>> we are 30 minutes into theu.s wednesday. april 24. here are the top stories we are following. better than fear results for boeing. the embattled plane maker burned through $3.9 billion in the first quarter, less than expected. revenue beat estimates. t.c.w.'s e.t.f. ambitions after the firm acquired issuer engine number one last october. general jennifer granico joins to discuss the e.t.f. industry. 99 cents, that's been the price of arizona iced tea since 1999. the arizona berchtion founder and chairman joins in just a bit to talk to you the state of the consumer and inflation.

>> i'm katie in new york. welcome to bloomberg markets. you take a look at markets rate now. it's interesting. the s&p 500 only up about .2% despite what we are seeing in tesla right now. of course boeing, too. seeing a little bit after rise. a better story if you look at the nasdaq 100. there you are seeing more of the tesla effect. up 8.% after -- .8%. small caps just for fun. not too much action. currently the small caps index russell 2,000 is unchanged. boeing, the troubled pairliner says it burned through nearly $4 billion as it tries to get a handle on its manufacturing issues. ryan air c.e.o. says he's bullish on the company's future. >> we are seeing optimistic signs. we have seen aircraft being pulled.

from wichita to seattle. without any defects being carried over. i think that's a good sign. it's the speed of the manufacturing process in seattle. we are now getting with the new management team in place, i think we are going to hopefully see the end of these production challenges. katie: joaning us i am threeld to say we have sheila kahyaoglu. no one i would want to speak to more. except maybe dave calhoun himself. i have been saying these are bert than feared earnings. would you make that characterization? sheila: losing $4 billion of cash. with commercial losing $1s 1 billion. it put it in context these commercial revenues were in line with what they printed in 2020 during the pandemic. that's how low these revenue levels are. at the peak boeing was doing four x these revenues on a quarterly basis. lots of upside. that's why we haven't moved our

$300 price target. there is a lot of steps to get there. first, we need a new c.e.o. second the max rate fixed. katie: you haven't touched the buy rating. you have seen a path forward. sheila: wait we played our sector, aerospace defense and airlines, has been through the after market names as an offset. the anti-boeings of world. the general electrics of the world that continue to print these amazing results paired with an airline who has to benefit if they are not getting the max deliveries on time. i think boeing is still a duopoly. there is a lot of upside in the stock. i believe they'll get to $10 billion. i think ahead of that we have to fix the 737 max. there has to be a fix with spirit. it looks like spirit lost $300 million to $500 of cash flow in the first quarter. boeing has to shore up its balance sheet. they have to negotiate it with the unions. there is a long laundry list to get to that $10 billion. it's feasible.

katie: a lot to work through. you mentioned spirit. we heard from dave calhoun earlier this morning saying that the spirit aerosystems deal it's still on. is that the right move forward? sheila: i think it is. they are fix ago lot. the new c.e.o. has done a lot to fix spirit. one of the -- one of our suggestions is if you do take spirit in house, there needs to be a green field or big automation overhall at spirit. we estimate that will cost boeing 2003 $1 billion to $1.5 billion. in addition to spirit's takeout price. it's not just taking spirit in house. it's giving it -- eating cap x to automated systems. katie: when it comes to boeing we have been referring to the new c.e.o. all the new c.e.o. will have to do. we don't know who that is. we know that david calhoun is stepping down at the end of the year. had you a note out where you had a list of recommendations that you would give whoever the new

c.e.o. is. after hearing what we heard this morning, what advice would be first on your list to the new c.e.o.? sheila: the first is walkway from financial targets. and focus on quality and safety. which is what everybody's saying. then take steps to get to a 737 rate to 38. but also i think you have to invest in your workforce. the workforce hasn't had the -- i.a.m. hasn't had a pay raise since 2014. they are in for a big pay raise. their negotiations are over the summer. september is the deadline for those negotiations to take place. then i think things move along steadily from there if you invest in the spirit facility. then you have five years of essentially no investment in new technology. in the 2030 time frame can you announce a clean sheet aircraft. there is a lot to look forward to at boeing. that's why we haven't cut our price target. this is a global duopoly with great products across the 737 max. you do have optionality with the defense portfolio.

