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Over 200 Dead After London-Bound Boeing Jet Crashes in India · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. You're listening to the
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  Speaker 2: So the Boeing seven eighty seven Dreamliner that was operated
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  Speaker 2: by Air India crash shortly after taking off in India,
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  Speaker 2: killing all. But it's killing all two hundred and forty
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  Speaker 2: two people on board joining us now is said Phillip Bloomberg,
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  Speaker 2: Deputy team leader for Global Aviation. I said he was
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  Speaker 2: in London, but he's not. He's in Paris. I should
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  Speaker 2: have known from the Eiffel Tower that's behind him. For
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  Speaker 2: those of you on radio, this is all right before
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  Speaker 2: the Paris air show, right, what are you hearing on
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  Speaker 2: the ground.
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  Speaker 3: Thanks Alix. So at the moment, we don't really have
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  Speaker 3: details on what rety went wrong with the aircraft and
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  Speaker 3: what caused the crash. I mean it reached an altitude
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  Speaker 3: of six hundred and twenty five feet and then it
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  Speaker 3: sort of just plummeted the ground in a massive fireball.
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  Speaker 3: And we know that over two hundred over two hundred
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  Speaker 3: people have been pulled out dead. There has been some
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  Speaker 3: mention of survivors, we don't really know how many. The
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  Speaker 3: police said that survivors have been taken to hospital. We're
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  Speaker 3: not quite sure whether those survivors are from the aircraft
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  Speaker 3: or whether they're from the residential building. So the plane
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  Speaker 3: crashed into a residential building. It was a medical college
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  Speaker 3: hostel and that's where students and doctors were eating lunch
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  Speaker 3: when the plane crashed. So it was a massive tragedy
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  Speaker 3: the bot for air India, for India, and obviously it's
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  Speaker 3: raised lots of questions on Boeing and we're still waiting
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  Speaker 3: to see what those answers actually are to those questions
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  Speaker 3: as to what caused it and where do we go
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  Speaker 3: from here.
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  Speaker 4: So typically who leads these investigation series at the host
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  Speaker 4: country is that the airline? Is it? How does that work?
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  Speaker 3: Yes, so the investigation will be led by investigators from India.
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  Speaker 3: So typically when a plane crashes, the country where the
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  Speaker 3: plane crash leads the investigation into what went wrong. The
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  Speaker 3: other countries that sort of we have FA input, we
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  Speaker 3: have NTSP input, we have input from the manufacturer. In
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  Speaker 3: this case Boeing in also from GE because they made
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  Speaker 3: the engine, So there will be input from others. And
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  Speaker 3: we've also seen the UK Air Investigation Investigation Accident Investigation
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  Speaker 3: Board talking that they would be sending some investigators to
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  Speaker 3: India tomorrow, so there will be it will be a
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  Speaker 3: multinational effort in terms of trying to find out what
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  Speaker 3: went wrong and then they will sort of determine where
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  Speaker 3: the problem came up from and what really caused this crash.
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  Speaker 2: We are seeing Boeing shares down obviously looking at GE
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  Speaker 2: because they were using GE engines. Are those market reactions investors'
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  Speaker 2: reactions legitimate considering how much unknown there are, how hard
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  Speaker 2: it is to fly planes and the variables like birds.
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  Speaker 3: It's difficult to actually put a sort of input this
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  Speaker 3: onto Boeing or GE because I mean, this aircraft has
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  Speaker 3: been in service for over eleven years, almost twelve years,
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  Speaker 3: so it's not a brand new aircraft that's just come
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  Speaker 3: off fresh off the line from Boeing. So I mean
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  Speaker 3: it is sort of far fetched to sort of pin
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  Speaker 3: the blame on Boeing without sort of ascertaining the causes
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  Speaker 3: of what happened and what went wrong. I mean, obviously
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  Speaker 3: the investigation will determine what went wrong and who is
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  Speaker 3: it fauld and if there was pilot error, if there
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  Speaker 3: was any technical issue, if there was something wrong with
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  Speaker 3: the plane or with the engines. But it's all still
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  Speaker 3: too early to determine the cause of it, and so
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  Speaker 3: it does seem to be an initial reaction, and we
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  Speaker 3: will get more clarity on what really went wrong in
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  Speaker 3: the days and months ahead as we sort of as
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  Speaker 3: investigators sort of port through the flight data recorders, the
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  Speaker 3: cockpit voice recorders and sort of pieced together, minute by minute,
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  Speaker 3: second by second, what really went wrong.
