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Programmatic Advertising Is the Future, Trade Desk CEO Says · Bloomberg Intelligence

• 0:05
  Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm pim Fox.
• 0:08
  Speaker 1: Along with my co host Lisa Abramowitz. Each day we
• 0:11
  Speaker 1: bring you the most important, noteworthy, and useful interviews for
• 0:15
  Speaker 1: you and your money, whether you're at the grocery store
• 0:17
  Speaker 1: or the trading floor. Find the Bloomberg p m L
• 0:20
  Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. Well,
• 0:32
  Speaker 1: one investment that is working today happens to be Trade
• 0:35
  Speaker 1: Desk that shares are hired by about two and a
• 0:38
  Speaker 1: half percent. They gained twelve percent on the open and
• 0:42
  Speaker 1: Trade Desk is an online auction platform for digital advertising.
• 0:47
  Speaker 1: Here to tell us about it is the chief executive,
• 0:50
  Speaker 1: Jeff Green. Jeff, thanks very much for being with us. Oh,
• 0:53
  Speaker 1: thank you. Excited to be here all right. Well, congratulations
• 0:56
  Speaker 1: about today's earnings report. The market seems to be loving it.
• 0:59
  Speaker 1: It's up about Your stock is up about two after
• 1:02
  Speaker 1: being up more than ten percent in early trading. How
• 1:04
  Speaker 1: do you describe your company to people that are not
• 1:07
  Speaker 1: familiar with the inner workings of internet advertising? So we
• 1:13
  Speaker 1: essentially help advertisers and especially their agencies by everything except
• 1:19
  Speaker 1: for Google and Facebook. So there's this giant Internet that
• 1:23
  Speaker 1: powers TV and radio and things like Spotify that also
• 1:28
  Speaker 1: have ads on them. Uh. And so instead of just
• 1:30
  Speaker 1: trying to monetize Google and Facebook, we're helping them get
• 1:33
  Speaker 1: ads on the rest of the Internet. How do you
• 1:35
  Speaker 1: help them get those ads? Well, so what what they
• 1:40
  Speaker 1: do is they'll come up with the creative but UH,
• 1:42
  Speaker 1: figuring out like what is Yahoo worth to them compared
• 1:46
  Speaker 1: to what is Spotify worth to them compared to what
• 1:49
  Speaker 1: is CBS dot com worth to them is a really
• 1:53
  Speaker 1: hard assignment. So we give them technology that helps them
• 1:56
  Speaker 1: figure out where they should spend and what they should
• 1:59
  Speaker 1: pay and how they should allocate. Now you have a
• 2:02
  Speaker 1: you're a veteran of the advertising industry. You sold one company,
• 2:06
  Speaker 1: I believe to Microsoft. What the what propelled you to
• 2:10
  Speaker 1: to start trade desk and how is it different? Yeah?
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  Speaker 1: So the last business that I created is uh was
• 2:18
  Speaker 1: an ad exchange. So you can think of that like
• 2:20
  Speaker 1: the New York Stock Exchange. UM. So, we we built
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  Speaker 1: this exchange and once it became inevitable that ads would
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  Speaker 1: actually be traded through these exchanges, which, as your listeners, no,
• 2:32
  Speaker 1: exchanges are a great great way to get price discovery
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  Speaker 1: and liquidity. Once that model became inevitable. What we, instead
• 2:41
  Speaker 1: of being exchange wanted to build was a platform to
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  Speaker 1: help people participate on the exchanges. So let's give them
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  Speaker 1: the text so that they know, uh, what to buy,
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  Speaker 1: where to buy it, and we can make more money
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  Speaker 1: and add more value that well, we're gonna yeah, that's
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  Speaker 1: where I want to go with the with the money
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  Speaker 1: for a second, because there is a range. For example,
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  Speaker 1: I understand, let's say you have inventor advertising inventory that
• 3:05
  Speaker 1: costs fifteen dollars per CPU, right, per thousand impressions. But
• 3:12
  Speaker 1: let's say you're sold out of that in your at inventory,
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  Speaker 1: what would you do? Well, So it's a really really
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  Speaker 1: big internet, right, So there, Uh, if if you didn't
• 3:23
  Speaker 1: have a video available on on Yahoo, um, there will
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  Speaker 1: be one on a o L. There will be one
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  Speaker 1: on somewhere else. And so one thing that is actually
• 3:33
  Speaker 1: really works in our favor is that we only help buyers.
