Intel Is Planning Thousands of Job Cuts

You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or watch us on YouTube search Bloomberg Global News. Well, you know, all this week, we've been talking a lot about the semiconductor area really for the last few weeks, some concerns about the outlook, and this story certainly plays into it. We got this last night at Bloomberg exclusive Intel shares. Uh, certainly, I

think they were a little bit higher actually, Uh. And this is on the news that the chip giant is planning thousands of job cuts to cut costs and cope with a PC slow. We're talking some serious job cuts to this exclusive by her own Mark German and Debbie. We got Mark German on the line right now. He's techno Audrey Porter for Bloomberg News. He joins us from our Los Angeles bureau. If you're watching on YouTube, you'll

be able to see him there as well. So Mark, give us the details here, because, as I mentioned, we're talking serious job cuts potentially affecting about twenty percent of staff. What's going on. Yeah, So if you are an Intel employee, this is bad news. If you are an Intel Intel shareholder slash investor, this is potentially good news. As Carol mentioned, the stock is up a little bit today, so there has been some you know, benefit from this news there.

These are gonna be major cuts. I'm told this is likely to be the largest layoff to hit until since at that point they laid off under former CEO Brian Krazani about eleven percent of the company, or twelve thousand employees across the entire corporation globally. This is probably not going to be as big as that, but it is going to be something that requires some sort of major restructuring. I'm told the employee count is going to be in the thousands. Let's just face it, the PC market over

the last couple of quarters has slowed dramatically. Some of the PC may or shipment totals have you know, dropped thirty. You look at the Novo, you look at HP, you look at some of the other PC makers that use Intel processors. You're seeing a drop off there. So clearly Intel's bread and butter that's slowing down. At the same time, their profits are also shrinking, right, So it's not a good situation for Intel. Right now. They're reporting earnings on

October that's their third quarter earnings. We are anticipating about a year over year decline. Profit is down fifteen basis points right from their usual measures. So they have to do these layoffs to really try to up their profit, up their gross margins. And that's why you're seeing the positive reaction from the stock. But obviously we're talking about human beings here, we're talking about employees. This is not going to be a positive site. This is gonna be

one of the bigger layoffs in the chip sector. Two companies that compete with Intel, Micron and in Video, recently said they wouldn't be doing layoffs. But arm Right, a key technology competitor to Intel, uh an Oracle who competes with Intel on the server side, of the data center side. Uh,

they have seen some cuts recently. Mark awkward, as you point out in your story, Uh, this is an awkward moment for Intel because they lobbied so much for that fifty two billion dollar chip stimulus bill this year, and they talked about expanding chip manufacturing, semi manufacturing, uh here in the United States in particular. So not a good look, not a good book. But a lot of the damage is already done. Right. They need because they clearly have

to cut their costs. They need to do something, and unfortunately, it looks a lot like that's going to come on the human side, right, with those thousands of cuts to employees. We're actually told that a lot of the cuts are going to come in their sales and marketing group, right, And that's typically where you see cuts happen, you know, initially in these types of circumstances, Right, Marketing and sales, that's one group. It's called SMG at Intel, it's one

mixed part of the organization. We're told cuts there could come as high as twenty percent of that division, right, But in terms of the general cut company wide, that number will will be less than overall. But you know, sales and marketing. You're going to see a big hit there. Unfortunately, Hey, Mark, we got about a minute and a half left with you, and I wanted to touch on among your latest stories, this one about Apple. We talked Caroline, I talked about

this solar earlier. The company's planning to withhold its latest employee perks from its unionized store. What can you tell us about what's happening there and and put it in the context of the types of benefits that Apple does provide its employees. So three new benefits. One tuition reimbursement is now going to be tuition pre pay for some colleges, so Apple will pay in advance so they don't have to reimburse you at the end of the semester course

ERA normally fos a year for a subscriber online. That's going to be a free subscription now for Apple employees. And then the healthcare plan through United Health that's gonna get some improvements waived co pays for select doctors in reasons like New York, New Jersey, Washington State, Connecticut, and a couple of other states. Uh, those perks not coming to Maryland right In terms of the taws in store Maryland.

