Latest / Bloomberg Intelligence / BI Weekend: Deere, Walmart Earnings, Berkshire Hathaway 13F Filings

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BI Weekend: Deere, Walmart Earnings, Berkshire Hathaway 13F Filings · Bloomberg Intelligence

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Speaker 3: Plus we'll discuss what you sent. Thirteen f filings revealed
1:01
Speaker 3: about Warren Buffett's last quarter as CEO of Berkshire Hathaway.
1:05
Speaker 2: But first we begin with news from the farm machinery
1:07
Speaker 2: leader Deer.
1:08
Speaker 3: This week, Deer boosted its annual profit outlook as the company,
1:11
Speaker 3: which is the world's biggest farm machinery maker, anticipates the
1:14
Speaker 3: agriculture economy will soon get better.
1:16
Speaker 5: For more.
1:16
Speaker 2: We were joined by Chris Ciolino, Bloomberg Intelligence senior US
1:20
Speaker 2: machinery analyst.
1:21
Speaker 3: We began by asking Chris for his take on the
1:23
Speaker 3: latest at Deer.
1:24
Speaker 6: It was a really solid beat and race quarter, and
1:27
Speaker 6: I think this kind of gives us the all clear
1:29
Speaker 6: on the cycle and that you know, twenty six will
1:31
Speaker 6: be the trough earnings year. The one Q beat was
1:35
Speaker 6: broad based, all segments, better top line, better margins than expected,
1:40
Speaker 6: really on the back of higher shipment volumes, with particular
1:44
Speaker 6: strength in the small agg business and construction. Those are
1:49
Speaker 6: markets that you know, have started to already recover now
1:52
Speaker 6: this year. The large agg business, which is obviously their
1:55
Speaker 6: bigger growth engine, continues to be soft, but I think
1:58
Speaker 6: we're seeing that business to stabilize and really for the
2:01
Speaker 6: first time, you know, in years, we're starting to see
2:04
Speaker 6: some green shoots emerge there. Order books, you know, strengthened
2:06
Speaker 6: a little bit during the quarter as well.
2:08
Speaker 3: How does this compare in contrast with what CNCH Industrial
2:12
Speaker 3: reported earlier this week, which took a more it feels
2:15
Speaker 3: like a cautious stance.
2:17
Speaker 6: Yeah, you know, I think so. Both companies are calling
2:20
Speaker 6: twenty six as the bottom. I think that's pretty well
2:22
Speaker 6: understood at this point. I think the incremental piece coming
2:25
Speaker 6: out of Deer is that you're starting to see some
2:28
Speaker 6: early signs of improvement in the North American lar jag business.
2:32
Speaker 6: That's a market they're projecting in terms of unit volumes
2:34
Speaker 6: so to be down fifteen to twenty percent this year.
2:37
Speaker 6: That's going to put volumes at the lowest level in
2:39
Speaker 6: more than four decades. But what you're starting to hear
2:41
Speaker 6: from them this quarter is that the order books strengthened,
2:44
Speaker 6: particularly just in the last month of the quarter. You're
2:46
Speaker 6: starting to see a little bit more trade flows going
2:48
Speaker 6: to China, the fleets continue to age, you have the
2:51
Speaker 6: government aid support, so this is not a big step change,
2:54
Speaker 6: but it's really the first signs of incremental improvement.
2:58
Speaker 2: You got to have a great sense of time. Chris
3:01
Speaker 2: as I said, Deer's up forty two percent year to date,
3:03
Speaker 2: so the market's anticipating this business bottoming and then turning up.
3:07
Speaker 2: How long is this cycle for some of these companies
3:09
Speaker 2: that you follow here, they're cyclical.
3:11
Speaker 6: Yeah, so a typical downturn in this business will last
3:14
Speaker 6: anywhere from two to four years. This will be the
3:16
Speaker 6: third year of the downturn. So in terms of the downturn,
3:20
Speaker 6: it looks very similar to what we've seen historically. Typically
3:24
Speaker 6: the upturns last a little bit longer. But you know,
3:29
Speaker 6: this is an incredibly volatile market and it's ultimately dictated
3:33
Speaker 6: by crop prices and farmer profitability. So the crop outlooks
3:38
Speaker 6: do have a significant impact here in terms of what
3:40
Speaker 6: farmers are willing and able to spend.
3:44
Speaker 3: And it looks like Deer relies on the US for
3:48
Speaker 3: a huge part of its revenue, if not half. What
3:51
Speaker 3: is it doing in terms of growing it's business overseas?
3:55
Speaker 3: Is it just kind of a trajectory of growth there
3:58
Speaker 3: that is so learn to what it sees in the US.
4:01
Speaker 3: Or is it competing against some established players?
4:04
Speaker 6: Yeah, so they're regional markets, But in terms of what
4:07
Speaker 6: markets matter for Deer's it's North America and then South
4:11
Speaker 6: America is becoming more important reason being those are you know,
4:15
Speaker 6: typically the bigger producers of road crops, corn, soybeans. They're
4:20
Speaker 6: larger farms, they utilize more the larger equipment that you know,
4:25
Speaker 6: is more conducive to some of the precision technologies which
4:28
Speaker 6: come in at a higher margin. Europe tends to be
4:31
Speaker 6: a little bit more stable. They get a lot of
4:33
Speaker 6: government support, So I think of that market as less cyclical.
4:37
Speaker 6: You know, lower peaks, higher troughs. Those are really kind
4:41
Speaker 6: of the three big growth engines if you think about
4:43
Speaker 6: Deer's geographic exposure.
4:45
Speaker 2: So what is Deer saying about the US farmer these days?
4:50
Speaker 6: Listen, things are still challenging. Let's not understate that, you know,
4:54
Speaker 6: crop prices really haven't moved that much and still under
4:57
Speaker 6: tremendous pressure. As we look at another year of you know,
5:00
Speaker 6: near record production, they are seeing some signs of stability,
5:06
Speaker 6: I would say, And like I mentioned earlier, I think
5:08
Speaker 6: we're starting to see some early signs of improved order
5:10
Speaker 6: activity again, albeit off a very low base, and a
5:14
Speaker 6: lot of that's predicated on you know, we're starting to
5:16
Speaker 6: see a little bit more exports going to China, you
5:19
Speaker 6: have a continued government support, and then also you know,
5:23
Speaker 6: there's certainly a need for replacement. The age of the
5:25
Speaker 6: fleet is as old as it's been in a number
5:27
Speaker 6: of years. So as farmers get more money, you start
5:30
Speaker 6: to see some stability on the crop price front. That
5:32
Speaker 6: that should, you know, unlock some pent up demand.
