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The Money Show: SpaceX Market Impact and Solving Social Security · Bloomberg Intelligence

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Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, Bloomberg Money.
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Speaker 2: This is the Bloomberg Money Podcast. I'm Tom Keen with
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Speaker 2: Scarlet Foo. Join us each week for a smart look
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Speaker 2: and the Bloomberg Business app.
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Speaker 3: Of course, we do want to bring your attention to
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Speaker 3: what's happening with SpaceX. The company began trading today after
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Speaker 3: ipoing yesterday at one hundred and thirty five dollars. The
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Speaker 3: opening trade was one hundred and fifty, although it's worth
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Speaker 3: noting for those who were keeping track that the indicated
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Speaker 3: open had been steadily declining from earlier in the day.
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Speaker 1: Go over now to Yahira Annon. She is our.
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Speaker 3: Bloomberg Television correspondent joining us from the Nazac in the
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Speaker 3: middle of all the action. Ya Hira, take us through
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Speaker 3: what we've seen so far.
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Speaker 4: Well, the excitement was palpable here at the Nazak scarlet.
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Speaker 4: And now SpaceX has officially begun trading. As you said,
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Speaker 4: the stock opening at one hundred and fifty five dollars
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Speaker 4: a share above it's one hundred and thirty five dollars
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Speaker 4: IPO price, giving investors an immediate gain of roughly eleven percent,
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Speaker 4: though now we are higher, but that opening value does
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Speaker 4: price the company at an approximately under two trillion dollar
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Speaker 4: market cap, instantly putting SpaceX among the most valuable companies
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Speaker 4: in the world. It's more valuable than Tesla itself, another
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Speaker 4: Eli Musk company, of course, but also Saudi Aramco and Meta.
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Speaker 1: Thank you so much for that context.
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Speaker 3: Because we talk about all the superlatives attached to this IPO.
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Speaker 3: It's also going to make a lot of early investors
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Speaker 3: very wealthy. Walk us through some of those names exactly.
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Speaker 4: I mean, you have the Peter Tiels of the world
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Speaker 4: that bet early on this company, and we'll make tens
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Speaker 4: of billions of dollars. Sequoya another early founder. And what
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Speaker 4: was striking to me this morning is obviously there are
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Speaker 4: a lot of skeptics on Wall Street on this name.
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Speaker 4: It is has a very has an unprofitable timeline for
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Speaker 4: quite some times. They have lofty ambitions of having data
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Speaker 4: centers in space by twenty twenty eight. But here on
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Speaker 4: the floor with the investors and the bankers, they are
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Speaker 4: excited because they are about to make a whole lot
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Speaker 4: of money scarlet. So that is why, while you have
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Speaker 4: the skeptics out there in this room, there was nothing
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Speaker 4: but excitement. And also from the Nazak, which won this listing.
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Speaker 1: All right, good stuff, you hire, Thank you so much.
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Speaker 3: I hire a non Bloomberg television coursepondant joining us from
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Speaker 3: the NAZAC where SpaceX began trading today for the first time,
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Speaker 3: opening at one hundred and fifty dollars after peing his
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Speaker 3: IPO at one hundred and thirty five last night.
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Speaker 1: Tom Bloomberg money, it's Bloomberg money.
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Speaker 2: Is it a little different? I think it's a little different.
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Speaker 1: We had to mix it up already.
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Speaker 2: Let's call it a special edition of Bloomberg Money. We'll
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Speaker 2: get to that later with some wonderful voices for you
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Speaker 2: on SpaceX and of course the uproar and social security.
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Speaker 2: But this is what Bloomberg is about. The intellectual capital
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Speaker 2: at the firm worldwide is extraordinary and critically eclectic, and
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Speaker 2: for SpaceX that's important joining us with all of his expertise.
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Speaker 2: Teered up with Caroline Hyde, Ed Ludlow continues with us.
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Speaker 2: Here Isabelle Lee is in the trenches of the retail effort.
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Speaker 2: We'll speak to her. We're going back and forth with
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Speaker 2: Eric bel chunis here on the ETF market and we're thrilled,
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Speaker 2: man deep sing with us with all the technology today.
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Speaker 2: I don't even know where to begin. I guess I'm
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Speaker 2: going to start with Ed Ludlow right now. When you
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Speaker 2: look at the quote unquote allocations, what's the gunpowder into
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Speaker 2: the closing bell here in front.
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Speaker 5: Everyone is disappointed. Everyone is disappointed, right like, it's not
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Speaker 5: just a matter of oversubscription on the retail side. So
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Speaker 5: what Bailey and I reported is that the allocation was
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Speaker 5: about twenty percent, Yeah, fifteen million. They're on their phone screaming, screaming,
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Speaker 5: and you know, Nancy Tanglo of Lafetengle, that's more like
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Speaker 5: a wealth management issue, right, which is just on the
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Speaker 5: show saying I'm buying at the open market. I don't
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Speaker 5: want to be I'm buying at the open market. The
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Speaker 5: main point here was that SpaceX and its management, specifically
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Speaker 5: it's management. Forget the bankers. They believed, genuinely believe that
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Speaker 5: the retail investor was so important for the long term
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Speaker 5: right that they actually understood the story way better than
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Speaker 5: Wall Street does. Highly analogous with Tesla, right, that story's
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Speaker 5: paid out. The retail investor base is a big part
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Speaker 5: of Tesla's story. But twenty percent that seems low, you know,
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Speaker 5: And so what do you do? Do you go under
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Speaker 5: the mattress, get your cash and then run and try
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Speaker 5: and play the open market. I don't know, but I
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Speaker 5: know that a lot of people that are trying.
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Speaker 3: A lot of people are trying, and those who can't
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Speaker 3: do it maybe doing it through other synthetic needs, Isabelle,
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Speaker 3: the ETF industry has made a lot of money creating
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Speaker 3: single stock leverage products, and you've been reporting how this
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Speaker 3: ETF industry has been tripping over itself to do the
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Speaker 3: same with SpaceX. How many SpaceX linked ETFs are there
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Speaker 3: right now?
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Speaker 6: There are more than twenty SpaceX link etf but around
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Speaker 6: a dozen are slated to launch on Monday, and they're
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Speaker 6: all bumped because they wanted to lunch today Friday, like
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Speaker 6: just hours after SpaceX go public. But then the exchanges
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Speaker 6: were like nope, we think it's too risky. Of course,
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Speaker 6: they declined to comments, so I'm putting words into their mouth.
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Speaker 6: But that's what you could speculate from them. But we
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Speaker 6: have one that may launch today. I think I don't
5:34
Speaker 6: know what they did. They did some maneuvering, but I'm
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Speaker 6: trying to get that story up. But they launch today.
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Speaker 6: It's defiance. But I want to briefly jump to Ed's point.
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Speaker 6: I got a retail trader on the phone earlier and
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Speaker 6: it was around eight thirty and he said, you put
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Speaker 6: in an order via e trade on Monday. And then
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Speaker 6: on the phone he was like, oh, I got an
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Speaker 6: a location. And then just an hour ago he said, oh,
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Speaker 6: but out of the forty shares I requested only eleven.
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Speaker 2: Right, I'm going to set up being deep right now,
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Speaker 2: but I'm going to go back to add love to
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Speaker 2: go to mandeep In your world, there's respect for people
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Speaker 2: like man Deep sing E time. What do the fundamentalists
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Speaker 2: think of all this retail action?
