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Mark interviews John Carney, Breitbart Business News editor. · The Mark Simone Show

• 0:00
  Speaker 1: Welcome back to The Mark Simone Show. 710WOR.
• 0:04
  Speaker 2: Well, we bring you the smartest people around. John Carney,
• 0:11
  Speaker 2: the great business writer. In fact, you got to sign
• 0:15
  Speaker 2: up and subscribe to the Breitbart Business Digest. He puts
• 0:19
  Speaker 2: that together every day. It's the first thing Larry Kudlow
• 0:23
  Speaker 2: says he reads in the morning. Scott Besant has said
• 0:25
  Speaker 2: the same thing. It's free. It'll come right to your email.
• 0:28
  Speaker 2: Just go to Breitbart.com and where it says newsletters, sign
• 0:32
  Speaker 2: up for the Breitbart Business Digest and you'll get it.
• 0:35
  Speaker 2: John Carney, how are you doing?
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  Speaker 1: Doing very well, Bart. Thanks for having me on.
• 0:40
  Speaker 2: Always great to have you. Explain this G20. Scott Besson
• 0:45
  Speaker 2: is speaking there. Our friend Larry Kudlow is there right now.
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  Speaker 2: What goes on at this G20?
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  Speaker 1: That's a great question.
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  Speaker 3: So it is a meeting of the finance ministers and
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  Speaker 3: central bankers of the biggest 20 economies in the world.
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  Speaker 3: So the big developed economies. It's actually a little bit
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  Speaker 3: of a misnomer. I understand they actually have 25 countries there.
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  Speaker 3: But they all get together and talk about what they
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  Speaker 3: think is working for their economy, what they think isn't.
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  Speaker 3: This one is particularly interesting. Because basically we have team
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  Speaker 3: Trump there and the rest and part, some of the
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  Speaker 3: governments around the world, Japan are, are on, I'll call
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  Speaker 3: them also on team Trump. While a lot of the
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  Speaker 3: other governments are sort of have become, they, they hate
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  Speaker 3: Donald Trump a lot and they.
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  Speaker 1: Sort of hate America.
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  Speaker 3: Uh, so there's a little bit of a contest there between,
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  Speaker 3: you know, our guys trying to say, Hey, look, our
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  Speaker 3: economy is actually doing pretty well.
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  Speaker 1: Your economy is struggling.
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  Speaker 3: Maybe you should stop being so angry at us and
• 2:01
  Speaker 3: start paying attention to what we're doing and getting with
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  Speaker 3: the program.
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  Speaker 2: Well, maybe they're watching CNN or MSNBC and all they
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  Speaker 2: hear is our economy is in shambles, which is just
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  Speaker 2: once again, I know I always ask you this, but
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  Speaker 2: if you follow the fake news, our economy is a disaster.
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  Speaker 2: What's the truth?
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  Speaker 3: Yeah, the economy is actually doing very well.
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  Speaker 1: We actually got some really.
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  Speaker 3: Pretty great news in this morning, job openings, which is
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  Speaker 3: how many jobs employers have put out help wanted signs.
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  Speaker 3: We don't really put out that many help wanted signs anymore.
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  Speaker 3: It's mostly digital, but they're looking to hire fill spots.
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  Speaker 3: So the vacant jobs went up from around 7.2 million
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  Speaker 3: to 7.3 million. In manufacturing in particular, we saw a
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  Speaker 3: very big boost from around 501,000 to 580,000 job openings.
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  Speaker 3: In durable goods, which is like core manufacturing, making stuff
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  Speaker 3: that's going to last three months or more, it went
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  Speaker 3: from 353,000. to 429,000. That's a really good month. And
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  Speaker 3: we're up a lot.
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  Speaker 1: From a year ago. A year ago, it was only 255,000.
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  Speaker 3: So in other.
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  Speaker 1: Words, durable goods manufacturing is booming.
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  Speaker 3: If anything, they killed enough people. The actual higher number
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  Speaker 3: actually fell a bit, in part because June was really
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  Speaker 3: strong for hiring. But one of the things we're seeing
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  Speaker 3: is the economy is doing so well that employers are, one.
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  Speaker 1: Of their big problems is just.
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  Speaker 3: Trying to find enough people. They have to compete with
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  Speaker 3: each other. When you have a high unemployment rate or
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  Speaker 3: a very rapidly growing labor force, and usually if you
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  Speaker 3: have one, you've got the other, then you'll see hires
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  Speaker 3: going up across every sector. Right now, If one sector, manufacturing,
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  Speaker 3: hires a bunch of people, they're probably actually coming out
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  Speaker 3: of the other sector.
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  Speaker 1: That's good. That actually is good for workers.
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  Speaker 3: Because what it means is that you're getting better pay,
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  Speaker 3: better benefits, a better deal, right? People don't move jobs
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  Speaker 3: because things– to get a worse job, they tend to
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  Speaker 3: move jobs to get a better job. So having employers
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  Speaker 3: have to compete for workers is exactly what you want. Right.
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  Speaker 2: Hey, so as AI takes over slowly but surely, we're
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  Speaker 2: not seeing it cause unemployment. In fact, aren't we seeing
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  Speaker 2: the opposite?
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  Speaker 1: That's right.
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  Speaker 3: AI, there's not really any sign of a big downturn
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  Speaker 3: in AI.
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  Speaker 1: I look through.
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  Speaker 3: Even information technology, which is a lot of people said, well,
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  Speaker 3: maybe a lot of the.
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  Speaker 1: Programmers will lose their job to AI.
