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What is wrong with Trumps latest tax cut proposal? · The Financial Exchange Show

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  Financial Exchange with Chuck Zada and Mike Armstrong.
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  Speaker 3: Charles, Michael and Thomas with you here today on the
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  Financial Exchange, and markets are feeling a little bit puky
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  this morning. We received the jobs data at eight thirty
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  am Eastern Time, and it was not great. It was
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  I would give it kind of a C C minus
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  and that we had one hundred and forty two thousand
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  jobs created, but you had big negative revisions to the
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  last two months of job creation, down about ninety thousand
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  between the two of them from the original numbers that
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  we had seen. The unemployment rate did tick down from
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  four point three percent to four point two percent, so
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  that was a positive sign. Most of that was because
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  of temporary layoffs that had resolved themselves, rather than you know,
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  people you know getting new jobs and coming you know,
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  coming back into the workforce. So I think, ultimately, you
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  look at this jobs report, it doesn't do enough to say, hey,
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  there's there's been a you know, notable pivot upwards in
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  the trajectory of the labor market, especially given the preponderance
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  of evidence that is suggesting a slowing labor market.
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  Speaker 2: But it also isn't.
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  Speaker 3: So bad that you're like, hey, there's definitely a recession
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  going on, so we're just kind of in limbo for
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  another month or two.
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  Speaker 2: I think, Yeah, I don't know that there's much in
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  the way of data that could convince me that we're
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  not in a recession, that we're not heading for a
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  recession that's going to come out of the next thirty
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  days really until the next job's report we get.
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  Speaker 3: I mean, you look at the data that's out there,
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  and I'm always looking for, Hey, what's the catalyst for
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  a different move in markets than what we're seeing right now.
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  Monday the economic data, we get wholesale inventories, Okay, no
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  one cares. Tuesday we get the red book data for
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  you know, like retailers. Again, no one really cares at
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  this point. Wednesday and Thursday of next week you got
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  some inflation data. It doesn't matter. This isn't an inflation
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  story now, it's a growth story. Friday you get retails.
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  I'm sorry, no, Friday, you get consumer sentiment data. The
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  following Tuesday, September seventeenth, you finally get retail sales data. Aday,
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  so like that, you get that and then you're into
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  like building permits and starts, so you're into that whole cycle.
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  But at that point, the Fed's already making their decision
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  that afternoon. So it's just the the economic data that
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  we get. There are few pieces that really matter. This
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  one's off the board for another month, and there's no
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  earnings this month. Earning season is done, like you don't
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  kick the next one off until mid October, and so
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  you're kind of looking at this and you're like, okay,
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  so the market is feeling a little bit puky and
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  a little bit nervous here taking a look at the
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  S and P.
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  Speaker 2: I'm sorry.
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  Speaker 3: The Dow is off two hundred and twenty five points,
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  the SMP's down sixty nine, Nasdaq down three forty four.
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  This after all three indices, we're up in positive territory
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  shortly after the open today, and again kind of a
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  trend that we've seen recently. It feels so much like
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  September of twenty twenty one right now. I can't even
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  tell you like I September twenty one, by the way,
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  was the year that Evergrandde or Evergrand as it's more
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  commonly known, was imploding. And I remember clear as day
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  the market would open up, you know, half a percent
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  on the S and P five hundred puka percent by
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  the end of the day and close down half a percent.
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  Speaker 2: And it did that for like three weeks in a row.
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  It didn't feel very good. This just feels like markets
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  were fine in twenty twenty one.
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  Speaker 3: By the way they were, they're great, but this feels
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  so similar to that, and that it's like each day
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  this week now, hey, aside from Tuesday, Okay, great, we're
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  gonna you know, break through. Like there was one day
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  where I think we weaving up like three quarters of
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  a percent on the S and P closed down today, Hey,
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  we're up half a percent. We're down so far, and
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  who knows where the close goes. But generally, if you're
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  nervous in the morning heading into a weekend, you'd stay
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  nervous through the afternoon. But we'll see what ends up
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  happening here. So you get all three major in sees down.
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  The ten year US Treasury is down five basis points
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  to three point six eight four percent. The two year
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  treasury is at three point sixty six three, so we've
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  uninverted by two basis points now, so that's kind of exciting. Uh,
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  When we look at energy markets, oil down a dollar
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  five a barrel to sixty eight to ten the triple
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  A national averageur gas price is down another one point
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  two cents overnight to three twenty nine and six tenths
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  of a cent uh the most common price nationwide now,
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  according to to gas Buddy data two ninety nine a gallon.
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  That is the most common price of gas throughout the
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  country right now. I know we're not really seeing that
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  a ton up in the Northeast because we generally have
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  prices that are about ten percent higher than the national average,
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  but or than kind of the lowest prices that you see.
