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Speaker 1: This is Bloomberg Wall Street Week. We turn our attention

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Speaker 1: to the markets this week.

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Speaker 2: USCPI Nembers reinforcing concerns about inflation, the.

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Speaker 1: Financial stories that shape.

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Speaker 2: Our worth a really different reaction to Mark. Some more

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Speaker 2: indications of just how hot the US economy really is

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Speaker 2: through the eyes of the most influential voices. Katherine Keating,

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Speaker 2: CEO of B and Y Moan, Ryan Winnahan, a Bank

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Speaker 2: of America, Sam Zell, Chairman and founder of Equity Group Investment.

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Speaker 3: Bloomberg Wall Street Week with David Weston from Bloomberg Radio.

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Speaker 2: All Eyes on Washington, on the drama over the federal debt,

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Speaker 2: on whether the FED can take a break from raising raids,

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Speaker 2: and on the two men who are running for president again.

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Speaker 2: This is Boobert Wall Street Week. I'm David Weston. This

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Speaker 2: week Blair Ephron is Center View Partners on the appetite

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Speaker 2: for big deals despite all the uncertainty we.

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Speaker 4: Are in uncharted complicated waters.

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Speaker 2: Former FED Vice chair Randall Quarrels on what went wrong

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Speaker 2: with Silicon Valley Bank, and former BBC and New York

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Speaker 2: Times head Mark Thompson on what streaming and AI mean

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Speaker 2: for the business of news.

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Speaker 5: The news is going through a revolution. That's what's going on.

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Speaker 1: This week.

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Speaker 2: Global Wall Streets spent a lot of its time trying

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Speaker 2: to look around corners like the corner of the debt

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Speaker 2: ceiling and whether it will keep the government from paying

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Speaker 2: the debts it is already run up. The speaker McCarthy

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Speaker 2: traveling to the White House for what may or may

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Speaker 2: not the negotiations.

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Speaker 1: I was very clear with the President we have now

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Speaker 1: just two weeks to go.

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Speaker 2: And the issue followed Treasure sector yell onto the G

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Speaker 2: seven finance ministers meeting in Nigata, Japan at the end

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Speaker 2: of the week.

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Speaker 6: If Congress fails to do that, it really impairs our

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Speaker 6: credit rating. We have to default on some obligation, whether

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Speaker 6: it's treasuries or payments to Social Security.

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Speaker 2: The presidential election may still be eighteen months away, but

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Speaker 2: the two meeting candidates each had his own take on

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Speaker 2: the debt ceialing issue, with President Biden saying it wasn't

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Speaker 2: just the United States that is in the crosshairs.

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Speaker 7: If we default on our debt, the whole world isn't

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Speaker 7: Trump this is a manufactured crisis.

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Speaker 2: But on the other hand, former President Trump appeared on

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Speaker 2: CNN and said, maybe a default isn't that big a deal.

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Speaker 7: I say that the Republicans out there, Congressman, senators, if

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Speaker 7: they don't give you massive cuts, you're going to have

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Speaker 7: to do a default.

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Speaker 2: And in the meantime, consumer price index numbers came in

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Speaker 2: this week as predicted.

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Speaker 8: The month over month changed for both the headline and

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Speaker 8: the core comes in exactly as forecast at four tenths

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Speaker 8: of a percent. That's up on a headline basis over

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Speaker 8: what we saw last month.

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Speaker 2: Which is like vince Reinhardt to doubt that they would

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Speaker 2: do anything to change the Fed's path.

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Speaker 8: Was today's print disqualifying for FED action in June fifteens ers?

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Speaker 2: No, The markets this week were relatively calm, with the

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Speaker 2: S and P five hundred off just three tenths percent,

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Speaker 2: the Nasdaq up for ten hund percent, and the yield

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Speaker 2: and the ten yere up less than two basis points,

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Speaker 2: ending the week at three point four to six six.

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Speaker 2: To take us through what we saw this week, we

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Speaker 2: welcome now Liz Ann Saunders back to Wall Street week.

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Speaker 2: She's Chief Investment Strategies at Charles Schwab and Kristen Britterally,

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Speaker 2: she is head of North America Investments at Citygroup Global Markets.

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Speaker 2: So welcome to both of you. Great you have you, Kristen,

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Speaker 2: thank you for coming to Wall Street. We really good

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Speaker 2: to have you here.

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Speaker 1: It's great to be here.

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Speaker 9: Thank you.

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Speaker 1: Let's start with you.

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Speaker 2: In the equity markets, they seem to be relatively calm,

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Speaker 2: despite that talk about maybe some kerfuffle down in Washington.

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Speaker 9: Yeah, this is really interesting, and I think it's one

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Speaker 9: of the most frequently asked questions that we're getting from

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Speaker 9: our investors. Why has volatility muted? Why are we not

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Speaker 9: seeing any stresses within the equity markets? And I think

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Speaker 9: there's a couple of explanations for this. So the first

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Speaker 9: one is, when you look at the breadth of the

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Speaker 9: equity market rally that we've seen, it's really only seven

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Speaker 9: stocks are driving eighty percent of the year today gains.

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Speaker 9: So this is very concentrated. This is very idiosyncratic. Another

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Speaker 9: way to look at it is you have about ten

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Speaker 9: companies that are driving twenty five percent of the free

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Speaker 9: cashlow generation within the US market. So this is a

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Speaker 9: story about the companies that are really well run as

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Speaker 9: opposed to a breadth and depth of this rally.

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Speaker 2: So LU say, what about that does that narrowness of

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Speaker 2: the rally, if we can call it that in the

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Speaker 2: stock market, does that make you nervous?

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Speaker 10: Well, it doesn't suggest as healthy a market as if

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Speaker 10: you had the soldiers at the front line and not

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Speaker 10: just the generals at the front line. I think there's

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Speaker 10: a little bit of muscle memory in a knee jerk

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Speaker 10: move that goes back into names like this when people

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Speaker 10: think back to those that group of stocks, many of

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Speaker 10: the same ones represented almost a defensive place to go

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Speaker 10: during the worst part of the pandemic. But of course

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Speaker 10: what it represented fundamentally at that time was those represented

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Speaker 10: the only ecosystems in which we were living when everything

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Speaker 10: was shut down. I think this time it's a bit different.

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Speaker 10: Chris talked about the large size and liquidity and cash

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Speaker 10: generation of these companies. You can also see the dominance

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Speaker 10: of their outperformance really kick into high gear when we

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Speaker 10: saw the failure of SVB Bank and the ripple effects,

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Speaker 10: So I think that really was the push there. You

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Speaker 10: can have an environment like that last a while and

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Speaker 10: it doesn't necessarily have to be calamitous. There are times

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Speaker 10: where you can see some catched down by the big

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Speaker 10: dominant names. While you're seeing improving breadth and better participation

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Speaker 10: on the way back up. That's a bit of what

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Speaker 10: was going on last fall when the market had its low.

