00:00:00 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg Surveillance Podcast. Catch us live weekdays at seven am Eastern on Apple CarPlay or Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube. 00:00:27 Speaker 2: I got eight ways to go. I'm going to ask one look back question, and then we got to look at the present tense right now. Because you're fired up out on LinkedIn and Twitter, everybody needs to read one hundred and twenty eight pages. John Kenneth Galbraith lived almost to a green span one hundred A short history of financial euphoria. It's an exquisite jewel. I put it out on Twitter and LinkedIn. What's the character of our financial euphoria right now? A la JK. Gilbraith. 00:00:59 Speaker 3: Great to be here. There's really nothing new under the sun. And that's because human nature doesn't change. The characters change, the names change, but it's fear and greed. We can go back to the South Sea bubble, Dutch tulip bulb mania. History repeats itself over and over again. 00:01:14 Speaker 4: Put AI into that context here because people have been positioning AI other than electricity there's been nothing more important than AI. How do you think about just this whole concept writ large. 00:01:27 Speaker 3: I'm not bearish on AI per se. I'm sure we're all going to use it. Many of us are using it already. The question is what's the ROI on the AI? It starts out the way these bubbles all start. There's a kernel of truth that captures the imagination of the individual, whether it's a Southsea bubble, or it's Dutch tulip bulbs, or it's dot com, which I've lived through. Ye, And it starts out it's a good idea. But what happens is the price changes immeasurably. And the best definition I've actually heard of a bubble. There are many definitions. The best one I've heard is something that changes human behavior, that people do things that they wouldn't do otherwise, whether it's because of fomo, fear of missing out or otherwise. And I think that's kind of where we are with with AYI. I mean, I'm happy to change my mind, but show me the money. Where's the ROI? And I don't see it, and I don't see it coming either. 00:02:18 Speaker 4: Doesn't seem to be to turn capital from flowing to that business. We've seen extraordinary amounts of equity raised. Now we're seeing tech companies and everything thought about the bond market raising tens of billions of dollars in investment grade bond market. We've got a Korean company listing its ad rs today here in the US. I mean that I've been on Global Wall Street for thirty years. I've never seen this amount of money flow. 00:02:40 Speaker 3: The things I read the same source as you do. I file that under my category on X of things you don't see. 00:02:47 Speaker 5: At a bottom. 00:02:48 Speaker 3: We've seen this movie before with Japanese subtitles, Housing subtitles, tech subtitles. Go back to dot com. I actually think this is much worse than dot Com simply because the sums involved by that much greater. 00:03:00 Speaker 2: This is really important because you know, the fossil sitting around the table. You know, we talked about Will Dano for a couple of days ago, remember being in meetings at sixty State Street dot com and all that. What's the distinction right now versus ninety eight ninety nine and then what we enjoyed in OH. 00:03:16 Speaker 3: One Again, I want to elaborate on the sheer magnitude of this. Julian Garrett of micro macro strategic partners in the UK. Aerodyte economists of them many years has made a calculation that this bubble, this this malinvestment is seventeen times seventeen times what we saw in the air of dot com and what's alied to that. What's really important is the sums involved are so much larger relative to the real economy. The fallout from this could really be much more significant. 00:03:49 Speaker 2: For Global Wall Street. On this Friday, A real treat George and Noble with us of course, definitive infidelity with mister Lynch a few years ago it is Noble Capital Advisors. He's been on fire out on LinkedIn and Twitter with his criticism of the moment it. Paul Sweeney with George Nobook again. 00:04:07 Speaker 4: Another definitive part in this market was the I feel of a company called SpaceX. 