Latest / Bloomberg Intelligence / Apple Slides Most Since 2025 After Supply Shortages Hurt Outlook

Transcript

Apple Slides Most Since 2025 After Supply Shortages Hurt Outlook · Bloomberg Intelligence

• 0:00
  Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
• 0:10
  Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
• 0:14
  Speaker 1: Eastern on Apple, Cocklay and Android Auto with the Bloomberg
• 0:17
  Speaker 1: Business App. Listen on demand wherever you get your podcasts,
• 0:21
  Speaker 1: or watch us live on YouTube.
• 0:24
  Speaker 2: Going back to the markets, the Dow not doing anything,
• 0:26
  Speaker 2: the SMP not doing anything, but within the Dow, the
• 0:29
  Speaker 2: best performers Amazon up almost fifteen percent. The worst performer
• 0:32
  Speaker 2: is Apple, down about nine point three percent following yesterday's
• 0:36
  Speaker 2: quarterly results and the outlook. Gene Munster is the authority
• 0:40
  Speaker 2: on Apple. He is managing partner at Deepwater Asset Management,
• 0:43
  Speaker 2: and of course years before that he was a sell
• 0:45
  Speaker 2: side analyst on Apple, one of the most well known.
• 0:48
  Speaker 2: Gene good to speak with you. Partially, I'm guessing that
• 0:51
  Speaker 2: Apple's declined today outside declient has a lot to do
• 0:54
  Speaker 2: with the fact that it was an now performer in
• 0:56
  Speaker 2: the lead up to these results. What did we really
• 0:59
  Speaker 2: learn from Apple that can be attributed to what decisions
• 1:02
  Speaker 2: it made versus things are beyond its control, like really
• 1:06
  Speaker 2: high memoryship prices.
• 1:08
  Speaker 3: Well, this is less about the high memory prices and
• 1:11
  Speaker 3: more just similar numbers about where the guidance is going.
• 1:14
  Speaker 3: So Scott, just to take a step back, they guided
• 1:16
  Speaker 3: the twelve or the shoes at twelve percent revenue grows
• 1:18
  Speaker 3: through September. They guided to nine to eleven. Now, when
• 1:22
  Speaker 3: you find this subtraction key with a company, a stock
• 1:25
  Speaker 3: that's been up twenty two percent over the past month
• 1:27
  Speaker 3: versus the NASZAK up one percent, when analysts go to
• 1:31
  Speaker 3: that subtraction key, that is negative for the stock. There's
• 1:34
  Speaker 3: just no explanation that can get investors comfortable. And I
• 1:38
  Speaker 3: think that's kind of where the conversation ended. But I
• 1:40
  Speaker 3: want to go through that a little bit and answer
• 1:42
  Speaker 3: your question about like what what's the substance of what's
• 1:44
  Speaker 3: going on? Is it's about memory costs. The answer is
• 1:47
  Speaker 3: a little bit about memory costs. Maybe if you think
• 1:49
  Speaker 3: about the ten percent decline, probably one or two percent
• 1:53
  Speaker 3: is about this higher memory costs. It's going to have
• 1:55
  Speaker 3: a fifty BIPs negative impact on their margins in the
• 1:58
  Speaker 3: September quarter. The picture is on revenue and effectively what
• 2:02
  Speaker 3: happened this is a pretty unique dynamic, but it makes
• 2:04
  Speaker 3: a ton of sense is that the iPhone has been
• 2:07
  Speaker 3: on fire. It was up twenty two percent in the
• 2:09
  Speaker 3: June quarter. If you look at over the past year,
• 2:11
  Speaker 3: it's been up twenty two percent. That compares to over
• 2:13
  Speaker 3: the past five years it's up three percent on average.
