Latest / Bloomberg Intelligence / US Deploys Marines to LA as Protests Spread to Cities

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US Deploys Marines to LA as Protests Spread to Cities · Bloomberg Intelligence

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Speaker 2: Let's go to LA. What's happening out there with the
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Speaker 2: unrest out there in Los Angeles? Sowry McGregor, Bloomberg managing
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Speaker 2: Eneger of the National Team joins us here. Sarah, can
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Speaker 2: you give us the latest reporting from Los Angeles? Understand?
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Speaker 2: President Trump has or authorized another two thousand troops in
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Speaker 2: addition to seven hundred marines.
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Speaker 3: What's the status, yes, so on the ground now we're
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Speaker 3: told there were hundreds of National Guards yesterday. That's moved
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Speaker 3: up closer to two thousand, with as you said, another
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Speaker 3: two thousand authorized. On the ground, we are hearing that
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Speaker 3: the seven hundred marine are in LA right now. We're
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Speaker 3: not being told their positions, and from what we're seeing
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Speaker 3: from local reporting or what our own reporters are seeing
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Speaker 3: on the ground, they haven't actually been deployed yet, so
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Speaker 3: we're not seeing we're not seeing them. But I think
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Speaker 3: the key question that remains is sort of what are
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Speaker 3: their marching orders, who who are they reporting to, is
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Speaker 3: their coordination with local law enforcement, and sort of how
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Speaker 3: will they react on the ground in terms of trying
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Speaker 3: to control potential protesters. We did see a fourth night
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Speaker 3: of a sort of localized protests in Los Angeles, and again,
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Speaker 3: these aren't massive protests in some ways. It's you know,
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Speaker 3: vandals looting shops and obviously interacting with security forces on
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Speaker 3: the ground. But you know, these aren't aren't massive protests
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Speaker 3: yet that we're seeing in LA.
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Speaker 4: Well, that's exactly what I wanted you to paint a
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Speaker 4: picture of because always when reporting, when you look at pictures,
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Speaker 4: you're always going to look at the worst pictures, right,
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Speaker 4: because that's what we do as a media culture. What's
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Speaker 4: it really like, how peaceful? Where are the breakouts of stress?
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Speaker 4: What does the unrest actually look like?
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Speaker 3: Even before this weekend, there were peaceful protests in downtell
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Speaker 3: at downtown LA other parts of the city, mostly people
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Speaker 3: focused on you know, immigration, anti deportation protesters, So you know,
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Speaker 3: this is something that is an unusual, people gathering to
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Speaker 3: sort of protest ice raids or Trump's immigration agenda. Of course,
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Speaker 3: the violence that we saw up take over the weekend
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Speaker 3: after a spate of raids in the area is what
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Speaker 3: sort of prompted this latest flare up. But that being said,
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Speaker 3: you know what we're seeing right now, you know, both
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Speaker 3: from our reporting and local local media, is that downtown La,
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Speaker 3: parts of South La, Compton, Paramount, and now Santa Anna,
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Speaker 3: which is an Orange County are seeing some of these
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Speaker 3: these protests. So you know, we're in Century City, our
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Speaker 3: office here at Bloomberg in the business district. You know
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Speaker 3: that's you wouldn't know anything that is happening. It's miles
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Speaker 3: away from some of these protests Santa Monica Beach areas,
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Speaker 3: so you know it is it's kind of you know,
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Speaker 3: shut down a highway over the weekend. Again, I don't
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Speaker 3: want to downplay the severity in some respects, but much
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Speaker 3: of the city, if you didn't turn on the news,
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Speaker 3: would not know this was happening.
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Speaker 2: What's been the response from government officials in the state
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Speaker 2: of California.
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Speaker 3: We saw quite the war of words between Newsom and
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Speaker 3: Trump yesterday. We saw Trump suggesting, you know, he wouldn't
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Speaker 3: mind if Newsom was arrested. Of course, there's no grounds.
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Speaker 5: Grounds for that.