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Speaker 10: But I think concentration risk in terms of what is

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Speaker 10: the manifestation actually for investors, I think investors should be

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Speaker 10: mindful of not chasing that and ending up with too

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Speaker 10: much concentration risk.

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Speaker 2: So the equity markets can't get too far away from earnings.

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Speaker 2: And we're well into earnings now towards the end of

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Speaker 2: this season, and we looked act to our elves. You

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Speaker 2: know that we have twenty four l's of which we

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Speaker 2: have one from City actually, and they're protecting overall I

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Speaker 2: think two hundred six dollars at the end of the

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Speaker 2: year earnings for share, which is down about eight percent

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Speaker 2: from last year.

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Speaker 1: Where are you on that projection?

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Speaker 9: We're very much aligned to that that we started this

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Speaker 9: year about looking at about a ten percent earnings contraction.

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Speaker 9: We're now in the ballpark of about eight to ten percent.

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Speaker 9: And I think when we look at Q one earnings,

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Speaker 9: they were certainly better than feared, which is why we

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Speaker 9: could see some reduction of that number. But I think

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Speaker 9: what we have to keep in mind is when we

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Speaker 9: look at the US equity market, we have seven out

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Speaker 9: of eleven sectors that are already in a profits recession.

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Speaker 9: When we look at what the FED has done already,

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Speaker 9: the five hundred basis points of great hikes, the quantitative tightening,

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Speaker 9: the stresses in the banking sector that are going to

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Speaker 9: lead to tightening of credit conditions, this is something that

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Speaker 9: has us very cautious. It's more difficult for companies to

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Speaker 9: be profitable in this environment. It's more challenging on the consumer,

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Speaker 9: and the idea that this isn't going to flow through

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Speaker 9: to corporate earnings in a more material way is something

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Speaker 9: that we just don't believe. So playing a little defense

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Speaker 9: here and expecting some downside is what we're advising our investors.

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Speaker 2: We're either in or rapidly approaching a federal debt crisis,

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Speaker 2: as the so called X DAYE when the government runs

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Speaker 2: out of money is just over two weeks away now.

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Speaker 2: With a default, something most everyone agrees would be a catastrophe.

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Speaker 2: And there are some indications in the T bill and

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Speaker 2: the CDs markets that at least some investors are starting

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Speaker 2: to get worried, but you couldn't really tell that from

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Speaker 2: the equity markets. This is not the first time we

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Speaker 2: have been here, and we asked our colleague Michael McKee

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Speaker 2: to compare what we're seeing now with what we saw

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Speaker 2: in twenty eleven when we had a similar close brush

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Speaker 2: with disaster.

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Speaker 8: Industrious David would rather hope that history doesn't repeat or rhyme.

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Speaker 8: For some time, we've been told that nothing's going to

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Speaker 8: happen on the debt ceiling until we get to the

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Speaker 8: last minute or until Wall Street melts down, and it

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Speaker 8: does seem we're getting close on both counts. Here's what

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Speaker 8: JP Morgan Chase CEO Jamie Diamond told us just a

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Speaker 8: few days ago.

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Speaker 11: Actual default that is potentially catastrophic, and you can go

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Speaker 11: through a million ways, but everyone, anyone's anyone knows that

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Speaker 11: Cass Tropick and I don't think it's going to happen

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Speaker 11: because it gets cash Rowberick, and the close you get

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Speaker 11: to it, you will have panic. Markets get volatile, maybe

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Speaker 11: there's Doc mar go down. The treasury markets will have

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Speaker 11: their own problems.

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Speaker 1: It's amazing. You already have certain T bills.

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Speaker 11: Trading three percent and right next to one five percent.

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Speaker 1: This is not good.

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Speaker 8: We have seen this movie before the debt ceiling taken

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Speaker 8: hostage for spending cuts a number of times over the

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Speaker 8: past couple of decades. Twenty and eleven is one time

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Speaker 8: when investors don't want history to rhyme. They went down

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Speaker 8: to the wire as President Obama fought the idea of

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Speaker 8: giving in to extortion on the debt ceiling. Then markets collapsed.

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Speaker 8: The S and P five hundred went down about twenty

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Speaker 8: percent and stayed down for quite some time before starting

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Speaker 8: to go back up again.

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Speaker 2: Losenne Sanders, Charles Schwab, and Chrissian Bitterly of City are

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Speaker 2: still with us, and let me go to you on this.

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Speaker 2: Why aren't we seeing more reaction in the equity markets

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Speaker 2: than we have so far in the dead ceiling.

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Speaker 10: I hope it's not just complacency and a correct assumption

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Speaker 10: that although they can will probably inevitably kick to the

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Speaker 10: eleventh hour fifty nine minute. That's just the way things

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Speaker 10: are done, particularly on this subject. But so my guess

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Speaker 10: is just complacency and an assumption that something will get done.

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Speaker 10: I'd hate to think we have to go down the

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Speaker 10: same path of twenty eleven, which is also a kin

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Speaker 10: for different reasons of what happened in two thousand and

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Speaker 10: eight with ultimately the passage of TARP, you needed that

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Speaker 10: riot moment in markets. I think I agree with Jamie Diamond.

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Speaker 10: I think it would be cataclysmic. I don't think anybody

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Speaker 10: should be cavalier about letting it happen, whether it's for

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Speaker 10: you know, political gain or whatever reason. My concern with

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Speaker 10: regard to twenty eleven macro conditions are very different. We

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Speaker 10: were on an upswing in the economy, having come out

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Speaker 10: of the global financial crisis. We weren't dealing with an

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Speaker 10: inflation problem or having come out of the most aggressive

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Speaker 10: tightening cycle in forty years. And then there's certainly more

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Speaker 10: vitriol right now. So I think we all should be

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Speaker 10: worried about it, but I think ultimately something will get done.

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Speaker 2: Okay, thank you so very much to Leazenne Sanders or

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Speaker 2: Charles schwa for being back with us, and Kristin Bitterly

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Speaker 2: for coming to us from city. Partisan fights over the

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Speaker 2: dead ceiling are nothing new for Wall Street those Rockeiser

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Speaker 2: talked about it in March of nineteen ninety six when

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Speaker 2: Congress ended up with a short term stop gap spending

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Speaker 2: bill to keep the US from defaulting. Back then, if

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Speaker 2: you remember the top movie in the country was Mike

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Speaker 2: Nichols The Bird Cage. Coming up, Where have all those

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Speaker 2: deals gone and are they coming back? We're going to

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Speaker 2: ask Blair Effron, a center of your partners, about whether

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Speaker 2: it has to do with credits tightening or whether they're

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Speaker 2: bigger factors such as, for example, what's going on Washington

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Speaker 2: on the debt ceiling. All of that is coming up

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Speaker 2: next on Wall Street Week, and we are on Bloomberg.