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  Speaker 1: Were just in the business of helping buyers decide what
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  Speaker 1: to buy. So we're on the buy side, and there's
• 3:44
  Speaker 1: a bunch of other companies that focus on the cell side.
• 3:47
  Speaker 1: But because and unfortunately all of us as consumers know this, uh,
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  Speaker 1: it is actually not that hard to create more supply
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  Speaker 1: of ads on the internet. As soon as you get
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  Speaker 1: close to sold out, you can just throw another on
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  Speaker 1: the page, throw another thirty second spot in a commercial break.
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  Speaker 1: And so because of that phenomenon, we've predicted that it
• 4:08
  Speaker 1: will always be a buyer's market because there will always
• 4:11
  Speaker 1: be more supply than there is demand. And as a result,
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  Speaker 1: that helps our business always sort of be in the
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  Speaker 1: power position. And does that also mean that targeted ads
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  Speaker 1: and programmatic UH content is worth more too specific advertisers, Oh,
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  Speaker 1: without a doubt in fact, that that's the future. So
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  Speaker 1: in the future, there will be fewer ads, they will
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  Speaker 1: be way more relevant. Consumers won't hate them as much
• 4:40
  Speaker 1: because they'll all be something that they're interested in. That
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  Speaker 1: means that advertisers waste less money. It means that publishers
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  Speaker 1: make more money. UH. Where the advertising industry is heading
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  Speaker 1: and frankly where we're taking it is a much better
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  Speaker 1: world than the one that we have today. But with
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  Speaker 1: that comes higher ices for for my clients, which will
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  Speaker 1: gladly pay because it's more effective than the increased costs.
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  Speaker 1: Are there any misconcert maybe what's the largest misconception that
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  Speaker 1: people have about the way the online ad business works,
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  Speaker 1: and particularly about how the referrals based on your viewing
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  Speaker 1: pattern or your activity the suggested stories. Is there something
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  Speaker 1: that people really need to know behind the scenes. Um so,
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  Speaker 1: I think the biggest thing is just that Google and
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  Speaker 1: Facebook get a lot of credit for being amazing companies.
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  Speaker 1: I do think they're unbelievable companies. I mean, Facebook has
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  Speaker 1: done a better job of building advertising on ramps. They
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  Speaker 1: power millions of advertisers. Google has done the same thing.
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  Speaker 1: In fact, I've said many times I think Google is
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  Speaker 1: the greatest invention of our lifetime. It's just changed the
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  Speaker 1: way information is distributed. But both of those companies primarily
• 5:53
  Speaker 1: focus on monetizing their own properties. Right. They monetize Facebook
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  Speaker 1: dot com, Google dot com, and YouTube dot home. And
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  Speaker 1: so what many people don't know or or haven't really
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  Speaker 1: thought about is how does the rest of the Internet
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  Speaker 1: get monetized and where we come in as we just say, hey,
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  Speaker 1: we're an objective player that doesn't own any media. We
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  Speaker 1: don't own, right, You're just working on behalf of your
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  Speaker 1: of your clients to place the ads where they where
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  Speaker 1: they need to be. Thanks, very interesting, Thank you very much.
• 6:21
  Speaker 1: Jeff Green is the chief executive of the trade desk.
• 6:24
  Speaker 1: You can follow them on the symbolist t t D.
• 6:27
  Speaker 1: The shares of Facebook are up more than so far
• 6:31
  Speaker 1: this well, the shares are j C. Penny are down
• 6:46
  Speaker 1: more than sixteen percent this morning. And uh, well that
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  Speaker 1: should tell you almost everything you need to know about
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  Speaker 1: the industry. Craig Johnson, though, is here. He's the president
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  Speaker 1: of Customer Growth Partners based in New Canaan, Connecticut. And Craig,
• 6:58
  Speaker 1: all right, so we know that j C. Penny is down.
• 7:01
  Speaker 1: We've heard the news from Macy's, from Coals, from Dillard's.
• 7:04
  Speaker 1: List goes on, are we at a bottom? Well, we
• 7:08
  Speaker 1: do think the sector's bottoming. PIM is nice as to
• 7:10
  Speaker 1: catch up, by the way, and so, um, here's the
• 7:14
  Speaker 1: sector that for years has been bleeding market share. Uh.
