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Bloomberg Money: SK hynix, Federal Reserve Trust, Prenups · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, Bloomberg Money.
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  Speaker 2: This is the Bloomberg Money Podcast. I'm Tom Keen with
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  Speaker 2: Scarlett Foo. Join us each week for a smart look
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  Speaker 2: and the Bloomberg Business App. We've got a Bloomberg panel,
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  Speaker 2: so worthies here to get us start to day.
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  Speaker 3: David Gura is with us.
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  Speaker 2: Lots to talk about with him really closer to the
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  Speaker 2: election in November, Man Deep saying hasn't slept in the
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  Speaker 2: three days.
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  Speaker 3: He joins us with Bloomberg and tells you two were
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  Speaker 3: just together, Yes we were Technology show.
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  Speaker 4: Well, yeah, thank you, thank you.
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  Speaker 3: And with us today is Katherine Greyfield.
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  Speaker 2: Katie Greyfield, expert on ETFs and I got out the
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  Speaker 2: surveillance rolodex and the Bloomberg money both on Rolodex, and
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  Speaker 2: I said, who knows about Trump accounts? And we had
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  Speaker 2: exactly one person within the system.
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  Speaker 4: Ready to look it.
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  Speaker 3: Are you going to have a Trump account with a
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  Speaker 3: newly issued child?
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  Speaker 1: I mean it's for children kids born between twenty twenty
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  Speaker 1: five and twenty twenty eight, So I'm in the sweet
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  Speaker 1: spot here.
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  Speaker 4: She gets a thousand bucks. Yeah, it's like an extra
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  Speaker 4: thousand I would never say.
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  Speaker 3: No, but critically here grandparents could put money in.
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  Speaker 1: Yes, but only up to five grand a year a year, yes, but.
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  Speaker 2: They can do that till the kids eighteen or twenty
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  Speaker 2: or that. This is a building account. It goes into ETFs.
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  Speaker 2: How big a deal is this.
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  Speaker 3: For Eric belchuness world.
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  Speaker 1: I mean he's just been on fire this week, as
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  Speaker 1: Scarlett who knows well since we co.
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  Speaker 5: Anchor ETFIQ with him.
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  Speaker 1: I mean, it is really interesting that the five initial
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  Speaker 1: accounts that were selected were ETFs. There's one default account
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  Speaker 1: to start.
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  Speaker 5: That's the ticker is spy M. It's a State Street
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  Speaker 5: S and P five hundred ETF.
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  Speaker 1: The fee, the annual fee on that account is just
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  Speaker 1: two basis points. That's point two percent, and that's pretty
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  Speaker 1: much I think why it was chosen.
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  Speaker 5: It's super cheap, so baby Greyfeld is going to win.
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  Speaker 2: There you go the ETF market is extraordinary. I mean,
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  Speaker 2: it just builds out and builds out. What I think
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  Speaker 2: is cool is if the Trump account extends out into
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  Speaker 2: the like the Gura offspring, so it goes from one
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  Speaker 2: to two years, you know, they build it out of that.
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  Speaker 6: Well, the industry loves what's happening, and we really see
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  Speaker 6: that with State Street and all the other etf issuers
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  Speaker 6: as well. Of course, when we talk about ETFs, I
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  Speaker 6: want to bring in man deep here, especially with the
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  Speaker 6: start of sk Heinex trading, there are a lot of
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  Speaker 6: ETFs that are really tied to sk Heinex's performance and
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  Speaker 6: memory chip makers as a whole, and this just kind
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  Speaker 6: of supercharges that obsession.
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  Speaker 4: It does.
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  Speaker 7: And look, we heard quite a few new terms today
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  Speaker 7: from the chairman's and of view memory as a service.
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  Speaker 3: That really caught my attention.
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  Speaker 7: You know, we talk about memory in the context of
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  Speaker 7: a commodity, and you know, with booms and bus he
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  Speaker 7: sounded a lot more confident in terms of one he
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  Speaker 7: has visibility to this cycle in terms of extending through
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  Speaker 7: the end of the decade, and also new things like
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  Speaker 7: memory as a service where they're thinking about new business
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  Speaker 7: models in terms of kind of just being the memory
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  Speaker 7: provider and kind of doing sometime.
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  Speaker 3: We're just going out to a new high keep talking, man.
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  Speaker 6: Yes, wait, South Korea is kind of the at the
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  Speaker 6: center of the AI trade right now, right, I mean
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  Speaker 6: they are really where the market is booming. The South
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  Speaker 6: Queen stock market that costs ME is the world's best
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  Speaker 6: performing index. There's a lot of retail participation in that market,
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  Speaker 6: and that's kind of spilling over to the rest of
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  Speaker 6: the world.
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  Speaker 3: It is.
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  Speaker 7: And look, when it comes to HPM, you have to
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  Speaker 7: look at the exposure. So Skehinex has told us they
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  Speaker 7: have fifty seven percent market share, So if that is
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  Speaker 7: the hot part of the AI market, then they have
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  Speaker 7: a much bigger market share than a Micron, which is
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  Speaker 7: being on a tier of you.
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  Speaker 3: Yeah, this is way too technically. He lost me with
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  Speaker 3: the HGM.
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  Speaker 5: Yeah, all that the two of you.
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  Speaker 3: I want to talk about this.
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  Speaker 2: The political shtick of this is we're going to employ America.
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  Speaker 2: Do you believe that the Asian manufacturers could come over
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  Speaker 2: here and get the quality of employment that they have
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  Speaker 2: in Asia?
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  Speaker 7: I think again, based on the chairman's comments, it sounded
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  Speaker 7: like it's going to take a couple of years just
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  Speaker 7: to set the initial thirty five billion dollar investment kind
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  Speaker 7: of show some reason.
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  Speaker 3: Answer my question.
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  Speaker 2: Do we have the bodies, the intellect, the drive to
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  Speaker 2: be as quality of employees as we see in Asia.
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  Speaker 8: No.
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  Speaker 7: I think we may be better off on the infrastructure side,
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  Speaker 7: but in terms of their talent side, there is more work.
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  Speaker 9: There's a political football, yeah, But I was struck by
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  Speaker 9: how agnostic the chairman seemed in talking about this. He said,
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  Speaker 9: what's the best talent anywhere? And he's focused here on
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  Speaker 9: the US. He seemed gleeful to say there'd been this
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  Speaker 9: thirty five billion doll dollar investment, and so there's the
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  Speaker 9: prospect for much more investment in the US going forward. Here,
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  Speaker 9: we kind of look at that in Jex's position with
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  Speaker 9: what we heard from Howard Lutnik, the Commerce Secretary yesterday
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  Speaker 9: saying he's kind of tightening the screws on the SSK,
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  Speaker 9: Heinez and Samsung as well to do more in the
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  Speaker 9: United States. And to me, yes, there's the kind of
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  Speaker 9: talent and resources side of this.
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  Speaker 4: Tom. The other facet here is will that be effective?
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  Speaker 9: Is he going to be able to is the administration
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  Speaker 9: going to be able to get these companies to do
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  Speaker 9: more in the US by sheer Will.
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  Speaker 6: I think that's a really good point, especially because Mandeep
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  Speaker 6: this listing is to fund the build out of factories
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  Speaker 6: in South Korea. Isn't that going to be a problem
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  Speaker 6: David Gerrow for this administration that they're raising money in
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  Speaker 6: the US to build more factories in Korea.
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  Speaker 4: Yes, and they have this, correct me if I'm wrong.