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Speaker 5: So that when I say that SpaceX believes the retail
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Speaker 5: investor that knows the story better, the story is complicated
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Speaker 5: and mande even the research that you publish, who are
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Speaker 5: just discussing it on air. Is there is the very
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Speaker 5: distant future where humans live on Mars. I know, Tom,
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Speaker 5: humans live, I know, but just give me five seconds.
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Speaker 7: I'll go to Mandy.
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Speaker 5: I promise humans live on Mars. Then there is the
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Speaker 5: present day where this company is making a really big
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Speaker 5: move to rent compute capacity to others. It's neocloud business.
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Speaker 5: And then in between his archital data center.
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Speaker 2: I want to talk to Jim Chanel's about that. Your
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Speaker 2: thoughts here on the relutte wheel that mister mask faces
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Speaker 2: is a trillionaire.
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Speaker 8: I mean this reminds me of Ballenteervalenteer is a stock
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Speaker 8: that traded way above every software company because retail just
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Speaker 8: believed in the company and it was high growth for
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Speaker 8: a while. It still is a fairly high growing company.
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Speaker 8: But when I compare you know, SpaceX valuation at two
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Speaker 8: trillion to Meta at one point five trillion, a company
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Speaker 8: with ten times more revenue.
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Speaker 9: Meta's revenue run rate is two hundred.
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Speaker 2: Billion, SpaceX is eighteen billion.
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Speaker 8: How can SpaceX be thirty percent higher than Meta? And
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Speaker 8: it just to me this this look.
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Speaker 2: Quick clear, Scarlet just the moon shut up from one
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Speaker 2: fifty up to a higher level. We've pulled back just
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Speaker 2: a bit, finally up eighteen percent, Finally a little bit
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Speaker 2: of pre trading stability.
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Speaker 1: All right, Well, we'll see how it all shakes out.
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Speaker 3: Man deep, there are twenty three banks involved in this IPO,
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Speaker 3: so Wall Street has a lot riding on the success
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Speaker 3: of this offering. What do the sell side analyst, brokers,
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Speaker 3: financial advisors likely see and wish they could say out loud,
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Speaker 3: but can't because of their bank's relationship with the company.
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Speaker 9: I mean, it has to be valuation, like you know.
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Speaker 8: The meta example to me is Prime, a company that
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Speaker 8: generates you know, almost one hundred billion dollars in free
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Speaker 8: cash flow. Yes, it's investing a lot in CAPEX right now,
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Speaker 8: which is why the multiple is compressed. But it's got
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Speaker 8: two hundred billion dollars in real revenue. It's growing thirty percent,
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Speaker 8: very sticky user base. SpaceX has too, has a lot
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Speaker 8: to prove. And yes they signed those two deals, but
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Speaker 8: that's not going to be enough for you.
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Speaker 2: I got a squeeze. So and you're going out of
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Speaker 2: middle town in the golf stream this afternoon, back to
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Speaker 2: San Francisco. How is your Sand Francisco? How is your
8:29
Speaker 2: Silicon Valley changed? With this transaction.
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Speaker 5: Well, there's a big misunderstanding that the four thousand millionaires
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Speaker 5: at SpaceX were minted will sort of retire to the beach,
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Speaker 5: go down to Newport Beach and sling my ties. That know,
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Speaker 5: there's been lots of liquidity events at SpaceX. It is
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Speaker 5: a leader in this new era of private companies staying
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Speaker 5: private longer but doing secondaries. So what you'll see in
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Speaker 5: Silicon Valley at large is that those four thousand are
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Speaker 5: more likely to start their own company, or they're more
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Speaker 5: likely to become bench capitalists. You know, that is a
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Speaker 5: big ripple effect. You see the same thing about AI
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Speaker 5: and thropping in AI two.
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Speaker 2: This has been wonderful, fabulous to have all three of
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Speaker 2: you are men deep singing. Isabelle, Lee and Ed love
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Speaker 2: those safe travels as you can coming up. Ed Ludlow
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Speaker 2: mentions the neo cloud. Jim Chanos are cut to the chase.
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Speaker 2: He is scathing. He calls this IPO hopes in dreams.
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Speaker 2: Stay with us a special edition of Bloomberg Money. Welcome
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Speaker 2: back to Bloomberg Money. I'm Tim Keen with Scarlett who.
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Speaker 2: It is a very special edition. Heire yes and your
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Speaker 2: personal finance and your retirement. Scar, did you get your
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Speaker 2: leverage ETF set up for SpaceX?
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Speaker 1: You feel I can't do that. I'm only passive.
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Speaker 2: You're very passive. No one's going to be passive with SpaceX.
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Speaker 2: This morning, we're seeing the pricing year with some stability
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Speaker 2: or up twenty one percent off the one fifty level.
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Speaker 2: This is indeed an honor joining us now. He's been
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Speaker 2: extremely active on Global Wall Street in the last four
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Speaker 2: or five days. James Chanos is with Chanos and Company
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Speaker 2: definitive on the street of a cautious view. Jim Channel's
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Speaker 2: honored to have you here. Let me just cut to
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Speaker 2: the chase. What is a distinctive feature that makes SpaceX
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Speaker 2: remind you of M Run?
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Speaker 10: Well, I don't know that it reminds me of N
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Speaker 10: Run Tom, but it reminds me of the N Run
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Speaker 10: time frame.
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Speaker 7: How's that in that?
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Speaker 10: I've always said that Wall Street has a printing press too,
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Speaker 10: just like the FAED.
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Speaker 7: It just takes a while to get going.
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Speaker 10: And one of the things that I think SpaceX is
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Speaker 10: ushering in in twenty twenty six is massive equity issuance,
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Speaker 10: and historically, without a doubt, in the twentieth and twenty
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Speaker 10: first century. Anytime you have seen massive IPOs and secondaries
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Speaker 10: relative to the size of the market or the economy,
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Speaker 10: investors generally have been advised to be a little more
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Speaker 10: cautious or reduce their risk. So the nineteen ninety nine
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Speaker 10: two thousand, tw twenty one, for the first half of
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Speaker 10: that year during the meme stock and spackcraze, we are
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Speaker 10: now going to break records in twenty twenty six for
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Speaker 10: IPOs and secondaries, and SpaceX of course is the granddaddy
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Speaker 10: kicking it all off in a big way, but we're
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Speaker 10: going to see Opening Eye and Anthropic and probably some others.
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Speaker 7: So we're going to shatter records.
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Speaker 10: And so it's telling you that right now supply is
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Speaker 10: meeting demand, which we haven't seen, by the way, in
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Speaker 10: twenty three, twenty four, and twenty five, but we're seeing
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Speaker 10: it now in twenty six.
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Speaker 2: I look, Jim Chanel's at this and we've had a
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Speaker 2: wonderful amount of time here with mister Chaino's so much
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Speaker 2: to talk about. Carlot's got some themes. I have some
12:01
Speaker 2: themes as well. Ed lodlow front of me. You see
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Speaker 2: how he did that? Yeah, Ed Lolo just stole my.
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Speaker 1: Thunder here you get to do it.
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Speaker 2: Chenos is thinking about the neo cloud. This is the
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Speaker 2: team here. The New York Times article of a day
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Speaker 2: or so ago is SpaceX worth one point eight gazillion dollars.