• 2:16
  Speaker 3: So we've got this huge surge and iPhone demand and separately,
• 2:20
  Speaker 3: the MAC up almost thirty percent. Typically it's up a
• 2:23
  Speaker 3: few percent. And what that means is that they have
• 2:25
  Speaker 3: essentially been pulling through inventory. Remember how tight inventory is
• 2:29
  Speaker 3: in part because of these pricing deals that they have
• 2:31
  Speaker 3: to try to keep costs low. They're limited to the
• 2:34
  Speaker 3: amount of capacity that they've had, so they pulled inventory
• 2:37
  Speaker 3: essentially from September into the June quarter, and that means
• 2:40
  Speaker 3: they just simply don't have as much. And the way
• 2:42
  Speaker 3: that I'm going to back test this and be pretty
• 2:45
  Speaker 3: easy for your listeners to do this is just look
• 2:47
  Speaker 3: at what the lead times on the products are right now.
• 2:50
  Speaker 3: They're running a few weeks now that typically would be
• 2:53
  Speaker 3: same day on many of their products. That's the indication
• 2:56
  Speaker 3: that they are in fact constrained and so effectively, what
• 2:58
  Speaker 3: happened is they stole demand from the September quarter and
• 3:02
  Speaker 3: pulled it into the June quarter. There's still a ton
• 3:05
  Speaker 3: of demand out there stole supply excuse me, and pulled
• 3:07
  Speaker 3: it into the June quarter. There's still ample demand and
• 3:10
  Speaker 3: I think all the end of the day, just to
• 3:12
  Speaker 3: put it in the most basic term, Street was at
• 3:14
  Speaker 3: twelve percent revenue growth for September. If they would have
• 3:17
  Speaker 3: kind of had currency constant and supply constant, I bet
• 3:20
  Speaker 3: they would have guided to better than fifteen percent growth
• 3:23
  Speaker 3: for the September quarter.
• 3:25
  Speaker 4: So, Gene, you were busy this week, as a lot
• 3:27
  Speaker 4: of tech investors were, with all the earnings.
• 3:29
  Speaker 5: But I got to.
• 3:29
  Speaker 4: Ask you about this story Wall Street Journal story about
• 3:33
  Speaker 4: Tesla spinning out its China business maybe paved the way
• 3:36
  Speaker 4: for a SpaceX merger. Is that does that seem reasonable
• 3:40
  Speaker 4: to you?
• 3:42
  Speaker 6: Yeah?
• 3:42
  Speaker 3: I would say it's reasonable, and it is going to
• 3:47
  Speaker 3: increase the probability that I have put on this happening
• 3:49
  Speaker 3: in the next few years from ninety to probably ninety
• 3:52
  Speaker 3: two percent. About a week ago I had it at
• 3:55
  Speaker 3: eighty percent. And then the Tesla earnings call, they led
• 3:58
  Speaker 3: a question in about the two companies coming together, which
• 4:01
  Speaker 3: surprised me. Elon started to answer the question, and then
• 4:05
  Speaker 3: Legal took over and said, really, we can't say much,
• 4:07
  Speaker 3: and then Elon grabbed the mic back and started to
• 4:10
  Speaker 3: kind of pontificate about the benefits of these two companies
• 4:13
  Speaker 3: being together. That took me from eighty to ninety. Now
• 4:15
  Speaker 3: I'm at ninety two, and the answer is it just
• 4:17
  Speaker 3: makes a ton of sense. Like this China piece, I
• 4:20
  Speaker 3: think is grossly underappreciated about the tensions tech from the
• 4:25
  Speaker 3: technology companies geopolitically, as I've been meeting with many companies
• 4:29
  Speaker 3: that have ties and these leading private companies that have
• 4:32
  Speaker 3: ties to China, it's pretty clear that they want as
• 4:35
  Speaker 3: much separation as possible, and so my view is that
• 4:38
  Speaker 3: we're probably a couple of years away. Elon's always been
• 4:41
  Speaker 3: has always structured the China business to be easily separated
• 4:45
  Speaker 3: from the US business for a lot of reasons. In
• 4:48
  Speaker 3: one of them is his master plan. Just don't it's
• 4:51
  Speaker 3: very simple. He's going to just keep growing up his
• 4:53
  Speaker 3: businesses into a master company. And so to answer your question, Paul,
• 4:57
  Speaker 3: is I think that this makes a ton of sense,
• 5:00
  Speaker 3: even though they're saying that it's not going on. I
• 5:02
  Speaker 3: think it very much is in the cards.
