Latest / The Financial Exchange Show / Will Big Tech earnings ease impact from DeepSeek?

Transcript

Will Big Tech earnings ease impact from DeepSeek? · The Financial Exchange Show

• 0:00
  Speaker 1: The Financial Exchange is produced by Money Matters Radio and
• 0:03
  Speaker 1: is hosted by employees of the Armstrong Advisory Group, a
• 0:05
  Speaker 1: registered investment advisor. All opinions expressed are solely those of
• 0:09
  Speaker 1: the hosts. Do not reflect the opinions of Armstrong Advisory
• 0:11
  Speaker 1: or anyone else. Investments can lose money. This program does
• 0:14
  Speaker 1: not offer any specific financial or investment advice. Please consult
• 0:17
  Speaker 1: your own financial, tax, and estate planning advisors before making
• 0:20
  Speaker 1: any investment decisions. Armstrong Advisory and the advertisers heard on
• 0:23
  Speaker 1: this program do not endorse each other or their services.
• 0:26
  Speaker 1: Armstrong and Money Matters Radio do not compensate each other
• 0:28
  Speaker 1: for referrals and are not affiliated. This is the Financial
• 0:34
  Speaker 1: Exchange with Chuck Zada and Mark fan Daddy, your exclusive
• 0:39
  Speaker 1: look at business and financial news affecting your day, your city,
• 0:43
  Speaker 1: your world. Stay informed and up to date about economic
• 0:46
  Speaker 1: and market trends, plus breaking business news every day. The
• 0:50
  Speaker 1: Financial Exchange is a proud partner of the Disabled American
• 0:54
  Speaker 1: Veterans Department of Massachusetts. Help us support our great American
• 0:58
  Speaker 1: heroes by visiting dav I dot Boston and making a
• 1:02
  Speaker 1: donation today. This is the Financial Exchange with Chuck Zada,
• 1:06
  Speaker 1: and Mark Fandetti.
• 1:10
  Speaker 2: Our two of the financial exchange kicking off right now,
• 1:13
  Speaker 2: Chuck Mark and Tucker with you. And it's a FED day.
• 1:18
  Speaker 2: It's a Microsoft earnings day, it's a Meta earnings day,
• 1:22
  Speaker 2: it's a Tesla earnings day. We also got the EIA
• 1:27
  Speaker 2: reporting on US energy production, but that happens every week,
• 1:31
  Speaker 2: and unless you're trading oil on a daily basis, quite honestly,
• 1:36
  Speaker 2: doesn't really rise to the same level as the other ones.
• 1:40
  Speaker 2: But it's just a busy, busy day that we have here.
• 1:44
  Speaker 2: But taking will get markets. Thus far, the Dow is
• 1:47
  Speaker 2: up eleven points, s Andp's down nineteen, NASDAC down one
• 1:50
  Speaker 2: twenty four. So here's what's happened this week. Monday, AI
• 1:54
  Speaker 2: and related stock sold off and most of the rest
• 1:57
  Speaker 2: of the market did pretty well. Yesterday, AI and AI
• 2:02
  Speaker 2: related stocks got bit up and the rest of the
• 2:04
  Speaker 2: market did not so well. Today, AI and AI related
• 2:09
  Speaker 2: stocks selling off again and everything else doing pretty well.
• 2:14
  Speaker 2: So market can't really make up its mind. And look,
• 2:16
  Speaker 2: I'm not entirely surprised. We still don't really know a
• 2:20
  Speaker 2: ton about how the latest model from deep Seek changes
• 2:23
  Speaker 2: AI in the long run, so people are still trying
• 2:27
  Speaker 2: to figure this out. Anyone who and anyone who has
• 2:30
  Speaker 2: gone from like in the last you know, seven days
• 2:35
  Speaker 2: from well, I'm an expert in California wildfires too, I'm
• 2:39
  Speaker 2: an expert in AI. Those are the people that are
• 2:41
  Speaker 2: on social media right now, you know, talking about how
• 2:43
  Speaker 2: they know something for certain. Nobody knows anything, like we're
• 2:46
  Speaker 2: all just trying to figure this out because it's been
• 2:49
  Speaker 2: less than it's been less than ten days since this
• 2:51
  Speaker 2: model was released. No one has any idea how this
• 2:54
  Speaker 2: changes anything permanently. So let's pump the brakes and you know,
• 2:58
  Speaker 2: kind of see how things develop there. Teddy r US
• 3:01
  Speaker 2: Treasury down one basis point to four point five to
• 3:05
  Speaker 2: four percent. Oil West Texas Intermediate is it's got to
• 3:10
  Speaker 2: be somewhere. Come on, show up on my screen. There.
• 3:13
  Speaker 2: It is down twenty cents a barrel to seventy three
• 3:15
  Speaker 2: fifty seven tripa National avatur gas prices is three to
• 3:18
  Speaker 2: twelve per gallon. That is flat from yesterday, So no
• 3:22
  Speaker 2: change overnight on that front. And we've got gold moving
• 3:27
  Speaker 2: up a dollar ten announce to twenty seven ninety five
• 3:29
  Speaker 2: and seventy cents, so not much movement happening there one
• 3:33
  Speaker 2: place where we are seeing some movement is in the
• 3:36
  Speaker 2: White House attempting to downsize the federal workforce. So, in
• 3:41
  Speaker 2: an email that was received by basically all government employees
• 3:46
  Speaker 2: yesterday night, the Office of Personnel Management told federal workers
• 3:50
  Speaker 2: that they have until February sixth to decide whether they
• 3:53
  Speaker 2: want to accept. What they're saying is a buyout offer
• 3:58
  Speaker 2: that effectively gets them paid through September, but still having
• 4:05
  Speaker 2: to work, but just being exempted from some of the
• 4:08
  Speaker 2: work from home requirements so that the return to office
• 4:10
  Speaker 2: requirements that are put in place. They've indicated they're hoping
• 4:14
  Speaker 2: that ten percent of federal workers accept this. So there's
• 4:19
  Speaker 2: a few things going on here, and it's going to
• 4:21
  Speaker 2: take a little bit of time to unpack it all
• 4:24
  Speaker 2: just because there's a lot in this in terms of
• 4:28
  Speaker 2: what it actually means. The first, I do have a
• 4:31
  Speaker 2: number of friends who work for different branches of the
• 4:34
  Speaker 2: federal government, and so I was fortunate enough that I
• 4:38
  Speaker 2: was able to see the actual email that was sent,
• 4:42
  Speaker 2: and then it popped up all over social media as well.
