1 00:00:03,080 --> 00:00:07,480 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,160 --> 00:00:11,760 Speaker 2: It's the holiday season and everyone is getting ready to 3 00:00:11,840 --> 00:00:15,000 Speaker 2: buy stuff. For a lot of people that means getting 4 00:00:15,040 --> 00:00:18,560 Speaker 2: gifts and hitting end of your sales, But for companies 5 00:00:18,880 --> 00:00:21,800 Speaker 2: it means a different sort of shopping spree. 6 00:00:21,840 --> 00:00:24,480 Speaker 3: Microsoft saying, look at all this cash we have, We're 7 00:00:24,480 --> 00:00:27,800 Speaker 3: gonna boost our dividends sixty billion dollars of a buyback. 8 00:00:28,120 --> 00:00:31,760 Speaker 3: This has been a year where sweetness for investors have 9 00:00:31,800 --> 00:00:34,800 Speaker 3: played a really big role in coursely earnings. Right, Companies 10 00:00:34,840 --> 00:00:37,320 Speaker 3: have either been looking to the dividend or to the 11 00:00:37,360 --> 00:00:38,520 Speaker 3: buyback program. 12 00:00:39,120 --> 00:00:44,479 Speaker 2: Companies are buying back shares of their own stocks amid 13 00:00:44,520 --> 00:00:48,120 Speaker 2: a challenging economy for individuals and families across the US. 14 00:00:48,560 --> 00:00:50,800 Speaker 2: Some of the top earning companies in the country are 15 00:00:50,840 --> 00:00:53,760 Speaker 2: flush with cash, and they're using this cash to do 16 00:00:53,840 --> 00:00:56,400 Speaker 2: something that was once illegal but is now one of 17 00:00:56,400 --> 00:00:59,440 Speaker 2: the more popular financial strategies across sectors. 18 00:01:00,600 --> 00:01:03,600 Speaker 4: So companies are taking hundreds or even thousands of shares 19 00:01:03,600 --> 00:01:06,440 Speaker 4: of their stock out of the stock market, and they're 20 00:01:06,440 --> 00:01:10,119 Speaker 4: doing this by buying them back. In the past few years, 21 00:01:10,160 --> 00:01:13,600 Speaker 4: publicly traded companies in the US executed hundreds of billions 22 00:01:13,640 --> 00:01:17,600 Speaker 4: of dollars worth of buybacks. November through December is typically 23 00:01:17,640 --> 00:01:21,160 Speaker 4: the busiest period for them, and twenty twenty four is 24 00:01:21,240 --> 00:01:24,320 Speaker 4: on track to be the biggest year for stock buybacks ever. 25 00:01:24,800 --> 00:01:26,759 Speaker 2: But David, I've been trying to wrap my head around 26 00:01:26,840 --> 00:01:30,039 Speaker 2: why this strategy is so popular. The first time I 27 00:01:30,040 --> 00:01:32,479 Speaker 2: heard about it, it sounded kind of like a weird move. 28 00:01:32,760 --> 00:01:35,840 Speaker 4: I mean, fair enough, because companies sold those shares to 29 00:01:35,959 --> 00:01:38,680 Speaker 4: investors for a reason. They wanted to raise money to 30 00:01:38,760 --> 00:01:42,000 Speaker 4: run their businesses and grow their businesses. So given that, 31 00:01:42,160 --> 00:01:44,840 Speaker 4: it is a little jarring at face to see those 32 00:01:44,880 --> 00:01:47,840 Speaker 4: same companies spending their own money to get those shares 33 00:01:47,840 --> 00:01:48,560 Speaker 4: out of circulation. 34 00:01:49,200 --> 00:01:51,800 Speaker 2: But it all comes down to how this affects the 35 00:01:51,960 --> 00:01:53,160 Speaker 2: value of those shares. 36 00:01:53,200 --> 00:01:53,600 Speaker 1: It does. 37 00:01:53,720 --> 00:01:57,160 Speaker 4: If there are fewer shares in circulation, that means each 38 00:01:57,240 --> 00:01:59,680 Speaker 4: year that's out there is more valuable. 39 00:02:00,560 --> 00:02:02,560 Speaker 5: Means happier shareholders. 40 00:02:01,960 --> 00:02:03,720 Speaker 1: And often happier companies. 41 00:02:03,920 --> 00:02:07,600 Speaker 2: Okay, but there must be someone who's not winning in 42 00:02:07,640 --> 00:02:08,160 Speaker 2: this scenario. 43 00:02:08,200 --> 00:02:09,640 Speaker 1: There is always a loser. 44 00:02:10,919 --> 00:02:13,440 Speaker 4: Stock buybacks have a lot of critics within government and 45 00:02:13,480 --> 00:02:17,560 Speaker 4: among economists, and according to those critics, the losers are 46 00:02:17,639 --> 00:02:19,639 Speaker 4: essentially everybody. 