That's apples sole unionized store. Uh. So they're going to have to negotiate if they want to get those into their collective bargaining agreement. Uh. This is interesting timing. What's happening tomorrow. Well, voting will now begin for a second potential unionized store, this one in Oklahoma City. We'll see if this news has any impact there. Shortly. It's like another volley the back and forth with this issue. Mark German great reporting. As we mention that Intel story a

Bloomberg exclusive by Mark. Mark is technology reporter at Bloomberg News joining us on the phone from our l A bureau. And just to remind everybody's Mark pointed out to that Intel shares up about one point six percent is, as he said, not good news for several a bunch in fact Intel workers, but investors certainly liking the news that they're kind so much to this story. What's happening in the PC market around the world, and then of course

also the Chips act here in the US. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. The story that keeps on kiving and it isn't quite over yet. We're talking about Elon Musk's pursuit of Twitter and this week in the upcoming issue a Bloomberg Business Week magazine, the cover story is about Twitter and how it faces only bad outcomes if Elon's four billion dollar deal closes. That piece

by Kurt Wagner. He's technology reporter for Bloomberg News. He joins us on the phone from San Francisco this afternoon. Also with us as Joel Webber, the editor of Bloomberg Business Week in the Bloomberg Interactive Broker Studio. You can follow Joel on Twitter at Joel Webber Show and Kurt Wagner at Kurt Wagner eight. Hey, Kurt, I want to send it over to you to start with this afternoon. So you can't want it's like you win. It's it's

like there's no good outcome. Here is my big takeaway from your story because the company has been so beat up over the drama, and if it goes through, then what does that look like? Yeah? And and that's you know what we've been talking about for a couple months now, is that you know what is the end result here? And and and I think it became apparently abundantly clear. Excuse me that, Uh, no matter what happens, you know, Twitter,

the company is in for a crazy ride. And you know, if Elon gets Twitter, as we are starting to expect, you know, that's going to lead the layoffs, cost cuts, UM going to rescind a lot of the rules around speech and and misinformation is the expectations. So you know, suddenly this service that's incredibly important is going to look and feel very different. Um and and the company is going to look until different. Now for some reason, that

deal falls apart. Uh, Suddenly you still have a company that you know has spent the last six to nine months just in total chaos, and they have to kind of pick up and try and pretend like nothing ever happened. And I just don't think that that's realistic either. So you know, the story was meant to kind of give people a glimpse into what the Twitter employees are feeling right now, which is a lot of which is a

lot of chaos. Tough place to be in. Joe Webb or the editor Blooberg Business Week magazine also with us. First of all, can I just say the cover and you made Ellen nice pecks there. Yeah, he's got some good biceps too. So we've been talking about this for for months. You know, it's obviously probably the one of the biggest business stories of the year, and and I'm curious.

You know, one of the things that um uh, that you had in here was even some new stuff about you know, what the employees really felt about their potential new boss. So so take us, take us there and sort of the these uh, these slacks that you were able to get. Well, there's there's two scenes that are

in the book. The first one is from early Elon showed up at a Twitter off site with the entire company and he complained about bots, and um you know, at that point, everyone kind of just sort of shrugged it off, like here's just a popular user who has an issue. Fast forward two and a half years and suddenly Ellen is still complaining about bots. But now, you know, when he addresses employees and in all hands in June,

the vibe is very different, right. It's it's no longer here's this outside kind of tech celebrity showing up to give us advice. It's here's the new boss starting to you know, lay down the future of the company. And employees were not happy. You know, he alluded to layoffs, he alluded to other cost cuts, maybe getting rid of remote work, which a lot of people on Twitter have really come to enjoy, and so on slack. They're basically mocking that they're soon to be boss as he's speaking

to them. You know, there's things like, hey, is it too early to get a drink? Like this guy doesn't know what he's talking about, and you know that just gives you a sense of like how unhappy a lot of Twitter employees are with this right that they would openly mock kind of the new boss um during the opening Q and A with with staff. And I just think this is only going to get worse from here, because there's a lot that's happened in the last couple of months to make him even less attractive to a