• 7:18
  Speaker 1: This year sales are down about five year of a
• 7:21
  Speaker 1: year to date um uh. And that is while the
• 7:25
  Speaker 1: retail sector overall is growing about three and a half
• 7:28
  Speaker 1: maybe four. So you do the math. That's when you're
• 7:32
  Speaker 1: growing slower than the market, you're going to be losing
• 7:36
  Speaker 1: market share. Um. And so we think, however, because many
• 7:41
  Speaker 1: of the stores are taking steps to reduce cost and
• 7:45
  Speaker 1: to shrink their square footage, footprint. Um, they're able to
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  Speaker 1: get cost and sales more in line. And when you
• 7:52
  Speaker 1: match up supply demand, uh, that is the first step
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  Speaker 1: to bottoming. And then you've got to shrink first and
• 7:58
  Speaker 1: then grow later. Who do you believe is doing the
• 8:00
  Speaker 1: best job right now? You you you listen, you know,
• 8:04
  Speaker 1: four or five papers companients ago, But in this sector,
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  Speaker 1: Nordstrom continues to set the pace. Now. The one thing
• 8:12
  Speaker 1: they do share with all the other players, whether J. C.
• 8:15
  Speaker 1: Penney or Macy's or whoever, is that store only comps
• 8:20
  Speaker 1: from the full line, the full price Nords and sources
• 8:23
  Speaker 1: about those are still comping negative, slightly negative in nordstrom sake.
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  Speaker 1: Tough to get away from that. But what they've done
• 8:31
  Speaker 1: is Nordstrom dot Com, the Rack, Nords from Rack, the
• 8:35
  Speaker 1: Rack dot com outlook, et cetera. They're different portals of
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  Speaker 1: reaching the customer are all otherwise positive and so that's
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  Speaker 1: why they are able to pull together, you know, pretty
• 8:47
  Speaker 1: solid positive overall comp at Nords from and you know,
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  Speaker 1: gave pretty positive signals relative to going forward. All right,
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  Speaker 1: So alright, Nordstrom maybe an example of elite in how
• 9:00
  Speaker 1: to fix things? Are they also part of this mall.
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  Speaker 1: This trend in what's going on in malls because you
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  Speaker 1: hear about all the mall is dead and so on,
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  Speaker 1: but hasn't traffic kind of come back to the mall. Well,
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  Speaker 1: that's exactly right, that's what we're seeing. Um Uh. The
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  Speaker 1: mall traffic has been has been declining for you know,
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  Speaker 1: a good couple of years now, and this year until
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  Speaker 1: you know, until about the fourth of July was down
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  Speaker 1: about six percent by us maybe six seven uh for
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  Speaker 1: for traditional malls. Uh. What we have seen is that
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  Speaker 1: that six percent hasn't inflected positive It's not certainly plaus
• 9:38
  Speaker 1: six percent, but instead it's gone throughout minus six to
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  Speaker 1: about minus three as of July. So again we have
• 9:45
  Speaker 1: to make sure that's sustained over time. But it's some
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  Speaker 1: of the best traffic year of year traffic that we've seen,
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  Speaker 1: um uh, you know, in in going on a year.
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  Speaker 1: So it's it's it's it's a positive sign. But by
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  Speaker 1: no means or malls out of the woods yet. And
• 10:00
  Speaker 1: back to school, how is that going to play out? Well,
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  Speaker 1: we're right at the peak of the back to school
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  Speaker 1: season now start in July and it peaks in in
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  Speaker 1: in early mid August. Uh, and so far that's actually
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  Speaker 1: shaping up pretty well, as I'm sure you know, for
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  Speaker 1: department stores, it's a key uh selling season, you know,
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  Speaker 1: number two behind um um uh, you know, behind Holiday.
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  Speaker 1: But for the specialty stores, uh and then the big
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  Speaker 1: box stores which as such as you know Walmart, you know,
• 10:28
  Speaker 1: Target and so forth, this is a very big season.