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  But the Northeast is kind of in line actually right now.
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  Mains at three thirty three, so three cents above. New
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  Hampshire is at three twenty fours so below, Masses at
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  three twenty nine, right in line, Vermont three thirty four,
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  Rhode Island three eighteen, so eleven cents below. In Connecticut
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  at three thirty two, so three cents above. But overall,
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  the Northeast holding up pretty well. If you're one of
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  our listeners out in the Portland, Oregon area, you're at
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  three seventy six and nine tenths ouch it's not quite,
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  you know, quite as good as what we have on
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  the East coast where we broadcast from. But hey, you know,
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  it's it is what it is. Gold today is let's
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  see up two fifty an ounce very boring at twenty five,
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  forty five and sixty cents, and that is what we
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  have moving in markets at the moment.
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  Speaker 2: So let's just recap the jobs report and recession. I
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  think that's what we really need to cover here, because,
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  like we said, it's not an inflationary environment right now.
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  That's not what we think you need to be focused on.
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  Speaker 3: And Christopher Waller, who is the governor for the Federal Reserve,
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  he just had a statement that he put out and
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  basically he is he's fairly aggressive on this quote. Considering
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  the achieved and continuing progress on inflation, in the moderation
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  in the labor market, I believe the time has come
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  to lower the target rate for the federal funds rate
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  at our upcoming meeting. So Waller's basically like, yep, we're
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  cutting furthermore. I do not expect this first cut to
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  be the last. With inflation and employment near our longer
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  run goals in the labor market, moderating, it's likely that
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  a series of reductions will be appropriate. Determining the pace
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  of rate cuts will ultimately and ultimately the total reduction
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  are decisions that lie in the future. But he is
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  open minded about the size and pace of cuts, and
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  if the data suggests the need for larger cuts, I
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  will support that as well, including front loading rate cuts
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  if necessary.
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  Speaker 2: So an indication that he would not be opposed to
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  a fifty basis point teck. No. And let's see if
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  we are getting any movement.
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  Speaker 3: This was it an Am Eastern that that came out
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  College g Wilkers.
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  Speaker 2: This moves fast.
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  Speaker 3: We are now up to a sixty nine percent chance
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  of a fifty basis point cut for the September meeting.
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  So things are just moving all over the place here.
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  Speaker 2: Yeah, yesterday, I think it was forty percent. Yesterday, yes
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  was forty. A week ago it was thirty, and a
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  month ago it was sixty eight. So we're back to
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  a month ago now. So let you market do the
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  worrying for you. Here's the thing about recessions, and you know,
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  I would agree that we all need to be elevated
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  in the level of our concern about a future recession.
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  I know that we just talked about how, you know,
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  we have to kind of kick the can down the
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  road a little bit in terms of whether it's going
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  to happen, But you usually don't have to wait all
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  that long. This is not historically, at least, it's not
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  the type of thing where you see unemployment shoot up
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  and then just stabilize for a year as we kick
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  around and then head for a recession later. Usually, if
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  you head for a recession and you see a pretty
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  persistent climb upwards in the unemployment rate, this morning we
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  had a very slight drop. It leveled off a bit.
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  If it continues to do so, then that plays into
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  the soft landing narrative, and equity markets could be quite
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  optimistic and excited about that, And that would be reasonable
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  if it did level off here. But we won't have
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  to wait a year to see that happen. We will
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  need to wait a couple of months here to determine
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  what's happening with unemployment. And the trend is not surrounding
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  the data of other data that has to do with employment,
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  that's not The Bureau of Labor Statistics Jobs report has
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  all been indicating higher unemployment, fewer jobs created problems with
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  the labor market, and that's what has me concerned personally.
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  Speaker 3: Here's the piece that's really interesting is the longer we
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  go without more data that indicates, Yep, there's a real
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  problem here, not just like, hey, things are getting worse
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  in the labor market, but hey, there's a real problem
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  here and industrial production is contracting. Like we're not getting
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  that data right yet, and we're not hearing it from
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  companies and their earnings reports either. By the way, like
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  the earnings reports, weakness that we're hearing is that semiconductors
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  aren't growing at two hundred percent year over year anymore.
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  It's it's concentrated in a number of retailers, but it's
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  not all the retailers. You know, Walmart and Target were great,
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  Dollar Tree and Dollar General were horrible. Home Depot and
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  Lows were bad. You know, Like it's it's all over
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  the place right now. But the piece that's interesting on
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  this the longer we go without that stuff with more,
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  without more stuff blowing up, the less likely recession becomes.
