Transcript
Live. From the frozen tundra in Green Bay Wisconsin. It's a tacky Tuesday edition of businessman's joined. As always by Emma, Oreos, lurking and Matt Chips, Ahoy moscati. I'm an indeterminate Puck of gristle. Oh, I feel like I'm more Hydrox I was gonna put hydroxide I thought that was like no one would know what that was you know Hydrox are you don't know what that is? They're like the different brand of Oreos. It's Oreos but different right? Okay fine she knows no. In today's double bag bag called March 22nd 2022. Damion does war. I said Matt lurk around. They lurk they lurk it's all day and show not real. Let's just get to it then let's do it. It's Russia. Quick hits puts a lot of pressure on me. That's all I'm gonna say not. I don't I mean forget about how hard it must be to live through a war in your country. This is, this is harder having to report on a war. When and Matt has doesn't bring a story that's more difficult. That's true. Well I'm prepping the stories for tomorrow, where we do the Deep climate dive on the SEC, that sounds and he appears Than anything. Honestly. If, if they made SCC commissioner posters I would have a poster of Hester Peirce on my wall. I love everything. She likes. Duncan on Shaq, I want that deep into it. We'll do that tomorrow, though. All right, because it feels slightly icky to not talk about the war on Ukraine. I thought I'd update some of the dirt bike companies who were under Fire for the Russian ties. Let's do this. Yay. I'm gonna tell you why they probably suck they do and then I'm gonna make some random Facebook comparisons good. But before I get started, Matt here's the one thing that everybody's staying in Russia seems to have in common. Nobody is going to profit from anything. They all seemed to say that and where are they going to disclose the proof of that? The end of the rainbow and Candyland, where where really people were so upset about ESG data, but but where, where are they going to show us that they're not profiting, really. Honestly, I was just reading just say a thing. Yeah, I was just reading from 1976 some SEC comments about the Arab boycott. And yet, they say lots of things that aren't that are fun, Rainbow Magic unicorns. Okay, let's go over the list of companies that are staying in. Russia were no announced Monday will resume production at its Moscow plant. After a pause due to logistical issues related to the Russian invasion. That's a good reason to just making it issue. Yeah. Making it one of the only multinational companies to make no noticeable changes to its Russian operations. Reno shares of Fallen more than 30% since Russia began to war. So that's sounds like A problem but still logistical issue. Here's probably why we're no socks. So France has a requirement that 40% of the board has to be women. Renowned doesn't even care about that. It's only 35% of the board. Yeah, good job. That might be where they saw. Only two of 12 executives are women? That's another reason. Maybe they suck. France owned, 15% of Renault but actually owns 29% of the voting power. Maybe that's not true this suck. Yeah, yes. There's a There's a law. There are double voting rights laws in France, which essentially means if you've owned shares for certain length of time, which really only means the French government. Those Shares are worth more, have more voting power Whoa, yeah. Loyalty shares. What? Yes Also Nissan holds 15% of this company. Nissan also doesn't like women. Only two out of 12 board members so you can see the pattern here. If women were in charge, they would be at a Russia. That's see, that's the incredible. Analysis. I did they disclose what the logistic issue was. Was it bombs? I'm curious probably that people were yelling at them. I think people were yelling at them. I mean enough next no key in tires said, Tuesday, it would continue production for its passenger car tires and Russia and its CEO defended the move, as a way to prevent Russia from overtaking, the factory to make tires for its military. This is the old classic, but Russia will just step in and make the cheeseburgers. If we don't argument, I did see that. Yeah. Let's again, only 22% of the Border women despite the fact that the state of Finland, the country of Finland encourages 40% and only 30% of management is women including Human Resources? Yes, and corporate commun. Patient double whammy. Yeah. So this is if women were in charge, they would be out of Russia, part two. Okay? Good for Noki and tired. Let's move on to the Leroy. Merlin I've never heard of this company, which said, earlier this month that it's 112 Russian stores. Will continue normal operations. They came under fire at the Ukraine's. Ministry of Defence tweeted. An image of what appears to be a lead, Roy Merlin store. Destroyed by Russian bombing in Ukraine. Writing