Topics include Unilever's split, Boeing's cash drain prediction, Intel's government grant, potential TikTok ban in US, and Dow Chemical CEO discussing high power prices in Europe
Unilever's separation of ice cream business discussed
Boeing predicts massive cash drain in the aerospace sector
Deep dives
US Economy Outlook and Fed Rate Cuts
The US economy shows signs of gaining strength at the beginning of the year, with sectors like electronics and automotive performing well. Despite discussions on electric vehicles, automotive sector is expected to have another good year. Housing market has seen a slow start, but an uptick in single-family home starts is anticipated, leading to potential growth in other durable goods manufacturing. The commodity space has witnessed reduced costs, although some consumer inflation may persist due to de-stocking.
European Market Challenges and High Energy Costs
In contrast to the US economy, the European sector is facing challenges with weaker consumer demand and high energy costs impacting the economy. European consumer demand is not as strong as in the US, with electricity costs significantly higher. Companies considering building new chemical plants in Europe may face challenges, especially without a strong domestic market to support operations.
Zero Emissions Plant in Canada and Future Energy Sources
The Dow Chemical Company is constructing a zero-emissions ethylene complex in Canada, demonstrating a commitment to sustainability. The plant will be powered by hydrogen, utilizing a closed-loop system to convert natural gas liquids into hydrogen for furnace operation. This innovative project aims to achieve zero Scope 1 and 2 emissions, marking a significant step towards green and efficient energy use.
Global Trade Impact and Tariff Concerns
Discussion on potential tariffs could impact global trade and demand negatively, as tariffs do not stimulate demand. Tariffs could lead to a shift towards localized production, affecting supply chains and potentially becoming inflationary. Globalization has been beneficial for economic growth and technology transfer, with re-shoring under a tariff regime posing challenges for current global supply networks.
Watch Alix and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF.
On this week’s podcast, Bloomberg Intelligence analysts Deborah Aitken and Duncan Fox, discuss Unilever separating ice cream business. Madison Muller, Bloomberg News Health Reporter, talks about Oprah’s role with Eli Lilly and Novo Nordisk. George Ferguson, Bloomberg Intelligence Senior Aerospace, Defense, and Airlines Analyst, discusses Boeing predicting a massive cash drain. Mackenzie Hawkins, Bloomberg News US Industrial Reporter, talks about Intel’s grant from the U.S government. Matthew Schettenhelm, Bloomberg Intelligence Media Litigation Analyst, discusses a potential TikTok ban in the U.S. Jim Fitterling, CEO of the Dow chemical company, discusses high power prices in Europe.
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.