lot of Twitter employees. Okay, so what you he ends up? Let's say he has to cut this check forty four billion dollars, right, like, don't bounce that check? That that would be unfortunate. Uh he's uh, he becomes you know, owner of Twitter after all of this. What what chess moves go down from there? Do you do? Do we think Yeah, I think there's a few things. Um, First and foremost, I imagine he's gonna put in or probably

put in his own executive team. He's he's been pretty open that he has, you know, no faith in the current leadership at Twitter. We expect that CEO Prague Agawal will probably be out. Um. Also the top lawyer, Vigid Gotti, will probably be out. So you know, there's gonna be new new people at the top of this company. And then I think the other thing is, you know, he's talked a lot about wanting to bring quote free speech back to Twitter, right, And what does that mean. Well,

for starters, that means reversing permanent bands. So we might see President Trump back on Twitter quite soon. We might see other people who have been banned back on Twitter. But I also think he's you know, it sounds like he plans to get rid of a lot of the rules around harassments and hate speech and misinformation that Twitter has been building over the last couple of years. That's going to have a huge impact on just the vibe of of what it feels like the scroll through your

Twitter timeline, right. And I don't know exactly how quickly all that stuff can be unraveled. But I imagine, um, you know, it might feel very different to people in the next couple of months. That's a really interesting point card. And that's when I really wanted to hit on because there is a you know, there's got to be a portion of people who think that this is a good thing.

I've seen it play out on Twitter and you see a lot of people say, wait a second, this is a good thing for Twitter because you know, this is going to be more about quote unquote free speech. So what else does it look like on the other side of this if this does go through, does it actually attract more people, doesn't become a more attractive platform? Or do those protections that must potentially takes away or could

take away? Does that hinders people, hinder people's experience on it? Well, you know what's funny is, um, there was a time, probably three or four years ago when Twitter was still very much struggling with all of this hate speech and harafsment stuff, and there were people leaving right like, hey,

I don't want to be on this health site. I don't wanna you know, there's a there a lot of mean things said about Twitter, and people were saying that they were leaving, right, and then Donald Trump got this band and people said, well, now everyone's gonna lead Twitter because they banned President Trump. And in both cases, the numbers didn't really reflect either of those things. Right, Like it was, it was mostly people complaining about this, but

the majority of user stuck around. Now in this case, I think that's probably the same thing that's going to happen. Right. There will be people who are happy to see some of these rules rescinded, some people will be very sad, but for the most part, I imagine most people will probably stick around, at least in the near term. Hey, Kurt, one thing I'm curious about too, though, is you know Elon Musk has a lot on his plate. Well the ultimately how you know, have a deputy really you know

running things that Twitter. How do how do we anticipate in my play out? Yeah, this is this is still

an unknown. Um. You know, I mentioned that I think the current executive team is probably going to be out the door, But who does he bring in to run the day to day It doesn't seem really feasible for him to do that considering his responsibilities that SpaceX and Tesla as well, um, But one thing he did tell employees in June and that we mentioned the story, is he said he doesn't really care much about ales like you see the CEO is he something else? But he

wants to make the decisions. He wants people to listen to him. You know. So I do think he's going to be pretty involved, at least in the direction of where this company is going now. He is he the one who's going to be, you know, answering emails UM all day about product tweaks. I don't know. It seems unlikely, but he does claim he wants to be heavily involved here.

I love the last line of your story. Bad. I guess what what title or role Musk will be and he says, I don't really care what the title is, but obviously people do need to listen to me. Right, Who's in charge of the new guy? Alright? Great story. It is the cover story of the new issue of Bloomberg Business Week, which will be out on newstands tomorrow online already at Bloomberg dot com slash business weekn on

the Bloomberg terminal. What what's the over under on whether or not that title has the letter X in it? Something that he's just totally obsessed with, you know, X it's a whole new dimension for where where Ellen could go here and like, you know, you thought Mars was the last one, so oh my gosh, and it ain't over yet. Where are the final friends? All right? Oh? Thanks to Kurt Wagner, Bloomberg News Technology reportn of course,