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Speaker 3: This is Bloomberg Wall Street Week with David Weston from

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Speaker 3: Bloomberg Radio.

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Speaker 2: Credit it's what makes the financial world go round, and

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Speaker 2: that world is concerned there may be less credit available.

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Speaker 3: One of the big questions will be to what extent

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Speaker 3: does credit titan and you know, if that is material

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Speaker 3: that will have a drag on the economy.

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Speaker 2: With CEO's mentions of credit tightening spiking this earning season,

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Speaker 2: the series of regional bank shocks made matters only worse

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Speaker 2: as bankers struggling to stay afloat, had little appetite to

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Speaker 2: take on the risk of extending credit.

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Speaker 12: A banking system which has government guarantees where people put their.

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Speaker 8: Money in a trust relationship if they suffer significant losses,

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Speaker 8: that's what causes concern.

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Speaker 2: But as important as credit is, it's just that hard

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Speaker 2: sometimes to get a handle on it in real time.

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Speaker 2: The fed's backward looking numbers on bank commercial and industrial

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Speaker 2: loans fell sharply in January and February, but started to

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Speaker 2: recover in March, only to turn down again in April.

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Speaker 2: And the forward looking Senior Loan Officer Opinion survey Or

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Speaker 2: SLUICE numbers this week pointed to further tightening, which FED

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Speaker 2: Chair J. Powell got a peak at last week and

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Speaker 2: told us in advance was in line with what they expected.

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Speaker 4: In mid size banks have some of them had been

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Speaker 4: tightening their lending standards.

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Speaker 9: Banking data will show that lending has continued to grow,

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Speaker 9: but the pace has.

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Speaker 1: Been slowing really since the second.

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Speaker 2: Half of last year. And to take us through the

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Speaker 2: world of credit and what it may or may not

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Speaker 2: be doing to the deal pace, we turned out of

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Speaker 2: somebody who really knows that space awfully well.

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Speaker 1: He's Blair Efron.

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Speaker 2: He is a partner and co founder of Centerview Partner.

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Speaker 2: So welcome back to Walter.

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Speaker 4: Great to have you see.

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Speaker 1: Okay, let's start with credit.

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Speaker 2: Because it was one thing that does affect the pace

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Speaker 2: of deals. Is it affecting it from your point view

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Speaker 2: right now?

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Speaker 4: Absolutely, it's getting better. Still constrained fourth quarter of twenty two,

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Speaker 4: you had nothing. Today, you actually have the markets loosening

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Speaker 4: up for the right deals, ignishing data point. For example,

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Speaker 4: the largest LBO in the past six seven eight months

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Speaker 4: was a deal with Blackstone and Emerson for their climate business,

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Speaker 4: fourteen billion dollar deal. No bank that was available. The

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Speaker 4: private direct lending market stepped in firms like Apollo, Blackstone,

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Speaker 4: KKR Areas that did five and a half billion of

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Speaker 4: financing to see it through. Half of that has been

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Speaker 4: replaced in the past week by the banks. So it

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Speaker 4: really depends on the credit and it depends on what

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Speaker 4: the deal is, but there is absolutely credit available. Obviously,

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Speaker 4: the key is it's much more expensive. You should assume

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Speaker 4: for a private equity transaction it's five hundred basis points

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Speaker 4: or so higher than it would have been a year

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Speaker 4: and a half ago, and for a corporate deal two

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Speaker 4: hundred one hundred fifty basis points. And that leads to

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Speaker 4: the next issue, which is how you price an asset

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Speaker 4: for sale. And obviously with multiple staying high and elevated

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Speaker 4: and at eighteen times PE, it's the same as it

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Speaker 4: was last year, same as it was in twenty one,

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Speaker 4: But yet your returns in any transaction are more difficult.

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Speaker 4: So you have to think about how to get the

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Speaker 4: buyer and the seller to come to agreement. Not easy.

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Speaker 2: As I recalled center of you might have had something

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Speaker 2: to do with the Emerson deals like we did.

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Speaker 4: You can give us a plug, I won't.

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Speaker 1: Okay, we'll do that.

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Speaker 2: So let's go to that question of buyers and sellers

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Speaker 2: and where they think the price is. Because some of

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Speaker 2: those prices are coming down. Valuations are affected by interest

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Speaker 2: rates and also some slowing of the economy in some places,

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Speaker 2: have the sellers gotten their heads around the fact that

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Speaker 2: their price may be lower.

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Speaker 4: They finally starting to do that, which is actually why

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Speaker 4: I think there's more discussion. You don't see it yet

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Speaker 4: in terms of announcements, but you see companies thinking more

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Speaker 4: about M and A as part of their thinking in

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Speaker 4: twenty three, and I would venture to say that as

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Speaker 4: we exit the year twenty three and get into twenty four,

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Speaker 4: you'll see activity actually start to pick up quite a bit.

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Speaker 2: So you think it will come back? Do you think

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Speaker 2: we'll reach the levels we had before? Because we have

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Speaker 2: some record levels.

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Speaker 4: Oh boy, that was high. You think about a five

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Speaker 4: trillion dollars peak market, that probably unlikely. But the idea

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Speaker 4: that you'll have a stable global M and a market

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Speaker 4: of four trillion dollars or so every year, I think absolutely.

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Speaker 4: And what you find out generally about M and A

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Speaker 4: David now is it's less prone to cyclicality. It's part

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Speaker 4: of a company's core strategy. Most companies are actually very

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Speaker 4: good at it. And when you're thinking about new avias

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Speaker 4: and growth new areas for your business, you're thinking about

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Speaker 4: the pace of disruption and how you combat that. It

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Speaker 4: becomes important for most companies to want to consider.

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Speaker 2: When you've been on with us before, you've emphasized Blair

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Speaker 2: that uncertainty is one of the biggest factors in determining

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Speaker 2: whether companies want to do deals or not. Where are

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Speaker 2: we uncertain? Because there seems to be a lot of

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Speaker 2: uncertainty around right now.

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Speaker 4: We are in uncharted complicated words starting with obviously the

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Speaker 4: dead ceiling, which way to come back to the banking

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Speaker 4: environment more generally, and whether you think we're a slow

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Speaker 4: down or something more severe in the coming months. I

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Speaker 4: happen to be in a slow down camp. I think

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Speaker 4: there's a lot of resiliency that we don't account for.