you don't have to keep with boeing. we have seen splits off companies where segments are not fitting. katie: before i let you go, the calls coming up at 10:30 a.m. what do you want to hear from executives? sheila: what's next over the next 30, 90, 120 days. what does the f.a.a. need. how much of this low level of production is self-inflicted from boeing versus the f.a.a.? where could we get to by the summer, by year-end. how far off will we be? katie: great conversation. thrilled to see you. our thanks to sheila of jeffries. take a lower look at the markets. we'll do that with charles lemonides. these value works c.i.o. and founder. joining me on set. we have two of the problem children out of the way. we heard from tesla and boeing. it's interesting, when you look at the big benchmark, the s&p 500. not too much of a reaction after what's been three straight weeks of losses. how are you feeling?

charles: markets have been super volatile over the past four, five months. we have had major bounce oft october low. we didn't have a pause for an awfully long time. we have seen a couple of weeks pullback. and i think the question is, which way do we jump near term? i think it's easier to know where we are going longer term. katie: tell me about what you see in the near term and how that stacks up against the longer term and think about the time frames? charles: i don't think there is a basis for the fed to be raising interest rates any time soon. the notion that rates are coming by the end of the year, whatever, it's not borne out these companies' operating results. there is no lack for demand of the boeing aircraft. they can't get them out the door. tesla, a little less demand, but the company is targeting massive indeficit reduction. and g.m. game without saying they are minting money. there is no problem with the demand in the economy. i think interest rates stay high for an extended period.

then i think that the overhang of the election is going to be palatable in the months ahead. we are in a very divided country with people having very strong feelings that the other guy is going to be a disaster. it doesn't matter which side of the aisle you are on. 90% of us are concerned that if the other guy wins, oh, my god, it will be terrible. that's a headwind for the markets. i think we are fighting those two big picture headwinds against the reality that we have had a major run. but on the other hand, we are flat over 2 1/2 years. more important, we are flat over 2 1/2 years. there are a lot of underlying opportunities in the market aside from the five most obvious names. that's where over the next year or two years you'll see investors focus. katie: tell me about some of those opportunities. i'm looking at your notes. i see rivian on there. i haven't seen that on a lot of love lists. what's your view? charles: we picked that stock up

this week -- last week. around these levels. it's obviously an all time low. we are value guys. to us value is a dollar's worth of assets for 50 cents. what rivian has is $9 billion worth of cash. and $8 billion equity cap. and $4 billion worth of debt. you have a big pile of cash. they invested a lot in their business to have a business. frankly, i think their product is the best product going. so you are in there at a very discounted price. i think the e.v. story long term is a clear winner. e.v. is just a better technology. the internal combustion engine is going away. it's a matter of time. and i think that the list of stand alone e.v. players is going to be really small. you are going through this moment when e.v. makers are being shaken out of the market. we had one file bankruptcy a month and a half ago. another one is probably a year

away. it's going to be very hard for an independent e.v. maker to sell cars when the customer wonders if they are going to be around in five years. i don't think rivian has that problem. rivian has a solid product line. and a very solid backing. they are 16% owned by amazon. amazon committed to buying $100,000 of their vehicles. amazon's going to be committed to their being in business and surviving. i think there will be two stand alone e.v. players. rivian is one. the product is great and i think it only gets better over time. katie: why the faith in a pure play stand alone e.v. maker such as rivian versus one of the legacy automakers who have strong established businesses they are looking and focusing on e.v.'s such as ford and g.m. charles: couple things. there is valuation and torque on

the upside. the stand alon automakers are market caps that are consequential and relative to the biz sighses. the torque on the upside isn't there. second, when you get disruptive technologies, it's hard for the incumbents to keep their position. there is a tremendous advantage to an entity that is not encumbered by what they were doing yesterday anti-day before -- and the day before. we have seen that in technology ref leutions -- revolutions time and again. it's hard for the incumbents to bury their internal combustion business. to rework their labor force. it's easier once you get over the hump of having a start-up go to a real business to build that and accelerate that is when you don't have the distraction and challenge of the legacy business. katie: we'll keep an eye on rivian. down 62% year to date.

