bloomberg News US Sports Business Reporter Randall Williams share the details of Randall's Businessweek Magazine story Deion Sanders Is Writing the New Playbook of College Football. And we Drive to the Close with Sylvia Jablonski, CEO & CIO at Defiance ETFs.
Hosts: Carol Massar and Jess Menton. Producer: Paul Brennan.
See omnystudio.com/listener for privacy information.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
This is Bloomberg Business Wait inside from the reporters and
editors who bring you America's most trusted business magazine, plus
global business finance and tech news. The Bloomberg Business Week
podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.
Speaker 2 (00:20):
And one story that has definitely continued to evolve this week,
including on this Friday, is a strike by UAW workers
out in Detroit. Today an update, we've got GM and Stilantis,
which owns Chrysler, facing some walkouts at a lot more
facilities as talks with their workers union failed to make headway,
while Ford was spared the escalation after making progress and
its negotiations of checking my headlines to make sure I
(00:42):
haven't missed anything, Let's get to it and let's get
the latest. Because she is front and center on all
of this. Bloomberg News Auto reporter Gabby Coppola on the
phone in Detroit. Diana Lee also with US co founder
and CEO at Constellation. She's here in a Bloomberg Interactive
Brokers studio. Her company is a marketing platform for the
automo of industries, so they help dealerships reach out to customers.
(01:03):
It's a SaaS company. We'll get into it in just
a moment. First of though, Gabby, I do want to
get to you. I can't imagine what your life is
like and how long your days are. But tell us
what's the latest on the strike out?
Speaker 3 (01:15):
There?
Speaker 2 (01:15):
Did Troy and give us some color of what it's
like on the ground.
Speaker 4 (01:20):
Yeah, well I think he did a pretty good summary,
Carol today. You know, earlier this morning, at around ten
o'clock this morning, UAW President Sean Fain said that he
would expand the strike to the parts distribution plants of
GM and Stiland It. So that's thirty eight different facilities
across the country. And what we're talking about here is,
(01:40):
you know, basically the aftermarket parts, you know, whatever you
need to fix your car. You know, Silantis has a
network of ten mopar parts of you know facilities across
the country. Those people are now walking out on strike.
So while the first uh set of the first you know,
the first week was target that just some three key products,
(02:02):
you know, the Ford, Bronco, the jeep wrangler of the
Chevy Colorado. Those are a profitable, you know, very appealing products,
but they are not that is not like putting a
steak in the heart if you really want to hurt
the automakers and go after the pickup trucks, the F
one fifty, you know, the Ram fifteen hundred, the Chevy Silverado,
and the UAW has not gone there. So well, the
(02:22):
first time was like, you know, we're gonna hurt you
a little bit. And that's why I thought you saw
Wall Street not like losing your mind over this because
it's okay, the truck's okay. But now they're going for
things that will affect the automaker's relationship with their customers.
That you know, uh if one you know former Salantis
or Chrisler executive put it to me today, the plants
(02:43):
when they strike the plants, that affects future customers. You know,
if you want to go buy a car, that car
may not be available, and you know, if this will
drag gone longer.
Speaker 3 (02:51):
But with the parts.
Speaker 4 (02:52):
Thing, you are affecting existing customers because they won't be
able to get the things they want, you know, to
make their car runs. And you didn't make the cargo.
Speaker 2 (03:00):
Well, so let's get to you, Diana, because you deal
with the dealerships, that's your customer base who deal with
the customers. So how are you viewing this and what
are you hearing from those dealerships and what's kind of
top of mind as you see this strike play out?
Speaker 5 (03:16):
Yees, So thank you Carol and Gay and Gabby really
well said. My biggest concern is we're not really talking
about how it's affecting consumers right now.
Speaker 2 (03:26):
So is it really affecting consumers yet?
Speaker 5 (03:28):
Though not yet, but very soon it will be because
now we're talking over five thousand employees walking out on
Stilantis and General Motors parts distribution centers. So what does
that basically mean? Anybody that needs OEM parts for Stilantis
(03:49):
or driving a General Motors vehicle that will go to
a car dealership to get a repair is now in
jeopardy of not being able to have that repair right now.
The biggest issues that I'm seeing right now is if
you can actually have an accident or your car breaks
down and you need an OEM part, and you make
(04:10):
a service department scheduling or appointment, you show up, and
now you have to actually wait for the car to
get repaired. If the repair can't be done because there
are no parts, then basically you may have to get
a rental car. But that rental car is also affected
because obviously if they're renting Stilantis or General Motors vehicles,
(04:32):
they will not be able to repair those vehicles as well.
So the other part that I think we're also not
talking about is technicians. You don't need technicians or even
parts people within a dealership if you can't get the
OEM parts into the view.
Speaker 2 (04:48):
So the longer it goes on, they could potentially either
be letting some of those go or something's going.
Speaker 5 (04:51):
To maybe break exactly. And also for dealerships, the profitability
is usually in service and parts. Right, one hundred percent
of their absorption rate is usually covered by the service department,
so it will affect parts and service profitability, dealership profitability.
They may shut down the service and parts center because
(05:12):
they can't actually employ people if the parts aren't there.
Speaker 2 (05:15):
Well, this just gets to duration, right, all of these
things that we're concerned about, whether or not we get
to a soft landing or the FED gets to its
soft landing, is the duration of like the UAW strike
for example.
Speaker 6 (05:26):
Right, and what that could mean for the economy and
how the growth projections for the fourth quarter could be
impacted by that. Gabby, I wanted to bring you back
in this conversation, why is it that when we're looking
at GM and stilliantis those facing more walkouts whereas when
it comes to Ford, why is that being spared more so?
Speaker 4 (05:44):
Yeah, Well, because Ford gave the union a lot of
the key things they were asking for, they've agreed to them,
and it's important to keep in mind, you know, Ford
historically has had a warmer relations with the UAW than
GM or Stillances. They already say that they spend about
a billion dollars a year more than than the JAM
(06:05):
or stlant Is on labor, and part of that is
because they have fewer temporary workers. So that is a
you know, so in a way, you know, the temporary workers,
there's a big difference in pay between If you're a
temp worker, you don't get profit sharing. You start out
at around fifteen seventy eight or sixteen dollars an hour
and you top out around twenty. But if you're a
full time worker, you start, I believe around eighteen and
(06:26):
you can in the topway to thirty two. So there's
a big difference in cost there, and Ford is already
paying those people. They have more, you know, employee, they
have more workers in the United States than GM or Flantis.
So they but so in a way it's less painful
for them. This is this would be making Ford and
Flint just raise their costs, you know, in jandem with
to match what Ford has already been doing. So it
(06:46):
actually help board. And but also Ford said, you know,
they're going to give Temps profit sharing after ninety days.
They agreed to COLA, which is the cost of living allowance.
This is something that the union gave up in two
thousand and nine. And the workers on the line are
very yeah, you know, determined to get that back. And
if I could just say, you know, Carol, I think
(07:08):
you ask to all, what's it like on the picket line.
So I this week I drove down, you know, about
forty five minutes to Toledo, Ohio, to go visit the
people picketing outside the Jeep Wrangler assembly plant. And you know,
one of the things I was struck by was absolutely
people feel the pinch on inflation, you know, And so
even if it's you know, you could argue, well you've
got more money and profit sharing than you did from
(07:30):
if we had given you inflation protection, it doesn't matter.
People want things that are guaranteed. You know, they don't
like leaving things to the whims of the market. That's
how they feel. They want security.
Speaker 2 (07:40):
I totally get it, Diana. I want to ask you,
though the model is changing. Elon Musk showed us that does.
The industry and workers have to continue to acknowledge that,
and that means some jobs will not be needed because
you know, if once again you strangle the companies with
higher costs, a lot of higher costs in this transitional period,
(08:01):
you know, you could be seeing troubles for the industry overall.
At the same time, I am for workers being paid
what they are worth. But just got about thirty seconds here, Yes,
and I think SADDI for dealerships dealerships Elon must doesn't exactly.
Speaker 5 (08:13):
So there are many direct to consumer models that are
evy that's coming out right now, which is competing after
the franchise markets. But at the end of the day,
we continue to actually ignore the fact that franchise markets
have done a lot for internal communities. Right during COVID,
they were the ones that were there that actually distributed
(08:35):
foods to their communities. They're also the ones that you know,
raise money for the little leads and everybody within those areas,
and these family units have run these businesses for fifty years.
Speaker 2 (08:46):
But some would argue straight to consumer, right, We're in
a direct to consumer.
Speaker 5 (08:49):
World, absolutely, and I just feel like at this point
in time, there just needs to be different types of
flexible models for all different types of consumers.
Speaker 2 (08:58):
Gabby five seconds. Should we look for head lines over
the weekend? Yes?
Speaker 4 (09:02):
I think you should.
