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17:55
PDT

Social isolation linked to remote work may impact productivity.

– Unpaid internships can provide valuable experience despite financial struggles.

– The value of an MBA is subjective and depends on individual circumstances.

– Women face unique challenges in leadership and wealth creation.

– Mentorship and opportunity creation are crucial for underrepresented groups.

remote work impacteducation and internshipswomen in leadership

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We go, we know that people don't really want to hear this. Think about what's happening in the world: declining birth rates, declining marriage rates, and a loneliness epidemic. And we think that none of that is linked to the number of people that don't see people because they're doing Zoom calls from the living room. Like, it's so crazy to not make that correlation. The key to a long and happy life is your close relationships. Should the unpaid internship be brought back? Listen, I did a lot of unpaid internships, and I did it while being somebody that didn't have a lot of money, and that was a real struggle for me. It was a huge unlock for me, the ability to go into an organization and get under the hood without having any qualifications or right to really be there. I think that there have to be certain protections on it, but I'd like to lift the lid because there's so much to be learned. MBA, worth it or a waste of money? Depends how much money you've got. It wasn't my path. Listen, I am a mother of four, and so the idea that any of my kids were going to do an MBA would be an absolute dream. But would I force it on them? That's like an individual decision, and if you can then do it. If you can't, don't sweat it. Emma, thank you so much. Thank you so much. What a joy. That was so fun. Thank you. It flew by. It's 7:15. I know. I'm like, what happened? I'm like, oh, it's out of good. It's a peel! Bloomberg Tech, live in San Francisco with Emily.

Analysis

The discussion highlights the impact of social dynamics on career success, particularly for women, emphasizing the need for opportunities and mentorship. The speaker reflects on the value of unpaid internships and the relevance of MBAs, suggesting that personal circumstances dictate their worth.

Smart money should note the potential shift in workforce dynamics as remote work contributes to social isolation, which may affect productivity and innovation. Additionally, the conversation around education and internships indicates a possible reevaluation of traditional career pathways, which could influence talent acquisition strategies in various sectors.

🔍 Bloomberg 🔍 Emily 🔍 MBA 🔍 Bloomberg Tech 🔍 San Francisco

17:53
PDT

Innovation is key to customer satisfaction.

– Brands with strong heritage maintain desirability.

– AI is reshaping business operations and planning.

– Understanding customer needs is crucial for success.

– Staying relevant in a fast-paced market is challenging.

product innovationbrand desirabilityAI integration

▸ Full transcript

The thing that I've learned is that good products will always win. And so what I, you know, I don't let that side of things keep me up at night. What keeps me up at night is coming up with a new innovation, constantly delighting and pleasing our customers and coming up with things that they don't even know that they need. Is there a brand that you admire more than others? Oh, my goodness. There's so many brands that I admire. We just spoke about LVMH. But like Louis Vuitton, you know, I always look at that brand, because it's so hard to stay that hot all the time. And, you know, even when I think about a brand like Chanel, you know, it's like, it's a brand that I have always wanted since I was 10 years old, and I want it even more now. You know, I'm like constantly texting to figure out when I can get this latest collection. Like, when does it hit the store? How do I not miss it? And I really admire brands that have that type of stay in power, coupled with that type of heat. That's a really, really hard thing to do. And of course I would say brands in fashion, but I don't know enough about other spaces. I'm of course enthralled by what's happening in AI at the moment and I feel like I'm like everybody else. I'm just trying to keep up and trying to make sure I understand and trying to make sure that I'm using everything at my disposal. Do you think it'll change your business? It is changing our business already. Is it? Yeah, unsavoryly. Like unsavoryly in terms of hiring or... I think mostly in terms of like how we are planning the business. So when you think about inventory needs, customer data, the way that AI is able to get in.

Analysis

Good products will always win, and the focus should be on constant innovation to delight customers. Brands like Louis Vuitton and Chanel exemplify staying power and desirability, which is increasingly challenging in today's market.

The integration of AI is already changing business planning, particularly in inventory management and customer data analysis. This shift highlights the importance of adapting to technological advancements to maintain competitive advantage.

🔍 LVMH 🔍 Louis Vuitton 🔍 Chanel 🔍 AI

17:51
PDT

Talent is evenly distributed, but opportunity is not, especially for women of color.

– The speaker feels a responsibility to create opportunities for others.

– They possess a strong ability to identify valuable business opportunities.

– Today's consumers are more informed and expect value for their purchases.

– Investing in female founders could reshape market dynamics.

female entrepreneurshipconsumer behavior

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When I look at the landscapes specifically for women, specifically for women of color, I think that talent's fairly evenly distributed, but opportunity isn't. And so when I look at the ability that I have to create opportunity for other people, that feels like a responsibility for me. Not in a super worthy way, but in a way where it's like, wow, there's a lot of great stuff out there and I've done really well putting my money into other female founders. So I actually think there's this whole part of what I'm doing that is part lifting the lid, part giving opportunity, part bringing a bunch of people into a conversation and into the business climate that might not otherwise be doing it, and really they should. Are you good at identifying? I mean, you seem very good at it. I'm really good at spotting things that well. Is it a difficult talent? It's a difficult time, and listen, I think there's a part of me that says, well, that sounds easy now because my deal flow is so good, but I was good at it even when it wasn't. I'm good at spotting opportunities. I think like a customer. You know, I am my own customer in so much of what I do. I have a terrific sense of value on what something is worth. If you buy a pair of jeans from me for $149, they're going to be worth like every $149 that you pay for them. Is a customer of today radically different from the customer of 10 years ago? Customers are so much more informed, and there are no barriers to what you can get, where you can get it.

Analysis

The speaker emphasizes the disparity between talent and opportunity for women, particularly women of color, and expresses a commitment to creating opportunities for others. They highlight their ability to identify valuable business opportunities, suggesting a shift in consumer behavior towards more informed purchasing decisions.

Smart money should note that the speaker's focus on empowering female founders could lead to a significant shift in market dynamics, as more women enter the entrepreneurial space. Additionally, the evolving consumer landscape indicates that businesses must adapt to a more discerning customer base that values quality and worth.

🔍 female founders 🔍 women of color

17:48
PDT

Women often face social conditioning that discourages wealth creation and leadership.

– Imposter syndrome is less frequently acknowledged among male entrepreneurs.

– Early intervention is crucial to empower young girls in their career aspirations.

– Understanding these dynamics can lead to better support systems for female leaders.

– The narrative around female entrepreneurship needs to shift to focus on capability rather than doubt.

female entrepreneurshipimposter syndromewealth creationleadership opportunities

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A few hats. I think what I've realized as I've become more successful is that wherever I go, people ask me the same questions. They always say, you know, how did you do this? And I don't think people are that interested in me. I think they want to understand how they can be successful for themselves. I'm really trying to lift the lid and demystify what it means to have a successful career and to start a business and to scale a business and what it means to sell or IPO a business, and specifically through the lens of a woman, because I believe that there is social conditioning that actually makes women avoid the exact behaviors that lead to wealth creation, that lead to success, that lead to leadership and opportunity for us. What do you think actually doesn't serve female leaders? Because it starts from a very young age. How long have you got? We have a lot of time. I need to get these girls like when they're 10, 11, 12, you know? Because a lot of it is what we carry. I don't know that the idea of imposter syndrome even exists when we talk about male founders, male entrepreneurs. Why would we be talking about it so frequently for women? I've heard male entrepreneurs. You have? Did any of them say yes? I had it? Yes. Really? I've never heard one. And then they say, look, I looked around the room and I thought, actually, if they can do it, I can do it. I can do it. But the same sentence said by a woman carries a different weight. And I have seen certainly in my own career this notion of imposter syndrome.

Analysis

The speaker emphasizes the need for women to overcome social conditioning that hinders their success in business and leadership roles. They highlight the disparity in how imposter syndrome is perceived between male and female entrepreneurs, suggesting that women face unique challenges in their career journeys.

Smart money should note that addressing these societal barriers could unlock significant potential in female-led ventures, which may lead to increased wealth creation and leadership opportunities. The conversation underscores the importance of fostering an environment that encourages women to embrace their ambitions and capabilities.

🔍 Bloomberg 🔍 San Francisco 🔍 IPO

17:43
PDT

Failure is a common experience for entrepreneurs, and learning from it is essential.

– Women entrepreneurs face greater scrutiny than their male counterparts when they fail.

– Conducting a thorough post-mortem analysis can reveal personal patterns contributing to failures.

– External market conditions are not the only factors influencing business outcomes.

– Self-reflection is necessary to identify missed opportunities and insights.

entrepreneurial failuregender bias in business

▸ Full transcript

Grown companies and then had to downsize them, and those things are really painful. Right now, we only show the glossy side, the amazing things, the great headlines, the stuff we want to put on our Instagram, and the reality is anyone who is an entrepreneur that's done multiple things will have failed, and you have to get comfortable with this idea of not everything working out. It's not always that you did something wrong; it's that this thing in this time, this situation didn't work for a myriad of reasons. So long as you figure out what those reasons are and what you learned from it and what you will do differently next time, then that has to be left behind. And I think that if you look around in the culture, that is way harder for women than it is for men because women are held to an entirely different standard when they start things and they fail. And yet we have men that fail over and over again and close it down and go out and raise the next day, and nobody mentions anything about it. So once you have a failure, do you do a post-mortem to see what went wrong? Do you work with the whole team? I tell you, it's like spreadsheets. Absolutely. And you really have to understand what you do right because I think it's easy to point to the market and conditions. It's easy to look at all of the things that were outside of your control. But often there's a pattern in these things, like that you are a huge part of. And so I really try to, you know, and I hate to go whoo-whoo. You kind of have to go inside. You have to understand like what is there that I missed and what is it that I didn't see?

Analysis

Entrepreneurs often face the harsh reality of failure, which is more scrutinized for women than men in the business world. Understanding the reasons behind failures and learning from them is crucial for future success, as many factors can contribute to a venture's outcome.

17:41
PDT

Cultural timing is crucial for business success.

– Inclusivity in fashion is becoming increasingly important.

– Many entrepreneurs struggle with fear and uncertainty.

– Successful partnerships develop over time.

– There is a market gap for support in entrepreneurship.

cultural timingentrepreneurshipinclusivity in fashion

▸ Full transcript

Work when what's happening in the culture chimes with whatever you're doing, and I think at that moment, when you go back nine years ago, the idea of body positivity and what it meant to do real inclusivity in fashion just wasn't what it was today. And so I think that whenever you're starting something, it's like this melting pot and a smorgasbord of small decisions and the right thing in the culture and the right moment in time, and you being the right person, and some element of magic has to happen. But there's never like this bingo moment where everyone goes, 'Yeah, let's go.' Don't you have to, I mean, you said you had to sell your idea, right, at some point? Yeah, but you know, like yes, we're in to sell an idea that is like that good. You know, it's like there's an idea and then there are people that decide to jump on board. But you know, again, I think it feels more like a fantasy to be like there's this moment of sell and this moment of yes because the best partnerships have happened over time and they come together because everybody has something to bring to the table, and I think that was one of those magical moments. A lot of people have ideas, but then they don't really come to fruition. They have, you know, things that they want to do in their head, and an idea can live on a piece of paper or on your desktop for the longest time, but you've got to get out. The hardest thing is to just get out of the gate. But what's holding people back? And I do see that a lot, actually. People are either too afraid or say they don't know where to start, or they don't have the capital. You know, I...

Analysis

The conversation highlights the importance of cultural timing and inclusivity in fashion, emphasizing that successful ideas often require a blend of the right moment, the right person, and a bit of magic. It also reveals that many aspiring entrepreneurs struggle to take the first step due to fear, uncertainty, or lack of capital, which can hinder the realization of their ideas.

Smart money should note that the intersection of cultural trends and business opportunities can create significant market openings, particularly in sectors like fashion that are evolving towards inclusivity. Additionally, the hesitance of potential entrepreneurs suggests a gap in the market for supportive structures that can help bridge the gap from idea to execution, potentially leading to investment opportunities in incubators or mentorship programs.

🔍 Good American 🔍 Skims 🔍 Kardashians 🔍 Francine Lacroix 🔍 Emma Greed 🔍 Bloomberg

17:36
PDT

Consistent communication is crucial for organizational clarity.

– Leadership styles must evolve as companies grow.

– Employee roles should align with their strengths for overall success.

– Directness in leadership can foster transparency and accountability.

