Latest / The Financial Exchange Show / Businesses face rising inflation due to tariffs. Will consumers get hit next?

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Businesses face rising inflation due to tariffs. Will consumers get hit next? · The Financial Exchange Show

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  Speaker 2: Good morning, welcome back to the Financial Exchange. It's Mike,
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  Speaker 2: you know, clip snippets coming here and there from his testimony,
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  Speaker 2: but once again reiterating that they can afford to wait
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  Speaker 2: on rate cuts in this environment, and so we will
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  Speaker 2: see where that all goes next. But highly anticipated that
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  Speaker 2: the Fed probably doesn't do much at the next meeting,
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  Speaker 2: even a month away from now, and not until September
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  Speaker 2: that we see continued rate cuts. I will acknowledge, though,
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  Speaker 2: that we only really need maybe two bad labor market
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  Speaker 2: reports before the FED pivots on this. And the labor
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  Speaker 2: market reports that we've been getting, it's basically flat lined,
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  Speaker 2: but you've not seen any tightness in the market. It's
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  Speaker 2: gotten slightly worse in terms of the labor market, both
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  Speaker 2: in terms of filings for unemployment as well as that
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  Speaker 2: unemployment rate when you look at the unrounded numbers.
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  Speaker 3: And so I think.
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  Speaker 2: The obvious direction on the labor market is weakness. Open
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  Speaker 2: questions about where prices go due to tariffs still exist,
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  Speaker 2: to open questions about where employment goes due to immigration
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  Speaker 2: reform still exist. And so I tend to agree with
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  Speaker 2: the Chairman that given this uncertainty, the best thing to
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  Speaker 2: do right now is nothing. But I don't think it
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  Speaker 2: would take much for them to shift that stance.
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  Speaker 4: No, the labor market is scrutinized heavily by the FED,
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  Speaker 4: and that's the area that I would imagine would cause
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  Speaker 4: them to have the most prompt action on the inflationary front.
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  Speaker 4: Perhaps if you were to see a short term uptick
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  Speaker 4: in inflation because some of the tariffs in place, I
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  Speaker 4: would imagine that would cause them to be a little
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  Speaker 4: bit more of wait and see to see if truly
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  Speaker 4: it was a short term blip for pricing pressure with tariffs,
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  Speaker 4: but the labor market that certainly would prompt action a
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  Speaker 4: lot faster. I agree with you there.
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  Speaker 2: The Wall Street journal is saying that j. Powell faces
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  Speaker 2: a lose lose scenario given the pressure from members of
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  Speaker 2: the FED as well as Donald Trump, and I'm just
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  Speaker 2: not sure I see it that way, so I will
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  Speaker 2: acknowledge it as undoubtedly true.
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  Speaker 3: As you know.
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  Speaker 2: The piece points out that President Trump is pressuring the
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  Speaker 2: FED to cut rates with a public barrage that has
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  Speaker 2: few precedents in modern history.
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  Speaker 3: True.
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  Speaker 2: The only president I think you can give in modern
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  Speaker 2: history is President Trump during.
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  Speaker 4: His first term.
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  Speaker 2: You know, you pushing on rates. They're concerned about being
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  Speaker 2: perceived as politically motivated. I just don't see the risk
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  Speaker 2: of them being perceived as politically motivated here. I just don't,
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  Speaker 2: you know, given his commentary, given how clear he has
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  Speaker 2: been on the subject, you know, should the FED go
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  Speaker 2: and choose to cut rates at a later meeting this year.
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  Speaker 3: I really see no risk.
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  Speaker 2: At this point if the FED being perceived as politically
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  Speaker 2: motivated to cut.
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  Speaker 4: Rates depends on the size of them. I mean, you know,
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  Speaker 4: Trump's asking for one to two percent, and if they
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  Speaker 4: went that far, that would be something that's clearly political influence.
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  Speaker 4: But they did their twenty five basis cut in September.
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  Speaker 4: I agree with you that would not be but they're
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  Speaker 4: already it's already baked in for the probability standpoint too.
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  Speaker 4: So it's the the lose loses more if if they're
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  Speaker 4: just going to be blamed, he Trump has sort of
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  Speaker 4: set them up to be the scapegoat if anything goes
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  Speaker 4: wrong with the economy, and I don't think they'll get
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  Speaker 4: a ton of credit if things go right. That's sort
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  Speaker 4: of the lose lose angle.
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  Speaker 2: I guess, you know that's that's the name of the
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  Speaker 2: job though, And you know, and Jay Powell, I think
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  Speaker 2: gets peppered with these questions day in and day out,
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  Speaker 2: and the guy's not perfect. I think that the FED
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  Speaker 2: dramatically screwed up in twenty twenty two. Like I think,
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  Speaker 2: there's really no question about it. But one thing that
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  Speaker 2: I will compliment Jay Powell on is his handling of
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  Speaker 2: all of the politics of the job has been as
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  Speaker 2: close to perfect as he yet He's side stepped all
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  Speaker 2: the questions about him being fired. Every time he asked question,
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  Speaker 2: you know, can the president remove you? He has not
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  Speaker 2: expanded on it. He's not fired back at the president.
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  Speaker 2: He's not fallen for any of the traps. He's just said, nope,
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  Speaker 2: it's not allowed under the law. Let's move on to
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  Speaker 2: the next question. I'm gonna keep doing my job, and
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  Speaker 2: so I will give credit where credits due there. The
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  Speaker 2: guy has just not jumped in. It'd be pretty easy
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  Speaker 2: to fire back and you know, take the side of
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  Speaker 2: Democrats and say, you know, the president's being inappropriate here.
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  Speaker 3: He hasn't even done that.
