Spirit Makes Plans to Shutter After Government Rescue Fizzles

Summary

Bloomberg Intelligence Podcast

Episode: Spirit Makes Plans to Shutter After Government Rescue Fizzles
Date: May 1, 2026
Hosts: Paul Sweeney & Scarlet Fu

---

Episode Overview

This episode dives into the breaking news of Spirit Airlines preparing to shutter its operations following the collapse of a potential government rescue. The show then shifts gears with expert analysis of quarterly earnings from major technology companies and detailed insights into the oil, gas, and luxury goods sectors. Featuring aviation correspondent Sid Philip, technology investor Gene Munster, energy analyst Vincent Biata, and luxury goods analyst Deb Aiken, the hosts provide a comprehensive market rundown of the day’s headline stories.

---

Spirit Airlines: Shutdown Looms After Failed Government Rescue

What Happened with Spirit Airlines?

• [01:49] Host introduces Sid Philip (Bloomberg’s chief Global Aviation correspondent).

• [02:01] Sid Philip explains Spirit’s failed rescue attempt:

  • Spirit couldn’t reach a deal with creditors, who objected to government proposals that would supersede their claims in a bankruptcy scenario.
  • Lack of consent from creditors blocked the government deal.
  • As a result, Spirit is facing bankruptcy and is preparing for a potential shutdown.

  "Creditors were a roadblock in agreeing to any deal with the government... because of concerns about liabilities and what their recoveries would look like post a government deal."
  —Sid Philip [02:01]

What Would a Shutdown Look Like?

• [02:48] Sid describes potential outcomes:

  • Shutdown could take as little as a day or a few days.
  • Major impacts for stranded passengers, staff, and asset disposition.
  • Questions remain about relief flights and handling of aircraft and workforce.

  "It would cause considerable discomfort and considerable sort of pain to various people... Passengers would be stranded without options."
  —Sid Philip [02:48]

Could Another Airline Step In?

• [03:45] Host notes Spirit’s 10,000 employees and JetBlue stock volatility.

• [04:02] Sid on a possible acquisition or last-minute rescue:

  • Assets might be attractive to competitors, but government and creditor deadlock persists.
  • Last-minute deal still possible, but outlook grim given Spirit’s cash burn and bankruptcy history.

  "It's hard to see how an airline could come in and get a merger done, especially given that Spirit's been running out of cash..."
  —Sid Philip [04:47]

---

Tech Sector Earnings: Second Inning for AI, Apple’s Supercycle, and Capex

Key Takeaways from Big Tech Earnings

• [07:45] Gene Munster (Deepwater Asset Management):

  • “Second inning” for AI development—still early stages.
  • Hyperscalers (Google, Microsoft, Meta) ramping up CapEx, reflecting aggressive investment in AI.
  • Meta and Google demonstrate tangible AI-driven growth: Meta’s ad revenue up 33%, Google Search growth accelerating.

  "We're still very early, very early second inning in all of this... Google and Meta both have shown they can leverage AI at scale."
  —Gene Munster [08:19]

Apple’s Position in the AI Arms Race

• [10:48] Gene addresses Apple’s relative AI lag:

  • Apple is behind, but the gap isn't insurmountable since no alternative “AI device” has displaced the iPhone.
  • iPhone is in a "supercycle": 20% growth vs. historic 1%, even without major AI integration.

  "...the fact that they're able to deliver a super cycle in the face of not having any compelling AI, I think speaks to how they've just become the fabric of consumers' lives."
  —Gene Munster [10:48]

  • Investors' main question: can Apple channel AI to drive growth beyond this supercycle?
  • Immediate market focus is on Apple’s robust guidance, but concerns linger over sustaining growth in 2027 and beyond.

Investor Reactions to CapEx Waves

• [12:46] CapEx increases don’t automatically spook investors—especially for Cloud-heavy companies.

  • Google’s guidance of 20–30% CapEx growth did not hurt its stock.
  • Meta, however, saw a 7% stock dip after similar announcements.
  • Confusion remains as to why Meta doesn't get more investor credit considering its track record converting investment into growth.