5:36
Speaker 3: Yeah, I'm just looking at the stock price trading at
5:38
Speaker 3: a record high, but it really has gone on a
5:40
Speaker 3: tear over the past three weeks or two weeks. What
5:45
Speaker 3: accounts for that? Was it anticipation of this report or
5:48
Speaker 3: was it something else.
5:50
Speaker 6: A combination of things, you know. I think, you know,
5:52
Speaker 6: it's pretty well understood now that this year will be
5:55
Speaker 6: the trough of the cycle, so I think there's some
5:58
Speaker 6: positioning ahead of that. And you know, a lot these
6:00
Speaker 6: heavy machinery companies typically do well in early in the
6:03
Speaker 6: rate cut environment. So the anticipation of lower rates stronger
6:06
Speaker 6: growth environment not only in the ag business, but also construction.
6:10
Speaker 6: I think that sometimes gets overlooked. They're completely refreshing their
6:14
Speaker 6: excavator product lineup. They have a pretty strong position in
6:17
Speaker 6: construction equipment, and I think the growth dynamics there moving
6:21
Speaker 6: for twenty six and twenty seven are still quite favorable.
6:24
Speaker 2: Our Thanks to Chris Ciolino, Bloomberg Intelligence Senior US machinery analyst.
6:28
Speaker 3: We move next to the retail giant Walmart.
6:31
Speaker 2: This week, Walmart issued a forecast for four year earnings
6:33
Speaker 2: that missed higher expectations, flagging the unpredictable state of trade
6:37
Speaker 2: and labor market conditions.
6:39
Speaker 3: So we brought in Emily Cone, Bloomberg's consumer team leader.
6:42
Speaker 2: We first asked Emily for her take on Walmart's most
6:44
Speaker 2: recent results.
6:45
Speaker 7: There's another solid quarter for Walmart in the fourth quarter.
6:49
Speaker 7: They did come out with conservative guidance, which is pretty
6:52
Speaker 7: typical for Walmart, come out with cautious guidance and then
6:57
Speaker 7: exceed it later in the year, which is sort of
6:59
Speaker 7: their playbook. And then their guidance was also paired with
7:02
Speaker 7: some warning signs or cautious outlook about the economy, which
7:07
Speaker 7: I found interesting.
7:09
Speaker 3: Yeah, I want to pick up on that idea, because
7:11
Speaker 3: the CFO talked to Bloomberg and mentioned that tariff driven
7:14
Speaker 3: inflation has reached or is reaching its peak, which I
7:18
Speaker 3: thought was really interesting given that there's so many people
7:21
Speaker 3: expecting rate cuts later on this year. Given that inflation
7:24
Speaker 3: seems to have settled down, what more can they tell
7:27
Speaker 3: us about pricing?
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Speaker 7: I think they told us that prices rose one percent
7:33
Speaker 7: in the quarter, which I think was the same as
7:35
Speaker 7: the last quarter. But they also mentioned other things like
7:39
Speaker 7: tepid job growth, student loan delinquencies, rising consumer sentiment being uneven,
7:46
Speaker 7: things that you know, would give any CEO or CFO
7:49
Speaker 7: or company pause when they're trying to outlay what might
7:53
Speaker 7: happen in the coming year.
7:55
Speaker 2: And I've noticed over the last a couple of years
7:58
Speaker 2: they've talked about how maybe their customer base is changing
8:00
Speaker 2: a little bit. People some middle class, maybe even upper
8:03
Speaker 2: income areas coming down to Walmart. They're seeing more and
8:06
Speaker 2: more of that. Is that still the case.
8:07
Speaker 7: I think yes, that's definitely the case, and that's sort
8:10
Speaker 7: of their superpower right now that you know, poor this
8:13
Speaker 7: is the case shaped economy that we talk about a
8:16
Speaker 7: lot poor customers are pulling back in areas, but what
8:20
Speaker 7: they're seeing is wealthier clients clientele who might not have
8:23
Speaker 7: come to Walmart in the past shopping at Walmart, especially
8:27
Speaker 7: for things like their groceries, which they've invested in a
8:31
Speaker 7: lot in the last ten years. You can now find
8:33
Speaker 7: organic groceries and that's really paying off.
8:36
Speaker 3: And they also have this Walmart Plus program which they're
8:38
Speaker 3: really putting a lot of emphasis on. It's actually one
8:41
Speaker 3: of the benefits if you're an American Express Platinum cardholder,
8:44
Speaker 3: which speaks to that idea that they're really reaching for
8:46
Speaker 3: the higher income consumer. How's that going and is it
8:49
Speaker 3: making any headway on stealing Marcus share from Amazon with
8:53
Speaker 3: its Prime program.
8:54
Speaker 7: Yeah, they're seeing a huge growth in e commerce. I
8:57
Speaker 7: think that was one of the major areas that grew
8:59
Speaker 7: this quarter. That is drawing in higher income shoppers who
9:04
Speaker 7: actually pay even more than the membership for faster deliveries,
9:09
Speaker 7: speedier pickup times, and that's helping them also grow market
9:12
Speaker 7: share among wealthier shoppers who are looking for convenience over
9:17
Speaker 7: everything else.
9:19
Speaker 2: What are they saying about Did they even talk about
9:21
Speaker 2: on comments called tariffs anymore? That's still a discussion point.
9:25
Speaker 2: And what's the company saying about tariffs?
9:27
Speaker 7: Yeah, tariffs came up a little bit, but they said
9:31
Speaker 7: that they expect that that tariff driven inflation to peak now.
9:38
Speaker 7: I think they also benefit here again from their groceries.
9:42
Speaker 7: Groceries are a portion of their assortment that is less
9:45
Speaker 7: impacted by tariffs, and they're really benefiting from I think
9:50
Speaker 7: sixty percent of their sales come from groceries these days.
9:54
Speaker 3: You mentioned e commerce. It sounds like Walmart will continue
9:56
Speaker 3: to invest in technology and automation. What were some of
10:00
Speaker 3: the things that they flagged that they're working on in
10:02
Speaker 3: terms of innovation and building on the technology that they
10:06
Speaker 3: have already implemented into their system.