charles: you know, what i think this market environment is providing us are a lot of companies that are going to be real, survivors. but after the two-year turmoil we have had in the market, that's been led -- the balance has been led by half a dozen great global names. there are a lot of other companies, one level down from those trillion and a half dollar equity caps that are super valued. and they have been left by dead for investors. katie: charles, you are a value manager. you also short companies as well. don't want specific names. but i find it interesting because it feels like this is a market that's so hard to find short targets. it feels like basically companies won't die. how do you think about that part of your portfolio? the short book? charles: we have had a lot of success in companies unwinding great stories over the past

couple years. and i think the thing we have going for us today is that there are a bunch of companies that have mediocre business prospects and are trading at 25 times to 35 times earnings. their basic business is challenged. they haven't had growth. and they are where they are because of some combination of investor doinged -- doggedness to keep them high n the sense they used to be higher so they are not that cheap yet. i think there are a bunch of these names that unwind. in our short book of 15 names, we have had two companies balances 20%, 20% because of the anticipation of a deal someone will buy them. we don't think either of those companies will be bought because we don't think their businesses are worth today's share price let alone a premium. these names are being held up hoping yesterday's 1% interest rate environment comes back and

you can finance purchases for -- with really cheap money. the cost to buy a company today in terms of interest expense is real. as opposed to two years ago, three years ago where are you buying -- irshoeing 1.5% convertible bonds and paying any price. katie: some of those targets thinking twice. really appreciate your time. our thanks to charles, value works c.i.o. and founder. look underneath these markets. what's moving with bloomberg's billy's top of the list tesla. >> tesla, last i checked, best in today's performance in more than three years. they didn't beat expectations. it was better than feared according to a lot of analysts. elon musk talked up plans for a cheaper e.v. that could come to market in 2025. one valued like an a.i. company. that's why you are seeing a massive rally this morning. stock was down 41% year to date

prior to the results. big bounce on an intraday basis but not doing much if you bought the stock ahead of 2024. katie: absolutely. what a story. we'll continue to follow that. eventually, too, the cheaper cars as well. talk about toys. hasbro having a great day. >> strong print when you look at tflt the big beat was on profitability. not revenue. this is one of the many companies that has been shedding businesses. cutting costs. laying off workers. really showcasing the ability to try to streamline operations. that's why the stock's up double-digits this morning. the big focus for the company has been leaning into some of those toys you can see like the nerf guns. it's been a while since i have been in a fight. it's being well received by investors. nor stock when you step back on a five-year basis hasn't done much. katie: the shares up by the most

in about a year. bring it home, visa. >> beating expectations. the big thing analysts were calling out was uncertainty aren't weather, global spending. they did see weakness in china. when you look at the rally, up more than 2% on an intraday basis, adding to what's been a strong 12, 16 month run for visa. beating expectations. people spending money. using credit cards. i personally have been trying to use more cash. companies are trying to charge us 3% to 35% fees to the consumer. when you look at the print, what management was talking b. visa credit card users are still out in full force. that's been in line with what we have been seeing from the underlying data on a strong consumer, even though there had a been some beating drum for recession for some time. katie: always great to see you. thank you for that roundup. now coming up, it's my favorite topic. we'll talk active e.t.f.'s and look at the breakout year that was.

jennifer granico. she join us next, this is bloomberg.

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katie: let's turn to the world of e.t.f.'s. investors still flooding into e.t.f.'s. of course competition in the space continues to heat up. joining us is jennifer granico. global head of distribution. t.c.w. is a leading global asset management five-minuterrer firm with over $200 billion in assets under management. great to see you again. jennifer: great to be here. katie: let's talk about the engine number one integration, t.c.w. bought up engine number one. that deal was announced in the summer. it closed in october.

what has integration looked like? jennifer: it's gone very smoothly. if you are acquired by a company that has a similar approach on how to invest and similar culture it makes sense. t.c.w. is a very investor-led firm with a great investment culture. so the integration has gone seamlessly. a lot of people think of the t.c.w. is being a core of the fixed incomport folio. but raising the engine number one to accelerate growth in the equity business. katie: i think of t.c.w. as a bond shop. maybe that says more about me. i think that's the reputation on the street as well. so let's talk about the e.t.f. lineup and what it will look like. there are three t.c.w. funds right now birthed by engine number one. when it comes to the e.t.c. lineup, how do you see the division between equities versus fixed income in the future? jennifer: we are looking to do both. our point of view is that there

are some investors who prefer mutual fund and retirement accounts often prefer those. there are investors buying e.t.f.'s. they want that vehicle. we are going to meet the demand. on the equity side we have some terrific long-term core equity strategies. many of those flows come in estimates today. when it comes to these megatrends where we think the average investor is too tethered to the index and missing some of these big opportunities, on the equity side we'll run those as e.t.f.'s. when it comes to fixed income, similar approach. where we have some great core mutual funds. we will expand the e.t.f. lineup. we are in with the s.e.c. on that and can't talk about that. katie: just broad brush strokes. black rock filed plans to do that. i think it was last week. you have morgan stanley in the past month coming out with a conversion.