  "What's the issue is... for many investors [is] they just don't see the path between capex..."
  —Gene Munster [12:59]

---

Oil & Gas Outlook: Price Versus Volume

Exxon and Chevron's Quarter in Focus

• [17:18] Vincent Biata (Senior Equity Research Analyst) summarizes:

  • "Price trumps volume" is the main takeaway.
  • Global production disruptions hurt, but higher oil prices offset volume losses for integrated majors.
  • First-quarter benefits accrue mostly to upstream/exploration.

  "Price trumps volume. So for the most part we're moving toward an environment for them where at least the upstream component will do well."
  —Vincent Biata [17:29]

Market Uncertainty and Restraint

• [18:41] Geopolitical disruptions (Strait of Hormuz closure) make guidance tough.

• [19:30] Despite $100 oil spot prices, rig counts ("wildcatters") remain disciplined:

  • Long-dated contracts indicate lower future prices, discouraging aggressive new drilling.
  • Investors demand distributions (dividends, buybacks) over expanding supply.

  "More importantly, guys like you—investors overall—[are] telling the space, 'I don't want additional molecules. What I want is distributions'."
  —Vincent Biata [19:30]

---

Luxury Sector: Estee Lauder, Pooch Brands, and Changing Buyer Geographies

Estee Lauder’s Mixed Results and Sector Themes

• [22:54] Deb Aiken (Bloomberg Intelligence Luxury Goods Analyst) focuses on:

  • Estee Lauder’s return to top-line growth, buoyed by 10% fragrance sales.
  • Skin care division remains flat; growth is uneven across divisions.
  • The company’s cost-saving and innovation efforts (“prgp”) are bearing some fruit.

  "...the profit saving program, the way they're add in innovation and flexibility is starting to work for them."
  —Deb Aiken [23:17]

Merger Prospects with Pooch Brands

• [24:40] No concrete news about a merger with Pooch (Puig) Brands; lack of updates doesn’t indicate deal trouble.

Luxury Demand Drivers By Region

• [25:52] Recovery in China is slow but progressing; 6% organic growth in beauty there.

• [26:24] The U.S. (Americas) is now the main driver of premium goods growth for 2026, outpacing China for the time being.

• [26:56] Middle East also adds modest growth to the sector.

  "...for 2026, given that China is against a decline still versus 25, it's actually Americas and particularly the US that is driving the growth rate in luxury goods."
  —Deb Aiken [26:24]

---

Memorable Quotes & Moments

• Sid Philip (Spirit Airlines):

  "Shutdowns usually take a few... it could take a matter of a couple of days or it could be a day and it would sort of cause considerable discomfort and considerable sort of pain to various people." [02:48]

• Gene Munster (Tech, AI):

  "Eventually it has to slow down, we're just not seeing that." [08:19]

• Vincent Biata (Oil & Gas):

  "If you look at prices along the curve... we're here and we see the $100 per barrel. But if you look at the November and December contracts, they're somewhere in the high 70s, low 80s." [18:41]

• Deb Aiken (Luxury):

  "...the beauty market coming through at around 4 to 5% growth. And what we're finding so far is that the Middle East is about 100 basis points impact on that growth rate." [26:56]

---

Key Segment Timestamps

• 01:49 – The collapse of Spirit Airlines’ government rescue & shutdown implications
• 07:45 – Tech earnings recap, AI investment cycle, Apple’s position
• 12:46 – CapEx, hyperscalers, and investor sentiment
• 17:18 – Exxon/Chevron analysis: price vs. volume, production discipline
• 22:54 – Estee Lauder, luxury goods trends, regional growth shifts

---

Conclusion

This episode bridges urgent industry news with deep sector analysis: from Spirit Airlines’ potential shutdown and its ripple effects, to the persistent AI-driven tech investment boom, to disciplined oil production strategies and a shifting luxury goods landscape. The dialogue reflects Bloomberg’s authoritative, analytical tone, with each expert offering both real-time reporting and thoughtful context for investors and industry-watchers alike.