10:08
Speaker 7: Yeah, it was interesting. They said most of their fulfillment
10:12
Speaker 7: and stores is now coming from automated warehouses, most of
10:15
Speaker 7: their fulfillment for e commerces coming from automated warehouses. They
10:20
Speaker 7: have really made huge gains here to speed up fulfillment centers,
10:26
Speaker 7: and I think we should expect to see more of
10:29
Speaker 7: that in the coming quarters. They cited story models and
10:32
Speaker 7: automation as the main areas where they're going to be
10:35
Speaker 7: continuing to invest.
10:37
Speaker 2: You know, one of the things that's amazed me really
10:39
Speaker 2: for ten fifteen years about Walmart is how well their
10:42
Speaker 2: digital business has been, their e commerce business. They have
10:45
Speaker 2: built that to not only I mean they can go
10:48
Speaker 2: toe to toe with Amazon dot Com just about anything.
10:51
Speaker 2: It seems like is that still a growth story for them?
10:53
Speaker 7: Yeah? I think they said something like a third. They've
10:56
Speaker 7: seen a huge amount of shoppers are now actually interacting
11:01
Speaker 7: with their AI, their AI assistant on their app and
11:07
Speaker 7: on their website that really helping people make shopping decisions faster.
11:13
Speaker 7: They're seeing an increasing spend from customers who interact with
11:17
Speaker 7: the AI shopping assistant, they said, which which I think
11:20
Speaker 7: we can expect to see.
11:21
Speaker 2: Just in the last five years, their ibathas roughly doubled,
11:25
Speaker 2: but their cap X is tripled.
11:27
Speaker 3: Commerce build out, that tech build out, yep.
11:29
Speaker 2: So I mean they're putting their money where their mount
11:31
Speaker 2: is here.
11:32
Speaker 3: You know what Paul's dream job is, Emily does. He
11:34
Speaker 3: mentioned this to you, No.
11:36
Speaker 2: Be a greeter at Walmart. See, I'm a nice, friendly guy.
11:39
Speaker 3: I want themock. He wants to wear the smock. I
11:41
Speaker 3: bet you know. To that point, Walmart employees about two
11:44
Speaker 3: point one million people, which makes it a huge employer.
11:48
Speaker 3: Do we have a sense of whether they've been growing
11:50
Speaker 3: their employee base at all with this commitment to technology,
11:54
Speaker 3: to automation.
11:56
Speaker 7: I think they've definitely made a huge investment in technology.
12:00
Speaker 7: They have a lot more people working on tech than
12:02
Speaker 7: they ever have, and I think we could expect to
12:04
Speaker 7: see more of that for sure.
12:06
Speaker 3: That was Emily Cone, Bloomberg Consumer Team Leader.
12:08
Speaker 2: You're listening to Bloomberg Intelligence on Bloomberg Radio, providing in
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Speaker 2: depth research and data on two thousand companies and one
12:13
Speaker 2: hundred and thirty industries.
12:15
Speaker 3: You can access Bloomberg Intelligence via bi go on the terminal.
12:18
Speaker 3: I'm Scarlett Foo.
12:19
Speaker 2: And I'm Paul Sweeney, and this is Bloomberg.
12:26
Speaker 1: This is Bloomberg Intelligence with Scarlet Foo and Paul Sweeney
12:30
Speaker 1: on Bloomberg Radio.
12:33
Speaker 2: Next to news from the amusement resort operator six Flags Entertainment.
12:36
Speaker 3: This week, six Flags reported twenty twenty five earnings and
12:39
Speaker 3: revenue that were slightly ahead of analyst estimates. For more
12:42
Speaker 3: on this and the latest in the travel and leisure space,
12:44
Speaker 3: were joined by Jody Lori, Bloomberg Intelligence credit analyst.
12:47
Speaker 2: We first asked Jody for her take on six Flags earnings.
12:50
Speaker 8: So I think what's interesting, Paul, is that we're seeing
12:53
Speaker 8: that some of what six Flags said, oddly was similar
12:56
Speaker 8: to what we saw on APHIS's call. And both companies
13:00
Speaker 8: has had these large impairment charges to boost EBADA, but
13:03
Speaker 8: it didn't necessarily equate to cash generation. And both companies
13:07
Speaker 8: are focused on improving their debt load and also just
13:11
Speaker 8: the core of the business, the operational side, adding in
13:14
Speaker 8: AI to boost the business and figuring out ways to
13:17
Speaker 8: turn around, and both companies are dealing with new CEOs.
13:20
Speaker 8: So it's just like a weird sort of compare contrast
13:23
Speaker 8: scenario that I've been toying with my head.
13:26
Speaker 3: I mean, Paul was talking about how Hershey Park was
13:28
Speaker 3: his first amusement park, and then we're obviously the big
13:32
Speaker 3: one would be Disney yep or Universal. Have you been there? No, Okay,
13:37
Speaker 3: that's a pretty good one.
13:38
Speaker 2: Yeah.
13:39
Speaker 3: Is that the competition for six Flags or does it
13:42
Speaker 3: work on a different level than those It is and.
13:45
Speaker 8: It isn't the competition Scarlett. I mean, I think you know,
13:48
Speaker 8: six Flags likes to compare itself more to alternatives in
13:52
Speaker 8: leisure and entertainment. There was a great slide that they
13:56
Speaker 8: provided that showcase the value proposition if you compare it
14:00
Speaker 8: to like concert tickets or in inert sporting event. The
14:05
Speaker 8: amount of time that you spend at six Flags, in
14:07
Speaker 8: theory is all day, right, So the cost to enter
14:11
Speaker 8: and the cost for the you know, the sort of
14:13
Speaker 8: concessions is much lower than what you would pay to
14:16
Speaker 8: go to a Taylor Swift concert. Now that said, I mean,
14:19
Speaker 8: I think what's so interesting is is when the company combined,
14:22
Speaker 8: there was this image that they could create like an
14:25
Speaker 8: all pass promotion right that you can enter in all parks.
14:29
Speaker 8: They've only finally started rolling out something that's a regional
14:31
Speaker 8: pass recently, and I'm curious to see what could happen
14:36
Speaker 8: with the company as they improve those sort of points
14:39
Speaker 8: of it, because what's funny is if you look at
14:41
Speaker 8: it from a revenue perspective, it did actually pretty well
14:44
Speaker 8: this year compared to twenty four, and twenty four was
14:46
Speaker 8: a pretty strong year. Same thing with some of the
14:49
Speaker 8: per cap spending pieces of it, right, the per cap component,
14:53
Speaker 8: the admissions were down, but the in park spending was decent,
14:56
Speaker 8: and so you say, what's going on, like why are
14:59
Speaker 8: they having such issues? And it comes down to an
15:01
Speaker 8: operational issue. It comes down to the fact that the
15:03
Speaker 8: legacy six Flags assets. I think we're in way worse
15:06
Speaker 8: shape than Cedar Fair anticipated when they took on the company,
15:10
Speaker 8: and they're saddled with a lot of debt. So it's
15:12
Speaker 8: really a question of if the capital markets are going
15:14
Speaker 8: to be encouraging enough to help them through. You know,
15:17
Speaker 8: they help them through in January with a new issue,
15:19
Speaker 8: but really are they able to sort of support the
15:22
Speaker 8: company through this transition.