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Speaker 3: But you know, kind of back and forth. Newsom posted
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Speaker 3: photos of some of the National Guards sleeping on the
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Speaker 3: floor with their backpacks, saying, you know, they're not being
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Speaker 3: treated even properly. They're not getting food or a place
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Speaker 3: to rest their heads. So, you know, there's a little
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Speaker 3: bit of theatrics going on with the war of words
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Speaker 3: playing out over social media, but at the same time,
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Speaker 3: there's some real issues at play, and I think, you know,
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Speaker 3: the escalation with the Marines yesterday is just another example
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Speaker 3: of how, you know, action is being followed up by
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Speaker 3: some of these words. And Trump in the past has
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Speaker 3: threatened federal funding to the state of California. So that's
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Speaker 3: one of the big things that we're watching for. At
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Speaker 3: what point will this escalate, you know, potentially to more
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Speaker 3: of a militarization, but also potentially funding cuts or other
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Speaker 3: you know, other things.
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Speaker 2: Okay, Sarah, thank you so much for joining us. Appreciate
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Speaker 2: your reporting from Los Angeles. Sara McGregor, National Team Managing
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Speaker 2: editor from Bloomberg News, joining us from La via zoom.
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Speaker 4: We are covering all the news for your business, economics, finance, politics.
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Speaker 4: There are a lens of our Bloomberg Intelligence folks. They
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Speaker 4: cover two thousand companies and one hundred and thirty industries
4:33
Speaker 4: around the world. The news that broke around the closing
4:36
Speaker 4: bell yesterday was RFK Junior removing all members of CDC
4:40
Speaker 4: Vaccine Advisory Panel. So what does that actually mean for us,
4:44
Speaker 4: for the vaccinators and for countries and health and all
4:48
Speaker 4: the things. So we go to Sam Pazzelli, Bloomberg Intelligence,
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Speaker 4: Director of Research for Global Industries and Senior Pharmaceuticals. So,
4:54
Speaker 4: if you get rid of a vaccine advisory panel, like
4:56
Speaker 4: what happens to vaccines?
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Speaker 6: Yeah? So, Alex, this is Remember there's one group at
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Speaker 6: the FDA who decides whether to approve a vaccine or not.
5:07
Speaker 6: So they do the or the analysis on the efficacy
5:09
Speaker 6: and the side effect, profile, risk benefit, et cetera. And
5:12
Speaker 6: then the ACIP, which normally meets three times a year,
5:16
Speaker 6: was the group that decides or is the group because
5:18
Speaker 6: it's not gone, it's just that these the current members
5:21
Speaker 6: have been put aside and new ones are going to
5:24
Speaker 6: be brought on. The ACIP decides how to do it,
5:28
Speaker 6: how to take it, for what, who should take it?
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Speaker 6: Should it be, which is, you know what we've been
5:32
Speaker 6: having those above sixty four, those above fifty, et cetera,
5:36
Speaker 6: et cetera, with commobility without come mobility and how many times,
5:39
Speaker 6: et cetera. That's the kind of thing The ACIP reviewed
5:43
Speaker 6: and decided and gave guidance on that, and then insurance
5:45
Speaker 6: companies went on the back of that.
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Speaker 2: So, Sam, when you replace this entire panel, I don't
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Speaker 2: think it's ever been done before, But my senses, I
5:53
Speaker 2: don't know how quickly they repopulate this panel. But is
5:57
Speaker 2: there the risk that we see a slowdown maybe kind
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Speaker 2: of the distribution of medicine's new end existing.
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Speaker 6: Well. So I wonder whether RFK Junior, the head of
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Speaker 6: the HHS, has already been thinking about this for the
6:13
Speaker 6: past six months or say six months since since he
6:16
Speaker 6: was confirmed, or even before that. It is possible that
6:19
Speaker 6: he has people in mind for those for those roles.
6:23
Speaker 6: It is also possible that and part of the reason
6:27
Speaker 6: for that thinking is that the June ACAP meeting hasn't
6:31
Speaker 6: been canceled. So I suspect in the next week or
6:35
Speaker 6: so we'll be hearing the announcement of the people who
6:38
Speaker 6: are going to be on the panel. Maybe we have
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Speaker 6: to wait until that day itself. I think it's twenty
6:42
Speaker 6: sixth of June, if I'm not wrong, or there or thereabouts.
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Speaker 6: And so it suggests to me that the individuals have
6:48
Speaker 6: been chosen. Now, the interesting thing is that you usually
6:52
Speaker 6: get these folks picked and vetted, and it takes some time.
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Speaker 6: So that's why I'm wondering whether some decisions have all
7:00
Speaker 6: be made. I don't know who would have made the decisions.
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Speaker 6: Maybe Secretary Kennedy has done it himself. I don't know
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Speaker 6: the details, but a group will be back, And of
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Speaker 6: course the question then is who are they, what type
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Speaker 6: of people are they and are they all of the
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Speaker 6: view that fits in with what Sexuary Kennedy has been
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Speaker 6: thinking or what? We'll have to wait and see.