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  Speaker 9: I think like an eight hundred million dollar commitment to
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  Speaker 9: eight hundred million one commitment to do more work in
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  Speaker 9: South Korea. I think he was saying this would be
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  Speaker 9: kind of complementary to this that he has focused on
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  Speaker 9: the US as well. But yeah, that is part and
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  Speaker 9: parcel of this. How much of this is going to
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  Speaker 9: be raised in the US and stay in the US
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  Speaker 9: versus go back?
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  Speaker 7: When it comes to the factories, you also have to
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  Speaker 7: think about what is leading note versus what is you know,
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  Speaker 7: technology that is more mature. I doubt they are going
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  Speaker 7: to set up their leading note factories, you know, being
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  Speaker 7: the first one here in the US to do that.
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  Speaker 7: It will be more advanced note like the mature notes.
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  Speaker 2: What are you looking at Bloomberg this weekend? What are
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  Speaker 2: you looking at in Washington? Where sides everyone worried about
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  Speaker 2: the Senator.
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  Speaker 9: Yes, yes, Mitch mcconne's still ailing. We're looking at obviously
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  Speaker 9: the conflict in the Middle East. We had the presence
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  Speaker 9: today the ceasefire is off formerly but the talks continue.
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  Speaker 4: What can be accomplished here.
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  Speaker 9: We have Michael McCall, the Chairman emeritus the House for
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  Speaker 9: an Affairs Committee joining us, and the Chief of Naval
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  Speaker 9: Operations as well, so get a sentence of how things.
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  Speaker 3: Are in the control room.
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  Speaker 2: They have Greyfeld's people saying we haven't spent enough time
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  Speaker 2: with Katie, you know save me.
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  Speaker 6: Yes, absolutely, and Katie, I know that you are on
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  Speaker 6: top of all the ETFs. There's going to be leverage
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  Speaker 6: ets tied to sk Heinex. That is going to be
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  Speaker 6: a big deal next week.
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  Speaker 5: Oh big time.
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  Speaker 1: I mean you think about all the different issuers trying
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  Speaker 1: to get out their products out there, not that sk
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  Speaker 1: Heinex the way it trades needs leverage on top of it.
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  Speaker 1: But certainly that is the gold rush going on in
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  Speaker 1: the ETF industry.
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  Speaker 5: I will point.
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  Speaker 1: Out, you know, you think about us appetite for exposure
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  Speaker 1: to sk Heinex. We have, you know, one facet to
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  Speaker 1: look at that. It's an ETF called d RAM, which
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  Speaker 1: we talk about a lot. It launched three months ago.
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  Speaker 1: It's already more than twenty billion dollars in assets and
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  Speaker 1: shine with Eric Alchunis of course before the show.
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  Speaker 5: Right it trades about as much as Apple.
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  Speaker 1: So this is an extremely popular trade right now, and
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  Speaker 1: you're seeing that in the retail recailvessors.
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  Speaker 2: Yeah, I don't have time to talk to you. I
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  Speaker 2: have time to talk to you. I have SpaceX below
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  Speaker 2: one forty nine. Is it going to one thirty five?
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  Speaker 2: I mean, is it like where we're one ten and
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  Speaker 2: we're enjoying sixty and so we're gonna have SpaceX fai.
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  Speaker 2: I'm not comparing it to skhinex, but this isn't good
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  Speaker 2: right Well.
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  Speaker 1: I would say that SpaceX I've been thinking about it
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  Speaker 1: as a really interesting Petri dish because you have all
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  Speaker 1: the index inclusions.
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  Speaker 5: This is the most the.
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  Speaker 1: General public has ever cared about index methodology. But you
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  Speaker 1: also have the lockup Expert is starting off this month,
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  Speaker 1: so it's going to be you know, some really interesting
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  Speaker 1: forces all coming together on spacets. I'm not sure if
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  Speaker 1: you can say right now it's trading on fundamentals.
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  Speaker 9: Yes, the Tom King triple leveraged all cash fund made
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  Speaker 9: a transition to tea.
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  Speaker 2: But we did a fifteen percent gross after three percent
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  Speaker 2: pre three hundred basis points.
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  Speaker 3: We came into the twelve percent in that clean.
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  Speaker 4: Lass quarter put in the Trump accadey it was great.
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  Speaker 3: Maybe actually we could do that.
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  Speaker 2: So the three of you, thank you, but particularly to
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  Speaker 2: math Saying and honorag Rana and all of our tech people.
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  Speaker 3: Your leadership on this has just been absolutely.
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  Speaker 2: A superb Randy Krasner is a math prodigy out of
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  Speaker 2: Brown University. He owns a high ground in financial economics
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  Speaker 2: in America so good. At a very young age, he
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  Speaker 2: became a governor of the Fund Reserve System foundational to
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  Speaker 2: the University of Chicago Boost School and particularly their expansion
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  Speaker 2: over to your Europe orre thrilled he could join us today.
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  Speaker 3: Randy, thank you.
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  Speaker 2: So much for being with us. I'm not going to
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  Speaker 2: mince it. It's about inflation. Bring up the chart right now, Randy.
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  Speaker 2: I'm glad you're remote because you'd be in.
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  Speaker 3: Tears if you saw this chart. It's the inflation we're
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  Speaker 3: living and the idea here, Thank you.
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  Speaker 2: John Taylor Stanford is we need two percent inflation. Okay, Well,
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  Speaker 2: there's two percent inflation. It's the green line, and the
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  Speaker 2: answer is the presidential moving average, four quarter moving average
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  Speaker 2: is elevated COVID and all the rest.
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  Speaker 3: Randy, do you, on a first order basis.
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  Speaker 2: Have a real conviction we can get back anywhere near
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  Speaker 2: two percent inflation?
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  Speaker 1: Oh?
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  Speaker 8: I think we can. It's not going to happen in
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  Speaker 8: the next quarter. It's not going to happen by the
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  Speaker 8: end of the year. But I do think that within
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  Speaker 8: let's see a year to eighteen months, we can be
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  Speaker 8: pretty close.
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  Speaker 6: Okay, So when we talk about two percent inflation, the
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  Speaker 6: FED focus is on core PC, which backs out food
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  Speaker 6: and gas, not the headline inflation number. The new fetcher,
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  Speaker 6: Kevin Walsh, prefers Dallas Fed trimmed mean, which moves that
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  Speaker 6: takes out the outliers, so kind of like a judge
• 10:04
  Speaker 6: and figure skating you throughout the top score and the
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  Speaker 6: bottom score. So my question is, Randy, for consumers, this
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  Speaker 6: can feel like a very narrow way of measuring inflation.
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  Speaker 6: You remove food, you remove gas, you remove the outliers
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  Speaker 6: at both ends. It leaves you something in the middle
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  Speaker 6: that doesn't reflect anyone's lived experience. And then making policy
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  Speaker 6: based on it. Is this something that can or should
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  Speaker 6: be fixed.
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  Speaker 8: So I always joked that it's only an economists who
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  Speaker 8: could think about the consumer basket as excluding anything about
• 10:33
  Speaker 8: eating so you starve stiff, and anything about driving or
• 10:37
  Speaker 8: keeping your house warm or cool. So the reason for
• 10:42
  Speaker 8: doing that is not because of concerned about people, but
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  Speaker 8: it's really looking for what is going to be the
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  Speaker 8: best metric for seeing where inflation is going, rather than
• 10:53
  Speaker 8: looking at inflation in the rear view mirror, because we're
• 10:56
  Speaker 8: of course always getting data from the past, not from
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  Speaker 8: you know, we want to figure out what.
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  Speaker 10: Start in the future.