– Female leaders face unique judgments regarding empathy and directness.

leadership adaptabilityfemale leadershiporganizational communication

▸ Full transcript

That vision downwards. And so I'm in a constant conversation with everyone around me. I think I'm super repetitive. I say the same three things over and over and over again. And everybody in the organization should be able to know what our priorities are and know what we're doing. And so I think I'm a little bit of a broken record, but I think that there's an element of consistency that comes with that. And I'm bloody consistent. And you've talked before about needing different people around you to go from 10 million to 100 million to 5 billion. Don't you just? It's not the same people. And you know, I kind of raised myself in business having an enterprise mentality. I learned that very, very early on. I'm here to do people favors. Business is business. And I do what's best for the company every single day. And often that is what's best for the individual. Nobody wants to be kept in a role that they're not best suited to because that never works out for the individual or for the organization. So I've learned over time that what is good for the company is ultimately good for everybody. But what is that? Ruthlessness? I don't know that it's ruthlessness. I think that it is just being able to delineate what is right at the time. And here's the thing. I think specifically as a female leader, you're judged on how empathetic you are. And so I think the way that we work and the reason that I think directness is always important is that we all know where we stand all the time. I'm not waiting for an assessment moment or a six-month mark.

Analysis

The speaker emphasizes the importance of consistent communication within an organization, stating that everyone should be aware of the company's priorities. They also highlight the necessity of adapting leadership styles and team compositions as a business scales from smaller to larger revenue milestones.

A key insight is the recognition that what benefits the company often aligns with individual employee success, suggesting a strategic approach to personnel management. The speaker's perspective on directness and empathy in leadership may resonate particularly with investors focused on female-led enterprises and their unique challenges in the corporate landscape.

🔍 Good American 🔍 Skims 🔍 Kardashians

17:34
PDT

Confidence in problem-solving is crucial for leaders.

– Having a knowledgeable team can significantly impact a startup's success.

– Supply chain foresight is essential for new brands.

– Resilience and adaptability are key traits for entrepreneurs.

– Honest feedback within teams can drive improvement.

entrepreneurshipleadershipsupply chain management

▸ Full transcript

How can I change this? How can you move this? But the simple fact was the fabric wasn't available because I hadn't had the foresight to get out in front of the calendar and know what I was up against. But a new brand is a new brand. There was no data, there was no history. There was nothing telling me that this was gonna be that successful. And so would I've done anything different? No, I don't think so. What did you learn about yourself? Because a lot of chief executives will say, look, it's only by learning and failing that finally you have the posture to say, like, look, I got this. Yeah. you think I got this right from the start? I really did, and perhaps I was naive, but I knew I'd figure it out. In my head, I just thought, this is just another problem, and my life is a series of problems, as a leader and as somebody who starts companies and builds things from scratch. Did you tell the employees, or did you celebrate with them and figure it out by yourself? You know, I had no choice. The great thing about Good American at the start is that I'd chosen that initial team really well, so I had veterans in my business. The person, and thank God she still works for me now, but in a different company. But the woman that was really in charge of product had been in the denim space for 20 years. And the guy that ran all design really was like so ingratiated in the denim community in LA that we were able to literally knock on doors and ask favors. And so I thankfully had surrounded myself with people who knew better and could help me open doors. You talk a lot about giving employees honest feedback. Is that, is that radical?

Analysis

The discussion highlights the challenges faced by a new brand, particularly in managing supply chain issues and the importance of having a strong team to navigate these obstacles. The speaker emphasizes their confidence in overcoming problems, showcasing a mindset that values resilience and adaptability in leadership.

A key insight is the significance of surrounding oneself with experienced individuals who can provide support and guidance during critical moments. This approach not only mitigates risks but also fosters a culture of collaboration and innovation, essential for any startup's success.

🔍 Good American 🔍 Kardashians 🔍 LA

17:32
PDT

Initial success can mask underlying operational challenges.

– Confidence and problem-solving are crucial for entrepreneurs.

– Shareholder doubts can arise from execution oversights.

– Public perception may not reflect internal struggles.

– Imposter syndrome is not universal among founders.

entrepreneurial resiliencesupply chain challenges

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But then you write in your books that actually it was quite stressful and didn't go to plan. You know what? That's an understatement because it's really interesting when something from the outside looks so perfect and in one way it was a total dream. You know it was the first time that I'd done a business in apparel and for all intents and purposes it was like this beautiful amazing thing that went so well except from the inside where I had no inventory. We'd had this beautiful dream first million dollar day that kind of went down in history, but behind the scenes I was scrambling. I had like a wait list kind of coming out of my ear holes and no way to satisfy the demand. But more than that, I had like this kind of doubt permeating through the company on the board with my shareholders that perhaps because of that oversight that I wasn't the right person to run the company. And actually looking back, it's kind of interesting that I never felt any fear around that moment. I just kind of looked at everyone and was like, leave me alone, I'm gonna figure it out. But actually- Never had any fear. There was not a moment where you thought actually, I need to take a step back or I need to convince the board. No, no. And it's so interesting because so many people talk to me about imposter syndrome and being a first time founder. I never had any of that. I always think like, if not me then who? You know, like I, in my head it was my idea and I'd brought it to fruition and I was going to figure out any of the problems and so much of being an entrepreneur is about figuring it.

Analysis

Emma Greed discusses the challenges she faced during the launch of her apparel business, highlighting a significant disconnect between external perceptions and internal realities. Despite initial success, she dealt with inventory shortages and doubts from shareholders, yet maintained confidence in her ability to resolve issues without succumbing to fear or imposter syndrome.

The insight here is that successful entrepreneurship often involves navigating crises that may not be visible to the public eye. Greed's unwavering self-belief and proactive problem-solving approach could serve as a model for other founders facing similar pressures in high-demand markets.

🔍 Emma Greed 🔍 Good American 🔍 Skims 🔍 Kardashians

17:30
PDT

Emma Greed's brands are valued at $5 billion.

– Celebrity partnerships have driven significant growth.

– Market positioning may face challenges ahead.

– Sustainability of celebrity influence is uncertain.

– Innovation will be key for future success.

celebrity influenceretail market dynamics

▸ Full transcript

A clear strategy doesn't exist. While he doesn't like the word blunt, Francine, you are using blunt. I'm not sure I'm authentic. And his advice to other British brands: Are they actually set up to win? So tune into the podcast version of Leaders with Francine Lacroix. Listen and watch on Bloomberg Television or wherever you get your podcasts. Bringing you up to the minute global news whenever and wherever it happens. I'm Johanna Versace in Alhala, Saudi Arabia, and this is Bloomberg. I'm Francine Lacroix, and this is Leaders, the podcast that explores what drives the world's most influential people. This week I'm speaking to Emma Greed. She's the chief executive and co-founder of Good American and founding partner of Skims, the shapewear and loungewear brand which was valued at $5 billion in November 2025. The last 10 years have seen her star rise, a lot of it down to her successful partnerships with a celebrity family named the Kardashians. But now may be a pivotal time for her.

Analysis

Emma Greed, CEO of Good American and co-founder of Skims, is at a pivotal moment as her brand, valued at $5 billion, navigates the complexities of celebrity partnerships and market positioning. The influence of the Kardashian family has significantly propelled her success, but the sustainability of such partnerships may be tested in the evolving retail landscape.

Smart money should note the potential volatility in brands heavily reliant on celebrity endorsements, especially as consumer preferences shift. Greed's ability to adapt and innovate in response to market demands will be crucial for maintaining growth and relevance in a competitive environment.

🔍 Emma Greed 🔍 Good American 🔍 Skims 🔍 Kardashians 🔍 Bloomberg 🔍 Francine Lacroix

17:25
PDT

Effective meetings should end with clear action items.

– Decisive leadership is preferred for final decisions.

– Encouraging an entrepreneurial mindset can unlock potential across all roles.

– Innovation is not limited to traditional entrepreneurs; it can occur in any position.

– Clarity in communication is crucial for organizational success.

organizational effectivenessentrepreneurial culture

▸ Full transcript

I mean for medicine, for media, for real estate, for all sorts of things, and doing it with incredible people. Rapid fire, top tip for holding a highly effective meeting. I think having an action item, so when the meeting's over. Meetings that end with just a lack of clarity of where you're going, to me, that's not good. So what you want is the meeting's over and the takeaway is we're gonna go do this for this client or we're gonna go do this, due diligence on this company, and then we're going to come back. Action is the thing that matters. Would you rather lead on your own or by committee? On my own, but I still think of some things like investing. I prefer the committee. But in terms of final decisions, I think one person has to have responsibility. Top tip for motivating people? I think giving people a sense that there is no limit to what they can achieve, that their potential is enormous and really encouraging people to be entrepreneurial. It's not just Steve Jobs in the garage. You can be an entrepreneur as an investor, as a fundraiser, frankly, as an accountant, as a lawyer. You can think about how can I do things better? How can I innovate? You want to encourage people that there's tons of opportunity wherever they are in the organization and they should think like an entrepreneur. John Gray, thank you so much for joining us. Francine, it was great. Thank you.

Analysis

John Gray emphasizes the importance of clarity and action items in meetings, advocating for a decisive leadership style while still valuing collaborative decision-making in investments. He encourages a culture of entrepreneurship within organizations, suggesting that every employee can innovate and improve processes, regardless of their role.

Smart money should note that fostering an entrepreneurial mindset can lead to greater innovation and efficiency across various sectors. This approach not only motivates employees but also positions firms to adapt and thrive in a competitive landscape.

🔍 John Gray 🔍 Steve Jobs

17:23
PDT

The firm has shifted to a more human-centric corporate culture.

– Humor and self-deprecation are used to connect with clients.

– This approach has enhanced client loyalty and engagement.

– The firm aims to balance professionalism with approachability.

– Trust and transparency are becoming key client priorities.

corporate cultureclient engagement

▸ Full transcript

Surprised I can dunk? Huh? Well, I've got to go. I've got some holiday cheer to spread and some books to sell. When I got this job eight years ago, we realized that we'd grown too large to have a Christmas party at the firm. And I was like, wow, I'm going to be like Scrooge. I will have canceled the Christmas party. So we need to do something that is more fun and make up for this. We decided to do this video. And originally it was just internal, and it sort of got out, and people thought it was really funny. And so again, it was like, hey, this works. And I think again, the element of this that's helpful is it shows the humanity of the firm that we can make fun of ourselves, that it's not just tough Wall Street investors. And now it's become a thing, and our clients love it. Tell me a John Gray day. So is it, you know, what time do you start? Get up six-ish in the morning. Try to read the newspapers, Bloomberg of course. Always. Always. Get a sense of what's happening in the world. Catch up if I'm in New York on the Asia and Europe emails that have come in overnight. Probably read some stuff that if I didn't get through the night before prepping for the day ahead. Get to the office.

Analysis

The firm has embraced a more human approach to its corporate culture, utilizing humor and self-deprecation to connect with clients and employees. This strategy has proven effective, as it not only lightens the atmosphere but also reinforces trust and relatability in a traditionally serious industry.

Smart money should note that this shift towards a more personable brand image can enhance client loyalty and engagement, potentially leading to increased investment flows. The ability to balance professionalism with approachability may set the firm apart in a competitive market, especially as clients increasingly value transparency and authenticity.

🔍 John Gray 🔍 Bloomberg 🔍 Wall Street 🔍 New York

17:21
PDT

John Gray uses social media to build trust with stakeholders.

– Informal content can enhance investor confidence.

– Authenticity in leadership is becoming increasingly valuable.

– Gray's approach differentiates him in a competitive market.

– Engagement through personal storytelling can attract investment.

trust buildingleadership authenticity

▸ Full transcript

Not post, but like, hey, I'm here in London. This is what's going on. Instead, I did it for a broader audience, and we put it on LinkedIn, and it went viral. I was like, oh, I can do other cities. This isn't that hard. What I found was that people really enjoyed seeing the travel, seeing sort of the human side of this, and seeing a little bit of self-deprecating humor. You know, when you're doing TV, it's hard to sort of show who you are at times. This felt like a direct way to communicate unfiltered. Yes, we've got a lot of stakeholders. There are only so many of them you can see in a given year. They can see who you are. Going back to my earlier comments, it is about trust. If people are going to invest with us, knowing who the people leading the business are and that they seem like decent human beings, that's helpful. I describe what I produce as sort of dorky dad vibes. I think it gives people a sense of sort of who we are, what we care about, and some of the insights we can give in the world, and do it in a very informal way. And that's worked. At some point, there'll have been too many running videos, and it'll be like enough. For now, we keep running. But you enjoy it. Is that your personality? I definitely my personality, which is...