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Speaker 2: Xai seems to be suddenly changing its business model from
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Speaker 2: developing models like Rock to basically becoming an ed lovelow
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Speaker 2: neo cloud. The entire evaluation rests on Xai's progress. The
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Speaker 2: neo cloud strategy is a commodity business that is valued
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Speaker 2: far lower on the public markets. Jim Chanos to Isaac
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Speaker 2: and the crew over at the New York Times. They're
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Speaker 2: talking innovation, but you're predicting they'll go safe.
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Speaker 10: Well, what's really interesting, Tom, is that about a week
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Speaker 10: ten days ago, the vast driver for the SpaceX tam
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Speaker 10: in their perspectives, was the enterprise solutions for Xai basically
13:03
Speaker 10: groc what the models produce, right, the software, And instead
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Speaker 10: they basically did a one eighty pivot and said, we
13:12
Speaker 10: are going to lease out our capacity to Aanthropic and Google.
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Speaker 10: And that's the neocloud model, right, that's your equipment less
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Speaker 10: or and that is a much lower valued business in
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Speaker 10: the marketplace than being a model company or a hyperscaler
13:27
Speaker 10: and we've been following data centers for a long long time,
13:30
Speaker 10: and basically it's a finance business, right you're buying the
13:33
Speaker 10: chips from in video of somebody else and then you're
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Speaker 10: leasing them out to anthropic or it's a way to
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Speaker 10: return business. It's not a super high tech business. Yet,
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Speaker 10: twenty two plus trillion of the twenty nine and a
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Speaker 10: half trillion of SpaceX TAM in their perspectives, was based
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Speaker 10: on that business, and it just struck me as very
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Speaker 10: very odd that right before the IPO they would pivot
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Speaker 10: to a much lower margin and lower valuation business than
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Speaker 10: the hopes and dreams which you guys have mentioned. I've
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Speaker 10: mentioned based on producing these wonderful AI agentic software products
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Speaker 10: from groc and it's one of many head scratchers about
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Speaker 10: this deal.
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Speaker 3: At what point does financial reality, the kinds of things
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Speaker 3: you were just talking about breaking down the numbers, become
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Speaker 3: more important and matter more than the storytelling, the hopes
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Speaker 3: and dreams part of it, because that's what Elon Musk
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Speaker 3: excels it, and that's what people are buying in on.
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Speaker 10: So the question is.
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Speaker 7: This the Elon premium?
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Speaker 10: Is it Elon Premium times two or Elon premium divided
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Speaker 10: by two. I think that that's really the question here,
14:44
Speaker 10: because there are people who believe in Elon and have
14:48
Speaker 10: bid up Tesla accordingly to well beyond where I think
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Speaker 10: most fundamental analysts think it's worth because of optimist robots
14:56
Speaker 10: and economists driving and all that good stuff. And now
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Speaker 10: you have an other Elon hopes and dreams company with
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Speaker 10: an even bigger valuation, and so does that double the
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Speaker 10: value or does it basically say, okay, well I'm going
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Speaker 10: to pick one, because neither of them, let's face it,
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Speaker 10: are being valued on their operations. SpaceX is, I believe,
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Speaker 10: depending what I heard in the green room, is probably
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Speaker 10: now about one hundred and ten times revenues, and just
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Speaker 10: history tells us you just never really make much money
15:27
Speaker 10: buying equities at over one hundred times revenues.
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Speaker 3: Yeah, well, you, as we know, are inherently skeptical. Your
15:33
Speaker 3: company name's Kinnicos skeptic. You're not being a bull on
15:37
Speaker 3: SpaceX or Tess or Elon Musk completely tracks. Is there
15:40
Speaker 3: anything in the SpaceX financials or Musk's management of the
15:43
Speaker 3: company that does impress you that you can say a
15:45
Speaker 3: good job on look, I.
15:47
Speaker 7: Think Startling's a real business.
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Speaker 10: We can look at their businesses again, we have to
15:51
Speaker 10: go on what's in the perspective. Startlingk's a real business.
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Speaker 10: It's growing, it will probably continue to grow, although its
15:58
Speaker 10: growth is slowing. The launch busines and this is still
16:00
Speaker 10: losing money after twenty two years. And I'd be remissed
16:05
Speaker 10: from my fellow glass half empty, you know, participants, if
16:09
Speaker 10: I didn't point out that the rocket that all of
16:12
Speaker 10: this depends upon, Starship still has not achieved Earth orbit
16:17
Speaker 10: in twelve missions, right, and half of those ended up
16:20
Speaker 10: with some sort of mishapp So there's a lot riding
16:24
Speaker 10: on all of that. I think Starlink is a real business.
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Speaker 10: It's worth a couple hundred billion dollars. But the real
16:34
Speaker 10: hopes and dreams here is on Xai, which is, by
16:37
Speaker 10: the way, a company they bought in February for two
16:40
Speaker 10: hundred and fifty billion in stock that the market is
16:42
Speaker 10: now valuing it probably well over trillion and a half dollars.
16:46
Speaker 2: I'm Bloomber Television, I'm Bloomberg Radio worldwide, where this Jim
16:49
Speaker 2: Channel's th really cold. Join us today in this historic
16:52
Speaker 2: moment for his Wall Street and all of us around
16:56
Speaker 2: the world. So the short crew is said Tesla. Tesla
16:59
Speaker 2: tests someone like SpaceX, and I'm enjoying a fifty three
17:03
Speaker 2: percent per year return since sort of the beginning of COVID,
17:08
Speaker 2: you know, back six years or show. So you know again,
17:12
Speaker 2: Tesla's done better than good and there's a model negative
17:14
Speaker 2: free cash flow right now, how long can the optimism
17:18
Speaker 2: of SpaceX keep this going without delivering a more conventional
17:23
Speaker 2: income statement.
17:24
Speaker 10: Well, I think you answered the question right in years
17:28
Speaker 10: if possible. But Tesla is trading at about fourteen times revenues,
17:36
Speaker 10: right It does have one hundred billion in revenues, and
17:38
Speaker 10: it ramped revenues pretty quickly in twenty nineteen and twenty twenty,
17:44
Speaker 10: So there is a real business there in terms of
17:47
Speaker 10: large amounts of revenues and some cash flow. It's not
17:52
Speaker 10: trading at one hundred and ten times revenues, and that's
17:55
Speaker 10: a magnitude of difference. I think that's really important for
17:58
Speaker 10: your viewers.
17:59
Speaker 2: I've got just the first time scar I've ever looked
18:01
Speaker 2: the fame BQ function. Yes, and the burner are going.
18:04
Speaker 2: Of course, Channels nails the price to sales because he
18:07
Speaker 2: studied Time Dell than years ago, I've got twenty Well,
18:10
Speaker 2: right now, I've got a number of twenty seven times
18:12
Speaker 2: revenue on the BQ screme. It maybe a little higher
18:15
Speaker 2: than that. I've never seen a stock like that.
18:17
Speaker 3: So that I mean, I'm glad you guys bring up
18:19
Speaker 3: Tesla because there's this expectation that Tesla and SpaceX will
18:22
Speaker 3: somehow merge or will be combined in the same way
18:25
Speaker 3: that XA and SpaceX Scott combined and merged. How are
18:28
Speaker 3: you thinking through that and what does that mean for
18:30
Speaker 3: investors who believe in the Tessa business but are maybe
18:33
Speaker 3: skeptical of SpaceX.
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Speaker 7: Well, again, if it happens, and I have no idea
18:37
Speaker 7: if it.
18:38
Speaker 1: Will happen, does Elon need to make it happen.