till webber a Business Week. This is Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. We just talked about airline or I did airline stocks release? Amount performance today? The rally and American Airlines alone up again and up around five percent in the past two trading days. The US carrier yesterday lifting uh. It's forecasting its guidance above prior guidance. American officially reports

next week, so does United. Meantime, we've got Delta reporting tomorrow. All right. For a roundup of what to expect from airlines and already what we've heard, we turned to Colin Scarola, equity analyst at cfre A Research. Collin joins us this afternoon on the phone from New York City. So Colin is Carol mentioned we've already heard from a pre announcement from American Airlines. Um, what does that tell us what we learned from American yesterday, what does that tell us

about what to expect across the wider industry? Well, thank you for having me first of all. Uh, specifically as it relates to Delta's earnings released tomorrow. I think what the American numbers tell us is that pricing across the industry, ticket pricing, it's held up really strong. We haven't seen that anyone who's trying to book a flight anywhere realizes that, right. I mean it's like we're trying to decide if we drive for Thanksgiving or or fly because it's so expensive calling, right.

And I think what what a lot of sort of industry watchers were expecting was that that big springway of booking would drive up the prices, but then they would start trailing down a bit over the summer. But it's been you know, from American standpoint, and I expected to be the same for Delta tomorrow. It's been great for them to see that the pricing really isn't coming down, because maybe they're seeing a little bit of trailing down in domestic but as they bring those international flights back.

You see the brand new that first big booking way bidding the international markets, and that's keeping I think overall pricing very strong. I feel like everybody, Colin, right now is going overseas. I mean, I hear everybody talking about we talked about Kati Griffield cheese overseas right now. Everybody seems to be probably listening right now because she just can't take the break she's getting about. But Colin, what I'm wondering is, so, what are the big macro dynamics.

Is this just a case of people who were stuck in their homes during the pandemic buying stuff they probably didn't need, and now they're going out just kind of enjoying life and being back to normal and experiencing things. Is it that? But is it also reduced capacity, reduced workers? And so it's just kind of supply demand dynamics at work in the airline industry. Yeah, it's a little bit of both. So you get you get unusually high demand with unusually low supply, and that's where this sort of

increase in pricing comes from. Relative to and just a few anecdotes, I think we have a record number of weddings happening in the US this year and next year. You know that that's the type of thing that's driving that leisure travel demand, plus the vacation demand getting to Europe wherever it might be that people used to love

to go. And then what was good to see for the industry is we saw we saw the consumer and the households have that huge pent up demand streak this spring and summer, and I think now we're starting to see it from businesses as well. Um, you look at a lot of the accounting and consulting firms who used to have people out on the road working at client

sites four days every week. You know that sort of Monday morning Thursday night travel routine that seems to be coming back in a pretty big way now this falling into this winter. So what started with the pent up demand on the consumer and leisure side that you know, it's still strong, it hasn't on its course, It's still very strong, but it's it's certainly not growth anymore, I don't think. But now international and business are starting to see that same sort of big pent up demand waves.

So overall, very good things for the airlines, and they look like extremely cheap stocks to me, generally, that's interest how strong demand is Colin? Do we ever do we ever see business travel resumed levels? And I asked because friend of mine is an event planner for for company. She plans conferences, and she was saying, it is so much more economic economical to do these virtual conferences. The lead generation that we get per cost is just so

much better, it's so much lower. And she's like, I don't see us ever going back to, you know, what we were doing before the pandemic because it was just too expensive. Yeah, it's tough to make a call on that. I hear. I hear piece of information like you just relayed, But then I also hear from a lot of surveys on businesses that you just can't replace face to face interaction. And I think my my view tends to lead towards

that it will come back bigger than it was. Um American Airlines specifically, they reported on small and medium business revenues they were actually up in the past Q two. So already small and medium businesses seem to be putting in greater demand for air travel than they were before the pandemic. And uh, it's not a given that corporates. You know, the larger corporates will follow that same track.