• 4:45
  Speaker 2: The first thing that a few of them said was,
• 4:48
  Speaker 2: I thought this was like some kind of phishing attempt,
• 4:50
  Speaker 2: and so I just deleted it because it basically didn't
• 4:54
  Speaker 2: it wasn't It wasn't phrase the way that stuff from
• 4:57
  Speaker 2: OPM typically is, so a lot of people initially were
• 5:00
  Speaker 2: just like, no, this isn't real. The second piece is
• 5:04
  Speaker 2: the email asks you to just in just basically sent
• 5:08
  Speaker 2: a one word answer to it, just saying resign. And
• 5:13
  Speaker 2: so a number of different people out there said, don't
• 5:16
  Speaker 2: respond to this just saying resign, because that's not how
• 5:21
  Speaker 2: things are officially done, you know, as far as how
• 5:23
  Speaker 2: you exit the US government and so on and so forth,
• 5:26
  Speaker 2: and just replying resign could end up being interpreted as
• 5:29
  Speaker 2: you're resigning immediately, and maybe you don't get paid anything,
• 5:32
  Speaker 2: because there's nothing in writing stating that the Executive Branch
• 5:35
  Speaker 2: has the authority to do this. So I do think
• 5:40
  Speaker 2: we know that the White House clearly wants to see
• 5:44
  Speaker 2: reduced headcounts in the federal government. There's no doubt about it.
• 5:48
  Speaker 2: And by the way, there are good examples that you
• 5:52
  Speaker 2: can reduce federal headcount without dramatically harming the services that
• 5:59
  Speaker 2: the federal government provides. You're going back to the nineties,
• 6:04
  Speaker 2: and during the Clinton administration, federal headcount dropped by four
• 6:06
  Speaker 2: hundred thousand people over the eight year two terms of
• 6:10
  Speaker 2: Bill Clinton. It's a meaningful number. That's again at the time,
• 6:13
  Speaker 2: that was like a twelve percent reduction in headcount over
• 6:16
  Speaker 2: an eight year period. It wasn't all at once, and
• 6:19
  Speaker 2: it wasn't done in this way. But look, if we're talking, hey,
• 6:24
  Speaker 2: can we find ways to reduce government headcount? You probably can.
• 6:28
  Speaker 2: But this seems a little bit slipshot in terms of
• 6:32
  Speaker 2: again like just how it's actually going to end up
• 6:34
  Speaker 2: playing out, And so a lot of people are just
• 6:36
  Speaker 2: kind of wondering should I accept this or not, given
• 6:39
  Speaker 2: that they're not sure if it is official, if it's allowed,
• 6:43
  Speaker 2: and how it impacts their ability to, you know, work
• 6:47
  Speaker 2: going forward. They're just not sure what it means. So
• 6:52
  Speaker 2: I think at this point, I think we can look
• 6:55
  Speaker 2: at it and say, yeah, there's clearly an aim to
• 6:58
  Speaker 2: try to reduce federal govern head count, which is, by
• 7:01
  Speaker 2: the way, exactly what the Trump administration said they were
• 7:03
  Speaker 2: going to try to do. Whether you can do it
• 7:06
  Speaker 2: in this fashion, I think is an open question. And
• 7:09
  Speaker 2: so I just don't know if there's going to be
• 7:13
  Speaker 2: any actual impact as a result of this right now.
• 7:18
  Speaker 3: It's an odd way to go about shrinking government if
• 7:21
  Speaker 3: that's their objective traditionally. And I say this as someone
• 7:25
  Speaker 3: who wants, for what my two cents is worth, to
• 7:28
  Speaker 3: cut government spending at the federal level by a lot.
• 7:31
  Speaker 3: So I'm no big government person. I would cut it by.
• 7:34
  Speaker 2: I would never put you in that second. Well, I'm
• 7:36
  Speaker 2: just not.
• 7:36
  Speaker 3: Everybody listening knows that they hear somebody with a skeptical
• 7:39
  Speaker 3: view of what Trump's doing, and they say, oh, here's
• 7:41
  Speaker 3: some liberal. No, I've been a libertarian for over thirty years.
• 7:44
  Speaker 3: I mean, I get it. It's pretty deep in my DNA.
• 7:48
  Speaker 3: This does not seem like a coherent and organized way
• 7:52
  Speaker 3: to approach it. Randomly firing people. You said, slap dash
• 7:55
  Speaker 3: or slip shot or a helter skelter or something. Yeah,
• 7:57
  Speaker 3: and I think that captures it perfectly. Rather decide what
• 8:01
  Speaker 3: government should be doing and what it shouldn't be doing philosophically,
• 8:04
  Speaker 3: do you believe the government should be in the business
• 8:06
  Speaker 3: of dictating to states and localities what education policy would be.
• 8:09
  Speaker 3: If the answer is no, I'm personally a no on that.
• 8:11
  Speaker 3: I would eliminate the Department of Education. Liberals are mortified.
• 8:15
  Speaker 3: Conservatives would cheer that it's not clear Trump or Musk
• 8:19
  Speaker 3: or whomever's in charge of this thing. I guess Ramaswami's
• 8:22
  Speaker 3: out now believes that. So this haphazard, as you put it,
• 8:27
  Speaker 3: approach throwing out an email to two point four million
• 8:31
  Speaker 3: non postal federal employees and seeing how many of them
• 8:35
  Speaker 3: take it. What if all of NASA decides to take
• 8:37
  Speaker 3: it but nobody else, that would probably not be a
• 8:40
  Speaker 3: good thing.
• 8:42
  Speaker 2: So be kind of funny if that happened.
• 8:44
  Speaker 3: It would be in the sense that you're still in
• 8:46
  Speaker 3: the space station. Nobody's here to bring you back.
• 8:48
  Speaker 2: Guys Houston. So yeah, here's the other thing, like in
• 8:54
  Speaker 2: terms of how you're when we talk about reducing the deficit.
• 8:58
  Speaker 2: And again it's not that reductions in headcount can't help
• 9:02
  Speaker 2: on the side. They can't around the margins. But ultimately,
• 9:06
  Speaker 2: let's look at the federal workforce, which you know it
• 9:08
  Speaker 2: is two point four million. I did a little bit
• 9:10
  Speaker 2: of research on this last night because I was curious,
• 9:13
  Speaker 2: do you know what the average total compensation is for
• 9:16
  Speaker 2: a US government employee? I know, including healthcare and everything, The.
• 9:19
  Speaker 3: Totals two seventy billions. So it's it's the ratio of
• 9:23
  Speaker 3: those two things.
• 9:23
  Speaker 2: Yeah, it's the total actually, including like benefits and stuff,
• 9:27
  Speaker 2: is estimated to be a little bit higher, close to
• 9:29
  Speaker 2: like three hundred and forty billion. Okay, but sorry, I
• 9:31
  Speaker 2: just gave it away that that's where it is. So
• 9:34
  Speaker 2: if you look at the deficit this year, and if
• 9:38
  Speaker 2: you look at effectively what you're trying to bridge, the
• 9:42
  Speaker 2: federal budget this year is going to be close to
• 9:44
  Speaker 2: seven trillion dollars and the deficit is going to be
• 9:49
  Speaker 2: about a third of that somewhere in that ballpark. So
• 9:52
  Speaker 2: call it two and a half trillion. If you eliminated
• 9:55
  Speaker 2: every single federal employee everyone, and this is including like
• 10:00
  Speaker 2: DoD V, every single one, the deficit goes from two
• 10:04
  Speaker 2: point five trillion to two point two So head count
• 10:08
  Speaker 2: can't get you. There is the point that I'll know.