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Speaker 10: No, he doesn't need to make it happen. He can
18:42
Speaker 10: give themselfate if he wants. It's solely up to him.
18:45
Speaker 10: We all know that. But it would be an equity
18:47
Speaker 10: for equity deal, and so I don't know how much
18:51
Speaker 10: value that would add in terms of cutting overhead. Is
18:56
Speaker 10: not the story here, right, It's really it's really what
18:59
Speaker 10: these companies will produce in the next five ten years.
19:02
Speaker 2: I look at this, Jim Chenos as an historic moment,
19:06
Speaker 2: and the answer is to the cycles. And I opened
19:08
Speaker 2: up talking about Enron and all that. I want you
19:11
Speaker 2: to talk about. The short business right now is a
19:14
Speaker 2: hugely important part of financial society. In this great bull
19:19
Speaker 2: market we're in right now, there's a lot of scars
19:22
Speaker 2: out there. How do you keep that going? When you
19:25
Speaker 2: see SpaceX right now? How do you keep a short
19:27
Speaker 2: model going with bull sectors and a bull trend in
19:31
Speaker 2: the broader market.
19:32
Speaker 10: So through twenty twenty three, we're running outside money. Now
19:35
Speaker 10: we run our own money. We've been hedged in the
19:39
Speaker 10: short world since nineteen ninety six. Basically our view has
19:42
Speaker 10: been we don't know where the market's going, nor does
19:45
Speaker 10: anybody else, so we'd rather be long the market and
19:49
Speaker 10: short our collection of radioactive companies, if you will, And
19:53
Speaker 10: that's been a very profitable business. And it's been a
19:55
Speaker 10: very profitable business for the last few years too, despite
19:58
Speaker 10: the market hitting new highs, because there's been a lot
20:00
Speaker 10: of stocks, as you guys know, that have lagged dramatically.
20:04
Speaker 10: So our view is always belong the market and be
20:07
Speaker 10: short some percentage of companies with bad businesses. And that's
20:14
Speaker 10: nothing I would recommend your views to do. At home,
20:16
Speaker 10: all right, don't recommend short selling for most people. It's
20:21
Speaker 10: really for the pros for lots of reasons, things like
20:23
Speaker 10: getting an interest rebate on your shorts and a variety
20:27
Speaker 10: of other things. But I will say that one of
20:30
Speaker 10: the things right now that is very apparent that insurance
20:34
Speaker 10: is cheap, and it's cheap for all the reasons.
20:37
Speaker 2: And I want to interrupt with Scarlett. I want to
20:38
Speaker 2: get four more questions in. It is SpaceX radioactive.
20:43
Speaker 10: We'll have to see where it settles out. You can't
20:46
Speaker 10: short it right now anyway. So it's a mood question.
20:49
Speaker 10: I mean, I think that anything trading over one hundred
20:53
Speaker 10: times revenues is of our interest. Historically, returns have been
20:57
Speaker 10: awful at those valuations.
21:00
Speaker 3: You mentioned earlier the dot com bubble. Are we doing
21:03
Speaker 3: dot com bubble two point zero right now?
21:04
Speaker 7: Oh? This is much bigger the AI.
21:07
Speaker 10: The AI buildout relative to the TMT buildout of ninety
21:11
Speaker 10: nine two thousand is multiples even as a percent of
21:14
Speaker 10: the economy GDP. And an important thing to point out
21:19
Speaker 10: is that when you get these capex booms in technology,
21:25
Speaker 10: they're tremendously accretive to earnings.
21:28
Speaker 7: And there's a simple accounting.
21:29
Speaker 10: Reason why that is when Tom buys chips for his
21:34
Speaker 10: data center from Nvidia, and Vidia recognizes that as revenue
21:38
Speaker 10: and profit. Tom capitalizes those expenses and writes them off
21:42
Speaker 10: over five to ten years, and so you have a
21:46
Speaker 10: mismatch for the same dollar in a capex boom is
21:49
Speaker 10: recognized as profits by one entity and deferred by the
21:54
Speaker 10: same people are spending the dollar.
21:57
Speaker 7: And that happened in ninety eight ninety nine two.
22:00
Speaker 10: From the middle of ninety eight, SMP operating earnings rose
22:04
Speaker 10: thirty percent to the middle of two thousand. Over two years,
22:08
Speaker 10: from the middle of two thousand to the middle of
22:10
Speaker 10: two thousand and one, when order books got pulled, sm
22:13
Speaker 10: P earnings dropped forty percent.
22:15
Speaker 2: Was there too much accounting for a Friday?
22:17
Speaker 7: I think so change, I'll leave it. I'll stop at that.
22:21
Speaker 3: Let me ask you one last question before we let
22:23
Speaker 3: you go, because this is Bloomberg money after all.
22:25
Speaker 1: How do you approach your own financial planning?
22:27
Speaker 3: How does it compare with how you advise or manage
22:30
Speaker 3: money for others?
22:31
Speaker 10: Well, it's mostly in my business and ancillary things. Since
22:36
Speaker 10: I'm semi retired right now and I'm advising people, not
22:39
Speaker 10: directly running their money.
22:41
Speaker 7: So it's pretty conservative.
22:42
Speaker 1: But so you said forget or you do make a
22:45
Speaker 1: lot of chance.
22:46
Speaker 10: It's mostly passive. Again for most people, I think that's
22:49
Speaker 10: the way to go.
22:50
Speaker 2: Jim, how we got our merch over here, Scarlett's got
22:53
Speaker 2: our knixt jacket. You're ready to go. Let's go next
22:55
Speaker 2: week record and are going to San Antonio. Why aren't
22:58
Speaker 2: we seeing you in the front row quickly here?
23:01
Speaker 7: Well?
23:01
Speaker 10: First of well, I live in Bucaleck, Bucks County, Tom,
23:06
Speaker 10: so I'm outside of Philly, so you're doing the seventy
23:08
Speaker 10: six or Second secondarily, my sons who were born in
23:11
Speaker 10: Manhattan are diehard Knicks fans, but I'm a Milwaukee Bucks fan.
23:14
Speaker 7: I'm a cheesy I.
23:16
Speaker 2: Was going to hear that. I just had to get
23:18
Speaker 2: that for the record as well.
23:20
Speaker 1: Jim, thank you so much for being.
23:22
Speaker 7: Thank you so much for having me.
23:24
Speaker 2: You're listening to Bloomberg Money. Stay with us. With more
23:27
Speaker 2: to come.
23:28
Speaker 3: After this, we want to stick with the stock of
23:35
Speaker 3: the hour, and that is SpaceX. The Bloomberg Money team
23:37
Speaker 3: writing the following SpaceX ipo whips Musk fans into frenzy.
23:41
Speaker 3: The more the better, one investor told our reporters quote,
23:44
Speaker 3: this feels like the appetizer you have to believe in Elon.
23:47
Speaker 3: I'm willing to overpay for it just to say I'm
23:50
Speaker 3: part of the thing. Bloomberg Money editor Nikki Waller joins
23:53
Speaker 3: us now to discuss So this has become experiential. It's
23:56
Speaker 3: not just about, you know, being part of your portfolio.
23:59
Speaker 3: It's just about being part of the experience and being
24:00
Speaker 3: a Musk fanboy.
24:01
Speaker 11: Yeah, it's part of the conversation, right. This is an
24:04
Speaker 11: ipo we're going to be talking about at cocktail Hour,
24:08
Speaker 11: and this is a place for Elon Musk's fans to
24:11
Speaker 11: show just how much they believe in him and his vision.