• 5:04
  Speaker 2: Sounds like it'd be good for Elon Musk from the
• 5:06
  Speaker 2: way he operates and runs his company. Would it be
• 5:09
  Speaker 2: good for investors?
• 5:12
  Speaker 3: Now, that's the key question, and I think the answer
• 5:16
  Speaker 3: is that the simple answers yes from two levels. And
• 5:18
  Speaker 3: an operational piece, which is most important is that when
• 5:22
  Speaker 3: you bring things together, you reduce redundancies. And there's this
• 5:27
  Speaker 3: long standing view and within tech companies that are highly
• 5:30
  Speaker 3: innovative that smaller teams are more effective, and so when
• 5:34
  Speaker 3: you have smaller, tighter teams and effectively you can do that.
• 5:37
  Speaker 3: I think that's one piece of bringing all these together.
• 5:39
  Speaker 3: I think their visions are very similar obviously around being
• 5:42
  Speaker 3: AI first, space AI with SpaceX, physical AI, trustrial with Tesla.
• 5:48
  Speaker 5: All that makes sense.
• 5:49
  Speaker 3: The other reason why I think investors would be rewarded
• 5:52
  Speaker 3: is that the dynamic around Tesla and SpaceX to a
• 5:55
  Speaker 3: lesser extent right now is really about and less investor
• 5:58
  Speaker 3: confidence are on the long term retail investor confidence, and
• 6:02
  Speaker 3: I think that that unwavering confidence would only increase if
• 6:05
  Speaker 3: they brought some of these together. And that has really
• 6:08
  Speaker 3: explained how Tesla can still be a one point two
• 6:11
  Speaker 3: trillion dollar company despite having many of its targets pushed
• 6:14
  Speaker 3: back for years. And so I think you put these
• 6:16
  Speaker 3: two together, it would undoubtedly be the biggest company. I
• 6:20
  Speaker 3: think you put them together your I think the path
• 6:23
  Speaker 3: to a tend jillion dollar company is as well laid
• 6:25
  Speaker 3: at that point.
• 6:26
  Speaker 6: Stay with us.
• 6:27
  Speaker 5: More from Bloomberg Intelligence coming up after this.
• 6:33
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
• 6:37
  Speaker 1: weekdays at ten am Eastern on Applecarplay and Android Auto
• 6:41
  Speaker 1: with the Bloomberg Business App. Listen on demand wherever you
• 6:44
  Speaker 1: get your podcasts, or watch us live on YouTube.
• 6:48
  Speaker 4: Erni's coming out of the energy patch here, excellent mobile, Chevron,
• 6:53
  Speaker 4: some of the big boys reporting here. Let's get in
• 6:55
  Speaker 4: touch with an expert on this stuff.
• 6:57
  Speaker 5: Vincent Piazza.
• 6:58
  Speaker 4: He's the senior research channel, so he covers all the
• 7:00
  Speaker 4: oil and gas companies for Bloomberg Intelligence.
• 7:02
  Speaker 5: No idea where he is.
• 7:04
  Speaker 6: It could be.
• 7:05
  Speaker 4: Philly, Princeton, Wilmington.
• 7:07
  Speaker 6: You never know where this guy is.
• 7:08
  Speaker 4: Bence, what's going on in your world of big oil?
• 7:12
  Speaker 6: And Good morning from Wilmington, Delaware.