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  Speaker 8: So the idea behind it is the starting in the
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  Speaker 8: nineteen seventies was taking up high volatility sectors things like
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  Speaker 8: food and energy, because that's a lot of noise. It's
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  Speaker 8: not necessarily telling you where things are are going. Trim
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  Speaker 8: mean in some sense, it's a version of that, because
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  Speaker 8: if you think about what taking out food and energy is,
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  Speaker 8: you're just saying, well, we always want to trim out
• 11:23
  Speaker 8: the volatile food and energy sectors because we think of
• 11:26
  Speaker 8: those as outliers. The Dallas FED approach is saying, well,
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  Speaker 8: we don't know from month to month what the extreme
• 11:33
  Speaker 8: is going to be, So let's trim those out because
• 11:36
  Speaker 8: if something is moving a lot one month might be
• 11:39
  Speaker 8: coming back the next month.
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  Speaker 2: Randy, I want to cut to the chase round university
• 11:43
  Speaker 2: tuition since COVID has gone from seventy four thousand their
• 11:48
  Speaker 2: top and ticking it this year at ninety seven thousand.
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  Speaker 2: That's what our viewers and personal finance retirement, that's what
• 11:56
  Speaker 2: they feel. And the worry here is a sustained inflation
• 12:00
  Speaker 2: where we don't get legitimate real wage growth. Is that
• 12:04
  Speaker 2: a risk for our savers, our personal finance in America,
• 12:08
  Speaker 2: that we don't get legitimate wage growth.
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  Speaker 8: That's a real risk, And that's really the key thing,
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  Speaker 8: and you really put your finger on it, because the
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  Speaker 8: key is how much are people making relative to how
• 12:20
  Speaker 8: much things would cost. So if your wages are going
• 12:23
  Speaker 8: up at ten percent and inflation is five percent, you're
• 12:26
  Speaker 8: feeling pretty good because even though prices are higher, you
• 12:29
  Speaker 8: still have really strong purchasing power. But if it's the opposite,
• 12:33
  Speaker 8: the price has gone up ten percent and your wage's
• 12:36
  Speaker 8: only gone five percent, you're pretty upset because you can
• 12:38
  Speaker 8: barely put food on the table. So that's really the
• 12:41
  Speaker 8: relevant thing. And That's what Kevin is focusing on, because
• 12:44
  Speaker 8: he's saying, well, I'm very optimistic about what AI is
• 12:47
  Speaker 8: going to do increasing productivity and increasing real wages.
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  Speaker 10: Of course that's a bet, but you know, that's what
• 12:53
  Speaker 10: he's focusing on.
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  Speaker 3: No, we don't have time for this on Bloomberg Money.
• 12:56
  Speaker 2: But I'm just going to say I was blown away
• 12:57
  Speaker 2: by everything about the worst task forces except Krasner's on there.
• 13:02
  Speaker 3: Why is Randy Krasner not on the task force?
• 13:06
  Speaker 2: You know this, Let's go to right now, Adam Posen
• 13:09
  Speaker 2: and Peter Orzagan maybe my essay of the year, the
• 13:12
  Speaker 2: risk of higher US inflation or Zagon Posen push against
• 13:17
  Speaker 2: hot Siistict Golden Sachs a tighter labor market reflecting the
• 13:20
  Speaker 2: effects of the shifted immigration, monetary policy, looser than commonly appreciated,
• 13:27
  Speaker 2: and inflationary expectations inflation, they would suggest Scarlett is drifting higher.
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  Speaker 5: Right.
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  Speaker 6: I mean, what it comes down to, Randy, is that
• 13:35
  Speaker 6: a meaningful segment of the population, the hollowed out middle
• 13:37
  Speaker 6: class young people in particular, they've lost faith in the
• 13:40
  Speaker 6: ability of the FED to do anything on reducing inflation.
• 13:43
  Speaker 6: They've gravitated to things like crypto or prediction markets as
• 13:47
  Speaker 6: a solution. From their point of view, the system is
• 13:50
  Speaker 6: broken and they might as well bet on low probability,
• 13:53
  Speaker 6: high impact outcomes. How problematic is this behavior for the
• 13:58
  Speaker 6: stability of the economy, disability of financial system?
• 14:01
  Speaker 8: And you also see with memestocks too, it's another example
• 14:04
  Speaker 8: of people taking the high risk bets and maybe it'll
• 14:07
  Speaker 8: pay off, but it's awfully risky. So I think there
• 14:10
  Speaker 8: is a breakdown of trust, and I think that is
• 14:12
  Speaker 8: a real problem. We saw that because inflation went up
• 14:14
  Speaker 8: so high when the FED was saying transitory transtory transittory as.
• 14:18
  Speaker 10: Ination kept spiraling higher and higher. And Kevin Marsh has
• 14:22
  Speaker 10: made it really.
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  Speaker 8: Clear when asked about these sorts of things that I'm
• 14:26
  Speaker 8: not getting into that game of saying what's transitory or not.
• 14:29
  Speaker 8: What I'm going to do is try to get big
• 14:30
  Speaker 8: picture trends in the economy where broadly is inflation going,
• 14:34
  Speaker 8: what are the key drivers behind inflation, and what is
• 14:38
  Speaker 8: the role of productivity growth. So that's what he's going
• 14:41
  Speaker 8: to try to do to get restore faith in the
• 14:44
  Speaker 8: FED rather than those short term predictions that although the
• 14:47
  Speaker 8: FED is probably the.
• 14:47
  Speaker 10: Best predictor of anybody, They're still not very good.
• 14:50
  Speaker 2: Grandy your advice here, I think of Booth School in Chicago,
• 14:54
  Speaker 2: Steve Lovett, freakonomics, everything that Becker did, I mean the
• 14:59
  Speaker 2: heritage he of our system economics. Do you have a
• 15:03
  Speaker 2: confidence that we will solve our retirement system the next
• 15:08
  Speaker 2: go around of social security reform and indeed retirement reform?
• 15:14
  Speaker 10: I think it'll never be fully solved.
• 15:16
  Speaker 8: You know, we had we've had patchworks that come every
• 15:19
  Speaker 8: decade or so when we see that the Soial Security
• 15:22
  Speaker 8: Trust Fund is going to run out of resources, and
• 15:25
  Speaker 8: the most recent reports is it's common pretty soon twenty thirty,
• 15:29
  Speaker 8: twenty thirty two. And so it's really it's it's not
• 15:34
  Speaker 8: purely economics, it's really political economy.
• 15:37
  Speaker 10: What will the politicians be willing to do?
• 15:40
  Speaker 8: So one of the obvious fixes is to increase retirement age.
• 15:44
  Speaker 8: When this was first implemented by Roosevelt, people's expected lifetime.
• 15:49
  Speaker 10: Was much much shorter than it is today.
• 15:51
  Speaker 8: Yes, and we've moved things up a little bit, but
• 15:54
  Speaker 8: not nearly as much to reflect much better health outcomes
• 15:57
  Speaker 8: that people have totally and so their whole right of things,
• 16:00
  Speaker 8: it could be done to address that.
• 16:02
  Speaker 3: Randy I gotta go. We got to get you in
• 16:04
  Speaker 3: New York.
• 16:04
  Speaker 2: Next time for Bloomberg Money, Governor Krasner, Professor Krausner. Of course,
• 16:08
  Speaker 2: always forever with the University of Chicago.
• 16:11
  Speaker 3: We're going to.
• 16:12
  Speaker 2: Migrate here to the equity Marcus's continued bull market coming up,
• 16:16
  Speaker 2: Cameron Dawson, a new edge ausre What am I going
• 16:18
  Speaker 2: to focus on? Scarlett's got a list of questions. I'm
• 16:21
  Speaker 2: going to focus on my need to rebalance. I'm unbalanced.
• 16:26
  Speaker 2: I'm not to rebalance this, Cameron. Next, it's Bloomberg Money.
• 16:29
  Speaker 3: Stay with us.
