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- [00:00]
The Hartford Representative
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- [01:14]
Matt Atkinson
so there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now a Global workforce of 300,000 can use AI to fill their HR questions, resolving 94% of common questions. Questions, not noise. Proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business IBM,
- [01:47]
Podcast Host / Bloomberg Intro Announcer
Bloomberg Audio Studios Podcasts Radio News this is Bloomberg Business Week Daily reporting from the magazine that helps global leaders stay ahead with insight on the people, companies and trends shaping today's complex economy. Economy plus global business, finance and tech news as it happens. The Bloomberg businessweek Daily Podcast with Carol Massar and Tim Stanweck on Bloomberg Radio.
- [02:16]
Bloomberg Businessweek Host / Interviewer
We're talking about shares of eToro. They are definitely trading down in today's session. That's following debt following earnings that we got earlier and despite first quarter adjusted EPS beating estimates and funded accounts coming in above estimates. What's interesting we premarket the stock was rallying stock by the way, up about 5% so far here in 2026. The company did highlight in its release how it introduced 24. 7 trading for commodities equities and indices, added Japanese equities and launched crypto trading in New York during the first quarter. So we're going to talk to the company CEO.
- [02:48]
Bloomberg Businessweek Co-Host / Interviewer
We got Yoni Asia with CEO and co founder of Etoro. He joins us here in the Bloomberg Businessweek studio. Good to have you on the program. Trading activity on the platform. You have a real time view on this. There are some echoes right now of 2021 meme stocks. What are you seeing?
- [03:06]
Yoni Asia
So what we're seeing actually is people that switched from crypto into commodities, so switched from sort of low volume declining Q4 into Q1 crypto into very exciting opportunities in metals and in oil and natural gas. So that's something that we've definitely seen a surge in commodities activity happening in Etoro.
- [03:29]
Bloomberg Businessweek Host / Interviewer
Super aggressive like the move like was it very clear the amount we were
- [03:34]
Yoni Asia
surprised how many people who originally joined Etoro into crypto into equities shifted to where the interest is right to where the volatility is. Days like today, right where CPI is suddenly surprising people and stocks go down. It's like retail are consistently by the way for the past four or five years are actually grabbing in my view a lot of the beta from institutions because institutions are immediately going risk off. Let's figure out what's happening here. And retail are like stocks are down 10%. Let's, let's buy some of these stocks in better prices than yesterday.
- [04:10]
Bloomberg Businessweek Host / Interviewer
So yeah, on a day like today, I don't know if in real time how much you can share.
- [04:14]
Yoni Asia
Like are you, I know today is going to be elevated trading engagement on Etoro on stocks. There's no question about it. That's what volatility does. It increases the interest of retail investors. They log in, they look at what's happening, they start analyzing. I think the next stage both of growth for Etoro but generally in the entire retail investment industry is where we have AI agents that are 24,7 looking at the markets which are transitioning to 24,7 and actually looking at the markets and trading in users accounts. So that's one of the recent launches we did. It's an agent portfolio. So you can take a part of your portfolio and say take $5,000 out of my 50,000 portfolio and now create an agent portfolio that tracks the movements in the markets in the tech stocks, look at what's rising and falling their EBITDA multiple and trade based on that strategy.
- [05:13]
Bloomberg Businessweek Co-Host / Interviewer
So essentially you, you have a tool where you can use natural language to tell the natural language.
- [05:21]
Yoni Asia
Either with eToro's agent Tory agent based on Grok 4.2 we talked about models before that or you go into cursor and we're connected there as an app where you go into cloud code or Your openclaw and do it there. So it's either bring your own agent.
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Bloomberg Businessweek Co-Host / Interviewer
Are people using this?
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Yoni Asia
It's early days. We just launched it two or three weeks ago. We're seeing 50% week over week growth and already more than 500,000 trades done in agent portfolios.
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Bloomberg Businessweek Co-Host / Interviewer
Why are you using so many different LLMs or different AI providers?
- [05:55]
Yoni Asia
So we've seen, I would say November last year with an inflection point with Opus 4.5. Now we're at Opus 4.7. But what we've seen is actually from Claude. Claude. But when we for example Eveld, which is checking how good the model is, it's looking at what's happening in the markets right now. Actually Ex Grok was the best because it has all the real time information. When we're looking at developer tools, Cursor is great. When we're looking at enterprise level knowledge, OpenAI is great. So we've decided to enable Etorians to use all of the tools because what I'm seeing is I'm seeing people Suddenly delivering a 10x or 20x or even 50x at what they were able to deliver pre AI.
- [06:43]
Bloomberg Businessweek Host / Interviewer
How many people on the platform are using AI tools or Agentic AI?
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Yoni Asia
It's not something that we've yet to announce, but we have seen a tenfold increase in the usage of AI.
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Bloomberg Businessweek Co-Host / Interviewer
Both from zero, basically.