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  Speaker 2: He's just said, no, the you know, the president can
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  Speaker 2: put whatever pressure he wants on the Fed, We're not
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  Speaker 2: going to succumb to it. We'll do what we think
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  Speaker 2: is right for the country, right for the economy. And
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  Speaker 2: it's been as close to perfect as you get in
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  Speaker 2: that role. So I think a lot of stories try
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  Speaker 2: to create the drama here. I just don't see it.
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  Speaker 2: I don't see a whole lot of drama. I don't
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  Speaker 2: see a whole lot of downside.
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  Speaker 3: The question that J.
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  Speaker 2: Powell and the Fed do continue to face here is
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  Speaker 2: while a lot of the tariffs are under question, there
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  Speaker 2: are a number of them that are in place today
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  Speaker 2: and are clearly driving pricing issues. The steel and aluminum
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  Speaker 2: tariffs are starting to hit appliances and things along those lines,
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  Speaker 2: But by and large, it's unclear as to whether or
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  Speaker 2: not consumers are actually ending up paying higher prices at
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  Speaker 2: the moment. It's unclear if businesses are absorbing some of that.
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  Speaker 2: And MarketWatch has a piece on this subject today. You know,
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  Speaker 2: businesses facing rising inflation due to teriffs, and will consumers
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  Speaker 2: get hit next. It's an all important question that I
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  Speaker 2: don't think anyone has a real reasonable answer to. But
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  Speaker 2: we are going to take a quick break here when
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  Speaker 2: we come back, and Mariconte from the New York Times
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  Speaker 2: is joining us. She took a look at a number
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  Speaker 2: of goods on Wirecutter if you're not familiar, that's the
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  Speaker 2: New York Times review site that they take a look
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  Speaker 2: at all sorts of different tech products and presumably a
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  Speaker 2: lot of stuff that's manufactured in China. What have we
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  Speaker 2: seen on price moves on this list of goods. That's
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  Speaker 2: next here the Financial Exchange.
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  Speaker 2: We'll be joined shortly by Emery Kanti from The New
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  Speaker 2: York Times Wirecutter on price tracking on a whole bunch
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  Speaker 2: of stuff in regards to terrorist But before we go,
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  Speaker 2: I want to go back to the real estate market
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  Speaker 2: for a moment and speak a little bit about Zillo.
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  Speaker 2: Which is everybody's familiar with Zillo, right, I don't think
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  Speaker 2: I need to even mention them. They are the preeminent
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  Speaker 2: online marketplace for looking at real estate listings. According to sources,
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  Speaker 2: the Zillo website has about two hundred and twenty seven
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  Speaker 2: million unique visitors a month. Redfin is third on the
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  Speaker 2: list at fifty million and Realtor dot Com I presume
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  Speaker 2: is the second, but they're facing some anti trust concerns
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  Speaker 2: that we're going to get back to. But before we
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  Speaker 2: go there, and Marie's joining us now from Wirecutter, talking
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  Speaker 2: to about a piece they published today yesterday over the
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  Speaker 2: weekend about forty different picks that they had and the
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  Speaker 2: prices that have fluctuated or not fluctuated on these recommended goods.
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  Speaker 3: And Marie, thanks for joining us. Appreciate it.
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  Speaker 5: Oh, I'm thrilled to be here. Thanks for having me so.
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  Speaker 2: Obviously everybody's been focused on tariffs and where prices might
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  Speaker 2: go a lot of people kind of justify it to
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  Speaker 2: bring purchases forward on things like cars. You guys had
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  Speaker 2: Wirecutter have been pretty steadfast in your opinion, Hey, not
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  Speaker 2: necessary and we don't you know, you don't need to
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  Speaker 2: front run this stuff and buy these goods and reaction
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  Speaker 2: to prices increasing. But tell us about the study that
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  Speaker 2: you did. What did you look at and how long
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  Speaker 2: did you look at prices for?
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  Speaker 5: So our secret weapon is our deals team and they
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  Speaker 5: track prices every day of the year to surface deals
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  Speaker 5: on Wirecutter picks. So when the tariffs got a lot
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  Speaker 5: of chatter. We really wanted them to hone in on
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  Speaker 5: a variety of products and track them every day to
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  Speaker 5: see what was actually happening. Are things getting more expensive?
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  Speaker 5: And we know from all of this tracking that sales
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  Speaker 5: pop up, so prices are never really steady and there's
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  Speaker 5: always a flow and fluctuation to them. But there's this
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  Speaker 5: perception that everything's getting more expensive. And so that's what
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  Speaker 5: we're really digging into is at this point in time,
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  Speaker 5: is everything getting more expensive?
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  Speaker 3: Now?
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  Speaker 2: For those folks that aren't familiar, Wirecutter, you know, goes
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  Speaker 2: out and reviews all sorts of different products. Is there
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  Speaker 2: a special I mean I feel like it started with
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  Speaker 2: technology products, but I see olive oil and all sorts
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  Speaker 2: of things listed here. What does Wirecutter go out and
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  Speaker 2: actually review?
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  Speaker 5: Yeah, we review a really broad range. We have a
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  Speaker 5: kitchen team that is kitchen products, but also as you said,
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  Speaker 5: food items as well. We have a baby and kid
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  Speaker 5: team baby products, strollers, car seats, luggage. We do have
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  Speaker 5: a very robust tech team smart Home, and then we're
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  Speaker 5: really moving into beauty coverage and style coverage, so we
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  Speaker 5: really are touching almost every area of the home at
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  Speaker 5: this point.
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  Speaker 1: Yeah.
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  Speaker 2: It Actually it causes a bit of friction in my household.
