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tv   Bloomberg Markets  Bloomberg  October 21, 2021 1:00pm-2:00pm EDT

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alix: behind the commodities with the smartest voices in the business. a look at the top market stories of the week. this was a total shocker. oil supplies over pushing. jp morgan said in a note that we are very close to bottom and that could lead to record highs in wti spread and super backwardation. a big part of all of that will be about the weather. our signs in europe it could warm a touch. temperatures in southwest europe , above through the end of
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november. the white line is what you have to pay attention to which is the temperature which put pressure on natural gas and power. also trying to put the lid on high coal prices. they are looking for ways to intervene in the market. production raising to 12 lien tons a day and give the fuel priority deliveries over railroads and will have zero tolerance for collusion in the market. -- copper versus copper inventories. you had historic squeeze at the lme. stocks fell to the lowest, below 20,000 tons, what china consumes in terms of factories in one day. but a very intense reaction. we want to bring in jack who
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covers this for us. what happened? jack: it is one of the most extreme moves we have had in the copper market in a long time. training at the highest on record. it was training well above. what has happened is copper is in short supply all over the world and cover is not an exception and add to that the fact that traders have removed stock from the metal warehouses. we reported early this week that a significant portion of that was done and left the lme with all stock. some he deliver the copper.
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there is very left in the lme warehouses. alix: is this going to keep happening? you have the arbitrage that plays out. are we going to keep seeing this crazy backward spread in low inventory? i think at the moment you have a vacillating spread. i thought you'd see that come into lme warehouses and that will take time. what has to happen is where in an interesting tug-of-war between a supply situation where stocks are low and a demand situation where people are looking at what is happening in global energy markets and in the chinese sector and saying the future of demand does not look so great in the short to medium-term. it will be a question of time as to where it demand rolls over as to when it will loosen up.
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alix: thank you. jack farchy joining us from bloomberg. today we talked to michael mcguire, and one of the biggest winners of the crypto boom might be digital asset exchanges. there are 414 exchanges with the market cap of $1.8 trillion. the top 10 exchange as much as $33 billion on any given day. most of the top 10 are based in asia, like finance, the biggest exchange which handles $18 million in volume. a transformative moment for the u.s. when coinbase hit $100 billion before falling in the trading debut. it got the attention of wall street titans and big banks and was billed as a shift in legitimate see. china's ban on crypto and mining
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and gary gensler called the industry "the wild west." it wants rules and regulations and wants to create new products to trade. you can buy and sell crypto on a platform. you could also trade tokens backed by physical commodities, gold, silver, platinum, nickel, cobalt, and copper. they hope that investors will trade. the platform is scheduled to go live by october or november. i sat down with the ceo and asked how he hoped to grow volume and liquidity. michael: we built our blockchain that is created and maintained by ibm. the difference is we are not centralized we rely on third-party validator's validating transactions so we know that you sold at one price and i bought at that same rice.
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each token can be embedded with metadata where you can understand the material. alix: is a professional institutional trader. michael: we are focusing on accredited investors because they can understand the risk and the volatility. but ultimately we would like to democratize this and make it available to the retail user. alix: talking about the regulatory relationship, a lot of the exchanges are not in the u.s.. coinbase is the big one but what is your relationship? how do you want to be regulated? eckel: we want to be regulated. we were thinking -- michael: when we wanted to be regulated, we decided we wanted to be in the u.s. for the regulations because sophisticated investors feel comfort there is relation. alix: how is that going?
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michael: it is a very long and expensive process and is not very streamlined. we work with 50 different state legislators and federal regulators and all of them wants a lot of attention. we spent a lot of time talking to regulators producing documents and it is part of the process and getting through that process and being on the other side creates a barrier to entry for other players. alix: you have the tokenized commodities of precious metals. what other metals have you expanded? michael: we are looking at eight to 10 metals important in the decarbonization in the economy. they play big role in production of electric vehicles, solar panels, and wind turbines. our view is as the economy decarbonizing and there is more
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production of these nickels, the products underlying commodities will be in more demand. alix: meaning it will help with liquidity and volume and volatility which would be good in getting people on the exchange and moving stuff around? michael: i think it will create more liquidity because we are bringing new market participants in. many are hard for credit investors to trade. if you wanted to trade cobalt, how would you do it? we are making it a little more assessable. you get more liquidity and stability of prices and it helps manufacturers as well. alix: do you have to have a boatload of cobalt in a warehouse or worry about it when something is redeemed? michael: every token traded on the exchange is backed by the requisite amount of underlying serial. if is cobalt, it is backed by one metric tone of cobalt. alix: would you ever do
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derivatives? michael: that is probably two or three steps down the road. we are looking at listing securities and broker atf's. alix: do you have an idea of how many people you need trading and the volume to kind of say, nailed it? michael: we get to an average daily volume of 5 million we would be happy. it is a question of how many people do we need to do that. alix: that was might interview with michael mcguire symbridge owner and ceo. skyrocketing places sending chills to the haunted house industry, causing a lot of moaning and groaning. since 2015, the cost of wood has been $360 for a thousand board. it is 600 and $25.