00:04:13 Speaker 5: Oh my thought, I thought you'd never ask what do you. 00:04:15 Speaker 4: Make of that? I mean, I can't imagine setting in a fidelity office conference room, and you know the bankers bring Elon Muskin to make this pitch. I would have loved him be a fly on the wall. What do you make of that? 00:04:27 Speaker 3: History shows that buying companies that over ten times revenues usually ends very badly. We all recall Scott McNeely famously in some microsystems. What happens when you have to what your return is gonna be. If you buy Someme with ten x, this is one hundred and twenty times revenues. And you know it's even if you look at companies and projection, I mean they're already borrowing money. You look at the companies projection, they'll be cashual negative for years to come. And here's the worst part of SpaceX, which I don't want to engage in the captain obvious thinking. But the thing everyone should consider, and that is the staggered lockup that we're now the unlocked that we're looking at. Okay, starting from next month, when the quarterly earnings come out, you're twenty percent of the shares come unlocked shortly thereafter, and then there's a whole series of unlocked seven percent every twenty or thirty days. By December, one hundred percent of the shares will be freely floating. The point of the important point that investors should understand is even without any change in the fundamentals, when you go from a five percent float to one hundred percent float. 00:05:24 Speaker 2: George, in the old days when you would take a two hour lunch at Lockovers and you use the hold court there off the bar. But in the old days, when a company went public, it like took its shares public and maybe they had a little stub that kept private. Now we're unloading five percent of the public. To me, it's manipulative. Should regulators step in and get the initial public offering market back to a normal segmentation one hundred percent. 00:05:52 Speaker 3: It's not a question of what's legal or illegal. 00:05:55 Speaker 5: It's just not right. 00:05:56 Speaker 3: Society is not well served by allowing this Grandma four oh one k is exitent liquidity for this manipulation, and I think the regulators are sleep at the wheel. They only usually jump into action after the car finishes occurred. 00:06:09 Speaker 2: I had Guenstler who sat in this chair recently, and I said to Gary Gensler, I said, okay, you let bitcoin in. I get it, it's a free market and all that, But what do you say to retail that enjoyed bitdog at one ten and it's now down at sixty. SpaceX, okay, it's back to one fifty. I'm watching the debt of SpaceX to be blunt. 00:06:30 Speaker 6: It can't find a bid alied to that. 00:06:33 Speaker 3: Tom, I promise you that once it goes under the offering price and the unlocked shares come to market, the insiders who were in at a tenth of the current price, they're going to hit the bid. So fat it's gonna make it. 00:06:43 Speaker 7: Well. 00:06:43 Speaker 5: I got to make some news here. 00:06:44 Speaker 2: To be honest, Fidelity was way out front Christer mounts on this. Would you recommend that Abbie Johnson and the team sell their SpaceX? 00:06:53 Speaker 3: They know the company better than I do. Let's just say, if I was handed a portfolio, if Philly were to rehire me, I would sell it right away. 00:07:00 Speaker 4: Elon Musk, you have to. I'm not sure we've seen anything like this in terms of the value that gets ascribed to mister Musk relative to the earnings, relative to the cashlow. We've seen it yere for years in Tesla, and you look at the Tesla analysts, the auto analysts all have holds or cells on it, and they've been wrong. And the tech anisil Follo of all been saying just buy it. It's Elon, it's elon' it's autonomous robots and all that kind of stuff. Have you seen that in the past where one individual can have such an influence on valuation. 00:07:32 Speaker 3: No, I think Tesla's probably the biggest misallocation of capital at scale in the history of stock markets, perhaps only surpassed by SpaceX. I was one of those wrong analysts. I'm a fossil. I happen to be the auto analyst for Peter Lynch in nineteen eighty one. We went to Detroit to visit Chrysler, Ford and GM, so I know of what I speak. Fundamental work has not guided one in the case of Tesla. I think, however, though he's bitten off more than he can chew. Now everyone's speculating whether or not SpaceX may merge take over Tesla. I have no special insight on that. But if I had to gamb but if I had to speculate, and if I ever speculate, I would say it's a reasonable speculation. 00:08:14 Speaker 2: Let me reintroduce here worldwide, including overseas and across America. George Noble with us for years, definitive in the business of over seas investment and fidelity thrilledies in our studio today controversial to say the least on the euphoria at hand, Paul Sweene, So. 00:08:31 Speaker 4: George, where do you see opportunity these days? I'm sure you look at various markets, various geographies. Where do you see value these days? 00:08:40 Speaker 3: It's a market at stocks. As Peter don't always used to say, don't try to call the market. I think they're outstanding opportunities right now. On energy, I'm actually quite concerned about the energy picture. I think we're sleepwalking into the biggest energy to this location in history. You look at the disparity between the divergence between the financial market for oil and the physical market for oil. We're between a rock and a hard place. The energy stocks CREWE is soul buff significantly the last few weeks, as have the energy stocks. 