Analysis

John Gray's informal approach to sharing insights through social media has resonated with audiences, showcasing a more human side of leadership. This strategy emphasizes the importance of trust in investment relationships, as stakeholders appreciate transparency and authenticity from business leaders.

The casual, relatable content not only builds rapport but also serves as a unique branding tool, differentiating Gray and his firm in a competitive market. Smart money should note that this approach can enhance investor confidence and potentially lead to increased capital inflows as stakeholders feel more connected to the leadership.

🔍 John Gray 🔍 Blackstone 🔍 TV

17:16
PDT

Blackstone leaders prioritize human connection during crises.

– Empathy and communication are key to employee morale.

– Crisis management can enhance organizational culture.

– Long-term performance may benefit from strong employee relationships.

– Trust-building is essential for investor confidence.

crisis managementemployee relations

▸ Full transcript

In my career investing, she wants to have a family, and I'd always be like, call Wesley. To be in the office one day and to have this kind of horrific mass shooting, and then also the trauma of a lot of people who were in the building for hours with a high degree of uncertainty, that was a really hard thing, and there's no playbook for that sort of thing. I think the key learning from that was just the importance of being sort of who you are, and everybody was in pain at that point. Then having as much communication and then trying to find your footing—how do you get back to work? We have a lot of responsibility, but also something really traumatic has happened that was hard. Finding the balance was definitely the toughest thing, and I certainly hope I never experience anything like that again. I remember you felt like you were quite close to employees. How did you do that? How did you learn how to do that? How did you know that that was the right thing? You know, I think for both Steve and myself, it was just a natural thing to connect with human beings. We met everybody as we reopened the building when we had people come back. We did a bunch of sessions. One of my colleagues here in London actually said it was the worst of times, but the best of Blackstone because it really showed a humanity that again made me proud.

Analysis

The recent traumatic experience of a mass shooting has highlighted the importance of human connection and communication in the workplace. Leaders at Blackstone emphasized the need for empathy and support during crises, showcasing the firm's commitment to its employees' well-being.

Smart money should note that the ability to navigate crises with a focus on human connection can strengthen organizational culture and employee loyalty. This approach may enhance long-term performance and trust, which are critical in maintaining investor confidence during turbulent times.

🔍 Blackstone 🔍 Steve Schwartzman

17:13
PDT

B-CRED has achieved over 10% annual returns since inception.

– Blackstone emphasizes alignment with investors by investing personal capital.

– Trust and performance are central to Blackstone's investment philosophy.

– Employee contributions reflect a strong culture of client alignment.

– Market noise can be mitigated through demonstrated commitment.

private creditinvestor alignment

▸ Full transcript

It's done a terrific job, with a 10 plus percent annual return since inception six years ago. There's been obviously a lot of noise around private credit. One of the things that's really important to us is that our investors recognize that we're aligned with them. So what we did recently was put up some capital from the individuals of the firm because we wanted to show that alignment. The key is you're in the investing business; it's a trust business. When there's a lot of noise and people are saying this is that, there's nothing more powerful than sort of putting some money in and saying, 'Hey look, I'm aligned with you, this is my money. I believe in what I'm saying.' In the fullness of time, again, investors will look back and say, 'Hey, they did a good job.' For us, focusing on that North Star, which is performance and building trust with our clients, that's what really matters. But was it difficult to convince other employees to join in, or is it again just part of the culture? I think it's part of the culture. I mean, obviously when you're asking people to make personal contributions, that's something, but I do think it's part of who we are. I do think people recognize that being seen as caring deeply about your clients and being aligned matters. I mean, what was, you've had difficult times. Yes. Most difficult? Oh well definitely the most difficult would have been last...

Analysis

Blackstone's private credit fund, B-CRED, has demonstrated strong performance with over 10% annual returns since inception, highlighting the firm's commitment to aligning interests with investors by investing personal capital. This approach reinforces trust in a challenging market environment, emphasizing the importance of performance and client relationships in the investment business.

The willingness of Blackstone employees to contribute personal funds reflects a deep-rooted culture of alignment and care for clients, which could be a differentiating factor in maintaining investor confidence during turbulent times. Smart money should note that such alignment can enhance long-term investor relationships and potentially stabilize fund inflows amidst market noise.

🔍 Blackstone 🔍 B-CRED 🔍 North Star

17:11
PDT

Blackstone's B-CRED fund garners significant employee investment.

– Investment culture is shifting towards mentorship and shared values.

– Technological advancements are crucial for addressing complex market threats.

– The defense sector faces challenges with advanced threats and limited resources.

– Investors should focus on firms that model risk-taking behavior.

private credit investmentinvestment culturedefense technology

▸ Full transcript

If you have people who share your values, who share the drive, and they're the ones who are succeeding, then the younger people are going to look around and say, oh, that person who took a risk, they moved to a new place, they found this new way to invest capital, oh, I want to follow them. And I think that in many ways is the best way to model things, and also just the way you act, you know, the way you conduct yourself sends a powerful signal to others. Defense is more complex than ever. We have more advanced threats, fewer resources, and we have a vast amount of space to potentially monitor. As technology is adopted across nearly every facet of our lives, we need more advanced, more technologically savvy solutions. Blackstone's flagship $82 billion private credit fund, B-CRED, made headlines in March. Bloomberg reported that around 25 Blackstone senior employees were putting in roughly $150 million of...

Analysis

Blackstone's flagship $82 billion private credit fund, B-CRED, is attracting significant attention as senior employees invest roughly $150 million into it. This move signals confidence in the fund's strategy amidst a complex investment landscape characterized by advanced threats and resource constraints.

The emphasis on shared values and risk-taking among successful individuals highlights a potential shift in investment culture, where mentorship and modeling behavior could drive future capital allocation. Smart money should note the increasing importance of technological solutions in defense and investment strategies as firms adapt to evolving market conditions.

🔍 Blackstone 🔍 B-CRED 🔍 CRED

17:09
PDT

The speaker values mentorship and open communication in business.

– Thinking big is essential for growth and success.

– Adaptability and learning from experiences are key investment strategies.

– Focus on sectors with long-term growth potential.

– Entrepreneurial spirit drives innovation and market success.

entrepreneurial spiritbusiness growthmentorship

▸ Full transcript

As the air and waiting. I've woken up every day intellectually challenged by what I do. And I love the people and I love the drive and the will to win. How has your relationship with Steve Schwarzman changed over the years? Oh wow. You know, when I joined I was a kid, right? I was 22 years old, was a tiny little firm. And obviously as I've grown up over time, you know, the relationship as somebody just learning business to somebody helping run the firm is different. But I would say there's remarkable continuity. Steve's just always pushing for the best. And even at a young age, one of the great things about Steve and the firm is this openness to listen at the table. So even when I was very young, once I sort of got my sea legs and I said, oh, I don't like this transaction for whatever reason, you were heard. And so I think Steve just appreciates drive, caring, and entrepreneurial spirit. And for me, it's one of the great gifts of really my not only my career, my life to have been able to work so closely with him to be able to learn so much from somebody who's so wise, who always has equanimity in whatever the situation. That's been really helpful. And he's also pushed me. I never would have been somebody who would have thought as big. You know, that's his thing. He extends the playing field and makes you think about, can we build this business to a billion? Why don't we build it to 10?

Analysis

The relationship between the speaker and Steve Schwarzman has evolved from a mentor-mentee dynamic to a partnership focused on growth and innovation. The speaker emphasizes the importance of being heard and encouraged to think big, which has shaped their approach to business and investment decisions.

Smart money should note the emphasis on entrepreneurial spirit and the ability to adapt and learn from experiences, which are crucial in navigating market challenges. The speaker's insights into building businesses with a long-term vision highlight the potential for significant growth in sectors that align with evolving consumer behaviors and technological advancements.

🔍 Steve Schwarzman 🔍 Blackstone

17:04
PDT

Staying calm during market volatility is crucial for investment success.

– Focus on strong business fundamentals over minor price differences.

– Identify investment opportunities in logistics and data centers.

– Consumer behavior is shifting towards online purchasing.

– Energy solutions are becoming increasingly important.

investment strategymarket volatilityconsumer behavior

▸ Full transcript

To my kids and now I say to everyone in Blackstone, stay calm, stay positive, never give up. I think that was really important in a moment like this. By the way, in all different times, we've seen this in COVID, we've seen it when markets react to liberation day, having this sense of equanimity is really important because you have to be clear thinking. Sometimes you may have made a really bad decision. In the case of Hilton, we actually had invested in a great company. Our timing was terrible. But if we had the staying power to get to the other side, we thought we could make it. So stay calm. The second thing as an investor, which has really informed how I think about deploying capital, is so often in my training, I'd focus on whether I pay 98 or 100 for something, what the footnote on page 52 says in the investment memo. But it's really that first paragraph. What is the basis? How good of a business is it? The biggest thing on the investing side is it led to this idea of what are the best neighborhoods to invest in. You know, there's a shortage of global housing or consumers are moving to buying things from stores to online so logistics will do well. More recently, the importance of data centers and fabs and energy and thinking about investing not necessarily just the individual we're going to price everything but we've got a better chance of success if we.

Analysis

Blackstone's investment strategy emphasizes the importance of staying calm and focused during market volatility, as demonstrated by their experience with Hilton. The firm highlights the need to identify strong business fundamentals and favorable investment neighborhoods, particularly in sectors like logistics and data centers.

Investors should note the shift towards online consumer behavior and the growing demand for data centers and energy solutions. This insight suggests that capital deployment should prioritize sectors with structural growth potential rather than merely focusing on price points.

🔍 Blackstone 🔍 Hilton 🔍 COVID

17:02
PDT

Real estate values were inflated due to excessive market debt.

– The speaker's firm paid a premium for public companies over private valuations.

– The financial crisis led to significant revenue and cash flow declines.

– Long-term growth potential in the travel sector remains a focus.

– Additional capital was injected into the business during the downturn.

real estate investmentfinancial crisis impacttravel sector growth

▸ Full transcript

I was running our real estate business, and what we were looking for was how we could buy great real estate or operating businesses at reasonable prices. There was so much debt in the market fueling private real estate values that we found we could buy the public companies at better prices, so we ended up paying a big premium—30 plus percent over where the company was trading. We committed in July of '07, we closed in late October. By early '08, things were going badly. The financial crisis really picked up, and the company had a 20% decline in revenue and a 40% decline in cash flow. We put a lot of debt on it, and I would say at that moment, it did feel like it was career shortening and that I shouldn't be sitting here today. Did you think, 'What have I done?' Or did you think, 'People got through it?' I think there was part of me that was, 'What have I done?' but there was also part of me that was, 'This is a great business.' We still thought that travel was a long-term growth business and that the core of the company—the branded hotel business where you manage and franchise hotels like Hilton, Hilton Garden, and Hampton—could grow a lot beyond the United States. Then we just had to weather this storm, and so we ended up putting in an extra $800 million at the bottom, by the way we wrote off.

Analysis

The speaker reflects on a significant investment in a real estate business made just before the financial crisis, highlighting a 20% revenue decline and a 40% cash flow drop shortly after the acquisition. Despite the initial panic, there remains a belief in the long-term growth potential of the branded hotel business, suggesting resilience in the travel sector.

🔍 Hilton 🔍 Hilton Garden 🔍 Hampton 🔍 Waldorf 🔍 United States

16:59
PDT

Morgan Stanley's Wilson remains bullish on oil despite geopolitical tensions.

– Market sentiment is often more accurate than individual forecasts.

– Investors should focus on long-term trends over short-term volatility.

– The market's resilience is a key factor in investment strategies.

– Confidence in oil prices remains strong.

oil market dynamicsgeopolitical risklong-term investment strategy

▸ Full transcript

Of saying, uh-oh, what if I'm a one-hit wonder? I was a little scared, but then I just threw it up into the wind and went for it. Jones Road, where'd that name come from? Well, I sold the rights to Bobby Brown to Estee Lauder when we sold the company, so I couldn't use it again. So we needed a name because I wanted to launch Jones Road the day my 25-year non-compete was up. I needed a name, and I didn't have one. And I was driving to the Hamptons with my husband. My head was down on ways, and I looked down, I saw Jones Road, and he said, I said Jones Road beauty, he said I like it. And that's how it became Jones Road. You missed it on Bloomberg Open Interest. Morgan Stanley's Wilson says Iran is unlikely to dent bullish view. We had no idea that oil wasn't going to 150. Well, I didn't know that. The oil I was confident was gonna find a way because it had to. What other calls do you have for us? Just 30 seconds that this market's getting wrong and your crystal ball that we should look at. Only the market's never wrong, okay? It's only people that are wrong. The market usually gets it right. Don't miss open interests live weekdays.