• 7:16
  Speaker 7: But it's always sunny in Philadelphia, remember there you go. Yeah,
• 7:21
  Speaker 7: So look, if you think about coming into the quarter,
• 7:25
  Speaker 7: Exon and Chevron, significant optimism coming into the quarter, just
• 7:30
  Speaker 7: considering where we are on wt I and Brent. But
• 7:35
  Speaker 7: you know, Chevron posted a much much cleaner quarter operationally,
• 7:41
  Speaker 7: significant free cash flow, buybacks and dividends were up. The
• 7:46
  Speaker 7: debt side, you know, Chevron bought back roughly eight billion
• 7:50
  Speaker 7: dollars of debt. So look strong quarter operationally for Chevron,
• 7:57
  Speaker 7: a little more optimism coming into the quarter. For Exxon
• 8:00
  Speaker 7: it's down roughly two percent, little softer on the downstream side.
• 8:04
  Speaker 7: But Paul combined thirty two billion of free cash flow.
• 8:10
  Speaker 6: In the quarter.
• 8:11
  Speaker 7: For both companies, you're getting that back in dividends. You're
• 8:15
  Speaker 7: getting that back in buybacks as well. But for Exon,
• 8:20
  Speaker 7: Paul a little bit more of an impact from Hormuz
• 8:23
  Speaker 7: in three Q, so some thorny issues that they have
• 8:28
  Speaker 7: to deal with.
• 8:28
  Speaker 6: But for Chevron, much much cleaner quarter.
• 8:32
  Speaker 2: So does this windfall help them do anything that they
• 8:35
  Speaker 2: wouldn't be able to do otherwise? You talked about how
• 8:38
  Speaker 2: Chevron is going to reduce debt and increased share buybacks,
• 8:40
  Speaker 2: but operationally, can it think bigger than that?
• 8:43
  Speaker 7: Yeah, So if you think about Venezuela for Chevron, Chevron's
• 8:48
  Speaker 7: output in Venezuela will likely grow through twenty twenty eight. Again,
• 8:53
  Speaker 7: put the geopolitics aside. Definitely an operational ambition for them,
• 8:59
  Speaker 7: but one that we'll see production grow from roughly two
• 9:04
  Speaker 7: hundred and eighty thousand barrels to four hundred thousand.
• 9:07
  Speaker 6: Not a big mover right now.
• 9:09
  Speaker 7: But think about over the next couple of years what
• 9:11
  Speaker 7: could happen there with a more sanguine political backdrop in
• 9:16
  Speaker 7: the country.
• 9:17
  Speaker 4: Hey, Vince, what are your companies saying about the strait
• 9:20
  Speaker 4: of horror moves. I'm kind of the opinion that this
• 9:22
  Speaker 4: thing's never going to be really open again because it
• 9:24
  Speaker 4: just takes the threat of an attack to kind of
• 9:28
  Speaker 4: shut things down. What are your companies saying.
• 9:31
  Speaker 7: Well, I can tell you what they've met, and consider
• 9:35
  Speaker 7: that most of my coverage universe is US and domestic.
• 9:40
  Speaker 6: But what we see the industry doing is.
• 9:43
  Speaker 7: Recasting those capital flows, rejiggering, reordering seaborn maritime logistics to
• 9:51
  Speaker 7: dilute the.
• 9:51
  Speaker 6: Impact of the region. And what does that mean.
• 9:54
  Speaker 7: Well, it means extending transit times by up to two
• 9:59
  Speaker 7: three weeks and moving barrels away from geopolitical and conflict zones.
• 10:06
  Speaker 6: What does that mean in general?
• 10:07
  Speaker 5: Though?