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  Right for one key reason, look at where interest rates
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  are right now as of yesterday Mortgage News Daily as
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  the national fixed rate thirty year fixed rate mortgage at
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  six point three five percent, it's a full percentage point
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  below where it peaked in October of last year. After today,
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  where rates are moving lower, Hey, you might be in
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  the six twos and that's remember, without any point or anything,
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  and you can very easily get that rate down into
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  the fives. You start getting rates poking into the fives,
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  and what that does for builders and potential home buyers
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  in terms of allowing more housing activity to happen. And remember,
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  it's really hard to have a recession when housing activity
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  is positive in the United States, which hasn't been this year.
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  With the last couple of quarters it's turned negative. Right,
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  But you start getting this and Q four and Q
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  one of next year start potentially looking positive for housing,
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  maybe you end up getting a recession that lasts like
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  three months and is very mild. Right like that, This
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  is a possibility as well that anyone who tells you
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  they know where this economy is going for the next
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  six to nine months trying to tell you something they
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  are I will be honest with you, I don't know.
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  I like, I think there's a real meaningful chance of recession.
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  It's the highest chance that I would say I've seen
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  in the last two years since twenty twenty two, I'd
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  go beyond that. But yeah, twenty twenty two things got
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  pretty hairy there. Like you, Ye, the first half was
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  borderline recession. To me, we're we're getting back to the
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  point where, hey, there's some real problems, but we might
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  skirt it, or we might just have a very brief
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  mild one and then we move on and oh we could.
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  Speaker 2: Have some like don't discount the the the problems here,
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  like I recognize the I'll discount a step severe one. Yeah,
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  it seems less likely to me. Here's what you shouldn't
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  discount the market impact of even a short recession. Yep.
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  With valuations where they are, you cannot possibly forecast what
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  that does to stocks with even a mild recession. Absolutely,
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  let's take a quick break.
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  Speaker 3: When we return, let's let's talk taxes and presidential candidates,
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  because they're just rolling stuff out left and right these days,
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  and so we got more more meat on that bone
• 12:49
  to pick at.
• 12:52
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• 13:23
  Speaker 3: As we get closer to the presidential election, which is
• 13:27
  now basically two months away on I can't remember the
• 13:31
  exact day, if it's the sixth or seventh or eighth
• 13:33
  of November, is the fourth fifth, I don't know. It's
• 13:37
  two months away. Yeah, you'll know when it gets here,
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  trust me. Okay, thank you, Tucker. So less than two
• 13:43
  months away.
• 13:44
  Speaker 2: Uh.
• 13:44
  Speaker 3: We're continuing to get more proposals coming out from the
• 13:47
  different campaigns. Yesterday, Donald Trump, I'm gonna quote here from
• 13:53
  the Wall Street Journal, puts to New York's Business Elite
• 13:56
  that he would once again turn America into the manufacturing
• 13:58
  superpower of the world. To do so, he said he
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  would cut the corporate tax rate to fifteen percent from
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  twenty one percent for companies that make their products in
• 14:06
  the United States, and expand tariffs on foreign made goods.
• 14:10
  Let's look at the corporate tax cut piece here, because
• 14:13
  I think the Wall Street Journal does a pretty good
• 14:15
  job of outlining the pros and cons of this. The
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  pros are, hey, it's a significant incentive to make stuff here, yep.
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  The downside is, well, what counts as something being made
• 14:27
  in the US, because there are an awful lot of automobiles,
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  as an example, that are made in the United States,
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  but they source their parts from all over and are
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  really just assembled in the US, not fully made here.
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  How much would that qualify and so on and so
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  so let's talk about something really easy to comprehend. I
• 14:43
  was shopping a few weeks ago from my daughter's new bicycle.
• 14:48
  Sounds lovely, it's your birthday, got our new bike immediately.
• 14:51
  Speaker 2: Both of that I have twins. Both of them were
• 14:53
  in bicycle accidents because they weren't used to these bigger bicycles.
• 14:56
  But nonetheless, to buy helmets dot the new bikes. They
• 15:00
  already had the helmets, we were good there, should have
• 15:01
  been wearing a hockey helmet turned out, But nonetheless, go
• 15:06
  to the bike shop, they order the bicycles. They then
• 15:10
  get those bikes shipped to them in parts. Some of
• 15:13
  them are parts that are manufactured in the United States.
• 15:16
  A lot of them are probably parts that are manufactured
• 15:18
  over in China. They then assemble that bicycle in the store.