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Yoni Asia
Employees? No, not from zero. We had, we launched originally Tauri, I think about 18 months ago but since we moved it to a frontier model to Grok, we've seen roughly 10x growth.
- [07:09]
Bloomberg Businessweek Host / Interviewer
Does it? So okay, talk to us about accounts and obviously there's accounts that grow because the market goes up or their investments go up. But talk to us about acquiring new people onto the platform. What kind of growth have you seen?
- [07:21]
Yoni Asia
So we've seen 12% year over year growth in funded accounts and again every time something happening that's interesting in the markets, we see elevated accounts growth as well as Etoro. So part of our marketing strategy which is now being powered by AI is finding those opportunities in the markets, then finding the right segments of customers that might be interested in what's happening in the markets and get that message to them not only in Etoro but on Google or on X or in Tabula or on Meta.
- [07:52]
Bloomberg Businessweek Co-Host / Interviewer
What about prediction markets?
- [07:54]
Yoni Asia
We are now, we've just recently announced the acquisition of Xango which is a new non custodial wallet for Etoro, which supports now thousands of new crypto assets for Etorians. It enables also Defi solutions and prediction markets will be part of the defi solutions offered on Zyngo.
- [08:12]
Bloomberg Businessweek Co-Host / Interviewer
When will you offer prediction markets on the platform?
- [08:15]
Yoni Asia
So we're now setting up the timelines. It's an acquisition that was announced and closed two weeks ago or last week.
- [08:21]
Bloomberg Businessweek Co-Host / Interviewer
Yeah, we spoke about Bloomberg so and
- [08:24]
Yoni Asia
so we're very excited about that opportunity. And we are also in the process of registering our treadfy business as futures trading which allows prediction markets as well.
- [08:34]
Bloomberg Businessweek Co-Host / Interviewer
Will you offer sports predictions on the
- [08:36]
Yoni Asia
platform on the tread fi part probably will wait with sports and focus more on financials. So we do, we do believe that there's a lot of value of price formation hedging opportunities in anything related to finance. I haven't checked the recent poly market on whether we beat earnings for example today. I'll check it out after the show. So I do think there's.
- [09:01]
Bloomberg Businessweek Host / Interviewer
So you do look at it.
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Yoni Asia
I do look at it. We have like our own interface now. An app on our app store enables you to actually look at the prediction markets.
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Bloomberg Businessweek Host / Interviewer
Crypto market just got about 25 second. How has that business changed? I mean Bitcoin's down 36% from a high back in October, early October exuberance.
- [09:19]
Yoni Asia
No, I think what we're seeing, well four year cycles in bitcoin, we've seen that before. We topped in October. Now we're going down a bit. I think eventually it recovers which is all time high again. But I think a lot of the dialogue has shifted to capital markets moving on. Chain 247 is a great example of that. But you have all of the regulators in the U.S. also talking about capital markets moving on.
- [09:39]
Bloomberg Businessweek Host / Interviewer
They are indeed Yoni Asia. He is the CEO and co founder of Etoro, joining us right here.
- [09:45]
Bloomberg Businessweek Co-Host / Interviewer
Stay with us. More from Bloomberg Businessweek Daily coming up after this.
- [09:52]
The Hartford Representative
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- [10:52]
Bloomberg Businessweek Co-Host / Interviewer
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- [11:26]
Bloomberg Businessweek Host / Interviewer
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- [11:27]
Bloomberg Businessweek Co-Host / Interviewer
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- [11:30]
Bloomberg Businessweek Host / Interviewer
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- [11:33]
Bloomberg Businessweek Co-Host / Interviewer
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- [11:50]
Bloomberg Businessweek Host / Interviewer
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- [11:52]
Bloomberg Businessweek Co-Host / Interviewer
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- [11:57]
Podcast Host / Bloomberg Intro Announcer
You're listening to the Bloomberg Business Week Daily podcast. Catch us live weekday afternoons from 2 to 5 Eastern. Listen on Apple CarPlay and Android Auto with the Bloomberg Business app or watch us live on YouTube.
- [12:13]
Bloomberg Businessweek Co-Host / Interviewer
May remember last week at the Milken Institute Global Conference? Carol, you were there.
- [12:16]
Bloomberg Businessweek Host / Interviewer
I was.
- [12:17]
Bloomberg Businessweek Co-Host / Interviewer
Did you see Larry Fink?
- [12:18]
Bloomberg Businessweek Host / Interviewer
Yeah, you know, coffee every morning? No, we did not. But he definitely was a big voice that got a lot of attention.
- [12:25]
Bloomberg Businessweek Co-Host / Interviewer
He was on stage with Bruce Flatt of Brookfield too. They've both been very bullish on AI and data centers. They've committed between them to tens of billions of dollars to the tech build out all over the world. Larry Fink actually suggested that the demand for compute power is so large that a new asset class will spring up.