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  Speaker 4: All right, so thank you so much for joining us.
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  Speaker 4: Really appreciate your reporting, said our Philip, deputy team leader
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  Speaker 4: for Global Aviation Bloomberg News. He is based in London,
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  Speaker 4: but who's reporting from our Paris bureau today.
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  Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
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  Speaker 4: All right, let's talk inflation. Yesterday, Remember we had the
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  Speaker 4: CPI data came out and it came in a little
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  Speaker 4: less than expected, so we called that benign inflation, I
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  Speaker 4: think was the term we used. As John's just mentioned,
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  Speaker 4: we got the PPI out today, John characterized it as muted.
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  Speaker 4: I'll go with that PPI final demand month the month
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  Speaker 4: zero point one percent, consensus was zero point two percent.
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  Speaker 4: And then if you annualize all this stuff and say
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  Speaker 4: PPI X food, energy and trade year over year came
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  Speaker 4: in a two point seven percent. Consensus was three percent.
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  Speaker 4: So that's a pretty big beat, I would say. Jeffrey
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  Speaker 4: Cleveland joins economists at Peyton and Regal out there in
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  Speaker 4: l A. Jeffrey, what did you make of yesterday's CPI,
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  Speaker 4: today's PPI what you call on inflation these days?
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  Speaker 5: Well, Paul, not only was it benign for May, that's
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  Speaker 5: four months in a row, So four months in a row,
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  Speaker 5: after you know, a January hot start to the year,
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  Speaker 5: CPI has been soft. I know the inflationistas listening are
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  Speaker 5: going to say that, you know, just wait, just wait
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  Speaker 5: another month and the tariff toll will will hit, and
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  Speaker 5: that is possible. But I would point out that in
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  Speaker 5: the day that we saw yesterday, it wasn't just that
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  Speaker 5: goods prices were soft. Also services prices were soft, So
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  Speaker 5: you know, housing free which are we all clear, but
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  Speaker 5: also non housing services. I wouldn't say the all clear, Alex,
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  Speaker 5: but I mean it's uh, we're getting there. We're getting
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  Speaker 5: close to say it all clear. I think another another
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  Speaker 5: couple of months, I'll declare the the all clear. I
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  Speaker 5: think also with this morning's PPI, you throw that in
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  Speaker 5: the mix. You can imagine a soft reading for core
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  Speaker 5: PCEE when it comes out at the end of this month,
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  Speaker 5: which is what the FED is more focused on, and
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  Speaker 5: I think very good news for the central Bank and
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  Speaker 5: for the bond market. So soft inflation.
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  Speaker 4: Readings, So, Jeff, is it we're not necessarily seeing any
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  Speaker 4: inflation in the numbers yet? Maybe we will in the future.
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  Speaker 4: Is that a reflection of companies just kind of eating
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  Speaker 4: the cost increases that they are experiencing, maybe taking in
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  Speaker 4: the margin as opposed to passing them along to consumers.
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  Speaker 5: That's a possibility, Paul, It's possible. We just haven't seen
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  Speaker 5: the pass through yet. People are shifting their behaviors, people
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  Speaker 5: are making up for it in other ways and not
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  Speaker 5: passing it through into prices. I think all of those
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  Speaker 5: are in the mix. I think one thing we've been
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  Speaker 5: telling clients is that. Keep in mind, imported goods in
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  Speaker 5: terms of the PCE index are six seven eight percent
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  Speaker 5: of the index, so you could see potential price increases
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  Speaker 5: on those goods, but you have to keep in mind
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  Speaker 5: most of what you spend your money on, PAUL are
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  Speaker 5: things like services, and those we still see scope for
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  Speaker 5: services to continue to cool off, and certainly we saw
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  Speaker 5: that in May, so that could outweigh some of the
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  Speaker 5: tariff price increase. That's a good news. So I think
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  Speaker 5: by the end of the year, so if you can
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  Speaker 5: look out six months or so, I think inflation will
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  Speaker 5: continue to moderate. Okay, So if.