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  Speaker 1: And so far, you know, it's still you know, we're
• 10:33
  Speaker 1: just not quite the halfway point of it, but it's uh,
• 10:36
  Speaker 1: it seems to be on track. It seems to be
• 10:38
  Speaker 1: doing pretty well. Well. How do you expect, I know,
• 10:41
  Speaker 1: we're gonna get results Home, the Home Depot, Target, Walmart
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  Speaker 1: and so on, t j X, H. What what's your
• 10:46
  Speaker 1: outlook for those companies? Well, we're the particular companies I
• 10:50
  Speaker 1: mentioned we're pretty optimistic on and you know, one of
• 10:53
  Speaker 1: the things we say to our clients is that don't
• 10:57
  Speaker 1: don't read too much into the overall retail sector from
• 10:59
  Speaker 1: the department stores, which are there only one point six
• 11:02
  Speaker 1: percent of the market. But you get companies like you know,
• 11:04
  Speaker 1: Walmart and and and UH and and Home Depot and
• 11:09
  Speaker 1: the Lows and t j X and Ross all reporting
• 11:13
  Speaker 1: over the next week or so, and the numbers are
• 11:15
  Speaker 1: almost always going to almost gonna be uniformly positive. Um,
• 11:19
  Speaker 1: you know, Walmart is slowly coming back to health. It
• 11:22
  Speaker 1: may not be the heavy growth days of the early
• 11:25
  Speaker 1: two thousand's, but the home improvement guys Home Depot and
• 11:28
  Speaker 1: Lows Home Depot particularly, and secondly low As are doing
• 11:31
  Speaker 1: quite nicely. And then t J is the whole off
• 11:33
  Speaker 1: price sector. And again t J's and Ross both report
• 11:36
  Speaker 1: this coming week. Uh, they're both going to have solid numbers,
• 11:41
  Speaker 1: and that sector is is gaining as much share as
• 11:45
  Speaker 1: the department store is losing in the apparel arena. Well,
• 11:49
  Speaker 1: just to give the perspective of Walmart shares, they're up
• 11:51
  Speaker 1: sevent so far this year. Craig, you do a lot
• 11:55
  Speaker 1: of traveling, You do a lot of looking and talking
• 11:58
  Speaker 1: to people around the world about retail. Can you tell
• 12:01
  Speaker 1: us about some geographical anecdotal information that maybe we'll highlight
• 12:06
  Speaker 1: trends or tell you what is going on? What have
• 12:08
  Speaker 1: you seen that has caught your attention? Well, you know,
• 12:11
  Speaker 1: and so you know, we have a team of eighteen
• 12:13
  Speaker 1: people you know here in the across the US, and
• 12:16
  Speaker 1: then you know, one researcher in London, and uh, we're
• 12:20
  Speaker 1: seeing an overall retail sector that seems to be um
• 12:25
  Speaker 1: coming back into health. It's maybe not back into full
• 12:29
  Speaker 1: bloom yet um, but we're seeing some of the best
• 12:32
  Speaker 1: uh traffic and sales trends that we had in sometimes
• 12:38
  Speaker 1: the In the US, the growth is relatively balanced. There's
• 12:42
  Speaker 1: maybe a little bit stronger growth in the on the
• 12:46
  Speaker 1: west coast, number one, and in the the whole southern
• 12:50
  Speaker 1: tier you know, Florida, you know, the the Caroline is
• 12:54
  Speaker 1: you know, over to Texas, etcetera. And that's where we're
• 12:57
  Speaker 1: a lot of the you know, the really most row
• 13:00
  Speaker 1: bus growth has been. But you know, the Northeast is
• 13:02
  Speaker 1: not like the Northeast or the Midwest or down It's
• 13:04
  Speaker 1: just that the the other sectors that I mentioned are
• 13:07
  Speaker 1: you really uh um, you know, really coming on quite strong.
• 13:11
  Speaker 1: What about merchandizing, the actual merchandise, the trends, the fashion.
• 13:15
  Speaker 1: Is there something in particular other than a new iPhone
• 13:17
  Speaker 1: that you've seen the people really want. Well, the single
• 13:21
  Speaker 1: hottest item right now it is in the electronics sector,
• 13:25
  Speaker 1: and that's the Nintendo switch, and so that continues to
• 13:28
  Speaker 1: be in short supply. This is whether you try to
• 13:30
  Speaker 1: get it best by your target or Walmart and they
• 13:33
  Speaker 1: simply have not been able to keep up with the demand.