• 16:37
  Speaker 2: On a Friday, Bloomberg Good Money. Tom Keene with Scarlett
• 16:40
  Speaker 2: fu Scarlett Well.
• 16:42
  Speaker 6: Sk Heinex the Queen Memory ship maker searching above its
• 16:45
  Speaker 6: offer priced.
• 16:45
  Speaker 5: It's the US debut.
• 16:46
  Speaker 6: So let's go out to b Tech anchor live at
• 16:49
  Speaker 6: the NASAC and ed you got to speak with the
• 16:51
  Speaker 6: chairman of s k Heinicks. What did you learn from
• 16:53
  Speaker 6: him that's relevant to retail investors looking to thank big
• 16:57
  Speaker 6: on ske Heynicks.
• 16:58
  Speaker 11: Three things, big, big investments in the USA are coming.
• 17:02
  Speaker 11: They're committed to thirty five billion, and that number is
• 17:04
  Speaker 11: going to get much, much, much much bigger. This was
• 17:07
  Speaker 11: an ADR listing. That wasn't just about the proceeds. He's
• 17:10
  Speaker 11: coming for the talent chairman Cha. He wants to see
• 17:13
  Speaker 11: American engineers powering their position in the merry market, which
• 17:16
  Speaker 11: is number three. They got fifty seven percent, seven percent
• 17:20
  Speaker 11: market share in high bandwidth memory. That is the chip.
• 17:23
  Speaker 11: The thing that everyone cares about in this AI story
• 17:26
  Speaker 11: right now. The main thing is that the US retail
• 17:28
  Speaker 11: investor is sophisticated and educated about what goes into a
• 17:33
  Speaker 11: server design in the data center. They know how critical
• 17:35
  Speaker 11: that HBM is and that's why sk came knocking at
• 17:38
  Speaker 11: the NASDAK.
• 17:39
  Speaker 6: Fantastic, thank you go for that round of s Khinex
• 17:42
  Speaker 6: of course trading in his market debut here in the
• 17:44
  Speaker 6: US at Ludlow b Tech anchor joining us from the NASAC.
• 17:48
  Speaker 6: It is time for banking on books and my book
• 17:51
  Speaker 6: is Strangers, a Memoir of marriage by Belle Burden, first
• 17:55
  Speaker 6: publisher Generary now and it's twelfth printing.
• 17:57
  Speaker 5: This is a financial course rate.
• 17:59
  Speaker 6: Yes, because Bell Burdon's husband walked out on her and
• 18:02
  Speaker 6: the kids at the start of COVID. She had quit
• 18:04
  Speaker 6: her job to raise the kids, her husband worked and
• 18:06
  Speaker 6: manage of family finances. That was not a good setup
• 18:09
  Speaker 6: for that situation. And there's also this fascinating overlap with
• 18:12
  Speaker 6: privilege and status because she's in New York society. There's
• 18:15
  Speaker 6: trust funds involved. Buthering glare's from Mary Tumban.
• 18:19
  Speaker 2: Did Wich stillman define the Upper east Side Lottie world
• 18:24
  Speaker 2: and then she just absolutely nailed it.
• 18:27
  Speaker 10: Well.
• 18:27
  Speaker 6: This was a fantastic read, and it's so interesting because
• 18:30
  Speaker 6: it's sparked a lot of conversation among people, certainly in
• 18:34
  Speaker 6: New York, you know, because she's a New York society woman.
• 18:36
  Speaker 6: And that gets to what we've done here at Bloomberg Money.
• 18:39
  Speaker 6: The Bloomberg Money team wrote about this book and how
• 18:41
  Speaker 6: it's sparking all these discussions everywhere about marital finance. Nikki
• 18:46
  Speaker 6: Waller leads that coverage for us here at Bloomberg and
• 18:48
  Speaker 6: she joins us now and Nikki, this is something where
• 18:51
  Speaker 6: women are in book clubs, are talking about it, and
• 18:54
  Speaker 6: they are taking more control of their finances and taking
• 18:57
  Speaker 6: a deep dive into financial planning to understand their household finances.
• 19:00
  Speaker 12: It's just as you said, people are reading this book
• 19:03
  Speaker 12: as a cautionary tale and a horror story, and they
• 19:06
  Speaker 12: are phoning their financial advisors and saying I need to
• 19:09
  Speaker 12: crack open the books on my finances with my husband
• 19:12
  Speaker 12: or partner.
• 19:13
  Speaker 6: And this is the case where women often out earn
• 19:15
  Speaker 6: their husbands or they're at parody, except when they take
• 19:18
  Speaker 6: time off to have kids, and they kind of lose
• 19:19
  Speaker 6: some ground here. So there's this extra urgency and this
• 19:24
  Speaker 6: once there was a stigma about talking about all of
• 19:27
  Speaker 6: this before getting married, but it's not becoming the case anymore.
• 19:30
  Speaker 5: It's more practical now, it is.
• 19:32
  Speaker 12: Less of a stigma. But even so, the numbers show
• 19:35
  Speaker 12: that a lot of women, close to half are entrusting
• 19:39
  Speaker 12: their husbands with all of the financial decision making.
• 19:41
  Speaker 2: Boy read we all have our horror stories and our
• 19:45
  Speaker 2: families of this. I have multiple horror stories of I'm
• 19:48
  Speaker 2: the man, I'm smarter than you are, leaving alone. Just
• 19:51
  Speaker 2: trust me. I'll give you the passwords when I die.
• 19:54
  Speaker 2: That's the status quo.
• 19:55
  Speaker 3: Still.
• 19:56
  Speaker 12: Yeah, and we have really smart people. I mean, take
• 19:58
  Speaker 12: Bell Burden. She has an ivy lea educated corporate lawyer,
• 20:01
  Speaker 12: and she still hated this over And I think a
• 20:04
  Speaker 12: lot of this talks about comes back to the gendered
• 20:06
  Speaker 12: ways we think about money. That this is men's work,
• 20:09
  Speaker 12: and this is women's work, and it's kind of cool
• 20:11
  Speaker 12: to hear from these women who are cracking the books,
• 20:14
  Speaker 12: and even their husbands are saying, well, finally, there is.
• 20:17
  Speaker 6: A broader trend and this is something you guys wrote
• 20:19
  Speaker 6: about too, of young couples signing pre nups, This idea
• 20:22
  Speaker 6: that it's not just men or wealthy the wealthy partner
• 20:26
  Speaker 6: in the group. Everyone is kind of inquiring about this
• 20:30
  Speaker 6: and looking into this to protect whatever assets or liabilities
• 20:33
  Speaker 6: that they come into the marriage with.
• 20:34
  Speaker 12: And there are so many reasons for this. People are
• 20:36
  Speaker 12: marrying later in life. They we talk about this all
• 20:39
  Speaker 12: the time. They have more investments, more stockholdings, so it's
• 20:42
  Speaker 12: not like getting married at age twenty or twenty one,
• 20:45
  Speaker 12: and both both partners have very little. People are coming
• 20:49
  Speaker 12: into marriage with their own kind of book of business.
• 20:52
  Speaker 5: Frozen eggs also.
• 20:53
  Speaker 6: One of the assets that people you know have to
• 20:55
  Speaker 6: kind of delineate student debt.
• 20:57
  Speaker 5: In terms of liabilities, these are all things to consider. Pets,
• 21:00
  Speaker 5: social media followers.
• 21:02
  Speaker 6: Pets and social media followers is part of your prenup.
• 21:04
  Speaker 6: I bet that came up in the tailor swift Travis
• 21:07
  Speaker 6: Kelsey prenuptial agreement.
• 21:09
  Speaker 3: Did you like the wedding? I mean, did you get
• 21:12
  Speaker 3: the pictures?