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  Speaker 2: We are in this disinflationary environment right now, well, actually,
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  Speaker 2: would you categorize us as disinflation?
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  Speaker 4: Oh?
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  Speaker 5: Yeah, I mean we peaked in twenty twenty two at
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  Speaker 5: a very high level on core inflation. It's been coming down.
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  Speaker 5: It's been coming down slower than we would have hoped,
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  Speaker 5: but it is disinflating. So I think we're definitely in
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  Speaker 5: a disinflationary environment right now.
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  Speaker 2: Yes, So if it's disinflationary, is that enough for the
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  Speaker 2: FED to cut in July September predemptively?
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  Speaker 5: I think you have to step back here. You put
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  Speaker 5: yourselves in the shoes of the FED. You're at four
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  Speaker 5: fifty on the funds rate. I would categorize that alex
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  Speaker 5: as restrictive. So they have a restrictive policy setting. But
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  Speaker 5: we know, we just talked about it. Inflation is cooling.
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  Speaker 5: Disinflation and the other thing that you brought up earlier
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  Speaker 5: on a segment which was wonderful, We are seeing a
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  Speaker 5: slow down in the lake. So with that backdrop, I
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  Speaker 5: think the next move from the Fed is a cut.
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  Speaker 5: Question is what are they comfortable doing that. I don't
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  Speaker 5: think it's likely next week, but I think the market
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  Speaker 5: should start pricing in July, should start entertaining July. But
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  Speaker 5: we think but by September guys will have some evidence
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  Speaker 5: enough where they could possibly cut.
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  Speaker 4: If that's the scenario, and inflation, you know, is not
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  Speaker 4: necessarily a concern here or a big concern, what does
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  Speaker 4: that do to your GDP? Look for the remainder of
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  Speaker 4: this year, we.
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  Speaker 5: Cut our GDP Paul after the tariff turmoil really broke
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  Speaker 5: out starting February second. That Sunday afternoon, my team got
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  Speaker 5: together and we cut our GDP. So we went down
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  Speaker 5: to one percent for twenty twenty five Q four to
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  Speaker 5: Q four we brought that actually up a little bit
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  Speaker 5: in recent weeks, so we're around one point five percent
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  Speaker 5: for the year. That's not a recession, Paul. I would
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  Speaker 5: characterize that as subpar economic growth, so subtrend, but that
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  Speaker 5: doesn't really change here with that with this disinflation story,
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  Speaker 5: I think that that will be the case. We'll have
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  Speaker 5: subpart growth, We'll avoid a recession, but we'll have disinflation.
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  Speaker 5: That's good for bonds. I think you're especially the long
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  Speaker 5: end of the treasury market is really been pushed up
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  Speaker 5: by fears of the fiscal fears of inflation from tariffs,
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  Speaker 5: and if all of that sort of fades, man bonds
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  Speaker 5: look good. We have a good set up here for
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  Speaker 5: the bond market over the second half of the year.
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  Speaker 5: In my view, really deficits included in that. Yeah, I
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  Speaker 5: mean the deficits, Alex. This is the most widely known
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  Speaker 5: story on Earth, you know, talking to global clients for years,
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  Speaker 5: they've been looking at the US budget deficit. It's huge.
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  Speaker 5: I'm not denying that six or seven percent of GDP.
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  Speaker 5: I don't think that's going to change next year with
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  Speaker 5: the big beautiful budget bill, but I think that's priced in.
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  Speaker 5: We see that in I think the slope of the
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  Speaker 5: curve in turn premium that's been built into tens and
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  Speaker 5: thirty year treasuries. So that's no, that's a known known.
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  Speaker 5: I think as we move on beyond that, you know,
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  Speaker 5: people are going to realize the real story here is, Okay,
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  Speaker 5: what happens with growth and what happens with inflation that
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  Speaker 5: will drive markets.