But I certainly think that's the most likely outcome, just because I think people want to get back to seeing their clients and seeing their coworkers. Hey, hey, Colin, not to be a Debbie downer, and just got about thirty seconds. I just want to squeeze in if we go though to a downturn, or maybe we're already in it, but if something protracted happened certainly into next year, are the airlines in good shape to weather it? And again, just

got about thirty seconds. Yeah, I think a recession would not get the airlines as acutely as it as it has historically because of the pent up demand factor. So the recession, in my view, it's it's hitting goods producing industries, whereas services like air travel mold up pretty well because there's that natural offset from the pent up demand. All right, Well, good to know, hey, Colin, Thank you so much. Colin Scarolla, equity analyst over at CFR A research on the phone

in New York City. Don't forget American United next week in delta reporting tomorrow, I believe in the morning. And uh yeah, I gotta get those tickets for Thanksgiving cotting close. We're gonna be driving. This is Bloomberg. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes

Tim Stinovic on Bloomberg Radio. Shares of PepsiCo they are rallying today and that is on the back of what we got from the company lifting its outlook, drink snacks sales, bucking inflation meeting, the company still able to hike prices to battle inflation. So, uh, it was a strong quarter. It was, um and to help us understand what specifically was strong about it and how we can read into Petser's results for other companies, We've got Gerald Pascarelli joining us,

Senior vice president of equity research at Webbush Securities. Jail joining us on the phone from New York City. Good to have you with us this afternoon, Jail. Really appreciate you taking the time. Um, what do we what did we find out from Pepsi about the strength of the consumer because they were able to raise prices and people paid. Thanks, first of all, thanks thanks very much for having me, uh send me on the show, and um, yeah, it was it was it was a great earnings from Pepsi UM.

I think that when you look at UM the leading trends heading into earnings, which are typically going to come from from Scanner Data, Nielsen or I R I, what you saw UM was just a continued strengthening of growth across really cold beverages as well as snacks UM with three lay in for Pepsi that accounts for over their total company profits and UM. The salty snacks data has

has just been fantastic UM. They're they're back to gaining market share and they're actually in Scanner Data doing over twenty points of price UM and so we we thought it was going to be a good print. They delivered a good print. And what you really saw was was price led revenue growth across most of these segments UM, which is really not only driving a strong top line, but it's helping to protect against these outsized levels of commodity implation UM. And it was really strong across the

board when you look at all of their segments. I just to make sure I heard right, Freedo Lay and PepsiCo. You said the profits you talking about PepsiCo, that brand and then it's Friedo Lay brand. So Freedo LAY is a segment, is a segment with that that Pepsi reports on, and that's that segment. In particular, Freedo LAY North America is of total company profits, so it's meaningful. Um, it's

it's the biggest profit driver. And when you're getting twenty points of price mix um, and they actually reported twenty points of price mix um, which is which is kind of in line with what we've been seeing in scanner,

you're gonna have good profitability. Okay, so so far, so good in terms of raising being having the ability to raise prices, prices as you know, the macro conversation we often talk about, you know, the FED continuing to raise rates, the prospect of recession, what kind of recession it would be,

How how much more can PepsiCo do something like this? Yeah, I think that as of right now, UM pricing remains robust and the volume elastic the demand elasticity, so the volume impact has been relatively muted, which is which is encouraging. I don't think anyone's expecting this strong double digit pricing

to persist. And if you kind of look at where UM consensus estimates were for heading into the quarter, they're expecting the normalization UM to the mid single digit range, and so I think, UM, you know, as as you get more through the fourth quarter and then into three, you'll you'll likely see a normalization in this pricing, which in turn should result in some better volume throughput as

part of the revenue algorithm. UM. But as of right now, UM, you know, these are essentially lower price needs based products UM, which is which is one of the benefits in the current environment is that UM consumers need these products UM, and they're relatively low pricing. You can generate UM pretty meaningful price mix. Hey, Jared, what about when it comes to Coca Cola and what this means for Coca Cola, Because there's no Freedo lay equivalent at Coca Cola, there's