Analysis

Morgan Stanley's Wilson maintains a bullish outlook on oil, asserting that geopolitical tensions, including those with Iran, will not derail the market's upward trajectory. He emphasizes that the market typically reflects the correct sentiment, suggesting that investor confidence remains strong despite uncertainties.

The insight here is that while many may fear external shocks, seasoned investors should recognize that the market's resilience often outpaces individual predictions. This perspective encourages a focus on long-term trends rather than short-term fluctuations, which could be pivotal for portfolio strategies.

🔍 Morgan Stanley 🔍 Wilson 🔍 Iran 🔍 oil 🔍 Jones Road 🔍 Bobby Brown

16:52
PDT

Monarchy's role in addressing global issues is highlighted.

– King William is pushing for change within the monarchy.

– Adaptability is crucial for the monarchy's future relevance.

– Historical context of adaptability is referenced.

– Public perception of the monarchy may shift with proactive engagement.

monarchy adaptationpolitical engagement

▸ Full transcript

But perhaps there's a value and a purpose in the fact that he is uniquely placed and used the opportunity to talk about the courage of the people of Ukraine or the importance of checks and balances in front of lawmakers and a president, some of whom don't generally want to hear any of that and won't hear any of it, said to their face. Well, the mystery is the mystique of monarchy, because if the French president had gone and said it, or if the German president had gone and said it, or Malone or anybody else, and everybody had taken a bit of notice. But the Americans have, partly because they, many of them have their history as in Britain, this huge respect for hereditary monarchy, which is, I agree, it's a mystery and it's worth trading on. Are you a monarchist yourself? I'm a monarchist, but I think I'm in favor of a monarchy that adapts. Remember that South Africa, the way when apartheid collapsed, the Africana prime minister told the Africana, adapt or die. That was their slogan, adapt or die. And I think with our monarchy, just adapting is very important. And the science is actually happening because I think rather to the discomforture of the King, William has said, change is on my agenda. He said it's a Canadian comedian, brilliant line, change is on my agenda. And what do we see just yesterday?

Analysis

The discussion highlights the unique position of the monarchy in addressing significant issues like the courage of the Ukrainian people and the importance of checks and balances, which resonates with American lawmakers. The need for the monarchy to adapt to contemporary challenges is emphasized, particularly with King William advocating for change, suggesting a potential shift in royal influence and public perception.

Smart money should note that the monarchy's ability to engage with pressing global issues could enhance its relevance and public support, especially in a changing political landscape. The reference to historical adaptability in South Africa serves as a reminder that institutions must evolve to maintain their significance and authority.

🔍 Ukraine 🔍 King William 🔍 South Africa

16:50
PDT

King's visit to America was well-received.

– The speech delivered was strategically crafted.

– Political tensions were managed effectively.

– Potential for improved UK-US relations.

– Royal engagements may impact public sentiment.

diplomatic relationspolitical strategy

▸ Full transcript

You were not happy about the king going to America for his recent visit. You thought it was the wrong political moment to send the king into. When you saw how the visit actually transferred the speeches that the king was able to give in the presence of President Trump and in Congress, did you feel differently? I thought it was handled impeccably, really, and I was surprised by that. I mean, Trump didn't take advantage of it in the way that I thought he might, and the politics of the Iran War were kept out of it as far as possible. But I thought that—and maybe this was wrong—I thought that by postponing the visit, we had put pressure on Trump, though actually nobody puts much pressure on Trump, not until the midterms that may put pressure on him. I thought it might just distance us from it. But it was curious because the careful wording of that very good speech that the king made, I don't know who wrote that, but it was, I mean, obviously he had an input, but it was a wonderfully crafted speech. The one in Congress. Yeah. And people said, oh, amazing, 12 standing ovations. Actually, you can't say good morning in Congress if you're a visitor without getting a standing ovation; they were all getting up at every turn. But that was a very clever and subtle speech about the relationship.

Analysis

The recent royal visit to America was handled impeccably, with the king's speech in Congress being particularly well-crafted and politically astute. This suggests a strategic approach to international relations, distancing the monarchy from contentious political issues while maintaining diplomatic decorum.

Smart money should note the subtlety in the king's speech, which navigated complex political waters without alienating key stakeholders. This indicates a potential shift in how royal engagements may influence public perception and political dynamics in the UK and abroad.

🔍 King 🔍 Donald Trump 🔍 Congress 🔍 Iran War 🔍 President Trump

16:46
PDT

Farage's leadership style may hinder party growth.

– Effective communication is crucial for political success.

– Charisma is a key trait for leaders in crisis.

– Political disarray may lead to shifts in voter sentiment.

– The need for broader coalition-building is evident.

political leadershipcommunication strategy

▸ Full transcript

They liked the way he came across. And, you know, the programme that you fronted was part of giving him that kind of national status. Mayor Culper. Not you personally. I tell you what. Donald Trump benefited from being recognised on TV. Boris Johnson did as well. It brings us to the whole business of social media and the way people communicate nowadays. I mean, two minds about. And so, Farage, and that, and this is the problem actually with reform now that he is the only voice, really. The reason you were talking to him, he is the only voice and I think that's a kind of Achilles heel for him. Yeah, they're definitely now trying to build up others. Yes, but he's not very good at the relationships, you see, he falls out with people quite easily. He's quite thin-skinned in a funny way. But I guess what I'm not... If you're going to lead a new party, you've got to be quite broad-shouldered about who you bring in, not always suspecting. There's definitely a tension there. He wants others to share the load, but he is the top of the trios. Yes, yes. I think rather to the discomforture of the king, William has said, change is on my agenda. Defense is more complex than ever. We have more advanced threats, less resources, and we have a vast amount of space to potentially monitor. Eyes technology is adopted across...

Analysis

Nigel Farage's leadership is questioned as he struggles to build a broader coalition within his party, highlighting his thin-skinned nature and difficulties in relationships. The current political landscape suggests that effective communication and charisma are essential for leadership, especially in times of crisis, which Farage may lack.

🔍 Nigel Farage 🔍 Boris Johnson 🔍 Donald Trump 🔍 William 🔍 TV 🔍 Mayor Culper

16:41
PDT

The UK is facing significant economic and social challenges.

– Current leadership lacks charisma and effectiveness.

– Youth unemployment and mental health issues are critical concerns.

– There is skepticism about Nigel Farage's suitability for Prime Minister.

– The need for reform in leadership is emphasized.

leadership effectivenessyouth unemploymentmental health issuespolitical instability

▸ Full transcript

Of course, the problem going from a heavily industrialized society to a service industry society is difficult. But this position of falling back leads to terrible stories of young people unemployed in perpetuity, coming forward with supposed mental health problems, and then being put on drugs and all that. We're in a dire state; I'm not pretending we're not in a dire state. I think we are in that sense. Economically or socially? I think you mean... Economically as well. And you need leaders who are fit for the most. Yes. I mean, maybe I put too much on leadership, but I do think that acknowledging, you know, you can't just be mealy-mouthed and say things can get better and then actually do nothing very much. If you want to, you can explain how awful things are and say we'll do our best, but you have to have a degree of charisma to do it. And one thing our present Prime Minister does not have is charisma. I mean, he mutters. What do you think about the prospect of Nigel Farage being the next Prime Minister? I... Well, I don't think... Can I say this? I don't know. I'm not sure he's temperamentally suited to the job, and I haven't yet seen any signs around him of people of caliber to act as Chancellor, Foreign Secretary.

Analysis

The current economic and social state of the UK is dire, with a lack of effective leadership and charisma from the Prime Minister. The transition from an industrialized society to a service-oriented one has led to persistent unemployment and mental health issues among the youth, highlighting the need for strong leadership to address these challenges.

🔍 David Dimbleby 🔍 Nigel Farage 🔍 Labour Party 🔍 Thatcher 🔍 Blair 🔍 EU

16:37
PDT

Labour Party leadership is under scrutiny.

– Calls for change reflect dissatisfaction with current Prime Minister.

– Bold leadership is deemed necessary for crisis management.

– Political instability could affect market confidence.

– Potential rise of alternative political figures like Nigel Farage.

political instabilityleadership change

▸ Full transcript

At a general election, there are all sorts of caveats you have to put in about whether they would be exactly the same. If it had been reform, wouldn't have a working majority in the House of Commons. It's easy to mock countries like Italy, where it was all chaotic and now seems to be rather stable. These things come and go. We were the sick man of Europe, remember, way back. In my lifetime, not in yours. We were a sick man of Europe because our growth was low. We had the winter of discontent. We had strikes everywhere. The country ground to a halt. We had a three-day week. So, I'm not saying I'm an optimist. I'm not saying I'm optimistic. I'm wondering if you're saying, should one be steady at the moment, Ben? And would you say to the Labour Party, don't change your Prime Minister? No, absolutely not. I'd say change him. I think you've got a dud there. I mean, a nice man and no doubt a very intelligent man, but a man so over-cautious and so seen publicly, I don't know what he'd be privately, but seen publicly as somebody who decides something and then once he gets a bit of opposition, turns back. Unlike Thatcher, unlike Blair, who are kind of bold statement politicians. In times of crisis, you need that. At the moment, the Labour Party is in complete disarray about what it really was. What do you think about the prospect of Nigel Farage being the next Prime Minister?

Analysis

The discussion highlights the current disarray within the Labour Party, with calls for a leadership change due to perceived over-cautiousness from the Prime Minister. The sentiment suggests that bold leadership is necessary in times of crisis, contrasting the current leadership with past figures like Thatcher and Blair.

Investors should note the potential for political instability in the UK, which could impact market confidence and economic policy direction. The mention of Nigel Farage as a potential future leader indicates a shift in political dynamics that could influence market sentiment and investment strategies.

🔍 Labour Party 🔍 Nigel Farage 🔍 Thatcher 🔍 Blair 🔍 Prime Minister 🔍 Unlike Thatcher

16:35
PDT

Public dissatisfaction with government representation is rising.

– Voter sentiment may shift towards reformist parties.

– Electoral outcomes do not reflect public opinion accurately.

– Frustration with traditional parties could lead to political realignment.

– Investors should monitor the impact of political changes on market sectors.

political reformvoter sentimentgovernment representation

▸ Full transcript

But it's—I mean, our constitution is very suited to aristocratic government in the 18th and 19th centuries. And they don't conceive of having the public—I mean, the public having views? I mean, people below a certain freehold value of house having views? No. It wasn't contrived for that. It was simply for a simple, virtually a dichotomy. And even then, during the 18th and 19th centuries, we churned prime ministers. So there's nothing much new in the churning that went on with this trust. I mean, she was obviously a disastrous choice and it didn't work out. But it's, I think, much more important is that how do you get, and this is where reform comes in, and I suspect some of the vote for the Greens come in, if people don't feel that they are getting represented. If you have a sway of people voting reform who got more votes, for instance, in the last general election than the Liberal Democrats, but only got four seats to the Liberal Democrats, 40 or 50 or whatever it was. Then people, you know, facing issues about their income going down and the NHS not serving them well and everything, feel, but I voted and nothing actually happens. And if you take, I mean, you have to be careful with voting, but you have to take sort of accumulation of individual votes. I mean, the syphologists always treat it as a great sways of opinion. But if you go into the minds of just a single vote.

Analysis

The discussion highlights the inadequacies of the current political system in representing public sentiment, particularly regarding the dissatisfaction with government performance and electoral outcomes. The sentiment reflects a growing frustration among voters who feel their voices are not being heard, leading to potential shifts in political support towards reformist parties.

Investors should note that the increasing discontent with traditional political structures may create opportunities for alternative political movements, which could disrupt the status quo. This shift could influence market dynamics, particularly in sectors reliant on government policy and public sentiment.

🔍 Greens 🔍 Liberal Democrats 🔍 NHS

16:30
PDT

David Dimbleby calls for a change in UK leadership.

– 70 Labour MPs have expressed dissatisfaction with the Prime Minister.

– Concerns about the Prime Minister's charisma and decisiveness.

– Potential for political instability affecting market confidence.