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Speaker 4: It's a lot of tailwind that will lead stability. But

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Speaker 4: that uncertainty clearly is an issue when you think about

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Speaker 4: doing a transaction. And remember you want to be able

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Speaker 4: to think of a dead transaction when there's a macrotail wind,

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Speaker 4: because it covers up some of your assumptions that may

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Speaker 4: not pan out. It's just people do better in a

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Speaker 4: growth environment. Any company does, so clearly an issue. And

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Speaker 4: I think until the dead ceiling situation resolves, and that's

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Speaker 4: with the question mark, I hope it'll be weighing pretty heavily.

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Speaker 1: We've had this dead ceiling situation before.

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Speaker 2: Two thousand eleven was the time we had a downgrade

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Speaker 2: actually from it, and we have a lot of people,

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Speaker 2: the president of that States as well as Mitch will Connell

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Speaker 2: agreeing we can't have a default. We actually had formed

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Speaker 2: person tru I'm saying this week, well, maybe it wouldn't

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Speaker 2: be that bad a thing. Well, how does it figure

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Speaker 2: in the minds of people doing deals, CEOs and others

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Speaker 2: thinking about deals? Are they taking into account? Do they

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Speaker 2: take it seriously?

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Speaker 4: So everybody's takend seriously let's get away from the deal

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Speaker 4: market for a second. Let's talk about a company's performance.

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Speaker 4: I think the debt situation, the debt ste situation already

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Speaker 4: is having a big impact. If you think about driving

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Speaker 4: a car, you're a passenger and the driver goes ninety

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Speaker 4: miles an hour and then slows down, you're gonna think

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Speaker 4: twice about getting back in the car, which you have

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Speaker 4: already Simply the spectra of its probably hit GDP growth

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Speaker 4: thirty basis points. It's probably hit jobs two hundred and

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Speaker 4: fifty thousand, according to CEA, the Council of Economic Advisors,

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Speaker 4: and then you start to think about what the impact

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Speaker 4: is if you go over and have a default that

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Speaker 4: is measured in days and weeks. The fact of the

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Speaker 4: matter is that's a half a million jobs, that's a

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Speaker 4: half a point of GDP growth, and that's before you

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Speaker 4: start to think of the absolutely urgent consequences of something

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Speaker 4: that's protracted.

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Speaker 2: We also have regulatory uncertainty, particularly in the antitrust area,

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Speaker 2: both for the FTC and from the Justice Department. Bloomberg

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Speaker 2: actually had a piece this week saying that that really

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Speaker 2: is deterring or some of the CEOs from moving forward

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Speaker 2: because you're not sure whether we're going to approve, but

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Speaker 2: even more than that, how long it will take. There's

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Speaker 2: a lot of uncertainty running. Are you dealing with that

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Speaker 2: as you advise.

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Speaker 4: Absolutely, David, And if you just it shows up in

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Speaker 4: the numbers. Year to date we have I think fourteen

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Speaker 4: deals over ten billion dollars versus last year was twenty

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Speaker 4: four deals. But you account for that in your thinking.

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Speaker 4: If it's going to take eighteen months for a transaction

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Speaker 4: to close, you spend a lot of time thinking about

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Speaker 4: how both the acquired business and the acquiring company manage

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Speaker 4: their own businesses, keep the base business performing well, and

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Speaker 4: try to minimize uncertainty for all the employees. You can

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Speaker 4: think about different structures. If you stock, for example, in

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Speaker 4: a transaction, the selling company has more of a vested interest,

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Speaker 4: if you will, more of a meeting the minds in

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Speaker 4: terms of what it takes to do well. And I'd

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Speaker 4: also say you think about the whole question of synergy

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Speaker 4: in a different way. I think that you need to

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Speaker 4: be more conservative, certainly on cost, and you need to

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Speaker 4: be more aggressive and absolutely committed to the idea that

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Speaker 4: the transaction leads to better growth, which leads to job creation,

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Speaker 4: which leads to potentially better outcomes for consumers. All this

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Speaker 4: factors into the thinking. I would also finally say that

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Speaker 4: it's much more the administration using a megaphone than actually

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Speaker 4: litigating that people are attentive to. But all that said,

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Speaker 4: smart deals are still happening and they will continue to happen.

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Speaker 2: Blair, it's great to have you back on Walshiver. Thank

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Speaker 2: you so much for having me, David. That's Blair Efron

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Speaker 2: a Center View Partners.

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Speaker 1: Coming up.

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Speaker 2: Generative AI just the latest challenge to the news business model.

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Speaker 2: We talk with the man who led the BBC and

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Speaker 2: then the New York Times, Mark Thompson, about whether there

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Speaker 2: is a way to make a serious business out of

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Speaker 2: serious news.

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Speaker 1: That's next on Wall Street Week on Bloomberg.

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Speaker 3: This is Bloomberg Wall Street Week with David Weston from

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Speaker 3: Bloomberg Radio.

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Speaker 1: This is Wall Street. I'm David Weston.

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Speaker 2: We're all trying to figure out what to make of

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Speaker 2: generative AI and what it will do to all of

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Speaker 2: our lives for those engaged in the business of gathering

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Speaker 2: and reporting news. It's just the latest and a series

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Speaker 2: of innovations that have also posed challenges. Things like streaming

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Speaker 2: video and social media and even the Internet itself. Mark

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Speaker 2: Thompson is someone who has spent his career addressing these

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Speaker 2: changes and figuring out how to make them tools instead

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Speaker 2: of threats. He was Director General of the BBC and

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Speaker 2: then President and CEO of The New York Times. Is

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Speaker 2: now chairman of Ancestry, that is the largest for profit

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Speaker 2: genealogy company in the world.

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Speaker 1: And we're welcome now back to Bloomberg. Mark, great to

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Speaker 1: have you here.

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Speaker 2: Good to see that is so this week we're struck

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Speaker 2: by the fact that at the same time we have

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Speaker 2: BuzzFeed going out of business, we have Eural Chap New

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Speaker 2: York Times starting a.

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Speaker 1: Really big deal with Google for cash.

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Speaker 5: What is going on, Well, the news is going through

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Speaker 5: a revolution, That's what's going on. And the revolution's full

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Speaker 5: of surprises. When I got to the New York Times

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Speaker 5: in twenty twelve, so just over ten years ago, everyone

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Speaker 5: told me the BuzzFeed was going to become the New

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Speaker 5: York Times or the Huffington Post was going to become

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Speaker 5: the New York Times. A decade on, the game's really changed.