24:15
Speaker 3: Is there a unified voice retail voice on SpaceX. I mean,
24:19
Speaker 3: we quoted that person who said that they just need
24:21
Speaker 3: to get in there no matter what. But I wonder
24:23
Speaker 3: how much divergence there is within the voices out there.
24:27
Speaker 11: There is no unified retail voice in SpaceX. I think
24:31
Speaker 11: one of the most interesting things about this, given who
24:34
Speaker 11: Elon Musk is and how strongly people feel about him,
24:38
Speaker 11: the sentiment what people are talking about on Reddit, the
24:41
Speaker 11: places where people go to debate, It's really not about
24:44
Speaker 11: whether or not you like Elon. It's about is this
24:47
Speaker 11: a good investment or not, which is a little bit
24:50
Speaker 11: heartening right now that it's not a culture where it's
24:52
Speaker 11: actually a value conversation.
24:54
Speaker 3: What are the cases traders are saying are the you know,
24:57
Speaker 3: to buy the IPO versus not buying the ipo, especially
25:00
Speaker 3: for a retail investor.
25:02
Speaker 11: I think for retail investors there is the fomo that
25:04
Speaker 11: we're talking about. You want to be in at the
25:07
Speaker 11: beginning in on the ground floor. We saw a lot
25:09
Speaker 11: of people that we've talked to over the week who
25:11
Speaker 11: have sold other stocks to give themselves dry powder for
25:14
Speaker 11: this offering. On the other hand, there are people who
25:18
Speaker 11: are not bothered by not getting in at this stage,
25:21
Speaker 11: and they'll get in a little later even if it
25:22
Speaker 11: is more expensive. And you know, they say they believe that,
25:26
Speaker 11: you know, a lot of these people are TESLA investors.
25:28
Speaker 11: They're going to hold and believe that this will turn
25:31
Speaker 11: up value.
25:32
Speaker 3: For them or it will just end up in their
25:33
Speaker 3: portfolio because it's part of the S and P five hundred.
25:35
Speaker 1: After a year, we're the great many of us.
25:38
Speaker 11: Yes, I know, a year from now it'll be in
25:40
Speaker 11: our target date funds and elsewhere in the four one
25:42
Speaker 11: k if it performs as people hope, all right.
25:45
Speaker 3: Nicki Waller, thank you so much, Bloomberg Money editor Nikki Waller.
25:48
Speaker 3: She is the person behind our bloom Work Money efforts
25:51
Speaker 3: here at Bloomberg.
25:52
Speaker 2: Building out each and every day. What we know is
25:54
Speaker 2: the news flow has been extraordinary. There's been things off
25:57
Speaker 2: the radar, but then things that hit home. Reports this
26:00
Speaker 2: week the update on your social security those older than you,
26:05
Speaker 2: their social security was sobering, to say the least. We
26:09
Speaker 2: get lucky. Jacob Blue is a former US Treasury Secretary.
26:13
Speaker 2: His current shingle out of Columbia University as Professor International
26:17
Speaker 2: in Public Affairs. But far more than that, heritage to
26:21
Speaker 2: Massachusetts politics, working for Tip O'Neill ages ago and the
26:27
Speaker 2: nineteen eighty three Green Span commissioned. So what were you
26:29
Speaker 2: a page fifteen years old working What was it like
26:33
Speaker 2: working on the green Span solution to social security?
26:37
Speaker 12: Good to be with you, Tom in Scarlett. I was
26:40
Speaker 12: about twenty five years old. It was out of college,
26:43
Speaker 12: an early job, and I worked on social security really
26:49
Speaker 12: from the beginning of the time.
26:50
Speaker 13: I worked for the Speaker through eighty three, so that
26:52
Speaker 13: was like.
26:52
Speaker 9: Four years and.
26:56
Speaker 12: The days were very challenging.
27:00
Speaker 13: Now we think we live in the most partisan days ever.
27:03
Speaker 12: The Reagan O'Neill fights were pretty legendary, and the nineteen
27:08
Speaker 12: eighty two congressional campaign was fought out over social security
27:12
Speaker 12: in large part would you or would you not protect
27:14
Speaker 12: social security? We had leaders at the time who avoided
27:19
Speaker 12: poisoning all of the possible solutions as they went through
27:22
Speaker 12: their political balance, and the Greenspan Commission Alan Greenspan played
27:27
Speaker 12: an important role, but it was really a cover for
27:29
Speaker 12: a negotiation between Reagan and O'Neal to figure out what
27:33
Speaker 12: could they agree on, and there were back channel negotiations
27:37
Speaker 12: about what could we do on benefits, what could they
27:39
Speaker 12: do on revenues, And when it came to an end,
27:43
Speaker 12: it was a solution that here we are fifty years
27:46
Speaker 12: later talking about the fund running out fifty.
27:49
Speaker 2: Years, fourteen years. Let's called the brookings Institution right now
27:53
Speaker 2: in Jack Blue front center here. Obviously, through all the
27:56
Speaker 2: services as Secretary of the Treasury, brookingson learn from Simpson Bulls.
28:02
Speaker 2: Eleven of the members said yeah, let's do this, let's
28:05
Speaker 2: do this, recommending that the federal government take drama, dramatic
28:09
Speaker 2: action that number was short of the super majority. It
28:13
Speaker 2: didn't get done. They missed the fourteen votes. Is that
28:17
Speaker 2: where we're heading again to another Simpson bull or with
28:21
Speaker 2: the leadership of you, of Peter or zeg and others
28:24
Speaker 2: associated with the Republican Party, can we get it done
28:27
Speaker 2: so she can get a Social Security check?
28:30
Speaker 12: So the reality is the Trustees report that came out
28:34
Speaker 12: this week says it in twenty thirty two, social Security
28:37
Speaker 12: will run short of paying.
28:38
Speaker 13: The old age benefits fully.
28:40
Speaker 12: It would be a twenty two percent benefit cut if nothing happens.
28:43
Speaker 12: You look combined at the Old Age, Survivor and Disability
28:46
Speaker 12: trust funds, it's only two more years twenty thirty four.
28:49
Speaker 13: It runs short.
28:51
Speaker 12: Having the idea of a twenty to twenty five percent
28:53
Speaker 12: cut and benefits is unacceptable. Most people retiring rely on
28:58
Speaker 12: Social Security for most of their household income. It may
29:02
Speaker 12: not be true in the world that we live in,
29:05
Speaker 12: but for the majority of people retiring, they cannot afford
29:09
Speaker 12: to give up ten or twenty percent of their Social
29:11
Speaker 12: Security check.
29:13
Speaker 9: The challenge is, how do you create a sense of.
29:15
Speaker 12: Urgency around this to deal with it so that you're
29:18
Speaker 12: not on the eve of the trust fund running out
29:21
Speaker 12: of money. Any solution that's really going to work requires
29:25
Speaker 12: some time to take effect. If you do things on
29:28
Speaker 12: the benefit side, even in a way that has a
29:31
Speaker 12: modest impact, long lead time is needed. If you do
29:35
Speaker 12: things on the revenue side the same. You can't just
29:38
Speaker 12: say tomorrow, we're going to close the gap. So it
29:41
Speaker 12: should be treated as an issue for today, not an
29:44
Speaker 12: issue for twenty thirty two. You put this in terms
29:47
Speaker 12: of the presidential calendar, it means that before the end
29:52
Speaker 12: of the first term of the next president something has
29:55
Speaker 12: to be done.