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  Speaker 4: Hey, Jeffrey, I know you're in LA. You're an LA guy.
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  Speaker 4: Give us a sense of what's happening out there.
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  Speaker 5: Well, you know, I'm twenty five miles from downtown LA today,
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  Speaker 5: as you can see here in the home office. Part
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  Speaker 5: of that is because paid and regal offices are, you know,
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  Speaker 5: in the heart of it, downtown Los Angeles, which enjoyed
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  Speaker 5: such a great resurgence pre COVID. It was really a renaissance,
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  Speaker 5: if you will. Yeah, people living and working down there.
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  Speaker 5: So the events that we've seen in the last week
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  Speaker 5: or so really unfortunate, causing a lot of uncertainty here
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  Speaker 5: on the West Coast. I think as far as it
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  Speaker 5: pertains to the economic data, I mean, the big thing
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  Speaker 5: we're watching here, Paul, is the labor force. You saw
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  Speaker 5: that actually in the May jobs report, labor force participation
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  Speaker 5: went down. We like to look at the labor force flows,
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  Speaker 5: so every month you can look at the number of
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  Speaker 5: people that are going from being employed, for example, to
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  Speaker 5: out of the labor force, and in May that number
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  Speaker 5: was the biggest increase that we've seen outside of COVID
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  Speaker 5: in the last twenty twenty five years. It could be retirements,
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  Speaker 5: it could be people leaving the labor force for reasons other,
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  Speaker 5: you know, than work related, maybe family related reasons. But
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  Speaker 5: it could also be related to the immigration issues. So
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  Speaker 5: I think we need to keep we need to keep
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  Speaker 5: an eye on that because the labor force participation is
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  Speaker 5: the key part of economic growth.
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  Speaker 4: Jeffrey, thank you so much for joining us. Really appreciate
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  Speaker 4: getting your time. Jeffrey Cleveland, Chief economists Payden and Regal
• 11:30
  Speaker 4: joining us via zoom from Los Angeles, where he is
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  Speaker 4: a based.
• 11:36
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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• 11:43
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  Speaker 4: We are live here in the Bloomberg Interactive Broker Studio
• 11:52
  Speaker 4: in New York. We are streaming live on YouTube as well.
• 11:56
  Speaker 4: All right, I'm looking at some Bloomberg reporting here, and
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  Speaker 4: Donald Trump says he's intended to send letters to trading
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  Speaker 4: partners in the next one to two weeks setting unilateral
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  Speaker 4: tariff rates ahead of a July ninth deadline to reimpose
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  Speaker 4: higher duties on dozens of economies. So sending out letters.
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  Speaker 4: I'm not sure what that means, but I guess do
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  Speaker 4: I watch mine? Dear sir, maam exactly to whom it
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  Speaker 4: may concern, we're raising your things. Nathan Dean, he knows
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  Speaker 4: the stuff because we pay him to know this stuff.
• 12:24
  Speaker 4: Nathan Dean, Bloomberg Intelligence senior policy analysts. Nathan, just give
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  Speaker 4: us your latest kind of over you of where we
• 12:31
  Speaker 4: are on these tariffs here in little I guess context.
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  Speaker 6: Yeah, what I would say is, there's really two phrases
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  Speaker 6: we're saying at the moment. The first is uncertainty. And look,
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  Speaker 6: if you're in the markets, this isn't a new word,
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  Speaker 6: you know. The uncertainty is the year for is the
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  Speaker 6: word for twenty twenty five. But I would also use
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  Speaker 6: the phrase status quo because even though President Trump said
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  Speaker 6: yesterday that he's going to send those letters out, and
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  Speaker 6: for what it's worth, that's a much easier way than
• 12:56
  Speaker 6: going to the Rose Garden and holding up a little
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  Speaker 6: card that.
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  Speaker 4: Says caclates, you know.