• 10:10
  Speaker 3: And by the way, is nobody to do that calculation
• 10:12
  Speaker 3: because you just fired them all.
• 10:13
  Speaker 2: Correct, Everyone's gone. There's no one who can do anything.
• 10:16
  Speaker 2: The tanks, no one's driving them. The fighter planes, no
• 10:20
  Speaker 2: one's driving them.
• 10:22
  Speaker 3: We talk about the military here or not.
• 10:24
  Speaker 2: This is everything. This is everything. This is including like
• 10:27
  Speaker 2: the eight hundred thousand military members and the five hundred
• 10:30
  Speaker 2: thousand people at the vah. So half of the government
• 10:34
  Speaker 2: payroll is either military or caring for military after they yeah,
• 10:40
  Speaker 2: during and after their service, which is kind of a
• 10:42
  Speaker 2: big like, you're not you're not getting rid of them,
• 10:46
  Speaker 2: at least I would hope you're not getting again that
• 10:49
  Speaker 2: that's not the problem from the budget perspective. The problem
• 10:52
  Speaker 2: from the budget perspective is really simple Medicare and Social Security. Yeah,
• 10:59
  Speaker 2: the like, I know, no one wants to hear that
• 11:02
  Speaker 2: because it's not popular. That's where it is. The other
• 11:06
  Speaker 2: stuff around the edge of not even Medicare and Social Security.
• 11:09
  Speaker 2: It's Medicare, social Security, and then all of the other
• 11:12
  Speaker 2: spending that's not on personnel.
• 11:15
  Speaker 3: The federal government is an insurance company with an army.
• 11:18
  Speaker 3: Somebody once wrote.
• 11:19
  Speaker 2: And you can see this, by the way, with the
• 11:20
  Speaker 2: numbers like what I just outlined again VA the big
• 11:24
  Speaker 2: what does VA handle. It's a lot of insurance stuff
• 11:28
  Speaker 2: and buy and large. It's it's most of.
• 11:30
  Speaker 3: What the government does transfers payments from one party to another.
• 11:34
  Speaker 3: It's an insurance company with an army.
• 11:36
  Speaker 2: If you want to actually make the meaningful impact on stuff,
• 11:41
  Speaker 2: it's gonna have to be healthcare, social security, and if
• 11:43
  Speaker 2: you actually want to like revamp DoD procurement processes and
• 11:47
  Speaker 2: stuff like that and get really in the weeds on
• 11:49
  Speaker 2: you know, all of those and figuring out the cost
• 11:52
  Speaker 2: on that side. That's where the meat is this stuff. Sure, like,
• 11:57
  Speaker 2: if you actually get a ten percent reduction in headcount, okay,
• 12:02
  Speaker 2: you're probably reducing the deficit by like a quarter percent
• 12:04
  Speaker 2: each year. Well, it's not to say that, it's not
• 12:07
  Speaker 2: say that it doesn't matter, but you gotta do You
• 12:09
  Speaker 2: gotta find eight other places to do the same thing.
• 12:12
  Speaker 3: Can we just call this theater what it is? Well,
• 12:15
  Speaker 3: I just called it theater. It's a joke, Chuck. This
• 12:18
  Speaker 3: email is a joke. It's not gonna cut spending, Musks.
• 12:21
  Speaker 3: Doze is not gonna cut spending. He's not gonna report
• 12:24
  Speaker 3: for a year and a half only months before an election.
• 12:27
  Speaker 3: That means it's going to be dead on arrival. None
• 12:29
  Speaker 3: of these people have uttered a serious word about cutting
• 12:32
  Speaker 3: spending in the past couple of weeks. They're not committed
• 12:35
  Speaker 3: to it. I'm sorry to break it to you, everybody,
• 12:37
  Speaker 3: it ain't gonna happen. Libertarians like me, You're gonna have
• 12:39
  Speaker 3: to go pound sand again and wait for the next administration,
• 12:42
  Speaker 3: hopefully a more principled one to come along and approach
• 12:44
  Speaker 3: this seriously because this is a joke on.
• 12:47
  Speaker 2: That Let's take a quick break and when we return,
• 12:50
  Speaker 2: we've got trivia and we'll talk a little bit more
• 12:53
  Speaker 2: about deepseek and how companies that are reporting earnings today,
• 12:57
  Speaker 2: namely Microsoft, Meta and Tesla I have to chat about
• 13:01
  Speaker 2: it during their earnings calls.
• 13:03
  Speaker 1: Missed one of our shows. Catch up anytime by asking
• 13:06
  Speaker 1: your Alexis smart speaker to play the Financial Exchange. This
• 13:09
  Speaker 1: is the Financial Exchange Radio Network. The Financial Exchange Show
• 13:13
  Speaker 1: podcast drops every day on Apple, Spotify, and iHeartRadio. Hit
• 13:18
  Speaker 1: that subscribe button and leave us a five star review.
• 13:21
  Speaker 1: You're listening to the Financial Exchange Radio Network.
• 13:26
  Speaker 4: Sath trivia here on the Financial Exchange. On this day.
• 13:29
  Speaker 4: In fifteen ninety five, Shakespeare's Romeo and Juliet was performed
• 13:34
  Speaker 4: for the first time. There have been thirty four movie
• 13:37
  Speaker 4: adaptations of Romeo and Juliet, with one of the most
• 13:41
  Speaker 4: famous being a modern retelling back in nineteen ninety six.
• 13:45
  Speaker 4: It's your requestion today. Who played Romeo in the nineteen
• 13:48
  Speaker 4: ninety six film Romeo and Juliet. Once again, who played
• 13:53
  Speaker 4: Romeo in the nineteen ninety six film Romeo and Juliet.
• 13:57
  Speaker 4: Be the eighth person today to text us at six
• 14:00
  Speaker 4: one seven three six two thirteen eighty five with a
• 14:02
  Speaker 4: correct answer, and you win a Financial LOKs Shane Show
• 14:05
  Speaker 4: t shirt. Once again, the eighth correct response to text
• 14:07
  Speaker 4: us at six one seven three six two thirteen eighty
• 14:10
  Speaker 4: five will be our winner. See complete contest rules at
• 14:14
  Speaker 4: Financial Exchange Show dot com.