- [12:42]
Chris Palmeri
The United States is short power, we're short computer, we're short chips, and there are going to be shortages in all three and memory. Four things I actually believe a new asset class will be buying futures of compute. We just don't have enough compute power right now.
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Bloomberg Businessweek Co-Host / Interviewer
A new asset class will be buying futures of compute. That was Larry Fink last week at Milken. It's almost like he could see the Future just today. U.S. derivatives Exchange, CME Group and the index provider Silicon Data teaming up to create a futures market for computing power.
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Bloomberg Businessweek Host / Interviewer
I love this. Cilla Brush and Cat Doherty share the byline Cilla is Bloomberg News investing reporter. Kat is Bloomberg News finance reporter. It is among our most read on the Bloomberg and they both are here in our Bloomberg Interactive Broker studio. Where shall we be? How did this happen? Or how did we know that this was happening? Or has it been.
- [13:36]
Cilla Brush
The first, first I heard it was even an idea was actually Larry's comments at Milken and I just sort of. We did a short story. I got a decent amount of attention and I started looking around to see whether anyone was actually doing this or whether it was just sort of a thought bubble on stage. Lo and behold, clearly people were thinking about this for a long time and people have been at it.
- [13:59]
Bloomberg Businessweek Host / Interviewer
So Larry knew something.
- [14:02]
Cilla Brush
You know, I think, I think Larry's view on AI has been pretty consistent for a while, that, you know, a lot of money has gone into it. He thinks much more money will go into data centers and AI. He thinks very clearly it's not a bubble. He's been consistent for months. He was said as much last week, actually. And as he said sort of on stage that like basically there's a shortage across all the sort of pieces of the tech stack. And he's investing, not him personally, but the firm like Brookfield, like many others, is investing tens of billions and maybe at some point even more across all of the, you know, whether it's public equity, private investments, data centers, debt and equity. Yeah. And pricing for the demand. He basically, as he said, is, you know, the short supply, endless demand and the pricing for where those two meet is kind of unclear. And that's kind of what it gets to. The story today is setting a price for compute or computing power.
- [15:05]
Bloomberg Businessweek Co-Host / Interviewer
Enter CME Group and Silicon Data. Cat, you report a lot on, on the infrastructure, the exchanges. CME Group out in Chicago, Terry Duffy out with a statement about this. How is this going to look at CME Group?
- [15:18]
Cat Doherty
So it's funny, before today's announcement, the various steps take aside, CME were starting to gradually build. So Silicon Data created an index that basically gave the pricing that fluctu, which before they created this index was not there. So once you have the underlying price that is tracking the asset class being compute, then you can create future contracts and you need an exchange to list those future contracts. Enter cme. So today with CME entering, there are other startups that are building very, very similar either databases or like cme, they have exchanges that are Starting to create this ecosystem. CME is not going to be the only one that is going to trade futures or other derivatives products on compute power. But because of CME's size, that's why you're seeing the attention and everyone turn to this story today. It's because it signals to the rest of the industry, hey, this is going to be a serious asset class. And not only is it going to be good for the hyperscalers, the AI companies that need to hedge some of the risk and the costs that are associated with building and using AI, but you're also going to have investors think trading desks that are going to just add compute as the same as if they would be trading oil. They're going to start adding this to their own trading baskets.
- [16:53]
Bloomberg Businessweek Host / Interviewer
So is that how we liken it? Like, think of it as like you were buying an oil futures contract. Is that what is it the same
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Cat Doherty
apples to apples, at least for the futures contracts and how they're constructed, that's how they're going to be traded. So there's going to be the underlying price. And then when you're buying the futures contract, you are betting on the future price of said asset class that is underlying.
- [17:17]
Cilla Brush
I think one of the things they came across today was that there's a lot of different pricing for computing power at the moment. And setting a sort of benchmark across markets or across geographies, or in this case across different suppliers. Or essentially companies renting computer power is kind of the benefit, as they see it, of having a price to transparency. Basically, futures are typically tied to a commodity, whether it's interest rate futures or oil futures or futures. This is basically a standardized contract for power, computing power in this case. And having a price for it will essentially allow a developer to lock in the price in one month, one year time, so that they're not surprised that it has rocketed or in some cases maybe have collapsed. And for anyone building a data center, they want to basically figure out how big of a data center to build, how much will the computing power and the graphics, the chips actually cost. So this is a key underlying component, also kind of a commodity in that way of figuring out how much to
- [18:22]
Bloomberg Businessweek Co-Host / Interviewer
invest would it provide us as observers of this market, people who want to know if we're overbuilding with transparency into sort of like a window into the future.