00:09:08 Speaker 5: You know. 00:09:08 Speaker 3: I think the risk award is very appealing. There's very little downside and potentially a lot of upside. I like reflation. Generally speaking, gold stocks I think are a huge buyer right here SSRM as an example, seven times earnings, not cash flow, seven times earnings. Right So, gold stocks, energy stocks, other commodity names, like some of the copper copper names, they're all they're all very interesting to me. 00:09:33 Speaker 5: Part of this AI story. 00:09:34 Speaker 4: To the extent people are looking for other ways to buy it other than the chips. Has been some of the picks and shovels. One of them has been energy. How are we going to power all these data centers that are being built in everybody's backyard, I mean anything, stick little nuclear reactors next to each one. 00:09:48 Speaker 6: How are we going to do that? 00:09:48 Speaker 2: They took thermodynamics exactly. 00:09:51 Speaker 3: Well, the one thing you shouldn't do is buy oklow, which is one of the biggest frauds out there on the market right now. But that's a whole other story. Ok L. We've been short that for a year. You know. The problem with it was some of the names you mentioned, some of the utility stocks with the AI trade comes unstuck, and I believe it will. I think a lot of those derivative plays are going to take on water. Well, cru it's a little different so in sight a different orbit, But a lot of the derivative power plays I think are going to have a big problem. One last joke of it was great line someone you used a few weeks ago and me talking about, you know, you got to buy the picks and shovels. They said, yeah, well, what happens to you buy the picks and shovels and there's no gold in them hills Georgia. 00:10:32 Speaker 2: I got to get two things in here that I think our audience is really interested in. And overseas in the huge ups and some of the challenges you had a t ton as well. Are you correlated on overseas to what the dollar does? Like do you have to have a week dollar to make overseas work? 00:10:50 Speaker 3: No, you don't the but it's a very good question. You don't need a week or dollar. What you need to keep in mind is the economic cycles across different geographies varies in enormously and that's what you're trying to anticipate. You need to have somewhat of a top down perspective, not just bottom up with investing internationally. However, one thing I will say the dirty secret they don't tell you anymore. Way back when when I was a young and in the early days at Fidelity, it was much less correlation between the markets. Now, given the increasing interlinkages between markets, the correlations as much higher. I like to joke, why do I need to be up at ten o'clock at night trading the Japanese mark or get up at five am to watch the London market. I can lose money just as well between nine thirty a m. At four pm Eastern time, and I can get and I can get. 00:11:30 Speaker 2: A job playground on that, and of course on private credit. And I know you've been in the dump known as the Saint Regis. The old Saint Regis in Beijing was an absolute dump, folks. I'm sitting there in the nineties listening to CEO squared stuff and banker's giddy and the whole thing. Are we doing the reducts there on private credit and private equity where there's some shadows To say the. 00:11:52 Speaker 3: Least, you couldn't have said it better. My father always used to like to say, there's two ways of learning things, either by precept or by experience. It's much or more economical precept. We're all human, we all think this is brand new. It's dejevu all over again, as Yogi would say. 00:12:06 Speaker 4: So how about just real quick US versus non US? How do you think about that these days? Because I was a flight out of the US when the tariffs sure started happening. 00:12:14 Speaker 3: Sure you know, the US we had a more than a decade of app performance, largely in the back of the fact that US had much superior Ernie's growth was justified, largely led by tech. Okay, but now that when this global reflation growth is not as scarce as it was, so the rest of the world, rarely speaking, starts to do. The gap closes. And in fact that Ernie's growth and a lot of the farm markets exceeds what you see in the US right now in particular, but not all. It's rather heterogeneous group. So I think Japan's interesting. I think selected origin markets like Brazil and China, but you can't color them all the same brush. 