Transcript

[Host/Announcer]

Is your multi entity management creating more confusion than clarity. You need the Intuit ERP Intuit Enterprise Suite. It's the AI native ERP solution that's powerful, painless and proven. Learn [e-mail] ERP Small businesses are the pulse of every community. They bring people together, create opportunities and drive growth. Chase for Business helps business owners like you with personalized guidance and convenient digital tools all in one place. With that guidance and your determination, you can take your business farther and help build a brighter future for your community. Learn [e-mail] business chase for business Make More of what's Yours the Chase Mobile app is available for select mobile devices. Message and data rates may apply JPMorgan Chase Bank NA member FDIC Copyright 2026 JPMorgan Chase Co. Travel smarter, not Harder

[Sonesta Advertiser]

at America's Best Value Inn by Sonesta with convenient locations from coast to coast and value pack comfort at every it's a practical choice for road trips, quick getaways and everyday travel that keeps things simple without sacrificing comfort. And when you're a Sonesta Travel Pass member, staying at America's Best Value Inn means earning points toward free nights, upgrades and more every time you stay. Go to sonesonesta.com to book your stay and unlock the best rates with Sonesta Travel Pass Here today, roam tomorrow. Join [e-mail] terms and conditions apply.

[Podcast Narrator]

Bloomberg Audio Studios Podcasts Radio news You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Bloomberg Host/Interviewer]

Sid Philip Bloomberg, chief correspondent for Global Aviation Sid, Spirit Airlines preparing to end operation what happened to the potential deal with the US Government?

[Sid Philip]

So from what we understand, Spirit Airlines couldn't reach a deal with its creditors, and so the creditors were a roadblock. Bloomberg earlier reported that creditors were a roadblock in agreeing to any deal with the government. And that was primarily because of concerns about what their what basically liabilities and what their recoveries would look like post a government deal. I mean, remember the government was proposing them superseding other lenders. And so that's turned into a bit of a the creditors weren't sort of happy with that deal. And so we understand because of that, the government deal can't go forward. And that's really forcing Spirit allies to consider bankruptcy and shutting down essentially.

[Host/Announcer]

Okay, so a shutdown, what would that look like for an airline?

[Sid Philip]

How long does that take Shutdowns usually take a few. It could take a matter of a couple of days or it could be a day and it would sort of cause considerable discomfort and considerable sort of pain to various people. So on one hand you have the passengers who would then be stranded without options in terms of being able to fly. I mean, we may see some of the credit the other airlines and their competitors offering rescue flights or other sort of alternatives. But as far as because the consumers are concerned, they would be sort of looking for a way to get out of like their flights and see where they could go to. And the other concern is one for the staff and essentially what happens with them and then also the assets of the airline and what happens with the aircraft and other sort of assets that the airline has. So there's multi facets to that thing. And we are still looking to see what the rollout is going to be if there is in fact no chance of saving this.

[Bloomberg Host/Interviewer]

I'm just looking at the DES screen for Spirit Airlines shows it has about almost 10,000 employees. So that's the human side of it. Is there any chance, Sid, that another airline could come in here? I see the JetBlue stock is down more than 4%. Maybe people speculating that they might come in and try to buy this thing.

[Sid Philip]

There could be speculation that the assets could go up for the assets could be available to other airlines to get them. There's also a possibility that the creditors and the government reached some sort of agreement and just in the sort of final, like the final hours. So it's still not yet over, but we will be watching the story to see what happens next.

[Bloomberg Host/Interviewer]

Looking at JetBlue Airways right now, the stock's actually trading up. I correct myself. Stocks trading up a little bit. But I wonder. The government blocked them before, so I'm not sure they would proceed again.

[Host/Announcer]

That's a good question. I mean, Sid, do you think the government might try to pivot and not force consolidation, but encourage an airline to pick up Spirit?

[Sid Philip]

The government would try, but again the stumbling block would be what price those are paid and essentially what the creditors sort of want from this. So it is hard to see how an airline could come in and get a merger done, especially given that Spirit's been running out of cash and there's no real. They're in their second bankruptcy. I mean, they were meant to exit their second bankruptcy. And so it's hard to see how that could happen so quickly in terms of giving them a lifeline to actually keep going.

[Host/Announcer]

Stay with us. More from Bloomberg intelligence coming up after this. If your finance team spends more time finding data than using it. If there's one entity here and one here and one here and one here. If scaling your business feels like starting over, you need the Intuit erp. Intuit Enterprise Suite is the AI native ERP solution that's powerful, painless and proven. Learn [e-mail] ERP you need to make

[Adobe Advertiser]

a huge presentation in an hour. Adobe Acrobat uses AI to take all your documents and generate a presentation with a single click. Build slides quickly and streamline the process. Need a last minute pitch deck? Do that with Acrobat. Need to level up your presentation design? Do that with acrobat. You have 30 plus documents that need to be simplified into a proposal. Do that, do that do that with Acrobat. Learn [e-mail] do that with Acrobat.

