Episode summary
BI Weekend: Delta Earnings, Google-Apple Deal, Lululemon Outlook | Bloomberg Intelligence
Bloomberg Intelligence
· · 39 min · Hosts: Scarlet Fu, Alexandra Semenova · Guests: George Ferguson, Matthew Boyle, Anurag Rana, Poonam Goyal, Sam Fazeli, Mandeep Singh, Travis Hess
Summary
Delta Airlines’ fourth-quarter miss set up a broader conversation about how the airline industry is shifting toward premium travel, even as the company warned that geopolitics and domestic policy could cloud 2026. A guest said premium and loyalty revenue are still growing faster than GDP, but main-cabin revenue weakened, and that could become a problem if too many carriers chase the same upscale customer. He also said consolidation is already starting at the low end of the market, though the biggest airlines are unlikely to merge.
The show also examined a Bloomberg Big Take story on how CEOs are navigating a more confrontational Trump White House. The guest said public pushback is usually limited to the most powerful executives, while most companies prefer quiet lobbying, direct outreach, or symbolic gestures. He argued that Trump’s second term is more “unshackled” than the first, leaving CEOs with fewer institutional checks to rely on.
On tech, the guests focused on Alphabet’s multiyear deal to supply Apple with AI models for Siri and on Meta’s Reality Labs cuts. One guest said Apple is outsourcing hard model work while preserving privacy, while another said Meta is moving away from expensive VR bets toward AI. The episode also covered Lululemon’s improving sales outlook, Nvidia’s planned $1 billion AI lab investment with Eli Lilly, and how AI is beginning to reshape shopping through Google’s commerce protocols.
Key takeaways
- George Ferguson said Delta’s premium and loyalty revenue is still strong, but main-cabin weakness shows the upside is not broad-based yet.
- George Ferguson said consolidation is already visible among smaller low-cost airlines, while the largest U.S. carriers are unlikely to merge.
- Matthew Boyle said most CEOs avoid open conflict with Trump, relying instead on background lobbying and direct access to the White House.
- Anurag Rana said Apple is using Google’s models while keeping control of data and privacy inside its own software stack.
- Poonam Goyal said Lululemon’s higher-end sales guide is better than feared, but not enough to prove the turnaround has started.
- Mandeep Singh said Alphabet is best positioned to beat earnings expectations among big tech because of its efficient AI stack and lower-cost inference.
Notable quotes
“premium and the loyalty revenue are are rolling in strongly rolling in I think sort of 5 to 7% if I recall correctly”
“I think we're at the beginning of the year and and uh management teams like to caveat things right”
“but for Apple it has to be integrated within the iOS within the software”
How the episode opens
Bloomberg Audio Studios podcasts, radio news. This is Bloomberg Intelligence — With Scarlett Fu and Paul Sweeney. — How do you think the Fed is looking at tariffs, the uncertainty of tariffs? — Let's take a look at the sectors and how they perform.
A lot of investors getting whipsawed every day by news events — Breaking market headlines — And corporate news from across the globe. — Could we see a market disruption, a market event? Are people just too exuberant out there? — You see some so-called lowquality stocks driving this short-term rally.
Bloomberg Intelligence — With Scarlet Fu and Paul Sweeney
On Bloomberg Radio, YouTube, and Bloomberg Originals. I'm Scarlett Fu. And I'm Alexander Seinova, filling in for Paul Sweeney.
On today's Bloomberg Intelligence Show, we dig inside the big business stories impacting Wall Street and the global markets. Each and every week, we provide in-depth research and data on some of the 2,000 companies in 130 industries our analysts cover worldwide. Today, we'll look at why the athletic apparel company Lululemon sees signs of a rebound in the fourth quarter.
Plus, a look at why the tech giant Meta is beginning to cut more jobs at its reality labs division. But first, we begin with the aerospace industry. This week, Delta Airlines reported fourth quarter earnings that missed Wall Street's expectations.
The company also said it will be taking a more cautious view for 2026. For more, Alex and I were joined by George Ferguson, Bloomberg Intelligence senior aerospace, defense, and airlines analyst. We first asked George for his take on Delta's recent earnings.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- delta earnings
- google apple deal
- ai drug lab investment
- tech layoffs
- retail guidance outlook
Companies and tickers mentioned
- DAL
- GOOGL
- GOOG
- AAPL
- LULU
- NVDA
- LLY
- META
- Delta Air Lines
- Alphabet (Google)
- Apple
- Lululemon Athletica
- Nvidia
- Eli Lilly
- Meta
Watch the episode
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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