• 21:12
  Speaker 5: I've only seen other people. I thought you went out.
• 21:16
  Speaker 5: There was a limited invite list.
• 21:17
  Speaker 3: There's a limited list. We'll have to see.
• 21:19
  Speaker 2: We were advantaged because cam Dawson was with us day
• 21:22
  Speaker 2: of the wedding, and she knows every Taylor swift lyric
• 21:25
  Speaker 2: there is to know it, does she, which is almost
• 21:27
  Speaker 2: as good as their equity knowledge here Bloomberg Money, we'd
• 21:30
  Speaker 2: like to talk to people with deep knowledge, what is
• 21:33
  Speaker 2: known as domain knowledge. Cameron Dawson owns absolute high ground
• 21:37
  Speaker 2: on the equity markets.
• 21:38
  Speaker 3: At the New Edge.
• 21:40
  Speaker 2: Well, I'm thrilled to have a year for a two
• 21:42
  Speaker 2: hour conversation. We're going to squeeze in and next to nothing.
• 21:45
  Speaker 2: Ow bull market? Is this bull market?
• 21:48
  Speaker 3: Oh?
• 21:48
  Speaker 13: It is certainly a bull market, not just within prices,
• 21:52
  Speaker 13: but certainly within the earnings. And that's why this market
• 21:54
  Speaker 13: has been so powerful and resilient to everything you've thrown
• 21:58
  Speaker 13: at it this year is because, unlike prior times when
• 22:02
  Speaker 13: you've had things like energy shocks and geopolitical crises and
• 22:05
  Speaker 13: you would see earning sestiments get cut, you've seen earning
• 22:08
  Speaker 13: sestments go up twenty percent on a twelve month four
• 22:11
  Speaker 13: basis this year, which is why this market has been
• 22:14
  Speaker 13: able to shake off any kind of negative news.
• 22:16
  Speaker 3: On a personal finance basis.
• 22:18
  Speaker 2: Are we enjoying it or are we totally on a
• 22:21
  Speaker 2: whack where our allocation should be.
• 22:23
  Speaker 13: Well, if you look at the aggregate allocation metrics out
• 22:26
  Speaker 13: of something like in American Association of Individual Investors, what
• 22:30
  Speaker 13: you can see is equity allocations are at all time
• 22:33
  Speaker 13: highs at seventy one percent allocations. So this gets you
• 22:36
  Speaker 13: back to prior highs that we saw in times like
• 22:38
  Speaker 13: twenty twenty one or twenty eighteen. So certainly this looks
• 22:41
  Speaker 13: like an individual or a household area that is all
• 22:45
  Speaker 13: in on equities. You see a very different story when
• 22:48
  Speaker 13: you look at institutions, where institutions are the ones who've
• 22:51
  Speaker 13: been sitting on the sideline. Something like Deutsche Bank's consolidated
• 22:54
  Speaker 13: equity positioning is just in the forty first percentiles. So
• 22:57
  Speaker 13: it's a tale of very different cities. Households are all in,
• 23:01
  Speaker 13: institutions are on the sidelines.
• 23:03
  Speaker 6: Interesting dichotomy there. You look at the SMP five hundred,
• 23:06
  Speaker 6: we've had three straight years of double digit gains. The
• 23:08
  Speaker 6: SMP is up about ten and a half percent. Now,
• 23:11
  Speaker 6: when we're in this long running bull market like we
• 23:13
  Speaker 6: have right now, do individual investors tend to turn more conservative,
• 23:17
  Speaker 6: stay with what's worked, you know, buy and hold, or
• 23:20
  Speaker 6: are they more willing to go out on a limb
• 23:22
  Speaker 6: and consider, you know, moving some assets into uncorrelated securities
• 23:28
  Speaker 6: or products, you know, maybe venture into private assets.
• 23:30
  Speaker 13: Well, I think there's two different questions there, because the
• 23:34
  Speaker 13: first one is do people start chasing the hot dot
• 23:36
  Speaker 13: when it comes to market leadership. And one of the
• 23:39
  Speaker 13: reasons why the quality anomaly exists, why if you look
• 23:42
  Speaker 13: over the long run, the quality factor has actually added
• 23:46
  Speaker 13: a lot to portfolios from a return basis and not
• 23:49
  Speaker 13: added to risk, is because people do tend to chase
• 23:52
  Speaker 13: the hot dots and markets like this. They want the
• 23:54
  Speaker 13: non profitable tech company, they want this shiny new object.
• 23:57
  Speaker 13: But what you find is that just as fast as
• 24:00
  Speaker 13: those kind of assets go up, you have the same
• 24:02
  Speaker 13: kind of problem where they can have very deep corrections.
• 24:05
  Speaker 5: On the other.
• 24:06
  Speaker 13: Side, when we think about allocating to private markets, that's
• 24:09
  Speaker 13: where you're looking and saying, look, we've had fifteen years
• 24:12
  Speaker 13: of effectively double the average returns for public markets. So
• 24:16
  Speaker 13: we need to diversify the return streams, diversify the income streams,
• 24:19
  Speaker 13: and you need to look to private markets in order
• 24:21
  Speaker 13: to find those different sources of ways to get to
• 24:24
  Speaker 13: overall portfolio diversification.
• 24:26
  Speaker 2: Let's go, comingo Matthey on a Friday. Come, let's go Mathey.
• 24:29
  Speaker 2: Here it is right now. This is one of the
• 24:30
  Speaker 2: most famous money must reads out of the Wall Street
• 24:34
  Speaker 2: Journal years and years ago, two thousand.
• 24:37
  Speaker 5: And three, back in the archive.
• 24:38
  Speaker 3: Mark Yeah.
• 24:40
  Speaker 2: As an extreme example, consider the equity allocation of seventeen
• 24:44
  Speaker 2: ninety three. Today you would be ninety nine percent equities
• 24:47
  Speaker 2: and all stock portfolio over time, much riskier than a
• 24:51
  Speaker 2: classic sixty forty cam Dawson explain the best approach on
• 24:55
  Speaker 2: the X access to proper retirement allocation.
• 25:00
  Speaker 13: Well, I think that there has to be a very
• 25:03
  Speaker 13: holistic approach to the entirety of somebody's not.
• 25:05
  Speaker 5: Formulate life, not formulaic.
• 25:07
  Speaker 13: And I think that this is the big issue within
• 25:10
  Speaker 13: wealth management, is that most people try to make everything.
• 25:12
  Speaker 5: Institutional and homogeneous. They try to treat everybody the same.
• 25:16
  Speaker 13: But just as we talked about with things like financial
• 25:18
  Speaker 13: planning and well strategy and something like prenups, those considerations
• 25:22
  Speaker 13: have to be reflected in the portfolio. Those liquidity needs
• 25:25
  Speaker 13: have to be reflected in the portfolio. So having the
• 25:28
  Speaker 13: right allocation is not just going on the efficient frontier.
• 25:31
  Speaker 13: It's actually doing the holistic work to understand somebody's complete
• 25:34
  Speaker 13: balance sheet in order to get the mix of assets
• 25:37
  Speaker 13: that allows them to withstand volatility.
• 25:39
  Speaker 2: Nicky, help me here with all your experience on this,
• 25:43
  Speaker 2: from John Templeton to William Bernstein to all of rebalancing
• 25:47
  Speaker 2: in the formulate approach. It's the cottage industry of reallocation
• 25:52
  Speaker 2: along the way rebalancing.
• 25:53
  Speaker 3: Isn't it.
• 25:54
  Speaker 12: Yeah, No one makes money if you just leave everything
• 25:56
  Speaker 12: alone said.
• 25:58
  Speaker 5: That's very well said.
• 26:00
  Speaker 6: The part out cuts to these the pipart out.