- [18:34]
Cat Doherty
I do think that when you have a market like this that is starting, this is a nascent market, when you think of market structure, the more trading that there is, the more price transparency, there's going to be. So right now, if there's only if there's very little trading in these futures contracts, then it might not be the most, I wouldn't say accurate, but it might not be the best representation overall of what the industry is dealing with. But over time, as more of these companies start using these future contracts to hedge the pricing and the cost and the questions that Cilla was talking about when they're building that ecosystem as it grows is going to become more and more valuable. So it is going to be the signal to not just the AI and tech industry, but overall finance is going to look to in the same way that when there's an announcement about the war in Iran and everyone looks to what's going on with oil and gas prices, that is going to start to reflect in this marketplace too. But it is new and so it's not going to be right out of the gate the same liquidity, the same type of prices that you see in these markets that have been around for four years.
- [19:55]
Bloomberg Businessweek Host / Interviewer
Investors love to. Traders love to trade. Right. But is there demand for it? Is there interest or should we just assume that it will be there?
- [20:02]
Cilla Brush
Well, what's interesting is one of the companies that's part of the announcement today is a firm called DRW and it's one of the largest trading firms, one of the biggest traders on futures markets in Chicago, based in Chicago, to your point. Yes, traders like to trade, but it's always one side of the trade. There's another buyer for every seller. Right. And so for data centers that are building or a chip processing company, they want to figure out the price of computing power. Another firm like a DRW or another trading firm might want to speculate and wager up and down on a moment's notice. So there's a price setting. It just goes back to the basics of markets. Right? It's a price setting mechanism in this case for what CME and others are calling sort of like the benchmark part of the 21st century. The next our future world is basically relying so much on AI and so much on the underlying computing power.
- [20:58]
Bloomberg Businessweek Host / Interviewer
I do think about though, the overbuilt. Right. And if all of a sudden you see the futures contract or not as much interest or like it will be interesting if it is truly an indicator of maybe an overbuild. What, what a cool story. Syllabus. Cat Doherty still of course Bloomberg News investing reporter and Cat is Bloomberg News finance report. Check it out, it is among the most read. Guys, thank you so much. Really appreciate it.
- [21:23]
Bloomberg Businessweek Co-Host / Interviewer
Stay with us, more from Bloomberg businessweek Daily coming up after this.
- [21:30]
Podcast Host / Bloomberg Intro Announcer
You're listening to the Bloomberg Business Week Daily podcast. Catch us live weekday afternoons from 2 to 5 Eastern. Listen on Apple CarPlay and Android Auto with the Bloomberg Business app or watch us live on YouTube.
- [21:46]
Bloomberg Businessweek Host / Interviewer
Know what's happening around this time?
- [21:48]
Bloomberg Businessweek Co-Host / Interviewer
Is it a media related thing?
- [21:50]
Bloomberg Businessweek Host / Interviewer
We got the Disney upfronts underway.
- [21:52]
Bloomberg Businessweek Co-Host / Interviewer
Disney upfronts. We got news this week that NBC is doing a version of wordle on TV with Savannah Guthrie.
- [22:00]
Bloomberg Businessweek Host / Interviewer
Everything's a game show.
- [22:01]
Bloomberg Businessweek Co-Host / Interviewer
Everything is a game show.
- [22:03]
Bloomberg Businessweek Host / Interviewer
It's funny until everything's a game show.
- [22:05]
Bloomberg Businessweek Co-Host / Interviewer
Well, you know, we were talking about this earlier on our editorial call and how upfronts don't have the same that they used to have.
- [22:11]
Bloomberg Businessweek Host / Interviewer
It's a different ad market.
- [22:12]
Bloomberg Businessweek Co-Host / Interviewer
It's a different ad market. It's a different era when it comes to the way people are consuming media. Chris Palmeri is all over it. He's Bloomberg News senior editor. He's also entertainment team leader. He joins us from the LA bureau. He's doing double duty with me. We made him talk about FanDuel and DraftKings on the crypto show earlier today. I love that. I said, chris, don't go too far. You're coming back. And he's been in the studio the whole time. Right? You didn't leave yet.
- [22:36]
Bloomberg Businessweek Host / Interviewer
Yeah.
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Bloomberg Businessweek Co-Host / Interviewer
Thanks. Hey, let's talk about upfronts because, you know, earlier in another lifetime, this was the be all end all for a handful of networks. The slate of programming would come out, all the marketing folks would be there, the celebrities would be on stage. Is it still like that?
- [22:56]
Chris Palmeri
Yeah, it is, but it definitely has evolved to your point. I mean, this used to be all about broadcast tv. It's so much less so now. Fox, for example, yesterday spent a lot of time talking about Tubi, their free supported streaming service, and how it's become a Gen Z channel. And they're making new shows about high school and college and things like that Amazon presented. They've talked about their print to screen strategy where they're taking books, which I guess is, you know, where they began. Right. And they've got a Romantasy series with Michael B. Jordan involved. And so yeah, there was so much more than really what we used to think of as broadcast TV.
