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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: The single best idea and the single best idea always

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Speaker 2: have great conversations through the week, we succeeded and a Friday,

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Speaker 2: you can let's slip away in the summer. But in

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Speaker 2: this odd bull market with the newsflow, the president off

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Speaker 2: to Scotland, it was an eventful Friday. David Rosenberg started

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Speaker 2: us off from Toronto, and what I thought was fascinating

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Speaker 2: was his bringing in inflation, in any kind of persistent inflation,

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Speaker 2: with what the inflation adjusted wage will do. Here's David

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Speaker 2: Rosenberg on the coming job economy.

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Speaker 3: If we see cracks emerge in a labor market, and

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Speaker 3: we see a loosening up in a labor market, the

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Speaker 3: fat is going to feel quite a bit more relaxed

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Speaker 3: that the goods and inflation that we are seeing on

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Speaker 3: the terrifile. If it doesn't feed into wages, that's going

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Speaker 3: to be a comforting sign. So I'd say that the

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Speaker 3: employment number in its entirety, you know the headline, the revisions,

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Speaker 3: what the unemployment rate does, the participation rate, but also

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Speaker 3: keep a firmil on the wage number, because what's really

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Speaker 3: important here, and everybody's waxing on about how great the

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Speaker 3: US economy is doing. I think it's rather mixed. Is

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Speaker 3: that real work based income and inflation adjusted terms is

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Speaker 3: actually contracting. And that is going to be where you know,

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Speaker 3: the inflation from the tariffs is going to hit the

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Speaker 3: wall on the labor market. So nothing, we know. The

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Speaker 3: Fed's not going to do anything. I think they'll be

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Speaker 3: they'll keep their cards close to their vest in terms

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Speaker 3: of any guidance. The key is really going to be

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Speaker 3: the labor market. That's what we're waiting for in terms

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Speaker 3: of what it's going to mean for interest rates.

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Speaker 2: David Roseberg there, and I would just editorialize slipping into

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Speaker 2: a Friday, in a big weekend and all that grocery

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Speaker 2: prices haven't pulled back. I just you know, I'm not

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Speaker 2: am I scientific about it.

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Speaker 1: No.

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Speaker 2: Can I tell you how a bag of potato chips

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Speaker 2: have changed? No, But I've just got this feeling out there,

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Speaker 2: the grocery prices, they're just migrating higher. Maybe that's a

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Speaker 2: whiff of the inflation to come here, maybe even with

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Speaker 2: rents not coming down like they have so far this year,

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Speaker 2: helping out that disinflationary tendency. What a great week of

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Speaker 2: equity analysis. On the show, we finished strong with Alisia

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Speaker 2: Levine at B and Y. Really really astute conversation Alicia

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Speaker 2: Levine on the chosen few of the seven.

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Speaker 1: The top ten stocks in the SMP, you know, are

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Speaker 1: about thirty percent of the SMP, which actually is on

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Speaker 1: the low side as a percentage if you look at

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Speaker 1: other global markets. So in Germany the top ten is

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Speaker 1: over fifty percent, France the same, So if you look

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Speaker 1: at other global markets, the concentration in the US is

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Speaker 1: not unusual. What I will say is this is cyclicals

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Speaker 1: are outperforming defensives here because the industrials are working. The

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Speaker 1: financials are really working because with a deregulatory agenda, you

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Speaker 1: have other parts of the market working. And the mag

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Speaker 1: seven is sort of breaking apart. Right, We're gonna have

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Speaker 1: wind up with a new acronym here. But you need

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Speaker 1: tech to work, and it must work because the behemoths

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Speaker 1: of cash flow and margin growth are driving the rest

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Speaker 1: of the SMP margin. Right, the margins of the Magnificent

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Speaker 1: seven are double the margins of the rest of the

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Speaker 1: S and P. So that has to work, and the

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Speaker 1: cap x spend must produce earnings must It cannot just

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Speaker 1: go into a black hole.

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Speaker 2: An important theme today. Sarah hannat Alpine Sex and What

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Speaker 2: said the same thing as Miss Lavine of B and Y.

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Speaker 2: Basic ideas. Okay, billions to cap X in big tech,

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Speaker 2: but there's got to be proof of concept out there

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Speaker 2: into two thousand twenty six. Our proof of concept is

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Speaker 2: the commute across the nation. Thank you so much for

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Speaker 2: how you listen. Choose to listen to Bloomberg Surveillance on YouTube,

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Speaker 2: We're out there Good Morning ninety nine one FM and

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Speaker 2: Washing it Up the ninety two nine FM in Boston,

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Speaker 2: on these podcasts on Apple and Spotify, and on YouTube podcasts.

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Speaker 2: It's single best idea