• 14:16
  Speaker 2: So the chatter in markets this week has been all
• 14:19
  Speaker 2: about Deepseek, which no one cared about or even heard
• 14:23
  Speaker 2: of before Monday. Let's let's be honest, no one in
• 14:28
  Speaker 2: the world, aside from a very small group of people,
• 14:30
  Speaker 2: actually knew that this company even existed. And so it
• 14:34
  Speaker 2: now takes us to this evening's earnings reports, where after
• 14:39
  Speaker 2: the belt today we're gonna have Microsoft, Meta, and Tesla
• 14:42
  Speaker 2: all reported and reporting earnings. Now. Of the three, Microsoft
• 14:45
  Speaker 2: has been the one that's been, you know, supposedly kind
• 14:49
  Speaker 2: of on the most cutting edge because of their partnership
• 14:51
  Speaker 2: with OpenAI, who released chat GPT. So they're gonna get
• 14:55
  Speaker 2: some heavy questions about how this may impact their capital spending,
• 14:59
  Speaker 2: how this may packed potential revenue from AI, all these
• 15:04
  Speaker 2: different things. Meta on the other hand, doesn't really have
• 15:07
  Speaker 2: a ton of consumer facing stuff, but they've been big
• 15:09
  Speaker 2: in terms of building the back end tools for developers
• 15:13
  Speaker 2: and other AI platforms, and Tesla has been fairly outspoken
• 15:16
  Speaker 2: about how they think AI is going to help them
• 15:18
  Speaker 2: get to know anything from self driving vehicles to robotics.
• 15:23
  Speaker 2: So all three of these companies I think are going
• 15:25
  Speaker 2: to get asked some heavy questions during their earnings calls
• 15:28
  Speaker 2: about hey, how does this deep seek situation affect you?
• 15:33
  Speaker 2: I'm not sure any of them have good answers, And
• 15:35
  Speaker 2: what I'm most interested in is, hey, when they don't
• 15:38
  Speaker 2: give good answers, because nobody knows anything yet, how's the
• 15:42
  Speaker 2: stock going to react? If these companies don't give Wall
• 15:46
  Speaker 2: Street conclusive answers about why this doesn't matter for them.
• 15:49
  Speaker 3: Why would they get penalized? Given the point you just made,
• 15:52
  Speaker 3: which is good but I think also pretty straightforward, I think,
• 15:55
  Speaker 3: other than Microsoft, which I sorry gut.
• 15:57
  Speaker 2: Here's why I think they get penalized is not because
• 16:01
  Speaker 2: of anything that they're doing wrong, but rather because of
• 16:03
  Speaker 2: how they've been priced as if nothing can go wrong
• 16:05
  Speaker 2: with their AI ambitions.
• 16:07
  Speaker 3: But Microsofts are different, as you just pointed out, and
• 16:09
  Speaker 3: as you know very well because you and Mike Armstrong
• 16:12
  Speaker 3: cover this topic thoroughly and regularly. Yeah, Microsoft, the implications
• 16:16
  Speaker 3: for Microsoft are very different than those for Meta and Tesla,
• 16:20
  Speaker 3: and maybe similar to Google's. I don't know, you tell
• 16:24
  Speaker 3: me what. We're not talking about Google right alphabet right.
• 16:26
  Speaker 2: Now they are, So they're all a little bit different,
• 16:29
  Speaker 2: as you note there, but it still is something where
• 16:33
  Speaker 2: each of these companies, in their own unique way is
• 16:36
  Speaker 2: banking on AI being that growth engine for the next
• 16:40
  Speaker 2: five years. And there's been a big question that's been
• 16:44
  Speaker 2: thrown at that growth engine earlier this week. They need
• 16:48
  Speaker 2: to be able to provide something to say, here's why
• 16:51
  Speaker 2: we don't think this is going to impact us, because
• 16:54
  Speaker 2: otherwise what you end up with is Okay, Monday was
• 16:58
  Speaker 2: the first level of concern that you saw about this,
• 17:01
  Speaker 2: then you start see other things, you know, coming out
• 17:04
  Speaker 2: as well. Just as an example, Ali Baba yesterday came
• 17:07
  Speaker 2: out and said, hey, we've got you know, the new
• 17:09
  Speaker 2: most powerful AI model ever. So it's again you're getting
• 17:13
  Speaker 2: first of all, it's there's no doubt in my mind
• 17:16
  Speaker 2: that it's not a coincidence that these Chinese companies are
• 17:18
  Speaker 2: pushing this stuff out right now, at this very point
• 17:21
  Speaker 2: in time. You explain that, I think it's directly connected
• 17:24
  Speaker 2: to the new administration coming in, And specifically what I
• 17:28
  Speaker 2: mean by that is, over the last five years, the
• 17:32
  Speaker 2: Trump even go back like seven years. Over the last
• 17:35
  Speaker 2: seven years, the Trump and Biden administrations have pushed put
• 17:38
  Speaker 2: significant export restrictions in place to try to prevent China
• 17:42
  Speaker 2: from developing AI models and trying to to really try
• 17:47
  Speaker 2: to stemy China China's AI development overall. New administration comes in,
• 17:52
  Speaker 2: what's the first thing that China does, Hey, here's two
• 17:56
  Speaker 2: new AI models that are gonna knock your socks off.
• 18:00
  Speaker 2: It's a direct message to the Trump administration. Hey, you
• 18:03
  Speaker 2: can restrict exports all you want. Look what we can
• 18:06
  Speaker 2: do now. That might be a believable message, it might
• 18:09
  Speaker 2: not be, But ultimately the message that's being sent is
• 18:13
  Speaker 2: doesn't matter if you take these chips away from us.
• 18:15
  Speaker 2: We can still make this stuff, either through acquiring black
• 18:19
  Speaker 2: market chips or through you know, trying to do it
• 18:22
  Speaker 2: better than you guys. So I think there's no coincidence
• 18:25
  Speaker 2: on the timing.
• 18:26
  Speaker 3: They shared it with the world. This is not directly
• 18:28
  Speaker 3: partner to you. Yes, why they've shared it with the world.
• 18:31
  Speaker 3: If indeed they've come up with a short cut mathematically
• 18:36
  Speaker 3: to get to the solution more quickly, sure, then the
• 18:39
  Speaker 3: world is better off. So this is good for everybody.
• 18:42
  Speaker 2: Yes and no. The US economy, a huge chunk of
• 18:46
  Speaker 2: growth that's projected in the next several years is from
• 18:50
  Speaker 2: AI investment. And I'm looking at this almost from the
• 18:55
  Speaker 2: perspective of Chinese steel dumping and how it impacted global
• 18:59
  Speaker 2: producers on in that industry, and how it may impact
• 19:03
  Speaker 2: global AI productions probably not the right word, but global
• 19:09
  Speaker 2: AI demand and things along those lines. And so if
• 19:15
  Speaker 2: the main story that's been driving us both economic outperformance
• 19:21
  Speaker 2: and stock market out performance the last couple of years
• 19:23
  Speaker 2: has been AI, it's a direct shot right at that,
• 19:26
  Speaker 2: in my opinion, to take a quick break. When we
• 19:30
  Speaker 2: come back, We've got the trivia answer right after this.