• 26:03
  Speaker 3: That's an interest thing, right.
• 26:05
  Speaker 12: I mean, one of the most interesting stories we're seeing
• 26:07
  Speaker 12: this morning is that JP Morgan built an AI that
• 26:11
  Speaker 12: can outdo the sixty forty portfolio.
• 26:14
  Speaker 5: These are really good points.
• 26:15
  Speaker 2: And I guess that way Gabby Santos was on the
• 26:18
  Speaker 2: other day, is she out of a job? Is Gabby
• 26:20
  Speaker 2: Santos out of a job with AI?
• 26:22
  Speaker 12: I think Gabby Santos will always have a job. But
• 26:25
  Speaker 12: the ways that people are using AI to trade and
• 26:29
  Speaker 12: beat the formulas we've always had.
• 26:31
  Speaker 5: This is something to watch.
• 26:33
  Speaker 6: I want to go back to that point, Cam where
• 26:34
  Speaker 6: you talked about tailored portfolios, tailored allocations, and tailored approaches
• 26:40
  Speaker 6: to managing your portfolio. Does that mean things like model
• 26:42
  Speaker 6: portfolios which are kind of cookie cutter don't make sense
• 26:45
  Speaker 6: for wealth investors?
• 26:47
  Speaker 13: I think that as somebody's wealth grows, and as they
• 26:50
  Speaker 13: get even more complicated, typically we do see complications or
• 26:55
  Speaker 13: I mean they certainly expand as the amount of assets
• 26:58
  Speaker 13: do grow that we find that we have to tailor
• 27:00
  Speaker 13: different portions of the portfolio to have the right kind
• 27:04
  Speaker 13: of allocation. Because if you have high liquidity means having
• 27:07
  Speaker 13: something that's invested in completely private markets means absolutely no sense.
• 27:12
  Speaker 13: So instead of treating an allocation like going to a
• 27:14
  Speaker 13: big golden corral and putting everything off the menu, you
• 27:18
  Speaker 13: really have to choose the things that are having the
• 27:20
  Speaker 13: right functions for what you need.
• 27:21
  Speaker 2: How much of our certitude about this what Nikki Waller
• 27:24
  Speaker 2: deals with every single day.
• 27:26
  Speaker 3: The myth that we have.
• 27:28
  Speaker 2: The foundations was built on the Great moderation where it
• 27:32
  Speaker 2: was just price up, yield down forever, and then in
• 27:35
  Speaker 2: twenty twenty two, we hit a wall.
• 27:37
  Speaker 14: Well, and I think that all of these acid allocations,
• 27:40
  Speaker 14: these mean variance optimizations are all built on one very
• 27:45
  Speaker 14: problematic assumption, which is that you'll have standard normal outcomes
• 27:49
  Speaker 14: that you will have you connect to outcomes.
• 27:51
  Speaker 2: Could you see did you cheer up over that standard
• 27:54
  Speaker 2: normal outcomes?
• 27:57
  Speaker 3: We're going to go Gaussian in a moment, finish up
• 27:59
  Speaker 3: and save the interview.
• 28:00
  Speaker 6: So I guess what it comes down to is any portfolio,
• 28:03
  Speaker 6: especially one tailored for an individual, needs to account for
• 28:05
  Speaker 6: emergency liquidity. Yes, where does that come from?
• 28:08
  Speaker 13: Well, I think that it's building out a certain degree
• 28:11
  Speaker 13: of a cash side of portfolios to meet the liquidity
• 28:14
  Speaker 13: needs over a shorter period of time, having an income
• 28:17
  Speaker 13: generation part of the portfolio that has income sources from
• 28:20
  Speaker 13: different sources. So this is not just fixed income bonds
• 28:25
  Speaker 13: generating income. It's looking at something like potentially private credit
• 28:28
  Speaker 13: if you can absorb the ill liquidity there in certain
• 28:31
  Speaker 13: areas to do it carefully, GP stakes and so you
• 28:33
  Speaker 13: have to think about diversification not just within the overall
• 28:36
  Speaker 13: asset class, but what you're trying to achieve by each
• 28:38
  Speaker 13: asset class.
• 28:40
  Speaker 2: Was becoming a ballerina years ago. Seriously, you like really
• 28:43
  Speaker 2: good at it?
• 28:44
  Speaker 3: Is it expensive?
• 28:45
  Speaker 14: Oh?
• 28:45
  Speaker 5: Extraordinarily?
• 28:46
  Speaker 3: Yeah, it was like stupid expensive.
• 28:48
  Speaker 13: I mean my parents told me that they spent all
• 28:50
  Speaker 13: my college money on doing that, so to figure out
• 28:52
  Speaker 13: something else for college.
• 28:53
  Speaker 2: That's what we're going to cover next. Thank you, Kim Dawson,
• 28:55
  Speaker 2: Thank you so much for being with us fabuous. I'm
• 28:57
  Speaker 2: going to feature my Twitter feed and LinkedIn and I'm
• 29:00
  Speaker 2: going to be doing this afternoon is off of Ken
• 29:02
  Speaker 2: Dawson's work. It's on rebalancing. Coming up, what are we
• 29:05
  Speaker 2: gonna do on Blueberg running? We're going to talk about
• 29:08
  Speaker 2: youth sports in the expense Soccer, BLA, hockey.
• 29:15
  Speaker 5: Niki Waller, did you play sport in your youth poorly?
• 29:18
  Speaker 5: I played softball? She plays off all your parents went
• 29:20
  Speaker 5: money on it? I'm sure.
• 29:21
  Speaker 2: Yeah, Lisa Mateo's the whole softball thing as.
• 29:24
  Speaker 3: Well as hockey the worst, I think so.
• 29:26
  Speaker 5: Yeah. Well, the travel part is a one.
• 29:27
  Speaker 3: Youth sports stay with US.
• 29:34
  Speaker 6: France winning last night in a World Cup match against Morocco,
• 29:37
  Speaker 6: Spain and Belgium facing off tonight in the quarterfinals.
• 29:40
  Speaker 5: Is this all you guys watch at home? Now?
• 29:41
  Speaker 3: It's it's like ridiculous when it go away.
• 29:43
  Speaker 2: It's changed our lives. It's really enjoyable. I love watching
• 29:47
  Speaker 2: Telemundo to be honest.
• 29:49
  Speaker 6: Oh, yes, because it's it's a whole different it's.
• 29:51
  Speaker 3: A different culture and energy and that it's just fabulous.
• 29:54
  Speaker 5: Were you following to USA is carefully?
• 29:56
  Speaker 8: No?
• 29:56
  Speaker 6: Well, yeah, I mean after last week, you know, it's
• 29:59
  Speaker 6: a kind of a disappointment.
• 30:00
  Speaker 3: Really upset about that many I was not alone on them.
• 30:03
  Speaker 5: Yeah.
• 30:04
  Speaker 6: Well, the US team's loss of Belgium in the World
• 30:05
  Speaker 6: Cup has revived this growing concern among Americans, which is
• 30:08
  Speaker 6: a rising cost of youth sports. According to one estimate
• 30:12
  Speaker 6: from the Aspen Institute, Family spending on youth sports is
• 30:15
  Speaker 6: up forty six percent over the last five years. Our
• 30:18
  Speaker 6: senior reporter Randall Williams, he covers Business of Sports, has
• 30:21
  Speaker 6: been following the story and he joins us Now and Randall.
• 30:24
  Speaker 6: By some estimates, this is a forty billion dollar plus
• 30:27
  Speaker 6: industry that is funded by private equity, and so no
• 30:30
  Speaker 6: surprise that has become hyper competitive and hyper specialized.
• 30:33
  Speaker 11: Yeah.