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  Speaker 3: I don't know. They're actually looking to hire, in July,
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  Speaker 3: they were looking to hire 96,000 workers, which was more
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  Speaker 3: than the previous month, up from 89,000. So we're not
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  Speaker 3: seeing AI displacement there. We're not seeing, in finance, also
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  Speaker 3: 401,000 openings. So we're not seeing AI displacement there. There's
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  Speaker 3: just not a lot of signs of that. Now, maybe
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  Speaker 3: that'll come, right?
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  Speaker 1: We're in the build-out phase of AI.
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  Speaker 3: And I think some of the manufacturing hiring that's been
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  Speaker 3: going on is actually hiring people to help us build
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  Speaker 3: data centers, to help us build the materials that go
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  Speaker 3: into data centers.
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  Speaker 1: But it's broader than that.
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  Speaker 3: It's not just AI. We're actually seeing a broad expansion. Maybe,
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  Speaker 3: you know, years down, years from now, we will see,
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  Speaker 3: you know, productivity get so good that employers can start
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  Speaker 3: cutting back on some.
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  Speaker 1: Of their workforce.
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  Speaker 3: We're definitely not seeing that in the numbers right now.
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  Speaker 2: Oh, that's good. Hey, John Carney, Kevin Warsh, the Fed,
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  Speaker 2: hinting at the possible rate increase. Now, there are a
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  Speaker 2: lot of people out there when they hear rate increase,
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  Speaker 2: mortgage rates are going to go up. That's not the truth,
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  Speaker 2: is it?
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  Speaker 3: No, it's not necessarily the truth, because the Fed actually only,
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  Speaker 3: when it hikes, it affects the very short-term rates. The
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  Speaker 3: long-term rates have actually already gone up a little bit,
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  Speaker 3: and that's what mortgages are based on. They're basically based
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  Speaker 3: on the 10-year treasury, in part because if you are
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  Speaker 3: an investor, you can buy a mortgage-backed security account. Yes,
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  Speaker 3: I know we had a financial crisis and we had
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  Speaker 3: a lot of problems with mortgage-backed securities, but they're typically
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  Speaker 3: actually a pretty– particularly when they are backed by Fannie
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  Speaker 3: Mae and Freddie Mac, which are government-controlled agencies.
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  Speaker 1: They are pretty safe investments.
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  Speaker 3: When people are going to buy a mortgage-backed security, which
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  Speaker 3: then actually helps keep down mortgage rates, they look to
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  Speaker 3: what the treasury rate is because that's the safest thing
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  Speaker 3: you could possibly buy. So we're seeing long-term treasury rates
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  Speaker 3: have gone up a little, but if the Fed hikes,
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  Speaker 3: the long-term rates won't necessarily go up further. They may
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  Speaker 3: actually come down a little bit because people will be
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  Speaker 3: less worried about inflation and hikes later on. So the
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  Speaker 3: idea is If you hike a little bit now, maybe
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  Speaker 3: you don't have to hike as much if inflation gets bad. Remember,
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  Speaker 3: when the Fed hiked a lot, like all at once
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  Speaker 3: back in 2022, that was because they let inflation get
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  Speaker 3: out of control. If you keep a lid on inflation,
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  Speaker 3: you actually don't need as many hikes.
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  Speaker 2: Wow. That's fascinating. So, hey, we only got a minute left.
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  Speaker 2: The president meets with the heads of the oil companies
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  Speaker 2: this afternoon. What should he tell them about prices?
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  Speaker 3: Yeah, well, so he wants them to really ramp up production.
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  Speaker 3: The problem is, and normally that's what they do when
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  Speaker 3: prices go up, right? They ramp up production and then
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  Speaker 3: that brings down prices. The problem is, because everybody knows
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  Speaker 3: that we have plenty of oil supply, they're hesitant to
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  Speaker 3: ramp up production because they say, well, look, If we
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  Speaker 3: increase production a lot, but then you solve the problem
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  Speaker 3: in the Strait of Hormuz, the price of oil is
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  Speaker 3: going to crash.
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  Speaker 1: And we'll have a glut.
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  Speaker 3: So he's going to have to debate with them over
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  Speaker 3: what to do about this. They're going to have to
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  Speaker 3: tell him, Mr. President, if we drill a bunch of
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  Speaker 3: new holes and we need oil to be $ 70 a
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  Speaker 3: barrel for that one to make money, but you've solved
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  Speaker 3: the problem in Iran- we could lose money on these things.
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  Speaker 3: So that's what's holding it back. It's unfortunate when you
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  Speaker 3: get a temporary rise like this, it means that supply
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  Speaker 3: doesn't necessarily expand to meet it.
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  Speaker 2: Well, great stuff, John Carney. Great as always. Now, you
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  Speaker 2: should subscribe to the Breitbart Business Digest. It's the smartest
• 9:34
  Speaker 2: thing you can read every day when it comes to
• 9:35
  Speaker 2: this stuff. And just go to breitbart.com where it says newsletters.
• 9:40
  Speaker 2: Click on that. And then click on Breitbart Business Digest.
• 9:43
  Speaker 2: Sign up. It's free. It comes to your email every day.
• 9:47
  Speaker 2: John Carney, keep up the good work. We'll talk to
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  Speaker 2: you again soon.
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  Speaker 3: Thanks a lot for having.
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  Speaker 1: Me, Mark.
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  Speaker 2: All right. Take care. Hey, we got coming up at noon.
• 9:57
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• 9:59
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• 10:02
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• 10:13
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• 10:18
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