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  Takes professional probably no more than thirty minutes to an
• 15:25
  hour to assemble that bike, test the brakes, make sure
• 15:27
  it's working properly. Am I eligible as that bike shop
• 15:30
  owner for a domestic manufacturing tax break? What if instead,
• 15:35
  I run a gift basket company and I import a
• 15:39
  bunch of chocolate and cheese from all parts of the world,
• 15:42
  and then I assemble that chocolate and cheese into different
• 15:44
  gift baskets and then sell those online. Do I manufacture
• 15:48
  goods in the United States? Because according to a court
• 15:50
  case from a few years ago, Yes, I do, according
• 15:53
  to a court case, because this exact type of tax credit,
• 15:55
  by the way, existed previously before the Trump tax cuts,
• 15:59
  and people were trying to figure out all these loopholes
• 16:01
  of getting here. So I don't debate that this is
• 16:02
  a If I import Canadian lumber and turn it in
• 16:06
  Canadian trees and turn it into lumber for homes, right,
• 16:08
  does that count? Like all sorts of really tricky questions
• 16:11
  here and what I think it's going to lead to
• 16:15
  is really difficult law to craft, and I kind of
• 16:20
  when you dig into the weeds here, I kind of
• 16:21
  dislike the policy because I don't know how to how
• 16:24
  to do it. I think maybe a better way of
• 16:26
  looking at something like this is forget about whether or
• 16:28
  not it's manufactured here. Let's just look at how many
• 16:31
  Americans you employ and offer a bigger tax credit for
• 16:35
  things like FICA taxes that you pay on. Behalf of
• 16:38
  your employees gets that a similar type of thing. It
• 16:43
  gets that employment in America. And in my opinion, I
• 16:46
  don't really care if that person's working for a company
• 16:49
  that assembles the bicycle or does something service oriented. I
• 16:53
  want companies to employ more Americans.
• 16:56
  Speaker 3: Well, and here's the other piece, is there are good
• 17:01
  reasons why we don't want to make everything in America.
• 17:05
  If you can make socks more cheaply somewhere else, why
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  do you want to bring that back to Like why
• 17:15
  why do you need those made here?
• 17:17
  Speaker 2: On other things?
• 17:17
  Speaker 3: We've we've talked about this a lot. Hey, if it's
• 17:19
  mission critical, if it's if it's medicines and medical devices
• 17:22
  and steel and semiconductors and the stuff that, Hey, if
• 17:26
  we can't source these domestically, we've got a real problem
• 17:30
  make them here. But bicycles, I can figure out how
• 17:34
  to use a scooter, you know, like.
• 17:40
  Speaker 2: You.
• 17:40
  Speaker 3: So I think we need to think about how to
• 17:42
  approach this, And there are some interesting places where I
• 17:45
  might say, yeah, let's let's do this for certain parts
• 17:47
  of the manufacturing sector, but not necessarily all of them.
• 17:58
  Speaker 1: Bringing the latest financial news straight to your radio every day,
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• 18:21
  Speaker 3: Did either of you happened to catch the Chef's playing
• 18:25
  the Ravens yesterday?
• 18:27
  Speaker 2: Like the first half? I did not see any of that.
• 18:29
  Speaker 3: I watched the first quarter or so of it, and
• 18:31
  then it was way past my bedtime because the game
• 18:34
  started late. Also, how do you start the I think
• 18:36
  there was a weather issue, Well.
• 18:38
  Speaker 2: They should fix that. Where was it, Kansas City City?
• 18:42
  Speaker 3: Yeah, they didn't get going to like it was like
• 18:43
  a thunderstorm or something. Yeah, I don't know, Maybe don't
• 18:47
  hold the first game of the year in Kansas City
• 18:50
  in early September.
• 18:51
  Speaker 4: No, it's always the winner of the Super Bowl, right.
• 18:54
  Speaker 2: Shouldn't be. Okay, your complaints about the NFL s very unreasonable,
• 19:00
  right now, I know. I just well, here's the thing,
• 19:05
  so so many legitimate ones to have, and Chuck is
• 19:08
  focused on whether or not the Super Bowl winners should
• 19:10
  get the first game of the year.
• 19:12
  Speaker 3: Because it caused a ten minute weather delay, which was
• 19:14
  hugely inconvenient to someone who goes to bed at eight
• 19:16
  thirty pm.
• 19:16
  Speaker 2: Yeah, yeah, I hear you. It's a problem.
• 19:19
  Speaker 3: Anyways, the Philadelphia Eagles play the Green Bay Packers tonight
• 19:23
  in South Paulo. Yes, in Brazil. First time you've ever
• 19:27
  had an NFL game in Brazil, which is fascinating, sure,
• 19:30
  and so kind of a big deal. But in order
• 19:34
  to watch this game, you gotta have peacock. And this
• 19:40
  is why I'm actually unhappy about what the NFL is doing.