– Historical context of UK political transitions may influence investor sentiment.

political instabilityleadership change

▸ Full transcript

We're in a dire state. You can explain how awful things are and say we'll do our best, but you have to have a degree of charisma to do it, and one thing the present Prime Minister does not have is charisma. David Dimbleby, who anchored ten general elections on the febrile state of UK politics, said we've had 70 out of 403 Labour MPs calling on the PM to go. Would you say to the Labour Party, don't change your Prime Minister? I'd say change him. I think you've got a dud there. I mean, a nice man and no doubt a very intelligent man, but I've seen publicly somebody who decides something and then once he gets a bit of opposition, turns back. From Bloomberg Weekend, this is the Michelle Hussein show. As we go into this episode, I want to say that if you're from the UK, David Dimbleby is not going to need much introduction. You're likely to know him, at least to recognize him. He was, for decades, the face of election programs on the BBC, the person who announced which party had won, the person who said in the middle of the night in June 2016, nearly 10 years ago now, that the UK had voted to leave the European Union. He's seen Prime Ministers from Thatcher to Blair and many more since come into power and leave it.

Analysis

David Dimbleby criticized the current UK Prime Minister, suggesting a lack of charisma and leadership, as evidenced by 70 Labour MPs calling for his resignation. He described the Prime Minister as intelligent but indecisive, indicating a potential shift in political stability within the UK.

The Labour Party's internal dissent signals a growing unease that could lead to significant political changes. Investors should note the implications of political instability on market confidence and economic policy direction in the UK.

🔍 David Dimbleby 🔍 UK 🔍 Labour Party 🔍 Prime Minister 🔍 PM 🔍 BBC

16:26
PDT

traditional, more heritage brands as well as the new brands that are coming into the market. I think that energy, the positive energy is som…

▸ Full transcript

traditional, more heritage brands as well as the new brands that are coming into the market. I think that energy, the positive energy is something that will stand us in good stead, you know, taking the message of South African wine beyond our borders. And that's Next Africa for this month. But don't forget our weekly podcast with more of what's happening from across the continent, available on Apple Spotify and wherever you usually get your podcast. You can also subscribe to our daily Next Africa newsletter available on the terminal and website for even more reporting from the Bloomberg team. I'm Jennifer's Abbasaja and Joe Hennisberg. We'll see you next time. that come from navigating more than 125 years of market cycles, unlocking the potential of public and private markets, spanning real estate to private credit, and infrastructure to natural capital. Finding opportunity today to shape how portfolios are built for tomorrow. Nouveen, invest like the future is watching. Equity indices built on opinions? That's the old way.

16:24
PDT

Foreign investment is increasing in South Africa's wine estates.

– Valuations are shifting towards tourism potential and brand positioning.

– Long-term investment strategies are becoming essential in agriculture.

– Heritage preservation is a key focus for many estates.

– Market pressures are prompting innovative asset management approaches.

agricultural investmenttourism potentialheritage preservation

▸ Full transcript

Their diversification opportunities are putting them into an asset class of their own. That shift is playing out in the Franschuk Valley. As Africa's top wine producing region, it is home to some of the country's oldest and most venerable estates. Among them, Lamotte. The farm was acquired by the Rupert family, by Dr. Anton Rupert in 1970, so it's been in the family for 56 years. With each generation taking over the responsibility, I think new experiences and new avenues were created. Lamotte's newly appointed CEO, Kourbi Lochner, says its business model is evolving. While Lamotte remains family-owned, foreign interest in neighboring farms has effectively re-rated the market. Estates are increasingly priced on tourism potential and long-term brand positioning. For a legacy property like Lamotte, that brings validation, rising valuations, and therefore pressure to outperform. Like a lot of other agricultural investments, you've got to take quite a long-term view. There's been a lot of investment into the infrastructure. A lot of that was, in my opinion, also done to preserve a lot of the heritage, the old original buildings that have been restored for visitors to enjoy. Much of the investment here hasn't necessarily gone into expanding production, but rather into reimagining the.

Analysis

Foreign interest in South Africa's wine estates is reshaping market valuations, with properties increasingly priced based on tourism potential and brand positioning. This trend highlights the need for long-term investment strategies in agricultural assets, as the focus shifts from production expansion to heritage preservation and visitor experience.

Investors should note that the evolving business models in the wine industry reflect broader shifts in agricultural investments, where the emphasis on sustainability and tourism can drive valuations higher. The pressure to outperform in a competitive market may lead to innovative approaches in asset management and operational efficiency.

🔍 Lamotte 🔍 Rupert family 🔍 Kourbi Lochner 🔍 Franschuk Valley 🔍 South Africa 🔍 CEO

16:21
PDT

Fertilizer costs are impacting food security in Africa.

– Government subsidies vary significantly across countries.

– Global investment in South African wineries is increasing.

– The valuation of wine estates is evolving beyond traditional metrics.

– Farmers face financial pressures without government support.

food securityagricultural investment

▸ Full transcript

Fertilizer shortages, if they face higher fertilizer costs, then the bigger question is do we have a food insecurity concern for Africa, especially when it relates to staple foods like cereals, maize, rice, and sugarcane. Does that mean we usually see the farmers absorb some of those costs? In some areas, the governments do pick up the tab and they provide subsidies. We have Ghana that typically offers subsidies to farmers. We have Kenya that sometimes offers subsidies to farmers. But then again, we have countries that don't pick up the tab and the rest, the cost is borne by the farmer. The burden is borne by the farmer. So in areas where the farmer is picking up the tab, then they are much more squeezed. But if we have governments that step in and help the farmers meet some of these fertilizer costs, then they are slightly shielded. And from cocoa to Cabernet, the business of farming is getting a lot more complex. Global investors are pouring money into commercial wineries in and around Cape Town, even as wine sales slow worldwide. French, German, and Norwegian consortiums are buying into one of the few wine-producing regions where vineyard prices are still climbing. For generations, wine estates were valued for one thing, their vineyards. But in the world's seventh-largest wine producer, South Africa, that equation is changing. While the country's wine exports...

Analysis

Fertilizer shortages are raising concerns about food insecurity in Africa, particularly for staple crops like cereals and maize. While some governments, like Ghana and Kenya, provide subsidies to farmers, many others do not, placing the financial burden squarely on the farmers themselves.

The complexity of farming is increasing as global investors are pouring capital into South Africa's commercial wineries, despite a slowdown in wine sales globally. This shift indicates a changing valuation of wine estates, where factors beyond vineyard quality are becoming significant in investment decisions.

🔍 Ghana 🔍 Kenya 🔍 South Africa 🔍 French consortiums 🔍 German consortiums 🔍 Norwegian consortiums

16:17
PDT

Fertilizer prices have doubled, impacting farmer usage.

– Lower production expected in the second half of the year.

– Potential long-term effects on 2027 crop yields.

– UN emphasizes need for financial solutions for vulnerable countries.

– Innovative financing models are emerging in agriculture.

supply chain riskagricultural volatilityfinancial solutionsclimate change impact

▸ Full transcript

Helping scale the industry. But it's also trying to solve a deeper challenge. That the game changer isn't just money; it's lowering the project's risk premium, improving bankability, and accelerating scale as well. We really have the opportunity to give people that previously didn't have an opportunity to enter into almost like this, let's say funnel, going into commercial farming. For the Karoo, the stakes go beyond agriculture. The region faces economic decline, high unemployment, and increasing climate volatility. Pistachio farming offers an opportunity to counter these negative trends. In a world where climate change is reshaping what can be grown and where, the Karoo-Pistachio experiment is a test of whether a high-risk long-term crop can succeed in a volatile environment. Cocoa markets are caught between falling prices and fresh uncertainty as fertilizer disruptions linked to the Iran conflict ripple through West Africa. We'll break down what it all means next. Defense is more complex than ever. We have more advanced threats, fewer resources, and we have a vast amount of space to potentially monitor. Technology is adopted across nearly every facet of our lives. We need more advanced, more technologically savvy solutions.

Analysis

Fertilizer prices have doubled since the onset of the war, leading to reduced usage by farmers and anticipated lower production in the latter half of the year, with potential long-term impacts on 2027 crops. The UN highlights the interconnectedness of fertilizer supply issues, energy crises, and the need for financial solutions to support vulnerable countries facing debt and inflation challenges.

The shift towards alternative fertilizers, such as manure, indicates a significant change in agricultural practices that could affect global food prices. Additionally, the push for innovative financing models in sectors like pistachio farming reflects a broader trend of adapting to climate volatility and economic challenges in agriculture.

🔍 Amina J. Mohamed 🔍 UN 🔍 IMF 🔍 World Bank 🔍 Karoo Pistachio 🔍 David Muller

16:15
PDT

Higher fertilizer prices may lead to reduced agricultural yields.

– South Africa aims to increase pistachio production significantly by 2040.

– Currency strength poses a risk to South Africa's agricultural competitiveness.

– Innovative financing models are emerging to support agricultural investments.

– Geopolitical tensions continue to disrupt global food supply chains.

supply chain riskagricultural investmentgeopolitical tensionscurrency risk

▸ Full transcript

Pistachio by its nature is built for the extremes of the climate. It always falls from one extreme to the other extreme; you would have extreme drought and then you would have ferocious floods. Even if the world production... David Muller is CEO of Karoo Pistachio. He is spearheading a drive to bring together farmers and finance partners to build a new export industry. The ambition? To ramp up production from 20 tons to 60,000 per year by 2040, which would account for roughly 5% of the global market. With the U.S. and Iran dominating global supply, South Africa's output could eventually rival smaller exporters like Syria. But that growth comes with uncertainty. Economist Casey Spreik says some of South Africa's current advantages may not last, especially if the country's currency strengthens. The real risk isn't can we produce cheaply now. It's whether South Africa can really lock in reliability, yields, and export-grade quality throughout the cycle. Because pistachio trees take at least five years before bearing their first fruit, these crops and others like it are turning to innovative financing models to inject immediate capital into the farms. Fed Group, a South African financial services company, has built an investment structure around that uncertainty. We've gone and built quite a special investment...

Analysis

The war in Iran has significantly impacted global food supply chains, particularly affecting fertilizer availability and prices, which could lead to lower agricultural yields in the Northern Hemisphere. South Africa's ambition to ramp up pistachio production faces uncertainty due to potential currency fluctuations and the long maturation period of pistachio trees, which complicates reliability in yields and export quality.

Smart money should note that while South Africa aims to capture a share of the global pistachio market, the reliance on innovative financing models highlights the need for immediate capital in agriculture amidst geopolitical disruptions. The interplay between local production capabilities and global supply chain vulnerabilities could create investment opportunities in agricultural sectors that adapt to these challenges.

🔍 Alexis Maxwell 🔍 Agnieszka DeSousa 🔍 Amina J. Mohamed 🔍 David Muller 🔍 Karoo Pistachio 🔍 Fed Group

16:12
PDT

Fertilizer prices have doubled due to the Iran War.

– Farmers may reduce fertilizer application, risking lower yields.

– Africa holds 60% of the world's uncultivated arable land.

– GCC countries are increasingly looking to Africa for food security.

– Financial institutions need to provide more accessible long-term financing.

supply chain riskfood securitygeopolitical tensionsagricultural financing

▸ Full transcript

So there are parallel tracks of dealing with navigating the crisis. I think this has become the new norm. We've had six. We deal with climate crises every day. So navigating that, trying to achieve the goals that we've set, countries' aspirations and their plans, with the reality of an international financial architecture, is really not working for many of these countries. And coming to financial institutions and gatherings like this continues to push for those doors to open so that we can deal with these impacts as they come. What would you like to see then from the financial architecture in order to better serve some of these economies that you're speaking to? We'd like to see longer-term financing that is concessional. We'd like to see that there's a sense of urgency in the processes for accessing that. We see the potentials on the fossil fuel challenges that we have because of the closure of the Strait of Hormuz that we could have a scaling up of the transitions that are green. So we'd like to see those supply chains protected, but also access the cost of borrowing reduced so that countries can afford that transition. And again, out of a crisis, find an acceleration on a renewable future. From drought to geopolitics, the world's most valuable crops are becoming harder to produce. And pistachios are no exception. The war in Iran has pushed prices to multi-year highs, underscoring just how vulnerable the agricultural sector is to geopolitical events.

Analysis

The ongoing geopolitical tensions, particularly the Iran War, are driving up fertilizer prices, which could lead to lower agricultural yields in Africa as farmers reconsider their fertilizer usage. This situation poses significant risks to food security across the continent, especially as many countries enter planting season with disrupted supply chains.

Smart money should note that the reliance on fertilizers is critical for crop yields, and the potential shift to alternative sources like manure could impact production quality and quantity. Additionally, the financial architecture's inadequacies in providing concessional long-term financing may hinder Africa's agricultural growth and resilience against future shocks.