[Bloomberg Host/Interviewer]

Support for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds and crypto, and they've also integrated AI with tools that can assist investors in building customized portfolios. One of these tools is called Generated Assets. It allows you to turn your ideas into investable indexes. So let's say you're interested in something specific like biotech companies with high R and D spend, small cap stocks with improving operating margins or the S&P 500 minus high debt companies. Chances are there isn't an ETF that fits your exact criteria. But on Public you just type in a prompt and their AI screens thousands of stocks and builds a one of a kind index. You can even backtest it against the S&P 500. Then you can invest in a few clicks, go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market ad paid for by

[Public Advertiser]

Public Holdings Brokerage Services by Public Investing member Finra SIPC Advisory Services by Public Advisors SEC Registered Advisor Crypto Services by ZeroHash. Sample prompts are for illustrative purposes only, not investment advice. All investing involves risk of loss. See complete [e-mail] disclosures

[Podcast Narrator]

you're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Bloomberg Host/Interviewer]

This is the conversation of the day for me. Gene Munster, Managing Partner, Deepwater Asset Management, joins us here because it was a big, big week for some of the leading technology companies. Remember Friday afternoon we had the Amazons, the Facebooks, the Metas, the all that kind of stuff Microsoft report numbers and then last night Apple Gene, you saw a lot of the big names, a lot of the headline names report earnings here today. It seems like the market really is trying to identify winners, maybe a Google losers at least in the short term maybe a Metta given its stock price performance yesterday. What was your takeaway from all these numbers?

[Gene Munster]

Well, I tend to look at beyond the quarter, beyond the guidance and try to think about what we've learned about whatever the kind of the investment curve that we're on. Of course we know what the A topic is. What inning are we in AI? And what I learned is I would say it's probably consensus from the takeaways. So it's that we're still early, probably earlier than what we had thought maybe six months or a year ago. And specifically if we look at kind of one benchmark which is the hyperscalers capex spend for this year and for next year we saw a measurable bump up for calendar 26, calendar 27. So three of the four with the exception of Amazon, the other three, Google, Microsoft and Meta all increased their growth rates meaningfully. Again off of numbers that were hard to imagine them going higher. That's been kind of a well traveled. So Paul, to answer your question is I think we are still very early, very early second inning in all of this and I think there's just this, there's part of just being a human thinking that this just can't last. I mean we've been, we're entering year three of this incredible growth like the numbers just keep getting bigger and the comps get more difficult and they just keep crushing through it. Eventually it has to slow down, we're just not seeing that. And I would just put one other piece that we've, we've learned Google and Meta both have shown that they can leverage AI at scale. Those companies have seen some remarkable accelerations in their growth. Google search going from call it 10, 11% a year or so ago to 19% in the March quarter. Meadow was growing at 16% their ad business in the March 25 quarter they grew at 33% a year later and guided to 28% for the June quarter. So we have seen these two companies are great examples of the benefit this nagging question about is there actually utility in AI? These companies have showed that but beyond those the world really hasn't seen it and I think that's the opportunity.

[Host/Announcer]

So if we're in the second inning of the cycle as you put it, does that mean Apple, which really has not done very much with AI, is really not that far behind and can make up whatever lost ground people seem to think it has. Or is Apple's interaction with AI just fundamentally different than the hyperscalers and the rest of big tech?

[Gene Munster]

Well, the Apple is both behind but not far enough behind that they can't catch up. To your point and I would just look at very simply is, you know there's a problem if there was some other competing AI consumer device that was capturing people's attention. We haven't seen that yet. That's example of a problem. Another example that we know there's a problem if somehow like the kind of the base was starting to drift away for whatever reason and they've essentially continued to strengthen their underlying base. And you know, the numbers are quite remarkable. And I think that part of the reason why we've seen this surge over the last three quarters. So iPhone on average has grown at 20% over the last three quarters. The previous basically five, four years it grew at an average of just over 1%. So we've seen this big jump up that's called a super cycle. That's what I would call a super cycle. Super cycles don't last. But the fact that they're able to deliver a super cycle in the face of not having any compelling AI I think speaks to how they've just become the fabric of consumers lives. So Scarlett, to kind of bring it all together, I think that you know, they're not so far behind that they can't capitalize on this. And I mean that's the real question here. Shares of Apple right now up 4% ish on what was some spectacular guidance really underscores that investors are essentially looking past this great guidance in the June quarter. They're already thinking about next year where that growth slows down, back down iPhone growth back to 5% versus 20% over the past few quarters. And that's kind of the central question here you're getting at. The real question is like ultimately can they take AI and create growth, outsized growth outside of the super cycle? And that's what investors essentially don't believe right now. But that's what kind of where the lines are laying down.