when you think about bringing the e.t. f. lineup up to scale, talk broad brush, will that be new fund or conversions? jennifer: if you look at the equity business, we think that people have a way to get index exposure. can you use a variety of vehicles for that. we think the market is underexposed to a loft these megatrends. energy and power, transformation, what we do in s.p.p. on supply chain restoring if you are only in the index you are very underexposed because it has gotten so concentrated in the big tech names. from a lineup perspective we have those as e.t.f.'s. we also at t.c.w. have terrific equity strategies on artificial intelligence. we have been running it for many, many years. a very strong and strong track record in that space. we have another sort of thematic or tilt product that focuses on great business that is have a big compounding revenue.

those are places where we have a mutual fund. most of the assets aren't in retirement accounts today. so we'll simply take the mutual fund and convert it into an e.t.f. katie: what you're saying when you thinking about conversions and which funds would be appropriate to convert, it's the mutual funds that don't necessarily have a heavy presence in the retirement accounts. jennifer: that's right. because as t.c.w. we want to certificate have yous all those clients. if we have clients use ago mutual fund in retirement accounts, we want to service those clients. they are great clients of the firm. in other areas where the market is demanding e.t.f. or newer strategies or strategies like these megatrends like a.i. that are poised to grow, that's a place where we, we think other managers, should look at doing conversions. katie: that's important context there. let's learn a little bit more about the equity side. i think about the engine number one e.t.f.'s now housed at t.c.w. very thematic transformational. when you think about bringing new equity funds to market, are

they still going to have that sort of flavor to them? are you thinking about launching broad index tracking, very cheap funds? jennifer: we have an index fund which is both. for people that want an index fund we think that's a better index fund. we think about 80% of the annual shareholder votes every year are driving forward economic expansion for the company. bigger indexers are conflicted. that's a great alternative big large products. everything is active. what you should expect is active. if we look ter market environment we are in. the one we have this mortgage folio construction problem where people are too linked to an index which has gotten concentrated. on the other hand, we have very high rates. if you think an environment where money is not free, if money is free it's harder for one company to differentiate versus another, with higher rates and costs of capital, we have very strong conviction that we are able to understand how a system like power and energy changes. but then rear able to find the

best managed company with the best prospects. they are going to further pull away from other people in their category. we think this is a great market for the next 10-plus, however many years, where money is not freevment this is a great market. katie: before we say goodbye, i want your thoughts on a trnd i -- trend i netsed in the industry -- noticed in the industry i'm sure you are an aware. it's easier than ever to launch an e.t.f. when it comes to gathering assets that can be difficult n your seat is the head of distribution, how important is the distribution game right now? how much harder has it gotten? jennifer: i think it's always been hard. it's probably only going to get harder. that's a way to answer that question. if you think of what we do as managers, you always want to invest with a firm that is investment led, investor first, which we are at t.c.w. and you also need to look for ways to have a clear message. find products and strategy that is are in high demand with clients.

and then we work with a lot of advisory firms as partners to scale the business. distribution is very important to scale these products. people want to see products healthy and growing. katie: great conversation as always. glad we could spend time together. our thanks to jennifer of t.c.w. meanwhile, take a look at the markets. it's an interesting one. after we had the two problem children report boeing and tesla. they take a look at the of the s&p 500. not too much movement. only up by about .2%. you look at the nasdaq, still up about .6%. not exactly a rip roaring rally there. we'll continue to keep an eye on that one. coming up, inflation has been steadily rising. arizona i. -- ice tea has stayed at 99. we'll talk to the president next. this is bloomberg.