• 13:35
  Speaker 1: That's that's proven to be a real hot number in
• 13:38
  Speaker 1: the fashion arena. You know, we're we're getting towards unit
• 13:40
  Speaker 1: of the summer now, but it's been a very good
• 13:42
  Speaker 1: sandal season. Um. There's something called the cold shoulder look
• 13:46
  Speaker 1: uh that a lot of the women, including younger women
• 13:50
  Speaker 1: are are are going for that. Tell us where did
• 13:52
  Speaker 1: that come from? And maybe define it for those that
• 13:54
  Speaker 1: I don't know what it means. Is it's a garment,
• 13:56
  Speaker 1: it's a top um, although it could be addressed that
• 14:00
  Speaker 1: where the shoulders are exposed. Um, but fabric continues, you know,
• 14:06
  Speaker 1: down your down your arm some distance. So there's it's
• 14:10
  Speaker 1: like there's a cutout around your shoulder. Um, and where
• 14:14
  Speaker 1: did that come from? It you've now moved beyond my paper, Okay,
• 14:21
  Speaker 1: but this is this is the hot trend. It's something
• 14:24
  Speaker 1: but right now it's been out there for about a
• 14:25
  Speaker 1: year now and some none of these trends come and goes,
• 14:28
  Speaker 1: and we're anticipately that one that one may not make
• 14:31
  Speaker 1: it very far into the fall and winter. I'll put
• 14:33
  Speaker 1: it that way. Clearly, Well, the winter is not gonna
• 14:35
  Speaker 1: make it happen. And what's the last thing that Craig
• 14:37
  Speaker 1: Johnson bought for himself. I never buy anything for myself
• 14:41
  Speaker 1: in Paris, socks or something that I buy. I buy
• 14:46
  Speaker 1: a few things here that I'm not a big shopper.
• 14:48
  Speaker 1: I'm in retail, but I hate shopping well, said Craig
• 14:51
  Speaker 1: Johnson is the president of Customer Growth Partners. He joins
• 14:55
  Speaker 1: us from New Canaan, Connecticut. President Donald Trump stepping up
• 15:11
  Speaker 1: his campaign of pressure on North Korea, warning the regime
• 15:14
  Speaker 1: not to follow through with a missile test near Guam
• 15:17
  Speaker 1: and promising massive response to any strike against the United
• 15:21
  Speaker 1: States or its allies. Here to tell us more, as
• 15:24
  Speaker 1: Bill ferries, he is our national security reporter for Bloomberg News,
• 15:28
  Speaker 1: and he joins us from Washington, d C. Bill, thank
• 15:31
  Speaker 1: you for spending time with us. Can I just pick
• 15:33
  Speaker 1: up on this idea of allies? Uh? Because I'm wondering.
• 15:37
  Speaker 1: You know, we hear obviously the response from a President Trump,
• 15:41
  Speaker 1: but what has been the position of the U. S
• 15:45
  Speaker 1: allies that are in the region, South Korea, Japan and
• 15:49
  Speaker 1: so on. Sure? Thanks for having me, pam Uh. The
• 15:52
  Speaker 1: initial reaction this week as all of this started to
• 15:54
  Speaker 1: heat up was really um, a little more muted. I
• 15:59
  Speaker 1: think there's still UH and and actually you're seeing that
• 16:01
  Speaker 1: from some of the President's aids as well. There's still
• 16:03
  Speaker 1: this idea that hey, it was it was just a
• 16:06
  Speaker 1: week ago that the U. N. Security Council, you know,
• 16:08
  Speaker 1: unanimously passed UH these much tougher sanctions on North Korea.
• 16:13
  Speaker 1: Diplomacy seems to be working. UM, let's give that a
• 16:16
  Speaker 1: little bit more time. UM. And obviously, you know, a
• 16:19
  Speaker 1: thing like sanctions that does take a while to uh
• 16:21
  Speaker 1: to take effects. So I think a lot of UH,
• 16:24
  Speaker 1: I think a lot of people have been caught off
• 16:25
  Speaker 1: guard by this public war of words. UH. Some analysts
• 16:29
  Speaker 1: we talked to will say that, uh, that Trump's comments
• 16:33
  Speaker 1: and and actually the North Korean comments, that these are
• 16:36
  Speaker 1: a lot of signaling to UH to China to really
• 16:39
  Speaker 1: get much more engaged. As we know, the President has
• 16:41
  Speaker 1: really publicly pressured China to do all it's all it
• 16:45
  Speaker 1: can to reign in the North Korean regime. Bill what
• 16:48
  Speaker 1: are the relationships like between South Korea, Japan, China, the
• 16:54
  Speaker 1: United States, Australia of course involved the Philippines there, What
• 16:59
  Speaker 1: kinds of relationships exist that could make this UH situation
• 17:04
  Speaker 1: a little less less fraud. Well, the United States is
• 17:08
  Speaker 1: really kind of the glue that UH that keeps UH
• 17:12
  Speaker 1: South Korea and Japan UM in in this alliance. UH.