- [23:37]
Bloomberg Businessweek Host / Interviewer
You know, doesn't, doesn't Netflix want the YouTube model of let everybody else create the content and we'll just put it up there?
- [23:45]
Bloomberg Businessweek Co-Host / Interviewer
I mean they do compete a lot with YouTube.
- [23:47]
Bloomberg Businessweek Host / Interviewer
Yeah, like we always, I always feel like whenever we talk about, you know, Streaming. We always then come back to YouTube and that model. I don't know. I guess, I don't know. How does Netflix think about something like that?
- [24:01]
Chris Palmeri
Well, you know, it's funny, I was just looking at their top 10 because I wanted to see how the Roast of Kevin Hart did on Sunday. And I'm looking at all their shows and it really is so much all over the place. I mean, from where they began, just, you know, a few kind of almost prestige shows to allow, you know, it's CBS times 10. I mean, they've got everything, you know, game shows, whatever. So yeah, it has evolved. The difference though is that they're paying for everything, unlike YouTube where much of it is user generated or other people putting their stuff up on the site.
- [24:37]
Bloomberg Businessweek Co-Host / Interviewer
What about Disney? And I know this is ongoing, so it's not something we can, you know, really know. And there's going to be more to come tonight. But what are expectations for Disney?
- [24:45]
Chris Palmeri
We're not expecting a whole lot in terms of programming. Jimmy Kimmel usually does his thing, so he's been in the news lately. So we'll see if he responds to all that's been going on with Trump calling for him to be fired. Not expecting a whole lot. But Josh d', Amaro, the new CEO, came from the park side, so he may get up and say something. Last year he was just sort of lurking around the Netflix up fronts. Now he may take the stage.
- [25:13]
Bloomberg Businessweek Co-Host / Interviewer
Okay, we could talk, let's talk a little bit about that FCC dispute right now because the FCC is. The FCC's Anagomez urged Walt Disney to keep fighting an early review of its ABC TV station license ordered by the agency last month. She's the sole Democrat among the commissioners and called the review, quote, the most egregious assault on the First Amendment this FCC has taken to date. This is in a letter to Disney CEO Josh d' Amaro yesterday. Is, is, is Disney at risk with this?
- [25:44]
Chris Palmeri
You know, in fact, she said that it's very unlikely that they would lose their station licenses, that this was really just a campaign to put pressure on them. We're definitely seeing a change at Disney. If you think about last year when they settled the Trump lawsuit. You know, Stephanopoulos was accused of defaming the president and they paid 15 million to settle that. You know, they took Jimmy Kimmel off the air last September when people called for it. Very different approach today. No suspension of Kimmel's show and fought back. Disney did in their own sort of blistering response last week to Some of the things that the FCC is pursuing. So why do you think this response
- [26:23]
Bloomberg Businessweek Co-Host / Interviewer
is different from Disney right now, Chris?
- [26:26]
Chris Palmeri
Well, a number of things. One may be just a reflection of that there has been pushback even from the conservatives, Ted Cruz, for example, on what the FCC is doing. And maybe they just feel that even Trump right now is not particularly strong from an approval standpoint. Also, when they took Kimmel off the air last year was a bunch of people canceling subscriptions to Disney plus, if you remember. So they may feel more Disney may feel more emboldened this year.
- [26:56]
Bloomberg Businessweek Host / Interviewer
It's just kind of interesting. I want to go to. Do we talk?
- [27:00]
Bloomberg Businessweek Co-Host / Interviewer
You want to talk Netflix?
- [27:01]
Bloomberg Businessweek Host / Interviewer
Gotta talk Netflix.
- [27:02]
Bloomberg Businessweek Co-Host / Interviewer
Yeah. What do you mean?
- [27:02]
Bloomberg Businessweek Host / Interviewer
The content spending?
- [27:03]
Bloomberg Businessweek Co-Host / Interviewer
Yeah, that's what I want to talk about.
- [27:05]
Bloomberg Businessweek Host / Interviewer
We touched a little bit on it, right? But I mean, that number, when you think about it, $135 billion on films, TV shows in the past 10 years. I mean, Chris, it's a lot. Although, again, going back to Netflix, we kind of touched on this. I mean, Netflix is the one when it comes to a streaming service. Right. That everybody points to. Right. As being so successful.