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  Speaker 6: I think what we're going to see is we saw
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  Speaker 6: some reporting from Bloomberg News just last night that President
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  Speaker 6: Trump was also talking about extending this. So I think
• 13:09
  Speaker 6: the current idea here is is that you're going to
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  Speaker 6: have a situation where you have President Trump going out
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  Speaker 6: there and making threats or making statements that raises headline risk.
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  Speaker 6: But subsequently you're also going to have this idea that
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  Speaker 6: we're just going to try and keep the status quo
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  Speaker 6: because we don't want to rock the markets. And so
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  Speaker 6: I think you are going to see some examples. I
• 13:29
  Speaker 6: think President Trump may pick on a couple of countries
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  Speaker 6: or the European Union in particular, to try and raise
• 13:35
  Speaker 6: a renewed threat or a headline risk in order to
• 13:37
  Speaker 6: just spur negotiations. But I think for the next three
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  Speaker 6: to six months, the markets are going to face this
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  Speaker 6: on this status quo of a ten percent baseline plus
• 13:46
  Speaker 6: an extension or plus an exemption, or plus a certain
• 13:50
  Speaker 6: additional threshold like we saw with the China agreement and
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  Speaker 6: that should probably stick through the third quarter.
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  Speaker 2: Are these agreements, Emily, we're just looking at China in
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  Speaker 2: the UK, are they actually different or are they just
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  Speaker 2: kind of circling back to where we were before all
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  Speaker 2: of this trauma unfolded here.
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  Speaker 6: Well, so the China one is mostly status quote from
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  Speaker 6: where we were before, But the UK agreement was different
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  Speaker 6: because the United Kingdom didn't have a trade deficit with
• 14:15
  Speaker 6: the United States like other certain countries do. So the
• 14:17
  Speaker 6: base case scenario that you should be looking at is
• 14:20
  Speaker 6: a ten percent minimum tariff on every country.
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  Speaker 5: I mean, look, you know.
• 14:24
  Speaker 6: We heard Treasury Secretary Scott Besson say if they don't
• 14:26
  Speaker 6: have any trade, you know, tariff's on us, we're not
• 14:29
  Speaker 6: going to have tariffs on them. But this idea of
• 14:31
  Speaker 6: a ten percent baseline is something that's usually sticking around at.
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  Speaker 5: The White House.
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  Speaker 6: But then you're also going to see exemptions for example, automobiles, technology.
• 14:39
  Speaker 6: Anybody that can get into the White House is going
• 14:41
  Speaker 6: to be pushing for President Trump to offer exemptions. And
• 14:45
  Speaker 6: we just go back to this idea that if you
• 14:46
  Speaker 6: are going to see sectors that impact consumer prices, so
• 14:51
  Speaker 6: think of things like Apple, MacBooks or Amazon or you know, Walmart,
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  Speaker 6: Like Treasury Secretary Scott Bessont was just getting pushed about
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  Speaker 6: in the Senate Finance Committee, and you are going to
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  Speaker 6: see exemptions, but then there are going to be additional
• 15:03
  Speaker 6: you know, tariffs for other countries. But we should say
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  Speaker 6: that a lot of this depends on negotiations. Bloomberg News
• 15:08
  Speaker 6: reported just twenty minutes ago that Prime Minister Mark Karney
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  Speaker 6: said the US Canada's going well. They reported last night
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  Speaker 6: that negotiations with India weren't going so well, so that
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  Speaker 6: idea for examples to be made before July ninth could
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  Speaker 6: come about.
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  Speaker 4: Okay, I guess we'll just we just keep in touch
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  Speaker 4: with some skepticism. But it feels like we're going to
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  Speaker 4: get to a spot kind of where we did last time,
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  Speaker 4: which is, at the end of the day, it's a
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  Speaker 4: lot about nothing, you know, and I think the markets,
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  Speaker 4: certainly the equity markets might be pricing that in with
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  Speaker 4: the rebound here all right, Nathan, for the adults in
• 15:43
  Speaker 4: the room here, what's the next thing from DC we
• 15:45
  Speaker 4: should be focusing on here?