there's not UM. But encouragingly, I did mention Friedo as as as as a segment that was delivering strong pricing. But there perhaps he's getting strong pricing in in cold beverages as well. And when you look at some of the transferred for Coke, UM, Coke's actually getting the best price mix because they are the market leader within carbonated soft drinks, which is the most important category for them. So I think that this is definitely a positive read

on Coca Cola. UM, even though they don't have a snack segment, we would expect this strong pricing that we've seen for Pepsi to to persist with cokes as well as carried dr Pepper UM. One thing to note about Coke, the shares have definitely sold off. UM. I know there was you know, broad market pressure over the course of the month September, but these shares did sell off more so than some of the other non alcoholic beverage peers, and that's largely due to currency um and some concern

around the European consumer. Um. I'll just right the audience said, you know, Coca Cola is six international. Now it's yeah, we have to think about the global component, the currency component when it comes as something like Coca Cola, which is up by the one on the back of that PepsiCo news. Joe Pascarelli of Wedbush, thank you journal. Yeah, but you let me drive? Oh no, no, no, home honey, please, I'll do vels. I want to drive. Good question. This

is the Drive to the Clothes on Bloomberg Radio. I gotta love on this at f O m C minutes day, we're watching markets bounce around and getting ready for inflation print and you know what we're talking about, Natie Murphy. Yeah, you know, a little blast from the past. But we're really pleased this afternoon because we've got Victoria Green. She's chief investment officer at she Squared Private. Well, she's with

us right now in the Bloomberg Interactor Broker Studio. Interviewed you like a dozen times, never met you in person, Victoria, So welcome back to New York. It's good to have you here. What brings you to the city. Uh, some of it was just to do a little bit of work and have a couple of meetings, and then obviously I hadn't met a lot of them, my Bloomberg friends in person, so I want to come say hi and and meet everybody. So it's been great. By the way,

you're free snacks, amazing goods here. They're really really good. But we have to work now, unfortunately, but you're almost done. You're almost dead. Um, give us some clarity. We got fed minutes today. A reminder, no pivot, They're gonna keep raising rates. Um. We did see some bounce off the lows in terms of equities, but we're really little change ahead of the inflation print tomorrow. So how do you look at this market? What's a constructive conversation to have

right now? I think it's too early. I still see some downside risk. I think the print too early for a pivot, too early for a pivot. I actually have been saying the pivot is dead. So everybody that's hopeful for a pivot, it's like wishing for like that sold out toy on Christmas, I really don't think you're gonna get it. Like, I'm sorry, I wish I had better news, but I don't think it's coming. At some point, they're

gonna pivot. It's sometimes they're good. It's some pot. They're gonna stop raising rates, rights they cover somehore in the Dallas Cowboys are probably gonna want the Super Bowl again. Are you saying you never expect the fedot? Like, actually, it's a good question. It's also a good question. I think for people who are thinking about buying a home right now, they say, Okay, well I get locked into thirty year mortgage. Interest rates are going to be high forever,

so maybe I could refin in five years. But is this the new normal? No? I do think so. If you look at what the FED funds features are pricing in it's it's comes down rather rapidly in twenty four So I think though nothing this year. You know, they talked about we we did, we rather do too much than too little. I think very shortly they're going to have to switch from we need to do too little not too much because this delayed reaction of the FED,

which is I feel like the momentum was there. I think that was in the FMC minutes today that they're more concerned about doing too little rather than too much. Yeah, and at some point they're gonna be much more concerned about, hey, we did too much, we need to back off. I don't think we're there yre, That's that's my thesis. We've

got a little bit more downside. The Fed's not bailing us out, you know at some point, and that it was a little Machi Valley and how we rallied on the UK problems that we had because everybody said, oh it's gonna get so bad. It's good. We're just not there yet. We have the data points from labor markets still too tight. PEPSI came out with great earnings like they're stress, but there's not. Inter came out and said it's cutting thousands. They are, And the text sector is

one of those that we say avoid right now. Like look at the chip market. You know for months now, Oh it's attractive, but then you did keep getting bad news on bad news on PC sales and uh, you know in that that sector, like just because of stocks down doesn't mean it can't go down another thirty And you've got so many macro headwinds. Okay, So what's an investor to do in this environment? If if you're saying the pivot is dead, it's too early for a pivot