00:12:50 Speaker 2: I got to ask one final question, and I'm doing this for ninety two nine. Good morning up in Boston. Thrill that you're with us from Mount Cataden down to the National Hotel on Blark Island, Noble. There was a girl that was just sort of at Fidelity. She came out of Hobart Williams. Smith, had a name named Johnson, and Fidelity was there when you were there and after you were there. What Abby Johnson has done at Fidelity is a miracle. I mean, are you surprised or shocked at what her leadership has done there after the turmoil of going from dad to daughter. 00:13:27 Speaker 3: It really has been outstanding. You know it. Pail is a wonderful company, is I think it was Garrett Morrison Saturday Night Live. You used to say Fidelity bad any Betty good to me? It's extremely well run company. Ned was fantastic. She's done a fantastic job as well. When I joined FIDELI you're gonna laugh. Last thing. I'll say they had eight billion under management. I think only three billion inequities. Fidelity, believe it or not, only hired two people a year back in nineteen eighty one. They came through the seventies, they lost money, some years, they had layoffs, and now they're eighteen trillion. This is the final line. I think it comes from Ned Johnson himself with something like never confuse brains with a bull market. 00:14:06 Speaker 2: So we'll do that. You can leave right now. George Noble, thank you so much. Definitive at Fidelity Overseas. Can't say enough about Look for him out on LinkedIn alone and on Twitter. Is caution of these times at the Fortia. 00:14:22 Speaker 5: Stay with us. 00:14:23 Speaker 2: More from Bloomberg Surveillance coming up after this. 00:14:33 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us Live Weekday afternoons from seven to ten am Eastern Listen on Applecarplay and Android Auto with the Bloomberg Business app, or watch us live on YouTube Joy and you've. 00:14:46 Speaker 2: Done it with this has been way too long. My economists of the year a few years back all were gloomy. He was optimistic and was wonderfully correct into a sustained high nominal GDP, lower employ unemployment market, Neil Donald, let's start with that. I think we have a set of stimuli. We have buoyant nominal GDP. Can that sustain well? 00:15:15 Speaker 8: I mean, thanks for having me on, Tom. You know, I think the main disconnect right now in the economic data as I see it is, you know, as you mentioned, you have very strong nominal GDP growth, you have relatively modest nominal income growth. So you know, there's a disconnect between the income that's being generated from the labor market and the growth that's being generated out of the economy. And you know, normally those two things, you know, move more or less on top of each other. So how you think that reconciles over the next you know, six to twelve months, I think will go a long way in kind of informing people about you know, how you think what the outlook would be, right, But but you know, there's you know, my own view is that I suspect GDP growth looks a little bit more sluggish. I mean, certainly in real terms, there really isn't a whole lot going on in the economy, right GDP is not is no great shakes for the last couple of quarters, and we're talking about something less than two percent. 00:16:21 Speaker 2: I mean, I look at this, and I look at the two America's axios with a brilliant note Paul this morning talking about the three worlds of AI. There's all these demarcations. Can you aggregate NEIL data? Now when you put together a Friday note? When Jeff de Graff calls you up on line to it, run back and he says, what the hell is going on? Can you aggregate this economy? Or we just subsets of whatever we're. 00:16:45 Speaker 8: Doing both Jeff is calling me on a Friday. I'm probably not picking up a bone, but yeah, I mean I think I think if you're a little bit more cautious on the outlook as I am, I think what you can say is that the economy is uneven. Uneven, Okay, you know, you don't really have much growth and structure's investment, right, so you know that's sort of a proxy for commercial real estate. You don't have much in residential investment. I mean, we're seeing existing home sales kind of bounce along the low's new home sales remain very sluggish. Builders continue to cut back on their starts guidance for the year, right, So there's not a lot of residential construction going on right now. And then when you look at the consumer, the consumer is resilient, but I'd hardly call it gangbusters. I mean, we're talking about again, you know, something along the order of, you know, the last couple of quarters around one and a half to two percent real consumption growth. And then on the other hand, on the on the positive side of the ledger, you have this sort of spectacular AI boom that's driving up equipment and software, and