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Speaker 1: listen and always I'm Bloomberg Radio, the Bloomberg Terminal, and
Speaker 1: the Bloomberg Business App. So we are thrilled to bring
Speaker 1: it out on your equity market, your bullmarket, Liz Young, Liz,
Speaker 1: I love, love, love your note. And the answer is
Speaker 1: you say profit wins? What are profits look like forward?
Speaker 2: If you look at why people are buying stocks right now,
Speaker 2: I think everybody is searching for more upside, and especially
Speaker 2: after such a strong rally, it's been more difficult to find.
Speaker 2: So then trying to answer that question of where are
Speaker 2: we in the market cycle, where are we in the
Speaker 2: business cycle, and what kind of stocks win at this
Speaker 2: point so that we can find more upside, and we
Speaker 2: did a bunch of analysis looking at what might happen
Speaker 2: to the yield curve, what might happen to the dollar
Speaker 2: if and when the FED finally does start cutting rates.
Speaker 2: And one of the things that is consistent is that
Speaker 2: you do want companies that are kicking out good margins,
Speaker 2: that have healthy profits and are able to produce that
Speaker 2: kind of cash flow.
Speaker 1: Do we grow our way in the denominator price to
Speaker 1: cares flow, price to this price to ebita, do we
Speaker 1: grow the denominator into a more intelligent valuation?
Speaker 2: Well, you know what's interesting is that if you look
Speaker 2: at valuations, there continues to be this comparison between now
Speaker 2: and what happened in the early two thousands, and valuations
Speaker 2: compared to them are really not that outrageous. They're frothy,
Speaker 2: and in particular pockets, they're perhaps higher than most investors
Speaker 2: would want as an entry point. But I do think
Speaker 2: over the next couple years, if we managed to avert
Speaker 2: some big catastrophe, we do need earnings to continue to grow.
Speaker 2: We do need them to come through in order to
Speaker 2: just support the current level of valuations. And then it
Speaker 2: becomes this awkward mental exercise of okay, if the pe
Speaker 2: is coming down, that's actually a good thing if earnings
Speaker 2: are going up, but the price of the index hasn't
Speaker 2: necessarily moved all that much. I think we've been used
Speaker 2: to these double digit returns and we may enter a
Speaker 2: period where we're in that more regular return era of
Speaker 2: mid single digits, but with earnings growth that's still strong.
Speaker 3: Liz, you know, given the move we've had off those
Speaker 3: October levels here in the stock market, the S and
Speaker 3: P five hundred up, you know, over twenty five percent,
Speaker 3: where what sectors still screen attractive to you?
Speaker 4: Guys? If any.
Speaker 2: Yeah, Well, that goes back to the earlier part of
Speaker 2: this conversation is where do you find that upside and look,
Speaker 2: growth companies, particularly large cap still seem attractive compared to
Speaker 2: small cap. You start with some of those big buckets.
Speaker 2: What's better large or small? And at certain points in
Speaker 2: the business cycle, large cap does tend to do better.
Speaker 2: At certain types of yield curve environments, large cap also
Speaker 2: tends to do better. So if we expect that at
Speaker 2: some point later this year, which I do expect, we
Speaker 2: will experience what's called a bull steepener, meaning that the
Speaker 2: short end of the curve comes down and the long
Speaker 2: end of the curve either stays put or rises a
Speaker 2: little bit. In that environment, you do want those large
Speaker 2: cap companies, some of them growth. You do also want
Speaker 2: some of those defensive names. And although it's a bull market,
Speaker 2: there are defensive sectors that can do really well in
Speaker 2: a bull market, and utilities is one of those that
Speaker 2: has done well this year. I would still be staying
Speaker 2: away from sectors that start with the word consumer, though.
Speaker 1: Liz so far has such a herity of studying the
Speaker 1: technology of America within the AI frenzy, what does our
Speaker 1: technology look like forward? And can you invest in it?