Speaker 2 (09:03):
Okay, all right, so appreciate it. Bloomberg News Auto reporter
Gabby Coppola out there in Detroit. Dana Lee, co founder
and CEO Constellation. Here in our studio, you're listening.
Speaker 1 (09:12):
To the Bloomberg Business Week podcast. Catch us live weekday
afternoons from three to six Eastern Listen on Bloomberg dot com,
the iHeartRadio app, and the Bloomberg Business app, or watch
us live on YouTube.
Speaker 2 (09:25):
You know, Jess, it's been a little crazy in and
around New York. Are trying to do something this morning,
and it was like a whole block. It's it's just
can't get into buildings, you can't get in. There's barricades everywhere. Right,
It's well tough. It's been the you and general assembly.
It ain't over yet, but we've also had going on
New York Climate Week against the backdrop of Angas, so
(09:46):
we've talked to a lot of voices involved in cutting
carbon and improving our climate. Our next guest working to
help others do exactly just that, So back with us
is Louisa Lewis. She's founder and CEO of New Climate Culture.
It's a biodiversity tank. They're basically focused on delivering climate
solutions to communities and industries around the world while influencing
(10:07):
international policy goals. So really coming at the intersection of
all of this. She is on Montreal or she's in Montreal,
I should say where we find her on Zoom and Luisa,
good to have you here with Jess and myself. Great
to see you again. How doest year on record? Mother
Nature clearly showing us how things have changed, and we
are definitely seeing the impact of it all. From your
(10:27):
advantage point, though, how is the world doing when it
comes to climate solutions, the adoption of those climate solutions
and then really having an impact in making our climate better?
Speaker 7 (10:38):
Thank you so much for having me on and asking
this question. I can see progress, is what I can say.
And when I see progress, it's great because that's exactly
what we have to do. We have to point to
those examples of what's working. For example, I'm seeing cities
all over the world, including in Montreal, that do things like,
(10:59):
for example, in the summer, they shut down portions of
their streets so that there's pedestrian walkways, installing gardens and
planting more trees all over the city. The importance of
that really just can't be underestimated because creating more pathways
for pedestrians to move creatively outside of automobiles, outside of
fossil fuel dependent automobiles specifically, is amazing and provides just
(11:26):
more creativity, more movement in the city. I also see
the influence of having gardens and planting more trees. That
type of activity, especially female trees, having a good balance
of male female trees, is really what's going to help.
Speaker 2 (11:42):
What does that? I think there's people like, what do
you mean? I didn't even know what do you mean
by that?
Speaker 7 (11:48):
Yes, So one of the big problems that has happened
across different different parts of the world, but definitely in
the United States with landscape design and municipal planning is that, Yeah,
like a lot of people don't know enough about the
biology of what they're planting. So maybe like their client
asks them for I want this kind of tree, I
(12:10):
want this cypress tree from Greece, and they're not really
choosing like the right tree for the right climate. And
they're also not choosing female trees or a balance of
male and female trees. So male trees are producing pollen
and female trees are producing fruit and nuts. And the
reason why that distinction is really important is because if
(12:30):
we have a city full of male trees, which you know,
anyone can walk around and observe during throughout the year,
how the trees behave if the tree if they're all male,
then we're gonna have, yeah, all this pollen problems, allergy problems.
We're gonna have to go buy allergy medicine to take
care of just the overcrowded airways. That's uh, that's a
product of this type of environmental choice that we're making
(12:54):
with with our cities, right. And if we have more
female trees, then we have not only you know, food
for the birds, the insects, squirrels, any wildlife that is
coming through the city or around the city, seagulls, whatever,
depending on where you are in the world.
Speaker 3 (13:11):
But you're all for it.
Speaker 7 (13:12):
Also for mushrooms are going to eat that fruit and
nuts that have fall into the ground. But so that's
going to build top soil that's going to feed the
environment and ecostem, maintaining biodiversity, maintaining all the community of
the ecostem that we need.
Speaker 2 (13:28):
But can I jump in for a minute, because it's
got to be more than just planting green plants, right
forgive me, But I mean there's a lot of companies
out there that are making things, doing things I'm curious about.
You know, what are the companies that you might be
working with or you know where you're seeing some significant
changes there. We talked, you know, with a guest yesterday
about the agricultural environment and what's going on in California
(13:53):
in terms of rules and policies, so making kind of
the supply chain. If you basically do anything in California,
you know you're going to have to step up and
meet certain rules and regulations and that's going to make
for greener farming, which we know really can have a
negative impact on the climate if not done in the
right way.
Speaker 7 (14:11):
Yeah, so's I mean, that's something I've been talking about
all year on my interviews. If anyone looks looks that
up online, especially with regards to the hemp and cannabis industry,
We've been teaching how to do the most sustainable practices
in farming policy across the whole US. Because my flagship
farm that I work with and that I'm partnered with
is in Connecticut and it's a USD certified organic hemp farm,
(14:35):
and so and hemp is really important because not only
is it good for materials and industrial materials, and it's
highly renewable, it grows faster, it's more sustainable, it it
seclusters carbon really quickly. It's better than using like a
tree or another type of plant in nine out of
ten cases. But it's also really good at taking heavy
(14:55):
metals and toxins out of the soil, which makes like
a toxic waste site that had plllutants in it. It
can clean that up in a couple of seasons so
that you could actually form food in that soil after
a disaster. But yeah, we are seeing.
Speaker 8 (15:09):
Changes, and I think that another exciting like focus that
people need to hear about in terms of investment and
supply chain is the idea of there's two really critical
supply chains that need the world's focus, and one of
them is being.
Speaker 7 (15:25):
The marine conservancy through help reforestation, through working within vertebrates
and kelp specifically. So there are farmers out there, like
ones that I'm partnered with with my company, who are
showing and demonstrating that we can have these help forests grow,
and Okay, this is what's cool. So not only going
to create agricultural feed with help, it's also human food,
(15:46):
it's also food for the entire marine ecosystem. And further
to boot, Okay, yes, it's Questrian carbons. It's cooling down
our atmosphere while it's growing, right, But not only that,
it's going to help mitigate hurricanes, which means these help
forests are slowing down and helping reduce the impact of
So I don't.
Speaker 2 (16:07):
Hurricanes, right, No, no, no, I totally get all of this.
So I guess what I'm and we've only got about
a minute left here, is Luisa, what is it that
companies that you are seeing or working with that are
doing things, whether it's in fashion, whether it's in architecture,
doing stuff that really helps move the needle, Like, I
don't disagree, and I think most of those folks who
(16:28):
are listening or watching right now, don't disagree with all
the good stuff you're talking about, but who's actually moving
the needle when it comes to reducing the carbon footprint?
And just got about thirty seconds left.
Speaker 7 (16:41):
I think that I'm moving the needle, and my partners
are in this business. Start moving the needle. So that
would be you know, new climate culture, that would be
the climate Foundation, that would be Sound Ocean Science, who's
regrowing coral reefs, farming coral reefs, and anyone who's af
feelated a CEBG guru as another company. There's just a lot.
(17:03):
And I'm taking on hotel clients right now specifically, so
that's going to be the focus of the next quarter
for me, is a couple of hotel clients in two
coastal regions in the US. And so what I can
say is that the people who move from the needle
are the people who have the most ability to range
over all of the complexity, because there's a lot of
(17:24):
moving parts, and if you're not able to come in
and manage all the different intersections of where there's transportation,
there's waste production and Luisa, we have.
Speaker 2 (17:33):
To run operation because if I don't go the computer
is going to go.
Speaker 3 (17:36):
Be well.
Speaker 2 (17:37):
Take care a Luisa Lewis. She is of new climate Culture.
Speaker 1 (17:43):
You're listening to the Bloomberg Business Week podcast. Catch us
live weekday afternoons from three to six Eastern on Bloomberg Radio,
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Just Say Alexa playing Bloomberg eleven.
Speaker 2 (18:12):
All right, everybody, Maybe it's the money, must be the money.
Maybe it's just seeing what else Dion Sanders can do.
That is him rapping?
Speaker 3 (18:21):
Who knew?
Speaker 2 (18:22):
Of course, he's better known for being the only man
to play in both the Super Bowl and the World Series,
and for being so shy kid I kid, and now
coach Prime is writing the new Playbook of college football.
I love every time he's in front of a camera.
Speaker 3 (18:34):
I gotta say.
Speaker 2 (18:35):
This is a feature story in the new issue of
Bloomberg BusinessWeek. It's now on newstands, online at Bloomberg dot com,
slash BusinessWeek, and now on the Bloomberg We're gonna play
a little bit more of Dion Sanders, I promise. On
the way out with us is Randall Williams Bloomberg News
US Sports business reporter, along with the editor of Bloomberg
Business Week, Joel Webber, both here in our Bloomberg Interactive
Broker studio. What can't Dion do, Joel?