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  Speaker 2: I won't buy anything in my house when my wife
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  Speaker 2: brings it up without checking out wirecutter. So it's an
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  Speaker 2: expansive list. But when you took a look at these,
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  Speaker 2: do you have a sense for of the forty products
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  Speaker 2: you looked at, how many of them are manufactured in
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  Speaker 2: the United States? Was there any sense of you know,
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  Speaker 2: I assume a lot of them were not. When you
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  Speaker 2: speak of things like, you know, kitchen items, instant pots,
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  Speaker 2: all of oils, things like that, was there a significant
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  Speaker 2: list of these that were actually manufactured in the US
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  Speaker 2: to your knowledge?
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  Speaker 5: We really wanted to look at a variety, so we
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  Speaker 5: picked products that are specifically made in Canada and shipped here,
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  Speaker 5: that have factories in Canada. We really wanted to use
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  Speaker 5: a lot of different objects as emblematic of a larger issue.
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  Speaker 5: Our tech team and our baby kit team have been
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  Speaker 5: the most concerned about tariffs because the majority of what
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  Speaker 5: they recommend is made in China.
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  Speaker 2: So what did you actually find over the course of
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  Speaker 2: these sixty days when it came to price fluctuations.
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  Speaker 5: You know, not that much has changed yet, And the
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  Speaker 5: reason for that is complicated and nuanced, but things did
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  Speaker 5: not change as much as we thought they would. We
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  Speaker 5: really thought that manufacturers and retailers would come out ahead
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  Speaker 5: of it and preemptively raise prices, and that hasn't really happened.
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  Speaker 5: And the other thing that we found is even though
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  Speaker 5: a hand of our picks did raise in price, some
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  Speaker 5: of them were on perma sale, so you were still
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  Speaker 5: paying something inexpensive. So I'll give you an example an
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  Speaker 5: LG refrigerator that jumped in price significantly, but the sale
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  Speaker 5: price was still sixteen hundred dollars, So as a consumer,
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  Speaker 5: you were still buying it for sixteen hundred dollars. But
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  Speaker 5: you know the price of steel, and that is really
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  Speaker 5: what is causing a lot of this right now, the
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  Speaker 5: pause on the tariffs. We're looking at July ninth as
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  Speaker 5: the next sort of milestone that could potentially further raise prices.
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  Speaker 5: But what we really saw was that it wasn't necessarily
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  Speaker 5: the products that we tracked, but it was some of
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  Speaker 5: the products we didn't track. And because the Deals team
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  Speaker 5: is always tracking these prices, I have a really good
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  Speaker 5: example of this. So we picked a Lisa mattress that
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  Speaker 5: we really like as the thing to track every single day,
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  Speaker 5: and that didn't raise in price. And then there was
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  Speaker 5: another model that we noticed did. So we went back
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  Speaker 5: to Lisa and he said, what's going on, and they said,
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  Speaker 5: you know, we've been eating the profit margin here. We
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  Speaker 5: have been reducing our profit margin on the majority of
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  Speaker 5: our products in order to keep prices steady. But with
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  Speaker 5: this one model of mattress, because of the steel tariffs,
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  Speaker 5: we just couldn't do it, and we had to raise
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  Speaker 5: prices on that one. So it wasn't necessarily something we tracked,
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  Speaker 5: but it was something that we noticed because it's also
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  Speaker 5: a wirecutter pick.
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  Speaker 2: So we keep hearing about the state of the consumer,
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  Speaker 2: and unlike in twenty twenty one and twenty twenty two,
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  Speaker 2: when everyone was quite flush with cash, they seem to
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  Speaker 2: be responding to inflation in a very different way now
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  Speaker 2: and speaking to hey, we're going to cut the budget,
• 14:35
  Speaker 2: trim the budget, and I sense a general dissatisfaction with
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  Speaker 2: any retailers that choose to raise prices at this moment.
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  Speaker 3: Is that what you think we're seeing here?
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  Speaker 2: Is it kind of a game of chicken with these
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  Speaker 2: retailers who are saying, we just can't be the first
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  Speaker 2: to market on these price increases or is there something
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  Speaker 2: else afoot here that's one hundred percent.
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  Speaker 5: That is definitely the feeling out there. Manufacturers have told
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  Speaker 5: our reporters directly that they just not feel like they
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  Speaker 5: can raise prices right now. They don't want to be
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  Speaker 5: the first one out of the gate. And the larger
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  Speaker 5: manufacturers or the multi merchant retailers, those people are able
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  Speaker 5: to insulate themselves a little bit better from these price hikes.
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  Speaker 5: It's the direct to consumer goods and it's small businesses
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  Speaker 5: that are really being hurt because they don't have the
• 15:19
  Speaker 5: margins to be able to not increase their prices. So
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  Speaker 5: they are the ones that are really being forced to
• 15:27
  Speaker 5: increase their prices and customer you know, they're a little
• 15:31
  Speaker 5: concerned that they're going to go out of business.
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  Speaker 2: Yeah, that speaks to something there. Right when you think
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  Speaker 2: about big versus small companies, you wonder, does this is
• 15:40
  Speaker 2: your sense that we have a continued divergence here of
• 15:42
  Speaker 2: the walmarts versus the mom and pop retail stores are
• 15:46
  Speaker 2: who are able to absorb these things.
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  Speaker 5: The smaller businesses just don't have the leverage, They don't
• 15:50
  Speaker 5: have the ability to you know, jump ahead on supply
• 15:55
  Speaker 5: lines and things like that. And they also, more often
• 15:57
  Speaker 5: than not, we're not able to import goods before the
• 16:00
  Speaker 5: tariffs took effect. So the larger retailers were able to
• 16:03
  Speaker 5: bring goods in warehouse them state side, and then you
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  Speaker 5: don't have you aren't subject to those increased tariffs. Now,
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  Speaker 5: in the next few months, when the stock that is
• 16:13
  Speaker 5: held state side dwindles, that's when we're going to start
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  Speaker 5: getting concerned.
• 16:17
  Speaker 2: Emory Conti writes the Ask Wirecutter column, and join us
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  Speaker 2: today to talk about price increases on select items across
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  Speaker 2: the Wirecutter track list. Thanks so much for joining, Sam Marie,
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  Speaker 2: appreciate it and we'll talk to you again soon.
• 16:29
  Speaker 5: Such a pleasure, Thanks so much.
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• 17:22
  Speaker 2: Yeah, the the question mark of where and when tariff
• 17:27
  Speaker 2: effects starts showing up really an open question. It's it's
• 17:32
  Speaker 2: really really important. It's it's pretty critically important to where
• 17:35
  Speaker 2: interest rates go. Uh, it's critically important to where business
• 17:39
  Speaker 2: profits go. And I think the point that I take
• 17:42
  Speaker 2: from that interview is most retailers right now are trying
• 17:47
  Speaker 2: to find anything they can do to absorb it, which
• 17:50
  Speaker 2: means it shows up for the time being. It shows
• 17:53
  Speaker 2: up in one of two places. One would be profit
• 17:55
  Speaker 2: margins of us, you know, retailers who are importing goods.
• 18:00
  Speaker 2: We would have a tougher time seeing. The second place
• 18:03
  Speaker 2: that could show up is profit margins in the foreign
• 18:07
  Speaker 2: manufacturers of goods. And it's not as though we get
• 18:10
  Speaker 2: great reads on you know, profitability of Chinese manufacturers. I
• 18:14
  Speaker 2: suspect that if you're Walmart, you're having some success in
• 18:18
  Speaker 2: forcing those Chinese suppliers to pay for the tariff in
• 18:21
  Speaker 2: some way, shape or form, right, just you know, hey,
• 18:23
  Speaker 2: you got to lower your prices so that we can
• 18:25
  Speaker 2: maintain ours or well, you know, go elsewhere, or decrease volumes,
• 18:30
  Speaker 2: you know, going elsewhere. It might not be that credible
• 18:33
  Speaker 2: of a threat. Quite honestly, when it comes to some
• 18:35
  Speaker 2: of the stuff in China, No, Walmart has a better
• 18:37
  Speaker 2: chance of pulling them off. Every small business agreed. So
• 18:41
  Speaker 2: you know, I don't know where you see it in
• 18:43
  Speaker 2: Walmart's earnings, but you know, go take a look over
• 18:46
  Speaker 2: the next couple of quarters at Dick Sporting Goods and
• 18:48
  Speaker 2: these other retailers that just don't have the Walmart pricing
• 18:51
  Speaker 2: power or the cost Go pricing power. It'll be fascinating
• 18:55
  Speaker 2: to see where this starts to show up. But I
• 18:57
  Speaker 2: tend to sense that once that damn breaks.
• 19:02
  Speaker 4: Everybody's gonna pay's gonna from her.
• 19:05
  Speaker 2: And you saw that happen briefly, right, Amazon said they
• 19:07
  Speaker 2: were going ahead than Walmart did and they kind of
• 19:09
  Speaker 2: all backed away from pressure. And so does that come
• 19:14
  Speaker 2: back is. If it's going to happen, it's going to
• 19:17
  Speaker 2: probably be July August time frame because that been absorbing
• 19:20
  Speaker 2: for a while. So will we start seeing it show
• 19:23
  Speaker 2: up in the data, which we really haven't to this point.
• 19:26
  Speaker 3: Quick break.
• 19:27
  Speaker 2: When we come back, we'll have the trivia winner, and
• 19:29
  Speaker 2: I want to talk a bit more about Zillow when
• 19:31
  Speaker 2: we return.
• 19:41
  Speaker 1: Bringing the latest financial news straight to your radio. Every day,
• 19:46
  Speaker 1: it's the Financial Exchange on the Financial Exchange Radio Network.
• 19:51
  Speaker 1: Time now for Wall Street. Watch a complete look at
• 19:55
  Speaker 1: what's moving market so far today right here on the
• 19:58
  Speaker 1: Financial Exchange Radio work.
• 20:00
  Speaker 6: Markets are rallying after President Trump proclaimed to cease fire
• 20:04
  Speaker 6: between Israel and Iran. Now in effect, i'llbeat on shaky
• 20:07
  Speaker 6: ground overnight. Wall Street also monitoring testimony from FED Chairman
• 20:11
  Speaker 6: Jerome Powell before Congress, occurring right now. In prepared remarks,
• 20:16
  Speaker 6: Powell said the Central Bank remains focused on making sure
• 20:19
  Speaker 6: any one time increases in prices from higher tariffs won't
• 20:23
  Speaker 6: turn into an ongoing inflation problem. Right now, the Dow
• 20:28
  Speaker 6: is up by one percent, or four hundred and twenty points.
• 20:31
  Speaker 6: SMP five hundred also up nearly one percent or fifty
• 20:34
  Speaker 6: seven points in the Nasdaq is up one point three
• 20:37
  Speaker 6: percent now or two hundred and sixty three points of
• 20:39
  Speaker 6: Rustle two thousand, also up by one point three percent.
• 20:43
  Speaker 6: Ten year Treasure Reel down by one basis point now
• 20:45
  Speaker 6: a four point three zero percent, and crude oil down
• 20:49
  Speaker 6: nearly five percent lowered today trading just above sixty five
• 20:52
  Speaker 6: dollars of barrel. With today's dropping oil prices, Exon Mobile,
• 20:57
  Speaker 6: Occidental Petroleum, and other energy SAW stocks are seeing losses
• 21:01
  Speaker 6: on the day. Defense stocks including Lockheed, Martin and RTX
• 21:05
  Speaker 6: are seeing losses as well. Several airlines, including United American
• 21:10
  Speaker 6: Delta and Jet Blue, are seeing gains on the day
• 21:12
  Speaker 6: of anywhere between two and five percent as a result
• 21:16
  Speaker 6: of the drop in oil prices. Meanwhile, home builder kb's
• 21:20
  Speaker 6: home stock is up by six tenths of one percent
• 21:23
  Speaker 6: after the company posted lower profit and sales in the
• 21:26
  Speaker 6: previous quarter, resulting in another cut to its outlook after
• 21:30
  Speaker 6: rallying eight percent yesterday on the heels of its robotaxi
• 21:34
  Speaker 6: launch in Austin over the weekend, Tesla shares are pulling
• 21:38
  Speaker 6: back by about one percent so far today, and delivery
• 21:41
  Speaker 6: Giant FedEx, sometimes seen as an economic bell, weather will
• 21:45
  Speaker 6: report earnings after today's closing bell. I'm Tucker Silvan. That
• 21:50
  Speaker 6: is Wall Street Watch. And the trivia question we asked
• 21:52
  Speaker 6: in the prior segment was how many wives did King
• 21:55
  Speaker 6: Henry the Eighth have? That would be six. David from Hudson,
• 22:01
  Speaker 6: mass was our winner today, taking home a Financial Exchange
• 22:04
  Speaker 6: Show t shirt. Congrats to David, and we play trivia
• 22:07
  Speaker 6: every day here in the Financial Exchange See complete contest
• 22:10
  Speaker 6: rules at Financial Exchange Show dot com.
• 22:13
  Speaker 3: I was speaking briefly about Zillo.
• 22:15
  Speaker 2: So everybody's familiar with Zlo, the most popular real estate
• 22:19
  Speaker 2: listing app and site out there.
• 22:21
  Speaker 3: They've been around forever. They do the same thing as redfin.
• 22:24
  Speaker 2: Truly Realtor dot com as the National Association National Association
• 22:29
  Speaker 2: of Realtors response to Zilo. But they were the first
• 22:32
  Speaker 2: of the market, and you know, while they've had some
• 22:35
  Speaker 2: missteps and other businesses, they remain dominant in the real
• 22:38
  Speaker 2: estate listing area. They are facing a lawsuit from Compass,
• 22:43
  Speaker 2: one of the largest real estate brokerages. Here's the deal.
• 22:47
  Speaker 2: Zillo basically says, if you are going to offer a
• 22:52
  Speaker 2: home for sale, then we Zilo, need to be able
• 22:56
  Speaker 2: to get the listing within twenty four hours and if
• 22:58
  Speaker 2: we don't, we're going to to permanently blacklist you mean
• 23:02
  Speaker 2: that listing for that home. Compass is trying to attract
• 23:06
  Speaker 2: their own traffic to their own websites by saying, hey,
• 23:10
  Speaker 2: we are going to give you a you know, free
• 23:13
  Speaker 2: look at a prelisting before it hits the market that
• 23:16
  Speaker 2: you can exclusively get at Compass.
• 23:18
  Speaker 3: Zillo's response is too bad.
• 23:20
  Speaker 2: If you do that, we're not going to list you
• 23:21
  Speaker 2: on the most popular site in the world when it
• 23:25
  Speaker 2: comes to real estate listings. So Compass is suing them,
• 23:27
  Speaker 2: saying they're acting anti competitively.
• 23:31
  Speaker 3: Which they are.
• 23:32
  Speaker 2: I mean that this isn't you know, anti competitive, But
• 23:36
  Speaker 2: I I don't know. This type of suit to me
• 23:41
  Speaker 2: does not seem like it would have merit depending on
• 23:44
  Speaker 2: the source you look at. Zillo looks to have somewhere
• 23:47
  Speaker 2: between sixty and seventy percent market share. If it's a
• 23:52
  Speaker 2: real problem, I'll just go to redfin right right. There's
• 23:57
  Speaker 2: nothing requiring me to look at the list here. All
• 24:00
  Speaker 2: of the same information is available everywhere. If zillorealtor dot com, redfinn,
• 24:05
  Speaker 2: and Trulyia all collude to say no, Compass, you're out
• 24:08
  Speaker 2: and we're not showing you. That's one thing, But you're
• 24:10
  Speaker 2: at sixty percent market share, there's no barriers to entry.
• 24:15
  Speaker 2: I can go elsewhere. I don't know that Compass has
• 24:19
  Speaker 2: much of a light to stand like. Do I wish
• 24:21
  Speaker 2: Zillo didn't do that. Yeah, sure, but at this market
• 24:24
  Speaker 2: share that they're seeing, I don't see it as a
• 24:25
  Speaker 2: real problem.
• 24:26
  Speaker 4: I don't think it's a real problem, and I don't
• 24:28
  Speaker 4: think Zillo should face this is there. They're entitled to
• 24:34
  Speaker 4: do this. I mean, if you want to kind of
• 24:36
  Speaker 4: skirt our system to try to drive traffic to your site,
• 24:38
  Speaker 4: then we're going to make it more difficult, if not
• 24:40
  Speaker 4: impossible in this case, to list on our site. The
• 24:43
  Speaker 4: one caveat would be that Redfinn did team up with
• 24:45
  Speaker 4: them on this endeavor. They weren't reported, they didn't comment
• 24:50
  Speaker 4: on their decision, but they mirrored Zilla's decision within a
• 24:53
  Speaker 4: pretty short span of time. But ultimately we've all done it.
• 24:58
  Speaker 4: If you search an address or listing, the first four
• 25:02
  Speaker 4: that pop up our redfin, Zillows, realtor dot com. So
• 25:08
  Speaker 4: it doesn't seem like it's a huge prohibitive problem that
• 25:11
  Speaker 4: is hurting consumers, And that's what it comes back to. Ultimately,
• 25:14
  Speaker 4: you have to prove that this is damaging buyer's ability
• 25:17
  Speaker 4: to get access to information.
• 25:19
  Speaker 2: Or seller's ability to sell that that's where you've got
• 25:21
  Speaker 2: more of a compelling case here.
• 25:22
  Speaker 3: Yeah, but yeah, I don't know.
• 25:23
  Speaker 2: I just maybe I'm just numb to it because when
• 25:26
  Speaker 2: I look at, for instance, what Apple does in their
• 25:29
  Speaker 2: you know, walled off platforms for apps.
• 25:33
  Speaker 3: When I look at what Google does in search.
• 25:36
  Speaker 2: And granted they're being in the process of being you know,
• 25:38
  Speaker 2: sued for monopoly concerns there, I just look at this
• 25:41
  Speaker 2: and say, this is so frivolous, This is not this
• 25:44
  Speaker 2: is not meaningful.
• 25:45
  Speaker 3: As far as I can tell.
• 25:48
  Speaker 6: Summer in New England is upon us. The kids are
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  Speaker 6: home from school, the sun doesn't set until after eight,
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• 26:47
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• 26:52
  Speaker 2: We have just two fantastic pieces that have to be
• 26:54
  Speaker 2: combined here. One is an op ed from Aaron Lowry
• 27:00
  Speaker 2: and Bloomberg quote gen z has virtually no excuse for
• 27:04
  Speaker 2: financial literacy. Next New York Times, No, a TikTok trick
• 27:08
  Speaker 2: won't erase student loan debt. The TikTok tricks to erase
• 27:12
  Speaker 2: student loan debt is apparently to contest it on your
• 27:14
  Speaker 2: credit report, at which point the credit agency may or
• 27:18
  Speaker 2: may not remove it from your credit report. By the way,
• 27:20
  Speaker 2: that doesn't absolve you from making your payments on your
• 27:22
  Speaker 2: student loans. That's stupid. Don't follow that TikTok advice.
• 27:28
  Speaker 3: Aeron.
• 27:29
  Speaker 2: Go on YouTube and search dumbest TikTok financial advice and
• 27:34
  Speaker 2: you will have plenty of reasons why. I think gen
• 27:36
  Speaker 2: Z has many excuses for financial literacy.
• 27:40
  Speaker 3: They are plagued by some.
• 27:42
  Speaker 2: Of the worst disinformation that we have seen on the internet.
• 27:46
  Speaker 3: Ever.
• 27:46
  Speaker 2: I was just watching one of these clips on YouTube
• 27:49
  Speaker 2: because I don't have TikTok on a clip of just
• 27:52
  Speaker 2: the worst financial advice available on there, and it included
• 27:56
  Speaker 2: plenty of different things like how to start your own
• 27:59
  Speaker 2: pyramid scheme.
• 28:01
  Speaker 3: I'm summarizing here.
• 28:02
  Speaker 2: They didn't describe it as a pyramid scheme, but you know,
• 28:05
  Speaker 2: this is how you can get all these other people
• 28:07
  Speaker 2: to work for you so that you're earning five hundred
• 28:08
  Speaker 2: thousand to a million dollars a month and that's going
• 28:10
  Speaker 2: to make you a billionaire because somehow I don't know
• 28:12
  Speaker 2: how to do math. There was another one of why
• 28:15
  Speaker 2: you should never pay off your mortgage and just instead
• 28:18
  Speaker 2: take money out of your home to buy more homes
• 28:20
  Speaker 2: for investment purposes. Never seen that create a problem in
• 28:24
  Speaker 2: the past, so I think it is laughable to blame
• 28:29
  Speaker 2: gen zers for not understanding how to manage their finances
• 28:33
  Speaker 2: when they are a almost never educated on how to
• 28:38
  Speaker 2: handle their finances in schools. I think New Hampshire might
• 28:40
  Speaker 2: be the only state in the country that actually has
• 28:43
  Speaker 2: financial literacy as a course requirement to graduate high school.
• 28:47
  Speaker 2: And b are flooded with such garbage information all over
• 28:53
  Speaker 2: TikTok that is not controlled or regulated any meaningful way.
• 28:57
  Speaker 2: Of course, they have no idea how to handle their finances.
• 28:59
  Speaker 2: They're being told by TikTok influencers that this is how
• 29:01
  Speaker 2: you buy one hundred thousand dollars watch running a Ponzi scheme.
• 29:05
  Speaker 4: I was really upset. The biggest hill that I want
• 29:08
  Speaker 4: to die on is this idea that in high school
• 29:10
  Speaker 4: curriculums you should have a financial literacy course. There is
• 29:14
  Speaker 4: so much useful, useless information that we learn during school
• 29:19
  Speaker 4: in subjects that is never going to apply to our
• 29:22
  Speaker 4: day to day lives. And I always say to people
• 29:24
  Speaker 4: over and over again, most everyone is going to own
• 29:27
  Speaker 4: a home, Most everyone is going to be eligible for
• 29:29
  Speaker 4: a retirement plan, whatever job they work, whether they're in
• 29:32
  Speaker 4: theater or finance or in manufacturing. And the fact that
• 29:37
  Speaker 4: that isn't part of coursework to me, makes absolutely no sense.
• 29:40
  Speaker 4: It seems like the easiest thing to be able to
• 29:43
  Speaker 4: add in there. And her piece that, oh, parents should
• 29:45
  Speaker 4: just teach you fantas literacy. Yeah they should, but not
• 29:49
  Speaker 4: every parent is the most financial. Yeah, oh and most.
• 29:53
  Speaker 2: There's plenty of We don't rely on parents to teach
• 29:55
  Speaker 2: their kids US history or it's trigonometry.
• 29:59
  Speaker 3: Come on, So.
• 30:00
  Speaker 4: That that was infuriing to me. It's just dismissing this idea,
• 30:03
  Speaker 4: not to say it's gonna be easy to implement, but
• 30:05
  Speaker 4: I've always been a proponent of doing that. Her counter
• 30:09
  Speaker 4: argument is that there are plenty of accessible, good sources
• 30:13
  Speaker 4: of information out there, but I would agree with you
• 30:15
  Speaker 4: there's just as many bad ones out there depending.
• 30:18
  Speaker 3: So this is actually interesting.
• 30:19
  Speaker 2: Paul as the spouse of a teacher, as the husband
• 30:23
  Speaker 2: of a teacher, which teacher are you going to fire
• 30:25
  Speaker 2: in order to make room for the financial literacy course.
• 30:29
  Speaker 4: I was trying to think of a course in high
• 30:31
  Speaker 4: school that should just get dumped.
• 30:34
  Speaker 3: All of Paul's previous high school teachers. They're tuning in
• 30:36
  Speaker 3: right now.
• 30:38
  Speaker 4: Geometry doesn't seem like it has geometry. I mean, what
• 30:44
  Speaker 4: he looks like home ech are like, you know, cooking,
• 30:47
  Speaker 4: I don't know, it's like totally.
• 30:49
  Speaker 3: All right, all right, taking a stand? I like it.
• 30:51
  Speaker 4: No, you got to take a stand too. What course
• 30:52
  Speaker 4: are you dumping all math? Oh? God? I mean I
• 30:56
  Speaker 4: never used algebra like at all?
• 30:58
  Speaker 2: No, I I have a tough time with that. I
• 31:01
  Speaker 2: would agree. I suppose if I have to take a
• 31:04
  Speaker 2: look at one of them, maybe home EC could could
• 31:07
  Speaker 2: be taken a look at, although chemist to develop a
• 31:12
  Speaker 2: passion for cooking and me.
• 31:13
  Speaker 3: So I struggle with, don't you what.
• 31:14
  Speaker 4: Kind of comes up in like discrete ways from time
• 31:17
  Speaker 4: to time?
• 31:17
  Speaker 3: You need algebra? I would say, geome calculased.
• 31:21
  Speaker 4: Calculus absolutely not Yeah, us calculus.
• 31:24
  Speaker 2: I think you could make calculus perhaps not a high
• 31:27
  Speaker 2: school requirement. I get that, given that financial calculators can
• 31:32
  Speaker 2: pretty much do all of calculus for you fairly quickly
• 31:34
  Speaker 2: these days. Although it is pretty fundamental to a lot
• 31:37
  Speaker 2: of careers. So I struggle with that.
• 31:40
  Speaker 4: Text us at six one seven three six two one
• 31:43
  Speaker 4: three eighty five? What the most useless use I keep saying,
• 31:46
  Speaker 4: useless high school subject? You feel is.
• 31:49
  Speaker 2: Again HOMECK is in a graduation requirement there, So I'm
• 31:52
  Speaker 2: not sure I'm gonna I'm not sure that that qualifies
• 31:54
  Speaker 2: on the list a quick break. When we come back,
• 31:57
  Speaker 2: hopefully you'll text us the most useless high school requirement
• 32:00
  Speaker 2: and then we'll be doing a little bit of stack roulette.
• 32:04
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• 33:18
  Speaker 3: Time for a bit of stack roulette here, What do
• 33:20
  Speaker 3: you have for us? Paul?
• 33:21
  Speaker 4: I want to talk a little bit about Tesla's robotaxi
• 33:24
  Speaker 4: in particular, just comparing in contrasting it a little bit
• 33:28
  Speaker 4: to Waymos services offered by Alphabet or Google. Obviously, Tucker
• 33:32
  Speaker 4: mentioned earlier in Wall Street Watch Tesla stock had rallied
• 33:35
  Speaker 4: about seven percent yesterday on the news that it had
• 33:39
  Speaker 4: rolled out its robo taxi service in Austin, Texas, with
• 33:43
  Speaker 4: ten to twenty of its Model Y vehicles over the
• 33:45
  Speaker 4: weekend equipped with driverless technology. And there was a lot
• 33:49
  Speaker 4: of publicity and sort of hubbub about these robotaxi rides.
• 33:54
  Speaker 4: But Mike, you've already shared the show before that you've
• 33:56
  Speaker 4: been in Waymos car. You know, they've driven teventy one
• 34:00
  Speaker 4: million miles around the country. They've had a fivefold increase
• 34:04
  Speaker 4: in terms of their their ridership. They're up to about
• 34:06
  Speaker 4: a quarter million. I believe it was riders a week
• 34:09
  Speaker 4: that they're they're servicing. They're spread out amongst several different
• 34:13
  Speaker 4: cities in Atlanta. Now they're in Atlanta, and and there's
• 34:17
  Speaker 4: so much hype and promise about Tesla's robotacks who's been
• 34:22
  Speaker 4: development for years, just had ten or eleven rides it
• 34:25
  Speaker 4: did over the weekend, and all of a sudden, Tesla's
• 34:27
  Speaker 4: stock is and there's already some issues that there's some
• 34:31
  Speaker 4: issues that have arisen with it.
• 34:32
  Speaker 2: By the way, these driverless cars have a monitor sitting
• 34:35
  Speaker 2: in the passenger seat because they're that bad at it.
• 34:38
  Speaker 4: Yeah, So I just, I mean, this is the story
• 34:41
  Speaker 4: of Tesla in general, is just it's always been investors
• 34:45
  Speaker 4: belief that its next iteration or innovation is going to
• 34:49
  Speaker 4: be the end all be all, just because of the
• 34:52
  Speaker 4: way that they were able to initially create an electric
• 34:56
  Speaker 4: vehicle that was you know, well manufactured and well put together.
• 35:00
  Speaker 4: But I just it's hard to sit back and understand
• 35:03
  Speaker 4: why we have such amount of publicity and hype around
• 35:07
  Speaker 4: the ROBOTAXI when Weaimo's been doing this day in and
• 35:10
  Speaker 4: day out and actually has a reasonable path to commercial viable.
• 35:15
  Speaker 4: I mean, they're already out there. Yeah, you doing rides
• 35:18
  Speaker 4: every single week.
• 35:18
  Speaker 2: And the only question is why every self driving car
• 35:21
  Speaker 2: also needs to be an electric vehicle, but I guess
• 35:24
  Speaker 2: that's neither here nor there. But weimo could probably be
• 35:26
  Speaker 2: profitable today if they just put these cameras on civics
• 35:30
  Speaker 2: instead of you know, eighty thousand dollars Jaguars or whatever
• 35:32
  Speaker 2: they cost. But nonetheless, yeah, Tesla's rolled this stuff out
• 35:35
  Speaker 2: in Austin. They're already being asked a few questions based on,
• 35:39
  Speaker 2: you know, videos that surfaced of them not doing a
• 35:42
  Speaker 2: very good job navigating Austin's seat streets, stopping in the
• 35:46
  Speaker 2: middle of traffic very sharply, you know, wandering through lanes.
• 35:50
  Speaker 3: So we'll see how this rollout goes for Tesla.
• 35:52
  Speaker 2: But yeah, you're right, the stock got a big bounce
• 35:54
  Speaker 2: on the announcement that they are moving, and Google's hasn't.
• 35:57
  Speaker 2: But to be fair, this isn't crucial to Google's business,
• 36:01
  Speaker 2: and they are facing some or Alphabet rather, the parent
• 36:05
  Speaker 2: company of Google and way Mo. They've got some other
• 36:08
  Speaker 2: concerns going on when it comes to their core business
• 36:10
  Speaker 2: and anti trust lawsuits that they've been facing. So I'm
• 36:12
  Speaker 2: not exactly surprised that their success in self driving vehicles
• 36:16
  Speaker 2: hasn't driven the share price higher.
• 36:18
  Speaker 4: Yeah, I mean, it's a blip on the radar for alphabet.
• 36:21
  Speaker 2: I want to talk about a new AI generated ad
• 36:25
  Speaker 2: from a company that I'd never heard of before, gambling
• 36:28
  Speaker 2: website Calshi. If you haven't seen it, go check it out.
• 36:32
  Speaker 3: It is.
• 36:34
  Speaker 2: I get impressed by ads. It's probably the only reason
• 36:38
  Speaker 2: that I'm a member of Dollar Shave Club. The first
• 36:41
  Speaker 2: ad that they put out, like a decade ago, that
• 36:43
  Speaker 2: I saw that I still use the razors now. This
• 36:47
  Speaker 2: is an entirely AI generated ad. It is a good ad.
• 36:51
  Speaker 2: I'm gonna take a step back like it is a
• 36:52
  Speaker 2: catchy ad that would convince me to go check out
• 36:55
  Speaker 2: the website.
• 36:56
  Speaker 3: The website itself.
• 37:00
  Speaker 2: I don't know what to do about this, but we
• 37:01
  Speaker 2: have some societal problems this betting gambling website. I can
• 37:05
  Speaker 2: currently bet on who wins the Democratic New York City mayor.
• 37:10
  Speaker 2: I can bet on where the S and P five
• 37:13
  Speaker 2: hundred lands this year. I can bet on what will
• 37:18
  Speaker 2: Trump say at his next biledal with a foreign leader.
• 37:23
  Speaker 2: I can bet on the high temperatures in LA today.
• 37:28
  Speaker 3: This is.
• 37:30
  Speaker 2: I'm not sure it should be illegal. I have a
• 37:33
  Speaker 2: problem with that. I'm generally in favor of legalizing these
• 37:36
  Speaker 2: sorts of things. But I sense that we are going
• 37:41
  Speaker 2: to be talking about gambling addiction in this country within
• 37:44
  Speaker 2: the next few years in the ways that we have
• 37:47
  Speaker 2: talked about other serious problems in this country, based on
• 37:51
  Speaker 2: what we are seeing with especially younger men, falling into
• 37:55
  Speaker 2: this well.
• 37:55
  Speaker 4: I think the problem with this company is that they're
• 37:57
  Speaker 4: trying to say that they're not a gambling company, which
• 38:00
  Speaker 4: it's blasphemy. If you look at the website, they're saying.
• 38:04
  Speaker 2: A prediction site, you're gambling. Let's take a quick break
• 38:09
  Speaker 2: for the rest of the day. Markets remains strongly in
• 38:12
  Speaker 2: positive territory, closing in on or exceeding one percent across
• 38:15
  Speaker 2: all three major indices. Have a great, cool afternoon, everybody.
• 38:20
  Speaker 2: We'll be back at it tomorrow