🔍 Tiwa Adebayo 🔍 AFDB 🔍 GCC 🔍 Morocco 🔍 Nigeria 🔍 Egypt

16:10
PDT

Supply chain issues are exacerbating food security in Africa.

– Fertilizer and energy costs are critical concerns for the planting season.

– Inflation is likely to increase interest rates, impacting debt repayment.

– The IMF and World Bank are being called upon for financial solutions.

– Geopolitical tensions continue to pose risks to economic stability.

supply chain riskgeopolitical tensionsdebt crisisfood security

▸ Full transcript

The continent has shown resilience. The risks are building for more vulnerable countries. I spoke with UN Deputy Secretary General Amina J. Mohamed about how Africa can navigate the risks ahead. Amina J. Mohamed, UN Deputy Secretary General, UN Security Council: We are dealing with supply issues and therefore fertilizer, the planting season, and food security are high up there. But so too are fuel and energy. So yet again, as we had with Ukraine, the energy crisis, the food crisis, and the cost of living. That kind of fiscal space needs to be created for countries that are going to be dealing with the debt crisis. They are still repaying their debts. Inflation will result in interest rates. That will put many countries in jeopardy on the debt issue. So we're looking to find solutions here from the IMF and the World Bank. There have been many offers of the windows and facilities that could be put at the disposal of countries. But I think at this stage we need scale. Many countries are still recovering from the previous shocks and some of those crises are not over yet. The crisis in Ukraine is still one that we look for peace, as we are now searching for in Iran and the Middle East. When you think about safeguarding future geopolitical shocks and economies, really sort of safeguarding the potential vulnerabilities that they're exposed to, where does that start? How does the United Nations start in advising governments on that?

Analysis

The UN Deputy Secretary General Amina J. Mohamed highlighted the escalating risks for vulnerable African countries due to supply chain issues, particularly concerning fertilizer and energy, amidst ongoing geopolitical crises. The need for fiscal solutions is urgent as many nations grapple with debt repayment and inflation, which could jeopardize their economic stability.

Smart money should note that the interconnectedness of food security, energy costs, and geopolitical tensions could lead to significant volatility in African economies. The ongoing crises, including those in Ukraine and the Middle East, underscore the necessity for proactive measures to safeguard against future shocks.

🔍 Amina J. Mohamed 🔍 UN 🔍 IMF 🔍 World Bank 🔍 Ukraine 🔍 Iran

16:06
PDT

Fertilizer prices have doubled since the onset of the Iran War.

– Farmers may resort to using less fertilizer or alternative sources like manure.

– Lower fertilizer application is expected to lead to reduced crop yields.

– The crisis could have long-term implications for food production through 2027.

– Logistical challenges hinder the distribution of fertilizer across Africa.

supply chain riskagricultural productionfertilizer pricesfood security

▸ Full transcript

Incremental ton of fertilizer at prices that have shot up and doubled since the war began. Farmers will use less fertilizer because they can't either get it or it's too expensive. And so what we'll see happen is lower production in the second half of the year, and if this crisis continues, we will really see an impact on 2027 crops as well. There's a number of net importers of fertilizers, but there's also a number of net exporters. So when we look at maybe some of those net exporters, are they potentially able to fill the gaps for some of these other countries on the continent? Yeah, so the question then becomes one of cost and logistics. Much of the export-oriented capacity in Africa is in places like Morocco, Nigeria, or Egypt, countries that are very far away from where some of the farming is concentrated. And so then it becomes, can we shift production and send it into regions of Africa where farmers need it? There's not great alternatives. If farmers can't find the fertilizer that they need, some farmers may turn to sources like manure as an alternative. Agi, just on that point, what does that mean then for global food prices? Alexis said this could be a 2027 story. How are you looking at the trickle-down effects on?

Analysis

The ongoing fertilizer crisis, exacerbated by the Iran War, is leading farmers to reduce fertilizer usage due to skyrocketing prices, which will likely result in lower agricultural production in the latter half of the year and potentially impact 2027 crops. The logistics of fertilizer distribution in Africa pose significant challenges, as many exporters are located far from farming regions, complicating efforts to meet demand.

🔍 Amina J. Mohamed 🔍 Alexis Maxwell 🔍 Agnieszka DeSousa 🔍 Morocco 🔍 Nigeria 🔍 Egypt

16:03
PDT

Higher fertilizer prices could lead to reduced application by farmers.

– Lower fertilizer use may result in decreased crop yields.

– The Iran War is exacerbating existing supply chain issues.

– Africa's agricultural potential remains underutilized amid rising costs.

– Investment in agricultural technology may become more attractive.

supply chain riskagricultural input costsfood security

▸ Full transcript

The ripple effects of the Iran War are hitting global food supply chains from fuel to fertilizers, raising concerns about higher prices and food security, particularly in import-dependent parts of Africa. Key inputs to agriculture are disrupted just as many countries head into planting season. For more, I'm now joined by Alexis Maxwell, senior agriculture analyst for Bloomberg Intelligence, and also Agnieszka DeSousa, EMEA Agriculture Team Leader. What exactly does this mean for the crops on the ground for those crops that are using fertilizer, especially when we look at some of the countries that are heading into planting season? Higher fertilizer prices essentially will mean the farmers will need to revisit whether they need to apply as much of those fertilizers on the ground or not. It means basically that they're going to have to rethink whether to use less. And less fertilizer basically means less plant development, lower yields, and question marks of the production. Now we haven't seen, we are just waiting in the waiting mode and trying to watch farmer behaviors. Right now the Northern Hemisphere, they're planting. One thing is that this month.

Analysis

The ripple effects of the Iran War are disrupting global food supply chains, particularly impacting fertilizer prices as countries enter planting season. Higher fertilizer costs may force farmers to reduce application rates, leading to lower yields and production uncertainties.

Smart money should note that the agricultural sector's response to rising input costs could significantly affect food security in import-dependent regions of Africa. This situation may attract investment opportunities in agricultural technology and infrastructure to mitigate supply chain vulnerabilities.

🔍 Iran 🔍 Africa 🔍 Alexis Maxwell 🔍 Agnieszka DeSousa 🔍 Bloomberg Intelligence 🔍 EMEA

16:01
PDT

Africa holds 60% of the world's uncultivated arable land.

– Agriculture employs around 60% of Africa's workforce.

– GCC countries import 80-90% of their food, increasing reliance on Africa.

– Global supply shocks are raising food and transport costs in Africa.

– Investment opportunities in African agriculture are growing.

agricultural investmentfood securitysupply chain disruption

▸ Full transcript

Africa has the land, the labor, and the demand to become a global agricultural powerhouse. But its full potential remains largely underutilized, and the stakes are rising as global supply shocks like the Iran War push up fuel, transport, and food costs, with knock-on effects already being felt across African economies. According to the AFDB, the continent currently holds about 60% of the world's uncultivated arable land, which is a largely untapped resource. Agriculture already employs around 60% of Africa's workforce, making it the continent's largest source of jobs. It produces everything from staple crops like maize, cassava, and rice to global exports like cocoa and coffee, but much of Africa's agricultural potential remains underdeveloped. Yields are relatively low, infrastructure is limited, and large areas of fertile land remain uncultivated, leaving significant room for growth. And that opportunity is starting to attract global attention. In the Gulf, food security is a major priority. GCC countries import as much as 80 to 90% of their food due to water scarcity and limited farmland, and they're increasingly looking outward to secure supply. Africa, with its land, resources, and proxies.

Analysis

Africa's agricultural potential is underutilized, with 60% of the world's uncultivated arable land located on the continent. The ongoing global supply shocks, particularly from the Iran War, are pushing up food costs and highlighting the need for investment in Africa's agricultural sector.

Smart money should note that the Gulf Cooperation Council (GCC) countries, facing severe food security challenges, are increasingly looking to Africa for agricultural resources. This shift could lead to significant foreign investment in African agriculture, transforming the sector and potentially stabilizing food prices amid global supply chain disruptions.

🔍 Africa 🔍 Gulf Cooperation Council 🔍 AFDB 🔍 GCC 🔍 Iran War

15:56
PDT

SpaceX sees a $28.5 trillion total addressable market, heavily focused on AI.

– The company aims to integrate AI with its launch and connectivity services.

– Dummy Starlink satellites were successfully deployed during the test.

– Supply chain constraints may hinder SpaceX's ambitious plans.

– Musk predicts full reusability of Starship by the end of the year.

AI integrationcommercial space disruptionsupply chain constraints

▸ Full transcript

These are big ambitions that here on earth there are already enough supply chain constraints as it is. This is going to continue for about another 40 minutes, but we've done pretty much here on Bloomberg television and radio as we pass through the test of the dummy Starlink satellites. That demo now seems to be complete. I've been joined for this by Bloomberg Space Correspondent from Washington, DC, Santa Pasha and Cara, and I really recommend you follow her and the rest of the space team in the Business with Space newsletter from San Francisco and from our newsrooms all around the world. This has been Bloomberg television's coverage from space sector 12, Test Point and Starship. This is Bloomberg. No in space relight. Question Patricia. Did Pythagoras have a theory on any other shapes? Patricia? What's more valuable, the art or the name on it? Interesting. But is the portfolio income resilient to rate changes? At PGIN, we're a global asset manager who believes the market rewards those who challenge it. PGIN, keep asking. Can I offer a different perspective? The US power grid faces a challenge of meeting rising demand at a magnitude that hasn't been seen for decades. In the next few years, US data centers could consume.

Analysis

SpaceX's ambitions are shifting significantly towards AI, with a total addressable market of $28.5 trillion, of which $26.5 trillion is attributed to AI applications. This pivot highlights the company's strategy to integrate AI with its existing launch and connectivity services, potentially transforming the commercial space industry.

The successful deployment of dummy Starlink satellites during the test flight indicates progress in SpaceX's operational capabilities. However, ongoing supply chain constraints could pose challenges to meeting these ambitious goals, suggesting that while the vision is grand, execution may face hurdles.

🔍 SpaceX 🔍 Musk 🔍 NASA 🔍 Starlink 🔍 Blue Origin 🔍 Bloomberg

15:54
PDT

Starlink is SpaceX's primary revenue generator with 10 million subscribers.

– New Starlink version aims for improved internet service and direct-to-cell capabilities.

– Starship's development is crucial for reducing launch costs and enhancing payload capacity.

– SpaceX is shifting focus towards AI integration in its business model.

– Starship will play a key role in NASA missions and future Mars exploration.

commercial space industryAI integrationsatellite deployment

▸ Full transcript

Right now, Starship is used to deploy Starlink and for other SpaceX-specific missions, but it's also heavily utilized by NASA and commercial customers. Starship has the potential to completely transform the commercial space industry by reducing launch costs, as it will be a more efficient vehicle capable of carrying larger payloads to orbit. The thinking is that it will decrease the cost per kilogram to get to orbit. However, we don't know how much SpaceX will charge for a Starship ride, so that remains uncertain. For SpaceX, the orbital data center is huge. To continue building out Starlink, there is a new version of Starlink that is supposed to enable more resilient, better internet service. They are also developing a direct-to-cell service, which consists of Starlink satellites that beam cell reception directly to mobile phones, a slightly modified version of a Starlink satellite. They are still building out that network as well, which will be another area where Starship will be essential. Additionally, Starship will be the vehicle for NASA's mission to land humans on the moon and eventually to Mars.

Analysis

SpaceX's Starlink continues to be a critical revenue driver, with 10 million subscribers across 164 countries, and is pivotal for funding the development of the Starship program. The company is also expanding its offerings with a new version of Starlink aimed at providing more resilient internet service and a direct-to-cell service for mobile phones, which could significantly enhance its market position.

Smart money should note that SpaceX's ambitions are increasingly focused on AI integration, indicating a strategic shift that could redefine its business model beyond traditional space operations. The potential for Starship to lower launch costs could disrupt the commercial space industry, making it a key player in future satellite deployments and missions to the Moon and Mars.

🔍 SpaceX 🔍 Starlink 🔍 NASA 🔍 For Space

15:52
PDT

SpaceX's Starlink is a key revenue driver with 10 million subscribers.

– The company is shifting focus towards AI integration in its operations.

– Starship V3 aims for full reusability, a first in rocketry.

– SpaceX's total addressable market is estimated at $28.5 trillion.

– The recent test flight is part of a broader strategy to gather data for future missions.