Speaker 9 (18:56):
There's probably something but in college football don't.
Speaker 10 (19:00):
I don't know if.
Speaker 9 (19:00):
We've discovered that yet. But you know, big test this weekend.
So what ultimately we wanted to talk about here? And Randall,
who is the lead byline in this along with Ira
budwe uh, really did a marvelous.
Speaker 10 (19:14):
Job nailing this one.
Speaker 9 (19:16):
What ultimately we're talking about here is a new coach
at the University of Colorado. If you haven't been paying
attention to college football, I don't know where you've been,
because this has been a muss Musty TV.
Speaker 10 (19:28):
Uh.
Speaker 9 (19:29):
No one in college football has, as we write in
the deck, harnessed the power of social media. The n
C doua a transfer portal, portal and his own celebrity.
They took Colorado And obviously we're only a couple of
games into the season. This this school has gone from
being a perennial loser to Musty TV. There are so
(19:49):
many millions, billions of dollars Matt Steak that they're there,
that college football is able to influence, that economics of
college football are amazing. And along comes Dion who transfers
into Colorado and has put Colorado on the map, and
(20:10):
it really encapsulates how all of these changes in college football,
no one has been able to leverage it quite like
Dion and make it look at this much fun. That's
pretty So random went to Colorado and got to watch again.
What struck you about what he's building.
Speaker 10 (20:26):
So there's a show called Coach Prime coming out, and there's
an obviously the glitz and glamour, Oh the glitz and glamor,
but none of it is for show. When you're around him,
it is all truly authentic to who he is. There
is no oh, turn it on, turn it off. Coach
Prime is Coach Prime. The quotes are not fake. He
does not like write it down. There is no paper.
(20:47):
Everything that he says on the spot is truly off
the top of his head.
Speaker 2 (20:50):
Is he just the right guy at the right place?
And I'm thinking about Nil and I'm thinking about just
some of the changes that have happened with college athletes.
That he is just so one who gets it and
just came in at the right time, and it's just exploded.
Speaker 10 (21:03):
It's both. He is someone who can relate to college athletes.
Speaker 2 (21:07):
Neil, I always call it Nail. I know it's name, image, likeness,
it's all good, it's all good, but you're just kind.
Speaker 10 (21:12):
He's someone who gets the college life better than anybody.
He was a professional athlete, he was a college athlete,
and he understands marketability probably better than any athlete ever
because he was one of the most marketable athletes in
the nineties. And so when you take that and you say, hey,
I can teach you not only how to play well,
I can get you drafted, and I can get you
exposed more so than maybe any college in the world
(21:36):
as far as athletics go. Because you think about it,
isn't just the media where they're playing at ten am
or twelve am or even a late night game. It
is his social media handle, it is the prime video documentary,
and it's his son social media handles. It's excuse me,
all three of his sons social media handles.
Speaker 9 (21:52):
Also worth mentioning that his son is the quarterback of
the team in the heuts been conversation already. Yeah, so
there's a lot going on here. Sure, I gotta confess
I'm a duck innity of Oregon. That is who Colorado
plays this WEEKND. So this is you know what what
I do appreciate about this is that he is off
(22:14):
to an incredible start, but the season's gonna test him now,
right right right.
Speaker 10 (22:18):
So that's the thing everybody has. When he stepped in,
Colorado was one and eleven last year and now they're
three and oho, so here's three times as many wins.
You could consider that a victory, but he doesn't.
Speaker 3 (22:27):
Now.
Speaker 10 (22:28):
The first three games TCU, I believe lost the majority
of their starters, some graduated, some went to the draft.
Nebraska has had a good defense, but their quarterback has
been a turnover machine. And then the Colorado State game,
it was great theatrics, but they should have blown him out.
Speaker 3 (22:41):
Ye.
Speaker 10 (22:41):
Now Oregon is coming or they're going to Oregon, Colorado
is and it's one of these things where this is
a football talent over the last decade that has been dominant,
and so can Colorado go in there and win? Because
let me tell you right now, if Colorado goes to
Oregon and wins the game where USC comes to Colorado Boulder,
(23:02):
yeah it might be high rated than the national Championship.
Speaker 9 (23:04):
I agree, and it will speak to where college football
is going, where when suddenly we have a big twelve
that has both those teams in it, like, we have
a completely different dynamic, which is why these multi billion
dollar TV deals have become the new language of color football.
Speaker 2 (23:24):
That's what's going to ask you if you lose, does
Foxy We're not coming to the next game?
Speaker 10 (23:28):
No, no, absolutely not. He's too electric. I mean you.
Speaker 3 (23:31):
So.
Speaker 10 (23:31):
I tried to do to work this in the story
and it just didn't make the cut. But I tried
to add all of the.
Speaker 2 (23:36):
Coach editors actually took something story. I bet every nugget.
Speaker 10 (23:41):
I'll no, no, I didn't write this sentence because it
wasn't worth it. So I added every single pack twelve's
Instagram follow coaches Instagram followers together and tried to see
just how much it would be in comparison with It's
not even remotely close. I mean he, I think it
was like me. And so it's one of these things where, yes,
the high train will slow down, the broadcast may not
(24:04):
come out as much, but it's Deon Sanders. He and
his sons and the program are electric. If they're they're
let's say four and four in eight weeks, which I
don't think they will be, But if they are, people
are gonna still be talking about the gimmicks and the
things that they do to make the program fun.
Speaker 9 (24:24):
The element that is also just kind of worth mentioning
there is one of the reasons that he's able to
do all this is because of the transfer portal. So
the team that he inherited and the team that he
has right now take to space completely different rosters, and
that could have never happened really until the past couple
of years. So he's he's been able to like use
(24:46):
that profile that he has. But then also the changes
to the NC double A have enabled it, and if
it happens in college football, it could happen in college basketball, Like, well,
we could see this.
Speaker 2 (24:57):
It is.
Speaker 10 (25:00):
You're very controversial because you're essentially walking into a room
full of athletes who were there before you got there
and saying, well, you guys better get on board or
get out of the world.
Speaker 2 (25:10):
This is what he did in his first meeting right
for the team in Corona.
Speaker 10 (25:13):
But but with that, you know, it's one of these
things where if he doesn't do that and he inherits
these players who maybe didn't win as many games as
they should have or didn't compete to the level that
he wants. Then what Then's then people are going to
be saying, Oh, look, Deon, he could do it to
Jackson State, he couldn't do it at Colorado. So it's
two sided coin. But he's winning right now.
Speaker 3 (25:32):
You know.
Speaker 9 (25:32):
The other thing he's doing is selling sunglasses, and we
did this little side by coming. The merch is also
just worth talking about because so there was some shade
thrown at Dion for not taking his sunglasses in his
hat off and a press conference. He turned that into
motivation and he endorses these sunglasses.
Speaker 3 (25:51):
Right.
Speaker 9 (25:51):
How much product did they sell?
Speaker 10 (25:53):
They sold one point two million dollars for sixty seven
dollars sunglasses in a day. And when I talked to
the blenders I wear the CEO, he said that at
one point time when Dion was on set, they were
selling a pair a second. Oh my god, insane, I
have to say.
Speaker 2 (26:07):
And people go read it, go online, buy the magazine,
just check it out. Because the economic impact of what's
happening in the town in terms of hotel rooms and
just the tickets and so on so forth is unbelievable.
Speaker 10 (26:21):
Seventeen million dollars in just one week. Imagine what's going
to happen if, let's say Lebron says I'm going to
Colorado for the USC game. If he just says that,
imagine what it's going to be by the end of
the season. It could be very well over one hundred
and twenty million dollars prime time.
Speaker 9 (26:37):
It's it's truly like what you know, why you make
a hire like this? But then everything else that has
transpired is obviously going their way, and it's amazing to
see like this football program that really has not been
significant for decades suddenly on the map and being led
by somebody who's truly electrically.
Speaker 2 (26:59):
All right, watch some football, but definitely read this story,
no doubt about it. It's a feature story. Randall Williams
Bloomberg News US sports business reporter and Ira Woodway and
the editor of a business we Jill Weber here, great story.
Speaker 7 (27:13):
I'm brothering macka.
Speaker 10 (27:17):
A journal.
Speaker 3 (27:19):
How about you let me drive?
Speaker 5 (27:20):
No, no, no, no, who's gone to drive?
Speaker 1 (27:22):
Honey?
Speaker 11 (27:23):
Please?
Speaker 10 (27:24):
I'll do the riding gravel. Let's mate, I want to
try it.
Speaker 3 (27:29):
It's good question.
Speaker 1 (27:34):
This is the drive to the Globe dot com tm ME.
Speaker 10 (27:37):
I think we'll buy around?