• 30:34
  Speaker 15: I mean, when private equity gets into something, of course,
• 30:36
  Speaker 15: they want to maximize profit, and that's not always a
• 30:38
  Speaker 15: good thing for youth sports. People think of youth sports
• 30:41
  Speaker 15: as the level before college sports, and college sports of
• 30:44
  Speaker 15: course is welcoming private equity as well, but with NIL
• 30:47
  Speaker 15: with a bunch of different mechanisms, it's sort of the
• 30:50
  Speaker 15: amateur level, and I think youth sports isn't meant to
• 30:52
  Speaker 15: be that, but it's becoming that because you can identify
• 30:55
  Speaker 15: talent earlier on, which therefore could lead to brand collaborations
• 30:58
  Speaker 15: and so many other things. Is a huge industry that
• 31:01
  Speaker 15: we're saying private equity get into, get into, and other
• 31:04
  Speaker 15: investors as well.
• 31:05
  Speaker 6: How has technology accelerated this Because we talk about private
• 31:09
  Speaker 6: equity getting in, we talked about NIL that those are
• 31:11
  Speaker 6: two distinct things, but technology has made it even more
• 31:15
  Speaker 6: hyper intense.
• 31:16
  Speaker 15: Well, it's interesting like when I was growing up, like
• 31:19
  Speaker 15: my dad and my mom would have a film camera
• 31:22
  Speaker 15: that they would shoot it for, but that was just
• 31:23
  Speaker 15: for fun, Like I had my aspirations of going to
• 31:25
  Speaker 15: the NFL ended at fifteen. But now you have people
• 31:28
  Speaker 15: using apps like game Changer, which you can literally just
• 31:31
  Speaker 15: film the entire thing, create a highlight reel for your child,
• 31:34
  Speaker 15: and then email it.
• 31:35
  Speaker 4: To scouts themselves.
• 31:36
  Speaker 15: And of course the supporters behind an app like game
• 31:38
  Speaker 15: Changer are going to pour money into it, say hey,
• 31:41
  Speaker 15: use our app and then you can go and market yourself.
• 31:44
  Speaker 15: And a lot of times, this nil money that athletes
• 31:46
  Speaker 15: are able to sign earlier and earlier can change a
• 31:49
  Speaker 15: family's life, so the parents are pushing it and having
• 31:51
  Speaker 15: to spend more as well.
• 31:52
  Speaker 3: Exactly like you.
• 31:53
  Speaker 2: I remember exactly where I was standing when I realized
• 31:56
  Speaker 2: I would not play for the Montreal Canadians. Only the
• 32:00
  Speaker 2: kids today, I'm sorry, name what's that name? Image likeness?
• 32:04
  Speaker 2: You're playing D three if you're lucky. Are we within
• 32:07
  Speaker 2: all the different sports informing the children of how special
• 32:12
  Speaker 2: those people are playing Major D one and pro?
• 32:15
  Speaker 3: I don't think so, not anymore.
• 32:16
  Speaker 15: And the reason for that is because you know, do
• 32:18
  Speaker 15: you have low level athletes who can make anywhere from
• 32:21
  Speaker 15: fifty to sixty to twenty to thirty to sometimes hundreds
• 32:24
  Speaker 15: of thousand dollars a semester, and so their families are like, listen,
• 32:27
  Speaker 15: you don't have to go to the NFL, the NBA,
• 32:29
  Speaker 15: the MLB, the MLS and so many other leagues anymore.
• 32:32
  Speaker 15: You just have to go and play in college as
• 32:34
  Speaker 15: long as you can, so that you can provide for
• 32:36
  Speaker 15: our family for a four to five year periods and
• 32:38
  Speaker 15: then they go into jobs like us. And so it
• 32:41
  Speaker 15: is a very interesting time in college sports where you
• 32:44
  Speaker 15: have people who want to play for five, six, sometimes
• 32:47
  Speaker 15: seven years in college just so they can make money
• 32:49
  Speaker 15: and name, image and likeness.
• 32:50
  Speaker 3: Seven.
• 32:50
  Speaker 6: I started off by talking about the World Cup. How
• 32:54
  Speaker 6: has the professionalization of youth sports contributed perhaps to the
• 32:58
  Speaker 6: US not being as well prepared for thing like the
• 33:00
  Speaker 6: World Cup, because that's the criticism, right.
• 33:02
  Speaker 15: I think that if you look at Europe, and Europe
• 33:05
  Speaker 15: has these youth camps that you think of Lionel Messi,
• 33:08
  Speaker 15: he was with Barcelona at a very young age and
• 33:10
  Speaker 15: then raised in that system against a lot of top
• 33:13
  Speaker 15: tier competition that doesn't really exist here. Of course we
• 33:16
  Speaker 15: have youth soccer clubs and camps, but it's not to
• 33:19
  Speaker 15: the same level. You've never seen a thirteen or thirteen
• 33:22
  Speaker 15: year old signed to NYCFC. It just doesn't happen the
• 33:25
  Speaker 15: same way. And so because of that, and because of
• 33:27
  Speaker 15: the rise and costs. You think of the travel, you
• 33:29
  Speaker 15: think of the cleats, you think of lodging and tournaments
• 33:32
  Speaker 15: and all of these different fees. You have parents who
• 33:34
  Speaker 15: are like, you know, I think I'm good. You can
• 33:36
  Speaker 15: play a different sport, or you could just go and
• 33:39
  Speaker 15: be an academic scholar.
• 33:40
  Speaker 3: Can anybody beat France?
• 33:42
  Speaker 15: I think they can. I think Spain can. I think
• 33:44
  Speaker 15: England can. I think Argentina can. But it's going to
• 33:46
  Speaker 15: take you on your best day and you're gonna have
• 33:48
  Speaker 15: to shut down a bunch of different superstars. It's like
• 33:50
  Speaker 15: playing against the Golden State Warriors with Steph Curry and
• 33:53
  Speaker 15: Kevin Durant and Klay Thompson and Draymond Green.
• 33:55
  Speaker 4: They are that level good.
• 33:57
  Speaker 5: That was a good way to put it. Who are
• 33:58
  Speaker 5: you rooting for?
• 34:00
  Speaker 3: For a good story?
• 34:01
  Speaker 15: So of course it's either I'd rather I would like
• 34:03
  Speaker 15: to see a rematch of the twenty twenty two final,
• 34:06
  Speaker 15: which was Argentina and France. That is probably the greatest
• 34:09
  Speaker 15: sporting event that I've ever watched.
• 34:12
  Speaker 5: So seeing that we're out of time, we're out of time.
• 34:14
  Speaker 3: The control room never talks to me, They only talk
• 34:16
  Speaker 3: to you. Luigi's vicious.
• 34:18
  Speaker 2: I mean, you know, I want to answer like six
• 34:20
  Speaker 2: more questions.
• 34:21
  Speaker 5: We'll get him back on next We'll get him out
• 34:23
  Speaker 5: next week. I'm all right, thanks so much.
• 34:25
  Speaker 6: Randon Williams or Bloomberg Business of Sports Senior reporter.
• 34:28
  Speaker 3: Bloomberg money. Where we do Shakespeare, We'll do that right now.
• 34:36
  Speaker 2: Shakespeare, where the sky meets to see It calls me
• 34:39
  Speaker 2: and no one knows how far it goes.
• 34:42
  Speaker 3: It's the wind in my sail on the sea stays
• 34:44
  Speaker 3: behind me.
• 34:45
  Speaker 10: This is one they all know.
• 34:46
  Speaker 3: If I go, there's just no telling how far.
• 34:49
  Speaker 5: This is not Shakespeare, who's bwana?
• 34:50
  Speaker 3: Okay, there we.