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katie: as consumers see prices rise across the supermarket aisles one brand is bucking the trend. arizona beverages has been selling ice tea cans since 1992 and they have no plans on raising prices. don vultaggio is the founder and chairman. he joins me now. the obvious first question i have to ask you is have you rethought that decision to keep prices stable adult? -- at all? the prices have reset higher in the past couple of years. don: it's a constant battle. i think about it because when things get totally out of control as they were a couple of years ago, the inflation has come off a bit but it's still sticky in certain areas. we have no plans on raising

prices. you're trying to maintain that pricing. equally as important we have had the belt tightened to maintain that price. we are committed. katie: we have seen dollar stores, a lot of them charging prices that are over a dollar. everyone is feeling the pinch. in tightening the belt, maintaining those prices, what goes into that $.99? how do you maintain margins at that level? what have you actually done? don: we spent of the lines -- sped up the lines on the manufacturing side. we used to pack big cans of couple of hundred a minute. now it is 1600 a minute. a 10 fold increase in productivity. thin walled cans. those kind of things are important.

those are things we can do without affecting the consumer. we move things at night. we built a facility in edison, new jersey. that plant has rail sightings per 35 cars in the art. please boxcars. we bring things in by tanker. we have taken thousands of trucks off the road in new jersey. more portly -- importantly, it is weight, it's heavy. if you moved by rail it is more efficient than by truck. katie: you made a number of points. let's start with the actual cans. sounds like you have adjusted the lids. have you made them smaller as well? don: no. it is still a big can. changing can size is expensive

for manufacturers. the ends are something they work together with us to get the end down where the opening is sufficient for a nice drinking experience. the end is radically -- it's a thing in the last year and half when you went from 209 to 206. we shrunk by a third. as a company we do -- i have the good fortune of having great success in the beverage industry. i'm dead-free. -- debt-three. -- debt-free.when you can withstand increases over the years that, you and sometimes settle down, we have held the line and we continue to do it. hopefully we can keep doing it

with a lot of hard work on the part of my peers and partners who supply me things. katie: i want to follow up on how you actually move your cans around. rail is a cheaper, more efficient way to do that than trucking. has that switch changed where your products are available in the country? don: no. we are nationally available. whenever have the plant with the ability to load boxcars and bring in materials like sugar and polypropylene by rail. now we have and we have been using the heck out of it. if you can put it on a boxcar, it's equivalent of five truckloads of a standard truck. that helps a lot. one locomotive pulling cars versus one guy driving a truck. that type of efficiency is

terrific. we did not have the ability to do it until recently. most of our facilities don't have rail sightings. this one we designed to have that, use the heck out of it. katie: inflation is a hot topic for consumers and players in the beverage industry. let's talk about the actual competitive landscape. since 1992, they have been plenty more brands that have come out. iced teas, energy drinks, sodas, etc. how has the competitive landscape changed and you trying to maintain your share here? don: back in 1992, it looked dramatically different than it does today. there were no energy drink spec then. -- back then. there were drinks that have benefits and those did not exist back then. it has become more competitive but i still compete with giants

in the industry. those giants are not as nimble as we are. we are able to stay ahead of the. we started with two cans, two flavors back in 1992. today we have close to 500 sku's . in order to do that, to stay relevant he have to find new ways to get consumers to switch from a brand they drink hours. we will continue to grow our business. so far, so good. katie: to have to keep finding new ways to innovate and draw and do consumers. i imagine that comes down to spend. you have to invest to do that. how do you weigh the importance of investing to grow your audience and look at new brands versus trying to keep prices

stable? don: one of my sons came to the company close to 20 years ago now. our website was one page. today there's all kinds of communications going on with things i know very little about. that whole world of the internet. communicating. traditional advertising, i don't believe in it. i think it is a waste of time and money. the online communications is vibrant today and it's a big part of our business. as well as i think part of what makes the company successful is i started as a truck driver. i unloaded the trucks and loaded the trucks, wrote the invoice, delivered the product, collected it. i have inside that some of the execs that run my competitor companies don't have. not that they are ignorant.

they're not. but they don't have the basic understanding of the business. when i talked to a distributor i am more relevant than someone who never drove the truck. we still on the trucks. i like driving the forklift. i'm one of the world's best forklift drivers. katie: some actual on the ground experience, that definitely helps you. you brought up distribution. we were talking about etf distribution in the previous segment. let's talk about the actual beverage industry. that's fascinating. how has that conversation changed in terms of what stores you are getting your products placed in? don: there is less competition at the distributor level. there are less distributors today with consolidation which is sometimes trouble. some have multiple offerings of teas and juices.