that's you know that probably has a role in other areas of the economy indirectly, right, I mean, you know, it supports a wealth effect for consumers. For example, it supports state government budgets because they get a huge windfall from the the equity market appreciation. So I think what you can say is that it's an uneven economy. And you know, look, I mean, from my perspective, I'm sort of like a housing I'm very clear about my sort of my own reaction function, right, I mean, I'm a very housing and labor market sensitive person, and generally speaking, I've seen hiring intentions come down this year, job finding rates get more challenging. You see that across many surveys of consumers, and the housing market remains quite sluggish. So you know, that's that to me, I guess leaves me a little bit more, you know, in contrast to a few years, I'm more on the cautious side of the ledger Neil. 00:18:56 Speaker 4: We saw just recently FED Chairman Walsh release his list of leaders of the various task forces that he has set up. Love to get your thoughts on kind of some of his selections. 00:19:08 Speaker 8: Well, I mean it's it's a sort of who's who of of economic policymaking and central banking. I mean, uh, In a in a note to clients today, I kind of mentioned that a Bill Palti to the d n I situation, this is not this is a this is a an incredibly impressive roster of people. But it's and and it's it's credible, credibility enhancing for the chair himself as he kind of sets out to leave his mark on the institution that he now finds himself leading. I would just say that, you know, a lot of these people are a already on the FED speed dial. I mean, these are people that go to Jackson Hole for example. You know, the idea that their views aren't well known within the FED already. I think it is probably not right. And they're also in many cases ideologically pred disposed to some of Worsh's you know, long held reason. But that also means that it's going to be a bit of a leap to get the rest of the committee to agree. I mean, Raga, Rajahn and Jeremy Stein don't have votes on the effort. 00:20:16 Speaker 2: See Neil, I, you did it wrong, because we're gonna have to go. Your first note in these task force is incredibly profoundly important. I was absolutely blown away by the quality. And when you look at the Trump appointments across a term and a half, it's radically different than anything we've seen from anywhere by the president. I mean, it is shocking when you see William White, Wagu Rajin and others on this list. I mean, it's an exquisite set of names on these task force. 00:20:51 Speaker 8: Yes, it's the very serious people, Tom, But you know, I will tell you that when you have a lot of very serious people leading these committees, I almost get like sort of a bit of Simpson Balls vibe from this. Ye serious things, but what really changes in the end, And you know, I think it's maybe it's akin to you know, him buying time with like maybe a shadow FMC. But as I say, my advice to investors is to keep focusing on the members of the committee that are will put right. And so that's that's sort of that's sort of where I'm at. 00:21:26 Speaker 2: Neil Donith, thank you, thank you, thank you for that note. Folks get that note from brind Meck this morning. It's just exquisite on the new task force at Chairman Warship his mentioned stay with us. More from Bloomberg Surveillance coming up after this. 00:21:47 Speaker 1: You're listening to the Bloomberg Surveillance Podcast. Catch us live weekday afternoons from seven to ten am Eastern Listen on Apple Karplay and Android Otto with the Bloomberg Business app, or watch us live on YouTube. 00:22:01 Speaker 2: I'm cut to the Chase what if he played for the Giants. The Giants is eleven times bigger than the New Orleans market. 00:22:10 Speaker 5: Yep. 00:22:10 Speaker 2: He is the most unsung giant of wide receiver football in the history of the league. 00:22:17 Speaker 5: There's no one close. 00:22:18 Speaker 2: I think at Cliff Branch at Oakland, who I knew at Boulder years ago, everybody you know. Marcus Colston joins us now from his New Orleans Saints with all of his accolade over the years, and he's kept it going out of Hofster. Paul with his philanthropy as well. 00:22:35 Speaker 4: Marque has Colston joints us here. He's the founder of the Champion Fund. Before we get to your fund, Marcus seventh round out of Hofstra. Yep, dude, how did you make ten years in the NFL then become like the top receiver for the Saints? How did that happen? Talk about a long shot? 00:22:51 Speaker 9: Yeah, I mean it's one of those things where I think the way that I came in, I was never able to get comfortable. 00:22:58 Speaker 5: Never it felt like I had job security. 