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  Speaker 6: So the number one question we've been getting from our
• 15:49
  Speaker 6: clients just this morning is when is the Senate Finance
• 15:52
  Speaker 6: Committee going to release its legislation or its text President
• 15:56
  Speaker 6: Trump's One Big, Beautiful Bill. So if you are an
• 15:58
  Speaker 6: equity investor in your you know, exposed to the solar
• 16:01
  Speaker 6: industry or the winds industry, this is very important to
• 16:03
  Speaker 6: you because Senator Crape out just last night was saying
• 16:07
  Speaker 6: that things like certain text credits should be phased out earlier,
• 16:11
  Speaker 6: and we think he was hitting at solar and wind
• 16:14
  Speaker 6: and others would be extended, which was nuclear and geothermal.
• 16:17
  Speaker 6: Now obviously we're still waiting for that text. Now. I
• 16:19
  Speaker 6: think that text is going to come after market clothes
• 16:22
  Speaker 6: on Friday. I think it's going to come Saturday or Sunday.
• 16:24
  Speaker 6: But keep your eyes out because there is this potential
• 16:28
  Speaker 6: for some what I you know, I used to say
• 16:29
  Speaker 6: marijuana stocks have hot sauce. Now I say the solar
• 16:32
  Speaker 6: stocks they have hot sauce. So these things move around,
• 16:35
  Speaker 6: So definitely keep your eyes out for that. That's probably
• 16:37
  Speaker 6: the next major catalyst you're going to see coming from Washington, is.
• 16:39
  Speaker 2: That like a hot sauce reference is a good thing
• 16:42
  Speaker 2: or a bad thing or just spicy, just stuff spicy.
• 16:45
  Speaker 6: I stole it from our friends over in the ETF space.
• 16:48
  Speaker 2: Okay, no, fair enough, because a solar sector is just
• 16:52
  Speaker 2: really in a mess based on when the tax credits
• 16:56
  Speaker 2: land when it comes out of the Senate.
• 16:58
  Speaker 5: Do you think the timeline still works?
• 17:00
  Speaker 1: I do.
• 17:01
  Speaker 6: I think, you know, obviously the Senators want to have
• 17:03
  Speaker 6: all this legislation out in the public arena before Juneteenth.
• 17:06
  Speaker 6: Next week they're going away for a couple of days,
• 17:08
  Speaker 6: and I think the Senate can eventually get there. They
• 17:11
  Speaker 6: seem to be a little bit more i'd say on board.
• 17:13
  Speaker 6: There's still major questions about the deficit, getting the ram
• 17:16
  Speaker 6: Pauls on the dead ceiling, and you know the other
• 17:19
  Speaker 6: senators Ron Johnson's if you will, on board. But I
• 17:22
  Speaker 6: think they can get there by the fourth of July,
• 17:24
  Speaker 6: or maybe even after the fourth of July. We still
• 17:27
  Speaker 6: are thinking at eighty percent chance this gets done before
• 17:29
  Speaker 6: the August recess, all right.
• 17:31
  Speaker 4: I mean those recesses are actually a good incentive to
• 17:33
  Speaker 4: get stuff like deadlines. Yes, so it's good, all right.
• 17:37
  Speaker 4: Nathan appreciate it as always, Nathan Dean, he is our
• 17:40
  Speaker 4: go to person in DC to explain all the craziness
• 17:43
  Speaker 4: down there in terms of the policies. Nathan Dean senior
• 17:46
  Speaker 4: policy analysts Bloomberg Intelligence. He's down on our DC bureau.
• 17:52
  Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
• 17:56
  Speaker 1: weekdays at ten am Eastern on Applecarclay and Android Otto
• 17:59
  Speaker 1: with the Work Business app. Listen on demand wherever you
• 18:02
  Speaker 1: get your podcasts, or watch us live on YouTube.