AI integrationSpace explorationSatellite internet

▸ Full transcript

They go out the side slot of Starship. And then, as you can see on your screen, the next one comes down just like a Pez. They're a little bit behind schedule, but the demo was supposed to start at 17:37. I think they're probably about three minutes late. It seems like it's happening, right? We get that from the reaction of SpaceX employees on the ground. I'm having a little bit of fun with the data, right? This is Starship traveling at 26,000 kilometers an hour, 193 kilometers above the Earth, or 118 miles above the Earth at 16,000 miles per hour. We've got about six minutes left in this Bloomberg television and radio coverage of SpaceX's 12th test flight of Starship. As a reminder, we had sent headlines to the Bloomberg terminal that the Super Heavy booster, the bottom half that is responsible for generating 16.5 million pounds of thrust from launch to get the system into that low Earth orbit position, lost control on the way down. We're actually waiting for confirmation of the net outcome. But there is no human life at stake here. For SpaceX, the goal is to gather data for what is V3 of Starship, brand new, top to tail, completely new architecture and hardware. But as part of it on the Starship side, it's about an hour's journey around the outside of the Earth with the ultimate goal of.

Analysis

SpaceX's recent test flight of Starship V3 revealed a focus on data collection for future missions, despite a minor delay in the demo. The company is heavily investing in AI and Starlink, which is proving to be a significant revenue generator, with 10 million subscribers across 164 countries.

Smart money should note that SpaceX's pivot towards AI and its reliance on Starlink's revenue could reshape its long-term strategy, especially as it aims for a $28.5 trillion addressable market, with a substantial portion tied to AI. The ambitious goal of achieving full reusability of the Starship could also enhance operational efficiency and reduce costs in the long run.

🔍 SpaceX 🔍 Elon Musk 🔍 Starlink 🔍 Bloomberg 🔍 Blue Origin 🔍 Super Heavy

15:50
PDT

SpaceX is focused on making both stages of Starship reusable.

– Musk predicts full reusability by year-end, though timelines are often ambitious.

– Starlink's satellite deployment process has been upgraded for efficiency.

– The success of Starship's reusability could redefine space travel economics.

– Starlink remains a critical revenue source for SpaceX.

space explorationreusable rocketssatellite deployment

▸ Full transcript

Over the Gulf of Mexico. They still are troubleshooting those things. But eventually, SpaceX wants to make the entire rocket, the first stage and the second stage of Starship reusable. That is something that has never been achieved in rocketry. SpaceX has always had their boosters reusable with their Falcon rocket. Blue Origin is attempting to do the same. But to have the second stage, which after the booster cuts off, the second stage is what continues to go into orbit, to have that piece of the spacecraft reusable has never been done before. Musk is actually predicting that this version of Starship, the one we're seeing fly for the first time today, will be the one that achieves that full reusability. He has predicted that will happen by the end of the year. Now, obviously, Musk always puts out ambitious timelines. The moment's come, and it may just be silence. So let's watch the demo of this dummy styling deployment. Let's do it. Down 20 to go. As a reminder, that's one of the things that we upgraded in version three, kind of gave a little soup up to the PES dispenser. So those satellites are going to move out a little bit quicker than they did on previous Starship flight tests. Throughout the door, two more on their way out.

Analysis

SpaceX aims to achieve full reusability of both stages of the Starship rocket, a feat never accomplished in rocketry, with predictions set for the end of the year. The company is also enhancing its satellite deployment capabilities, which could significantly impact its operational efficiency and revenue generation from Starlink.

🔍 SpaceX 🔍 Elon Musk 🔍 Blue Origin 🔍 PES

15:45
PDT

SpaceX's total addressable market is $28.5 trillion.

– $26.5 trillion of that market is focused on AI.

– SpaceX is shifting its identity towards being an AI company.

– Orbital data centers will play a crucial role in SpaceX's future.

– The company's revenue model is evolving beyond traditional aerospace.

AI integrationmarket expansionspace technology

▸ Full transcript

and the hours that followed SpaceX's S1 hitting Santa because it reads like not an American regulatory filing required by the relevant agencies. It reads like a Christopher Nolan sci-fi movie script. And the big number in it, right, was $28.5 trillion. That's the total addressable market that SpaceX sees it going after. But of that 26.5 trillion, it is saying is AI in different guises. Could you speak a little bit about that? We're all here to watch the test of a rocket, the most powerful rocket humankind has ever built and tried to launch. But in the end, this is an AI company. Right. Yeah, exactly. I mean, I think it was pretty surprising to all of us who have been thinking about SpaceX as a rocket and satellite company to see that their future ambitions are basically all heavily on AI. Obviously, the rockets and the launch business will be a part of that, as I mentioned before in the orbital data centers; you need a launch vehicle to enable that computing in space. But yeah, we're really seeing the focus of the company shift towards AI, creating this integrated stack of you have launch, you have connectivity, you have AI, and trying, it's obvious that...

Analysis

SpaceX's S1 filing reveals a staggering $28.5 trillion total addressable market, with $26.5 trillion focused on AI applications. This shift indicates that SpaceX is positioning itself as an AI-centric company rather than just a rocket and satellite provider, highlighting a significant strategic pivot in its business model.

The emphasis on AI suggests that SpaceX's future growth will heavily rely on advancements in artificial intelligence, particularly in its orbital data centers and connectivity services. Investors should note that this transition could redefine SpaceX's competitive landscape and revenue streams, making it a key player in the AI sector as well as aerospace.

🔍 SpaceX 🔍 Elon Musk 🔍 AI 🔍 orbital data centers 🔍 Christopher Nolan

15:43
PDT

Starlink is crucial for SpaceX's revenue, serving as the cash cow for funding Starship development.

– The service has about 10 million subscribers and operates in 164 countries.

– Starlink's subscriber base and revenue have nearly doubled in recent years.

– The service has proven valuable during crises, enhancing its market relevance.

– SpaceX's future ambitions heavily rely on the success of Starlink.

satellite internet growthSpaceX funding strategyIPO market dynamics

▸ Full transcript

But they're facilitated by Starlink. So, Sam, I'm just riffing on that. I think it's a good time to kind of say, what do we learn about Starlink? And also on this mission, they're going to deploy dummy payloads to represent Starlink in future generations of the Starlink satellite. Let's do the basics. What is Starlink? Why does it matter to SpaceX's future? Totally. So Starlink is SpaceX's internet from space service. So it is a network of satellites that basically beam down internet to subscribers. An individual consumer can tap into this by buying a terminal in which they can receive that internet service from. What we really learned about Starlink in SpaceX's S1 filing this week was that it is the revenue generator. It is the cash cow of the entire business. SpaceX is putting so much money into Starship using that money to develop it. It's relying on funds from Starlink. They have about 10 million subscribers in 164 countries. It's proven to be a really, really valuable asset in times of war and natural disaster. Over time, we've seen subscribers jump, nearly double over the past couple of years. We've seen revenue nearly double over the past couple of years. So it seems like Starlink and its connectivity service is really...

Analysis

SpaceX's Starlink has emerged as a critical revenue generator for the company, with approximately 10 million subscribers across 164 countries. The reliance on Starlink's funds to develop the Starship program highlights its importance in SpaceX's long-term strategy, especially as they aim for ambitious projects like orbital data centers and lunar bases.

Smart money should note that Starlink's rapid subscriber growth and revenue nearly doubling over the past couple of years position it as a resilient asset, particularly valuable in crisis situations. This dependency on Starlink for funding could influence investor sentiment as SpaceX approaches its anticipated IPO, potentially affecting its valuation and market perception.

🔍 SpaceX 🔍 Elon Musk 🔍 Starlink 🔍 Falcon rocket 🔍 Bloomberg News 🔍 XAI

15:41
PDT

Super Heavy booster experienced a loss of control during the test flight.

– SpaceX's focus is shifting towards establishing a moon base.

– Elon Musk stands to gain one billion shares if a Mars colony is established.

– The Starship test flight is critical for future missions and IPO plans.

– AI integration is becoming a central theme in SpaceX's strategy.

space explorationAI integrationIPO strategy

▸ Full transcript

SpaceX was established to make life multi-planetary, and Elon Musk has always had his eyes on colonization of Mars. However, over time, the focus has shifted to include AI as a main component of the company, whether through Orbital Data Centers or the acquisition of XAI. Recently, Musk and SpaceX have announced plans to move closer to the moon and focus on establishing a moon base, while still maintaining long-term goals for Mars colonization. Notably, one part of the S1 document states that Musk stands to gain one billion shares by creating a colony on Mars. To many, this sounds like science fiction, but it is literally in the S1. At T plus 11 minutes into this, you are looking at Starship v3, which features completely re-engineered architecture and brand new hardware.

Analysis

SpaceX's recent test flight of the Starship has revealed significant challenges, particularly with the Super Heavy booster, which reportedly fell out of control over the Gulf of Mexico. This incident raises concerns about the reliability of SpaceX's new hardware and its implications for future missions, including plans for lunar and Martian colonization.

Investors should note that while SpaceX's ambitions remain focused on Mars colonization, the shift towards lunar bases and AI integration indicates a broader strategic pivot. The potential for Elon Musk to gain additional shares tied to Mars colonization adds a layer of complexity to the company's valuation and future performance expectations.

🔍 SpaceX 🔍 Elon Musk 🔍 XAI 🔍 Bloomberg Television 🔍 Bloomberg News 🔍 AI

15:38
PDT

Super Heavy booster lost control during test flight.

– Starship spacecraft continues its mission successfully.

– SpaceX's IPO is anticipated to be the largest in history.

– Competition in lunar lander development is intensifying.

– Reliability of new hardware is critical for future missions.

space explorationIPO dynamics

▸ Full transcript

They still have things to figure out, especially with this upgraded architecture. So, you know, only time will tell, and Glue Origin is also working on their own version. So, you know, it's really a competition between these two to see who can perfect a lunar lander quicker. I’m going to correct something that I said a moment ago: the image that was shown on the screen briefly. I said that it appeared to be Starship prematurely reentering. I was wrong. What it was was the Super Heavy booster portion, which is the 33 Raptor engines, the lower half of the full stack. Bloomberg News headline on the terminal: Super Heavy appears to be falling out of control, and we're waiting on more headlines. One has just hit the terminal as I speak, that SpaceX loses the Super Heavy booster just over the Gulf of Mexico. So we'll wait for more details. If you think about the history of the Starship tests, this is the 12th test flight, but again, brand new hardware top to tail for both the spacecraft and the Super Heavy booster. But what we are still seeing is Starship, the spacecraft part, continue on its mission around the world. What's so interesting is, I guess, Santa, like the way I look at it, is there are, as outlined in the S1 document, the story that SpaceX is trying to tell in its IPO. And if you're joining us on BlueBug Television and Radio, and you don't know, SpaceX in the coming weeks will probably conduct the biggest public listing or IPO in history.

Analysis

SpaceX's Super Heavy booster appears to be falling out of control, with reports confirming its loss over the Gulf of Mexico. Meanwhile, the Starship spacecraft continues its mission, highlighting the challenges faced in the latest test flight and the implications for SpaceX's upcoming IPO.

The failure of the Super Heavy booster raises concerns about the reliability of SpaceX's new hardware, which is crucial for its ambitious plans, including the deployment of a million spacecraft. Investors should note that the success of Starship is pivotal not only for SpaceX's future but also for the broader competitive landscape in space exploration.

🔍 SpaceX 🔍 Blue Origin 🔍 IPO 🔍 Glue Origin 🔍 Super Heavy 🔍 Bloomberg News

15:34
PDT

SpaceX's Starship is crucial for future projects.

– Potential issues with the booster could impact launch reliability.

– The planned network of spacecraft relies on Starship's success.

– Operational risks are heightened with ambitious space projects.

– Delays in Starship's performance could affect market confidence.

space explorationoperational risk

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But because when the S1, which is the filing a company makes when it plans to IPO, hit on Wednesday evening, you and I went through it for hours and everything that SpaceX plans to do is based on the success of Starship and Starship not just working but being reusable. Talk me through that part. Yeah, totally. So you know, all of Elon Musk's ambitions for SpaceX are heavily dependent on Starship. You have their attempt for orbital data centers, which are space-based data centers. They are planning a network of about one million spacecraft to orbit the Earth and to process data on board and compute powered by constant energy from the Sun. Now how do you get those one million spacecraft up there? You have to use Starship. And they are betting that Starship will be able to deliver these spacecraft. You can't do that with their current workhorse Falcon rocket. You just need the amount of quantity that Starship, only Starship can deliver. Thank you. Thank you. I'm going to jump in here. We just passed the T plus three minutes, 30 seconds mark. That's on the chronology is supposed to be the boost back burn shut down. We're hearing on the live feed from SpaceX and our friend and colleague, Lauren Grush, and the rest of the newsroom monitoring this, like there is some kind of issue on the booster and the booster may be falling out of control. We can see.