29:55
Speaker 9: Now, there's good work being done.
29:57
Speaker 12: There's a group at the Brookings Institution that put out
30:00
Speaker 12: a bipartisan proposal. It has a combination of tinkering with
30:04
Speaker 12: benefits and tinkering with revenues, doing things that are kind
30:08
Speaker 12: of on the model of the nineteen eighty three package,
30:13
Speaker 12: and it has an impressive number of former Republican and
30:15
Speaker 12: Democratic members of Congress endorsing it. I'm going to be
30:18
Speaker 12: speaking at a conference at Brookings at the end of
30:21
Speaker 12: the month June twenty fourth, where these issues are going
30:23
Speaker 12: to be discussed. I give you a lot of credit
30:25
Speaker 12: for starting the conversation here.
30:27
Speaker 13: Now, it wasn't my idea.
30:29
Speaker 2: Scarlett said, I'm not getting to get check gluid here.
30:32
Speaker 3: This is because as a generation X sergen xer, I
30:34
Speaker 3: just naturally assumed growing up yes that Social Security would
30:37
Speaker 3: be insolvent by the time that I would need to
30:39
Speaker 3: draw upon it, that it wasn't going to be there.
30:41
Speaker 3: It's kind of a Ponzi scheme where I pay into
30:43
Speaker 3: it and nothing's going to come back to me. I
30:44
Speaker 3: just made my peace with that, and most members of
30:46
Speaker 3: my generation have too. Here's a really dumb question, Jack.
30:50
Speaker 3: Can't the government just port print more money to put
30:52
Speaker 3: into Social Security to make the benefits whole?
30:55
Speaker 12: First, on the financing, it never runs out of money
31:00
Speaker 12: because there's payroll taxes coming in on a current basis,
31:04
Speaker 12: it falls short, and the estimate is twenty two percent short.
31:07
Speaker 12: So I think it's unacceptable to have a twenty two
31:10
Speaker 12: percent benefit cut, but not being there is something of
31:14
Speaker 12: a misunderstanding, and I think the challenge is how do
31:17
Speaker 12: you drive the political process to talk about not having
31:21
Speaker 12: the unacceptable outcome of that across the board cut.
31:25
Speaker 3: Can the government just print more money to make it
31:27
Speaker 3: asten to you?
31:28
Speaker 2: Oh?
31:29
Speaker 1: I mean, this is a question that's out there.
31:30
Speaker 12: We have issues that are fiscal challenges. Besides social security.
31:36
Speaker 12: We're running an enormous deficit. Our debt is growing. And
31:40
Speaker 12: I was omb officer management and budget director for three
31:43
Speaker 12: years when we had a balanced budget and a surplus,
31:45
Speaker 12: and we thought we were on a path towards paying
31:48
Speaker 12: back the debt.
31:49
Speaker 13: That's not where we are today.
31:50
Speaker 12: We're in a path where we have to worry will
31:53
Speaker 12: the world support our borrowing needs and our years to come.
31:55
Speaker 9: They're just prinding money is adds to that process.
31:59
Speaker 2: I was going to secure it this in a bit
32:00
Speaker 2: of Scarlet's taken over the show. Let's get to it now.
32:02
Speaker 2: Our debt and our deficit. None of us have ever
32:06
Speaker 2: seen this. This is what I say in interviews, It's
32:08
Speaker 2: what I say in speeches. What do we do after Trump?
32:12
Speaker 2: What is the behavior pattern of our fiscal policy and
32:15
Speaker 2: fiscal dialogue after this president?
32:19
Speaker 12: I think this conversation about social security is going to
32:22
Speaker 12: be the first test. It's the thing that's most pressing
32:26
Speaker 12: in terms of requiring immediate attention, and frankly, on either
32:30
Speaker 12: side of the aisle, do you hear leaders talking about
32:33
Speaker 12: taking the kinds of responsible fiscal policy steps to put our.
32:37
Speaker 13: Whole House in order.
32:38
Speaker 12: Ultimately, it will require a combination of difficult decisions that
32:43
Speaker 12: our history is are better taken on a bipartisan basis
32:46
Speaker 12: than not. That doesn't seem to be in the cards
32:49
Speaker 12: right now. I would say start.
32:51
Speaker 13: With Social Security.
32:52
Speaker 9: Fix social security.
32:53
Speaker 12: Everybody wants social Security to be there, and build a
32:57
Speaker 12: little trust to move to the other conversations. What I
33:00
Speaker 12: worry about is, you know, the legacy of the Trump
33:05
Speaker 12: administration is leaving very little resources to meet urgent needs.
33:09
Speaker 12: The burden of paying the debt is growing as a
33:12
Speaker 12: percentage of the budget. So whether you care about national
33:15
Speaker 12: defense or feeding hungry children, it's going to be harder
33:18
Speaker 12: and harder to pay the bills. So these issues are
33:21
Speaker 12: going to have to be addressed. We have to start somewhere.
33:24
Speaker 3: You know, when we talk about the national deficit, the
33:27
Speaker 3: debt burden that's out there, a lot of people wonder
33:30
Speaker 3: how it connects to their finances, their livelihoods, their lived experience.
33:33
Speaker 3: Elected officials say, you don't want to make it bigger
33:36
Speaker 3: and leave it to your kids and grandkids to shoulder
33:38
Speaker 3: that burden. But what does dealing with it actually look like?
33:41
Speaker 3: What kind of sacrifices would people need to accept making
33:45
Speaker 3: in order to reduce that deficit.
33:47
Speaker 13: Look, the.
33:50
Speaker 12: Things that are driving the federal deficit are we spend
33:55
Speaker 12: more than we collect in revenue. It's not more complicated
33:57
Speaker 12: than that. We spend about twenty three percent of GDP.
34:01
Speaker 12: We raise fifteen to seventy percent of GDP revenues. When
34:05
Speaker 12: we balance the budget, we're twenty one percent of GDP.
34:07
Speaker 12: That's what bol Simpson looked at as a target. We're
34:11
Speaker 12: going to have to talk about taxes. We can't talk
34:14
Speaker 12: exclusively about taxes if you fix social Security. In nineteen
34:18
Speaker 12: eighty three, when we fix social Security, it actually helped
34:21
Speaker 12: the overall fiscal.
34:22
Speaker 9: Health of the country. We didn't do it to balance
34:25
Speaker 9: the budget.
34:25
Speaker 12: But when you make changes that bring more revenue in
34:29
Speaker 12: and even in a modest way certail spending, it helps.
34:32
Speaker 12: So I think there's going to have to be a
34:34
Speaker 12: conversation that's very hard on both sides.
34:37
Speaker 2: I've got with the time running out here, Jack Lou,
34:39
Speaker 2: I've got like eight ways to go. I noticed SpaceX
34:42
Speaker 2: will do it here in a moment, folks, SpaceX out
34:44
Speaker 2: to a New Hi right now. We'll get to that
34:46
Speaker 2: after Professor Lou. I want to go back to the
34:50
Speaker 2: core issue, and this is a bloomberg issue, and the
34:52
Speaker 2: fancy people we talked to I went back. One of
34:55
Speaker 2: the greatest amounts of hate mail I've ever gotten on
34:58
Speaker 2: a chart was explaining to pople that the rich stop
35:01
Speaker 2: paying their fair share of Social Security ages. Ago is
35:05
Speaker 2: one of the lynchpins of social Security reform that the
35:09
Speaker 2: fancy people like me just simply have to put more
35:13
Speaker 2: in it.