- [27:29]
Chris Palmeri
Right. And this is really also indicative, and this is the point they were trying to make is how global the business has become. And so in, you know, dozens of countries making original content all around the world. And that's, that's where a lot of that money's going. And you know, everyone's complaining about the loss of production here in Los Angeles, but we're now watching shows in Korea and, and you know, from Made in France and things that never used to happen on TV in the U.S. so,
- [28:01]
Bloomberg Businessweek Co-Host / Interviewer
I mean, you, I like the way you describe it. It's a quote, charm offensive right now because there's been concern about Netflix in Hollywood, especially amid their attempt to get larger and buy Warner Brothers Discovery, Paramount, Skydance, of course, ended up winning on that is. What do you make of the research, though, Chris? The idea that again, I'm reading right from your story, but Netflix says that South Korea saw a 25% spike in airline bookings, according to Netflix that Duolingo posted 22% growth in Korean studies after last year's premiere of K Pop Demon Hunters, for example, it's the idea that it's the Netflix effect, right? It's that their content leads to their investment in content has a compounding effect in ways that you might not see if you're not directly employed. Even if you're not directly employed.
- [28:51]
Chris Palmeri
Well, it was true to them to brand it that way, the Netflix effect. But that's really something that any pop culture moment that becomes viral, that can happen with, you know, we used to see it. You know, there's a new Star wars movie coming out. It might not be as big as the, you know, 1977, but I mean, this is. You know, these things can go viral. They can create all kinds of ancillary businesses. And, you know, it just so happens that Netflix is riding high with all of these subscribers around the world, and they can make things like that happen, but it's not exclusive to them.
- [29:23]
Bloomberg Businessweek Host / Interviewer
Hey, one thing I want to go back to. We mentioned the game show, right? Wordle coming to NBC. I remember years ago doing a whole piece on just game shows also, I guess I think we've also done things on talk shows, but, I mean, are we increasingly. I mean, all of a sudden, you're seeing game shows all over different networks. Is it cheap content, easy content to do? It seems like they often have a big star, often a news anchor, and all of a sudden they're doing a game show as well. Just got about 40 seconds here.
- [29:54]
Chris Palmeri
It's really cheap content, and it's. And it's broad reaching. You know, the whole family can gather around and watch and, you know, we saw the fight last year over Jeopardy. And Wheel of Fortune. Those things are gold mines.
- [30:04]
Bloomberg Businessweek Co-Host / Interviewer
We watch amazing.
- [30:05]
Bloomberg Businessweek Host / Interviewer
We watch it. Both Jeopardy. Not Wheel. Wheel of Fortune.
- [30:09]
Bloomberg Businessweek Co-Host / Interviewer
No. If you're allowed to say that we.
- [30:11]
Bloomberg Businessweek Host / Interviewer
Okay. Are we not allowed to say it?
- [30:15]
Podcast Host / Bloomberg Intro Announcer
Too late.
- [30:15]
Bloomberg Businessweek Host / Interviewer
It's in the ozone.
- [30:16]
Bloomberg Businessweek Co-Host / Interviewer
Oh, okay.
- [30:16]
Bloomberg Businessweek Host / Interviewer
No, but it. Yeah, we're. We're kind of a. You're not a je. We watched.
- [30:19]
Bloomberg Businessweek Co-Host / Interviewer
Oh, Jeopardy. Yeah. But I mean, it's probably not. I don't know, like.
- [30:22]
Bloomberg Businessweek Host / Interviewer
Chris, you watch Jeopardy.
- [30:24]
Chris Palmeri
Uh, sure do. Yeah.
- [30:26]
Yoni Asia
Love it.
- [30:27]
Bloomberg Businessweek Host / Interviewer
Love it. Romaine Bostick wants to get on Jeopardy.
- [30:30]
Bloomberg Businessweek Co-Host / Interviewer
Oh, he better brush up. That's all. I'll say.
- [30:33]
Bloomberg Businessweek Host / Interviewer
He's trying. He's trying.
- [30:34]
Bloomberg Businessweek Co-Host / Interviewer
Yeah, he's trying. Someone who doesn't need to try with us is Chris Palmeri. He's Bloomberg News senior editor. He's entertainment team leader. Chris, thanks so much. Stay with us. More from Bloomberg businessweek Daily coming up after this.
- [30:49]
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Bloomberg Businessweek Co-Host / Interviewer
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Bloomberg Businessweek Host / Interviewer
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- [33:14]
Podcast Host / Bloomberg Intro Announcer
You're listening to the Bloomberg Business Week Daily podcast. Catch us live weekday afternoons from 2 to 5 Eastern. Listen on Apple CarPlay and and Android Auto with the Bloomberg Business app or watch us live on YouTube.
- [33:29]
Bloomberg Businessweek Co-Host / Interviewer
Well, he is part of Ford's most profitable unit. It's Ford's commercial division, the work truck business. It's become the biggest and most profitable growth engine at the automaker. Good to have back with us, Matt Atkinson. He's the North America Sales and Operations Executive Director at Ford Pro. He joins us from Dearborn, Michigan. Matt Good to have you. How are you?
- [33:49]
Matt Atkinson
I'm doing great. Thanks for having me.
- [33:50]
Bloomberg Businessweek Co-Host / Interviewer
Hey, we last spoke a little over a year ago and I'm just wondering, you were very optimistic at that time and I'm wondering how this environment right now compares to back then.