Analysis

SpaceX's future ambitions hinge on the success of Starship, which is essential for deploying a planned network of one million spacecraft for orbital data centers. The current test flight faced potential issues with the booster, raising concerns about its reliability and control during launch.

Smart money should note that the reliance on Starship for ambitious projects may introduce significant operational risks, particularly if the booster experiences failures. The ability to deliver spacecraft at scale is critical, and any setbacks could delay SpaceX's broader strategic goals in space-based data processing.

🔍 SpaceX 🔍 Elon Musk 🔍 IPO 🔍 Lauren Grush

15:31
PDT

Starship's lift-off demonstrates significant thrust capabilities.

– Live feed quality showcases advancements in satellite technology.

– Next critical phase involves main engine cut-off and booster separation.

– SpaceX's performance may influence future aerospace investments.

– The mission's success could enhance confidence in commercial space travel.

aerospace technologysatellite internet

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So far so good. You're looking at 33 Raptor engines generating 16.5 million pounds of thrust at the moment of lift-off, twice the power of the Saturn V vehicle which took mankind to the moon last. That is a downward-facing camera from the middle of the stack. We just went through MaxQ, which is the moment where there's the most stress on the combined launch system, the moment of maximum aerodynamic pressure. So what's next? We're going to get to the bigger picture. We've got plenty of time to chat here. Beautiful pictures facilitated by Starlink, which is SpaceX's satellite-based internet connectivity. It's unbelievable really that in this age, the quality and clarity of the picture is as a rocket tears through the air. When it throttles up to maximum speed, it will be traveling 17,500 miles per hour at peak velocity. The next kind of big moment in this mission is Miko, main engine cut-off, super heavy engines cut-off, and then there's a hot staging where the super heavy booster separates from the Starship spacecraft.

Analysis

SpaceX's Starship successfully lifted off with 33 Raptor engines generating 16.5 million pounds of thrust, surpassing the power of the Saturn V vehicle. The mission is progressing through critical phases, including the moment of maximum aerodynamic pressure, with the next key event being the main engine cut-off and booster separation.

The clarity of the live feed, facilitated by Starlink, highlights the advancements in satellite-based internet technology. As the mission approaches peak velocity, the efficiency and reliability of SpaceX's systems could set new benchmarks for future space endeavors, potentially influencing investment in aerospace technologies.

🔍 SpaceX 🔍 Starship 🔍 Raptor engines 🔍 Saturn V

15:29
PDT

SpaceX's Starship test flight is underway with a planned splashdown.

– A hold at T minus 40 seconds is a normal part of the countdown.

– Previous issues were related to the connection arm, not the spacecraft.

– Technical challenges could impact future launch schedules.

– Monitoring the synchronization of automated systems is crucial.

aerospace engineeringlaunch schedules

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Golf all being well, and the bottom half super heavy booster, the plan is for it to splash down, sorry, in reverse, the booster is splashing the golf spacecraft to splash down in the Indian Ocean. Now, pending any holds because a hold at T minus 40 seconds is baked in, and we tried to do this 24 hours ago, and we're going to miss you, so we'll wait for that. But as it stands, it looks like from Boca Chica, Texas, on a brand new pad, Pad 2, that SpaceX will attempt the 12th test flight of what is a brand new Starship. I'm looking at the clock and I see a hold for now at T minus 40 seconds. Again, that's normal. SpaceX bakes that in to allow automated systems to catch up with one another. Yesterday, the issue was not the Starship spacecraft, nor the super heavy booster, nor the stack itself. It was the pin that holds the arm connecting the tower. I see the clock is now resumed, T minus 30 seconds. And I'm waiting for that clock to refresh. The team will advise us when it comes back and what's going on. We're at T minus 22, T minus 21. So with that, what we're going to do is hand it over to the SpaceX feed and listen in to the final moments of countdown. One is 10, seven, six, five, four, three, ignition.

Analysis

SpaceX is preparing for the 12th test flight of its new Starship, with a planned splashdown in the Indian Ocean. A hold at T minus 40 seconds is standard procedure to allow automated systems to synchronize before launch.

The recent issues were not with the spacecraft itself but with the connection arm to the tower, indicating potential engineering challenges that could affect future launches. Smart money should note the implications of these technical hurdles on SpaceX's timeline and operational efficiency.

🔍 SpaceX 🔍 Starship 🔍 Indian Ocean 🔍 Boca Chica

15:23
PDT

BYD's profit has dropped 20% year-on-year.

– The Chinese auto market is highly competitive.

– BYD's flash charging technology is seen as a competitive advantage.

– Government subsidies for EVs in China are being reduced.

– Signs of recovery in the Chinese market are emerging.

Chinese auto marketEV competitiongovernment subsidies

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The way. But for all the optimism about international growth, the company has faced major challenges in its largest market back home in China. I want to talk about the here and now in the Chinese market. How would you characterize the current state of the Chinese auto market? The Chinese auto market is super competitive. BYD recently posting a roughly 20% drop in year-on-year profit, the first time since 2021. Is that as bad as it gets? You think? No, it's nothing. Because first, you need to understand the standard scenario behind where price war and competing with an EV car. Because everything we do, the next day our company will copy. But then for BYD now, we bring another protection river, it's our flash charging technology, the second generation blade cell. So this we call the protection river, I think it will keep our competition several years behind. Are you seeing signs of recovery in the Chinese market? Yes. And the second, the market in China in Q4, Q1 is not good because all the subsidy, even we have a small portion left, is 100% gone. Recent moves to wind down government support are a headwind for China's EV makers. But Fisher says subsidies haven't been the only driver of their rise, especially in BYD's case. How much of BYD's success is down to Chinese government?

Analysis

BYD has reported a 20% drop in year-on-year profit, marking its first decline since 2021, amidst a highly competitive Chinese auto market. Despite this setback, the company is optimistic about its flash charging technology and second-generation blade cell, which it believes will keep competitors at bay for several years.

The recent wind-down of government subsidies poses a challenge for China's EV makers, yet BYD's reliance on innovation and technology may provide a buffer against market volatility. Smart investors should note that while the market is currently tough, signs of recovery are anticipated, indicating potential for future growth.

🔍 BYD 🔍 China 🔍 EV 🔍 The Chinese 🔍 But Fisher

15:20
PDT

BYD's lowest-cost model in the UK is priced under £19,000.

– The company positions itself as a value-for-money player, not a low-cost disruptor.

– BYD aims to be a key global player in the automotive industry.

– Alfredo Altevia, a former Fiat Chrysler executive, is now advising BYD.

– The focus is on both volume and premium positioning in Europe.

automotive competitionChinese market expansion

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Not all of BYD's vehicles target the luxury space. The lowest-cost model in the UK, where Chinese cars now account for one in every ten new vehicles sold, goes for under £19,000 or about US$25,000. Cheap but not the cheapest. Nor is that the goal according to BYD's special adviser, Alfredo Altevia. What do you say to regulators and consumers? is how to convince them that BYD isn't just a low-cost disruptor. BYD has never been and will never be a low-cost player in any segment. Our main selling argument is value for money. Altevia came to BYD after a career as an executive with the competition. As the former head of Fiat Chrysler's European operations, he was a close aide to former CEO Sergio Marchione and was considered a top contender to take over his role. What are the real ambitions of BYD in Europe? Is it volume or is it positioning in the premium segment or something else? I want to answer with our volume target because you will not believe me but certainly we want to be one of the key players in this industry on a global scale. If you were an auto executive at a European legacy car maker right now, as you were once, how worried would you be?

Analysis

BYD emphasizes its commitment to value for money rather than being a low-cost disruptor in the automotive market. The company aims to position itself as a key player globally, particularly in Europe, despite its competitive pricing strategy.

The insight here is that BYD's strategy is not just about volume but also about establishing a strong brand presence in the premium segment. This could signal a shift in consumer perception of Chinese automakers, potentially impacting market dynamics and competition among legacy European car manufacturers.

🔍 BYD 🔍 Alfredo Altevia 🔍 Fiat Chrysler 🔍 Sergio Marchione 🔍 UK 🔍 Europe

15:18
PDT

BYD has 120,000 R&D engineers and invents 52 patents daily.

– The Yang-One Unite is claimed to be the fastest car on the planet.

– BYD's vertical integration enhances its innovation speed.

– The Denzer Z9 GT features superior battery technology.

– BYD sees no significant competition in the premium EV segment.

EV innovationautomotive competition

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What do you think the biggest structural advantage is that BYD has over its competitors? Two things. One is technology. To date, we have 120,000 R&D engineers. We invent 52 patents per day. The second is BYD's very strong vertical integration capability. What does this mean? It means we can do innovation much faster; we can do cool stuff much more than any other people. That's the reason you saw BYD in the past two years. We have the sports car called the Yang-One Unite. We have 3,000 horsepower. That is the fastest car on the planet. It's capable of well over 300 miles an hour. This feels like China turning up and just saying, yeah, we'll have all the records. Thank you. Sadly, BYD didn't let us race their hypercar to the Arc de Triomphe, but we did drive their latest luxury EV, the Denzer Z9 GT. Who do you see as your main competitor? Who is the brand that you're really competing with in this premium segment now? On the... With the Denzer Z9. On all the cool technology in this car, I did not see any competition here. Given the company's origins, it's no surprise that the carmaker's key feature might be its battery. The range is long and the charge is fast, faster than anything else on the market if done through their planned system of flash chargers.

Analysis

BYD's competitive edge lies in its technological prowess and vertical integration, allowing for rapid innovation and product development. The company claims to have the fastest car globally, the Yang-One Unite, showcasing its ambition to dominate the automotive sector with superior battery technology and performance.

Smart money should note that BYD's extensive R&D capabilities, with 120,000 engineers and a high rate of patent generation, position it well against competitors in the premium EV segment. The focus on fast charging and long-range capabilities could disrupt traditional automotive players, particularly in the luxury market.

🔍 BYD 🔍 Yang-One Unite 🔍 Denzer Z9 GT 🔍 EV 🔍 GT 🔍 One Unite

15:16
PDT

BYD has surpassed 4 million sales, ranking in the top 10 automakers globally.

– Quality and cost efficiency of BYD vehicles are perceived as superior to Western brands.

– Stella Lee is pivotal in BYD's international market expansion.

– The shift in perception indicates growing competitive pressure on Western automakers.

– BYD's transformation from a battery startup to an auto manufacturer is noteworthy.

automotive competitionglobal market expansion

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Nearly on the map, if you know what I mean, if you look at the chart to having 4 million plus sales and being in the top 10 automakers in the world. You come from the industry, Ryan. How is BYD viewed within the industry? Similar to Musk's comment, like who are these? I think now people are changing it to, oh, yeah, we're kind of scared for a better idea of just how seriously BYD and the Chinese auto sector broadly are being taken now. Just listened to Ford CEO Jim Farley speaking last year. It's the most humbling thing I've ever seen. Their cost, their quality of their vehicles is far superior to what I see in the West. We wanted to get a first-hand look at the battle for the future of automaking, so we went to Paris to see the rollout of BYD's new car. There, we spoke with the woman on the front lines at the firm's global expansion. Why Paris? Yeah, very good question. Paris is the city full of energy and also art. Stella Lee has led BYD's charge into markets beyond China, including here in France. As the company's number two, after its founder, Lee also helped engineer its transformation from a battery startup into an auto manufacturing powerhouse. So you know at John BYD, when BYD is a very small company, they started with 20 people, 350,000 US dollar investment. So I joined BYD the second year.

Analysis

BYD is rapidly establishing itself as a formidable player in the global automotive market, achieving over 4 million sales and ranking among the top 10 automakers worldwide. The company's quality and cost efficiency are now being recognized as superior to Western competitors, prompting a shift in industry perception.

Stella Lee's leadership in BYD's expansion into international markets, particularly in Europe, highlights the company's strategic approach to growth. This transformation from a battery startup to an automotive powerhouse signals a significant competitive threat to established Western automakers, which may need to reassess their strategies to maintain market share.

🔍 BYD 🔍 Stella Lee 🔍 Ford 🔍 Jim Farley 🔍 China 🔍 Paris

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