• 19:45
  And it's not just the NFL, by the way, the
• 19:47
  NBA is taking this approach with their new streaming rights
• 19:50
  and TV rights deal where you've got to have like
• 19:54
  all different platforms in order to actually get all of
• 19:59
  the games that you want to see and look it's
• 20:05
  it feels shortsighted to me. But again, they're making money
• 20:08
  hand over fist. But I've always believed if you want
• 20:12
  to grow anything, be it a sport, be it a
• 20:17
  you know, hobby, whatever it is, you got to get
• 20:19
  it in front of as many eyeballs.
• 20:20
  Speaker 2: As possible, and you put it on peacock.
• 20:23
  Speaker 3: You're taking the first game ever in Brazil and you're
• 20:26
  putting it on peacock.
• 20:28
  Speaker 2: I've actually been to this stadium before, now that I
• 20:31
  look into it. It's where the Corinthians play.
• 20:32
  Speaker 3: Pretty cool, wonderful, it's great. No one's gonna know it.
• 20:35
  Speaker 2: But I don't have Peacock because actually, wait a minute,
• 20:39
  you probably do. I have to go double check I
• 20:41
  have because something to his account on our TV at
• 20:46
  one point, and we did watch some Olympics on peacock.
• 20:49
  Maybe that's their idea here is, Hey, we did get
• 20:51
  a lot of eyeballs on the Olympics, so we might
• 20:54
  have some holdovers here to be able to attract it
• 20:57
  get another month out of them.
• 20:58
  Speaker 3: Do you want to know how ridiculous it is in
• 20:59
  terms of how I even have peacock. Your uncle's nephews
• 21:04
  X is Jimmy Peassitter. Yes, no, what's actually going on here?
• 21:09
  I have a credit card. It gets me a one
• 21:11
  year free subscription to Instacart or instacart Puss, whatever it is.
• 21:17
  And by virtue of having instacart Pus, you get a
• 21:20
  one year free subscription to Peacock. How are any of
• 21:24
  these people making money.
• 21:25
  Speaker 2: Exception of rewards?
• 21:26
  Speaker 1: Right?
• 21:26
  Speaker 2: Like, hold on, let's be clear about something, Chuck, They aren't.
• 21:30
  Peacock has never made any more exactly, Nora has Disney
• 21:33
  plus none of this.
• 21:34
  Speaker 3: Is sustainable, Like, you can't just keep giving me free
• 21:38
  stuff and expect we will Like, what are we really
• 21:43
  doing here? And now I've got to download a Peacock
• 21:45
  apt to watch this because I had it for the
• 21:48
  two weeks that the Olympics were here. But I what
• 21:51
  else am I going to watch on Peacock?
• 21:53
  Speaker 2: I don't know.
• 21:54
  Speaker 4: We're going to a wedding tonight and my brother in
• 21:56
  law to subscribe to peacock so I could put them
• 21:59
  on the phone.
• 22:00
  Speaker 2: May I suggest reruns of thirty Rock?
• 22:03
  Speaker 3: You know, like you just take the wedding to South Paula.
• 22:05
  It's the only way you can watch the thing.
• 22:07
  Speaker 2: Yeah, this is reaching peak stupidity and the NFL, in
• 22:13
  my opinion, is the only league that can get away
• 22:15
  with this. I don't know how the NBA is gonna play.
• 22:17
  Speaker 3: The NBA can because the viewership's much lower to begin with,
• 22:21
  and dedicated NBA fans are insane, like more so than
• 22:27
  anyone who watches the NFL's kind of nuts.
• 22:30
  Speaker 2: Again, how many people watch the NFL.
• 22:31
  Speaker 3: And like pick a fantasy team and it's like, oh,
• 22:33
  I have three, there you go. NBA fans that are
• 22:38
  nuts are like really nuts. It's it's just it's it's
• 22:44
  different NHL to a certain extent, but it's just again
• 22:47
  a teeny tiny fan base. And I don't know if
• 22:50
  anyone's nuts about Major League Baseball at this point.
• 22:53
  Speaker 2: Well, I hope the I hope the viewership numbers are
• 22:56
  absolutely abysmal for this. It will be, I know. And
• 23:00
  that's what we're all getting now is, yeah, you're gonna
• 23:03
  have to download app by app by app in order
• 23:07
  to actually watch television.
• 23:08
  Speaker 3: There are four different streaming services with games this year
• 23:11
  that have those games exclusively.
• 23:14
  Speaker 2: You've got Peacock, Netflix.