• 18:06
  Speaker 2: Happy Thursday, everybody. Alex still here alongside Paul Sweeney. This
• 18:09
  Speaker 2: is Bloomberg Intelligence Radio. We are broadcasting to live from
• 18:12
  Speaker 2: Interactive Broker Studio right here in Midtown Manhattan. So June
• 18:16
  Speaker 2: is Pride Month. So over the next couple weeks we're
• 18:18
  Speaker 2: going to highlight segments on topics related to equality. And
• 18:21
  Speaker 2: today we're speaking with Laura Maudy, a CEO and co
• 18:24
  Speaker 2: founder of Bobby Now. Bobby is the only mom founded
• 18:27
  Speaker 2: and lead pediatric nutrition company in the US and the
• 18:30
  Speaker 2: third largest fully integrated infant formula manufacturer in the country. Laura,
• 18:34
  Speaker 2: we remember speaking to you over the pandemic when there
• 18:36
  Speaker 2: were shortages of things like infant formula. What is first
• 18:41
  Speaker 2: and foremost on your radar right now, like the biggest
• 18:44
  Speaker 2: struggle that you have right now?
• 18:47
  Speaker 7: Lovely to chat with you guys again.
• 18:49
  Speaker 8: Hello, I am the biggest struggle I think right now
• 18:52
  Speaker 8: is you know, you'll remember the infant formula shortage in
• 18:55
  Speaker 8: twenty twenty two. There has been a very concentrated effort
• 19:00
  Speaker 8: to make sure that we diversify and break up the
• 19:03
  Speaker 8: concentrated market, and the only way to do that is
• 19:07
  Speaker 8: to invest in more domestic manufacturing. I think the last
• 19:11
  Speaker 8: time I spoke to you guys, I mentioned that we
• 19:13
  Speaker 8: have co created a bill that really allows and incentivizes
• 19:18
  Speaker 8: more domestic manufacturing for infant formula, and right now that
• 19:22
  Speaker 8: is the number one focus.
• 19:24
  Speaker 4: The Infant Formula Made in America Act of twenty twenty five.
• 19:28
  Speaker 4: Talk to us about that.
• 19:30
  Speaker 8: So again, like I said, this is on the back
• 19:33
  Speaker 8: of the shortage, and what we recognized was nothing will
• 19:36
  Speaker 8: change if nothing changes when it comes to the footprint
• 19:39
  Speaker 8: of infant formula manufacturing. So this bill incentivizes new players
• 19:45
  Speaker 8: to up level and to break ground and build infant
• 19:50
  Speaker 8: formula manufacturing here in the US.
• 19:53
  Speaker 2: Is it How expensive is it?
• 19:55
  Speaker 7: It's very expensive.
• 19:56
  Speaker 8: It's very expensive, but maybe nothing like other other investments
• 20:00
  Speaker 8: that are being made right now in manufacturing. It takes
• 20:04
  Speaker 8: around three years and it could be anywhere from you know,
• 20:07
  Speaker 8: sixty to one hundred and fifty million dollars to get
• 20:10
  Speaker 8: a basic footprint in place, and sometimes even more, and
• 20:14
  Speaker 8: given how long it takes to be able to get
• 20:16
  Speaker 8: more manufacturing up and running, this is why we can't
• 20:20
  Speaker 8: wait for another crisis.
• 20:21
  Speaker 7: The investments have to happen now. And what this.
• 20:24
  Speaker 8: Bill is is and it's finally gotten bipartisan support. I
• 20:29
  Speaker 8: don't actually believe there's anything more bipartisan than investing in
• 20:33
  Speaker 8: how our next generation is fed and building the resiliency
• 20:36
  Speaker 8: of this market. I am just hoping that this bill
• 20:40
  Speaker 8: gets introduced as something that gets passed sooner rather than later.
• 20:45
  Speaker 4: Just remind us, Lara, where do Americas Where do we
• 20:49
  Speaker 4: source most of our infant formula these days?
• 20:52
  Speaker 8: Yeah, look, most of it, most of it is sourced domestically.
• 20:58
  Speaker 7: But what we did do is that we allowed.
• 21:01
  Speaker 8: Some international formulas, some foreign formulas come into the country.
• 21:05
  Speaker 7: On the back of the shortage.