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Speaker 5: It's changed both in the legacy players, some of the

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Speaker 5: legacy players, at least the Times The All Street Journal,

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Speaker 5: the Washington Post might be examples of that kind of

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Speaker 5: got their act together and began to think hard about

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Speaker 5: digital and I think in the early twenty twenties look

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Speaker 5: pretty secure. Whereas the insurgents, the new guys who had

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Speaker 5: no legacy hang ups, they had no print or broadcast

442
00:22:11,640 --> 00:22:14,480
Speaker 5: TV to worry about. They've kind of got into trouble.

443
00:22:14,520 --> 00:22:17,360
Speaker 5: It's turned out to be much much harder than they

444
00:22:17,400 --> 00:22:20,280
Speaker 5: thought to build a brand, to keep your audience, and

445
00:22:20,320 --> 00:22:24,160
Speaker 5: above all, to figure out ways of turning big audiences

446
00:22:24,400 --> 00:22:28,040
Speaker 5: billions of clicks into dollars. That's proven very hard for them.

447
00:22:28,400 --> 00:22:30,800
Speaker 2: What does that say about incumbency when it comes to

448
00:22:30,960 --> 00:22:32,720
Speaker 2: I'm talking about real news? Now, there are things that

449
00:22:32,800 --> 00:22:35,040
Speaker 2: call themselves and news says befo. We're talking about real reporting.

450
00:22:35,160 --> 00:22:37,240
Speaker 2: What does it say because in fact, there are all

451
00:22:37,280 --> 00:22:39,920
Speaker 2: of those things that you've mentioned and more that really

452
00:22:40,119 --> 00:22:41,680
Speaker 2: sprang up. We thought they were going to be a

453
00:22:41,680 --> 00:22:44,240
Speaker 2: great new thing, and they've gone now. And yet we

454
00:22:44,280 --> 00:22:46,520
Speaker 2: do have New York Times, although I'll say Financial Times

455
00:22:46,520 --> 00:22:48,720
Speaker 2: in Wall Street Journal, who soon you're doing quite well?

456
00:22:48,720 --> 00:22:49,040
Speaker 1: Thank you?

457
00:22:49,160 --> 00:22:49,560
Speaker 12: That's right.

458
00:22:49,760 --> 00:22:51,119
Speaker 5: Well, I think it's a few things to say. I mean,

459
00:22:51,440 --> 00:22:55,679
Speaker 5: what one question is when was the last time in

460
00:22:55,760 --> 00:22:58,400
Speaker 5: the free world we saw the creation of a global

461
00:22:58,440 --> 00:23:01,480
Speaker 5: news brand. Are truly global news brand, not a specialist

462
00:23:02,040 --> 00:23:05,320
Speaker 5: business led news brand. Bloomberg is a really good example

463
00:23:05,359 --> 00:23:07,639
Speaker 5: of that, but a kind of global general news brand.

464
00:23:07,800 --> 00:23:13,040
Speaker 5: It's CNN in the early eighties. So it's really really

465
00:23:13,160 --> 00:23:16,320
Speaker 5: hard to do, and in a great continental country like

466
00:23:16,359 --> 00:23:19,159
Speaker 5: the United States, even to become a national news brand.

467
00:23:20,960 --> 00:23:24,760
Speaker 5: So legacy in terms of brand and trust and name

468
00:23:24,800 --> 00:23:30,320
Speaker 5: recognition is fantastically valuable. But it's not enough. It's like

469
00:23:30,600 --> 00:23:34,360
Speaker 5: you know, it's it's necessary, but not sufficient, it seems,

470
00:23:34,600 --> 00:23:36,560
Speaker 5: because you always have to work out the economics of

471
00:23:36,560 --> 00:23:40,480
Speaker 5: a very different media environment. And what's interesting is I

472
00:23:40,480 --> 00:23:43,800
Speaker 5: would say that the big TV brands in this country,

473
00:23:44,440 --> 00:23:47,960
Speaker 5: tv news brands to include CNN, have yet to figure

474
00:23:47,960 --> 00:23:52,720
Speaker 5: that out, and that their business, their legacy business, still

475
00:23:52,960 --> 00:23:55,359
Speaker 5: very profitable, is dying.

476
00:23:55,840 --> 00:23:57,760
Speaker 1: It's dying, and it's not.

477
00:23:57,760 --> 00:24:02,480
Speaker 5: Yet clear that they've got credible plans yet for the

478
00:24:03,200 --> 00:24:05,280
Speaker 5: news ship that's going to take over when the old

479
00:24:05,280 --> 00:24:05,960
Speaker 5: ship sinks.

480
00:24:06,520 --> 00:24:09,560
Speaker 2: So talking about video news for a moment, which I

481
00:24:09,640 --> 00:24:14,720
Speaker 2: know more about. We had obviously the broadcast networks and

482
00:24:14,760 --> 00:24:16,680
Speaker 2: there were licensed by the government, there was this motor

483
00:24:16,760 --> 00:24:18,960
Speaker 2: on your business because you needed a license. That gave

484
00:24:19,040 --> 00:24:21,879
Speaker 2: rise to cable and people were terribly afraid of cable.

485
00:24:22,240 --> 00:24:24,680
Speaker 2: That gave rise to CNN. Actually, and then we went

486
00:24:24,800 --> 00:24:28,359
Speaker 2: on beyond that. Now we have streaming video, so there's

487
00:24:28,440 --> 00:24:31,600
Speaker 2: more out of it available out there. What does streaming

488
00:24:31,680 --> 00:24:34,000
Speaker 2: video potentially mean for news? Is that a risk and

489
00:24:34,080 --> 00:24:34,920
Speaker 2: opportunity both?

490
00:24:35,800 --> 00:24:36,000
Speaker 8: Well.

491
00:24:36,240 --> 00:24:40,000
Speaker 5: I think if we just talk as kind of as newspeople,

492
00:24:41,160 --> 00:24:46,200
Speaker 5: some stories are best consumed as video. And actually even

493
00:24:46,440 --> 00:24:49,040
Speaker 5: newspapers like the New York Times and realized that you'll

494
00:24:49,080 --> 00:24:51,680
Speaker 5: see a lot of video on the New York Times. Obviously,

495
00:24:51,760 --> 00:24:54,560
Speaker 5: short form video, which is kind of specially designed for

496
00:24:54,640 --> 00:24:59,359
Speaker 5: smartphones and is very snackable, has taken over the world.

497
00:24:59,640 --> 00:25:03,120
Speaker 5: I think for the big the big players, if you'll

498
00:25:03,119 --> 00:25:06,560
Speaker 5: see an end for example, if you're Bloomberg, the question

499
00:25:06,600 --> 00:25:12,320
Speaker 5: of whether you want to offer users snackable little pieces

500
00:25:12,920 --> 00:25:15,480
Speaker 5: forty five seconds, a minute, a minute and a half,

501
00:25:15,880 --> 00:25:18,959
Speaker 5: or whether you want to try and somehow port the

502
00:25:19,080 --> 00:25:26,199
Speaker 5: longer the show ten to fifteen minutes, the anchor, the conversation,

503
00:25:26,320 --> 00:25:29,680
Speaker 5: whether that has a streaming role is unproven.