15:24
Speaker 3: That park past You mentioned sounds like a you know,
15:26
Speaker 3: the amusement park version of an epic past, which makes
15:28
Speaker 3: sense if you're skier and you are chasing the weather
15:32
Speaker 3: around the country. What doesn't make sense to go to,
15:34
Speaker 3: you know, the West Coast for six flocks and they
15:36
Speaker 3: come back.
15:37
Speaker 8: I don't know it could scarlet. You don't talk to
15:40
Speaker 8: Ira Jersey enough. Apparently, at least when it comes to
15:43
Speaker 8: roller coasters. You probably talked him about interest rates. Next
15:46
Speaker 8: time when you have him on, ask him about his
15:48
Speaker 8: son's American Coasters Enthusiast card.
15:50
Speaker 3: That he proudly carry.
15:52
Speaker 8: If you are deep into the roller coaster dynamics and culture,
15:57
Speaker 8: people will go to the end of the Earth. And
16:00
Speaker 8: I am curious to see how the Middle East traction
16:02
Speaker 8: for six Flags, for SeaWorld and for some of the
16:05
Speaker 8: other parks that have expanded there. How that's going to
16:07
Speaker 8: play out if you do see these park coaster enthusiasts
16:11
Speaker 8: fly out to Saudi Aravia, fly out to the OAE
16:13
Speaker 8: to ride certain coasters.
16:15
Speaker 3: Our thanks to Jody Lourie, Bloomberg Intelligence credit analyst, we
16:18
Speaker 3: move next to the real estate sector.
16:20
Speaker 2: Bloomberg Intelligence recently put out research entitled AI Drives Office
16:24
Speaker 2: demand amid job cut fears.
16:26
Speaker 3: And according to BI, AI is emerging as a catalyst
16:30
Speaker 3: for office demand, reinforcing leasing momentum in New York City
16:33
Speaker 3: and San Francisco.
16:34
Speaker 2: For more on this, we were joined by Jeffrey Langbaum,
16:36
Speaker 2: Bloomberg Intelligence Senior US rit analyst.
16:38
Speaker 3: We started our conversation by asking Jeffrey to discuss what
16:41
Speaker 3: people are saying to him with regards to AI and
16:44
Speaker 3: office space.
16:45
Speaker 4: Right now, what people are thinking about is what the
16:47
Speaker 4: impact is going to be on office space if AI
16:51
Speaker 4: makes all of these industries that lease office space irrelevant. Okay,
16:55
Speaker 4: what does that mean for demand for space? And you know,
16:59
Speaker 4: we saw last week that you know that started with
17:03
Speaker 4: software and then it went to you know, industry after
17:06
Speaker 4: industry and ended up with the real estate brokers and
17:08
Speaker 4: eventually the office rates getting hit hard.
17:11
Speaker 3: So so far, this is just kind of fear that's
17:13
Speaker 3: wafting across the market. Have we actually seen any evidence
17:16
Speaker 3: of this happening.
17:17
Speaker 4: Not yet, And in fact we've seen some of the opposite.
17:20
Speaker 4: Leasing velocity has been at the highest level since before
17:25
Speaker 4: the pandemic in markets like New York and San Francisco.
17:28
Speaker 4: The reats that we follow names like sl Green Bornado
17:32
Speaker 4: Boston properties are now BXP. These guys are reporting very
17:36
Speaker 4: strong leasing volumes. We're starting to see occupancies tick up
17:39
Speaker 4: off the bottom in their portfolios. And you know, one
17:43
Speaker 4: of the one of the dynamics at play is that
17:45
Speaker 4: AI firms are leasing space as they grow, and to
17:49
Speaker 4: the extent that companies being you know, impacted by AI
17:54
Speaker 4: start to receive a little bit, there's an offset there.
17:57
Speaker 2: So your office reached docs last week sold off on
18:02
Speaker 2: this fear.
18:03
Speaker 4: Yeah, and it's not a new fear. I mean it's
18:05
Speaker 4: been it's been at play for some time now.
18:09
Speaker 5: You know, work from.
18:11
Speaker 4: Home kind of worked its way through and everyone kind
18:15
Speaker 4: of got comfortable with where hybrid kind of settled in,
18:18
Speaker 4: and then you know what was the next thing to
18:20
Speaker 4: hit office? And it was this And it's been you know,
18:23
Speaker 4: it's been out there for probably a couple of quarters. Now,
18:25
Speaker 4: what is the impact going to be? But last week
18:28
Speaker 4: when software rolled over it, it's just compounded.
18:31
Speaker 3: Is this something where because of the evidence that companies
18:35
Speaker 3: are still leasing quite a bit of space, that we're
18:37
Speaker 3: going to see a just as sharp recovery.
18:40
Speaker 4: Well that's possible, but you know there's also the risk
18:46
Speaker 4: that you know, the the equity markets are turbulent and forecasting, right,
18:50
Speaker 4: and so there is the possibility that there will be
18:54
Speaker 4: negative leasing news to come. It's certainly not showing up
18:57
Speaker 4: in the numbers now. And we do think, and this
19:00
Speaker 4: is backed up by some survey work that we just
19:02
Speaker 4: did last week of office workers in both New York
19:05
Speaker 4: and San Francisco.
19:06
Speaker 9: We actually think that.
19:07
Speaker 4: There's still a period of time to come where firms
19:10
Speaker 4: are actually leasing more space, they're expanding their headcount to
19:14
Speaker 4: try and figure out how to take advantage of AI
19:17
Speaker 4: and to grow their business. And that could actually you know,
19:22
Speaker 4: I don't know about a sharp snapback, but it could
19:25
Speaker 4: you prolong the positive vibes for some time.
19:28
Speaker 2: What's the sector of the remarket that you like the
19:30
Speaker 2: most right now?