at this point. Um, when do we see a bottom here? It's thirty four to thirty two. I don't think we're that far off, but mostly because the multiple earnings have remained rather robust. I don't think too forty is kind of the average street for next year. I think that's still a little bit too high. But even if we're flat at gets you fifteen sixteen handle, that's not a bad place to be looking. But stay defensive. The biggest thing an investor can do is don't panic or don't

need jerk on data. We've seen wild moves off of some of these data releases or FED moves and and a lot of times it's a one or two day move and comes back to trent. So I would say, like one day, one week does not a market make like be a little bit patient. Uh. And then if you've got equities now unless you're worry you have a zombie or something that's going to completely blow up, um it really just hold onto it. And we talked to

a little bit. Cash and liquidity dividends are great right now you've got tara versa tino because you are have all so you wouldn't be living in aggressively into cash at this point. No, No, I think you gotta you know, no one to hold them, no one to fold them. At this point. You got to hold unless you have something that's a credit risk or blow up risk. What's

a credit risk right now? I mean talk about the Wrestle three thousand and some of the zombie companies in there, or I would say, not not to pick on Cathy Wood, but some of the art fun like the innovative stuff, the cool stuff that did so well so long right now, Typically smaller companies, higher leverage, no real earnings, and they're keeping raising capital. That's that's not a good place to

beat during times of stress. You want quality, you want cash flow, You want to balance sheet that can resorb some problems, which is why you like Costco. And you you several times have come on and you say you like Costco And I was just looking up it like down seventeen percent this year, but I think it's had a nice little bounce from it's recently low, up about thirteen or so. So the big reason, sorry, I was

just gonna say the correct. So I like them. One they make about seventy their revenues from the US, and then they're there. They are international, but the remaining like most doority in Canada, which the problem a little bit dollar problems to all of this inventory problem that Nike and Amazon and everybody have benefits a story like Costco because they're happy to buy things cheaply from Nike and resell it at Costco. They're not beholden to any brand

other than the Kirkland brand, which is amazing. Um, but but you know, so they have this purchasing power that other companies don't have. So Nike has to sell, Nankie has to get their things off and so you have a company like Costco that can buy some of the inventory pretty cheap and then resell to their members. They have such a loyal member base they do, and then when you're looking to stretch your dollar, buyer secia economic to higher like in terms of their consumer I gotta

tell you this is not like Texas, Victoria. We don't have room for like, you know, two d rolls of toilet paper in our apartments in New York City. So we're not the Costco shoppers. I figured you guys learn earned from the pandemic, Like you would have a toilet paper. He's got a basement of toilet paper. So if you ever run out, I did have a solution. That's a different show. Hey, let's move on to United Healthcare before this gets too crazy. Why are you on United Healthcare?

First off, they have some great pricing power. I mean, anybody who's about to re up their insurance premiums next year, you know, they have this ability to say we made record profits, but but no, they do. They got pricing power there there. You know. Again, they have a lot

more in the US. I also think technology was with some of the acquisitions they've done, they are looking at other parts of the market getting into the pharmacy and the telehealth and um, you know that's a little bit like Teledoc used to be the darling, but then you have the big boys getting into it and they're developing their own program. I love that you still love energy. I mean it's hard not to if you look at the super mega uber out performance of energy this year,

and it just kind of continues. Shanira is one name. Just got about twenty seconds. Why that name up sixties six percent so far this year. Sorry, Shinny oh sneers great so l G exporting. We're gonna win what Russia loses. So they're about they have the biggest ports while round company. Uh and they have the ability to expand, so as Russia box out Europe looking for natural gas, they're they're

are the best position. They're also very very well run company and they have the biggest sports and terminals to get it up there. Great stuff. So fun to have you in town. Come back soon, say travel's home. I'm just gonna go back to Texas. Victoria Green, chief investment Officer G Squared Private Wealth, here in our interactive broker studio.

Thanks for listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg dot com, and you can also listen to our radio show at two pm Eastern on Bloomberg Radio or watch us on YouTube search Bloomberg Global News