• 10:08
  Speaker 7: It means a higher floor price, and it also means
• 10:12
  Speaker 7: a logistics environment that provides for greater redundancy, whether it's
• 10:18
  Speaker 7: floating storage, whether it's more land storage as well. But
• 10:24
  Speaker 7: it does suggest that over time, you know, we do
• 10:27
  Speaker 7: see that part of the world being diluted so that
• 10:30
  Speaker 7: you get away from those conflict zones. It means more
• 10:33
  Speaker 7: capital coming to North America, whether it's capital invested in
• 10:38
  Speaker 7: the US or Canada to get those molecules out in
• 10:42
  Speaker 7: the export market. It means more dollars heading down to
• 10:45
  Speaker 7: South America too, whether it's Venezuela, whether it's Argentina, and
• 10:50
  Speaker 7: even Brazil as well. So you could see over the
• 10:53
  Speaker 7: next several years, greater capital flowing to the Western hemisphere,
• 10:59
  Speaker 7: more barrels in floating storage, more barrels and land storage
• 11:03
  Speaker 7: to dilute the impact of subsequent geopolitical events.
• 11:07
  Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
• 11:14
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
• 11:18
  Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
• 11:21
  Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
• 11:25
  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 11:29
  Speaker 5: Let's get right to it.
• 11:30
  Speaker 4: FIFA has plans to privatize some of its commercial business.
• 11:34
  Speaker 4: I think I've got that right, Okay, that's the global
• 11:37
  Speaker 4: FIFA UEFA. They're the European dudes. They're not happy with it.
• 11:40
  Speaker 4: And look at this just across the tape. I think
• 11:43
  Speaker 4: this is ap senior FIFA official resigns over Infantino's World
• 11:47
  Speaker 4: Cup selloff plan. Second says it deceived staff. Wow, random
• 11:52
  Speaker 4: Waims Joints. Is here you a sports This is a
• 11:54
  Speaker 4: big story, randal. This is global soccer. We just finished
• 11:58
  Speaker 4: with the World Cup. People have a great appreciation for football,
• 12:01
  Speaker 4: maybe now than they had before the World Cup. What's
• 12:04
  Speaker 4: going on here?
• 12:05
  Speaker 8: Listen, FIFA is trying to make as much money as
• 12:07
  Speaker 8: they possibly can. And you know, for me personally, I
• 12:09
  Speaker 8: thought the World Cup was going to come to a
• 12:11
  Speaker 8: cloth I would be able to take a deep breath.
• 12:13
  Speaker 5: But obviously we're witnessing a global fight right now.
• 12:15
  Speaker 8: We have FIFA who is over the World Cup, which
• 12:18
  Speaker 8: is the biggest, largest tournament and the most famous tournament.
• 12:20
  Speaker 5: It's the one of the players love the most.
• 12:22
  Speaker 8: It's one that the teams participating they have a deep
• 12:26
  Speaker 8: desire to win it.
• 12:28
  Speaker 5: But now they're saying, you know, we can.
• 12:30
  Speaker 8: Raise up to four point two billion dollars from Joshua
• 12:33
  Speaker 8: Kushners strive capital, and of course he is the son
• 12:36
  Speaker 8: in law of President Trump, who you BEFA catered to
• 12:39
  Speaker 8: brother in law, brother of.
• 12:41
  Speaker 5: The son in law.
• 12:41
  Speaker 8: Thank you for correcting that. You know, FIFA catd to
• 12:44
  Speaker 8: President Trump all while he was here. And you have UEFA,
• 12:47
  Speaker 8: who's over many of the countries who were participants, France, England, Spain,
• 12:51
  Speaker 8: so many who are just like, hold on, enough is enough.
• 12:55
  Speaker 2: Enough is enough. So UEFA is now talking about boycotting
• 12:58
  Speaker 2: the World Cup that's not for another four years. So
• 13:00
  Speaker 2: is this kind of an empty threat because there's a
• 13:02
  Speaker 2: lot of time between now and the next World Cup.
• 13:04
  Speaker 5: I don't think it's an empty threat.
• 13:05
  Speaker 8: I think that they're very very serious about this because
• 13:08
  Speaker 8: Conka Calf, who is over in North America, Central America
• 13:10
  Speaker 8: and the Caribbean, is also in and we have yet
• 13:12
  Speaker 8: to see what South America has to.
• 13:14
  Speaker 5: Say as well.