47 00:02:19,120 --> 00:02:22,480 Speaker 2: Else, everybody who's not a shareholder in the company or 48 00:02:22,560 --> 00:02:24,240 Speaker 2: the company itself exactly. 49 00:02:26,160 --> 00:02:29,280 Speaker 5: I'm David Gera and I'm Sarah Holder. This is the 50 00:02:29,320 --> 00:02:31,040 Speaker 5: big take from Bloomberg. 51 00:02:30,560 --> 00:02:34,679 Speaker 2: News today on the show stock buybacks, Why companies do them, 52 00:02:34,800 --> 00:02:38,320 Speaker 2: why shareholders like them, and why regulators want to rain 53 00:02:38,400 --> 00:02:44,560 Speaker 2: them in. Blu Wang is on the cross asset desk 54 00:02:44,600 --> 00:02:47,840 Speaker 2: at Bloomberg News, meaning she covers the ins and outs 55 00:02:47,840 --> 00:02:50,239 Speaker 2: and ups and downs of the stock market every day, 56 00:02:50,840 --> 00:02:53,680 Speaker 2: and she's been writing about stock buybacks for more than 57 00:02:53,720 --> 00:02:56,560 Speaker 2: a decade. I asked her to break down how and 58 00:02:56,639 --> 00:03:01,120 Speaker 2: why they happen. We started with the how a buy 59 00:03:01,160 --> 00:03:02,120 Speaker 2: back is. 60 00:03:02,240 --> 00:03:05,720 Speaker 6: When a public trade the company buying back their own 61 00:03:05,880 --> 00:03:10,200 Speaker 6: shares on the open markets. The buy back shares from 62 00:03:10,280 --> 00:03:15,200 Speaker 6: existing shareholders, just as regular investors typically do through a 63 00:03:15,240 --> 00:03:16,120 Speaker 6: brokerage house. 64 00:03:16,480 --> 00:03:19,720 Speaker 2: So, just like a regular investor, the company reaches out 65 00:03:19,760 --> 00:03:22,320 Speaker 2: to a Wall Street firm like Goldman Socks or Bank 66 00:03:22,360 --> 00:03:25,880 Speaker 2: of America and asks to execute the trade. The company 67 00:03:25,960 --> 00:03:27,840 Speaker 2: can ask to buy all the shares they want on 68 00:03:27,880 --> 00:03:30,800 Speaker 2: a specific day, or they can buy back their shares 69 00:03:30,840 --> 00:03:33,520 Speaker 2: over time on what they call autopilot. 70 00:03:34,000 --> 00:03:36,720 Speaker 6: So, for instance, if a firm wants to buy back 71 00:03:36,920 --> 00:03:41,680 Speaker 6: ten million shares, the ten million share buybacks would be 72 00:03:42,080 --> 00:03:46,560 Speaker 6: conducted on an interval, for instance, monthly basis, so each 73 00:03:46,640 --> 00:03:50,200 Speaker 6: month one million buybacks. That's autopilot loss. 74 00:03:50,440 --> 00:03:52,880 Speaker 2: There are a few reasons why a company might want 75 00:03:52,880 --> 00:03:55,680 Speaker 2: to buy back its own shares. The first can be 76 00:03:55,720 --> 00:04:00,640 Speaker 2: explained by everyone's favorite economic concept, supply and demand. 77 00:04:01,120 --> 00:04:04,520 Speaker 6: Well, theoretically, you know, economics one oh one says when 78 00:04:04,560 --> 00:04:09,920 Speaker 6: demand increases, the prices will go up. So buybacks theoretically 79 00:04:10,320 --> 00:04:14,440 Speaker 6: represent a source of demand that would help prices go up. 80 00:04:15,000 --> 00:04:18,240 Speaker 6: For instance, if a company's value is stable, if it's 81 00:04:18,480 --> 00:04:23,600 Speaker 6: one hundred dollars company, just for the sake of a simplification, 82 00:04:24,360 --> 00:04:27,400 Speaker 6: and if they are one hundred shares outside, then each 83 00:04:27,440 --> 00:04:30,840 Speaker 6: year would be worth one dollar, and if you remove 84 00:04:30,920 --> 00:04:34,280 Speaker 6: half of it then it would become two dollars. 85 00:04:35,720 --> 00:04:38,800 Speaker 2: Basically, when a company buys back its own stock, there 86 00:04:38,839 --> 00:04:42,400 Speaker 2: are fewer shares out in the world. That means everyone's 87 00:04:42,440 --> 00:04:45,800 Speaker 2: remaining shares are worth a little more or a lot more. 88 00:04:46,520 --> 00:04:49,360 Speaker 2: That's obviously good news for those shareholders. 89 00:04:49,760 --> 00:04:52,880 Speaker 6: When the prices go up, they become richer, the holdings 90 00:04:53,000 --> 00:04:54,680 Speaker 6: are becoming more valuable. 91 00:04:55,080 --> 00:04:58,720 Speaker 2: Higher stock prices also look good on company earning reports. 