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-- $625. a global chip shortage keeping lights dimmed. the only way to navigate this market is to keep calm and pumpkin on. next week, earnings, earnings. friday, exxon and chevron, so don't miss that. catch us every thursday at 1:00 p.m., 6:00 in london. this is bloomberg. ♪
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alix: -- matt: welcome to
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bloomberg markets. we are going to speak to valkyrie investments ceo leah wald ahead of their launch of the second bitcoin in the u.s. and then to the ceo of volvo cars, on the first vehicle using fossil fuel free created steel. and the ceo of vita coco joins us to discuss the public trading debut. taking a look at what is happening in the markets, nothing on the s&p 500. although it should be said that they did look like the s&p would follow european markets and has been bouncing back and forth between gains and losses, showing resilience. one of the main reasons is the big gains in tesla and adding 3% to an already 800 billion
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dollars stock makes a big difference. it is the biggest lift on the s&p 500. the biggest drag is paypal, down 4.9% on concerns about its attempts or reported attempts to buy pinterest, a 45 dealt -- $45 billion acquisition, a big deal and shows are selling off. something else that caught my eye is about bitcoin. the pro-share bitcoin strategy etf is falling today, but it sure has addressed the pent demand for the first bitcoin atf. it topped more than a billion dollars in today's according to bloomberg intelligent -- intelligence, the quickest one to reach a billion dollars and the second one will trade
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tomorrow. joining us from washington is leah wald , ceo of valkyrie. let me ask you about the demand. it looks like there is no end in sight for demand. how many etf products do you think this market can handle? leah: thank you for having me. it is definitely an exciting time. the market can handle a lot of different issuing products and we welcome the competition. we are coming in second to market but we are very excited and we wish our competition look and it is a pleasure to be here. >> why bite and etf for futures
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when you can buy bitcoin trust trading at a discount? >> that is very good and addresses quite a few concerns that people have. there is the legacy product and how is the etf structure better and why is a future space etf better than physically backed. would you plan on rolling into the next one as efficiently as possible and would you believe our team gives us an edge over other offerings and why own -- choose this fund when it is easy enough. futures, more efficient price
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discovery. lastly, there is no need to worry about risk around security. nasdaq treated etf. matt: one concern i have is looking at others and it is not unlikely that you see a 20% gain in oil and just standing still at the end of the year. they may match well day today but when you look over longer periods of time, there is gripped have you manage that? leah: and that is definitely an interesting point and something we have been asked a lot recently. i do think the market is large enough in order to handle the volume. i think our team is absolutely packed with experts in the industry and we are not concerned for that issue. >> what about the future? to your point, why get a future
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etf when you can buy the physical itself? how far are we to getting to etf's more linked to actual bitcoin as well as other forms of could do currencies? leah: very good question i have never been asked about other forms. but to the point of a spot bitcoin atf, it is the holy grail and a lot of people do believe it but unfortunately it appears to be far off and not likely to be approved this year. given that reality, we are excited and focused on the future etf's offered at this time. to your point about the other coins, we have longer time to wait. matt: in terms of a physical bitcoin etf, do you see that coming anytime soon? we have it in other countries,
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particularly for u.s. north in canada. we'll usc that anytime soon? -- will the u.s. see that anytime soon? leah: we believe next year may be a good time for that to happen we do not believe it will be approved this year. >> we noted before you came on that the other etf, shares down, trading half the volume that it was yesterday. what do you see going into tomorrow? leah: i think that is a great question and incredible trading in the first two days and we are excited about tomorrow because we think we are quite different from proshares. other asset managers are in the etf business, but we are embedded in the crypto market. investors can choose whether they want subject matter expertise to pivot as needed or
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they can go with the monolith that cares more about launching the next fun in this -- fund in this asset class that we are new to. the market will choose but there is plenty of demand to be had and everybody is looking and determining not only who is the right fit but who they morally align with. matt: on that say that you are a serial entrepreneur? do you start up businesses and then move on after a year or two or three? how long do you plan on staying with this? leah: i wouldn't, so a serial entrepreneur. i was involved with the founding of a company that connects unemployed veterans and mentors. but i have been in this visit and valkyrie is my future in my team is my family and i don't plan on going anywhere. >> still focusing on tomorrow
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because this is a landmark time for bitcoin, as well as the etf industry, who is buying? is this mostly institutions or mostly day traders? leah: i think that is a great question and in the weeks to come as we are able to analyze the data of the first few days of proshares and ours and others to follow, i think there is a lot smart money that moved in first. retail is also there. i think that is a great question we are keeping our eye on. matt: thanks so much for joining us. great to get some time with you. leah wald is the ceo of valkyrie that will be launching. our stop of the hour is next. -- our stock of the hour is
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next. this is bloomberg. ♪
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matt: this is "bloomberg markets." i'm matt miller. we work is having better luck this time on public after its 2019 attempt and the offer being pulled. we break this down. this is the debut. it feels like the second time around. ritika: this is the debut. let's take a walk back into history about how we got here. it has been a roller coaster ride when it comes to wework. in 2010 the company was founded. salad for nine years until in april 2019 they filed -- solid
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for nine years until in april 2019 they filed for the ipo and there was a $7 billion investment. we kind of forget that softbank was involved. here we are march 2021 and have the wework debuting via a spac deal. sales commit at $593 million, profits still in the negative and they are not positive yet. the occupancy rate caught my eye, 60% is what we are looking at. we are dealing with a volatile pandemic work environment. two years ago the occupancy was 70%. for valuations, a completely different story. i $9 billion valuation -- eight $9 billion valuation back in 2015. you can see how much it has -- a
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$9 billion valuation back in 2015. you can see how much it has lost. the question is, how do they perform after they hit the spac and that momentum is not there as it was early this year. matt: thank you for joining us. the first of its kind, volvo has released the first fossil free steel vehicle. we will steep -- speak to the lead engineer. this is bloomberg. ♪
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mark: i'm mark crumpton.
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leaving in place the strictest abortion law appeared in court papers filed today, texas attorney general ken paxton said the justice department lacked the grounds to challenge the measure, which bans almost all abortions after six weeks of pregnancy. on monday, the doj called on the hostesses -- and the justices to halt it. key income covid support programs ending. the country is introducing new targeted aid to help the hardest hit industries, finance minister said the new and expanded funding through early mate will cost $6 billion versus -- early may cost $6 billion versus $30 billion spent on all programs. india has given out one billion doses of covid vaccines but 51% of the entire population has received at least one shot, only 21% are fully vaccinated. that is according to the
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bloomberg vaccine tracker. that could mean future outbreaks in a country where earlier it experienced one of the most devastating virus waves. south korea successfully launched a rocket today. the liquid fuel rocket lifted off from the southern coast and released a satellite into orbit. south korea sees the program as strengthening its competitiveness in the next generation 60 communications while attracting attention as neighboring north korea -- in the next generation communications while attracting attention from neighboring north korea. global news 24 hours a day, online and at quicktake on bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg.
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amanda: welcome to "bloomberg markets." matt: we welcome our audiences each day. here are the top stories we are following from around the world. the latest on the ongoing supply chain crisis. live updates from the second busiest container port in the united states of america, the port of long beach. vita coco makes its public debut on the nasdaq. we will discuss and get an outlook on the market with the founder, mike kirban. volvo group releases the first fossil free vehicle. we will speak with the cheek -- chief technology officer, lars
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stenqvist. amanda: markets in positive territory. the s&p 500 doing well today, just merely positive but trading at high levels of the nasdaq is the weakest of the three but look at the 10 year yield, a bit of a m yields. u.s. five-year at levels not seen since february 2020. we will get the balance between rate expectations and the corporate earnings. we are seeing individual names suffering if they don't deliver what investors were matt: hoping to see. -- hoping to see. matt: bitcoin getting smashed after shooting well above 66,000. debbie someone -- maybe somebody will come in and buy the dip. volvo unveiling the world first
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vehicle using fossil free steel, with hydrogen being used as a fuel instead of carbon dioxide emissions and as well as being autonomous, at least it doesn't have a cab. it looks cool. joining us is the chief technology officer, lars stenqvist. a lot of people confused. you are at volvo group and you make the big rigs, trucks and what we are looking at is an autonomous dunkirk -- dump truck. lars: thank you for having me on. we make construction equipment. it is to be used in minds. -- mines.
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it is autonomous, no cab, no driver. amanda: and it will go along way towards helping some of the biggest emitters and companies get to their emission numbers. how close are you to mass productions and volumes where this will be into the market? lars: this is the collaboration with our partner. they are making it could to everyone that we are working hard when it comes to the vehicles in use and emissions. if we are serious about carbon neutral, then we need to address the manufacturing footprint of our vehicles. that is what we are doing now and considering that 70%, this
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is the area to attack first. this is very early days. we are the first takers of the early production and proud to be able to start, and more volume over the next year. matt: i am wondering how much more expensive it is and how much time it is going to take to get the price down to a point where you can use it for all of your vehicles. lars: as with all new technologies, there will be a difference in price, but over time when we see the volumes coming, the difference will be balanced out.
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in the long run, the market will go for it and it will be a competition for all of those in the industry. amanda: can we be more specific or ballpark what long run means? what are we looking at for having this be available in the market? lars: low volumes and we will increase over the next year. it will be a gradual increase. it will be about supply versus demand. the demand is there and it will be out of the steel manufacturing industry across the world. matt: are we going to see other companies? daimler is flirting with this as well. used to work at volkswagen and are familiar with the industry.
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is everyone going to start picking this up soon? lars: it is obvious that every company that is series about carbon neutral must take emissions out of the vehicle. i don't see any other options for any manufacturer. matt: great again. lars stenqvist, the chief technology officer at ab volvo, on the forefront of automotive technology for construction, earthmoving, and trucking industries. wall street profits are surging. bonuses are set to follow. the new york state comptroller said in a report that the
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security industry's pre-profit surged 13% from a year earlier, $31 billion in the quarter. bonuses for bankers are expected to rise 6.5 percent for the year 2021 from a year earlier -- to rise 6.5% for the year 2021 from a year earlier. that is including bonuses increased to four had $38,450 -- two 438,450. amanda: now you know your bonus is going up 6.5% and this is one of the places, wall street, where the fact profit margins are still allowed. you don't see them demanding
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better fees. matt: across the ocean from wall street, barclays helps to explain that very well. they had 25% fees on m&a. the m&a is sword and -- s oared and it is said businesses will go up. you can see maybe not everyone is going to get the bonuses, because not everybody is responsible for driving the prophets. coming up, we are going to go live to the port of long beach, california for the latest on the supply chain crisis as the global economy flights -- fights rising inflation. it is the biggest ports in the world and one of the biggest employers in the los angeles area. this is bloomberg. ♪
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>> it's really a matter about chips and chips. we have a shortage of components and we see delays in the shipping industry and congestion in the ports that probably intensified. >> has shifted from commodities alone to energy and labor. energy, we feel in trucking and shipping. >> transportation logistics, many countries in the world where procuring truck drivers is becoming the most important element of our supply chain. >> when it comes to the supply chain, supplies are probably not the future. you will always be looking for
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suppliers, factories operating and having multiple supplies. >> we see the same type of supply disturbance posing threats to the fourth quarter, but i would still not exaggerate. >> ultimate measures are brands available on shelves the way they are meant to be. in the top 10 markets, we put 96% on shelf availability for our products. matt: those were just some of the ceos who joined bloomberg television discussing the impact of the global supply chain crisis on their companies. i think the chips and ships was the one that hit home the most. these are the biggest problems in terms of stuff, the third problem being labor. that is probably the biggest one because you can't make chips and drive ships you don't have
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enough drivers. amanda: and we know when you decentralize a supply chain, you can see events where that is in fact the problem. one small event creates a bottleneck for the entire system. i would like, we are spending time on this, to hear what the solution is going forward. how do you manage the risk because it is a big one? matt: let's go out and ask caroline and romaine, they are at the long -- the los angeles port, one of the biggest employers in the l.a. area. it was featured yesterday in a column. what are you learning in terms of what's wrong? what needs to be fixed, how soon things can get back on track westmark romain -- track?
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romaine: what we have learned is if one thing goes wrong every thing goes wrong. caroline: this is the biggest seaport in the u.s. running 24/7. you need truck drivers to run 24/7. we have seen the cues. they have ripple effects. you have a that need to be open 20 47. -- open 20 47. 4/7. romaine: a lot of companies, massive companies that are responsible for everything you buy and if they are not working efficiently, that is why you are waiting.
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caroline: 65 vessels currently sitting out in the water it there are usually zero. they have been there 11.5 days. amanda: we are looking forward to the special and the problem is enormous. what do you expect to learn about potential solutions, including warning this was coming and for anyone who might oversee the whole system. is that remotely possible? romaine: you can make the port 24/7, but if the warehouse where the container is open is not 24/7, it does not matter. we are going to talk about staffing, and if your talk is broken down and you can't get the parts, then you can't pick up anything. caroline: what we don't want is
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a blame game. what we need is solutions and we hope to get that. people have been running the supply chain's for years and then talk about the perfect storm we are in. romaine: it will give you real insight into why we are in this s and hopefully we will get -- in this mess and hopefully we will get some answers. matt: i am going to watch our program. tune in or stay tuned at 2:00 p.m. for the special edition of bloomberg markets the close focusing on the global supply chain crisis. i want to point out, amanda, if you open the port 24/7, remain -- romaine or caroline made the point, you still need the truckers. if you don't have truckers, it
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is not like you can just sign up and be a trucker, you have to be a cdl. it is not easy to drive a tractor-trailer on the open roads. you need time and experience. there are a lot of difficult bridges that will take time to cross. amanda: a lot of connected. -- connected part. s. we are next with vita coco. this is bloomberg. ♪
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amanda: this is bloomberg markets. we are watching shares of vita coco that begin trading today. it leaves the coconut beverage maker at evaluation of more than a billion dollars. we have the ceo, ritika: -- we
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have the ceo, mike kirban. mike: i started building this business 17 years ago with my friend. it is one of the largest healthy beverage platforms out there. our flagship brand is one of the household staple. we have new brands and other categories as we want to be the leading player in healthy beverages and become one of the largest beverage companies in the market. being in the public market allows us the chance to achieve our potential of being are the largest and most impactful average companies. matt: tell us about the other brands. vita coco is established and popular already. everyone knows it and reaches for it if they are health-conscious or just
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thirsty. what other brands are you working on? mike: power lift is a new take on sports drinks. eta rate has owned this for generations. -- gatorade has owned this for generations. we are introducing a healthy sport drink like gatorade but has no sugar and has protein. you are taking the concepts that exist and adding functionality or health. a natural plant-based energy drink where we grew a leaf that grows in ecuador. it has more energy and caffeine than a rebel or a monster. today and future generations are looking for more. matt: you mentioned rebel and monster -- red bull and
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monster, but the athletes are not drinking it because it is not for you. where do you show up in terms of lifestyle events that we can see? mike: i think you are absolutely right. same with gatorade, they may use it to pour over each other but they are not drinking it. but they are drinking healthier stuff like vita coco or power lift or luna. the impact work that we do, building the biggest healthy beverage company and doing so while having an incredible impact on the communities in which we produce a product and sell our product. the message of building and growing and being profitable but doing all of that while trying to do the right thing at the same time is really resonating with today's consumer.
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amanda: would you ever entertain a takeover from the likes of a coke or pepsi? mike: you think we should take over coke or pepsi question mark i'm just kidding -- coke or pepsi? i am just kidding. this is my baby and have been working on it for years and this is a platform to drive further growth and have a greater impact. that is what i am excited about becoming a public country -- company. matt: thank you for joining us, mike kirban. this is bloomberg. ♪
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>> the most crucial moments in the trading day. this is "bloomberg markets the close" with caroline hodge,
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romaine bostick, and taylor riggs. ♪ caroline: it is 3 p.m. in new york at 11 a.m. in california. we are live. this is a special edition of bloomberg markets the close. i am romaine -- i am caroline hyde. romaine: and i am romaine bostick. we are out here at the second busiest port in the united states. the supply chain issues can need to hurt and raise a lot of concerns about when it will be done. mario cordero, the executive director, he will join us in just a minute. the supply chain, a hugely just six company, will be stopping by his will. caroline: we will have a serious ceo

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