35:15
Speaker 12: The fact that we stop paying Social Security payroll taxes
35:19
Speaker 12: when we keep on earning quite a lot of money
35:21
Speaker 12: beyond that is a relatively easy policy solution which won't
35:27
Speaker 12: dramatically affect the standard of living of people who are
35:30
Speaker 12: in a fragile place. I think it's a little unfair
35:33
Speaker 12: to say they don't pay that people don't pay their
35:35
Speaker 12: fair share. We have a progressive benefit structure where your
35:39
Speaker 12: Social Security benefit is a higher percentage of your prior
35:45
Speaker 12: wages and a better return on your payroll taxes than
35:48
Speaker 12: if you're at the high end. I think that's a
35:50
Speaker 12: positive feature. That's a feature, not a bug. I mean,
35:53
Speaker 12: we have a system that does modest redistribution where everybody's
35:57
Speaker 12: in it together. You think about the things that in
36:00
Speaker 12: our society or poverty programs and how they fared in
36:03
Speaker 12: the last few years. Look at Medicaid cut deeply, look
36:07
Speaker 12: at SNAP, the food stamps program cut deeply. There is
36:11
Speaker 12: no longer an AFDC program. It was replaced by Tanith.
36:15
Speaker 12: So if you put things in the basket of poverty programs,
36:19
Speaker 12: they are much more vulnerable. I think to strengthen social security,
36:23
Speaker 12: we should all be in it together. And I think
36:25
Speaker 12: the right thing to do is to raise the earnings limit.
36:28
Speaker 12: But we also have to look at what you do
36:29
Speaker 12: on the benefit side, in some ways taking a long
36:34
Speaker 12: lead time, not doing anything dramatic.
36:36
Speaker 2: Wonderful to see you, look forward to seeing you again.
36:39
Speaker 2: Jack lu with US Folks course, the former Treasury Secretary
36:42
Speaker 2: of the United States, now at Columbia University. Coming up.
36:46
Speaker 2: It's become instantly popular books. I have a book, Scarlett
36:51
Speaker 2: has a book. Elon has books well.
36:55
Speaker 1: That Elon likes reading.
36:56
Speaker 3: There are lots of books about Elon as well, So
36:58
Speaker 3: we can go in any number of ways.
37:00
Speaker 2: My favorite books out there. I'll give you a hint.
37:02
Speaker 2: Mister Isaacson is on the Elon musk there. He is
37:06
Speaker 2: from New York City. On this Friday, Bloomberg Money stay
37:09
Speaker 2: with us. Yeah, welcome back Bloomberg Money from New York City,
37:26
Speaker 2: Scarlett Food and Tom Can somewhat of a special edition. Yes,
37:29
Speaker 2: personal finance were during retirement, Social Security Day and wealth management.
37:34
Speaker 2: I'm not out of triple leverage dollar cash yet. I
37:37
Speaker 2: have not gone long on SpaceX.
37:39
Speaker 3: You're not buying up the triple leveraged single stock SpaceX.
37:43
Speaker 3: Al Right, well, we'll see how that goes. But in
37:44
Speaker 3: the meantime, let's check in with you, hire Ann. She
37:46
Speaker 3: has our Bloomberg television correspondent joining us from the NASAC
37:49
Speaker 3: to give us an update here on what's going on
37:51
Speaker 3: with SpaceX.
37:51
Speaker 1: You hire, Hi, Scarlett.
37:54
Speaker 4: Well, we are seeing shares training just under one hundred
37:57
Speaker 4: and sixty five dollars, well above they're one hundred and
38:00
Speaker 4: thirty five dollars IPREO pricing, giving SpaceX a market value
38:06
Speaker 4: of just over two trillion dollars. That strong debut, though,
38:10
Speaker 4: isn't entirely surprising, given the enormous demand we saw ahead
38:14
Speaker 4: of the offering from both the institutional side and retail investors,
38:18
Speaker 4: with a deal heavily oversubscribes, and now we are hearing
38:23
Speaker 4: the first reports of technical issues. Robinhood putting out a
38:28
Speaker 4: post on X saying that Robinhood saw record breaking traffic
38:31
Speaker 4: today and as a result, some customers experienced latency and
38:35
Speaker 4: intermittent issues. Are saying that essential systems have now recovered.
38:40
Speaker 4: But as I said, not a surprise, given that we
38:43
Speaker 4: knew that the retail demand for this stock was going
38:46
Speaker 4: to be huge.
38:47
Speaker 3: Hi Hira, thank you so much. Ahiad Over at the NASAC.
38:50
Speaker 3: We will be checking in with you throughout the trading day.
38:52
Speaker 2: Tommy Clear, it's about to stop here, you know, SpaceX.
38:55
Speaker 2: I'm sorry. It lifts up, it chearings a little bit,
38:57
Speaker 2: the tensions there are the sweats there. But on first blush,
39:01
Speaker 2: congratulations to these bankers for getting the price right. It's
39:05
Speaker 2: an art, you know. It just doesn't happen with the guys.
39:08
Speaker 3: Is usually right on the first day of trading. It's
39:10
Speaker 3: a matter of whether the price is still right a
39:12
Speaker 3: week from now, or two weeks from now, or two
39:14
Speaker 3: months from now.
39:14
Speaker 2: Huge feedback last week to our book section. What we're
39:17
Speaker 2: going to do today, just to spare it down, is
39:19
Speaker 2: to look at the books of the gentleman in the
39:21
Speaker 2: leather jacket at the New York Stock Exchange. A bit
39:23
Speaker 2: a go, and that would be Elon Musk. I look
39:28
Speaker 2: at these scarlet why don't you run through the three
39:30
Speaker 2: books we've got right?
39:31
Speaker 3: It's the Foundation series by Aaac Isaac as A and
39:35
Speaker 3: apparently this is the book that he put in the
39:37
Speaker 3: red sports card that he shot into space, so he
39:39
Speaker 3: wanted this to be noted for posterity.
39:41
Speaker 2: If you're if you're of a certain vintage, you dream
39:45
Speaker 2: with mister Asimov.
39:46
Speaker 3: It's a science fiction series, That's what Luigi tells me.
39:48
Speaker 3: Our producer hit and his favorite book, by the way,
39:52
Speaker 3: The Hitchhiker's Guide to the Galaxy by Douglas Adams. This
39:56
Speaker 3: really has a lot about the formulating the right questions.
39:59
Speaker 3: And we know that Elon Musk is a big thinker type,
40:01
Speaker 3: so I think that he said that this had a
40:04
Speaker 3: great influence on hate during middle school.
40:06
Speaker 2: And the third book I just think is so important, folks,
40:09
Speaker 2: and poignant here with the death of the gentleman from
40:12
Speaker 2: Brown University, Gordon S. Wood. Gordon Wood was our definitive
40:17
Speaker 2: biographer of Benjamin Franklin. He is the one that brought
40:21
Speaker 2: him to life. And then Walter Isaacson exploded Benjamin Franklin
40:26
Speaker 2: even more into our consciousness. You see if there was
40:29
Speaker 2: the TV series that was out that.
40:31
Speaker 1: Was so good with played Benjamin Franklin.
40:33
Speaker 2: I can't remember right now. You're the celebrity loads down.