Speaker 3 (27:38):
Should it on?
Speaker 1 (27:39):
On Bloomberg Radio?
Speaker 2 (27:41):
All right, everybody, just under eighteen minutes left in today's
trading session, getting ready to wrap up the Friday trade
and the weekly train. You got stocks bouncing around here.
We saw some buying just about an hour ago or
about half an hour ago, and now we're seeing kind
of a little bit of a turnaround. But it does
feel like, Jess, a little bit of a breather today.
Speaker 6 (27:57):
It does, especially after the last few tradings have been
pretty vollatile.
Speaker 2 (28:01):
Carol, Right, it's like significant. All right, So let's see
what Sylvia Jablonski has to say. She's CEO and chief
investment officer of our defined CTF. She's with us on
the phone in New York City. Sylvia, nice to have
you back here on another crazy week. Here we are
in twenty twenty three. Let's start macro. How are you
(28:21):
thinking about all that happened today and what kind of
flows are you seeing in terms of investor reaction into
defiance CTFs into or out of for that matter.
Speaker 3 (28:32):
Hi Krol, great to be here with you today.
Speaker 11 (28:34):
Well, it's certainly been an interesting set of days here
around the FED announcement.
Speaker 3 (28:39):
So you know, we just like look at the macro
picture here.
Speaker 11 (28:43):
I think prior to the FED meeting coming up, we
had some decent inflation reads. You know, one was a
little bit hotter than we liked, but overall there was
uncertainty but a little bit of stability, and you know,
corporate earnings were holding up well, the consumer was spending.
We kind of thought that this was going to be
at least clear skies into the end of the year,
with potentially a bullish market. And then you know, POSTCUD yesterday,
(29:06):
we now go back to a little bit of uncertainty
around the prospect of whether or not there's a change
now in the soft landing scenario.
Speaker 3 (29:12):
So we know the Fed was a little hawkish.
Speaker 11 (29:14):
He removed about fifty bits of easing, and the dot
plot went from four to two cuts, and you know,
the market didn't like it, right, So I think over
the last couple of days what we saw was a
little bit of panic selling, and that's often what happens
unfortunately on pullbacks. You know, I often think about that
and sort of wish we would see it the other way, right,
because for sort of dollar cost averaging long term holders,
(29:37):
these are actually the best buying opportunities.
Speaker 3 (29:40):
But investors get a little bit spook.
Speaker 2 (29:42):
So so when you say a little bit, when you
say a little bit, is it really just a little
bit or is it something enough that you guys a
little bit?
Speaker 3 (29:48):
Okay? Yeah, any buying, just a little bit. Any we did,
so we saw a lot of buying on the income side.
Speaker 11 (29:56):
So we've got two products that are meant to generate
enhance income essentially, and we saw really outsized buying actually
in those two funds. And then we saw a little
bit of selling and kind of the tech tech type
of names and the AI play and that's recovering today,
which is of NOE.
Speaker 3 (30:14):
But yeah, that's kind of where we saw the flow
and the action.
Speaker 2 (30:17):
When you speak income equity income, are you talking about
fixed income income?
Speaker 3 (30:22):
Yeah, So I'll give you two examples. There are two tickers.
One is jef p j e p Y and one
is QQQY.
Speaker 11 (30:29):
And what they do is essentially look to sell in
the money puts on a data on a daily basis
of their zero data xpery puts that are in the
money that expire within twenty four hours, and the idea
is that you generate the premium on the daily basis
to hopefully, you know, provide enhanced income to clients.
Speaker 3 (30:48):
By the end of the year.
Speaker 11 (30:49):
So they are products that track an equity INDEXS S
and P five hundred and the NASDAT. But the goal
is really to sell puts and to gather the premium
to pay that out to investors. And so we've just
seen credible demand and interest in these products and they've
actually only been out for a couple of days too.
So income is the name of the game this year.
Speaker 6 (31:06):
I'm glad you brought up puts because when you're looking
at that lack of hedging that's been there the past
few months, especially because of just how cheap it is
now as well, what do you think that really tells us?
And when you're talking about puts being shorter for this
type of duration, does it mask some of the potential
hedging that is going on underneath the surface.
Speaker 3 (31:25):
Yeah, so that's a really interesting question.
Speaker 11 (31:28):
If you look over the last couple of weeks, actually
there's been an increase in volume in you know, kind
of hedges going on the book, so I think a
lot of investors and then obviously the kind of the
professional hedge fund guys and what we're probably doing a
lot of that ahead of the FED meeting. But when
you sell slightly in the money puts, it's actually it's
actually a bullish expression, right, So you know, our view
(31:50):
isn't so much on the direction of the market, but
our view is that, you know, there's there's this volatility
aspect to puts that expire within one day that can
be captured to generate enhanced income essentially. So it doesn't
really have a whole lot to do with with hedging
in the way that we're doing it. But to the
hedging question, you know, I do think that you see
(32:12):
increased volume. And I've been actually studying this a bunch
just because you know, we've kind of come out with
the CTF, but Steeblow has come out with some information
that actually shows that there have been you know, kind
of trillions of AUM and options buying and selling in
recent days. It's been outside, but it's been pretty level,
so the buyers have matched the cells, which is super interesting.
Speaker 2 (32:30):
So this whole idea of like in twenty four hours,
is it a case of like so you kind of
always have your money available kind of thinking or what
is it.
Speaker 3 (32:38):
No, it's actually that you know, you get more bites
at the apple, right.
Speaker 11 (32:42):
Okay, So some of the yeah, the better known strategies
out there are the covered call strategies right where they're
holding let's say the S and P five hundred and
then they're employing a covered call strategy to generate income.
So we kind of just flipped that on its head
and said, well, you know, treasuries are returning five percents.
Instead of holding the SMP, why don't we hold you know,
treasuries and have five percent higher income environment and then
(33:04):
so and the money puts on the actual index and
generate the yield that way.
Speaker 3 (33:08):
So it's really a way to you know, outperform some
of these great covered.
Speaker 11 (33:12):
Cost strategies that are out there and are are you know,
also providing amazing kind of income distributions.
Speaker 3 (33:17):
But you know, our goal is to kind of beat that.
Speaker 2 (33:19):
Should we talk some names?
Speaker 6 (33:20):
We should what are some individual names that you are
advising clients to buy.
Speaker 11 (33:26):
Yeah, So I think given what's going what's gone on
in the last couple of days, you know, there's been
so much fomo this year about you know, not having
gone into the AI.
Speaker 3 (33:35):
Or the text acts and things like that.
Speaker 11 (33:38):
And then when you see you know, kind of days
like this and there's a Friday, it's as we spoke
about before, right, everybody's sort of like panic selling, but
really there should be because of panic buying, right, or
excitement buying there. I think when you get pullbacks, you
think about the future of AI and what that means.
You know, it's going to actually it's not just a buzzword, right,
It's something that's going to change healthcare. It's something that's
(33:58):
going to allow for autonomy striving, for electric vehicles to work,
for smart cities to be connected, you know, for banks
to properly manage their risk, and for all of these
you know, kind of different things that we're we're talking
about as they relate to AI, and you know kind
of what powers AI.
Speaker 2 (34:14):
So you don't think it's getting old and crusty yet,
the AI trade, do you think.
Speaker 11 (34:17):
I don't think it's even started. I think this is
the decade of I think AI is the next technic.
AI supercomputing and quantum computing is the next five to
ten years.
Speaker 3 (34:27):
You know that it's going to be the next five
to ten years. Do you also like test and the
revenues will start coming from it.
Speaker 2 (34:33):
Oh, I'm sorry I jumped in. Do you also like
Tesla and Revie. We've got about thirty seconds left.
Speaker 3 (34:38):
Yeah, love.
Speaker 11 (34:38):
Tesla and Revian also both knocked off of their pedestals
this week, you know, amazing performance into the air. But
what you're seeing there is this great interest in climate change,
you know, going carb but neutral. You see the growth
that Cager has has gone from you know, five percent
of car sold globally to about eighteen percent of cars
sold globally, more than sixty percent of vehicles sold in
China or ev it's picking from the US, you know,
(35:00):
more battery stations, government funding, and tax credits. So it's
it's it's the you know, the FAI is the future tech,
this is the future of otto.
Speaker 2 (35:08):
I find it really interesting just because, right, I feel
like we get to a point where everyone's like, okay,
the growth name stay away from this, right like this,
But she's a Sylvia reminding us that this is the future.
Speaker 6 (35:18):
And we always have this type of argument with tech
and growth, and yet they still continue to power things out.
Speaker 2 (35:23):
They come back Sylvia really smart, Thank you, I'm really thoughtful.
Sylvia Jablonski, CEO and CIO at defined ETFs on the
phone in New York City.