• 21:07
  Speaker 8: We essentially have imported our way out of a crisis,
• 21:11
  Speaker 8: and that is still happening. So over the last few years,
• 21:14
  Speaker 8: we've gone from less than one percent of infant formula
• 21:17
  Speaker 8: being made and sourced in the US to now over
• 21:20
  Speaker 8: ten percent of American babies are relying on formula coming
• 21:24
  Speaker 8: in from overseas, And the big push that I'm trying
• 21:27
  Speaker 8: to have is high quality formula should be able to
• 21:31
  Speaker 8: be sourced and made here at America for American babies.
• 21:35
  Speaker 2: Yes, but because it's expensive to say, build the plans here, etc.
• 21:39
  Speaker 2: Can we get that at a price point where like
• 21:41
  Speaker 2: you can stand business and make money, but also it
• 21:44
  Speaker 2: can be available to all different types of families.
• 21:48
  Speaker 8: The push I would have on that is it takes
• 21:50
  Speaker 8: more than the private sector to be able to make
• 21:53
  Speaker 8: that happen. And we're talking about infant formula. This is
• 21:56
  Speaker 8: where we need something like this bill to be put
• 21:59
  Speaker 8: in place to help bring down the costs. Because what
• 22:03
  Speaker 8: they are is it's a production tax credit, which means
• 22:06
  Speaker 8: that for every can, for every production run we make,
• 22:09
  Speaker 8: there's tax credits given back so that we can bring
• 22:12
  Speaker 8: those costs down. And it's really important that we make
• 22:15
  Speaker 8: those investments today. Otherwise what we're doing is we're waiving
• 22:19
  Speaker 8: the white flag as a country and saying America is
• 22:22
  Speaker 8: unable to do it, so we're going to allow other
• 22:25
  Speaker 8: countries to feed our babies. Fast forward in seven ten years,
• 22:29
  Speaker 8: we could be in a much bigger crisis if we're
• 22:31
  Speaker 8: relying on other countries to feed our babies.
• 22:33
  Speaker 4: Lar, just give us the latest updates for your company, Bobby.
• 22:38
  Speaker 8: Well, we've been pushing a lot of innovation. I think
• 22:42
  Speaker 8: the one thing we can't lose sight of is that
• 22:44
  Speaker 8: the quality of infant formula deserves its utmost attention on
• 22:47
  Speaker 8: an ongoing basis. So we recently launched the first USDA
• 22:52
  Speaker 8: organic whole milk infant formula made at our facility in Ohio,
• 22:56
  Speaker 8: and we're going to keep watching the way science evolves,
• 22:59
  Speaker 8: and when the scientists say that there's new updates that
• 23:02
  Speaker 8: need to happen, we're going to be making those changes
• 23:05
  Speaker 8: to our product. And my entire focus as a mother
• 23:09
  Speaker 8: is to keep innovating and up leveling the nutritional requirements
• 23:13
  Speaker 8: of formula for American babies.
• 23:16
  Speaker 2: Do you a want of competition right now?
• 23:21
  Speaker 7: There is competition. There is competition, and it's healthy competition.
• 23:24
  Speaker 8: Because we need we need choice, and this is probably
• 23:28
  Speaker 8: one of the only products in the market that doesn't
• 23:33
  Speaker 8: have enough options. It doesn't have enough choice, and I
• 23:36
  Speaker 8: believe I speak for many parents that when you walk
• 23:38
  Speaker 8: down the formula aisle of a retailer today's it can
• 23:43
  Speaker 8: often be an empty sad and lonely aisle.
• 23:46
  Speaker 7: But you're feeding your babies and it shouldn't be so.
• 23:49
  Speaker 8: I believe and I hope that with something like the
• 23:51
  Speaker 8: Domestic Manufacturing Bill, it actually introduces more competition. We need
• 23:55
  Speaker 8: to see more Bobbies on shelf, and that competition will
• 23:58
  Speaker 8: force all of us to up level standards we need.
• 24:01
  Speaker 2: All Right, Laura, thanks lot, really appreciate it.
• 24:02
  Speaker 5: Good luck.
• 24:03
  Speaker 2: Laura Moudy, CEO and co founder of Bobby Infant, formula
• 24:07
  Speaker 2: maker here in the United States.
• 24:10
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