00:22:59 Speaker 9: And once you get into kind of that mindset, you just keep striving for the next thing. So ten years later I was I was able to leave pretty accomplished. 00:23:07 Speaker 4: Awesome story man, talk to us about the Champion Fund. What is it and what are you trying to accomplish here? 00:23:13 Speaker 5: Sure? 00:23:13 Speaker 9: So, So the Champion Fund is a is an interval fund, so it's it's an SEC registered fund, and the mission and vision here is to make the sports asset class accessible to every investor. 00:23:25 Speaker 5: You know. 00:23:25 Speaker 9: Over the last decade or so, we've seen more and more you know, news and more and more conversation around the sports asset class and how it's growing, but it's typically been institutional investors only. And what we know me personally, you know, being the product on the field as a player, transitioning into the investment world, having some owner ownership and operational experience for about seven years. So I've been able to see this asset class from a bunch of different lenses. And the one thing that you realize is the biggest value catalyst for the asset class itself, the athletes, the fans. 00:23:59 Speaker 5: The coaches and men illustrators. 00:24:01 Speaker 9: They create all the value but get none of the equity in it. So the Champion Fund is really a vehicle that that makes that whole asset class. 00:24:07 Speaker 5: Accessible to It's been a response it's it's been. It's been a really good response. 00:24:12 Speaker 9: Right now, we're out trying to secure those those anchor investors, those institutional investors to kind of anchor the fund, but the concept has been really well received. The portfolio companies that we're in right now really love the concept of being able to get to kind of a distribution network of investors that typically they wouldn't have access to. 00:24:33 Speaker 5: So it's it's been, it's been, it's been well received. 00:24:36 Speaker 6: Where do you. 00:24:37 Speaker 4: Guys see value today? Because I mean the numbers have just gotten so huge, Like the NFL is not even a billionaires club anymore, it's your private equity, it's institutional money, and even the NBA the value of these franchises. Where do you see value in some of these maybe other areas of sports that are also growing. 00:24:55 Speaker 5: I mean, that's that's where we see the biggest value. We call it the value chains. 00:24:59 Speaker 9: So so so the fund itself breaks down across five different what we call subasset classes. 00:25:04 Speaker 5: So there's the. 00:25:05 Speaker 9: Sports teams themselves, which our focus would be typically on those emerging leagues, So think Syria. That's that's you know, slightly underrated from a media value perspective. We're looking at sports sports ventures, which is growth stage technology companies could be fan engagement tech, could be ticketing technology. We're looking at media and services businesses. We're also looking at real estate hospitality that could be sports anchored, mixed use that could be stadium development itself. And then we're looking at fund of funds, so you know, established fund managers that have a track record, have their own thesis. 00:25:42 Speaker 5: So we've taken asset class. 00:25:44 Speaker 9: We see value in all these different five buckets, and what we really believe is the true catalyst for all of the growth and evaluation is the media rights. Yes, so as media rights kind of displace and find their way down downstream, we see the kind of a high tid effect. 00:26:00 Speaker 4: So it's interesting, like one of the leagues that truly experience explosive growth is the w n b A, and that's been just extraordinary the last two or three years. They renegotiate their media rights pretty darn quickly. 00:26:14 Speaker 3: Here. 00:26:15 Speaker 4: How do the streaming services fit in here? I mean, is that going to be a source of media rights growth? Do you think for a lot of these maybe smaller leagues. 00:26:22 Speaker 9: Yeah, I think that's that's where the displacement is going to come. I think when you look at the linear broadcast networks that have traditionally been in the space, you're starting to see the Amazons and Netflixes of the world start to enter the space in a more in a more meaningful way. Those those media rights and those those those broadcast holders, the rights holders have to go somewhere else. 00:26:43 Speaker 2: I got three questions. I gotta squeeze them in here. How do you react in soccer when they fall down and fake like? 00:26:50 Speaker 5: I want to know. 00:26:52 Speaker 6: I literally turned it. 00:26:53 Speaker 2: I played hot, I literally turned the TV off. What does Markus Colton do? 00:26:57 Speaker 5: It doesn't register for me. 00:27:00 Speaker 6: Talk about the betting. 