Speaker 2: I heard a quote last week that was sort of
Speaker 2: resurrected from Bill Gates. It goes something along the lines
Speaker 2: of technology is always overestimated in the first two years,
Speaker 2: but underestimated in the ten year period. And I think
Speaker 2: what's happening with AI right now is obviously we've got
Speaker 2: a lot of enthusiasm and there are some real fundamentals
Speaker 2: behind that trade and behind that theme. The reality is
Speaker 2: that all themes go through a life cycle, and we're
Speaker 2: likely to see at least somewhat of a boom and
Speaker 2: bust in the AI theme, and things are going to
Speaker 2: change quite a bit over time, much like what happened
Speaker 2: with the Internet theme. We didn't really know how to
Speaker 2: make money off of that early on, and I think
Speaker 2: that's where we are with AI and at some point
Speaker 2: we'll have to come back down to earth of we're
Speaker 2: not going to come up with these profits in the
Speaker 2: next twelve months. I think that's sort of where that
Speaker 2: theme sits today.
Speaker 1: We Liz, I don't want to talk to you about
Speaker 1: Texas Systems per se. I know that's not part of
Speaker 1: the game. But we've got Anna rag Rana coming up
Speaker 1: here with the announcement from CNBC of an Elliott Management Steak,
Speaker 1: Kunjohn Sohani and Oscar Hernandez Tejada for Bloomberg Intelligence absolutely
Speaker 1: nail a company that's going to spend forward based off
Speaker 1: semiconductive development in America and that and as a generalization,
Speaker 1: investor saying, wait a minute, who's going to win out
Speaker 1: in that tug of war between capex Frenzy and investors
Speaker 1: saying I want a little discipline and capital allocation responsibility,
Speaker 1: who's going to win right now?
Speaker 2: I think we are actually going through a pivot where
Speaker 2: investors are deciding that you need to be much more
Speaker 2: judicious with your spending of capital, and we saw that
Speaker 2: in some of the announcements in first quarter earnings, where
Speaker 2: you're hearing big tech companies say we're going to spend
Speaker 2: a bunch on ai I. Last year they got rewarded
Speaker 2: for saying that, this year getting a little bit more punished,
Speaker 2: with investors looking at it as Okay, if you're going
Speaker 2: to spend, then where's the zero sum game? Who's going
Speaker 2: to benefit from that spending? So rather than this, you know,
Speaker 2: the pie is getting bigger. I think it has turned
Speaker 2: into a little bit more of an environment where investors
Speaker 2: are saying, you need to be responsible. I will, I
Speaker 2: will go to the company that can benefit from some
Speaker 2: of that spending, but let's be careful about how much
Speaker 2: money we're throwing at a theme that isn't quite mature yet.
Speaker 4: Hey, Liz, what are you?
Speaker 3: What are you telling your clients these days about opportunities
Speaker 3: in fixed income?
Speaker 4: Broadly speaking?
Speaker 3: Do you stick it to your treasury close to five percentity?
Speaker 3: Maybe take a little credit risk?
Speaker 2: You know, I wish I had a juicier answer to
Speaker 2: this question, but yeah, I am your I am two
Speaker 2: year treasuries all day long. I mean We're at a
Speaker 2: point in the cycle where the FED is going to
Speaker 2: have to cut rates at some point. We keep pushing
Speaker 2: it out, but at some point that short end of
Speaker 2: the curve is going to have to come to grips
Speaker 2: with the fact that the FED will eventually embark on
Speaker 2: a cutting cycle. So I still think it offers great opportunity.
Speaker 1: Jong, thank you so much for so far great equity
Speaker 1: discussion there, folks, Aniragrano would have known to press the
Speaker 1: blue button. He joins us right now with the Bloomberg
Speaker 1: Intelligence arog loves to talk about, including the Apple ballet,
Speaker 1: But I've got to ask you away from your remit
Speaker 1: about Texas instruments and what I want to talk about
Speaker 1: anerog And this is not Colenngenzolbani and asking Hernanda Tejada
Speaker 1: that will report for Bloomberg Intelligence and Texas Instruments way
Speaker 1: out front on the question that Elliot's bringing up, like,
Speaker 1: wait a minute, you got all these Capex dreams, what
Speaker 1: about US investors, anierog within the cloud space, within the
Speaker 1: Aniogarana world, your universe. Is the Capex being overdone?
Speaker 5: Now?
Speaker 1: Is there two much enthusiasm about spend spend spend versus
Speaker 1: listening to investors or that they're saying, where's my return?
Speaker 5: Tom, I love Capax, and you know what has been
Speaker 5: disappointing is you know, it's not you know, it's not
Speaker 5: resounding a lot with clients as I should it should have,
Speaker 5: because this really gives me a very big leading indicator
Speaker 5: that the cloud demand is going to bounce and bounce
Speaker 5: back good. So i'm i'm I'm very happy that these
Speaker 5: companies are investing very heavy in Capax, which means they
Speaker 5: they know something that all of us don't know. I
Speaker 5: feel okay about it at all.
Speaker 3: All right, So let's go over to our good friend's
Speaker 3: Apple June tenth. I mean I don't know, Tom, I
Speaker 3: are thinking about booking, you know, the Gulf Stream to
Speaker 3: go out there.
Speaker 4: And see what are you do?
Speaker 3: You and the boat that what should we be looking
Speaker 3: for for Apple come June tenth.
Speaker 5: So I think it's very clear at this point. Apple's
Speaker 5: now had their big focus on Jenny I and everything
Speaker 5: around it. They really need to tell the street that
Speaker 5: they can do it better, if not better, at least
Speaker 5: match what Google has showcased in the past few months.
Speaker 5: If they don't do that, I don't think it's going
Speaker 5: to be really good for investors in the near town
Speaker 5: because so far the story has been Apple has lacked
Speaker 5: behind and they have not done much. We have heard
Speaker 5: from Markerman that they have a contract upcoming with open
Speaker 5: Ai that can infuse some of the features in there. Now,
Speaker 5: remember one thing Apple has the distribution. Apple has over
Speaker 5: one billion smartphone users, So if they can get somebody
Speaker 5: to use their products, I think it's going to help
Speaker 5: them out in the long run. But I would say
Speaker 5: a lot hinges on in this Tune tenth event for them.
Speaker 1: So how do you define this overused word ecosystem? I mean,
Speaker 1: is there an ecosystem nothing more than an ecosystem of convenience?
Speaker 1: Or is it a tangible ecosystem? Is it a tangible universe?
Speaker 5: So if you think about it, Tom, the way I
Speaker 5: think about it is ecosystem of Excel users. I mean,
Speaker 5: you know, free Google sheets have come and gone. I
Speaker 5: wouldn't care about it. You could argue that, you know,
Speaker 5: the same is the user, The same is the ecosystem
Speaker 5: for people who read Wall three journals. Once you are
Speaker 5: in that install base, you're not going to move away,
Speaker 5: even if I get a cheaper phone out there, I'm
Speaker 5: not moving away from Android to iOS or vice versa.
Speaker 5: So I think the real big kicker here is do
Speaker 5: they really have the compelling next generation app where it
Speaker 5: can keep the I would say, you know, the users
Speaker 5: that may decide to either pick iOS or Android in
Speaker 5: the long run. So I think the ecosystem is sticky
Speaker 5: because once you get into one, you don't get out
Speaker 5: of it. But they really need to showcase that they
Speaker 5: have the mindset to you know, keep people in it.
Speaker 1: Paul in Video is over one, so they were stacks
Speaker 1: split into one hundred. My first number was ninety seven,
Speaker 1: and right now the stock split to one hundred and
Speaker 1: ten dollars per share.
Speaker 3: Yep, how about I mean, just that's the way to
Speaker 3: play Airo in a lot of people's minds. Hey, Honora,
Speaker 3: we saw some reporting coming out recently that Apple's China
Speaker 3: iPhone shipments jumps fifty two percent.
Speaker 4: What is going on with that? I thought they were
Speaker 4: losing in China. What's going on there?
Speaker 5: So I as probably one of the things we learned
Speaker 5: from the last earning scull on Apple is some of
Speaker 5: these ship in data shouldn't be relied upon that heavily,
Speaker 5: because remember it's this is. This is the same source
Speaker 5: that told us chan fab data was down I think
Speaker 5: thirty nine forty percent or something in that. But when
Speaker 5: Tim Cooat came on the conference call, he said, you
Speaker 5: know what iPhone sales were up in Malee and China.
Speaker 5: So I I, you know, the part of the ease
Speaker 5: in the stocks only of one percent and not quite
Speaker 5: a bit. I'm not expecting a fifty two percent jump
Speaker 5: in iPhone revenue in the next quarter. I think this
Speaker 5: just shows one thing it shows though, is Apple's not
Speaker 5: losing out that big as it was made out in
Speaker 5: the last six months. People will buy and sell depending
Speaker 5: on when the sales are, when the seasonal nature is.
Speaker 5: So I mean I I really don't put that much
Speaker 5: emphasis on some of this data.
Speaker 6: Point.
Speaker 1: Explain to us ANA rog the utilities certitude that cloud
Speaker 1: your world, the aneriog around and world needs electricity generation
Speaker 1: and we're going to have to build all this stuff out.
Speaker 1: What in that theme do we get wrong? What's the
Speaker 1: distinction you say that needs to be clarified.
Speaker 5: I think the biggest thing is, and Paul and I
Speaker 5: had discussed this a while ago, is how are they
Speaker 5: going to make up for something like this? How will
Speaker 5: you see what are you going to do? Where is
Speaker 5: the capacity going to come from? And I think I
Speaker 5: am pretty much looking forward to new kinds of ways
Speaker 5: of doing things people coming up with. I think, you know,
Speaker 5: creative ways to utilize or make it more power and
Speaker 5: you know, use a friendly because the hungry nature of
Speaker 5: this particular technology is such that you know, we're going
Speaker 5: to see a lot of build up off you could say,
Speaker 5: alternative fuel rather than you know, the renewable energy because
Speaker 5: because we do need a lot of power to run
Speaker 5: these workloads.
Speaker 3: So ana when we think about just Apple, you know,
Speaker 3: this has been such a great stock for such a
Speaker 3: long period of time, but this China risk, it just
Speaker 3: doesn't seem to go away. If I'm an when you
Speaker 3: talk to these institutional investors in Apple, how did they
Speaker 3: kind of carmental well, how do they put that risk
Speaker 3: kind of to rest a little bit?
Speaker 5: Yeah, I think, you know, I think the last earnings call,
Speaker 5: as well as the data today should pass by one
Speaker 5: thing that this is a cyclical nature of the demand
Speaker 5: in China and not so much structural shrinking. That's a
Speaker 5: very good thing for long term and and something that
Speaker 5: you and I and the three of us have discussed
Speaker 5: over the last twelve months is you can say all
Speaker 5: you want about India and other emerging markets, at least
Speaker 5: for the next five years, Apple growth in iPhones is
Speaker 5: going to come from China. Like it or not, that's reality.
Speaker 5: So I think this is a good news at least
Speaker 5: for the next couple of years. Now. One thing is
Speaker 5: also I think getting clearer something we've been hopping on
Speaker 5: for a while is this is not a company that's
Speaker 5: going to grow sales ten percent anymore. This is going
Speaker 5: to be at best a five percent sales growth company.
Speaker 5: And people need to get, you know, comfortable with that.
Speaker 5: And I think a lot of people are now finally
Speaker 5: getting comfortable that that's the story. So you take five
Speaker 5: percent of revenue growth, a little bit margin expansion, and
Speaker 5: then share buybacks, you get to like eight to ten
Speaker 5: percent EPs growth trade and that's the reality of the
Speaker 5: park at this point.
Speaker 1: One final question, have you ever been to an Apple
Speaker 1: developers conference?
Speaker 5: No? No, they keep it insight, they keep it very tight.
Speaker 5: I know they have not invited me.
Speaker 1: It's like an invited audience, right.
Speaker 5: Yeah, yeah, no, absolutely, I don't even have about eye
Speaker 5: so definitely not invited.
Speaker 1: And Ron thank you so much joining us now with
Speaker 1: Panje policy. This came up not once, Terry, but twice
Speaker 1: this weekend. I'm not going to mince words. How's the
Speaker 1: president's health and what is the dialogue forward for Joe
Speaker 1: Biden given.
Speaker 6: The health, Well, what he's going to have to do
Speaker 6: is frankly, convince everybody that he's up to the job
Speaker 6: and do a better job than he has so far.
Speaker 6: I mean, I think the nadier of this was kind
Speaker 6: of late February early March, preceding the State of the
Speaker 6: Union with the Special Council report. He's been you know,
Speaker 6: it's gotten better since then. He's been better since then,
Speaker 6: But he's got a long way to go, and he's
Speaker 6: going to have to sustain for about the next five
Speaker 6: months the ability to show that he stood the so
Speaker 6: capable of governing. To me, that's the key to the
Speaker 6: entire election.
Speaker 1: What's the optionality he has forward? Based on the calendar,
Speaker 1: there's now June and then I assume the convention, excuse me,
Speaker 1: and then there's something after that. What does the windows
Speaker 1: of decision the President and his team and Missus Biden have.
Speaker 6: Well, he's got this June twenty seventh, debate, and that's
Speaker 6: going to tell you an awful lot about not just
Speaker 6: Biden's health and Biden's ability to go forward, but also
Speaker 6: how Democrats feel about it, and you know, going into
Speaker 6: the uh going into their convention soon after that. If
Speaker 6: he doesn't do well in the Junie debate, there's going
Speaker 6: to be speculation is going to be right that the
Speaker 6: party revolts. So there's a great potential roiling around politically,
Speaker 6: which will probably express itself in the markets to some extent,
Speaker 6: given the political and geopolitical implications.
Speaker 1: I mean, Paul, I want to make clear, Paul that
Speaker 1: there was no ill will from the people that asked
Speaker 1: me about this this weekend. They're just mystified of what
Speaker 1: the path is for the president given is there was
Speaker 1: no nobody was like ranting or you know Republican's Maga
Speaker 1: rant He was none of that.
Speaker 4: It's just baffled off almost exactly.
Speaker 3: On the other side, Terry, here in Manhattan, we have
Speaker 3: got a little trial about to reconvene here today. Can
Speaker 3: you put in context what this trial for former President
Speaker 3: Trump and the other.
Speaker 4: Legal issues are.
Speaker 3: How are they kind of stacking up here in the
Speaker 3: greater scheme of things as we plowed towards the election.
Speaker 6: Well, you got a situation where, you know, six months
Speaker 6: ago we were talking about this and we would have said, oh,
Speaker 6: you know, these are all these trials are going to
Speaker 6: be hugely significant for the for the path of the election.
Speaker 6: You know, now it's it's fairly obvious that they won't be.
Speaker 6: I think there's a a I asked myself on the election,
Speaker 6: or excuse me, on the conviction likelihood, what would Tom
Speaker 6: Wolfe think, you know, and Tom wolf would probably think
Speaker 6: the conviction would exist just so the judge and the
Speaker 6: jury could get you know, could get through the thing,
Speaker 6: knowing that they could bucket along to an appeals. Beyond that,
Speaker 6: I think it's a situation where it doesn't it doesn't
Speaker 6: help Trump at all. It's sort but it hurts him
Speaker 6: very little. Frankly, Uh, You've have a situation here, I
Speaker 6: think where everybody who thinks he's wronged already thinks he's wrong.
Speaker 6: And at most what happens here is you've got some
Speaker 6: independent voters who will hesitate a little bit more because
Speaker 6: this is a reminder of kind of the Trump circus
Speaker 6: and the Trump drama. Beyond that, I don't think it
Speaker 6: matters a lot.
Speaker 3: How about the conventions that this summer Terry should should
Speaker 3: Tom might be paying attention to these things?
Speaker 6: Yeah? You should, Yeah, you should. The you know, the
Speaker 6: conventions have turned into such you know, predigested comfort food
Speaker 6: that there's usually not not much there for anybody. But
Speaker 6: this time out, I mean, there's going to be a
Speaker 6: lot more drama around the Democratic Convention as a result
Speaker 6: of Biden's condition, as we've discussed, and on the Republican side,
Speaker 6: I think what you need to look for is whether
Speaker 6: Trump's successful or not in consolidating support, naturally unifying the
Speaker 6: Republican Party, and actually starting to draw independence to him.
Speaker 6: He needs both of those, as he did in twenty sixteen.
Speaker 6: Right now he's got neither of those. So the convention,
Speaker 6: you're going to tell you a lot about where that is.
Speaker 1: Terry hates frame your guesstimate of what the White House,
Speaker 1: the Senate, and the House looks like the first Wednesday
Speaker 1: of November. What's your guess on which way they'll go?
Speaker 6: Oh, I think I think Biden probably, aside from you
Speaker 6: something that else that might happen today, I think Biden
Speaker 6: probably squeaks through to victory. And I mean squeaks on
Speaker 6: the strength of superior organization and message discipline. I think
Speaker 6: the Senate is marginally Republican and the House is marginally Democrats.
Speaker 6: So what you have is a kind of refraction of
Speaker 6: the situation that exists today and without a lot of
Speaker 6: without a lot different and the same or similar consequences
Speaker 6: for fiscal and a bunch of the other things that
Speaker 6: markets care about most.
Speaker 1: Terry Haynes, thank you so much for the brief with
Speaker 1: Peenjia policy. You did. Look at the front pages with
Speaker 1: Lisa Matteo. Where do you start after a three day weekend?
Speaker 7: You start with this interesting one from the Washington Post.
Speaker 7: It put a couple studies together and it says that
Speaker 7: more home buyers they're turning to the bank of mom
Speaker 7: and dad to buy a home to get that down payment.
Speaker 7: So Freddie Mack did this analysis of their home loans.
Speaker 7: They share of young home buyers relying on older mortgage
Speaker 7: co signers like family members most often the parents.
Speaker 8: Yes, mom and Dad is as high as it's been.
Speaker 7: In at least thirty years, So that's how bad it's getting.
Speaker 7: Redfin suggests it picked up even more in twenty twenty
Speaker 7: three and.
Speaker 8: Here's the thing.
Speaker 7: Parents are even taking out loans against their existing homes
Speaker 7: to fund their children's homes.
Speaker 8: This is how crazy.
Speaker 7: And they're considering joint purchases where their kids as part
Speaker 7: of this long term investment too. But the people who
Speaker 7: are being left out are the people who don't have
Speaker 7: that family.
Speaker 1: On Twitter, so there's great feeds of busted properties. And
Speaker 1: there's a fancy place in Nashville. Taylor Swift has a
Speaker 1: unit in this fancy place and they do the own
Speaker 1: versus rent differential in that fancy place in Nashville. It's
Speaker 1: like New York City, Paul. It's like no one in
Speaker 1: their right mind would buy. It's like a money pit.
Speaker 1: And it's happening more around the COLT.
Speaker 3: I think with the young folks, they've they got the
Speaker 3: student debt and all that kind of stuff that it's
Speaker 3: just it's tough there and with the interest rates where
Speaker 3: they are again make it.
Speaker 1: Or becoming like Europe everybody, not everybody, but more many
Speaker 1: more people rent in Europe than here. Yeah, parents are taken.
Speaker 8: Out, taken out loans in order to.
Speaker 1: Just I'm lost on that next.
Speaker 7: Yeah, I know, are you gonna are you gonna give
Speaker 7: good cherubs a down payment here, that's the question. Okay,
Speaker 7: this one is about the streaming wars, right, because you
Speaker 7: hear a lot about these bundle TV offerings. You heard
Speaker 7: about comcasts and things like that, But will it compete
Speaker 7: with Americans who are kind of doing their own DIY
Speaker 7: bundling because they're sharing the accounts with family members, friends,
Speaker 7: co workers, even though some of those things may kind
Speaker 7: of violate the service agreements that you're not.
Speaker 8: Supposed to share. Uh So that's the question.
Speaker 7: Consumers are tired of the description costs, right, and then
Speaker 7: you have the companies who want to keep the customers.
Speaker 7: So you have comcasts doing these bundlings. You have Disney
Speaker 7: Warner Brothers, you know, doing these bundlings. You have the
Speaker 7: ESPN Fox trying to do the sports streaming bundling.
Speaker 8: But that's what they're saying the di Y.
Speaker 1: I dealt with this this weekend, and I will cancel
Speaker 1: two services this week. I haven't gotten to it. I
Speaker 1: don't believe the names out of it.
Speaker 3: It's easy to but I mean the number one issue here, well,
Speaker 3: one of the big issues for the streaming companies that
Speaker 3: you didn't have with a cable television or satellite. It's
Speaker 3: very very very easy to cancel your streaming service. It's
Speaker 3: click of a button and so and that means churn
Speaker 3: and they don't want churns.
Speaker 4: So in order to minimize churn, they're creating these bundles,
Speaker 4: you know, and maybe that'll minimize churn.
Speaker 3: So but again Netflix has been very good about, you know,
Speaker 3: clamping down on the on the sharing the passwords.
Speaker 8: We'll see I know I still at mine on it.
Speaker 8: That goes all right?
Speaker 7: Apple the Developers conference next month, right, big, big, big,
Speaker 7: But they're betting on its giant customer base to kind
Speaker 7: of give it that edge in the AI space. So
Speaker 7: what they're doing is they're taking this different approach to AI.
Speaker 7: They want to focus on the tools that ordinary consumers
Speaker 7: can use, kind of like what Tom.
Speaker 8: What you were saying last week, Like what does this
Speaker 8: mean for me?
Speaker 5: What I want Mark?
Speaker 1: I want Mark German to tell me what's the sw what?
Speaker 1: And I'm not there yet.
Speaker 7: Yeah, So they're they're doing exactly because of what you know,
Speaker 7: things you're saying, and not just you, but a lot
Speaker 7: of people.
Speaker 8: This new strategy project gray Matter.
Speaker 7: So they have a set of AI tools that the
Speaker 7: come and he's going to integrate into apps like Safari,
Speaker 7: photos and notes.
Speaker 8: But there's other features, right. They have Serie Personal.
Speaker 7: Assistant that's going to get an upgrade, series getting an upgrade.
Speaker 7: They have Generative AI for emojis, with software that can
Speaker 7: create custom emojis on the fly based on what you're texting.
Speaker 7: So if you're texting someone like, hey, let's go out
Speaker 7: for dinner for pasta on Friday, a little pasta emoji
Speaker 7: will like automatically, And that's going to.
Speaker 4: Make my life so much that's going to make you
Speaker 4: like so much better.
Speaker 5: God?
Speaker 4: Is that where we are these days?
Speaker 7: Okay, but just about making things easier for their customers.
Speaker 3: I don't think that this conference again, the developer conference,
Speaker 3: I guess it's June seventh.
Speaker 8: Yeah, I don't.
Speaker 4: I think there's a lot built up in the stock.
Speaker 3: I think investors want to see something transformative as it
Speaker 3: relates to AI, to get that bump in the sock.
Speaker 4: I'm not sure they're going to get it. I don't know.
Speaker 8: It's a lot.
Speaker 7: There's a lot, a lot of competition because there you
Speaker 7: get Microsoft, Alphbits, Google, this is.
Speaker 1: What June something. Yeah, it's like right around, it's right
Speaker 1: around that fed me, is it more important than the
Speaker 1: FED meat?
Speaker 8: That's a good question.
Speaker 1: Instead of doing the FED decides, you can do.
Speaker 4: It's June tent I stands tractictent, competent.
Speaker 1: Days before the FED meeting. Okay, you got anything else?
Speaker 7: Summer sales, that's what we're talking about. Shop till you drop.
Speaker 8: Okay. So the Associated Press gave this breakdown.
Speaker 7: They talked about target cutting prices, right, They talked about
Speaker 7: Walmart cutting prices. All the food shopping, A lot of
Speaker 7: it is food, beverage, essential, household isands because people are
Speaker 7: their budgets are tight.
Speaker 8: Even restaurants. You have McDonald's introducing that five dollars meal deal.
Speaker 8: They want to do that.
Speaker 7: So a lot of CEOs are saying that people are
Speaker 7: becoming more price conscious, more selective. They're doing the store
Speaker 7: brands more.
Speaker 4: And the next That's what I'm doing. I'm doing the
Speaker 4: store brand more.
Speaker 8: I started doing that too.
Speaker 1: Yeah, well more for June Lisa Taylor, thank you, Lisa
Speaker 1: Motel there with the newspapers as well. This is a
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