• 23:16
  Speaker 3: Amazon, Netflix, and ESPN Plus has a Monday night football
• 23:20
  game now, granted it's between the Chargers and Cardinals. So
• 23:25
  outside of the southwestern part of the US, it's unclear
• 23:28
  who would actually want to watch that because both teams
• 23:31
  are expected to be mediocre at best this year. But
• 23:36
  that will be on ESPN Plus, probably not driving many subscribers.
• 23:39
  I just want to watch a lot of.
• 23:41
  Speaker 2: Confusion by Brazilians trying to figure out how the hell
• 23:46
  football works, and you know it's going to be really
• 23:48
  difficult to do. So I wonder who has the rights
• 23:51
  in Brazil. What do you mean, not tight, well, not Twitter.
• 23:56
  Speaker 3: So the way that media rights typically work is they're
• 23:58
  on a country by country base because of the different
• 24:01
  laws that are required to podcast. So it's not going
• 24:04
  to be Peacock. I don't think that has it in
• 24:06
  Brazil by default. It might be someone else. So if
• 24:09
  you go to Brazil, you might have to watch it
• 24:11
  on whatever. The Brazilian peacock.
• 24:15
  Speaker 2: Yeah, there's a streaming platform called Pavoa, which is just
• 24:21
  peacock translated to Portuguese. So I don't think that's actually real.
• 24:24
  Probably not.
• 24:26
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• 25:25
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• 25:34
  Speaker 3: The average American needs forty two pounds of cheese in
• 25:37
  a year which is a little bit less than a
• 25:41
  pound a week, you know, about three quarters of a
• 25:42
  pound a week. I represent two thirds of that cheese
• 25:46
  consumption myself, which means the rest of you needs significantly less.
• 25:51
  But great news for cheeseheads out there. We are seeing
• 25:57
  four billion dollars in u US dairy product projects that
• 26:01
  are going to be coming online over the next few years,
• 26:05
  and I gotta tell you, I am eager to see.
• 26:08
  Speaker 2: What they can put on my plate. What's your what's
• 26:12
  your top rated hard and soft cheese?
• 26:14
  Speaker 3: What do you mean top rated? Like, what's your favorite? Well,
• 26:18
  it depends like for what context, isn't just best overall?
• 26:21
  My favorite overall hard cheese has to be the Robusto
• 26:26
  Gouda from Whole Foods. Oh okay, and favorite soft is
• 26:29
  just a category would be Barata favorite hard. I would
• 26:33
  go with the Drunken Goat, which is a goat cheese
• 26:36
  that's soaked in wine. It's fantastic, it's guy like that
• 26:40
  purple rind on. It just absolutely lovely. I could eat
• 26:43
  a whole wedge of that myself. And if I'm going
• 26:46
  favorite soft cheese, you know I don't soft cheese often,
• 26:51
  but when I do American bre.
• 26:55
  Speaker 1: No.
• 26:55
  Speaker 2: I actually I would go bree.
• 26:58
  Speaker 3: I make a fantastic little brie pasta, if I may
• 27:01
  say so myself.
• 27:02
  Speaker 2: So all you gotta do for anyone listening, you take
• 27:05
  cook it with chack.
• 27:06
  Speaker 3: You take four or five tomatoes, like big plump ones,
• 27:09
  not the little cherries or the plums, but the big,
• 27:11
  you know, the beef steak ones. Cut those up into
• 27:14
  maybe half inch sized pieces there, put them in a bowl.
• 27:17
  You're gonna take handful or so of basil, slice it,
• 27:21
  you know, into thin slice so it's nicely sliced there,
• 27:24
  maybe a cup or so of olive oil. And then
• 27:26
  you're gonna take a pound of brie, derind it and
• 27:29
  put it into little, you know, half inch sized pieces
• 27:32
  in there as well. Leave it for the whole day
• 27:34
  on your counter. It'll be just fine, don't worry. And
• 27:36
  then cook the pasta of your choosing, and you're gonna
• 27:40
  pour this over the pasta after you pull the pasta
• 27:42
  out of the water, not before, obviously, but once you
• 27:45
  get the pasta cooked and put it into a bowl,
• 27:47
  you pour this over and the cheese just melts down.
• 27:50
  And then you also want to have I think it's
• 27:52
  maybe four or five things of minced garlic in there
• 27:55
  as well. And let me tell you it is absolute heaven.
• 27:59
  I had it two days ago. I could eat that
• 28:01
  every single night. So I'm gonna I will go with
• 28:03
  Bree because it's a component of one of my favorite
• 28:05
  pasta dishes.
• 28:06
  Speaker 2: Wow, that was a long answer. Simple, Yes, what I've done.
• 28:10
  Speaker 3: But that's okay, And this is why I've got some
• 28:14
  cholesterol problems.
• 28:16
  Speaker 2: Tucker, Are you gonna throw in your face here or no?