00:27:01 Speaker 2: When you were playing, it was Drew Brees is gonna throw the marquise, let's bet on it. 00:27:05 Speaker 3: It wasn't. 00:27:06 Speaker 2: There wasn't talk to the kids now about betting. 00:27:09 Speaker 9: I mean, it's it's it's prevalent, it's everywhere, and it's one of those those double edged swords. They tell you not to get involved with it, but you see it everywhere, plastered everywhere. You know, it's it's a it's a touchy it's a touchy thing. It's it's it's going to be in the game. 00:27:22 Speaker 2: You know anybody who's made money at it over long term. 00:27:25 Speaker 5: No, the house always wins. 00:27:28 Speaker 2: I got one final question. We get a huge response to being on the show. I don't know much about football, but I know that Drew Brees threw the ball totally different than anybody else and like in almost like in cricket or in baseball. The torque, the spin on the ball, I guess was like once in a generation. What was like catching that ball twenty yards? 00:27:54 Speaker 5: I'd say it was. It was. 00:27:56 Speaker 9: It was moving a lot faster than you think, but uh it. He just made the game so easy. It was just the way he saw the field. If you were able to see the field the same way as he did, he made the game so easy. 00:28:07 Speaker 5: He would throw it away from you. You could be covered and still be open at the same time. So what's next here for the fund? 00:28:14 Speaker 4: Here, what's next? 00:28:15 Speaker 9: It's really just dis continuing to tell the story, continuing to find those anchor investor partnerships, and just continue to get the word out. You know, we feel like we're building something that's unique and special. 00:28:26 Speaker 2: And an email just came in, where do you think of the Lions this year? 00:28:30 Speaker 3: The step? 00:28:35 Speaker 5: I think this is the year. I think you'll see more parody than any other year. 00:28:40 Speaker 2: Great Marcus, thank you so much. Marcus culting with us of the New Orleans Saints with all of his work the Champion. 00:28:46 Speaker 5: Stay with us. 00:28:47 Speaker 2: More from Bloomberg Surveillance coming up after this. 00:28:57 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us live weekday afternoons from seven to ten am Eastern Listen on Applecarplay and Android Otto with the Bloomberg Business app, or watch us live on Youtubet of Time Now with Chewan has just got an incredibly does work with McLaren tells Lando Norris what to do. 00:29:16 Speaker 6: Yeah, I wish that were the case, but I did. 00:29:18 Speaker 2: You know the Oscar piastres a little off this year. We'll fix that. I'm going to ask one question, is Paul's got all sorts of ai stuff going on the phrase that we use in America is you came off the boat from Taiwan, landed in North Edison, New Jersey, and have just been absolutely phenomenal in your education and your business development. On this day where we meant billions for a Korean company, so much of where you came from is still foreign to Americans what right now would you say to Americans about the entrepreneurial spirit of Korea, Taiwan and the rest to the Pacific rim. 00:30:01 Speaker 6: I think it's alive and well. 00:30:03 Speaker 7: I think what we've built here in America in terms of the American dream still as a beacon for entrepreneurs all over the world. You can see it today raising twenty nine billion dollars. As Paul and I were just talking about that, it's still alive and well. But at the same time, that diaspora of opportunity is all over the world, and so that goes for us here in the US as well as to make sure that we're not passing you by just because we're not familiar with it, just because we don't know too much about that particular country. Opportunity is all around the world, especially how much AI has democratized access to these markets. 00:30:37 Speaker 4: Talk to us about AI and how it how you believe it may impact the workforce. I happen to be in a camp. I hope I'm wrong that it's going to be a net destroyer of jobs. A lot of folks are telling me your too short term, Paul, think longer term. Longer term is tomorrow for me. But how do you think about. 00:30:54 Speaker 6: It, Paul, can't both things be true? 00:30:56 Speaker 3: Maybe? 00:30:57 Speaker 2: Right? 00:30:57 Speaker 6: I guess I feel like, in the. 00:30:59 Speaker 7: Short run, will it be a net destroyer of jobs? I'm in that camp. I do think many, many jobs, many white collar jobs, are going to go away when you think about the automation, and we think of not just the state of the art, because oftentimes we look at what's the state of the art, but we forget the velocity of the art and how much it's come, how far it's come in three years, let alone six, nine, ten years in the future. I think short term there's going to be a lot of disruption. Long term though, when you look at most technologies, I think there's going to be growth. 