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Speaker 5: Okay, so let's play that fun one of game. Sam.
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Speaker 4: If those that do come on do subscribe to views
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Speaker 4: over vaccines as Secretary Kennedy does, what does that wind
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Speaker 4: up looking like for vaccine stocks?
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Speaker 6: Yeah, as you can tell, I think moderna is not
7:41
Speaker 6: really particularly suffering today or biontic. I think the expectation
7:45
Speaker 6: is that this group will still be an expert group,
7:48
Speaker 6: will be able to decide how vaccines are administered and
7:51
Speaker 6: how they're used. And I don't think there'll be a
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Speaker 6: particularly massive change to the already announced guidance and views
8:01
Speaker 6: i e. Going forward and want place sebo control trials,
8:04
Speaker 6: i e. We want these vaccines to be used in
8:07
Speaker 6: particularly COVID, for example, in people with come mobidities, and
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Speaker 6: not just the entire population, et cetera, which has been
8:14
Speaker 6: what had ended up being happening anyway in reality. So
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Speaker 6: I don't know whether there's going to be a massive shift.
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Speaker 6: Then again, we wait and see who's on this panel.
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Speaker 6: If they end up being non experts in the vaccine world,
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Speaker 6: then you start worring.
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Speaker 2: So, Sam, as you talk at intraditional investors around the world,
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Speaker 2: what is their view towards biotech and big format given
8:34
Speaker 2: maybe some of this changing landscape.
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Speaker 6: Yeah, so biotics had a bit of a reprieve recently,
8:40
Speaker 6: as you remember, a couple of weeks ago or so
8:42
Speaker 6: ten days ago, we talked about some M and A
8:44
Speaker 6: deals that came in some big licensing deal, et cetera.
8:48
Speaker 6: So that has helped sentiment a bit, and I think
8:51
Speaker 6: what the market is not ready for is a real
8:55
Speaker 6: comeback on the most favored nation or anything to do
8:59
Speaker 6: with the tariff some pharmaceuticals, because that's not gone away
9:03
Speaker 6: or the other tariff conversation does not include pharmaceuticals, right,
9:07
Speaker 6: So there is a risk that we've become a little
9:10
Speaker 6: bit complacent maybe with regards to the sector as a
9:14
Speaker 6: whole and what the administration would do, maybe because of
9:18
Speaker 6: the walk backs of some of the tariff talk that
9:22
Speaker 6: had happened with the other sectors, etc. I think there's
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Speaker 6: probably some of that happening. So fingers crossed, nothing shocking
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Speaker 6: or surprising comes out of either of those two fronts.
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Speaker 4: Would we be thinking that there would be some exemptions
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Speaker 4: for some components for some diseases.
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Speaker 6: Well, I think if there is going to be a tariff,
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Speaker 6: it has to be on the important drugs, right, because
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Speaker 6: then if you're a farmer company that produces sixty seventy
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Speaker 6: eighty percent of your product in the US already, then
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Speaker 6: you shouldn't feel an impact from that and you might
9:54
Speaker 6: be able to then switch more manufacturing. But this is
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Speaker 6: what I've said before, you can't say to farmer companies
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Speaker 6: that the reason you should bring manufacturing here because this
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Speaker 6: is your biggest profit center, and then at the same time,
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Speaker 6: with MFN most favorite nation, try and erode that profit capability.
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Speaker 6: That's what I'm worried is one of the guiding principles
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Speaker 6: of the administration.
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Speaker 5: Right, and that obviously has those repercussions.
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Speaker 4: Hey, Sam, really great to check in with you. Sam
10:21
Speaker 4: Bazzelli a Bloomberg Intelligence. He's director of research as well
10:24
Speaker 4: senior pharmaceutical analysts.
10:25
Speaker 5: Thank you very much.
10:28
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10:41
Speaker 4: All right, taking a look at the markets, talk about believing,
10:44
Speaker 4: I mean it feels like a rally. I can say
10:47
Speaker 4: that over the last few days it's stealth, it's not aggressive. Volumes,
10:51
Speaker 4: a little mix, but we keep grinding our way higher.