• 13:15
  Speaker 8: And so if everyone raises their hand and says we're
• 13:17
  Speaker 8: done with this, then of course these are membership organizations.
• 13:20
  Speaker 8: These aren't the members themselves. But of course to be
• 13:23
  Speaker 8: a part of UEFA you have to be a member,
• 13:25
  Speaker 8: and I think FIFA as well. So if England, France, Mexico,
• 13:29
  Speaker 8: the US, all of these organizations are saying, no, who
• 13:32
  Speaker 8: is going to be participating in this World Cup? And
• 13:34
  Speaker 8: it's not just the twenty thirty one, it's next year's
• 13:37
  Speaker 8: Women's World Cup, and of course it's top of.
• 13:39
  Speaker 5: Mind as well.
• 13:41
  Speaker 4: One of the surprising aspects to me is JP Morgan
• 13:46
  Speaker 4: is advising FIFA here. I'm surprised JP Morgan's would get
• 13:50
  Speaker 4: within a million miles of this.
• 13:52
  Speaker 5: Well, Jason a lot.
• 13:54
  Speaker 4: Of money and the potential political falloup distinctly.
• 13:58
  Speaker 5: Yep, it's true. That's true. How JP Morgan tried to
• 14:01
  Speaker 5: do the Super League years ago that.
• 14:03
  Speaker 8: Fell apart as well, and then outside of that, the
• 14:07
  Speaker 8: upside is tremendous. You know, FIFA's talking about expanding the
• 14:12
  Speaker 8: World Cup to sixty four teams. I believe there was
• 14:14
  Speaker 8: a report from the Times of London that just dropped
• 14:16
  Speaker 8: a couple hours or maybe minutes ago that said that
• 14:18
  Speaker 8: they're trying to do this by August and the vote
• 14:21
  Speaker 8: for this four point two billion dollars would be in September.
• 14:24
  Speaker 8: So who stands the profit between now and then if
• 14:27
  Speaker 8: you expanded before this investment goes in, of course the
• 14:30
  Speaker 8: investors immediately make a.
• 14:31
  Speaker 5: Ton of money.
• 14:32
  Speaker 2: Your colleague Jobs Turner in London wrote a really interesting
• 14:35
  Speaker 2: newsletter where he said FIFA's mistake was to value its
• 14:39
  Speaker 2: spin off at twenty billion dollars. What it should have
• 14:42
  Speaker 2: done is value it at five times that amount and
• 14:45
  Speaker 2: make it so that the members each country would get
• 14:47
  Speaker 2: even more of a payout, so that it'd be uneconomical
• 14:50
  Speaker 2: for them to say, no.
• 14:52
  Speaker 8: We were talking about this before, you know, we went live.
• 14:55
  Speaker 8: And if you are France, if you are England, if
• 14:57
  Speaker 8: you are Spain, if your Portugal, if your co issue,
• 14:59
  Speaker 8: twenty million dollars isn' but a good portion of these
• 15:01
  Speaker 8: soccer federations can make that money in their sleep, and
• 15:06
  Speaker 8: one hundred million dollars goes a long way. You know,
• 15:09
  Speaker 8: might be able to build a training facility, you might
• 15:11
  Speaker 8: be able to hire coaches that can better develop talent,
• 15:14
  Speaker 8: all of those things, whereas twenty million, I'm not so sure.
• 15:17
  Speaker 2: It's harder to say soccer's off for sale if you
• 15:19
  Speaker 2: get a one hundred million exactly.
• 15:20
  Speaker 8: And of course you have to remember that some of
• 15:23
  Speaker 8: the issues that exist in global football outside of Europe
• 15:26
  Speaker 8: are often the money distribution. So after you send this check,
• 15:30
  Speaker 8: who's going to be distributing the money. Is that person
• 15:32
  Speaker 8: going to be like, oh, we got twenty million dollars,
• 15:34
  Speaker 8: I'm going to take five of it.
• 15:35
  Speaker 5: Oh, no, one's looking. I'm going to take another two
• 15:37
  Speaker 5: and a half. And now you know you.