504
00:25:30,280 --> 00:25:33,720
Speaker 1: And now i'd have all that we have generative AI. Yeah,

505
00:25:33,760 --> 00:25:34,400
Speaker 1: and what that means.

506
00:25:34,400 --> 00:25:36,720
Speaker 2: You saw Buri Dealer's remarks recently saying he thinks they

507
00:25:36,800 --> 00:25:40,439
Speaker 2: could really pose a substantial threat to news. What do

508
00:25:40,480 --> 00:25:42,320
Speaker 2: you make of general AI or is it just too

509
00:25:42,400 --> 00:25:43,000
Speaker 2: early to know?

510
00:25:43,440 --> 00:25:45,320
Speaker 5: It's I think, I mean, I think it's too early

511
00:25:45,440 --> 00:25:47,960
Speaker 5: to know. It is extraordinary though. I was at a

512
00:25:47,960 --> 00:25:54,040
Speaker 5: board meeting branches to yesterday and what our engineers had

513
00:25:54,160 --> 00:25:59,640
Speaker 5: used GPT for to hack the beginnings of a version

514
00:25:59,800 --> 00:26:02,640
Speaker 5: of the answersty product where you can ask it questions.

515
00:26:02,640 --> 00:26:06,520
Speaker 5: You can say, tell the story of my grandfather and

516
00:26:06,600 --> 00:26:11,080
Speaker 5: it will create either a thousand words of pros or

517
00:26:11,119 --> 00:26:16,679
Speaker 5: it will create a slideshow with actually frankly astonishingly convincing

518
00:26:16,760 --> 00:26:20,199
Speaker 5: captions like that in seconds two and three seconds. So

519
00:26:21,440 --> 00:26:24,399
Speaker 5: I think if it's an immense opportunity to solve some

520
00:26:24,440 --> 00:26:28,160
Speaker 5: problems for us, you know, at Ancestry trying to bring

521
00:26:28,200 --> 00:26:31,680
Speaker 5: these family trees to life into human stories with pictures

522
00:26:31,680 --> 00:26:34,480
Speaker 5: and seals, and where a machine is doing it, you know,

523
00:26:34,840 --> 00:26:38,680
Speaker 5: in a fairly safe environment. You know, it's all fairly formulaic.

524
00:26:38,920 --> 00:26:42,040
Speaker 5: That's very exciting. Clearly, there are threats, though, and I

525
00:26:42,080 --> 00:26:46,639
Speaker 5: would say one real hope for us is that AI,

526
00:26:46,920 --> 00:26:50,879
Speaker 5: both generitive and other forms of AI, Machine learning and

527
00:26:50,960 --> 00:26:54,680
Speaker 5: other forms of AI will really help us solve that problem.

528
00:26:54,800 --> 00:26:55,320
Speaker 1: If I'm a.

529
00:26:55,280 --> 00:26:57,440
Speaker 5: Consumer of how do I find the media I want?

530
00:26:58,320 --> 00:27:02,960
Speaker 5: It's Friday evening. I want something entertaining, you know I

531
00:27:03,000 --> 00:27:05,280
Speaker 5: wanted Pg. Thirteen. I don't want too much of violence.

532
00:27:05,840 --> 00:27:06,400
Speaker 1: What have you got?

533
00:27:06,440 --> 00:27:08,520
Speaker 5: What have you got? And actually even the very best

534
00:27:08,520 --> 00:27:10,320
Speaker 5: screams in the world don't do a good job of

535
00:27:10,320 --> 00:27:13,359
Speaker 5: telling me in my view, and I need to bring

536
00:27:13,440 --> 00:27:15,920
Speaker 5: friends and go through reviews and rested to work out.

537
00:27:16,280 --> 00:27:18,320
Speaker 5: I think that business of whether it's finding a new

538
00:27:18,400 --> 00:27:20,600
Speaker 5: story on a smartphone or what you want to watch

539
00:27:20,640 --> 00:27:23,280
Speaker 5: in the evening, AI can really help us with that.

540
00:27:24,200 --> 00:27:29,159
Speaker 5: But a threat. Imagine an algorithm which could every morning

541
00:27:29,160 --> 00:27:34,200
Speaker 5: at seven ingest all of the news in the world

542
00:27:34,320 --> 00:27:37,600
Speaker 5: and then turn it into we could use your voice

543
00:27:37,680 --> 00:27:43,000
Speaker 5: David Western, and you the consumer could ask your smartphone

544
00:27:43,040 --> 00:27:48,359
Speaker 5: in the kitchen to ask David what's happened today? And

545
00:27:48,440 --> 00:27:51,320
Speaker 5: David's not quoting the New York Times or the Washington

546
00:27:51,359 --> 00:27:58,400
Speaker 5: Post or CNN or MSNBC. David is ingesting it all,

547
00:27:58,520 --> 00:28:02,600
Speaker 5: paraphrasing it all, and is ready to interact with you.

548
00:28:03,560 --> 00:28:07,320
Speaker 5: What's happening in Ukraine? What are they? Did the Russians

549
00:28:07,320 --> 00:28:09,160
Speaker 5: retreat at the backmotor say what happened?

550
00:28:09,440 --> 00:28:09,880
Speaker 1: Why?

551
00:28:10,080 --> 00:28:12,560
Speaker 5: What does that mean? And David can answer all those

552
00:28:12,640 --> 00:28:15,040
Speaker 5: questions and like they'll pay you a good they'll pay

553
00:28:15,080 --> 00:28:15,560
Speaker 5: you a good fee.

554
00:28:15,720 --> 00:28:19,640
Speaker 1: Well. But like every powerful tool, it can be used

555
00:28:19,640 --> 00:28:21,280
Speaker 1: for a good or for ill.

556
00:28:21,359 --> 00:28:24,560
Speaker 5: And will be used for both. Yeah, I mean, I

557
00:28:24,920 --> 00:28:27,119
Speaker 5: think when people talk about slowing it down, we must,

558
00:28:27,200 --> 00:28:29,600
Speaker 5: you know, we must have a debate about how does

559
00:28:29,600 --> 00:28:32,240
Speaker 5: that work? I mean there are national security implications here

560
00:28:32,320 --> 00:28:34,879
Speaker 5: about I mean, this is the technology which is I

561
00:28:34,920 --> 00:28:38,600
Speaker 5: think almost certainly going to and probably has to be

562
00:28:38,680 --> 00:28:43,880
Speaker 5: developed and explored. It will happen. It's happening now very quickly.