40:35
Speaker 7: You should.
40:36
Speaker 1: It's kind of a true question.
40:37
Speaker 2: But the answer is it's a really important statement about
40:42
Speaker 2: America's first entrepreneur.
40:44
Speaker 1: I'd like the way you put that.
40:45
Speaker 3: Yes, Elon Musk appreciates the profile of Benjamin Franklin by
40:49
Speaker 3: Walter Isaacson. We know that Elon Musk admires Ben Franklin
40:53
Speaker 3: deeply for his journey from being an entrepreneur to being
40:56
Speaker 3: an inventor. And that's kind of how Elon Musk sees
40:58
Speaker 3: himself along with you know, all the other hats that
41:00
Speaker 3: he wears.
41:01
Speaker 2: Let us know here at Bloomberg Money. Your thoughts on books.
41:04
Speaker 2: I think one of the ways we go is just
41:06
Speaker 2: get five books from five books from Scarlett would be
41:09
Speaker 2: a good angle, or just one a week.
41:11
Speaker 1: I don't know that I can read five at once.
41:13
Speaker 2: Who says we have to read them? Talk about them.
41:17
Speaker 2: That's the way it is. I'm reading right now. Valley
41:20
Speaker 2: nasaar On Iran Iran Iran, nasr Friandcine Laquai introduced me
41:26
Speaker 2: to him. It is the one volume on Iran. Bloomberg
41:34
Speaker 2: money Good at noon to you Tom Keenan Scarlett for
41:37
Speaker 2: he is really a special edition. Shout out to our
41:39
Speaker 2: team for like talk about rip up the script Wednesday,
41:43
Speaker 2: I'm just blew it up and I called up Elon.
41:46
Speaker 2: I said, can you make the training like I'm taking
41:48
Speaker 2: eighteen minutes ahead of time? And he and his team
41:51
Speaker 2: they nailed it. Its face, it's pretty incredible to a
41:54
Speaker 2: new high right now, we're up twenty six percent off that. Yeah,
41:57
Speaker 2: it's amazing. Lisa Mattayo and your kids on the couch
42:02
Speaker 2: and Robin Hood and their trades got through the look
42:05
Speaker 2: ahead before she retires here this weekend with Bloomberg. This weekend,
42:09
Speaker 2: Lisa Matteo.
42:10
Speaker 14: What do you think you got the phone calls already?
42:12
Speaker 14: So I want to start out with what we're looking
42:13
Speaker 14: ahead to to next week. Middle East of course definitely
42:16
Speaker 14: in focus. You have President Trump saying that the US
42:18
Speaker 14: and Iran are possibly coming closer to a deal.
42:21
Speaker 1: You have sources telling blor Though. Yes, you have sources
42:23
Speaker 1: telling Bloomer it.
42:24
Speaker 14: Could happen at the sidelines of the G seven summit.
42:27
Speaker 14: But now you have the Prime Minister of Pakistan coming
42:30
Speaker 14: out on social media and saying that the texts they've
42:32
Speaker 14: agreed to it, they've reached.
42:33
Speaker 1: That outside confirmation exactly.
42:35
Speaker 14: He posted on social media and he's saying that, you
42:37
Speaker 14: know what, we're going to keep talking with them and.
42:39
Speaker 1: A deal could be reached.
42:41
Speaker 14: His quote saying peace has never been as close as
42:43
Speaker 14: it is now. So you look at oil, you look
42:46
Speaker 14: at Brent, you look at WTI CRUD. They're both down
42:48
Speaker 14: more than three percent. So that's something we're going to
42:49
Speaker 14: be focused on into the weekend.
42:51
Speaker 2: What's an important point to see Brent downs three percent?
42:53
Speaker 2: I mean we're the oscillations this week.
42:55
Speaker 3: Yeah, it absolutely has, and in fact oil prices are
42:57
Speaker 3: set to close the week lower if we continue along
43:00
Speaker 3: this path. There's also quite a bit of data coming out,
43:03
Speaker 3: including on the consumer, which is what we're all concerned.
43:05
Speaker 14: About, correct retail sales. We can't forget about that. And
43:07
Speaker 14: we also have the fom C meaning talking about interest rates.
43:11
Speaker 14: So there's a new Bloomberg survey out today that shows
43:14
Speaker 14: that economists or feeling that rates are going to stay
43:16
Speaker 14: sety throughout twenty twenty six. We'll see the question that
43:19
Speaker 14: is what is Kevin Wortsh going to say it's his first,
43:22
Speaker 14: you know, press conference, So what exactly is he going
43:25
Speaker 14: to say?
43:25
Speaker 1: Bloomberg intelligences.
43:26
Speaker 14: He's going to steer away from any kind of hinting
43:28
Speaker 14: or guidance as far as interest rates.
43:31
Speaker 2: But party at Leases tomorrow night nixt We don't have to.
43:35
Speaker 2: We can stay up there writing.
43:36
Speaker 1: Yourself over at Lisa's place.
43:38
Speaker 2: Yeah, party at Leases and we don't have to go
43:40
Speaker 2: to this Swingay.
43:41
Speaker 1: Tom doesn't care about the FOMC right now.
43:43
Speaker 3: What he cares about is the next watch party at
43:44
Speaker 3: your house over the weekend.
43:46
Speaker 1: Correct.
43:46
Speaker 14: I know, But I can't stay up late because we
43:48
Speaker 14: have Bloomberg.
43:51
Speaker 2: That's we can torture.
43:53
Speaker 1: We can.
43:54
Speaker 2: That's when things we give away.
43:55
Speaker 14: But yes to the game Saturday, so you have to
43:58
Speaker 14: keep in mind for that. Here's the thing if we
44:01
Speaker 14: do not win, and I don't want to put that
44:03
Speaker 14: out there, oh sas, I know, I'm not going to
44:05
Speaker 14: jinx it, but there's a number going out there, and
44:07
Speaker 14: it's two hundred and sixty three million dollars in economic
44:10
Speaker 14: activity they're saying if it comes back to New York.
44:13
Speaker 14: So that's the big number that they're saying but I say, forget.
44:16
Speaker 9: The big number.
44:17
Speaker 14: Let's just get it in five and we can celebrate
44:20
Speaker 14: at the parade.
44:21
Speaker 1: Yes to I like the line of thinking. I like
44:23
Speaker 1: your line of thinking.
44:24
Speaker 14: Another big event. Can't forget World Cup to you? Also
44:26
Speaker 14: happening today, we have the US taking on a Paraguay.
44:29
Speaker 14: That's tonight, and then this weekend, Saturday, you have the
44:32
Speaker 14: Games coming to the New York, New Jersey area. So
44:34
Speaker 14: that's going to be Brazilla, Morocco and that's taking place
44:36
Speaker 14: on Saturday.
44:38
Speaker 2: This is the Bloomberg Money Podcast, bringing you a smart look.
44:42
Speaker 2: Three two. This is the Bloomberg Money Podcast, bringing you
44:46
Speaker 2: a smart look at the force's shaping your financial life.
44:50
Speaker 2: I'm Tom Keane with Scarlet Food. You can watch a
44:54
Speaker 2: show live on Bloomberg TV every Friday at noon Wall
44:57
Speaker 2: Street Time. Subscribe to the pod podcast on Apple, Spotify
45:02
Speaker 2: or wherever you listen, and as always, on the Bloomberg
45:05
Speaker 2: terminal in the Bloomberg Business app