Topics discussed include Kohl’s earnings, challenges at Boeing affecting the US airline market, outlook for ESG ETFs in 2024, Oracle earnings, and a story on betting on natural disasters for profit.
Kohl's focuses on digital growth via partnerships and store strategies to combat declining sales.
Boeing's challenges impact airlines through reduced deliveries and market stability amidst capacity adjustments.
Oracle's strong Q3 performance boosts investor confidence in cloud infrastructure potential and growth plans.
Deep dives
Overview of Schwab and NetSuite Partnership
Schwab has transitioned to being powered by Ameritrade, offering an expanding range of educational resources for traders. NetSuite by Oracle is highlighted for its cloud financial system, integrating accounting, financial management, inventory, and HR to reduce costs and errors, with a unique flexible financing program until April 15. Bloomberg Intelligence discusses the US corporate high yield performance, semiconductor cyclicality, M&A impact on investors, and market dynamics.
Discussion on Retail Sector focusing on Kohl's
Bloomberg Intelligence delves into Kohl's retail performance, acknowledging a 1% decline in store sales with digital sales witnessing a 10% decrease. Strategies like the introduction of Sephora, planned Babies 'R' Us shops, and partnerships with youth brands like Quicksilver and Aeropostale are outlined to drive future growth. Challenges in merchandise assortment transformation and impact of changing late fees regulations on credit card income are covered.
Insight into Boeing's Challenges and Impact on Airlines
Boeing's difficulties following an early-January accident have led to reduced aircraft deliveries, affecting airlines like Southwest, which announced capacity cuts and hiring pauses. United instructing Boeing to halt building 737 MAX 10 jets highlights the ongoing challenges. George Ferguson from Bloomberg Intelligence projects the airline market to remain stable with sufficient capacity, albeit tempered by higher fuel prices and weaker revenue forecasts.
Exploration of Oracle's Progress in Tech and Market Excitement
Oracle's positive third-quarter sales results saw a 7% increase to $13.3 billion, matching analyst expectations. Cloud revenue surged by 25%, eliciting significant investor enthusiasm that boosted Oracle shares. Market optimism centers around Oracle's cloud infrastructure potential, with $10 billion earmarked for data center construction indicating a strong commitment to growth and innovation in the AI-driven tech landscape.
Analysis of Fermat Capital Management's Cat Bond Strategy
Fermat Capital Management possesses the largest collection of catastrophe bonds globally, totaling $10 billion in assets. Their investment strategy incorporates advanced risk modeling, leveraging physics expertise to predict disaster probabilities and optimize returns. Fermat's success is evident in their impressive 20% returns last year, driven by a diversified portfolio of cat bonds immune to traditional market fluctuations. The crucial role of cat bonds in modernizing insurance against the backdrop of rising secondary perils like floods and wildfires is emphasized.
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On this week’s podcast, Mary Ross Gilbert, Bloomberg Intelligence, Senior Equity Analyst, Covering Retail, discusses Kohl’s earnings. George Ferguson, Bloomberg Intelligence Senior Aerospace, Defense, and Airlines Analyst, discusses how challenges at Boeing will impact the U.S airline market going forward. Shaheen Contractor, Bloomberg Intelligence Senior ESG Strategist, discusses her outlook for ESG ETFs in 2024. Brody Ford, Bloomberg Tech Reporter, discusses Oracle earnings. Gautam Naik, Bloomberg Senior Editor covering ESG Investing, discusses his Big Take story “How a Physics Whiz Made a Fortune Betting on Nature’s Catastrophe’s.”
Hosts: Alix Steel and Jennifer Ryan
The Bloomberg Intelligence radio show with Paul Sweeney and Alix Steel podcasts through Apple’s iTunes, Spotify and Luminary. It broadcasts on Saturdays and Sundays at noon on Bloomberg’s flagship station WBBR (1130 AM) in New York, 106.1 FM/1330 AM in Boston, 99.1 FM in Washington, 960 AM in the San Francisco area, channel 121 on SiriusXM, www.bloombergradio.com, and iPhone and Android mobile apps. Bloomberg Intelligence, the research arm of Bloomberg L.P., has more than 400 professionals who provide in-depth analysis on more than 2,000 companies and 135 industries while considering strategic, equity and credit perspectives. BI also provides interactive data from over 500 independent contributors. It is available exclusively for Bloomberg Terminal subscribers.