[Bloomberg Host/Interviewer]

Gene, if we're in the second inning, does that suggest we've got many quarters and maybe years of this elevated level of capex to look forward to? And if so, would that become increasingly a headwind for the stocks?

[Gene Munster]

Well, the CapEx impact is different for different companies and so the, the best that I can see is that if you're a hyperscaler and you're spending more on capex, if you have a cloud business then you're investors are generally okay with that spending. On the Google call they announced that they're going to be basically gave a suggestion that they'll grow capex next year between 20 and 30%. The street was at 10%. This is for calendar 27 now and the stock didn't. It went down and then it kind of came right back up on that. It basically shrugged it off. Meta does the same thing, talks about 26 a step up. In 26 the stock's down 7% and so the difference between those and Microsoft talked about a step up in spending and the stock wasn't bothered by it. I think the issue here is like capex in itself is not negative. What's the issue is I think for many investors is that they just don't see the path between capex. One last thing, it's a mystery to me because I don't understand why investors don't give Meta credit because they've shown that they can deliver capex on faster revenue growth.

[Bloomberg Host/Interviewer]

Stay with us. More from Bloomberg Intelligence coming up after this.

[Adobe Advertiser]

Everyone has been there. Your team's feedback is scattered across emails, chats and sticky notes. It's a mess, but PDF spaces in Adobe Acrobat gives you one collaborative workspace to streamline every file and comment. So if you need six departments to finally agree on a proposal, do that with Acrobat. Need to turn a mountain of feedback into one plan of action. Do that with Acrobat. Want to stop searching for files and finally get everyone on the same page. Do that, do that, do that with Acrobat. Learn [e-mail] do that with Acrobat.

[Bloomberg Host/Interviewer]

Support for the show comes from Public. Public is an investing platform that offers access to stocks, options, bonds and crypto. And they've also integrated AI with tools that can assist investors in building customized portfolios. One of these tools is called Generated Assets. It allows you to turn your ideas into investable indexes. So let's say you're interested in something specific like biotech companies with high R and D spend, small cap stocks with improving operating margins or the S&P 500 minus high debt companies. Chances are there isn't an ETF that fits your exact criteria. But on public you just type in a prompt and their AI screens thousands of stocks and builds a one of a kind index. You can even backtest it against the S&P 500. Then you can invest in a few clicks, go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market and paid for by

[Public Advertiser]

Public Holdings Brokerage Services by Public Investing Member FINRA SIPC Advisory Services by Public Advisors SEC Registered Advisor Crypto Services by Xerohash Sample prompts are for illustrative purposes only, not investment advice. All investing involves risk of loss. See complete [e-mail] disclosures being a small

[Host/Announcer]

business owner isn't just a career, it's a calling. Chase for Business knows how much heart and effort go into building something of your own. That's why they make business growth their priority. The Chase team takes the time to understand your mission, where you are now and where you want to go. Their broad range of solutions is designed with you in mind so you can bring your ideas to life. From banking to payment acceptance to credit cards, you can conveniently manage all your business finances all all in one place. With their digital tools looking for tips and advice, their online resources are always available to give you the solutions you need to help your business thrive. See how your business can get stronger and go farther with Chase for Business. Learn [e-mail] business chase for business Make More of what's Yours the Chase Mobile app is available for select mobile devices. Message and data rates. May apply JPMorgan Chase Bank Naomi Member FDIC Copyright 2026 JPMorgan Chase Co.

[Podcast Narrator]

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Bloomberg Host/Interviewer]

Vincent Biata joins us. He's a senior Equity Research Analyst following all this oil and gas stuff. He's here in our Bloomberg Interactive Broker studio. Vince, what did you learn from Exxon and Chevron today?