• 17:16
  Speaker 1: The Australians have already come out and said that you know,
• 17:19
  Speaker 1: they will they will support the US and any kind
• 17:21
  Speaker 1: of a conflict there. The US, you know, every year
• 17:24
  Speaker 1: regularly hosts a lot of military drills with its allies
• 17:28
  Speaker 1: in Southeast Asia. I believe some of those are actually scheduled,
• 17:32
  Speaker 1: and they've been long scheduled, but they're they're scheduled for
• 17:34
  Speaker 1: next week. A lot of effort goes into kind of
• 17:37
  Speaker 1: getting the militaries to be able to communicate and coordinate
• 17:40
  Speaker 1: together so that they're ready if this kind of a
• 17:43
  Speaker 1: situation UM takes place. Now, I would just point out,
• 17:47
  Speaker 1: you know, I realized tensions are high and the war
• 17:49
  Speaker 1: of words has gotten pretty heated. UM. But you know,
• 17:53
  Speaker 1: one one sign to me that there's no sort of
• 17:56
  Speaker 1: imminent conflict is that Secretary Defense Secretary Maddis is been
• 18:00
  Speaker 1: on this tour of the West coast uh in Seattle.
• 18:03
  Speaker 1: He was with Amazon in uh In in a Silicon
• 18:06
  Speaker 1: valley today. I think he's going to Google's headquarters, and
• 18:09
  Speaker 1: he has not cut short this trip. He's continuing on
• 18:12
  Speaker 1: with a focus on technology issues. If he were to
• 18:15
  Speaker 1: suddenly jump on his plane and have, you know, flown
• 18:18
  Speaker 1: back to Washington, I'd be a lot more alarmed about
• 18:20
  Speaker 1: what's going on at this point. Not to minimize the
• 18:23
  Speaker 1: situation we're in, but that's, you know, one of these
• 18:25
  Speaker 1: things that people should keep their eyes on. Well indeed,
• 18:28
  Speaker 1: I mean he was speaking at a Pentagon facility in
• 18:31
  Speaker 1: Mountain View, California, and I believe he said that diplomatic
• 18:34
  Speaker 1: efforts are quote gaining traction. Uh, so there is a
• 18:38
  Speaker 1: lot of diplomatic activity that we do not know about.
• 18:40
  Speaker 1: Is that correct? Well, exactly, I think it was. It
• 18:43
  Speaker 1: was a little unclear. I think he was partly referring
• 18:46
  Speaker 1: to the UN sanctions just last weekend. We do know
• 18:49
  Speaker 1: that NICKI Haley, the U S Ambassador to the u N,
• 18:51
  Speaker 1: will be meeting with President Trump in New Jersey today. Uh.
• 18:55
  Speaker 1: There's a lot of speculation about what what they may
• 18:58
  Speaker 1: be discussing, but it would would be surprising at all
• 19:01
  Speaker 1: if there's a little bit more of an effort at
• 19:03
  Speaker 1: the at the U N to keep keep everyone on
• 19:07
  Speaker 1: board and uh, and to look at any other potential measures.