00:31:26 Speaker 5: Yep, that's what they tell us. 00:31:28 Speaker 4: Hellgo talk just about what you guys are doing at pelgo your company here. 00:31:31 Speaker 7: So if you believe that that's true, if you believe that there's going to be folks displaced, you look at kind of the steel industry in America. 00:31:38 Speaker 6: Right, you can say you can go. 00:31:39 Speaker 7: To those towns and say, overall all this kind of the white colonization of the workforce in the US has been a net benefit for the US. But you go to the steel belt and you get on in the time in a town square there and you tell them that I don't think you're going to make a lot of friends, and so I think that's going to happen with AI. And I think what's happening is that the US, like how our society he behaves, how our government behaves, we don't have great safety nets for folks, and so when you get displaced by AI, it's not like Europe, it's not like anywhere else in the way, where you have a big safety net. You can figure things out, you can retrain. We don't have that safety net, so pelgo. What we do is we go to the companies and say, hey, there are resources these folks really need. And if you're displacing them, or even if they're leaving voluntarily, there's things that are owed to them, including out placement, including a safety net. And that's actually who pays for our service. 00:32:27 Speaker 2: I have Edward Wong's Fabulous Chinese Book at my coffee table. It's my next book to get to and I just want you to discuss the threat of China in AI. In ev Volkswagon, Michael Barr telling us about not collapse that's too strong. But the industrial, broader technological threat of China, is it legitimate? 00:32:55 Speaker 6: It's a hard question to answer. 00:32:57 Speaker 7: I think when you look at the the entrepreneurs themselves, I think most folks are there to build a technology because they like the technology and they see opportunity. But AI is such a powerful market making and maybe world making and world shifting technology that governments invariably need to get involved. And when that happens, you know, it's very hard to say. 00:33:19 Speaker 2: So let me speak as an American and their government is playing with a stacked deck and they're crushing a short term and price ev they're flooding the world units units, units, big damned price. 00:33:32 Speaker 5: How do we compete? 00:33:34 Speaker 6: It's hard. 00:33:34 Speaker 7: You have to hold them to task with the international regulations, the framework in which we've built the international kind of trade order on. With that said, I think if you're the US government, you have to think about how do we support the entrepreneurs. 00:33:49 Speaker 6: How do we make sure we don't lose in this race. 00:33:51 Speaker 7: And I'm not saying that because I'm this kind of person that thinks there's going to be this AI utopia, but I fundamentally believe that this is going to be as important, if not more important, than the Internet. And if we were not the leaders of the Internet over the last thirty years, take a look at what our economy would have become in that timeline. And so there has to be a certain amount of support and an ability for us to compete on the world stage. 00:34:14 Speaker 4: Where do you think we are right now visa vi AI, the development to support the implementation. 00:34:20 Speaker 7: Oh I love that question because I actually think we're probably in the equivalent of two thousand ninety nine. Things feel a bit frothy. People are starting to say, I don't know if this AI thing is going to be real. Think about ninety nine, two thousand people said the same thing. In one it was the death of the Internet. But yet twenty years later everything, almost everything that was promised actually became true. So I think we're in a similar stage of AI development. 00:34:46 Speaker 2: Are you moving to Texas or Florida? 00:34:48 Speaker 8: Oh? 00:34:48 Speaker 7: I actually was posed that question recently, So you know, we incorporated in Delaware should have taken a closer look at Texas. 00:34:57 Speaker 6: Maybe we will. 00:34:58 Speaker 7: You know, it's it's I you. 00:35:01 Speaker 6: Know, it's good that there's competition out there, not just in Delaware. 00:35:05 Speaker 2: That was very political. Thank you so much, Chief Executive Officer Pelgo, just outstanding. Don't be a stranger. Please on technology, we need all these conversations we can get. 00:35:16 Speaker 1: This is the Bloomberg Surveillance Podcast, available on Apple, Spotify, and anywhere else you get your podcasts. Listen live each weekday, seven to ten am Eastern on Bloomberg dot com, the iHeartRadio app, tune In, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal