Live on Bloomberg TV

00:00Let's just talk first and foremost about the Apple conversation, how worrying is this sort of violence erupting, one that you'd already brace yourself for, perhaps? Well, the reason I find it worrying, Caroline, is this is at least one we know about, which are the ones we don't know about. As we look ahead to how we roll out at the end of this year, which has been a very tentative one coming into the holiday season, is more of this is happening across China that we're not aware of. It means we are going to get some more bad news on supply chains as we head into the beginning of the next one. That's when looking out for me in the public markets. And this is a really interesting story, right? Why are we concerned about Django, Django, your accounts for four out of every five iPhone 14 pro handsets made, right. When you look at the stock story, the equity story. Are you worried? You know, this is a stock that's fed better than the S & P 500, but it's still down. And a lot of voices in the market saying, I'm not sure how impactful this will be in either direction for Apple. Well, as you heard from Ian, just the importance of that part of the world in terms of the concentration of chip manufacturing and consumer electronics manufacturing, I think in terms of the impact on the Apple story, the much bigger one has been around global demand. Everyone's accepted that supply chain disruption is going to be par for the course for a little bit longer. The big uncertainty right now is how is consumer sentiment? How is consumer debt going to start to dampen expenditure on discretionary items such as the iPhone? And when is inflation going to abate so that disposable income start coming back up again? I think those are the bigger drivers for the Apple story. And let's delve into that a little bit more, because, of course, you do have an wide array of investments and indeed areas that you'd like to focus on retail first and foremost as well. Talk to us a little bit about as we anticipate how Apple products will sell, but how every product will sell in the next few days. What is the consumer looking like to you? Well, you're really seeing Caroline Hyde. We've seen this. This is the first time we saw this in 2008, 2009. My background's private equity. And when ever this kind of dynamic came about, we would look to try to find two areas of retail to focus on, including attacking consumer products that are tech oriented. Higher income consumers tend to do fine. It is the lower income households that really struggle. The higher income individuals and consumers tend to trade down. We've seen that with Wal-Mart. I'm sure that some of the Best Buy news that we saw, what people are bargain hunting. That's your higher income consumer trying to go and find really great deals right now. That's what struggling household that's really been hit the hardest by inflation really being hit the hardest by energy prices. So I think we're going to see value retail do very well because everyone's going there and I think we're going to see luxury hold up when it comes to things like gifting and special holiday season expenditure. It's really bifurcated as an absolute and it's painful as always. The same people seem to get hurt, the same people seem to win. But interestingly, do the same players win? I'm thinking also of Amazon, which have a big exposure to this is a company that's become so large in every part of our lives. With this way we consume the visuals, whether it's about the way we spend all they're going to do well navigating this environment. Jim, what I love about Amazon actually Caroline Hyde, you know, I've talked about this in the past. I think that Amazon becomes its most innovative and its most creative and frankly its gutsiest when it comes to these kinds environments. So Amazon will announce they're going to be launching telehealth services. And I'm sure you saw that they've been trying to push into health care. They bought pill pack. They've been looking at ways to integrate pharma into their prime services. But this is where you see the Amazon stepping back and saying, okay, how am I going to allocate my capital now? It's actually not going to be on consumer stuff. It's going to be in services in places like health care. So I think those pivots are actually the strongest indicators right now for where we're going to see longer term investment trends. And another huge story of the week. Disney Bob, I back. Yeah. Well, Jay, pick out your reaction, please, as an investor in that company. Well, I got a star as a Brit, since there are now three of us here. I was playing the fourth so far. ISE, please take that back. The good almost as the kind of jumping off for when I saw that announcement. I think it's it's very good to have a safe pair of hands back in the saddle. And I think Ed and Caroline, when you look at what's happened over the last six to nine months, whether it's private companies, whether it's public ones, the businesses that have had bad news, whether it's attrition, subscription and Netflix, whether it's been SNAP, for example, where we've seen the number of users fall down, let's go and use that word again, Caroline Hyde occasion. The ones that at least come out with a plan have been rewarded. Netflix. We don't really know if it's going to work in the long run with the active. But they've been rewarded. The ones with no plan SNAP have been absolutely punished. Disney to me it's going to be a little bit somewhere in the middle right now. So we've got a trusted safe pair of hands back in the CEO seat. But we need to hear what the plan is going to be. And until we hear what that plan is, I do think we're going to have some uncertainty around Disney for the moment. I'm pleased by want to hear the details and we're so grateful to have you to wrap the news of the week. Just very quickly, before you go, give us the Ann Berry 2023 outlook. You know, well, I wish I were the bearer of brilliant news going into the Thanksgiving season, but I've been a bit more bearish than some. And I think that's because we're riding this of bubble at the moment of optimism that the Fed is going to start slowing down on their rate hikes. But I think this issue of how how much the consumer is suffering, not just in the US, also in Europe. I don't think we talk enough about Europe here in the US right now. And just the impact, I think we're going to see that filtering through in 2023. I'm really looking at much safer stories right now. Much less discretionary spending. I'm looking at all sorts of investments. The private side, but this is a longer term plays.

No schedule data available.

Violent Protests at Apple IPhone Plant in China

Threadneedle Ventures Managing Partner and Founder Ann Berry joins Caroline Hyde and Ed Ludlow to discuss the impact of protests at Apple's largest iPhone plant in China. Plus, her thoughts on Bob Iger coming back to Disney, and her outlook for the holiday shopping season. (Source: Bloomberg)

More From Bloomberg Technology
All episodes and clips