- [34:04]
Matt Atkinson
Yeah, no, great question. And it's always good to chat with you any time of the month, but especially when it's Small Business Month. And last year at this time, we talked about how ambitious we were about our US Business and we grew our market share, we set sales records. And here we are again in National Small Business Month and we've got another great program that's going to really help small business by inviting them to participate in a promotion that's going to pass along employee pricing from our business to theirs and help them through the headwinds that they may be facing. But more importantly to just as our unique Ford way of saying thank you for all small business does to drive this country. And we're looking forward to another good promotional period.
- [34:53]
Bloomberg Businessweek Host / Interviewer
But Matt, as you said, a lot of small business, we talk about it here, higher energy costs. I mean, these guys who run small businesses, for the most part, you know, they are on a tight budget. So I'm just curious, what are you hearing from the small business community? What can you tell us, especially since, since this war started. Here we are in week 10. What, what are you guys seeing? Because you have a great window into that world.
- [35:19]
Matt Atkinson
Yeah, you are exactly right. You know, small business trusts Ford trucks and vans more than any other brand. And so staying connected with, with that community matters to Ford, but it matters to the country. You know, these, there are 95 billion skilled labor jobs tied to what we call the essential economy. They're represented in about 3 million businesses and it contributes 12 trillion in GDP to the country. And so we kind of feel like we've got this unique position with the trust that we've built over time to help where needed. And what they tell us they want consistently is they want transparency and they want to minimize the disruptions that they're having. And so the promotion that I talked about a second ago is one of our ways to kind of provide that transparency and consistency in the purchase and acquisition cost of their vehicle. But the other thing that I think Ford, especially Ford Pro, is uniquely positioned to do is we are totally dedicated between us and our dealer network to help keep their vehicles on the road. And none of us can control too many of the macroeconomic factors, but when we can help them keep their vehicles back on the road, so that they can serve their customers, that is lost revenue that they don't experience. And it is that type of dedication and trust that we've built over time that's going to help them through these time periods. And fortunately for us, business actually is really steady right now. But we're going to continue to monitor fuel prices because we know that's on people's minds.
- [36:53]
Bloomberg Businessweek Host / Interviewer
But so, Matt, just back to my question. Do you feel like what you're hearing from that small business community that it is tougher than it was maybe at the start of the year?
- [37:05]
Matt Atkinson
Yeah. Look, I would say that it's a different type of headwind. Last year at this time when we chatted, we were talking about the potential impact of tariffs and what that might mean, and we were able to work through that together. This year, it's mostly about commodity pricing and the unknown of what the conflict in the Middle east might bring. But the same principles, from what we heard a year ago versus what we're hearing today, I think are sounding the same. And that's why we thought that this was the right opportunity to bring back the consistency of our promotion and give them one less thing to worry about. And then again, say thank you for all that they've done. America is going to celebrate 250 years and what a great way, in our unique Ford way, to be able to thank this community for driving the. The country forward.
- [38:00]
Bloomberg Businessweek Co-Host / Interviewer
I want to. Oh, go ahead, Carol.
- [38:02]
Bloomberg Businessweek Host / Interviewer
Well, I was just. No good.
- [38:04]
Bloomberg Businessweek Co-Host / Interviewer
Please. I want to ask a little bit about the Ford F series pickups, most profitable model. They fell 16% in the first quarter. The struggle is really inventory shortages that are due to the fires of the Novellas Aluminum plant here in New York State. It supplies the raw material for the truck's body panels. I mean, we covered this a lot over the last few months. What can you tell us about recovering from that $2 billion supply setback?
- [38:31]
Matt Atkinson
Sure. Yeah. You know, look, you're right. Our inventories in the. In the first quarter ran leaner than we would have liked. But as I think you saw and I know you covered, our first quarter earnings were really strong. We actually increased our guidance for the full year. And part of that is because we expect a very strong recovery in the back half of the year from that impact from the supplier shortage. F Series products are included in our employee pricing campaign, both on the retail and commercial side. And that should give you and our customers a pretty good indication of how quickly we're going to rebound. And as you well know, last year we celebrated 49 years of full size pickup leadership in the US industry and we have no intention on giving up year 50 and we are well on our way to doing that.
- [39:23]
Bloomberg Businessweek Host / Interviewer
You know one of the things too, just to kind of piggyback on that, our Bloomberg intelligence team has Matt, a report out today exactly on how Ford Pro could add 1.8 billion to Ford's bottom line this year thanks to that highly profitable F Series super duty pickup trucks that it does sell to commercial clients. So can you talk a little bit about that? What potential does Ford Pro have to boostings to boosting Ford's earnings this year?