Leroy Merlin became the first company in the world to finance the bombing of its own stores. Wow you know credit where credit's due ukraines social media team. Is epic. They are truly epic. They are me more worthy. Epic good for them. Just because you say epic 3 times does not make it. So it is Leroy Merlin, here's why they probably sucked. They are a private company controlled by a rich French family. And this is why nobody should invest in meta in Facebook and duck. See how I kind of see how you did that. There are private. Yeah, all so I got you because we, nobody has a say, except for this French family, so they don't care. They don't care. Can I ask what Leroy Merlin does they do selling? Yeah, they lean heavily and I would ruin you think I should know this information, but again they're retailers, it's just a retailer. They do like, you know, Retail actually on their website. There, they they state, they're involved in improving housing and living environment of people. Okay. That's a good thing. That's a good thing to be involved with frankly, up next, Nestle, Nestle wholesale is hated by everybody. Ukrainian president, zelensky criticized Swiss Food Giant Nestle for continuing to sell goods and Russia. he pointed out their good food, good life, slogan and said, I don't really get this cool magnet help me with this. He said, business Works in Russia, even though our children are dying in our cities are being destroyed. I get the sentiment here. I get these pissed. There's just don't really get the quote. I mean. Angry, it's anger, angry. Maintains it only sells essential products in turns no profit in the country. Oh, that's so nice. uh, once again, we got a 5 out of 14 board members are women? But zero board leadership. They're involved with nothing important on the board. Nothing Great, not even sniffing anything important. And two out of 16. Executives are women? And who are they? The head of Human Resources. Yeah. And of course general counsel. Yeah. It's usually a lawyer and I had a human resources. The shrill annoying lawyer and the cuddly Human Resources lady. Yeah. To that, I say Jesus. So this is if women were in charge they would be at a Russia part 3. Okay? Moving on Koch Industries. I mean guessing that's this one's not surprising. Is this one? Surprising by know, this is not surprising, but I am just talking about this so I can do another digit Facebook. So, this is the second largest private company in the US. It's stuck by its subsidiary. Continuing to operate, its two glass manufacturing facilities. The CEO explained in a statement that the company does not want to abandon its employees in the country or hand over these manufacturing facilities, the Russian government so it can operate and benefit from them. So this is the old classic but Russia will just step in and make the cheeseburgers if we don't argument part two. Oh once again, everyone in leadership. This company is a dude. It's all, they're all men. And so this is if women were in charge, they would be able to rush apart four. And this is also why nobody should invest in meta Facebook suck part two. There's some deep themes here. Let's just see what happens when you have a private private company like meta and Facebook. No one can affect it. It's okay. It's dudes. Making cheeseburgers that are private. That's that's the argument with that one. Yeah. And finally, let's talk about fast food companies. I thought I'd throw this in. These are my favorite because we make fun of Emma for loving fast food and, you know, it's just part of the joke. We do here. Even though why did we do that? We shouldn't know. It's true. Jokes are not buzzing us anymore. I said, my life was harder because I have to do a show myself. She didn't even buzzed me. So, I don't know. You clearly don't understand the buzzing criteria. Know I don't. What are the criteria? You have to be a joke. I know you don't really mean that. I think we've killed Emma's Soul. That's what we've done here. Yes, thank God true. Okay, according to reports McDonald's Burger King and Papa John's can't just close their stores in Russia there because fast food chains, operate largely through franchise agreements, where restaurants are operated by Third parties, that's their excuse franchising. Makes it more complicated for international companies to close Russian locations. Contracts can only be terminated. If one of the parties violates the terms, what kind of terms are? These must be flimsy terms, right? Yeah. Well, talk about flimsy. Yeah. Okay. And intellectual property. Lawyers said they can't just rip up. A franchisee agreement as the franchisee hasn't done anything wrong. It's the government that is the issue only. If a franchisee is acting in a way that harms the brand, then they would have the right to terminate the