10:53
Speaker 4: Joyang is head of index product Management at market Vector's Indexes,
10:57
Speaker 4: and she joins us now in our interactive of a
11:00
Speaker 4: broker studio right here, at Bloomberg. So what does this
11:03
Speaker 4: tell us is a strong conviction rally? Is this a
11:06
Speaker 4: grind higher until we get bad news rally?
11:09
Speaker 5: How would you describe it?
11:10
Speaker 7: I think we're all waiting for the headline bombs to drop,
11:13
Speaker 7: but I think investors should be cautious not to interpret
11:17
Speaker 7: a bounds with bottom and you know, taking a perspective
11:22
Speaker 7: year to date, develop markets, emerging markets are still up
11:26
Speaker 7: fifteen to twenty percent compared to two percent, and we
11:31
Speaker 7: have to look at the bond markets and what they're
11:32
Speaker 7: telling us. You know, the yield curve is deepening, So
11:36
Speaker 7: there's still concerns even if there are taf for agreements
11:40
Speaker 7: around inflationary prices, around the US debt, around kind of
11:46
Speaker 7: this backing away from US exceptionalism. So there's still a
11:51
Speaker 7: lot of cautious risks out there that we need to process,
11:55
Speaker 7: and we should have a broader perspective on a handshake
12:00
Speaker 7: versus enforceable agreements, and you know the long term implications
12:06
Speaker 7: of what's going on. So I think overall people probably
12:10
Speaker 7: are adjusting to this new normal, which is you know,
12:13
Speaker 7: we're going to have a lot of policy volatility as
12:17
Speaker 7: well as well as geo political risks, So investors are
12:21
Speaker 7: now stepping into you know, other alternative assets, and that's
12:26
Speaker 7: why we're seeing bitcoin, you know, pretty much increasing all
12:29
Speaker 7: time highs. We're seeing gold kind of like a stabilizing,
12:33
Speaker 7: but we're seeing alternative gold such as silver, platinum, they're
12:36
Speaker 7: reaching all time highs at the moment.
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Speaker 2: So do I just buy ten your treasuries? Do I
12:43
Speaker 2: just buy gold? Do I that's my version of hiding out,
12:46
Speaker 2: or do I go to quality stocks have air quotes.
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Speaker 7: Yeah, diversify away from you know, high tech growth stocks.
12:55
Speaker 7: Look at quality, look at value, look at gold, but
12:58
Speaker 7: look at you know, RelA to value to goal, which
13:01
Speaker 7: is the silver, the platinums. Look at where policy shifts
13:06
Speaker 7: will be more optimistic, which is around where earth metals around.
13:14
Speaker 7: You know, those are the things that governments are focused
13:17
Speaker 7: on and trying to create better regulation or more stimulus package.
13:23
Speaker 7: Look at defense, and we're seeing regulatory clarity around crypto
13:28
Speaker 7: markets also, so that's opening up a new acid class.
13:31
Speaker 7: So really think about diversifying away from just your core holdings.
13:36
Speaker 4: I take a look at the VIX grinding its way lower,
13:39
Speaker 4: but then you look at say the vics six months out,
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Speaker 4: you compare the two and volatility still expected to be
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Speaker 4: quite high on a relative basis six months out.
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Speaker 5: What does that tell you?
13:49
Speaker 6: What?
13:50
Speaker 5: How does that change in asset allocation?
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Speaker 7: I think people are really kind of the vix is
13:55
Speaker 7: reflecting people stepping away and just kind of waiting around.
14:00
Speaker 7: And we've seen kind of this breakdown and correlations between
14:04
Speaker 7: equities and bonds, and we're seeing this changing volatility pattern
14:10
Speaker 7: and crypto acids too. So Bitcoin has been stabilizing and
14:15
Speaker 7: volatility coming down in volatility, whereas some of these stock
14:20
Speaker 7: you know, whether you look at Nvidia or uh pallunteer,
14:24
Speaker 7: those volatilities are going up. So I think investors have
14:28
Speaker 7: to adjust to this new normal and to you know,
14:32
Speaker 7: think about holding different types of asset classes as well as,
14:35
Speaker 7: you know, diversifying away from kind of the traditional core
14:40
Speaker 7: equity bond.
14:41
Speaker 2: What do you make of bitcoin? What's your crypto kind
14:44
Speaker 2: of call? Your shop? How do you guys think about it?