[Vincent Biata]

Well, like you said, price trumps volume number one. Number two, the rest of the world got punched and Exxon and Chevron got pinched. I think when you think about the integrated model during times of stress, that's when it works. I think you'll see similar 4.2Q as well because you know, 1Q we only had one month of that price inflation. We're coming into the second month of of of inflated prices here. So from an upstream perspective, net benefit to both, even though the production outages are probably more sustained into 2Q, but overall prices are higher and price trumps volume. So for the most part we're moving toward an environment for them where at least the upstream component will do well.

[Host/Announcer]

And upstream, of course, is exploration and production. Downstream is refining. What was notable to me in looking at the results is that ExxonMobil is just as challenged as everyone else and giving guidance because no one knows how long the Strait of Hormuz will be closed for. And they really couldn't pinpoint anything.

[Vincent Biata]

Can't pinpoint anything. And if you look at prices along the curve, I'm not really sure the traders really appreciate it as well because you know, we're here and we see that $100 per barrel. But if you look at the November and December contracts, they're somewhere in the high 70s, low 80s. And so interestingly, by the time we get into election season, those contracts will be the spot contracts. So be very interesting to see what happens at that point. But for the most part, if you think about not only Exxon and Chevron, but also the other majors across the globe, you're seeing the same kind of results where price is trumping volume for the most part.

[Bloomberg Host/Interviewer]

Just lastly, Vince, before we let you go, why don't I just go down to Texas and drill a hole? What are rig counts doing? Are the Landman's the wildcatters of the world? Are they taking advantage of $100 oil?

[Vincent Biata]

They are still being disciplined because as I mentioned to you, the prices out on the longer end of the curve are still somewhat subdued and so you're not really incentivizing you to drop a lot of capital into the ground. But more importantly, guys like you investors overall telling the space, I don't want additional molecules. What I want is distributions. And that's the process for shareholder engagement, giving them dividends and the stock buybacks that they need.

[Host/Announcer]

Stay with us. More from Bloomberg Intelligence coming up after this.

[Adobe Advertiser]

Everyone has been there. Your team's feedback is scattered across emails, chats and sticky notes. It's a mess, but PDF spaces and Adobe Acrobat gives you one collaborative workspace to streamline every file and comment. So if you need six departments to finally agree on a proposal, do that with Acrobat. Need to turn a mountain of feedback into one plan of action. Do that with Acrobat. Want to stop searching for files and finally get everyone on the same page. Do that, do that, do that with Acrobat. Learn [e-mail] do that with Acrobat Support

[Bloomberg Host/Interviewer]

for the show comes from public. Lately it feels like there are two types of investing platforms. Some are traditional brokerages that haven't changed much in decades and others feel less like investing and more Like a game, Public is positioned differently. It's an investing platform for people who are serious about building their wealth on public. You can build a portfolio of stocks, options, bonds, crypto without all the bugs or the confetti. Retirement accounts? Yep. High yield cash? Yes again. They even have direct indexing. Public has modern design, powerful tools and customer support that actually helps go to public.com market and earn an uncapped 1% bonus when you transfer your portfolio. That's public.com market ad paid for by

[Public Advertiser]

Public Holdings Brokerage Services by Public Investing member FINRA SIPC Advisory Services by Public Advisors SEC Registered Advisor crypto services by ZeroHash all investing involves risk of loss. See complete [e-mail] disclosures small businesses are

[Host/Announcer]

the pulse of every community. They bring people together, create opportunities and drive growth. With a widespread presence in communities across the country, Chase for Business supports small business owners at a local level that makes it possible for you to connect, learn from each other and grow together. There's a real commitment to seeing small businesses succeed. The Chase for Business team has knowledge and expertise that span a wide range of financial areas. They can help you make more informed decisions as you navigate the complexities of running your business. They'll help your business grow with individual guidance and convenient digital tools all in one place. With that guidance and your determination, you can take your business farther and help build a brighter future for your community. Learn [e-mail] business chase for business Make More of what's Yours the Chase Mobile app is available for select mobile devices. Message and data rates may apply JPMorgan Chase Bank NA Member FDIC Member Copyright 2026 JPMorgan Chase Co.

[Podcast Narrator]

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Bloomberg Host/Interviewer]

Let's switch gears to We've been talking about luxury Estee Lauder and you want to talk luxury. There's only one person to talk to and that's Deb Aiken, Bloomberg Intelligence Luxury Goods Analyst. She is based in London. She spends most of her time on the various high streets around the world at the high luxury dealers there. What would you learn from from Estee Lauder this reporting period?