• 19:41
  Speaker 1: Bringing the latest financial news straight to your radio every day.
• 19:45
  Speaker 1: It's The Financial Exchange on the Financial Exchange Radio Network.
• 19:51
  Speaker 1: Miss any of the show. The Financial Exchange Show podcast
• 19:54
  Speaker 1: is available on Apple, Spotify, and iHeartRadio. Hit the subscribe
• 19:58
  Speaker 1: button and leave us a five star review. This is
• 20:01
  Speaker 1: the Financial Exchange Radio Network.
• 20:06
  Speaker 4: This segment of the financial exchange brought to you in
• 20:09
  Speaker 4: part by the US Virgin Islands Department of Tourism. The
• 20:12
  Speaker 4: US Virgin Islands are Saint Croix, Saint Thomas, and Saint
• 20:15
  Speaker 4: John And if you act now, you can take advantage
• 20:18
  Speaker 4: of a special promotion to Saint Croix, experience a vibe
• 20:21
  Speaker 4: like no other, and get a two hundred and fifty
• 20:23
  Speaker 4: dollars per person airline credit when you book a minimum
• 20:26
  Speaker 4: five night's day I participating hotels. Go to visit USVII
• 20:30
  Speaker 4: dot com and use code Vibe twenty twenty five to
• 20:33
  Speaker 4: reserve your trip Today. Take your next vacation to Sant
• 20:36
  Speaker 4: Croix in America's Caribbean paradise the United States Virgin Islands.
• 20:39
  Speaker 4: Go to visit USVII dot com and use code Vibe
• 20:42
  Speaker 4: twenty twenty five to book your trip. That's visit USVII
• 20:46
  Speaker 4: dot com and code Vibe twenty twenty five. Trivia question today.
• 20:50
  Speaker 4: Who played Romeo in the nineteen ninety six film Romeo
• 20:54
  Speaker 4: and Juliette. That'll be Leonardo DiCaprio and Claire Danes played
• 20:59
  Speaker 4: juliet By the way, Dion from Wakefield, mass is our
• 21:02
  Speaker 4: winner today, taking home a financial Exchange Show t shirt
• 21:06
  Speaker 4: and we played trivia every day here on the Financial
• 21:09
  Speaker 4: Exchange See complete contest rules at Financial exchine Show dot com.
• 21:14
  Speaker 2: Piece Here in Baloomberg, it's titled Microsoft probing of Deepseek
• 21:19
  Speaker 2: linked group improperly obtained open Ai data. And I gotta say,
• 21:27
  Speaker 2: sure feels a little bit like the shoe might be
• 21:30
  Speaker 2: on the other foot at this point, because for the
• 21:33
  Speaker 2: last couple of years, different publications, different individuals, you know,
• 21:38
  Speaker 2: you name it, have been saying, hey, it seems like
• 21:42
  Speaker 2: they might have scraped our data without permission, and we
• 21:46
  Speaker 2: didn't get any compensation for this. And so I guess
• 21:51
  Speaker 2: the point that I'll make on this is, look, if
• 21:54
  Speaker 2: if Microsoft can not Microsoft, but if OpenAI specifically, you know,
• 21:59
  Speaker 2: felt that they had carte blanche to basically go and
• 22:02
  Speaker 2: use whatever data they wanted training their models, well why
• 22:05
  Speaker 2: should they feel differently when someone trains a different model
• 22:09
  Speaker 2: on theirs. I just think you have to be logically
• 22:12
  Speaker 2: consistent on this. Now, where I think this is heading
• 22:15
  Speaker 2: at this point, and you're already starting to get the
• 22:19
  Speaker 2: noise on this is deep Seek being banned in the
• 22:23
  Speaker 2: United States for national security reasons. You've already had a
• 22:25
  Speaker 2: couple different Congress people come out today and say that,
• 22:28
  Speaker 2: you know, this is a potential problem, And my answer
• 22:32
  Speaker 2: on that is, well, if deep Seek is a potential problem,
• 22:35
  Speaker 2: why not TikTok, which we now have you know, extended
• 22:38
  Speaker 2: the time during which it is theoretically able to operate,
• 22:42
  Speaker 2: though it's still not available in either of the major
• 22:44
  Speaker 2: app stores because you know, Apple and Google are kind
• 22:47
  Speaker 2: of nervous that. Hey, like, is the legal footing for
• 22:50
  Speaker 2: that move? You know? Solid? But look, if we're gonna
• 22:55
  Speaker 2: sit here and be like, yeah, open a I should
• 22:57
  Speaker 2: be banned because of national security, not open AI deep
• 23:00
  Speaker 2: seek should be banned because of national security reasons, you
• 23:05
  Speaker 2: gotta do it with TikTok too, Like, what are we
• 23:06
  Speaker 2: even doing here?
• 23:08
  Speaker 3: Yeah, I don't think they'll feel the need to be
• 23:10
  Speaker 3: that consistent. Yeah, it is the obvious point, though, And.
• 23:15
  Speaker 2: This is something where I've been remarkably consistent on this,
• 23:19
  Speaker 2: and I don't really have much wiggle room. If you
• 23:24
  Speaker 2: are a Chinese facing app that operates in the United
• 23:28
  Speaker 2: States and collects any kind of data on US citizens
• 23:35
  Speaker 2: shouldn't be operating here. It's that simple, Yeah, Congress, and
• 23:41
  Speaker 2: Congress signed a law to that effect. By the way, sure,
• 23:45
  Speaker 2: And so I don't know what we're really doing here.
• 23:49
  Speaker 2: And this is not because I'm like anti deep Seek.
• 23:51
  Speaker 2: It's like, again, I think it's remarkable what they're claiming
• 23:54
  Speaker 2: to have done. I still don't know if they've actually
• 23:56
  Speaker 2: done it on the budget that they claim to. But
• 23:58
  Speaker 2: you can believe that they're going to be a million
• 24:02
  Speaker 2: different AI people over the next few months trying to
• 24:04
  Speaker 2: replicate what they did in terms of can you train
• 24:06
  Speaker 2: as cheaply and and as easily as they said they did?
• 24:10
  Speaker 2: And so I don't know what what are we doing
• 24:14
  Speaker 2: here as far as allowing these companies to operate. But yeah,
• 24:17
  Speaker 2: the idea that Microsoft is like, hey, deep Seek, you
• 24:20
  Speaker 2: might have improperly obtained data from from our models. Come on,
• 24:26
  Speaker 2: you guys are like the original improperly obtaining data from everything.
• 24:30
  Speaker 3: So are they alleging Sorry if this gets here's what
• 24:36
  Speaker 3: go ahead.