14:46
Speaker 7: I mean crypto overall is you know, it's a very
14:50
Speaker 7: broad asset class. Bitcoin definitely is maturing with institutional focus,
14:56
Speaker 7: and we've also seen recently flows into THEEUM. So as investors,
15:02
Speaker 7: diverse investors come into this. You know, this ecosystem. You're
15:08
Speaker 7: going to see a change of what people are focusing on,
15:12
Speaker 7: which is less of the speculative volatility and more of
15:15
Speaker 7: the use case, whether it's store value or operating or
15:19
Speaker 7: layer one systems. You know, they are ultimately going to
15:24
Speaker 7: produce value and perform differently from equities and bonds that
15:30
Speaker 7: may be subject to more of the macro risks that
15:33
Speaker 7: we're seeing at play.
15:34
Speaker 4: Speaking of quickly Blackstone CEOs your sportsman was talking about
15:38
Speaker 4: investing in Europe. Is the x US trade kind of
15:43
Speaker 4: where you want to be?
15:45
Speaker 7: It's still a good trade given the.
15:47
Speaker 5: Valuation trade or investment, I guess so the better question.
15:51
Speaker 7: It's still you know, look at the relative evaluation. US
15:54
Speaker 7: is still very expensive. There's definitely rest of the world
15:59
Speaker 7: is push towards less reliance on US exceptionalism, you know,
16:06
Speaker 7: providing more stimulus into their own national industries and military defense.
16:12
Speaker 7: So that's going to increase growth opportunities abroad, and as
16:17
Speaker 7: we become I guess more inner or protect our own industry,
16:24
Speaker 7: you know, competition well broaden elsewhere.
16:29
Speaker 2: All right, Joey, thank you so much for joining us.
16:31
Speaker 5: Always appreciate you.
16:32
Speaker 2: Jo a young head of Index Product Management at Market
16:35
Speaker 2: Vector Indexes Bloomberg INTERACTI Brokers Studio.
16:39
Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
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Speaker 1: weekdays at ten am Eastern on Apple Cocklay and Android
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16:53
Speaker 4: Happy Tuesday, everybody, Alex ste you here alongside Paul sw
16:55
Speaker 4: We need. This is Bloomberg Intelligence Radio. We're broadcasting to
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Speaker 4: live from our Interactive Brokers. You're right here in midtown Manhattan.
17:02
Speaker 6: Well.
17:02
Speaker 5: June is Paride month.
17:04
Speaker 4: So over the next couple of weeks we're going to
17:05
Speaker 4: highlight segments on topics related to a quality. And today
17:09
Speaker 4: we're speaking with Chilean Tong CEO of National ACE, which
17:13
Speaker 4: stands for the National Asian Pacific Islander American Chamber of
17:17
Speaker 4: Commerce and Entrepreneurship. As she joins us now from Washington, DC,
17:21
Speaker 4: it's a pleasure to spend this.
17:23
Speaker 5: Time with you. Thank you so much for joining us.
17:26
Speaker 4: What has been the tariff effect on Asian small businesses
17:29
Speaker 4: so far? We heard from the nfi B that optimism increase,
17:33
Speaker 4: but the taxes are still a main concern.
17:37
Speaker 8: Well, Paul, Alex, thank you so much for you care
17:39
Speaker 8: about the Asian American business community issue. We know the
17:44
Speaker 8: trade the landscape can be very tricky and we acknowledge
17:48
Speaker 8: administration's efforts to negotiate a new trade agreements to deal
17:53
Speaker 8: with a fair trade practice and set a pass to
17:56
Speaker 8: open market ass for American export. Ever, with uncertainties around
18:02
Speaker 8: the trade deals, business of all sides feel the pressure. Recently,
18:07
Speaker 8: at the National AIDS Capital Health Day, we took about
18:11
Speaker 8: sixty small business owner to meet with forty congressional office.
18:15
Speaker 8: They all talk about how tariffs are affecting their business.
18:20
Speaker 8: They are very worried about uncertainty, rising costs, and cancelation.
18:26
Speaker 8: It is very important for them to share their experience
18:29
Speaker 8: with policymaker to ensure trade policy support their needs. I
18:34
Speaker 8: would like to share with you two stories from small
18:38
Speaker 8: business owner from both importing and exporting. Mister Ty's chili
18:43
Speaker 8: oil was popular after TikTok video had over one hundred
18:48
Speaker 8: and twenty five thousand views and new tariffs had made
18:51
Speaker 8: their key ingredients chili flicks from China about fifty six
18:56
Speaker 8: percent more expensive and the glass shared a bottles one's
19:01
Speaker 8: thirty four per cents each. Now it costs nearly about
19:05
Speaker 8: four times as much, and the owner Lucky Wing, said
19:09
Speaker 8: they picked a very specific bottle style on China and
19:14
Speaker 8: invested in it early on. Not with these press jumps,
19:18
Speaker 8: they cannot afford to use them anymore. Another story from exporterer.