[Deb Aiken]

Well, it's quite a mixed bag actually. You know that the share price was off heavily into results year to date. But what we learned is that the prgp, the profit saving program, the way they're add in innovation and Flexibility is starting to work for them. So they've returned to growth on the top line, couple of percent constant currency sales growth and then they got a 3% forex benefit. So that will help them to really be able to, you know, to invest more and add to what they're doing on the saving side. But when we look at the underlying growth, it's all fragrances and other. So skin care, hair care in particular, skin care is an issue for them because it's their biggest division. All those numbers are flat year on year. So it's 10% growth in fragrances, not much growth elsewhere. So still a lot to do. And what that makes me wonder is how quickly these potential. The potential for combining with push. Yeah. How quickly that might go ahead or whether it may be delayed or whether it may be off the table.

[Host/Announcer]

So.

[Deb Aiken]

So there's quite a lot behind these numbers to me when I dig deep.

[Host/Announcer]

So I'm so glad you bring up who because there's that proposed merger with Pooch Brands and they really, the company did not give very many details in the earnings call about how that's going or how those conversations are going. Is that a reason to be concerned about whether this will actually happen?

[Deb Aiken]

No, not at all. So we had Pooj as well reporting a couple of days ago they were okay as well in what they were doing in their improvements from what we saw from the prior quarters. But actually, because there's no agreement in place, it's just, we've just been informed from both parties that they're in talks. It's usual if they don't break earnings because something is about to happen or certainly Puja's delayed a capital market day, but it goes ahead within AGM on 29 May. But it is usual that these companies would come out and say this is about earnings and we're not going to give any comment on what we're doing behind any potential talks.

[Bloomberg Host/Interviewer]

Dad, what's the current feel out there in the investor community about luxury these days? What's the driver right here in terms of sentiment?

[Deb Aiken]

What we're seeing, actually. So we picked up on it the last couple of quarters. We did some work where we were starting to see in China the shift from red towards neutral and then the last couple of quarters towards green. And we've seen that continue. So it's slow progress. But we now have the beauty companies also, including Estee Lauder, coming through with 6% organic growth in China. So some repair in travel, retail and repairing the premium end in China coming through and that is very much across those premium beauty brands and also the high end of luxury. That would be the one thing. The second thing, we don't quite see it here, though it is in some of Estee Lauder's brands and not others. America's, particularly the US has proven very robust and we're getting decent growth rates coming through on the luxury side. And I would in fact say that for 2026 given that China is against a decline still versus 25, it's actually Americas and particularly the US that is driving the growth rate in luxury goods. So we're kind of looking at this market and the beauty market coming through at around 4 to 5% growth. And what we're finding so far is that the Middle east is about 100 basis points impact on that growth rate.

[Podcast Narrator]

This is the Bloomberg Intelligence Podcast available on Apple, Spotify and anywhere else you get. Your podcasts listen live each weekday 10am to noon 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.

[Bloomberg Host/Interviewer]

When you're running a business, the best days are the ones where priorities stay on track. For midsize and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage shaped by years of underwriting, risk engineering and claims experience. Learn [e-mail] riskmitigation policies provided by Hartford Fire Insurance Company and its property and casualty affiliates, Hartford, Connecticut a business gift

[Sonesta Advertiser]

should do more than check a box. It should reflect your brand and show someone they're appreciated, recognized and truly seen. 4imprint offers thousands of high quality customizable products like premium apparel, drinkware, tech and more, making it easy to create a gift that feels meaningful and on brand. And with 4imprint's expert support and their 360 degree guarantee, you can be 4imprint certain your order will arrive exactly as intended. Explore gifting with confidence at 4imprint.com 4imprint for certain travel smarter, not harder at America's Best Value Inn by Sonesta with convenient locations from coast to coast and value packed comfort at every turn, it's a practical choice for road trips, quick getaways and everyday travel that keeps things simple without sacrificing comfort. And when you're a Sonesta TravelPass member staying at America's Best Value Inn means earning points toward free nights, upgrades and more every time you stay. Go to Sonesta.com to book your stay and unlock the best rates with Sonesta Travel Pass Here today, Rome tomorrow. Join [e-mail] Terms and conditions apply.