Speaker 1 (35:33):
This is the Bloomberg Business Week podcastle Apple, Spotify, and
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afternoons from three to six Eastern on Bloomberg dot com,
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You can also watch us live every weekday on YouTube
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Speaker 5 (36:00):
Hey,
This is Bloomberg Business Wait inside from the reporters and
editors who bring you America's most trusted business magazine, plus
global business finance and tech news. The Bloomberg Business Week
podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.
Speaker 2 (00:20):
And one story that has definitely continued to evolve this week,
including on this Friday, is a strike by UAW workers
out in Detroit. Today an update, we've got GM and Stilantis,
which owns Chrysler, facing some walkouts at a lot more
facilities as talks with their workers union failed to make headway,
while Ford was spared the escalation after making progress and
its negotiations of checking my headlines to make sure I
(00:42):
haven't missed anything, Let's get to it and let's get
the latest. Because she is front and center on all
of this. Bloomberg News Auto reporter Gabby Coppola on the
phone in Detroit. Diana Lee also with US co founder
and CEO at Constellation. She's here in a Bloomberg Interactive
Brokers studio. Her company is a marketing platform for the
automo of industries, so they help dealerships reach out to customers.
(01:03):
It's a SaaS company. We'll get into it in just
a moment. First of though, Gabby, I do want to
get to you. I can't imagine what your life is
like and how long your days are. But tell us
what's the latest on the strike out?
Speaker 3 (01:15):
There?
Speaker 2 (01:15):
Did Troy and give us some color of what it's
like on the ground.
Speaker 4 (01:20):
Yeah, well I think he did a pretty good summary,
Carol today. You know, earlier this morning, at around ten
o'clock this morning, UAW President Sean Fain said that he
would expand the strike to the parts distribution plants of
GM and Stiland It. So that's thirty eight different facilities
across the country. And what we're talking about here is,
(01:40):
you know, basically the aftermarket parts, you know, whatever you
need to fix your car. You know, Silantis has a
network of ten mopar parts of you know facilities across
the country. Those people are now walking out on strike.
So while the first uh set of the first you know,
the first week was target that just some three key products,
(02:02):
you know, the Ford, Bronco, the jeep wrangler of the
Chevy Colorado. Those are a profitable, you know, very appealing products,
but they are not that is not like putting a
steak in the heart if you really want to hurt
the automakers and go after the pickup trucks, the F
one fifty, you know, the Ram fifteen hundred, the Chevy Silverado,
and the UAW has not gone there. So well, the
(02:22):
first time was like, you know, we're gonna hurt you
a little bit. And that's why I thought you saw
Wall Street not like losing your mind over this because
it's okay, the truck's okay. But now they're going for
things that will affect the automaker's relationship with their customers.
That you know, uh if one you know former Salantis
or Chrisler executive put it to me today, the plants
(02:43):
when they strike the plants, that affects future customers. You know,
if you want to go buy a car, that car
may not be available, and you know, if this will
drag gone longer.
Speaker 3 (02:51):
But with the parts.
Speaker 4 (02:52):
Thing, you are affecting existing customers because they won't be
able to get the things they want, you know, to
make their car runs. And you didn't make the cargo.
Speaker 2 (03:00):
Well, so let's get to you, Diana, because you deal
with the dealerships, that's your customer base who deal with
the customers. So how are you viewing this and what
are you hearing from those dealerships and what's kind of
top of mind as you see this strike play out?
Speaker 5 (03:16):
Yees, So thank you Carol and Gay and Gabby really
well said. My biggest concern is we're not really talking
about how it's affecting consumers right now.
Speaker 2 (03:26):
So is it really affecting consumers yet?
Speaker 5 (03:28):
Though not yet, but very soon it will be because
now we're talking over five thousand employees walking out on
Stilantis and General Motors parts distribution centers. So what does
that basically mean? Anybody that needs OEM parts for Stilantis
(03:49):
or driving a General Motors vehicle that will go to
a car dealership to get a repair is now in
jeopardy of not being able to have that repair right now.
The biggest issues that I'm seeing right now is if
you can actually have an accident or your car breaks
down and you need an OEM part, and you make
(04:10):
a service department scheduling or appointment, you show up, and
now you have to actually wait for the car to
get repaired. If the repair can't be done because there
are no parts, then basically you may have to get
a rental car. But that rental car is also affected
because obviously if they're renting Stilantis or General Motors vehicles,
(04:32):
they will not be able to repair those vehicles as well.
So the other part that I think we're also not
talking about is technicians. You don't need technicians or even
parts people within a dealership if you can't get the
OEM parts into the view.
Speaker 2 (04:48):
So the longer it goes on, they could potentially either
be letting some of those go or something's going.
Speaker 5 (04:51):
To maybe break exactly. And also for dealerships, the profitability
is usually in service and parts. Right, one hundred percent
of their absorption rate is usually covered by the service department,
so it will affect parts and service profitability, dealership profitability.
They may shut down the service and parts center because
(05:12):
they can't actually employ people if the parts aren't there.
Speaker 2 (05:15):
Well, this just gets to duration, right, all of these
things that we're concerned about, whether or not we get
to a soft landing or the FED gets to its
soft landing, is the duration of like the UAW strike
for example.
Speaker 6 (05:26):
Right, and what that could mean for the economy and
how the growth projections for the fourth quarter could be
impacted by that. Gabby, I wanted to bring you back
in this conversation, why is it that when we're looking
at GM and stilliantis those facing more walkouts whereas when
it comes to Ford, why is that being spared more so?
Speaker 4 (05:44):
Yeah, Well, because Ford gave the union a lot of
the key things they were asking for, they've agreed to them,
and it's important to keep in mind, you know, Ford
historically has had a warmer relations with the UAW than
GM or Stillances. They already say that they spend about
a billion dollars a year more than than the JAM
(06:05):
or stlant Is on labor, and part of that is
because they have fewer temporary workers. So that is a
you know, so in a way, you know, the temporary workers,
there's a big difference in pay between If you're a
temp worker, you don't get profit sharing. You start out
at around fifteen seventy eight or sixteen dollars an hour
and you top out around twenty. But if you're a
full time worker, you start, I believe around eighteen and
(06:26):
you can in the topway to thirty two. So there's
a big difference in cost there, and Ford is already
paying those people. They have more, you know, employee, they
have more workers in the United States than GM or Flantis.
So they but so in a way it's less painful
for them. This is this would be making Ford and
Flint just raise their costs, you know, in jandem with
to match what Ford has already been doing. So it
(06:46):
actually help board. And but also Ford said, you know,
they're going to give Temps profit sharing after ninety days.
They agreed to COLA, which is the cost of living allowance.
This is something that the union gave up in two
thousand and nine. And the workers on the line are
very yeah, you know, determined to get that back. And
if I could just say, you know, Carol, I think
(07:08):
you ask to all, what's it like on the picket line.
So I this week I drove down, you know, about
forty five minutes to Toledo, Ohio, to go visit the
people picketing outside the Jeep Wrangler assembly plant. And you know,
one of the things I was struck by was absolutely
people feel the pinch on inflation, you know, And so
even if it's you know, you could argue, well you've
got more money and profit sharing than you did from
(07:30):
if we had given you inflation protection, it doesn't matter.
People want things that are guaranteed. You know, they don't
like leaving things to the whims of the market. That's
how they feel. They want security.
Speaker 2 (07:40):
I totally get it, Diana. I want to ask you,
though the model is changing. Elon Musk showed us that does.
The industry and workers have to continue to acknowledge that,
and that means some jobs will not be needed because
you know, if once again you strangle the companies with
higher costs, a lot of higher costs in this transitional period,
(08:01):
you know, you could be seeing troubles for the industry overall.
At the same time, I am for workers being paid
what they are worth. But just got about thirty seconds here, Yes,
and I think SADDI for dealerships dealerships Elon must doesn't exactly.
Speaker 5 (08:13):
So there are many direct to consumer models that are
evy that's coming out right now, which is competing after
the franchise markets. But at the end of the day,
we continue to actually ignore the fact that franchise markets
have done a lot for internal communities. Right during COVID,
they were the ones that were there that actually distributed
(08:35):
foods to their communities. They're also the ones that you know,
raise money for the little leads and everybody within those areas,
and these family units have run these businesses for fifty years.
Speaker 2 (08:46):
But some would argue straight to consumer, right, We're in
a direct to consumer.
Speaker 5 (08:49):
World, absolutely, and I just feel like at this point
in time, there just needs to be different types of
flexible models for all different types of consumers.
Speaker 2 (08:58):
Gabby five seconds. Should we look for head lines over
the weekend? Yes?
Speaker 4 (09:02):
I think you should.
Speaker 2 (09:03):
Okay, all right, so appreciate it. Bloomberg News Auto reporter
Gabby Coppola out there in Detroit. Dana Lee, co founder
and CEO Constellation. Here in our studio, you're listening.