563
00:28:45,280 --> 00:28:48,440
Speaker 5: I want to say, as a species, we're very adaptable too.

564
00:28:49,840 --> 00:28:52,160
Speaker 5: People who predicted the end of all jobs and the

565
00:28:52,240 --> 00:28:54,920
Speaker 5: end of everything with previous you know, the Industrial Revolution

566
00:28:55,040 --> 00:28:58,440
Speaker 5: and everything since have always been proven wrong because human

567
00:28:58,440 --> 00:29:02,760
Speaker 5: beings adapt and generally economic history suggests you get more jobs,

568
00:29:02,760 --> 00:29:04,880
Speaker 5: you get more wealth as the results of these things.

569
00:29:04,920 --> 00:29:09,160
Speaker 5: So although I can certainly think of very dark nightmass

570
00:29:09,200 --> 00:29:12,040
Speaker 5: from any like everyone else, I want to remain basically

571
00:29:12,080 --> 00:29:16,560
Speaker 5: optimistic about AI and news AI and medium more generally.

572
00:29:16,800 --> 00:29:19,120
Speaker 2: So I'll buy that optimism was always good. Thank you

573
00:29:19,200 --> 00:29:21,200
Speaker 2: so much to Mark Thompson of Ancestry.

574
00:29:21,920 --> 00:29:24,320
Speaker 13: So this was the week when the entire economic world

575
00:29:24,360 --> 00:29:26,680
Speaker 13: seemed to be coming down with a severe case of

576
00:29:27,360 --> 00:29:31,840
Speaker 13: mad cow disease. In Washington, there was you might say,

577
00:29:32,400 --> 00:29:37,080
Speaker 13: utter confusion. Congress and the White House, whose most conspicuous

578
00:29:37,120 --> 00:29:40,120
Speaker 13: accomplishment this year had been blaming each other for lack

579
00:29:40,120 --> 00:29:43,400
Speaker 13: of progress, failed once again to reach agreement on a

580
00:29:43,440 --> 00:29:47,800
Speaker 13: budget for fiscal nineteen ninety six, a year that's.

581
00:29:47,600 --> 00:29:48,800
Speaker 1: Already half over.

582
00:29:50,000 --> 00:29:52,640
Speaker 13: So they approve, would you believe it, one more so

583
00:29:52,760 --> 00:29:56,480
Speaker 13: called stop gap spending bill to keep the government going

584
00:29:56,560 --> 00:29:58,560
Speaker 13: for another twenty six days.

585
00:29:59,360 --> 00:30:04,120
Speaker 1: And that's no. This is Wall Street Week. On Bloomberg.

586
00:30:16,120 --> 00:30:16,920
Speaker 1: This is Wall Street Week.

587
00:30:17,000 --> 00:30:19,520
Speaker 2: I'm David weston the failure of Silicon Valley Bank sent

588
00:30:19,560 --> 00:30:23,000
Speaker 2: shockwaves through the banking system and rattled the markets. The

589
00:30:23,120 --> 00:30:25,920
Speaker 2: dust is really still settling, but the forensics on what

590
00:30:25,960 --> 00:30:28,600
Speaker 2: went wrong are well underway, with the FED Vice Chair

591
00:30:28,640 --> 00:30:31,880
Speaker 2: for Bank Supervision Michael barr issuing report calling for stronger

592
00:30:31,920 --> 00:30:35,400
Speaker 2: supervision and stronger regulation. For his perspective on what went

593
00:30:35,440 --> 00:30:38,640
Speaker 2: wrong at SVB, we welcome. Now mister Barr's predecessor as

594
00:30:38,680 --> 00:30:41,880
Speaker 2: FED Vice Chair, he is Randall Corrals now executive chair

595
00:30:41,960 --> 00:30:44,479
Speaker 2: of the Synature Group, So welcome. It's great to have you,

596
00:30:44,640 --> 00:30:46,600
Speaker 2: mister Corals. So there's been a lot of back and

597
00:30:46,680 --> 00:30:48,840
Speaker 2: forth about what happened what didn't happen. I must say,

598
00:30:48,880 --> 00:30:51,320
Speaker 2: mister Barr and thinks that this is a textbook example

599
00:30:51,360 --> 00:30:53,600
Speaker 2: of bank mismanagement out of Silicon Valley Bank.

600
00:30:53,840 --> 00:30:54,880
Speaker 1: I think everyone.

601
00:30:54,560 --> 00:30:57,840
Speaker 2: Agrees with that. Well, are there things that actually the

602
00:30:57,920 --> 00:31:01,040
Speaker 2: regulators or the supervisors could have done to make it better?

603
00:31:01,720 --> 00:31:05,760
Speaker 12: It obviously was a text bookcase of mismanagement. But I

604
00:31:05,800 --> 00:31:10,960
Speaker 12: think that explanations are usually most penetrating when they don't

605
00:31:10,960 --> 00:31:14,720
Speaker 12: assume that the people involved were either fools or crooks.

606
00:31:16,240 --> 00:31:20,200
Speaker 12: And so the question is, how could some of these

607
00:31:20,200 --> 00:31:23,600
Speaker 12: decisions have been made, both by the bank management, by

608
00:31:23,640 --> 00:31:27,959
Speaker 12: the FED itself in supervising the bank, And there I

609
00:31:28,000 --> 00:31:30,680
Speaker 12: think you have to look at the behavior of the

610
00:31:30,760 --> 00:31:34,400
Speaker 12: uninsured deposits in Silicon Valley Bank and in the other

611
00:31:34,440 --> 00:31:36,400
Speaker 12: banks that have failed over the course of the last

612
00:31:36,440 --> 00:31:41,640
Speaker 12: two months, Signature Bank, First Republic, and the uninsured deposits

613
00:31:41,640 --> 00:31:46,680
Speaker 12: at these institutions moved away from the bank with speed

614
00:31:46,840 --> 00:31:49,920
Speaker 12: and out of volume that we had never seen before.

615
00:31:50,400 --> 00:31:55,240
Speaker 12: I mean, the largest amounts that had ever run from

616
00:31:55,280 --> 00:31:57,880
Speaker 12: a bank in the previously largest bank failures in the

617
00:31:57,880 --> 00:32:02,560
Speaker 12: country's history had been and I think eighteen billion dollars

618
00:32:02,600 --> 00:32:07,520
Speaker 12: over the course of almost a month. And in Silicon

619
00:32:07,600 --> 00:32:10,360
Speaker 12: Valley Banks case, forty two billion dollars left the bank

620
00:32:10,360 --> 00:32:12,760
Speaker 12: in a day, and the bank was getting ready to

621
00:32:12,800 --> 00:32:14,880
Speaker 12: open the next day with the expectation that another one

622
00:32:14,920 --> 00:32:17,120
Speaker 12: hundred billion dollars would have left the bank. You'd have

623
00:32:17,120 --> 00:32:19,320
Speaker 12: one hundred and forty two billion dollars leaving the bank

624
00:32:19,360 --> 00:32:20,680
Speaker 12: in the course of twenty four hours.

