Bloomberg Audio Studios, podcasts, radio news. Single best idea on a day I have never seen. There's no other way to put it. CEOs come and go. When everybody wants to say to me, when did you lose money? This is not funny. There was a CEO of a company I owned who had a significant coronary event at a small airport in Chicago, and to be honest, I sort of sold every share the day of that tragedy at O'Hare because six months later the company was in massive
disarray and I'm not going to mince words. I lost some money, to say the least. There are times where you see a shock of a CEO impact, and so the Chipotle CEO down fourteen percent, goes over to Starbucks up fourteen percent. Whatever the number is, up twenty percent. Let's use the word number twenty So you have a thirty four percent swing in stock performance off a CEO. Jody Lurie of Bloomberg Intelligence is expert on this, and she knows when there's activist shareholders involved debt beware.
We are still sort of trying to figure it out. But usually when there's activists investor involved, you don't really think that's a good thing for bondholders. The company worked really hard to get leveraged down to three times and actually below three times, but now the expectations are that leverage is going to hit at three point four to three point five times by the end of their fiscal year,
which in September, and that's partially because of margins. But I think we do have that sense that that twenty billion dollars that they plan to give back to shareholders over the next few years, it might it might get ratcheted up, or they might get more aggressive in other ways, or they might look to spin offs. I mean, who knows what's on the table. All we know is that there might be a potential additional board member from Elliott Management.
There might be all sorts of changes that changes from that stable sort of cash generating Starbucks that we know.
Jody Leuri, Bloomberg Intelligence, and Starbucks' story clearly to unfold in the coming days. On the way that the average cost the Capitol screen, the WACC screen in the Bloomberg twenty two percent debt, don't hold into that, but I think that's what the statistic is. Twenty two percent. One of the great joys of our wonderful studios with their glasses. People wander by and I'll usually try to beg them to come in, and many people say no, they don't want to talk to me. We are honored today that
Rubinstein would stop by for a few precious moments. Of course, with the Carlisle Group his ownership of the Baltimore Orioles here first. David Rubinstein on the travails of private equity.
Private equity has been around for a while. It's taken longer to sell assets than it normally does. But as interest rates come down, almost certainly they'll come down in September. I think it'll make it easier because the gap between buyers and sellers will, I think, be reduced, and buyers can afford to buy things more readily than they could when higher interest rates were part of the situation. So I think private equity is okay. I wouldn't cry for
private equity. I think that private credit has also grown very large and become a very important part of the private investment world. But private equity is still a very important part of the global investment scene, and I don't think it's going to change very much.
David Rubinstein and private equity and to see the Vicks folks just to review this under twenty today to a nineteen level as we tape here at roughly ten am
on Tuesday morning. But the ride of the last number of weeks, the resiliency of this market is both David Rubinstein and Barry Rudtholtz talked about, is just shocking to see us go from a Lehman thirty angst or the panic of last Monday, that Paul Sweeney report of a fifty something meter VIX and we're now down under twenty with a nineteen print in the vicinity of up one percent for the NASDAK even one and a half percent for the Nasdaq. Of course, with David Rubinstein here, you know,
I mean, I'm sorry. The Chicago White Sox absolutely crushed the dreaded Yankees. David Rubinstein and the dreaded Yankees of the Bronx in the Jewel of Camden Yards.
Well, the Oriols and the Yankees have been chocking for first place in America in the East for most of the season. They both have excellent teams. We'll just have to see who does well in September and the remainder of August but I think both of those teams are likely to be in the playoffs. In my view, Yankees have some extraordinary players in the Yanks, and they also have some extraordinary players.
Their ability to lose to the Chicago White Sox. I don't know if your team is briefed you, but the White Sox snuck by the Yankees last night. That would never happen to the Baltimore Orioles.
Well, we've lost some games, and I didn't think we would lose. But on the whole, oh, I would say the Orioles and the Yankees are really in good shape for the playoffs. And I don't know who's gonna win, but I hope the Oriols do.
Of course, he's been doing this for a cup of coffee, a cup of Senka, or a cup of Starbucks for that matter. David Rubinstein, grizzled, owner of the Baltimore Orioles. He's got the thing. He's got it down cold. It's like he's out there, you know, outside the dugout with a mic and his mouth saying, you know, well, we saw the ball. I could see the ball big today. It was great, you know, David Rubins, I thank you so much. For time. Today they're in private equity in
the Baltimore Orioles. John Ferrell emailed me to these says, what are you doing on Instagram? Here's what we're doing, folks. I'm trying to do the social media I'm learning, and trust me, it's been painful. But what we're doing is all based on YouTube. Their impact around the world and particularly in Asia, from India on over up from Singapore to Japan. We are thunderstruck by the international response are getting and we're building that out. It's on Instagram we're starting.
I'm learning. I don't pretend to have all the answers there, that's for sure, but don't forget we are on YouTube. You go to YouTube, you subscribe to Bloomberg Podcasts. Can't say enough. That's the most important thing you can do to keep our conversations going on Apple podcasts single best I do