Speaker 1 (09:12):
To the Bloomberg Business Week podcast. Catch us live weekday
afternoons from three to six Eastern Listen on Bloomberg dot com,
the iHeartRadio app, and the Bloomberg Business app, or watch
us live on YouTube.
Speaker 2 (09:25):
You know, Jess, it's been a little crazy in and
around New York. Are trying to do something this morning,
and it was like a whole block. It's it's just
can't get into buildings, you can't get in. There's barricades everywhere. Right,
It's well tough. It's been the you and general assembly.
It ain't over yet, but we've also had going on
New York Climate Week against the backdrop of Angas, so
(09:46):
we've talked to a lot of voices involved in cutting
carbon and improving our climate. Our next guest working to
help others do exactly just that, So back with us
is Louisa Lewis. She's founder and CEO of New Climate Culture.
It's a biodiversity tank. They're basically focused on delivering climate
solutions to communities and industries around the world while influencing
(10:07):
international policy goals. So really coming at the intersection of
all of this. She is on Montreal or she's in Montreal,
I should say where we find her on Zoom and Luisa,
good to have you here with Jess and myself. Great
to see you again. How doest year on record? Mother
Nature clearly showing us how things have changed, and we
are definitely seeing the impact of it all. From your
(10:27):
advantage point, though, how is the world doing when it
comes to climate solutions, the adoption of those climate solutions
and then really having an impact in making our climate better?
Speaker 7 (10:38):
Thank you so much for having me on and asking
this question. I can see progress, is what I can say.
And when I see progress, it's great because that's exactly
what we have to do. We have to point to
those examples of what's working. For example, I'm seeing cities
all over the world, including in Montreal, that do things like,
(10:59):
for example, in the summer, they shut down portions of
their streets so that there's pedestrian walkways, installing gardens and
planting more trees all over the city. The importance of
that really just can't be underestimated because creating more pathways
for pedestrians to move creatively outside of automobiles, outside of
fossil fuel dependent automobiles specifically, is amazing and provides just
(11:26):
more creativity, more movement in the city. I also see
the influence of having gardens and planting more trees. That
type of activity, especially female trees, having a good balance
of male female trees, is really what's going to help.
Speaker 2 (11:42):
What does that? I think there's people like, what do
you mean? I didn't even know what do you mean
by that?
Speaker 7 (11:48):
Yes, So one of the big problems that has happened
across different different parts of the world, but definitely in
the United States with landscape design and municipal planning is that, Yeah,
like a lot of people don't know enough about the
biology of what they're planting. So maybe like their client
asks them for I want this kind of tree, I
(12:10):
want this cypress tree from Greece, and they're not really
choosing like the right tree for the right climate. And
they're also not choosing female trees or a balance of
male and female trees. So male trees are producing pollen
and female trees are producing fruit and nuts. And the
reason why that distinction is really important is because if
(12:30):
we have a city full of male trees, which you know,
anyone can walk around and observe during throughout the year,
how the trees behave if the tree if they're all male,
then we're gonna have, yeah, all this pollen problems, allergy problems.
We're gonna have to go buy allergy medicine to take
care of just the overcrowded airways. That's uh, that's a
product of this type of environmental choice that we're making
(12:54):
with with our cities, right. And if we have more
female trees, then we have not only you know, food
for the birds, the insects, squirrels, any wildlife that is
coming through the city or around the city, seagulls, whatever,
depending on where you are in the world.
Speaker 3 (13:11):
But you're all for it.
Speaker 7 (13:12):
Also for mushrooms are going to eat that fruit and
nuts that have fall into the ground. But so that's
going to build top soil that's going to feed the
environment and ecostem, maintaining biodiversity, maintaining all the community of
the ecostem that we need.
Speaker 2 (13:28):
But can I jump in for a minute, because it's
got to be more than just planting green plants, right
forgive me, But I mean there's a lot of companies
out there that are making things, doing things I'm curious about.
You know, what are the companies that you might be
working with or you know where you're seeing some significant
changes there. We talked, you know, with a guest yesterday
about the agricultural environment and what's going on in California
(13:53):
in terms of rules and policies, so making kind of
the supply chain. If you basically do anything in California,
you know you're going to have to step up and
meet certain rules and regulations and that's going to make
for greener farming, which we know really can have a
negative impact on the climate if not done in the
right way.
Speaker 7 (14:11):
Yeah, so's I mean, that's something I've been talking about
all year on my interviews. If anyone looks looks that
up online, especially with regards to the hemp and cannabis industry,
We've been teaching how to do the most sustainable practices
in farming policy across the whole US. Because my flagship
farm that I work with and that I'm partnered with
is in Connecticut and it's a USD certified organic hemp farm,
(14:35):
and so and hemp is really important because not only
is it good for materials and industrial materials, and it's
highly renewable, it grows faster, it's more sustainable, it it
seclusters carbon really quickly. It's better than using like a
tree or another type of plant in nine out of
ten cases. But it's also really good at taking heavy
(14:55):
metals and toxins out of the soil, which makes like
a toxic waste site that had plllutants in it. It
can clean that up in a couple of seasons so
that you could actually form food in that soil after
a disaster. But yeah, we are seeing.
Speaker 8 (15:09):
Changes, and I think that another exciting like focus that
people need to hear about in terms of investment and
supply chain is the idea of there's two really critical
supply chains that need the world's focus, and one of
them is being.
Speaker 7 (15:25):
The marine conservancy through help reforestation, through working within vertebrates
and kelp specifically. So there are farmers out there, like
ones that I'm partnered with with my company, who are
showing and demonstrating that we can have these help forests grow,
and Okay, this is what's cool. So not only going
to create agricultural feed with help, it's also human food,
(15:46):
it's also food for the entire marine ecosystem. And further
to boot, Okay, yes, it's Questrian carbons. It's cooling down
our atmosphere while it's growing, right, But not only that,
it's going to help mitigate hurricanes, which means these help
forests are slowing down and helping reduce the impact of
So I don't.
Speaker 2 (16:07):
Hurricanes, right, No, no, no, I totally get all of this.
So I guess what I'm and we've only got about
a minute left here, is Luisa, what is it that
companies that you are seeing or working with that are
doing things, whether it's in fashion, whether it's in architecture,
doing stuff that really helps move the needle, Like, I
don't disagree, and I think most of those folks who
(16:28):
are listening or watching right now, don't disagree with all
the good stuff you're talking about, but who's actually moving
the needle when it comes to reducing the carbon footprint?
And just got about thirty seconds left.
Speaker 7 (16:41):
I think that I'm moving the needle, and my partners
are in this business. Start moving the needle. So that
would be you know, new climate culture, that would be
the climate Foundation, that would be Sound Ocean Science, who's
regrowing coral reefs, farming coral reefs, and anyone who's af
feelated a CEBG guru as another company. There's just a lot.
(17:03):
And I'm taking on hotel clients right now specifically, so
that's going to be the focus of the next quarter
for me, is a couple of hotel clients in two
coastal regions in the US. And so what I can
say is that the people who move from the needle
are the people who have the most ability to range
over all of the complexity, because there's a lot of
(17:24):
moving parts, and if you're not able to come in
and manage all the different intersections of where there's transportation,
there's waste production and Luisa, we have.
Speaker 2 (17:33):
To run operation because if I don't go the computer
is going to go.
Speaker 3 (17:36):
Be well.
Speaker 2 (17:37):
Take care a Luisa Lewis. She is of new climate Culture.
Speaker 1 (17:43):
You're listening to the Bloomberg Business Week podcast. Catch us
live weekday afternoons from three to six Eastern on Bloomberg Radio,
the Bloomberg Business App, and YouTube. You can also listen
live on Amazon Alexa from our flagship New York station
Just Say Alexa playing Bloomberg eleven.
Speaker 2 (18:12):
All right, everybody, Maybe it's the money, must be the money.
Maybe it's just seeing what else Dion Sanders can do.
That is him rapping?
Speaker 3 (18:21):
Who knew?
Speaker 2 (18:22):
Of course, he's better known for being the only man
to play in both the Super Bowl and the World Series,
and for being so shy kid I kid, and now
coach Prime is writing the new Playbook of college football.
I love every time he's in front of a camera.
Speaker 3 (18:34):
I gotta say.
Speaker 2 (18:35):
This is a feature story in the new issue of
Bloomberg BusinessWeek. It's now on newstands, online at Bloomberg dot com,
slash BusinessWeek, and now on the Bloomberg We're gonna play
a little bit more of Dion Sanders, I promise. On
the way out with us is Randall Williams Bloomberg News
US Sports business reporter, along with the editor of Bloomberg
Business Week, Joel Webber, both here in our Bloomberg Interactive
Broker studio. What can't Dion do, Joel?
Speaker 9 (18:56):
There's probably something but in college football don't.
Speaker 10 (19:00):
I don't know if.
Speaker 9 (19:00):
We've discovered that yet. But you know, big test this weekend.
So what ultimately we wanted to talk about here? And Randall,
who is the lead byline in this along with Ira
budwe uh, really did a marvelous.
Speaker 10 (19:14):
Job nailing this one.
Speaker 9 (19:16):
What ultimately we're talking about here is a new coach
at the University of Colorado. If you haven't been paying
attention to college football, I don't know where you've been,
because this has been a muss Musty TV.
Speaker 10 (19:28):
Uh.
Speaker 9 (19:29):
No one in college football has, as we write in
the deck, harnessed the power of social media. The n
C doua a transfer portal, portal and his own celebrity.
They took Colorado And obviously we're only a couple of
games into the season. This this school has gone from
being a perennial loser to Musty TV. There are so
(19:49):
many millions, billions of dollars Matt Steak that they're there,
that college football is able to influence, that economics of
college football are amazing. And along comes Dion who transfers
into Colorado and has put Colorado on the map, and
(20:10):
it really encapsulates how all of these changes in college football,
no one has been able to leverage it quite like
Dion and make it look at this much fun. That's
pretty So random went to Colorado and got to watch again.
What struck you about what he's building.
Speaker 10 (20:26):
So there's a show called Coach Prime coming out, and there's
an obviously the glitz and glamour, Oh the glitz and glamor,
but none of it is for show. When you're around him,
it is all truly authentic to who he is. There
is no oh, turn it on, turn it off. Coach
Prime is Coach Prime. The quotes are not fake. He
does not like write it down. There is no paper.
(20:47):
Everything that he says on the spot is truly off
the top of his head.
Speaker 2 (20:50):
Is he just the right guy at the right place?
And I'm thinking about Nil and I'm thinking about just
some of the changes that have happened with college athletes.
That he is just so one who gets it and
just came in at the right time, and it's just exploded.
Speaker 10 (21:03):
It's both. He is someone who can relate to college athletes.
Speaker 2 (21:07):
Neil, I always call it Nail. I know it's name, image, likeness,
it's all good, it's all good, but you're just kind.
Speaker 10 (21:12):
He's someone who gets the college life better than anybody.
He was a professional athlete, he was a college athlete,
and he understands marketability probably better than any athlete ever
because he was one of the most marketable athletes in
the nineties. And so when you take that and you say, hey,
I can teach you not only how to play well,
I can get you drafted, and I can get you
exposed more so than maybe any college in the world
(21:36):
as far as athletics go. Because you think about it,
isn't just the media where they're playing at ten am
or twelve am or even a late night game. It
is his social media handle, it is the prime video documentary,
and it's his son social media handles. It's excuse me,
all three of his sons social media handles.
Speaker 9 (21:52):
Also worth mentioning that his son is the quarterback of
the team in the heuts been conversation already. Yeah, so
there's a lot going on here. Sure, I gotta confess
I'm a duck innity of Oregon. That is who Colorado
plays this WEEKND. So this is you know what what
I do appreciate about this is that he is off
(22:14):
to an incredible start, but the season's gonna test him now,
right right right.
Speaker 10 (22:18):
So that's the thing everybody has. When he stepped in,
Colorado was one and eleven last year and now they're
three and oho, so here's three times as many wins.
You could consider that a victory, but he doesn't.
Speaker 3 (22:27):
Now.
Speaker 10 (22:28):
The first three games TCU, I believe lost the majority
of their starters, some graduated, some went to the draft.
Nebraska has had a good defense, but their quarterback has
been a turnover machine. And then the Colorado State game,
it was great theatrics, but they should have blown him out.
Speaker 3 (22:41):
Ye.
Speaker 10 (22:41):
Now Oregon is coming or they're going to Oregon, Colorado
is and it's one of these things where this is
a football talent over the last decade that has been dominant,
and so can Colorado go in there and win? Because
let me tell you right now, if Colorado goes to
Oregon and wins the game where USC comes to Colorado Boulder,
(23:02):
yeah it might be high rated than the national Championship.
Speaker 9 (23:04):
I agree, and it will speak to where college football
is going, where when suddenly we have a big twelve
that has both those teams in it, like, we have
a completely different dynamic, which is why these multi billion
dollar TV deals have become the new language of color football.
Speaker 2 (23:24):
That's what's going to ask you if you lose, does
Foxy We're not coming to the next game?
Speaker 10 (23:28):
No, no, absolutely not. He's too electric. I mean you.
Speaker 3 (23:31):
So.
Speaker 10 (23:31):
I tried to do to work this in the story
and it just didn't make the cut. But I tried
to add all of the.
Speaker 2 (23:36):
Coach editors actually took something story. I bet every nugget.
Speaker 10 (23:41):
I'll no, no, I didn't write this sentence because it
wasn't worth it. So I added every single pack twelve's
Instagram follow coaches Instagram followers together and tried to see
just how much it would be in comparison with It's
not even remotely close. I mean he, I think it
was like me. And so it's one of these things where, yes,
the high train will slow down, the broadcast may not
(24:04):
come out as much, but it's Deon Sanders. He and
his sons and the program are electric. If they're they're
let's say four and four in eight weeks, which I
don't think they will be, But if they are, people
are gonna still be talking about the gimmicks and the
things that they do to make the program fun.
Speaker 9 (24:24):
The element that is also just kind of worth mentioning
there is one of the reasons that he's able to
do all this is because of the transfer portal. So
the team that he inherited and the team that he
has right now take to space completely different rosters, and
that could have never happened really until the past couple
of years. So he's he's been able to like use
(24:46):
that profile that he has. But then also the changes
to the NC double A have enabled it, and if
it happens in college football, it could happen in college basketball, Like, well,
we could see this.
Speaker 2 (24:57):
It is.
Speaker 10 (25:00):
You're very controversial because you're essentially walking into a room
full of athletes who were there before you got there
and saying, well, you guys better get on board or
get out of the world.
Speaker 2 (25:10):
This is what he did in his first meeting right
for the team in Corona.
Speaker 10 (25:13):
But but with that, you know, it's one of these
things where if he doesn't do that and he inherits
these players who maybe didn't win as many games as
they should have or didn't compete to the level that
he wants. Then what Then's then people are going to
be saying, Oh, look, Deon, he could do it to
Jackson State, he couldn't do it at Colorado. So it's
two sided coin. But he's winning right now.
Speaker 3 (25:32):
You know.
Speaker 9 (25:32):
The other thing he's doing is selling sunglasses, and we
did this little side by coming. The merch is also
just worth talking about because so there was some shade
thrown at Dion for not taking his sunglasses in his
hat off and a press conference. He turned that into
motivation and he endorses these sunglasses.
Speaker 3 (25:51):
Right.
Speaker 9 (25:51):
How much product did they sell?
Speaker 10 (25:53):
They sold one point two million dollars for sixty seven
dollars sunglasses in a day. And when I talked to
the blenders I wear the CEO, he said that at
one point time when Dion was on set, they were
selling a pair a second. Oh my god, insane, I
have to say.
Speaker 2 (26:07):
And people go read it, go online, buy the magazine,
just check it out. Because the economic impact of what's
happening in the town in terms of hotel rooms and
just the tickets and so on so forth is unbelievable.
Speaker 10 (26:21):
Seventeen million dollars in just one week. Imagine what's going
to happen if, let's say Lebron says I'm going to
Colorado for the USC game. If he just says that,
imagine what it's going to be by the end of
the season. It could be very well over one hundred
and twenty million dollars prime time.
Speaker 9 (26:37):
It's it's truly like what you know, why you make
a hire like this? But then everything else that has
transpired is obviously going their way, and it's amazing to
see like this football program that really has not been
significant for decades suddenly on the map and being led
by somebody who's truly electrically.
Speaker 2 (26:59):
All right, watch some football, but definitely read this story,
no doubt about it. It's a feature story. Randall Williams
Bloomberg News US sports business reporter and Ira Woodway and
the editor of a business we Jill Weber here, great story.
Speaker 7 (27:13):
I'm brothering macka.
Speaker 10 (27:17):
A journal.
Speaker 3 (27:19):
How about you let me drive?
Speaker 5 (27:20):
No, no, no, no, who's gone to drive?
Speaker 1 (27:22):
Honey?
Speaker 11 (27:23):
Please?
Speaker 10 (27:24):
I'll do the riding gravel. Let's mate, I want to
try it.
Speaker 3 (27:29):
It's good question.
Speaker 1 (27:34):
This is the drive to the Globe dot com tm ME.
Speaker 10 (27:37):
I think we'll buy around?
Speaker 3 (27:38):
Should it on?
Speaker 1 (27:39):
On Bloomberg Radio?
Speaker 2 (27:41):
All right, everybody, just under eighteen minutes left in today's
trading session, getting ready to wrap up the Friday trade
and the weekly train. You got stocks bouncing around here.
We saw some buying just about an hour ago or
about half an hour ago, and now we're seeing kind
of a little bit of a turnaround. But it does
feel like, Jess, a little bit of a breather today.
Speaker 6 (27:57):
It does, especially after the last few tradings have been
pretty vollatile.
Speaker 2 (28:01):
Carol, Right, it's like significant. All right, So let's see
what Sylvia Jablonski has to say. She's CEO and chief
investment officer of our defined CTF. She's with us on
the phone in New York City. Sylvia, nice to have
you back here on another crazy week. Here we are
in twenty twenty three. Let's start macro. How are you
(28:21):
thinking about all that happened today and what kind of
flows are you seeing in terms of investor reaction into
defiance CTFs into or out of for that matter.
Speaker 3 (28:32):
Hi Krol, great to be here with you today.
Speaker 11 (28:34):
Well, it's certainly been an interesting set of days here
around the FED announcement.
Speaker 3 (28:39):
So you know, we just like look at the macro
picture here.
Speaker 11 (28:43):
I think prior to the FED meeting coming up, we
had some decent inflation reads. You know, one was a
little bit hotter than we liked, but overall there was
uncertainty but a little bit of stability, and you know,
corporate earnings were holding up well, the consumer was spending.
We kind of thought that this was going to be
at least clear skies into the end of the year,
with potentially a bullish market. And then you know, POSTCUD yesterday,
(29:06):
we now go back to a little bit of uncertainty
around the prospect of whether or not there's a change
now in the soft landing scenario.
Speaker 3 (29:12):
So we know the Fed was a little hawkish.
Speaker 11 (29:14):
He removed about fifty bits of easing, and the dot
plot went from four to two cuts, and you know,
the market didn't like it, right, So I think over
the last couple of days what we saw was a
little bit of panic selling, and that's often what happens
unfortunately on pullbacks. You know, I often think about that
and sort of wish we would see it the other way, right,
because for sort of dollar cost averaging long term holders,
(29:37):
these are actually the best buying opportunities.
Speaker 3 (29:40):
But investors get a little bit spook.
Speaker 2 (29:42):
So so when you say a little bit, when you
say a little bit, is it really just a little
bit or is it something enough that you guys a
little bit?
Speaker 3 (29:48):
Okay? Yeah, any buying, just a little bit. Any we did,
so we saw a lot of buying on the income side.
Speaker 11 (29:56):
So we've got two products that are meant to generate
enhance income essentially, and we saw really outsized buying actually
in those two funds. And then we saw a little
bit of selling and kind of the tech tech type
of names and the AI play and that's recovering today,
which is of NOE.
Speaker 3 (30:14):
But yeah, that's kind of where we saw the flow
and the action.
Speaker 2 (30:17):
When you speak income equity income, are you talking about
fixed income income?
Speaker 3 (30:22):
Yeah, So I'll give you two examples. There are two tickers.
One is jef p j e p Y and one
is QQQY.
Speaker 11 (30:29):
And what they do is essentially look to sell in
the money puts on a data on a daily basis
of their zero data xpery puts that are in the
money that expire within twenty four hours, and the idea
is that you generate the premium on the daily basis
to hopefully, you know, provide enhanced income to clients.
Speaker 3 (30:48):
By the end of the year.
Speaker 11 (30:49):
So they are products that track an equity INDEXS S
and P five hundred and the NASDAT. But the goal
is really to sell puts and to gather the premium
to pay that out to investors. And so we've just
seen credible demand and interest in these products and they've
actually only been out for a couple of days too.
So income is the name of the game this year.
Speaker 6 (31:06):
I'm glad you brought up puts because when you're looking
at that lack of hedging that's been there the past
few months, especially because of just how cheap it is
now as well, what do you think that really tells us?
And when you're talking about puts being shorter for this
type of duration, does it mask some of the potential
hedging that is going on underneath the surface.
Speaker 3 (31:25):
Yeah, so that's a really interesting question.
Speaker 11 (31:28):
If you look over the last couple of weeks, actually
there's been an increase in volume in you know, kind
of hedges going on the book, so I think a
lot of investors and then obviously the kind of the
professional hedge fund guys and what we're probably doing a
lot of that ahead of the FED meeting. But when
you sell slightly in the money puts, it's actually it's
actually a bullish expression, right, So you know, our view
(31:50):
isn't so much on the direction of the market, but
our view is that, you know, there's there's this volatility
aspect to puts that expire within one day that can
be captured to generate enhanced income essentially. So it doesn't
really have a whole lot to do with with hedging
in the way that we're doing it. But to the
hedging question, you know, I do think that you see
(32:12):
increased volume. And I've been actually studying this a bunch
just because you know, we've kind of come out with
the CTF, but Steeblow has come out with some information
that actually shows that there have been you know, kind
of trillions of AUM and options buying and selling in
recent days. It's been outside, but it's been pretty level,
so the buyers have matched the cells, which is super interesting.
Speaker 2 (32:30):
So this whole idea of like in twenty four hours,
is it a case of like so you kind of
always have your money available kind of thinking or what
is it.
Speaker 3 (32:38):
No, it's actually that you know, you get more bites
at the apple, right.
Speaker 11 (32:42):
Okay, So some of the yeah, the better known strategies
out there are the covered call strategies right where they're
holding let's say the S and P five hundred and
then they're employing a covered call strategy to generate income.
So we kind of just flipped that on its head
and said, well, you know, treasuries are returning five percents.
Instead of holding the SMP, why don't we hold you know,
treasuries and have five percent higher income environment and then
(33:04):
so and the money puts on the actual index and
generate the yield that way.
Speaker 3 (33:08):
So it's really a way to you know, outperform some
of these great covered.
Speaker 11 (33:12):
Cost strategies that are out there and are are you know,
also providing amazing kind of income distributions.
Speaker 3 (33:17):
But you know, our goal is to kind of beat that.
Speaker 2 (33:19):
Should we talk some names?
Speaker 6 (33:20):
We should what are some individual names that you are
advising clients to buy.
Speaker 11 (33:26):
Yeah, So I think given what's going what's gone on
in the last couple of days, you know, there's been
so much fomo this year about you know, not having
gone into the AI.
Speaker 3 (33:35):
Or the text acts and things like that.
Speaker 11 (33:38):
And then when you see you know, kind of days
like this and there's a Friday, it's as we spoke
about before, right, everybody's sort of like panic selling, but
really there should be because of panic buying, right, or
excitement buying there. I think when you get pullbacks, you
think about the future of AI and what that means.
You know, it's going to actually it's not just a buzzword, right,
It's something that's going to change healthcare. It's something that's
(33:58):
going to allow for autonomy striving, for electric vehicles to work,
for smart cities to be connected, you know, for banks
to properly manage their risk, and for all of these
you know, kind of different things that we're we're talking
about as they relate to AI, and you know kind
of what powers AI.
Speaker 2 (34:14):
So you don't think it's getting old and crusty yet,
the AI trade, do you think.
Speaker 11 (34:17):
I don't think it's even started. I think this is
the decade of I think AI is the next technic.
AI supercomputing and quantum computing is the next five to
ten years.
Speaker 3 (34:27):
You know that it's going to be the next five
to ten years. Do you also like test and the
revenues will start coming from it.
Speaker 2 (34:33):
Oh, I'm sorry I jumped in. Do you also like
Tesla and Revie. We've got about thirty seconds left.
Speaker 3 (34:38):
Yeah, love.
Speaker 11 (34:38):
Tesla and Revian also both knocked off of their pedestals
this week, you know, amazing performance into the air. But
what you're seeing there is this great interest in climate change,
you know, going carb but neutral. You see the growth
that Cager has has gone from you know, five percent
of car sold globally to about eighteen percent of cars
sold globally, more than sixty percent of vehicles sold in
China or ev it's picking from the US, you know,
(35:00):
more battery stations, government funding, and tax credits. So it's
it's it's the you know, the FAI is the future tech,
this is the future of otto.
Speaker 2 (35:08):
I find it really interesting just because, right, I feel
like we get to a point where everyone's like, okay,
the growth name stay away from this, right like this,
But she's a Sylvia reminding us that this is the future.
Speaker 6 (35:18):
And we always have this type of argument with tech
and growth, and yet they still continue to power things out.
Speaker 2 (35:23):
They come back Sylvia really smart, Thank you, I'm really thoughtful.
Sylvia Jablonski, CEO and CIO at defined ETFs on the
phone in New York City.
Speaker 1 (35:33):
This is the Bloomberg Business Week podcastle Apple, Spotify, and
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Speaker 5 (36:00):
Hey,
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