• 34:51
  Speaker 6: Go Shakespeare twenty twenty six. It is truly and it's Friday,
• 34:56
  Speaker 6: so of course we're looking ahead to the weekend into
• 34:59
  Speaker 6: next week. So for that we bring in Bloomberg's This
• 35:01
  Speaker 6: Weekend's anchor, Lisa Mattale. Lisa, all right, Mawana.
• 35:06
  Speaker 16: If you're going into the theaters this weekend, it's going
• 35:08
  Speaker 16: to be Mawana. Tom knows of course why this is
• 35:10
  Speaker 16: tough so on my list because Scarlett, I don't know
• 35:13
  Speaker 16: if I have a huge crush on Dwayne the Rod Johnson.
• 35:15
  Speaker 5: Oh, that's the reason for it.
• 35:17
  Speaker 16: But this is the remake of the twenty sixteen animated
• 35:20
  Speaker 16: film that's done phenomenal. So now they're doing the live action,
• 35:24
  Speaker 16: so now you have the real actors, So you have
• 35:26
  Speaker 16: Dwayne Johnson himself actually out there, so he's out.
• 35:29
  Speaker 3: There shown, So it's out there. My Dane is now
• 35:33
  Speaker 3: part of the show.
• 35:35
  Speaker 5: It's part of this show.
• 35:37
  Speaker 16: The reviews haven't been so great, but that's out there
• 35:39
  Speaker 16: and that's at the box office this weekend for music fanatics. Okay,
• 35:43
  Speaker 16: for those, the Rolling Stones are back there this week.
• 35:48
  Speaker 5: They're making music.
• 35:50
  Speaker 16: I'm telling you the twenty fifth studio album.
• 35:52
  Speaker 5: Foreign Tongues, that's what it's called.
• 35:53
  Speaker 16: So it's fourteen tracks, there's twelve original, two covers, and
• 35:58
  Speaker 16: they're they're grouping up with different people. They're in different collaborations.
• 36:01
  Speaker 5: One is with Paul McCartney. The last album.
• 36:03
  Speaker 16: Released in twenty twenty three. So this is I know
• 36:05
  Speaker 16: Tom's weekend is going to be spent.
• 36:07
  Speaker 2: I will put headphones on and I will listen and
• 36:10
  Speaker 2: it will be with immense respect for Charlie Watts.
• 36:13
  Speaker 5: How much did album costs these days?
• 36:15
  Speaker 10: Now?
• 36:16
  Speaker 2: Like I don't know, I was just streaming on title
• 36:18
  Speaker 2: is what I'm going to do. But the answer is
• 36:20
  Speaker 2: how much did it cost to make this? It took
• 36:21
  Speaker 2: them years to put this thing together. Yeah, this was
• 36:24
  Speaker 2: not some rich guys six week project. This is They've
• 36:27
  Speaker 2: really put a lot of effort.
• 36:29
  Speaker 6: It had to mend a lot of what else you
• 36:31
  Speaker 6: got say, they're still going, They're still going.
• 36:34
  Speaker 16: So I want to go to ECO Data because we
• 36:36
  Speaker 16: have a jam packed calendar coming up. So we start
• 36:40
  Speaker 16: off on Tuesday we have CPI, oh yes, yes, and
• 36:43
  Speaker 16: then on Wednesday we have BBI. So aside from that,
• 36:45
  Speaker 16: then we go into Thursday. Retail sales is a big number, sure,
• 36:49
  Speaker 16: and then Friday we have housing starts building permits. When
• 36:51
  Speaker 16: I was looking at the prior and then what the
• 36:54
  Speaker 16: expectations are, the biggest kind of difference I saw was
• 36:56
  Speaker 16: actually in housing starts. You know, the prior was a
• 36:59
  Speaker 16: dip of about fifty eighteen percent. The forecast is for
• 37:02
  Speaker 16: a horizon about thirteen percent. So that was a difference there.
• 37:04
  Speaker 16: And then I also want to point out this Bank
• 37:06
  Speaker 16: of America survey that talked about how much consumers are
• 37:09
  Speaker 16: spending for June, and they're spending more.
• 37:13
  Speaker 5: This is looking at credit card data. This is also
• 37:15
  Speaker 5: looking at prices are higher.
• 37:17
  Speaker 16: Well, the reason why is because they're not. The prices
• 37:19
  Speaker 16: aren't higher, but they're spending more because gas is cheaper, right,
• 37:23
  Speaker 16: so they have a little bit more disctionary income. And
• 37:25
  Speaker 16: the World Cup of course June, so they're starting to
• 37:29
  Speaker 16: spend more.
• 37:30
  Speaker 2: Yeah, are you doing like ten thousand steps a day now?
• 37:32
  Speaker 2: After Nathan's famous last week you.
• 37:34
  Speaker 5: Did see like did you of July?
• 37:37
  Speaker 16: You were out in living in Cody Island from Bloomberg
• 37:40
  Speaker 16: this weekend, Yes, I had a tru I did not
• 37:44
  Speaker 16: have any of them because they were in the boiling
• 37:47
  Speaker 16: sun for so long.
• 37:48
  Speaker 5: I was like, maybe I shouldn't meet these But it
• 37:50
  Speaker 5: was fun. It was a good experience.
• 37:52
  Speaker 16: I'm a Brooklyn girl, so being back, you know, in
• 37:54
  Speaker 16: Cony Island, you're good.
• 37:56
  Speaker 5: Was it was just nice.
• 37:56
  Speaker 4: It was a good experience.
• 37:58
  Speaker 5: What do you have coming up this weekend? I'm we're
• 38:00
  Speaker 5: talking a lot.
• 38:01
  Speaker 16: Because all the talk has been about s k HEINEX,
• 38:04
  Speaker 16: so we're tapping into that as at Ludlow is going
• 38:07
  Speaker 16: through the weekend. He's joining us as well, so that'll
• 38:11
  Speaker 16: be a good time.
• 38:11
  Speaker 4: On top of that, he's just killed it.
• 38:13
  Speaker 2: We make jokes about it, folks, but ed Ludlow's leadership
• 38:16
  Speaker 2: here on all this technology. I'm looking literally right now
• 38:20
  Speaker 2: at these SpaceX.
• 38:21
  Speaker 3: Thirty year bond I get killed on it? Are you
• 38:24
  Speaker 3: kidding me?
• 38:24
  Speaker 2: It's gone priced down, yield up, and it hasn't found
• 38:27
  Speaker 2: a bid yet it's ugly. That'll be a theme for
• 38:30
  Speaker 2: Ed Ludlow on Bloomberg this weekend. Look for that with
• 38:33
  Speaker 2: David and all this weekend.
• 38:36
  Speaker 6: All right, Lisa Mitail, thank you so much, and of
• 38:38
  Speaker 6: course be sure to watch Bloomberg this weekend. Every Saturday
• 38:40
  Speaker 6: and Sunday morning, starting at seventy in Eastern Time.
• 38:44
  Speaker 2: This is the Bloomberg Money Podcast, bringing you a smart look.
• 38:48
  Speaker 3: Three two.
• 38:50
  Speaker 2: This is the Bloomberg Money Podcast, bringing you a smart
• 38:53
  Speaker 2: look at the forces shaping your financial life. I'm Tom
• 38:57
  Speaker 2: Keen with Scarlet Foo. I watch the show live on
• 39:01
  Speaker 2: Bloomberg TV every Friday at.
• 39:03
  Speaker 3: Noon Wall Street Time.
• 39:05
  Speaker 2: Subscribe to the podcast on Apple, Spotify or wherever you listen,
• 39:10
  Speaker 2: and as always, on the Bloomberg Terminal and the Bloomberg
• 39:13
  Speaker 2: Business app.