19:31
Speaker 4: Senior housing is I mean, you know, it's the one
19:37
Speaker 4: aspect where you cannot refute the demand story at all.
19:42
Speaker 4: And at the same time, where real estate guys typically
19:46
Speaker 4: love to build what to take advantage of those demand stories.
19:49
Speaker 4: There's not much senior housing coming out of the ground,
19:51
Speaker 4: so there's a huge supply demand imbalance.
19:54
Speaker 3: Okay, but a senior housing more attractive in certain markets
19:57
Speaker 3: over other markets. How do you pick between winners and
19:59
Speaker 3: losers when it comes to senior housing.
20:00
Speaker 4: It's really more about the local operator than it is
20:04
Speaker 4: about the specific market. I mean, obviously, if you're in
20:07
Speaker 4: a place where you know, economics aren't as strong and
20:11
Speaker 4: you don't have this affluent a potential resident base, then
20:16
Speaker 4: that's going to you know, potentially impact but local strong
20:20
Speaker 4: local operators. When there's not a lot of supply coming
20:24
Speaker 4: out of the ground, and you know you basically just
20:27
Speaker 4: have an aging American population that is going to need
20:30
Speaker 4: housing solutions, it's really a play across the board, all right.
20:34
Speaker 2: Thanks to Jeff Langbaum, Bloomberg Intelligence Senior US Route analyst, we.
20:38
Speaker 3: Move now to some research at Bloomberg Intelligence recently published
20:41
Speaker 3: on American Express.
20:42
Speaker 2: According to BI, American Express is focused on attracting new
20:45
Speaker 2: premium cardholders should help it meet its consensus EPs growth
20:48
Speaker 2: in twenty twenty six and twenty twenty seven.
20:50
Speaker 3: So we brought in Edward D. Jerry and Bloomberg Intelligence
20:53
Speaker 3: consumer finance analyst.
20:55
Speaker 2: We first asked ed about Amex's most recent quarter and
20:57
Speaker 2: what we've learned since a company rolled out it's increased
21:00
Speaker 2: fee for the Platinum card.
21:02
Speaker 5: When they reported the quarter, great quarter.
21:05
Speaker 10: Uh, everything everything kind of in line with expectations or
21:09
Speaker 10: in some areas better and gave great guidance in terms
21:13
Speaker 10: of mid teens EPs growth for twenty twenty six. And
21:17
Speaker 10: you know a lot of a lot of conversation about
21:19
Speaker 10: the refresh and how great the refresh is going and
21:22
Speaker 10: acquiring you know, lots of new customers.
21:25
Speaker 9: Uh.
21:26
Speaker 5: But generally there were two things that.
21:28
Speaker 10: Sort of analysts picked on in the quarter when you're
21:31
Speaker 10: when you're trading that sort of a high multiple financial
21:34
Speaker 10: and and those two things were.
21:36
Speaker 5: Number one, that new card the new card.
21:39
Speaker 10: Acquisition rate kind of went down a little bit relative
21:42
Speaker 10: to last year and relative to the third quarter. And
21:46
Speaker 10: initially all the money that they're spending on rewards and
21:49
Speaker 10: services and and all of what they call variable customer
21:53
Speaker 10: engagement expenses went up a lot, a little too much
21:56
Speaker 10: in some people's opinions. So what what we kind of
22:00
Speaker 10: learned recently with sort of some supporting data around two things.
22:04
Speaker 10: And the big thing was while the number of new
22:07
Speaker 10: cards acquired went down a little bit, the fee per
22:11
Speaker 10: new card went up from one hundred and ninety six
22:13
Speaker 10: in the third quarter to two hundred and eighty two.
22:17
Speaker 5: So huge jump. Now why is that?
22:19
Speaker 10: That's because a lot of the much bigger percentage of
22:22
Speaker 10: those new cards came from new Platinum customers, which is
22:26
Speaker 10: much better than just a regular customers. So even though
22:29
Speaker 10: a little less customers acquired, you're getting many more new
22:32
Speaker 10: Platinum customers, much better economics.
22:35
Speaker 5: So that's sort of one thing.
22:37
Speaker 10: And then talked a lot about how they're absorbing all
22:41
Speaker 10: of those extra reward costs if you will. But still
22:46
Speaker 10: that's and that's fine because it's enhancing revenue growth, and
22:50
Speaker 10: sort of the revenue growth benefit of that offsets the
22:54
Speaker 10: reward cost more than offsets that reward cost.
22:56
Speaker 3: Okay, Edward. One thing that I've noticed from these Facebook
22:59
Speaker 3: groups is that people get a Platinum card that's you know,
23:02
Speaker 3: for the sign up bonus and everything else. But then
23:04
Speaker 3: they start branching out and they get the Gold card
23:07
Speaker 3: because there's more reward points for groceries there. They start
23:09
Speaker 3: to compile a lot of AMEX cards, so a lot
23:13
Speaker 3: of the users have multiple cards, don't they.
23:16
Speaker 5: Yeah, no question about that.
23:19
Speaker 10: And obviously you've got to you know, a lot of
23:22
Speaker 10: sort of families on the Platinum card, so there's sort
23:24
Speaker 10: of a primary Platinum card owner and then issuer of
23:28
Speaker 10: multiple cards related to that. So you sort of have
23:31
Speaker 10: this this sort of network effect of the Platinum card
23:35
Speaker 10: that just keeps building and to some extent, you know,
23:39
Speaker 10: if you can, you know, when you come back to
23:41
Speaker 10: the JP Morgan Sapphire card, if you can, you know,
23:44
Speaker 10: build that reward and service infrastructure even bigger and better,
23:49
Speaker 10: you know, you create the you know, sort of the
23:51
Speaker 10: mode effect, which is what they're trying to do and
23:53
Speaker 10: seems to be working.
23:55
Speaker 2: Hey, ed the I have the Green card I got
23:58
Speaker 2: the day I graduated college at kept it all. But
24:01
Speaker 2: Scarlet and other folks, I understand they go crazy for
24:04
Speaker 2: these really expensive cards and all the points in managing.
24:07
Speaker 5: You need to go platinum.
24:09
Speaker 2: Paul, No, I just can't. I can't do it. But
24:13
Speaker 2: how big of a business is that for these card companies?
24:16
Speaker 2: Is that really the value driver? The Scarlet foods of
24:18
Speaker 2: the world.
24:20
Speaker 5: That's it.