it's a competitive field. that has changed a bit. when i started in the business in new york city they were probably 50 different choices produced region. today there are a handful. they consolidated, went out of business, the world changed. 70, i start -- in 1970, i started as a truck driver is over -- at a brewery in brooklyn. today there is not that situation. it is all multi-brands. one house will have different products. miller, coors, those type of things. that landscape has changed. i'm comfortable talking to distributors because i am a distributor. i was a distributor. i started as a distributor. i have some practical approaches

some in major companies don't have. we are dealing with independent operators. most of them family-owned like me. i don't look for anybody to spend their money foolishly because i hate that myself. i'm a practical guide and practical is not something that exists sometimes because of the way the world changed. i can do these foolish things and be successful. no. you have to understand where you are going and what you want to do. i hate to lose. you have to be willing to win and work hard to win. part of our success is that the philosophy i gained over 50 plus years in the business. something that's appreciated by distributors as well as retailers. i used to be a retailer as well. i can say with the buyer and understand his issues as well. that is what makes us unique. that is what keeps us competitive. katie: unfortunately we have to

leave it there. i feel we can keep on going. really enjoyed the conversation. hope to speak to begin soon. that is don vultaggio of arizona beverages. we will check the markets with abigail doolittle. abigail: of possibility of three up days in a row. small gains for the s&p 500 but given the selling in the last three weeks coming into this week that could be something. the russell 2000 down slightly now. that small-cap index has outperformed over the last two days. a little bit of a breather today. as for what could be next for the s&p 500, this actually -- yes, this is the s&p 500. this is the uptrend out of the october 2023 lows. the 50 day moving average starting to flatten. 200 day moving average. we have the s&p 500 hitting right up toward the top of the resistance. this is expanding as opposed to two parallel lines, that is typically bearish.

investors don't know why they bought over the last couple of days. it suggests we could see the s&p 500 go back down towards the bottom of the range or probably close to 4700, somewhere thereabouts in quick time. what will it come down to? some of the tech earnings we have had. tesla reported last night. nothing quarter was great but it the outlook in terms of cheaper ev's being closer to the future. investors love the possibility of growth. microsoft and alphabet are coming up this week. meta tonight. that stock up 133% in the last year. katie: abigail doolittle, thank you so much. stay tuned. natural gas could hold the answer to the issue of access in the energy transition. that is next. this is bloomberg. ♪

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abigail: this is bloomberg markets. coming up, john lawler joins

bloomberg tv at 4:00 p.m. new york time. this is bloomberg. ♪ katie: time for the daily wall street we conversation. energy has been among the more affected spaces as tensions have notched higher in the middle east and ukraine. in an interview with david westin, new fortress energy ceo wes eaton's talks about the effect of the geopolitics on the energy transition and particularly on natural gas. wes: there is 400 million tons of production the world that will double the next couple of years. you have the ukrainian-russian work. that caused prices to go through the roof, to the atmosphere. they settled down but gas is the

true transition fuel as we talk about energy transition. people lack power all over the world. gas is the cleanest version of the way to get there in the short term. it works well with renewables what you need to have baselevel dispatch when the sun does not shine in the wind does not blow. prices have come back down from where they were a couple of years ago. they are relatively elevated. the market says in the next two years they could be some modest supply shortages. it will normalize by the end of the decade. david: you mentioned the war in ukraine and the effect on lng prices. now we have a war in israel with hamas. we have seen some effect on oil prices, perhaps not long-term. how sensitive is the gas price to the oil price? wes: it does tend to trade roughly the same as brent. you get pressures on it.

there is different applications. in the united states less than 1% of electricity comes from oil. to come from natural gas or renewables and nuclear, hydroelectric and whatnot. less than 1% from oil. and a lot of emerging markets it is the opposite. distillate fuels are the primary fuel source for a lot of countries. it tends to be highly correlated. as prices spike on the oil side you can get big spikes to those economies on the natural gas side as well. it is something to keep their eye on. the goal long-term is to give them access to cheaper, more reliable and cleaner power. the way to get there is natural gas. the demand is there. these geopolitical issues can really wreak havoc. that is what there is some concern about. david: the government can have an effect. how has that affected the market now? wes: it creates some uncertainty. in my own opinion it is

unfortunate. the u.s. is the biggest exporter of lng in the world. it is a huge balance of payments . it's a big geopolitical tool to help out our friends and neighbors. it's unfortunate. i would hope it is temporary by nature. when they go through whatever evaluation periods, they decided makes sense to lift the ban. it does not affect us a lot of the short-term. we have the approvals of our customers. no question we want to see free access to the world markets which is appropriate and the right thing to do. david: your lng facility in mexico is about to go online. hasn't started yet? -- has it started yet? wes: it's in the final stages of commissioning. it's an 80-day kind of thing.