• 19:10
  Speaker 1: The president's tweet this morning that the United States you know,
• 19:14
  Speaker 1: is locked and loaded. Uh. You know, I would add
• 19:17
  Speaker 1: to that too, that he said, if Kim does anything,
• 19:20
  Speaker 1: we're ready. UM. To me, that was a sign that
• 19:23
  Speaker 1: the US is not looking at some sort of a
• 19:25
  Speaker 1: preemptive strike. Now. As someone that you know, you you've
• 19:28
  Speaker 1: lived and traveled all over the world, and you have
• 19:30
  Speaker 1: a perspective that is not just let's say, US centric,
• 19:34
  Speaker 1: What do countries or diplomats that you've been able to uh,
• 19:38
  Speaker 1: you know, ascertain what has been their reaction to this, uh,
• 19:42
  Speaker 1: this situation, because I mean, this is not the kind
• 19:44
  Speaker 1: of thing that just ends up being contained in a
• 19:46
  Speaker 1: small part of the world, perhaps, right. I think there's
• 19:49
  Speaker 1: just a lot of surprise at the president's strategy, if
• 19:52
  Speaker 1: we wanna, if we want to call it that I
• 19:54
  Speaker 1: guess to be so public. I mean, every US president,
• 19:58
  Speaker 1: every administration going back for twenty years, has dealt with
• 20:01
  Speaker 1: some very over the top rhetoric and taunting from North Korea,
• 20:06
  Speaker 1: and they've tended to ignore that in the past or
• 20:10
  Speaker 1: you know, let it reflect a lot more on uh,
• 20:13
  Speaker 1: North Korea than on anyone else. I think everyone's just
• 20:16
  Speaker 1: surprised that for the first time we're seeing US president
• 20:20
  Speaker 1: coming out so aggressively, uh, in a style that really
• 20:23
  Speaker 1: to some looks like the communication style of the North
• 20:27
  Speaker 1: Korean regime. And just to give us the update, I mean,
• 20:31
  Speaker 1: what kind of resources military resources currently exist or maybe
• 20:36
  Speaker 1: even threatened by North Korea, because I believe the President
• 20:40
  Speaker 1: even tweeted something from the U. S. Pacific Command today
• 20:43
  Speaker 1: about B one bombers. Sure, you know, as far as
• 20:47
  Speaker 1: we can tell, there hasn't been any significant deployment of
• 20:51
  Speaker 1: new forces to the region. So the President tweeted about
• 20:54
  Speaker 1: the B one bombers and Guam, Uh, those have long
• 20:57
  Speaker 1: been stationed there. They replaced a squadron of B fifty
• 21:01
  Speaker 1: two bombers that were that kind of got phased out. Uh.
• 21:05
  Speaker 1: You know, the military has as forces deployed all through
• 21:08
  Speaker 1: the Pacific and through Southeast Asia. There's I think, uh
• 21:12
  Speaker 1: about thirty thousand US troops in South Korea. We have
• 21:17
  Speaker 1: a lot of naval forces that go through that region.
• 21:21
  Speaker 1: You might remember, I think earlier this year, it might
• 21:23
  Speaker 1: have been in March or April, when tensions heated with
• 21:26
  Speaker 1: North Korea. The President deployed very publicly said he was
• 21:29
  Speaker 1: deploying a new a second aircraft carrier battle group to
• 21:32
  Speaker 1: the region. And then we found out a nuclear submarine
• 21:35
  Speaker 1: was also in the region. We found out because the
• 21:37
  Speaker 1: Pentagon basically put out a statement saying nuclear sub just stocked.
• 21:41
  Speaker 1: We gotta leave it there. But thank you very much
• 21:43
  Speaker 1: for your thoughts and your insight. Bill Ferries are a
• 21:46
  Speaker 1: national security reporter for Bloomberg News. There is nothing small
• 22:03
  Speaker 1: when it comes to the price of collectible cars. And
• 22:07
  Speaker 1: Frank Meekam is the director of consignment of MICAM Auctions
• 22:11
  Speaker 1: and they are scheduled to have the Monterey Mikam Monterey
• 22:16
  Speaker 1: and they will be presenting a daytime auction that will
• 22:18
  Speaker 1: take place between August the sixteenth and the nineteenth at
• 22:21
  Speaker 1: the Highatt Regency Monterey Hotel in Spa. And he joins
• 22:25
  Speaker 1: us now to tell us more. Frank, always a pleasure,
• 22:27
  Speaker 1: Thanks for being with me, Thanks Tim, thanks for having
• 22:30
  Speaker 1: me on. Where do you want to start? Let's start
• 22:31
  Speaker 1: with cars, Okay, I mean, I'm I've been looking at
• 22:34
  Speaker 1: this nine Ferrari long knows and that's just one of
• 22:38
  Speaker 1: the ferraris that you've got. How many of you have
• 22:40
  Speaker 1: a going on the auction block. We're going to have
• 22:43
  Speaker 1: over forty Ferraris hit the block in Monterey. Uh, that's
• 22:48
  Speaker 1: a neat car, neat story behind that to long knows
• 22:53
  Speaker 1: it's it's a car that's been in the same ownership
• 22:55
  Speaker 1: for over forty five years and in the collectible mark it.
• 23:00
  Speaker 1: You know, you don't see many cars that are that
• 23:03
  Speaker 1: are coming off that long of ownership. What are the
• 23:07
  Speaker 1: estimates for this? Uh, car like this should be somewhere
• 23:14
  Speaker 1: right up at two million to We're estimated at one
• 23:16
  Speaker 1: point nine to two point two. Now you mentioned the
• 23:19
  Speaker 1: pedigree of the automobile that it was in a single
• 23:22
  Speaker 1: owner's hands for forty five years. Maybe just tell people
• 23:26
  Speaker 1: the pedigree is relevant, the mileage is relevant. What they
• 23:30
  Speaker 1: call matching numbers. How does this all figure into the
• 23:33
  Speaker 1: actual value of this asset? There's there's so many things
• 23:37
  Speaker 1: to start looking at. Is when you get to the
• 23:40
  Speaker 1: pecking order of where car fits into the collectibility standpoint.