contract, but we reported being the show that were no stock price is down 30%. That seems to be affecting the brands everyone's pissed at these companies. I don't know how that doesn't affect the brand, and I will add this that Yale management here or Jeffrey sonnenfeld argues that the companies can just buy out their franchisees or licensees in their by exit Russia. So I guess it's a bit of bullshit this whole There's nothing they can do about it according to Jeffrey. Well, I like Burger King weighed in restaurant Brands, the international owns Burger King and they weighed in on this and this is David Shearer. President of international restaurant brands, He said. We've been asked why we can't unilaterally suspend operations. I want to answer that question directly. And then gave three paragraphs of sort of indirect legal discussion. My favorite part of it is. He basically, says, there's no legal Clauses that allow us to unilaterally change a contract, or allow any one of the partners, just simply walk away. So we made an agreement. We were Partners were Bros. Can't just walk away from that agreement. because of quote, Know. Here it is. In any industry? No serious investor. In any industry in the world would agree to a long-term business relationship with quote? Flimsy, termination clauses. I'm assuming the flimsy. Termination Clause is your country is is led by a war. Criminal who's destroying maternity Wards, that's a little flimsy for us to overturn a business relationship. It needs to be something more concrete than that. But what is it? What is the penalty here really, though? I mean, if if Seinfeld is right and I'm kissing, you probably is a they can just buy it out the contract, but be it. So what they They breach on the contract. What's really gonna happen to them? How bad is the? I mean, who's like, which court know? Right. Where they're like? That, that's the part. That feels maybe. Not so true. There's a good news. Yeah, I have better news, so you give me some good news. I'm Gonna Give You better news. Well, I'm gonna say the good news is before I stopped talking is that If they. If they stop making the cheeseburgers and Russia will make the cheeseburgers. So at least these aren't rushing cheeseburgers. You know, he's not nearly as delicious, right? So that's one point of good news. The second point of good news is that I'm pretty sure that no one at Burger King will profit out of any of this. No, I doubt it. I doubt it. Because when a war happens, you can't they you stopped profiting. I did see how it works. I one of the funny things is that like, there's a lot of conversation about like the Warm Machine manufacturers, basically, profiting from war and destruction and all those things. No one ever talks about Burger. King, profiting from war, but Burger King has said quote. We've also worked with franchisees from more than 25 countries to distribute 2 million dollars of free meal coupons for Burger King restaurants to ngos supporting Ukrainian refugees. So you Cranium refugees, you don't have a home. You don't have a country. You've had been forced to flee. They bombed your maternity Wards. We Can't Stop operating in the country. That's bombing you. But here's a free cheeseburger from another Burger King. Problem solved. Could concerning the CEO of restaurant Brands International made over 20 million dollars last year. That's, that's that sounds like a pretty good piton, he paid. He was 10% of his own salary, to feed a few cheeseburgers, but not the Russian ones. To be fair. It's a little under 10%, you know. Good to 10%. All right, that's it. That's all I got. That was Damian Rallis. Wait, what are we doing tomorrow? We call it woke data Wednesday. Well, it's either well, Wednesday woke data Wednesday. What either term? I'm sure Emma. Hey, what should what bothers you Wednesday, what? I don't know which one bothers him a more. I'm gonna go with liberal Progressive. Woke Wednesday. Capital. What? Capital is Wednesday. There we go. There's all the keywords. What capital? Oh, there we go. Yep! Yes. Yep and hating it already very very strongly. Thank you. We're tomorrow we're gonna talk oh conscious conscious capitalism trying to trigger that's one. Oh wow conscious worst tomorrow, we're gonna talk about the sec's. Monster proposal about climate disclosure. I mean, is that does it get hotter than that? Like, get your SEC trading cards out because I am looking forward to trading my rookie Gary Gensler card someday. On the back of this performance, we're also going to have Hester Pearson's dissent, and then we're gonna have a bunch of other wooky stuff, but that otherwise, that was Damian, Ross, doing all the heavy lifting Emma, lurked and I was Matt lurking. Today, we are free float media. This is pants, we'll be back tomorrow with more stuff. Goodbye. Know.