the guys are working 24 hours a day and have made great progress on it. it's the last inch across the goal line is what we are looking for now. we should have good news coming at that facility very soon in the near-term. katie: what markets -- david: how sensitive is chinese demand? wes: that's a good question. china has come from nowhere to be 20% of the import of lng. asia itself is about two thirds or three quarters. where we are focus now is a handful of markets. jamaica, puerto rico, mexico, nicaragua and brazil. we have a large business in brazil. those of the markets we are focused on. we have dominant positions that give us a lot of access to organic growth in those markets. we think we can be good partners with the governments and utilities and customers down there. the truth is there are many markets that need the same kind of help these countries are

looking for in their david: fuel supply. david:you mentioned this is the way to go for energy transition. this is key to the energy transition. when it comes to power plants how difficult is it to make the transition to gas power? wes: it is not difficult really. building the infrastructure to import it can be challenging with permits and timing but is not difficult. we have done it in a bunch of different markets. we have a good playbook for how you do it market by market. long-term i'm a big believer in nuclear power. there are clean sources of reliable power that are great. the renewable stuff is great and lesser quantities. it is not a dispensable thing. until there is an energy storage solution that is cost-effective you can't just run solar during the day and user batteries at night. that's not an effective way cost wise. if you think in those terms, gas power is a big battery.

it's a cost-effective way to turn on renewables or not. those things in tandem are the energy profile of the current and future near-term. that future. near-term, low-cost and more available nuclear power becomes the next step on that. that is not tomorrow. there is a long road ahead for gas as a transition field. katie: that was wed edens with david westin who joins me know. really interesting conversation on what you were talking about when he comes to geo-clinical risks. it feels like the stock market has been able to shake it off. maybe not the case when it comes to energy. david: he thinks there will be elevated demand for natural gas as we make the energy transition. if there is more geo-put up a conflict that is just upside for him. prices just drive up. he's got markets in latin america and the caribbean he's

focused on. that is basically his business plan in the foreseeable future. katie: are really global perspective. great conversation with wes. david: we will turn to inflation tomorrow and peter boorish, they big commodities got. take a look at inflation from the point of view of commodities and the higher price of commodities. katie: a hot topic there. really looking forward to that conversation. our thanks to david westin. this is bloomberg. ♪

katie: let's take a quick look at some stocks hitting highs and lows today. boston scientific hitting a 52-week high after a boosted guidance for the full year. better-than-expected first-quarter results. shares of about 6.5%. adidas hitting highs after it was raised to a buy.

that's good for a 10th of a percent. deutsche bank was hitting a 52-week high ahead of its first quarter results, now taking a little bit of a leg lower, about .6%. the luxury company morning the profit will plunge in the first half of the year on slow sales at gucci, its biggest brand. it is down by more than 5% over the past two days. president biden set to deliver remarks on the ukraine aid package from the white house. we will bring that to you live when it happens. coming up we have bloomberg technology in the next hour. that does it for bloomberg markets. i'm katie greifeld and this is bloomberg. ♪ thanks to avalara, we can calculate

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campaign against ukraine. they have killed tens of thousands of ukrainians. bond hospitals -- bombed hospitals, kindergartens, grain silos. tried to plunge ukraine into a cold and dark winter by striking their power grid. ukraine -- the ukrainians have ntry and families with their extraordinary courage. many have been there with me many times. it's amazing what they do. it's amazing against such larger military. ukraine has regained over half the territory russia took from them in the invasion. they won victories against russia's navy. they are a fighting force with a will and a skill to win.

the will and the skill to win. for months while maga republicans are blocking aid ukraine has been running out of shells and emanation. putin's friends are keeping him multiplied. iran syndromes. north korea sent ballistic missiles. china provided components and know how to boost russia's defense production. with all this support russia has ramped up air against ukrainian cities and critical infrastructure. rained down munitions on rave ukrainians defending their homeland. now america will send ukraine the supplies they need to keep them in the fight. this weekend -- i find this amazing. reports of cheers breaking out in the trenches in eastern ukraine. probably came from one of you folks, the reporters. i'm not sure who it came from. they are cheering as they watch the house