• 23:46
  Speaker 1: And the one thing I tell people the you can't
• 23:51
  Speaker 1: UH ownership history and being in long long term, well
• 23:57
  Speaker 1: known collections is one of the best of things to
• 24:00
  Speaker 1: have for for any car um for one person to
• 24:04
  Speaker 1: have it it. It really solidifies that there's uh, there's
• 24:09
  Speaker 1: no stories behind the car and and it is what
• 24:12
  Speaker 1: it is. Well, one story behind a group of cars
• 24:15
  Speaker 1: that I think are coming up to auction. There is
• 24:17
  Speaker 1: the rock star, late rock star Jay Giles colling about
• 24:20
  Speaker 1: that collection. Uh. You know, everybody knows uh Jay Giles
• 24:26
  Speaker 1: as the rock star, but in our hobby, he was
• 24:32
  Speaker 1: known as one of the top Ferrari mechanics of his time,
• 24:37
  Speaker 1: UM and sportcar mechanics. So that was his other real passion.
• 24:42
  Speaker 1: And UH, to be able to offer his his collection
• 24:46
  Speaker 1: after his passing, uh, it's really special to our company
• 24:50
  Speaker 1: and we're really excited to be able to do it
• 24:51
  Speaker 1: this year. One of the automobiles a sixty one Ferrari
• 24:54
  Speaker 1: to T unique car another orneat Ferrari. Uh. You know
• 25:02
  Speaker 1: when when you're talking uh Ferrari's, it's it's really a
• 25:07
  Speaker 1: entry level collectible in that uh to sev range. You
• 25:14
  Speaker 1: know a lot of those sixties Ferraris. You start getting
• 25:17
  Speaker 1: into seven figure cars and what do you find that?
• 25:20
  Speaker 1: Because I know he's also got you got to do Katti,
• 25:23
  Speaker 1: So he's also got motorcycles and I believe what racing suits.
• 25:26
  Speaker 1: I mean, so the whole memorabilia and collectibles is not
• 25:30
  Speaker 1: just in the automobile. It's it's everything. It's it's everything
• 25:34
  Speaker 1: that he put together over the years. He was into
• 25:36
  Speaker 1: so many different things, UH, sports cars, sports bikes, racing. UH,
• 25:43
  Speaker 1: just just a lifetime of collecting. So what have you
• 25:46
  Speaker 1: seen in the market, Because we ran an article in
• 25:48
  Speaker 1: Bloomberg Business Week saying that in certain areas of the
• 25:51
  Speaker 1: collectible car market there's a little bit of softness. There's
• 25:55
  Speaker 1: there's been a little bit of softness in UH certain areas,
• 26:00
  Speaker 1: but we've also seen a lot of growth in certain areas. UH.
• 26:04
  Speaker 1: The American American built market right now is on fire.
• 26:09
  Speaker 1: We just had our sale in Harrisburg last week and
• 26:14
  Speaker 1: we sold to UH to Mopar wing cars UM for
• 26:21
  Speaker 1: for very high prices that cars like that haven't seen
• 26:24
  Speaker 1: in eighteen months. All right, Well, good luck with the
• 26:27
  Speaker 1: with the auction, and good luck with the Ferra. Much appreciated.
• 26:31
  Speaker 1: Frank macom is the director of consignment for Macome Auctions
• 26:34
  Speaker 1: and that auction takes place in Monterey, California, August sixte through.
• 26:42
  Speaker 1: Thanks for listening to the Bloomberg P and L podcast.
• 26:45
  Speaker 1: You can subscribe and listen to interviews at Apple Podcasts, SoundCloud,
• 26:49
  Speaker 1: or whatever podcast platform you prefer. I'm pim Fox. I'm
• 26:53
  Speaker 1: on Twitter at pim Fox. I'm on Twitter at Lisa
• 26:56
  Speaker 1: Abramowits one before the podcast. You can always catch up
• 27:00
  Speaker 1: worldwide on Bloomberg radioh