24:21
Speaker 10: Yeah, they care much more about Scarlett than they care
24:24
Speaker 10: about you. I have to say, yes, she's going she's
24:27
Speaker 10: about to pay eight hundred and ninety five dollars a year,
24:30
Speaker 10: up from six hundred and ninety five dollars a year.
24:34
Speaker 5: They're going to give her a heck of a lot
24:35
Speaker 5: of rewards and services for that, but I had a
24:38
Speaker 5: big sign of bum on average.
24:40
Speaker 10: Now I hope this is not completely true, but on average,
24:44
Speaker 10: she one of the Platinum card members, spends about ten
24:47
Speaker 10: times as much on her card as you do.
24:49
Speaker 3: That was Edward Nigerian Bloomberg Intelligence consumer finance analyst. Coming up,
24:53
Speaker 3: we'll look at why MSG sports is considering splitting up
24:56
Speaker 3: its Nicks and Rangers businesses.
24:58
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Speaker 11: Everyone needs to take care of their mental health, even
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Speaker 13: With the Bloomberg Small Business Report. I'm John Tucker. There's
25:50
Speaker 13: a historic mansion on the northeast corner of San Francisco's
25:52
Speaker 13: Alamo Square Park where several dozen people live spending their
25:56
Speaker 13: days immersed in esthetic concentration. Welcome to HFO or Hacker
26:01
Speaker 13: Fellowship zero. The goal is to attract the best entrepreneurs.
26:06
Speaker 13: The Living's startup Accelerator promises to strip away all of
26:10
Speaker 13: life's tedium so that founders can have the most productive
26:13
Speaker 13: twelve weeks of their life and birth their real life's work.
26:17
Speaker 13: The program comps living expenses and hands over cash in
26:21
Speaker 13: exchange for equity in each startup operating from its house.
26:25
Speaker 13: The Residency, which started in twenty twenty and just completed
26:28
Speaker 13: its seventh batch, has maintained a relatively low profile, even
26:33
Speaker 13: as it gets thousands of applications for each session's ten slots.
26:37
Speaker 13: Among those who've attended or a dozen founders who previously
26:40
Speaker 13: build companies with billion dollar valuations, HFO it takes a
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Speaker 13: five percent equity in each participating startup. And that's the
26:48
Speaker 13: Bloomberg Small Business Report.
26:51
Speaker 1: This is Bloomberg Intelligence with Scarlet Foo and Paul Sweeney
26:56
Speaker 1: on Bloomberg Radio.
26:58
Speaker 2: We move next to some news at the multi national
27:00
Speaker 2: conglomerate Berkshire Hathaway.
27:02
Speaker 3: This week, the company released its thirteen F filing for
27:04
Speaker 3: the fourth quarter, and investor Warren Buffett's last quarter as
27:07
Speaker 3: Berkshire Hathaway CEO reflected a bearish sentiment.
27:10
Speaker 2: Berkshire slast its holding of Amazon by more than seventy
27:13
Speaker 2: five percent in the fourth quarter, while also building a
27:15
Speaker 2: stake in The New York Times.
27:17
Speaker 3: Berkshire also continued trimming Bank of America and Apple during
27:19
Speaker 3: the quarter while increasing its stakes and Chevron and Chubb.
27:23
Speaker 2: For more on all of this, we were joined by
27:24
Speaker 2: Matt Palizola, Bloomberg Intelligence senior analyst.
27:27
Speaker 3: We began by asking Matthew if this will be the
27:29
Speaker 3: last time we mentioned Warren Buffett buying or selling shares
27:31
Speaker 3: in companies.
27:32
Speaker 14: Yes, it is so he was the CEO as of
27:35
Speaker 14: the fourth quarter. So these moves that we're looking at
27:38
Speaker 14: in the thirteen F took place in the fourth quarter
27:40
Speaker 14: of last year.
27:42
Speaker 9: To be totally fair. He's been stepping back.
27:44
Speaker 14: He probably wasn't behind a lot of this anyway, but
27:47
Speaker 14: this is actually the last quarter that you could even
27:50
Speaker 14: attribute these things to him. He remains chairman, so you
27:52
Speaker 14: never know he'd be looming behind the scenes. But his
27:55
Speaker 14: last quarter as CEO, he.
27:57
Speaker 3: Famously said he was only investing in things that he
27:59
Speaker 3: understood then that typically did not include technology companies. But Apple,
28:03
Speaker 3: I guess he saw more as a consumer company than
28:06
Speaker 3: anything else.
28:06
Speaker 9: Yeah, I think so.
28:07
Speaker 14: And I think the you know, his thing was motes
28:09
Speaker 14: right and probably still is, but the iPhone mode and
28:14
Speaker 14: the infrastructure built in, I think those were appealing things.
28:17
Speaker 14: They have been pairing that that investment, as we know,
28:21
Speaker 14: part of that, and you know, it's it's kind of
28:23
Speaker 14: a twist because he had said this said of the
28:25
Speaker 14: annual meeting a couple of meetings ago, that it was
28:29
Speaker 14: a kind of tax reasons that they had these huge
28:31
Speaker 14: unrealized gains in there, and he thought taxes would be
28:34
Speaker 14: going up. Now they're certainly not going to go up
28:36
Speaker 14: under the current administration kind of anytime soon. But Buffett
28:39
Speaker 14: is always long term thinking, so I think that's what
28:42
Speaker 14: he was looking at. As we've got you know, tens
28:44
Speaker 14: of billions of dollars of unrealized gains that will be taxed.
28:47
Speaker 14: And I think it does still hold true that in
28:51
Speaker 14: ten years from now, probably the corporate tax rate could
28:53
Speaker 14: be higher. And I think that was his concern and
28:55
Speaker 14: part of the reason they were taking down those those
28:57
Speaker 14: big gains in those big positions.
29:00
Speaker 2: And Lambert also cut its Amazon steak by seventy five percent.
29:03
Speaker 14: They did so Amazon. They initially got into Amazon him
29:08
Speaker 14: in twenty nineteen. That was one of his investment deputies,
29:10
Speaker 14: I think brought it to him. Then again also like tech,
29:14
Speaker 14: but a retailer. Right, that position we calculated was up
29:19
Speaker 14: about one hundred and thirty to one hundred and forty
29:21
Speaker 14: percent over the time. They hold it nice but kind
29:25
Speaker 14: of in line with the S and P five hundred.
29:27
Speaker 14: So it didn't really outperform, so I think it was
29:31
Speaker 14: kind of taking some money off the table. I sold it,
29:33
Speaker 14: I believe like one point seven billion worth of that stock,
29:36
Speaker 14: cutting most of the position, So that one I think
29:39
Speaker 14: was probably a company specific didn't really outperform. They bought
29:42
Speaker 14: four billion of Alphabet last quarter, so you know, the
29:46
Speaker 14: kind of tech aversion you know, maybe changing over time,
29:49
Speaker 14: what did he increase stakes in so two big ones
29:54
Speaker 14: Chevron and Chubb. So Chevron is they their fifth biggest holding.
29:58
Speaker 14: I think they interestingly, I don't know if they were
30:02
Speaker 14: kind of betting on US intervention in Venezuela, which happened
30:07
Speaker 14: kind of after the quarter, so you can't say that
30:09
Speaker 14: like murderer got taken out and this stuff happened and
30:11
Speaker 14: they did it and Reaction did it before. But maybe
30:13
Speaker 14: they were reading the tea leaves there. I don't know.
30:16
Speaker 14: It's a big holding for them. I think the kind
30:19
Speaker 14: of geopolitical energy play makes total sense. The other one
30:24
Speaker 14: is Chubb, which I don't want to get too excited
30:26
Speaker 14: thinking about insurance mega deal here, but they are now
30:31
Speaker 14: the second well they've been the second largest holder of
30:34
Speaker 14: Chubb stock.
30:34
Speaker 9: Chubb makes total sense.
30:36
Speaker 14: It is, in our view of BI a cream of
30:39
Speaker 14: the crop insurance company, global reach, still growing nicely, great management.
30:45
Speaker 14: It's a company that Berkshire would want to own. Now
30:47
Speaker 14: Berkshire's got their own massive insurance business. Yes, the interesting
30:51
Speaker 14: thing is you've got two massive insurance businesses. They're actually
30:55
Speaker 14: quite complimentary if one were to want to put them together.
30:58
Speaker 14: So the Berkshire business very big personal atto in Geico,
31:01
Speaker 14: very big reinsurance, kind of global global reinsurance. Those are
31:05
Speaker 14: two businesses that Chubb is not really in. There's some
31:10
Speaker 14: overlap in the kind of US specialty businesses that they're
31:12
Speaker 14: both in, but it would be phenomenally complementary of those
31:18
Speaker 14: two businesses. I think there's probably a lot of hurdles
31:21
Speaker 14: to some sort of you know, total deal there. Chubb's
31:25
Speaker 14: market cap is one hundred and thirty billion. Berkshire has
31:27
Speaker 14: three hundred billion of cash, so they theoretically could buy
31:30
Speaker 14: Chubb in cash if they wanted to. But I think
31:33
Speaker 14: it's probably some cultural issues and would Chubb really want
31:36
Speaker 14: to sell as the other thing? But you know, it
31:38
Speaker 14: is something it as a stock something Berkshire would want to.
31:41
Speaker 3: Is that a strategy that Berkshire actually follows through on
31:44
Speaker 3: where it starts off with a stake and then eventually decides,
31:47
Speaker 3: you know what, we're just gonna buy the whole thing.
31:49
Speaker 9: Scarlett, Yeah, they do do that.
31:50
Speaker 14: So I think with Burlington Northern, which is a little
31:52
Speaker 14: bit before time when they bought it, they did things
31:54
Speaker 14: like that where they acquire the public stake and then
31:57
Speaker 14: they build.
31:57
Speaker 9: It over time.
31:58
Speaker 14: That's why there was a lot of speculator about occidental.
32:01
Speaker 14: Buffett then came out and threw cold water on it,
32:03
Speaker 14: saying that but it seemed like it was going along
32:05
Speaker 14: with their playbook of huge acquisitions that they made before.
32:08
Speaker 2: So none of the warns out. Can we have a
32:09
Speaker 2: serious discussion about a dividend?
32:12
Speaker 9: We can?
32:12
Speaker 14: I think you know, we'll get you on the phone
32:15
Speaker 14: with Greg Abel Let's see what he says. But you know,
32:18
Speaker 14: I think our take has been in the early years.
32:23
Speaker 14: Able will probably adhere to the ethos of Berkshire. And
32:27
Speaker 14: I don't think he's going to come in and start
32:29
Speaker 14: breaking down walls like I don't think anyone would like
32:31
Speaker 14: to see that, especially Buffett's still there. I mean, they
32:35
Speaker 14: have tremendous excess capital. Buffett is praised Able as being
32:39
Speaker 14: a great capital allocator, great capital manager, and they've also
32:43
Speaker 14: said we literally can't there's so much money, we can't
32:45
Speaker 14: put it to work in a reasonable way. So it
32:49
Speaker 14: would make sense to see something happen there. And I think, look,
32:52
Speaker 14: the other thesis is they're not going to be as
32:54
Speaker 14: good as anything anymore. Right, there's no better investor than Buffett.
32:57
Speaker 14: Give a g Jane, who is the head of the
32:59
Speaker 14: insurance operations. He's been selling a lot of stock. Perhaps
33:02
Speaker 14: he's getting close to retirement, so you're not going to
33:04
Speaker 14: be good at any of these things anymore.
33:05
Speaker 9: Some sort of capital which there will be a big catalyst.
33:08
Speaker 2: Oh, thanks to Matt Palozola, Bloomberg Intelligence Senior Analyst.
33:11
Speaker 3: We move next to some news in the business of sports.
33:13
Speaker 2: This week, we heard that Madison Square Gardens board of
33:16
Speaker 2: directors approved a plan to explore splitting the NBA's New
33:19
Speaker 2: York Knicks from the NHL's New York Rangers.
33:21
Speaker 3: It's a move that would make each team a separate,
33:23
Speaker 3: publicly traded company.
33:25
Speaker 2: From more on this, we were joined by Randall Williams,
33:27
Speaker 2: Bloomberg Business of Sports reporter. We first asked Randall to
33:30
Speaker 2: break down why this deal may happen.
33:32
Speaker 12: Yeah, you look at the enterprise value of the Knicks
33:35
Speaker 12: and Rangers and what they're traded at its seven billion dollars.
33:37
Speaker 9: But you look at what the Lakers sold for.
33:39
Speaker 12: A loan ten billion dollars, and I think the Knicks
33:41
Speaker 12: obviously are in a larger market than New York. The
33:43
Speaker 12: Lakers have won more titles, but New York is New York,
33:46
Speaker 12: and so both the Knicks and the Rangers, I think
33:49
Speaker 12: would carry a tremendous value, maybe twelve billion dollars combined,
33:53
Speaker 12: and that's on the low end.
33:54
Speaker 2: So is this maybe a first step for selling one
33:59
Speaker 2: of the teams, selling a piece of one of.
34:01
Speaker 12: Them, getting into speculative territory.
34:04
Speaker 2: Well, James Dolan, that's always a fun place to look.
34:06
Speaker 12: I mean, silver Lake owns a piece of MSG Sports,
34:10
Speaker 12: and so that's five percent. It's a ten percent stake,
34:13
Speaker 12: but probably five percent each. And when you think about
34:16
Speaker 12: someone wanting to buy into that, you would want to
34:18
Speaker 12: know how much each individually is worth. If not, you're
34:22
Speaker 12: buying into something and it's like you could be buying
34:25
Speaker 12: in at a supreme price or maybe something that's a
34:28
Speaker 12: little bit lower. And I think buyers who are interested
34:31
Speaker 12: in there have been several over the years want a
34:34
Speaker 12: want a more precise price, and so do the shareholders
34:37
Speaker 12: of MSG Sports.
34:38
Speaker 3: So what's held up the company from being split up
34:42
Speaker 3: up until now because there's been a lot of calls
34:43
Speaker 3: for the enterprise value trading at a discount to the
34:47
Speaker 3: actual value of each franchise has been there for a while.
34:50
Speaker 2: I know the answer for voting stock is from the
34:55
Speaker 2: Dolan control.
34:55
Speaker 12: Yeah, I think that James Dolan has long been the
35:00
Speaker 12: controlling person for all of these companies. He decides where
35:03
Speaker 12: for worse, yes, exactly, he decides, you know what he
35:06
Speaker 12: wants to do. And there is a board of directors
35:07
Speaker 12: that voted on this. But this would have never put
35:09
Speaker 12: up been up for a vote had James Dolan that said,
35:12
Speaker 12: you know what, maybe we should consider this, and then
35:15
Speaker 12: from there on, you know, things happen and then they
35:16
Speaker 12: vote on this.
35:17
Speaker 2: Madison Square Garden, James Stone, did they own the garden itself,
35:20
Speaker 2: the building?
35:20
Speaker 9: I believe so.
35:21
Speaker 2: Yeah, that's always a big That's always a big part
35:23
Speaker 2: of it too. Do you own the arena they plan?
35:25
Speaker 3: Or yes, in a different publicly traded company, exactly exactly.
35:29
Speaker 12: And I had a Bloomberg terminal reader and the original
35:32
Speaker 12: copy that I wrote, I said Madison Square Garden was
35:34
Speaker 12: one of the most famous in the world, and someone quickly,
35:38
Speaker 12: someone quickly replied and said, no, it it is the
35:41
Speaker 12: most famous arena in the world. So Madison Square Garden
35:44
Speaker 12: is a huge, you know, attraction. When you think about
35:47
Speaker 12: arenas in New York, there's the Barclay Center, of course,
35:48
Speaker 12: which is newer but the legacy of New York is
35:51
Speaker 12: often rooted in MSG and the events that it's held
35:54
Speaker 12: over many, many years.
35:56
Speaker 2: Yeah, I mean, first of all, and they also put
35:58
Speaker 2: in I think close to a billion dollars and renovations
36:00
Speaker 2: several years ago, so they've really upgraded the garden. What's
36:03
Speaker 2: one of the many great things about going to the
36:05
Speaker 2: Garden is they have the photos on the wall, the concourses,
36:09
Speaker 2: all the great events, whether it's a concert, a game, whatever,
36:14
Speaker 2: and there's thousands of them.
36:15
Speaker 12: There's no there's no venue that has a greater history,
36:18
Speaker 12: I would argue than Madison Square Garden that is still
36:20
Speaker 12: you know, open and operational, and.
36:22
Speaker 9: That's that's part of this.
36:23
Speaker 12: I mean, you think about the Knicks playoff end last year.
36:25
Speaker 12: You think about the Rangers and what they've.
36:27
Speaker 5: Done, not having the.
36:30
Speaker 12: Past two seasons, but in the seasons before that, all
36:33
Speaker 12: of these things. When they eventually win, you know, God willing,
36:35
Speaker 12: it isn't MSG. It it isn't one of the deals
36:37
Speaker 12: where you know they're in away game and then they
36:39
Speaker 12: have to come back. If it happens in MSG, that
36:41
Speaker 12: will probably be the biggest moment in that arena in
36:43
Speaker 12: the last twenty five years, and so whoever wants to
36:46
Speaker 12: buy into that potentially is going to want a good
36:49
Speaker 12: value at it.
36:49
Speaker 3: There is also a note from light Shed that pointed
36:52
Speaker 3: out that there's a new tax law that goes into
36:53
Speaker 3: effect for the twenty twenty eight fiscal year that for
36:56
Speaker 3: public companies limits deductions two one million dollars per cover employees.
37:00
Speaker 3: For sports teams, it's easy to find a lot of
37:03
Speaker 3: employees that make at least a million dollars a year.
37:05
Speaker 3: So once this goes through in twenty twenty eight, that's
37:09
Speaker 3: going to put the company in a negative free cash
37:11
Speaker 3: flow situation unless the Knicks, for instance, go deep into
37:15
Speaker 3: a playoff run or the Rangers go deep into a
37:17
Speaker 3: playoff run. So it also allows the company, you know,
37:20
Speaker 3: for tax reasons, to be in a better position.
37:22
Speaker 12: Absolutely absolutely. I mean there's not a lot of publicly
37:24
Speaker 12: traded sports companies out there for this reason in particular, And.
37:27
Speaker 9: You think about all of the big ones.
37:29
Speaker 12: You think about the Cronky Sports and Entertainment, which houses
37:31
Speaker 12: the Rams, the Nuggets, I believe, another soccer team, and
37:35
Speaker 12: so many more. It's private, and that's that's for a reason.
37:38
Speaker 12: But this one is unique, and Madison's square Garden is
37:40
Speaker 12: Madison Square Garden. The Nicks is the Nicks and the
37:42
Speaker 12: Rangers of the.
37:42
Speaker 3: Rangers our thanks to Randa Williams, Bloomberg Business of Sports Reporter.
37:46
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Speaker 2: providing in depth research and data on two thousand companies
37:51
Speaker 2: and one hundred and thirty industries.
37:53
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Speaker 3: go on the terminal. I'm Scarlett Foo and I'm Paul Sweeney.
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Speaker 11: Mm hm