• 15:39
  Speaker 8: Have twelve and a half left to distribute amongst the players,
• 15:41
  Speaker 8: amongst other officials and everyone else like that.
• 15:43
  Speaker 5: There's no governance over that.
• 15:45
  Speaker 8: It would just be a blank check to these federations
• 15:47
  Speaker 8: and then they would have to deal with it.
• 15:49
  Speaker 5: So it's on life support.
• 15:52
  Speaker 4: I would say, is Yuweifa and the other critics of
• 15:55
  Speaker 4: the FIFA's plan. Are they critical of the fact that
• 15:57
  Speaker 4: they're selling a piece of FIFA in general or is
• 16:01
  Speaker 4: it to whom they are?
• 16:02
  Speaker 5: So I think it's both. I think it's both.
• 16:05
  Speaker 8: Number one of this is that if you were going
• 16:07
  Speaker 8: to sell a part of this, then you would want
• 16:08
  Speaker 8: to consult them.
• 16:09
  Speaker 5: To begin with.
• 16:10
  Speaker 8: You'd want to consult you atha, you would want to
• 16:12
  Speaker 8: consult concocasts, say hey, we're thinking about doing this. Then
• 16:15
  Speaker 8: you could say that you could get some preliminary thoughts
• 16:17
  Speaker 8: on it.
• 16:17
  Speaker 5: Everyone was shocked, you know, a week.
• 16:20
  Speaker 8: Ago or earlier this week when they dropped this and
• 16:22
  Speaker 8: said you know what we're going to be raising this money.
• 16:25
  Speaker 2: But your reporting has shown that these discussions have been
• 16:27
  Speaker 2: going on for a while.
• 16:28
  Speaker 5: It's not like it was last week exactly.
• 16:30
  Speaker 8: So now that makes you think you go back all
• 16:32
  Speaker 8: the way to December of last year, President Trump gets
• 16:34
  Speaker 8: a Peace Prize and then we have, you know, these different.
• 16:36
  Speaker 5: Wars that go on.
• 16:37
  Speaker 8: But also how long has FIFA been considering this, knowing
• 16:40
  Speaker 8: that this was going to be the most successful World
• 16:42
  Speaker 8: Cup of all time? And why did FIFA not have
• 16:45
  Speaker 8: conversations with other private equity firms.
• 16:47
  Speaker 5: Such as CVC, such as A sixth Street.
• 16:50
  Speaker 8: I think there's a bunch of them who might be
• 16:52
  Speaker 8: interested in doing this, but those conversations probably did not happen.
• 16:55
  Speaker 4: It's called running a process. Why did they not run
• 16:57
  Speaker 4: a process? And the process is, here's a pitch book,
• 17:00
  Speaker 4: We're gonna sit out touncover yourself, right, yeah, and do
• 17:03
  Speaker 4: it and then you create competition, you drive up to
• 17:06
  Speaker 4: value all that kind of stuff.
• 17:07
  Speaker 5: And you brought up JP Morgan really quickly. What about
• 17:09
  Speaker 5: the other banks?
• 17:10
  Speaker 7: Why?
• 17:11
  Speaker 5: I'm not saying.
• 17:12
  Speaker 8: There's anything wrong with JP Morgan, but I imagine that
• 17:13
  Speaker 8: there are other banks who might globally who might want
• 17:16
  Speaker 8: to be in understand.
• 17:17
  Speaker 5: And they're not.
• 17:18
  Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
• 17:23
  Speaker 1: and anywhere else you get your podcasts. Listen live each weekday,
• 17:27
  Speaker 1: ten am to noon Eastern on Bloomberg dot com, the
• 17:31
  Speaker 1: iHeartRadio app, tune In, and the Bloomberg Business app. You
• 17:35
  Speaker 1: can also watch us live every weekday on YouTube and
• 17:38
  Speaker 1: always on the Bloomberg terminal