• 28:19
  Not really? Okay, not much of cheesehead, No, I am,
• 28:22
  you know, it's just it's just a private person. I
• 28:25
  like cheddar, That's it. I don't know. Okay.
• 28:29
  Speaker 3: Also, just as long as we're talking about this American.
• 28:32
  Speaker 4: Cheese, I like the U there's like an onion type
• 28:35
  of cheese that's been I've been having over the past
• 28:37
  couple of months. Here, Oh, I think you can get
• 28:40
  that at Whole Foods.
• 28:42
  Speaker 3: While you're talking American cheese, do you guys know how
• 28:44
  they make it?
• 28:46
  Speaker 2: I assume just in a plastics production. It's uh caramelized
• 28:49
  the same place they put the covering. Do you guys
• 28:52
  know how American cheese is actually made?
• 28:55
  Speaker 1: No?
• 28:56
  Speaker 4: Isn't it like a chemical process.
• 28:57
  Speaker 2: It's way grosser than that.
• 28:59
  Speaker 4: Yeah, that's why I don't yet.
• 29:00
  Speaker 3: You take cheddar cheese, break it into little tiny bits,
• 29:04
  and then you add a bunch of emulsifiers to make
• 29:07
  it that texture. But it's basically denatured cheddar cheese that
• 29:12
  you have taken.
• 29:13
  Speaker 2: Can we do this entire segment now? In a Juliet
• 29:15
  Child voice?
• 29:17
  Speaker 3: You know, I've never actually heard that child speak. I
• 29:22
  feel like I should, given my overall love of food,
• 29:24
  but I for some reason, I've never heard her speak.
• 29:29
  Speaker 2: It's a pretty high, higher pitched French Grandma is kind
• 29:32
  of how I would no French accent, but yeah, that's
• 29:36
  how I'm gonna describe it. While we're on this topic,
• 29:38
  we gotta go. Yeah, we got a guest here. Miss
• 29:42
  Paul's waiting around me, like, what the hell? All right,
• 29:45
  we gotta go.
• 29:46
  Speaker 3: Paul Monica is going to join us to talk about
• 29:48
  Apple's event next week right.
• 29:49
  Speaker 1: After this, breaking business and financial news first throughout the
• 29:54
  day only here on the Financial Exchange Radio Network. Miss
• 29:59
  any of the show. The Financial Exchange Show podcast is
• 30:02
  available on Apple, Spotify, and iHeartRadio. Hit the subscribe button
• 30:07
  and leave us a five star review. This is the
• 30:10
  Financial Exchange Radio Network.
• 30:13
  Speaker 2: Ladies and gentlemen the weekend.
• 30:20
  Speaker 3: As promised, we're now joined by Paul Lamonica from Barons
• 30:23
  here to talk a little bit about Apple's upcoming event.
• 30:27
  Speaker 2: Paul, how are you today?
• 30:28
  Speaker 5: Good? Thanks? How you guys doing.
• 30:30
  Speaker 3: We're doing great. And Apple's got this event. I believe
• 30:32
  it's on September ninth, where they are going to likely
• 30:35
  be announcing their new iPhones. What kind of stuff are
• 30:39
  we talking about? How excited are investors getting about another iPhone?
• 30:44
  Speaker 1: Yeah?
• 30:44
  Speaker 5: I mean, I think there's a lot of pressure on
• 30:47
  Apple to show that it's not too far behind when
• 30:51
  it comes to artificial intelligence, and I think that there
• 30:56
  is a lot of hope and excitement that the company
• 31:00
  will unveil these new AI enabled tools, particularly around Siri
• 31:06
  that will be part of the iPhone sixteen, and try
• 31:09
  and convince people who've been sitting on the sidelines to
• 31:13
  upgrade their phones a little bit more frequently, because I
• 31:15
  think that's been a problem with each successive iPhone release.
• 31:20
  They've been, you know, maybe not so revolutionary with the
• 31:26
  new features, so people have been holding on to them longer.
• 31:29
  And that's one reason why, you know, services has become
• 31:32
  an increasingly important part of the Apple revenue PI as
• 31:36
  opposed to the actual hardware.
• 31:38
  Speaker 3: Any other expectations for other new devices or is it
• 31:41
  largely Hey, this is the event each year, that's the iPhone,
• 31:44
  and that's that's kind of what it is. Or do
• 31:46
  we ever get the and one more thing like Steve
• 31:48
  Jobs used to do?
• 31:50
  Speaker 5: Yeah, I mean it's possible. I mean, Cook isn't really
• 31:54
  as big of a proponent. I think of the one
• 31:56
  more thing sort of showmanship that Steve Jobs was known for.
• 32:01
  And September is typically when the iPhone does get the refresh.
• 32:06
  I mean it's possible we will get some more announcements
• 32:12
  as well, but I think it's mostly going to be
• 32:15
  around the phone and maybe things that are related to
• 32:19
  the phone. We're expected to maybe get some new AirPod
• 32:23
  up updates as well, but I wouldn't expect anything major
• 32:28
  regarding the Mac or other products.
• 32:31
  Speaker 3: Maybe the watch.
• 32:32
  Speaker 5: You know, all the mobile devices I think kind of
• 32:34
  get lumped in with these iPhone events. So maybe AirPods
• 32:38
  in the Apple Watch will see some upgrades, but you know,
• 32:41
  probably nothing major with regards to the macline.
• 32:44
  Speaker 3: Paul, do you get the sense that there's any real
• 32:46
  excitement about this, and like the AI features they're talking
• 32:50
  about in the general public, and I guess where I'm
• 32:53
  coming from. I don't know how much the general public
• 32:57
  uses artificial intelligence right now. And most of apple great
• 33:00
  innovations have been making something easier that people already used,
• 33:04
  rather than like sending them into something that they've never
• 33:08
  done before.
• 33:08
  Speaker 2: In my opinion, your yeah, that's no. I think that's
• 33:11
  a great question.
• 33:12
  Speaker 5: There are a lot of concerns about whether or not
• 33:16
  AI is being overhyped, and you know, maybe it's not
• 33:21
  something that the general consumer needs as much as maybe
• 33:26
  businesses and you know, you know, big corporations that are
• 33:30
  mining for data and can use AI to their advantage
• 33:33
  in that respect. And I think it's one of the
• 33:35
  reasons why we've seen in Nvidia and a lot of
• 33:37
  other chip companies have had this big correction in recent weeks.
• 33:43
  You know, perhaps AI has been overhyped in the same
• 33:46
  way that the Internet was in the late nineties, and
• 33:49
  obviously it did eventually become something revolutionary, but there's probably
• 33:54
  too much promise and too much hype at the time
• 33:57
  for you know, what it eventually would become, and we
• 34:01
  might be seeing that with AI. Now, I think Apple
• 34:04
  really just needs to continue to show consumers why they
• 34:09
  need a new device every year, and that's probably the
• 34:14
  big challenge is getting these people to upgrade to newer
• 34:18
  devices more frequently. And until they do that, services and
• 34:22
  software will become an increasingly important part of the Apple
• 34:25
  revenue stream.
• 34:26
  Speaker 3: Very good, Paul, appreciate you joining us today and thank
• 34:29
  you so much. Have a great weekend, enjoy the opening
• 34:33
  weekend of NFL games.
• 34:35
  Speaker 5: Yes, thank you very much.
• 34:36
  Speaker 2: Sam to you guys.
• 34:37
  Speaker 3: That is Paul Monica from Baron's talking about Apple. We
• 34:42
  got to talk about Fire Festival too, Yes, we sure,
• 34:45
  because Billy Boy is back. Billy McFarland has been planning
• 34:49
  the second Fire Festival for a little bit over a
• 34:52
  year now, has already sold tickets, has already sold tickets,
• 34:55
  he's out of jail, does have a whole bunch of debt.
• 34:59
  But here's the thing. Sequels not gonna be as good
• 35:04
  as the original the first one. What made it such
• 35:07
  a great train wreck was that people thought it was
• 35:10
  going to be this fantastic concert and instead they got
• 35:14
  cheese sandwiches and styrofoam.
• 35:16
  Speaker 2: Intense I looked at them, I don't know that you
• 35:19
  can even qualify those as cheese sandwiches.
• 35:21
  Speaker 3: Cheese and bread in a styrofoam container.
• 35:24
  Speaker 2: Ye tents that had not been assembled. This here's the thing.
• 35:28
  Speaker 3: It's not going to be like the best concert ever
• 35:30
  because they've clearly shown that they have no ability to
• 35:32
  actually put on a concert. It's also even if it
• 35:35
  is bad and everyone buys tickets just to go and
• 35:37
  see how bad it is, it's gonna be a bunch
• 35:39
  of people walking around filming how bad it is, who
• 35:42
  are there just for the spectacle of it, And so
• 35:44
  it's not gonna be as good as the original.
• 35:46
  Speaker 2: Fool me once, Shame on you for me twice, Shame
• 35:50
  on me. If you buy tickets to this and it's
• 35:52
  a total fraud, Billy doesn't even be deserved to go
• 35:54
  to jail again. But what if it's.
• 35:56
  Speaker 3: Great, We're done for the day, done for the week.
• 35:59
  We'll see a Monday