- [39:51]
Matt Atkinson
Yeah, I didn't see the specific report that you're referencing but what I can say is that, you know, we are seeing, we are still seeing significant demand on our, on our very profitable full size pickup lineup that starts with F150, but especially with Super Duty. To your point, you know, at the end of this year we're going to open up capacity in Oakville, Canada that is going to not only unlock additional volume that we'll be able to take advantage of, but it's going to also open up some areas of the product configurations where we've been constrained that are going to help us, help us grow. And you know, that is going to be a huge tailwind for us as we look between now and the end of the year. And we're really bullish about the success of our products, our full portfolio, but
- [40:35]
Bloomberg Businessweek Co-Host / Interviewer
especially on F Series, you know, our own Keith not new covers Ford for Bloomberg News. He wrote this great story for, for Bloomberg a little over two years ago about how the work truck business is defying a broader slump in EV sales. And a lot has certainly shifted with, with you know, Ford and General Motors taking charges on the EV business. And I'm wondering what the EV options are right now for, for Ford Pro customers and if, if there are still those options and if you're seeing demand for those in this environment.
- [41:05]
Matt Atkinson
Yeah, you know, the EV segment has certainly gone through ups and downs over, over the last couple of months and especially as legislation change, manufacturers had to figure out kind of where the water level would fall. But what we see, we still see some demand in key parts of business and how they can take advantage of what electric vehicles can offer. And we remain committed to investing in those products. As I think, you know, our plant in Louisville is being retooled to accommodate an all new UAV pickup that will come out in about a year. And we, and we think that that's going to fit a price point And a unique need for retail customers. But for certain fleets that have the specific business case, which still happens today, you know, we want to be able to continue to offer the power of choice for customers. That's, that's the difference between gas and electric. But it's also continuing to invest in diesel and in hybrid as well so that we can meet customers to, to the demands that their business requires.
- [42:13]
Bloomberg Businessweek Host / Interviewer
So Matt, in terms you find certainly in the, in the business community, small business, middle midsize community, they, they want EV choices, there's that demand still there.
- [42:26]
Matt Atkinson
I think it just depends on the use case and I think that's some of the learning that has, has happened over the last couple of years as we all learned kind of how to, how to incorporate the powertrains into, into day to day use. And you know where we see significant demand is where, where customers have depots where they can bring back their vehicles overnight, charge them overnight and use them, use them on a day to day basis. There is a really compelling use case for customers whose business fits that need. But if they have to go outside of that and there's not the charging infrastructure that is available in certain parts of the countries, that's where it can get a little bit more challenging. But that's where we're going to invest in efficient gas engines and of course more and more hybrid engines as well as.
- [43:11]
Bloomberg Businessweek Co-Host / Interviewer
So Matt, you mentioned earlier in our interview being able to sort of monitor fleets and have that as an added value for customers of Ford Pro logistics and software services. How big will that business become and what are the margins like in that business?
- [43:29]
Matt Atkinson
Yeah, margins are really, really strong for us and we have very ambitious growth plans for, for our software business. I won't get into quite the details but you know, we see this as an opportunity to, to not only grow our business and with profitable margins, but this is an unlock for customers to help them identify the efficiencies of their fleet. You know, between the various software solutions that we have that can help with different driving patterns, optimize, optimize routes, stay proactive on repair and service issues. You know, this is, we think this can be a real differentiator for Ford and as the commercial leader as we have been the last 41 years, this is the kind of the next step in the, in the, in the journey for Pro. And we are, we're fully invested in making sure that we have that solution for customers.
- [44:21]
Bloomberg Businessweek Host / Interviewer
Hey Matt, just got 30 seconds. But do you feel that this is a higher inflation, higher interest rate, higher anxiety environment? Are you feeling that a little bit just quickly look.
- [44:33]
Matt Atkinson
Yeah, I think probably so. And I think where we can be really flexible with our full product portfolio is we're going to have flexible financing and creative promotions to make sure that customers can take advantage of them. But we also have a breadth of product lineups between our Super Duty, but also down to our Maverick and the base configurations of our models can help meet customers where they need to be from a budget standpoint without trading off the capabilities that we know they need. And we'll work with customers as we always do.
- [45:03]
Bloomberg Businessweek Host / Interviewer
All right. Hey listen, great to check in with you, so appreciate the time. Matt Atkinson he is the North America Sales and Operations Executive Director over at Ford Pro, joining us from Dearborn, Michigan.
- [45:14]
Podcast Host / Bloomberg Intro Announcer
This is the Bloomberg businessweek daily Podcast, available on Apple, Spotify and anywhere else you get. Your podcasts listen live weekday afternoons from 2 to 5pm Eastern on Bloomberg.com, the iHeartRadio app, TuneIn, and the Bloomberg Business App. You can also watch us live Every weekday on YouTube and always on the Bloomberg Terminal.
- [45:45]
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Yoni Asia
it seems like AI agents are just
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Bloomberg Businessweek Co-Host / Interviewer
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