• 24:37
  Speaker 2: Here's here's what they are alleging is that and there's
• 24:42
  Speaker 2: there's some evidence that basically what deep Seek did deep
• 24:46
  Speaker 2: Seek is what's known as a distilled model. And that
• 24:50
  Speaker 2: doesn't mean that they use distilled water or that they
• 24:53
  Speaker 2: were all drunk when they were doing it, but rather
• 24:55
  Speaker 2: A distilled model is a model that is effectively built
• 25:01
  Speaker 2: using responses from other models to provide solutions for how
• 25:08
  Speaker 2: the AI should respond in the future. So think of
• 25:10
  Speaker 2: it this way. A cutting edge base level model goes
• 25:15
  Speaker 2: out and says, we've collected all this data from all
• 25:17
  Speaker 2: these different sources, and when we start typing stuff into it, okay,
• 25:21
  Speaker 2: it spits it out just based on what's in those sources,
• 25:25
  Speaker 2: the claim, and even what seems to be the case here.
• 25:27
  Speaker 2: I think that this is fairly ironclad to a certain extent. Wow,
• 25:31
  Speaker 2: that's a lot of qualifiers. I think this is pretty likely.
• 25:35
  Speaker 2: Is that Deepseek built its model, but then trained it
• 25:39
  Speaker 2: by saying, hey, here's how other models respond to these questions.
• 25:44
  Speaker 2: Do similar to what they did, So it's training. It's
• 25:47
  Speaker 2: a model based off other models effectively, and that's called
• 25:51
  Speaker 2: distillation in the AI world. So if you hear distilled
• 25:54
  Speaker 2: model in the AI world, it just means a model
• 25:56
  Speaker 2: that was trained off of other models rather than the
• 25:58
  Speaker 2: source at its core. And in theory, that can allow
• 26:03
  Speaker 2: you cheaper training costs because it just has to learn
• 26:06
  Speaker 2: how other models think. It doesn't have to be trained
• 26:08
  Speaker 2: how to think To begin with, what's.
• 26:12
  Speaker 3: Wrong with that. Now, why wouldn't you do it? Why
• 26:13
  Speaker 3: wouldn't you approach it that way? If I were a
• 26:16
  Speaker 3: coder' that's a huge shortcut. You are standing on the
• 26:20
  Speaker 3: shoulders a giants. But so why wouldn't I call Why
• 26:23
  Speaker 3: wouldn't I code it that way?
• 26:24
  Speaker 2: The issue with and and by the way, all of
• 26:27
  Speaker 2: the major AI players have models that are that are
• 26:32
  Speaker 2: built doing exactly that. So open ai has models that
• 26:35
  Speaker 2: are distilled models. So does Google, so does Anthropic. They
• 26:40
  Speaker 2: all do. The general consensus to this point is that
• 26:45
  Speaker 2: you cannot build as powerful a model using distillation as
• 26:49
  Speaker 2: you can by going directly to the source. Okay, that's
• 26:53
  Speaker 2: been That's been the experience to this point is the
• 26:55
  Speaker 2: distilled models are meaningfully less powerful. This is the first
• 27:00
  Speaker 2: instance where a distilled model may actually have the same
• 27:03
  Speaker 2: capability as the ones that are built from the ground
• 27:06
  Speaker 2: up and trained on the full data set to begin with.
• 27:09
  Speaker 2: M So that like, that's another one of the potential
• 27:13
  Speaker 2: realizations here is Wow, you can build distilled models that
• 27:16
  Speaker 2: that can compete at the cutting edge. We didn't know
• 27:18
  Speaker 2: you could do that.
• 27:19
  Speaker 3: To me, that should be the goal, as opposed to
• 27:21
  Speaker 3: having to from scratch arrive at an optimal answer. Every
• 27:26
  Speaker 3: time you look at something else that solves the problem
• 27:29
  Speaker 3: optimally and then you take that short cut.
• 27:33
  Speaker 2: The problem is if that other model is taking is
• 27:37
  Speaker 2: doing something incorrectly there, then you are training incorrectly and
• 27:41
  Speaker 2: you inherit that problem as well. Yeah, so it's it's
• 27:45
  Speaker 2: kind of like if you try to learn math from
• 27:49
  Speaker 2: someone who always does long division wrong. You may be
• 27:53
  Speaker 2: great at everything else in math, but you're not going
• 27:55
  Speaker 2: to be able to do long division as opposed to
• 27:58
  Speaker 2: learning from the textbook which tells you how to do
• 28:01
  Speaker 2: long division right.
• 28:02
  Speaker 3: But that may not your Your approach may be good
• 28:06
  Speaker 3: enough despite that drawback.
• 28:09
  Speaker 2: Again, and you might find other ways in this case
• 28:12
  Speaker 2: to overcome that. Even so, it's again, there's a lot here.
• 28:17
  Speaker 2: I just found it rich that Microsoft, And yeah, that
• 28:19
  Speaker 2: Microsoft is like, hey, was this data improperly obtained? When
• 28:23
  Speaker 2: there are still a lot of questions as to whether
• 28:25
  Speaker 2: or not open Ai properly obtained data that was that
• 28:28
  Speaker 2: it was using for its models. It's a little bit
• 28:31
  Speaker 2: rich for me. You know, oh, you're improperly obtaining this data? Well,
• 28:35
  Speaker 2: who gave you permission to take all this stuff? You know?
• 28:39
  Speaker 2: What gives Folks Armstrong Advisory Group has a guide available
• 28:42
  Speaker 2: this month. It's titled seven Common Financial Frauds and Scams.
• 28:45
  Speaker 2: I don't know about you, but I get like probably
• 28:48
  Speaker 2: a dozen or so text messages and voicemails and this
• 28:51
  Speaker 2: and that each week trying to scam me in one
• 28:54
  Speaker 2: way or another. There are a lot of different ones
• 28:57
  Speaker 2: out there, but this guide helps to give you some
• 29:00
  Speaker 2: ideas as to how you can protect yourself from some
• 29:02
  Speaker 2: of the most common ones. How do you request it?
• 29:04
  Speaker 2: Call eight hundred three nine three for zero zero one. Again,
• 29:09
  Speaker 2: it's titled the seven Common Financial Frauds and Scams. And
• 29:12
  Speaker 2: this is a simple one that's just designed a It's
• 29:14
  Speaker 2: a simple guide that's designed to help protect you and
• 29:17
  Speaker 2: give you more more information so that you're not making
• 29:21
  Speaker 2: big mistakes and getting scammed again. The guide is titled
• 29:24
  Speaker 2: seven Common Financial Frauds and Scams eight hundred three nine
• 29:28
  Speaker 2: three for zero zero one. That number again is eight
• 29:31
  Speaker 2: hundred three nine three for zero zero one.
• 29:35
  Speaker 1: The proceeding was paid for by Armstrong Advisory Group, a
• 29:38
  Speaker 1: registered investment advisor. Nothing in the ad or in any
• 29:40
  Speaker 1: Armstrong guide a specific financial, legal or tax advice. Consult
• 29:43
  Speaker 1: your own financial, tax and estate planning advisors before making
• 29:46
  Speaker 1: any investment decisions. Armstrong may contact you to offer investment
• 29:49
  Speaker 1: advisory services.
• 29:51
  Speaker 2: Average new car prices flirting with a record at this point.
• 29:55
  Speaker 2: The average new car buyer in America paid forty nine thousand,
• 29:58
  Speaker 2: seven hundred and forty dollars. That is, according to data
• 30:03
  Speaker 2: out of Kelly Blue Book. That is just two hundred
• 30:06
  Speaker 2: and eighteen dollars under the all time record that was
• 30:10
  Speaker 2: set in December of twenty twenty two. And so, yeah,
• 30:14
  Speaker 2: Americans continue to prove if there's one thing they love
• 30:17
  Speaker 2: to spend money on, it's cars. Mark It's cars.
• 30:20
  Speaker 3: Yeah, most don't think they have a choice. It's dictated
• 30:23
  Speaker 3: by family size or some other constraint that they don't
• 30:25
  Speaker 3: feel like they can change.
• 30:27
  Speaker 1: Right.
• 30:27
  Speaker 2: I always disagree on that there are affordable models even
• 30:30
  Speaker 2: if you have a large family, or even if you
• 30:32
  Speaker 2: want to pick up truck, even if you want a
• 30:34
  Speaker 2: full size pickup truck. Let's say you're a forward guy.
• 30:37
  Speaker 2: And again, I know there are some people that look,
• 30:39
  Speaker 2: your truck is your business, and obviously that's different. There's
• 30:43
  Speaker 2: reasons to do There's a lot of people who buy
• 30:47
  Speaker 2: trucks that don't use it for business. And don't need
• 30:50
  Speaker 2: that kind of you know setup. You can get a
• 30:54
  Speaker 2: Ford F one fifty under forty grand. Now the average
• 30:57
  Speaker 2: one is.
• 30:58
  Speaker 3: That's seriously stripped though, right, well, i'd even have four
• 31:01
  Speaker 3: wheel drive.
• 31:02
  Speaker 2: Well, no way, I'm going to cook the building price. No, no, no,
• 31:06
  Speaker 2: let's let's do this. I'm gonna do this right now.
• 31:08
  Speaker 4: No.
• 31:08
  Speaker 3: Wait, that's equipped with anything anybody would Well what I want?
• 31:12
  Speaker 2: Well, I'm going to see what it is. I mean,
• 31:14
  Speaker 2: I'm going to do build my own. No, I don't
• 31:16
  Speaker 2: want you to know my location for it. Okay, the
• 31:18
  Speaker 2: Xcel here we go. We're going to start my build.
• 31:20
  Speaker 2: I'm going to do it. An Agate black metallic sounds nice.
• 31:23
  Speaker 2: Just a good black pickup. It's got a five liter
• 31:27
  Speaker 2: V eight engine with auto stop technology and is it
• 31:31
  Speaker 2: also comes with the thirty six gallon fuel tank. It's
• 31:34
  Speaker 2: got four hundred horsepower four hundred and ten pound feet
• 31:36
  Speaker 2: of torque.
• 31:37
  Speaker 3: Is that standard thirty six gallon on a pickup? Forgive
• 31:40
  Speaker 3: my ignorance.
• 31:41
  Speaker 2: I'm just I'm not a pickup guy, but I'm just
• 31:44
  Speaker 2: right here. So the drive train there was four x two.
• 31:47
  Speaker 2: If I go to four by four it is. Okay,
• 31:51
  Speaker 2: let's see that's going to add five grand. So if
• 31:53
  Speaker 2: I want four wheel drive, it's adding five.
• 31:55
  Speaker 3: Hour in the mid forties.
• 31:57
  Speaker 2: And if I keep everything else base, I don't need
• 31:59
  Speaker 2: to like cover for the bed or anything like that.
• 32:02
  Speaker 2: I don't need cool wheel covers and stuff like that.
• 32:06
  Speaker 2: But let's just again, I'm not like, let's say that
• 32:10
  Speaker 2: I am buying this from me, Okay, but I owe
• 32:12
  Speaker 2: you what is it? I'm out the door in forty
• 32:14
  Speaker 2: two and that's MSRP. Maybe I end up getting it
• 32:17
  Speaker 2: at like forty four by four. Yep, four by four.
• 32:20
  Speaker 3: What does that not have? That seems too low? You
• 32:23
  Speaker 3: just didn't opt for aluminum rims.
• 32:25
  Speaker 2: A couple of things. This is the interior. There's no
• 32:28
  Speaker 2: leather or anything like that. It's like, you know, kind
• 32:30
  Speaker 2: of stripped down. There's no moon roof for any of that.
• 32:33
  Speaker 2: This is just a two seater, so it's no back doors,
• 32:36
  Speaker 2: so no so, no no crew or anything like that.
• 32:39
  Speaker 2: But that's that's what I'm dealing with. Okay, Now is
• 32:42
  Speaker 2: it going again? If your job is using your truck
• 32:45
  Speaker 2: to do stuff, fine, Again, that's not what I'm saying.
• 32:48
  Speaker 2: But there are an awful lot of people that don't
• 32:51
  Speaker 2: buy the pick up.
• 32:51
  Speaker 3: You can see how it would get expensive that's not
• 32:54
  Speaker 3: suitably equipped to be an everyday drive.
• 32:56
  Speaker 2: No, of course it's not. And this is why, like
• 32:58
  Speaker 2: you talk about where they end up like between sixty
• 33:01
  Speaker 2: and seventy when you're equipping it the way that you
• 33:02
  Speaker 2: need if you're doing like heavy towing and stuff like that,
• 33:05
  Speaker 2: I get it. But that's also if you're just looking
• 33:08
  Speaker 2: at like a full size pickup, like maybe the average
• 33:10
  Speaker 2: person who doesn't you know, use it that often can
• 33:13
  Speaker 2: get by with, you know, something that's a little bit smaller.
• 33:16
  Speaker 2: Maybe you could say, okay, let me do a ranger
• 33:18
  Speaker 2: and I can get that for you know, high thirties
• 33:19
  Speaker 2: is a four x four. Yeah, they're not cheapy' there's
• 33:22
  Speaker 2: options available. So we continue to spend a boatload on cars.
• 33:26
  Speaker 2: But the other thing that you got to remember, the
• 33:28
  Speaker 2: vast majority of people buying new cars they have high incomes,
• 33:32
  Speaker 2: and they're making this choice because they want to because
• 33:37
  Speaker 2: it's comfortable, and they like the features and this and that.
• 33:40
  Speaker 3: Yeah, and car prices ain't coming down much like the
• 33:42
  Speaker 3: prices of just about anything else apps in a severe
• 33:45
  Speaker 3: economic contraction. No, just not the way it works.
• 33:47
  Speaker 2: Quick break here when we come back. We got stack Roulette.
• 33:50
  Speaker 1: After this, find daily interviews and full shows of the
• 33:53
  Speaker 1: Financial Exchange on how are YouTube page get cut up
• 33:56
  Speaker 1: on anything and everything you might have missed. This is
• 33:59
  Speaker 1: the Financial Exchange Radio Network. Thanks to us six one, seven, three,
• 34:04
  Speaker 1: six two thirteen eighty five with your comments and questions
• 34:08
  Speaker 1: about today's show and let us know what you think
• 34:10
  Speaker 1: about the stories we are covering. This is the Financial
• 34:13
  Speaker 1: Exchange Radio Network.
• 34:23
  Speaker 2: Mark, what do you have for me for stack Roulette?
• 34:26
  Speaker 3: This comes from a newspaper which I don't know, sorry,
• 34:29
  Speaker 3: or the egg piece the egg prices piece? Do you
• 34:32
  Speaker 3: recall where that came from? I guess we should credit
• 34:34
  Speaker 3: the public air who cares the.
• 34:38
  Speaker 2: If you know man looking it up?
• 34:40
  Speaker 3: Whatever?
• 34:40
  Speaker 2: Barons? Thank you?
• 34:42
  Speaker 3: So the title of the pieces egg prices aren't coming down.
• 34:45
  Speaker 3: It's a headache for Trump, which is silly on the surface.
• 34:48
  Speaker 3: He's been in office for two weeks. What could he
• 34:51
  Speaker 3: possibly do about the price of any individual component, whether
• 34:55
  Speaker 3: it's eggs or cell phone prices or any of the
• 34:58
  Speaker 3: hundreds of components of the consumer Price index? Egg prices
• 35:02
  Speaker 3: focusing on the topic of the article, they are up
• 35:04
  Speaker 3: over sixty five percent in.
• 35:06
  Speaker 2: The past year.
• 35:07
  Speaker 3: It's probably not the Biden administration's fault either. Movements in
• 35:10
  Speaker 3: any one individual CPI component are due to sector specific
• 35:15
  Speaker 3: factors all that, and there's nothing any elected official could
• 35:19
  Speaker 3: do about them. For the most part. They'll try, but
• 35:21
  Speaker 3: very little they can. Dude, Now that said, you now
• 35:24
  Speaker 3: own this if you're the president, and you either better deflect,
• 35:29
  Speaker 3: which they tried to do yesterday. Oh it was Biden's fault.
• 35:32
  Speaker 3: But I suppose they should be prepared, as any elected
• 35:34
  Speaker 3: official should, for repeated badgering on whatever it is that's
• 35:40
  Speaker 3: driving up month over month, the food component in this
• 35:44
  Speaker 3: case of a CPI. It's unfair, but that's the way
• 35:46
  Speaker 3: the game is played.
• 35:47
  Speaker 2: Well, look, basically, almost all this stuff is completely outside
• 35:54
  Speaker 2: of any elected officials control. Usually. Yeah, you know, we've
• 35:58
  Speaker 2: been talking about like chocolate prices running up, it's because
• 36:00
  Speaker 2: of a drought. I forget where it is, like West
• 36:03
  Speaker 2: Africa where a lot of cocoa is produced. You what
• 36:07
  Speaker 2: are you gonna do, Hey, get the hoses. We gotta
• 36:09
  Speaker 2: spray West Africa. No, like okay, like it's gonna rain
• 36:13
  Speaker 2: when it's gonna rain, but until then, Hey, you gotta
• 36:16
  Speaker 2: deal with it. Eggs. Yeah, you got this bird flu
• 36:19
  Speaker 2: thing going on, You're gonna have to deal with you.
• 36:22
  Speaker 2: You're gonna either take the blame or credit, like, depending
• 36:24
  Speaker 2: on how it goes. But you don't have anything to
• 36:26
  Speaker 2: do with this. We couldn't build a national egg stock pile,
• 36:32
  Speaker 2: right because they go bad, even though we do have.
• 36:37
  Speaker 2: There's a national cheese stock pile, isn't there. Yeah yet,
• 36:41
  Speaker 2: there is a national cheese stock pile. So maybe just
• 36:44
  Speaker 2: rotate the eggs through. I don't know. They spend a
• 36:48
  Speaker 2: week there and then they go out to the stores.
• 36:52
  Speaker 3: Yeah, they'd have to be very uh uh delicate handed people.
• 36:57
  Speaker 3: Well who manned the national egg stock pile?
• 37:00
  Speaker 2: Yeah, I would agree with that. Be a careful group, yes.
• 37:04
  Speaker 3: Very imperturbable. You wouldn't want to put somebody flighty on that.
• 37:07
  Speaker 2: No, no one that gets overly excited, you know, no
• 37:10
  Speaker 2: one that's all jumpy or anything like. We'd be terrible
• 37:13
  Speaker 2: for this job. You and I would do well at
• 37:16
  Speaker 2: the cheese reserve.
• 37:17
  Speaker 3: Oh yeah, that'd be a lot of fun.
• 37:19
  Speaker 2: It would be dead, is there for a week?
• 37:21
  Speaker 3: Dead in a week?
• 37:23
  Speaker 2: Mark Stone roll me over that way. I can't get
• 37:26
  Speaker 2: a bite of the other.
• 37:27
  Speaker 3: It wouldn't be a bad way to go.
• 37:28
  Speaker 2: We're all out of peccer Reino. Yeah, it would be uh,
• 37:32
  Speaker 2: it'd be fun living in the cheese reserve for about
• 37:34
  Speaker 2: a day or so, and then then it wouldn't be
• 37:36
  Speaker 2: fun anymore. Taking a look at markets as we head
• 37:39
  Speaker 2: towards the top of the hour with the dows up
• 37:40
  Speaker 2: twelve points, s ANDP down twenty one, NASDAC down one five.
• 37:44
  Speaker 2: All the fireworks are going to be this afternoon though,
• 37:46
  Speaker 2: fed it to h Microsoft, Meta and Tesla after the bell.
• 37:53
  Speaker 2: We're gonna be able to recap it all tomorrow. So
• 37:55
  Speaker 2: that's the great news for everyone listening right now. Yes,
• 37:57
  Speaker 2: you can't listen to us this afternoon because not on
• 38:01
  Speaker 2: but tomorrow. It's only one place to go, and we'll
• 38:04
  Speaker 2: get you all the information on all these big items
• 38:08
  Speaker 2: tomorrow on the financial Exchange. We'll see you then,