625
00:32:21,240 --> 00:32:24,960
Speaker 2: Finally, one more thought sold to the highest bidder, the

626
00:32:25,000 --> 00:32:27,520
Speaker 2: sound of the gavel coming down, the thrill of victory

627
00:32:27,560 --> 00:32:30,160
Speaker 2: over all those who couldn't or wouldn't bid up the

628
00:32:30,200 --> 00:32:33,440
Speaker 2: price one last time. There's just about nothing quite as

629
00:32:33,600 --> 00:32:37,320
Speaker 2: dramatic as competition measured in money, and that's why auctions

630
00:32:37,360 --> 00:32:41,880
Speaker 2: are so exciting. No matter what's being sold, be it fine.

631
00:32:41,760 --> 00:32:44,320
Speaker 13: Art, ladies and gentlemen, it gives me great pleasure to

632
00:32:44,320 --> 00:32:46,800
Speaker 13: present Look two hundred and thirty.

633
00:32:46,560 --> 00:32:50,400
Speaker 2: One or Premier League football clubs like Manchester United.

634
00:32:50,320 --> 00:32:53,920
Speaker 8: And Manchester United sores amid rapports that the Qataris are

635
00:32:54,000 --> 00:32:56,360
Speaker 8: bidding for the world famous football club.

636
00:32:56,320 --> 00:32:59,600
Speaker 2: Or failing banks like First Republic. We've had a good

637
00:32:59,600 --> 00:33:03,200
Speaker 2: look before, and now the Inflation Reduction Act has introduced

638
00:33:03,240 --> 00:33:06,400
Speaker 2: a whole new level of auctions, not just billions, but

639
00:33:06,640 --> 00:33:09,280
Speaker 2: hundreds of billions of dollars in federal money at state

640
00:33:09,520 --> 00:33:12,760
Speaker 2: for those investing in green energy or in semiconductors.

641
00:33:13,200 --> 00:33:16,200
Speaker 14: The whole point of this is to increase innovation, research

642
00:33:16,200 --> 00:33:20,200
Speaker 14: and development in the industry, not you know, we're not

643
00:33:20,240 --> 00:33:24,280
Speaker 14: giving you taxpayer money to fluff your pillow and increase

644
00:33:24,320 --> 00:33:26,400
Speaker 14: your profit and give it away to your shareholders.

645
00:33:26,760 --> 00:33:29,840
Speaker 2: And the bidders in these auctions aren't wealthy individuals or

646
00:33:29,840 --> 00:33:34,320
Speaker 2: a large corporations. Their states and even countries offering concessions

647
00:33:34,360 --> 00:33:37,240
Speaker 2: to get companies to invest in manufacturing with them rather

648
00:33:37,280 --> 00:33:40,520
Speaker 2: than with their rivals, as Canada's stepped up to historic

649
00:33:40,560 --> 00:33:43,320
Speaker 2: incentives to get volksag and to build its battery plant

650
00:33:43,320 --> 00:33:45,640
Speaker 2: in Ottawa rather than across the border.

651
00:33:45,880 --> 00:33:48,840
Speaker 15: Yes, the IRA is something that we've had to step

652
00:33:48,920 --> 00:33:51,760
Speaker 15: up to to make sure we're competitive, but we're going

653
00:33:51,840 --> 00:33:54,920
Speaker 15: to be a lot more strategic about how we pick

654
00:33:54,960 --> 00:33:57,480
Speaker 15: and choose the right investments. We can't just do a

655
00:33:57,520 --> 00:33:59,200
Speaker 15: blanket like the US can.

656
00:33:59,200 --> 00:34:00,240
Speaker 1: Not to be outdone.

657
00:34:00,400 --> 00:34:03,680
Speaker 2: This week, over fifty states and territories on this side

658
00:34:03,680 --> 00:34:06,560
Speaker 2: of the border gathered together in Washington at the Select

659
00:34:06,840 --> 00:34:09,960
Speaker 2: USA event. That's all to bid against one another for

660
00:34:10,040 --> 00:34:12,480
Speaker 2: the foreign investors who are trying to get their share

661
00:34:12,680 --> 00:34:14,799
Speaker 2: of the three hundred and sixty nine billion dollars in

662
00:34:14,840 --> 00:34:18,000
Speaker 2: green subsidies and the seventy six billion dollars in grants

663
00:34:18,040 --> 00:34:22,719
Speaker 2: and tax credits for semiconductor manufacturing. But maybe, just maybe

664
00:34:22,840 --> 00:34:25,240
Speaker 2: this is not the end of it, but instead only

665
00:34:25,280 --> 00:34:28,400
Speaker 2: the preliminary round in what could become the biggest bidding

666
00:34:28,480 --> 00:34:32,640
Speaker 2: war in history, the United States against China for the

667
00:34:32,680 --> 00:34:35,880
Speaker 2: grand prize of global technological leadership.

668
00:34:36,040 --> 00:34:39,839
Speaker 7: And we seek competition, not conflict. But I will make

669
00:34:39,920 --> 00:34:44,800
Speaker 7: no apologies that we're investing in to make America stronger.

670
00:34:45,239 --> 00:34:48,320
Speaker 7: Investing in American innovation and industries will define the future

671
00:34:48,719 --> 00:34:50,600
Speaker 7: that China intends to be dominating.

672
00:34:51,200 --> 00:34:54,399
Speaker 2: Whatever happened to all that criticism of China putting its

673
00:34:54,440 --> 00:34:58,439
Speaker 2: heavy thumb on the economic scales, Well maybe you can't

674
00:34:58,440 --> 00:35:00,920
Speaker 2: beat them, you just join them. That does it for

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00:35:01,000 --> 00:35:03,160
Speaker 2: this edition of Bloomberg Wall Street Week. If you missed

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00:35:03,160 --> 00:35:06,040
Speaker 2: any part of today's program, you can listen on demand

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00:35:06,080 --> 00:35:09,799
Speaker 2: with our Wall Street Week podcast. Find that on Apple, Spotify,

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00:35:09,960 --> 00:35:13,200
Speaker 2: or anywhere else you get your podcasts. I'm David Weston.

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00:35:13,360 --> 00:35:16,720
Speaker 2: Stay with us. Today's top stories and global business headlines

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00:35:16,719 --> 00:35:18,280
Speaker 2: are coming up right now