19:23
Speaker 5: Yes, go ahead, Well, just what was.
19:24
Speaker 2: The response when you from some of the lawmakers when
19:27
Speaker 2: you went down to speak with them. Were they sympathetic
19:30
Speaker 2: to some of these small business owner concerns?
19:33
Speaker 7: Oh?
19:33
Speaker 8: Yes, absolutely. I think we talk with both Republican and
19:37
Speaker 8: Democrat member of Congress and that's what they say. Share
19:41
Speaker 8: the story, share the story with the administration, share the
19:45
Speaker 8: storyigs member of Congress, and have the stakeholder. We have
19:50
Speaker 8: about one hundred and thirty affiliate chambers partners or the country,
19:54
Speaker 8: so we encouraging they also encourage them to share the story.
19:58
Speaker 8: Let people know the reality.
20:01
Speaker 4: What are the barriers to federal support and to access
20:05
Speaker 4: to capital from Asian small business owners?
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Speaker 8: Well, for access to capital part, I think this is
20:12
Speaker 8: a very very important. For the past few years since COVID,
20:17
Speaker 8: we always deal with access to capital. We had a survey.
20:22
Speaker 8: We had twenty twenty four restern funds for the past
20:27
Speaker 8: since twenty twenty one we have a giving about a
20:30
Speaker 8: ten million dollars grant. So for those applicants, what is
20:35
Speaker 8: seven percent of applicants share that their main source of
20:39
Speaker 8: capital for their business that come from personal funds and
20:43
Speaker 8: only twenty one percent indicate loans and credit from traditional
20:47
Speaker 8: financial institution. So therefore, when we talk to the federal
20:52
Speaker 8: agency and also the administration, we really want them to
20:55
Speaker 8: develop more a small business program and accessible funding and
21:00
Speaker 8: grant program for a small business owner for example, like
21:04
Speaker 8: a minority business defounder agency. They used to have a
21:08
Speaker 8: capital readiness program then able to share and the technical
21:13
Speaker 8: as system to support small business to get the funding.
21:17
Speaker 8: But now they are kind of you know, eliminating that,
21:21
Speaker 8: but hopefully they will get back soon.
21:24
Speaker 2: So what if you heard chilling from your small business
21:27
Speaker 2: owners about the labor market here with the illegal migration
21:32
Speaker 2: has effectively come to a halt in the southern border.
21:34
Speaker 2: Are they seeing that in their businesses the more difficult
21:38
Speaker 2: to hire people.
21:40
Speaker 8: Well, I think since COVID they had difficulty to hire people,
21:45
Speaker 8: especially restaurant owners. They're always short of workers. But we
21:50
Speaker 8: just feel Chinese Chinatown, like Chinatown small business owner, they
21:56
Speaker 8: always have a way to demonstrate incredible ras aliens and
22:01
Speaker 8: even for you're right, the label shortage and also other
22:05
Speaker 8: things really a big concern.
22:07
Speaker 2: Chilling, thank you so much for joining us. Really appreciate
22:09
Speaker 2: getting a few minutes of your time. Chilling Tongue, CEO
22:12
Speaker 2: of the National ACE, which is a national association, our
22:15
Speaker 2: national Asian Pacific Islander American Chamber of Commerce and Entrepreneurship.
22:20
Speaker 2: So the tariffs having impact on all businesses we hear
22:23
Speaker 2: not on the conference calls of all the corporations that
22:26
Speaker 2: we talk to all the time, but perhaps even more
22:30
Speaker 2: pronounced for the small business owner who doesn't may not
22:32
Speaker 2: have obviouly the financial resources or the flexibility in their
22:35
Speaker 2: business model to withstand higher taxes so or higher tariffs
22:39
Speaker 2: on some of their input.
22:40
Speaker 5: I mean even JM.
22:41
Speaker 4: Smunkers, which is clearly not a small business, is having
22:44
Speaker 4: a hard time with those increasing costs. Also increasing costs
22:47
Speaker 4: in its coffee business, which is going to hurt profit
22:49
Speaker 4: by about one dollar a share, So there is that
22:52
Speaker 4: as well.
22:53
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