92 00:04:59,080 --> 00:05:04,560 Speaker 6: It helps earnings pressure or revenue pressure. Those financial performance metrics. 93 00:05:04,279 --> 00:05:07,719 Speaker 2: And higher performance metrics for companies can also mean higher 94 00:05:07,760 --> 00:05:09,600 Speaker 2: compensation for executives. 95 00:05:09,880 --> 00:05:13,760 Speaker 6: Some of the executive's bonuses are tied to either shares 96 00:05:13,880 --> 00:05:19,640 Speaker 6: performance or earnings pressure growth. So by artificially making the 97 00:05:19,720 --> 00:05:26,040 Speaker 6: stocks more valuable or their earnings pressure better than whether 98 00:05:26,040 --> 00:05:28,760 Speaker 6: it's looks, their bonuses would benefit from that. 99 00:05:31,800 --> 00:05:34,080 Speaker 5: How is this not market manipulation. 100 00:05:34,800 --> 00:05:38,680 Speaker 6: That's a very good question because for a long time, 101 00:05:39,040 --> 00:05:45,520 Speaker 6: before the nineteen eighties, it was strictly restricted for the 102 00:05:45,640 --> 00:05:50,120 Speaker 6: very notion that it could be seeing as stock madipulation, 103 00:05:50,400 --> 00:05:53,320 Speaker 6: because basically what happened these companies came into the market 104 00:05:53,560 --> 00:05:56,760 Speaker 6: and bid up their own stocks in potentially inflating the 105 00:05:56,920 --> 00:06:02,440 Speaker 6: stock prices. But then came and begins and administration, they 106 00:06:02,720 --> 00:06:08,520 Speaker 6: started deregulating everything, and buy backs restrictions was loosened. Since then, 107 00:06:08,600 --> 00:06:12,200 Speaker 6: you have seen a steady increase in buybacks at this 108 00:06:12,320 --> 00:06:14,239 Speaker 6: rate this year could be a record. 109 00:06:14,560 --> 00:06:14,839 Speaker 5: Wow. 110 00:06:15,320 --> 00:06:18,120 Speaker 2: Why have they accelerated so much over the past few years. 111 00:06:18,200 --> 00:06:21,520 Speaker 6: Well, companies are doing well, they are making record profits, 112 00:06:21,760 --> 00:06:24,720 Speaker 6: and the economy it despite a lot of concerns about 113 00:06:25,080 --> 00:06:29,120 Speaker 6: the potential of recession. It hasn't happened, and companies that 114 00:06:29,120 --> 00:06:32,760 Speaker 6: will wash with cash, so that kind of helped them 115 00:06:32,800 --> 00:06:34,360 Speaker 6: to do more buybacks. 116 00:06:34,520 --> 00:06:37,719 Speaker 2: When Trump's corporate tax cuts went into effect in twenty eighteen, 117 00:06:38,080 --> 00:06:41,880 Speaker 2: they helped fuel stock buybacks too, because when companies have 118 00:06:41,920 --> 00:06:46,080 Speaker 2: more cash, they tend to spend it on buybacks. Goldman 119 00:06:46,160 --> 00:06:48,800 Speaker 2: Sachs estimates that S and P five hundred companies will 120 00:06:48,800 --> 00:06:51,880 Speaker 2: spend more than nine hundred and thirty billion dollars in 121 00:06:51,960 --> 00:06:55,160 Speaker 2: cash on buybacks this year and more than a trillion 122 00:06:55,480 --> 00:06:59,120 Speaker 2: next year. When you see a stock buybacks bree from 123 00:06:59,240 --> 00:07:02,080 Speaker 2: SMP five hundred companies, for example, what does it tell 124 00:07:02,120 --> 00:07:04,120 Speaker 2: you about the stock market at that moment? 125 00:07:04,560 --> 00:07:07,760 Speaker 6: Well, I think I would break it out into two scenarios. 126 00:07:07,920 --> 00:07:11,240 Speaker 6: One is, if it's a steady increase, as we just discussed, 127 00:07:11,360 --> 00:07:14,520 Speaker 6: it usually happens when the economy is doing well, companies 128 00:07:14,600 --> 00:07:19,520 Speaker 6: profitability is healthy, and companies just very confident that they'll 129 00:07:19,560 --> 00:07:22,440 Speaker 6: be able to generate enough cash to maintain the same 130 00:07:22,480 --> 00:07:28,720 Speaker 6: pace or even faster buyback programs. Another scenario is when 131 00:07:29,000 --> 00:07:32,120 Speaker 6: the market is under stress, they have a big sell 132 00:07:32,240 --> 00:07:36,200 Speaker 6: of and stocks tanked, and companies see value in their 133 00:07:36,200 --> 00:07:39,680 Speaker 6: own companies. They would swooping and scoop up their own 134 00:07:39,720 --> 00:07:44,040 Speaker 6: shares on the tube. It's usually a sign a confidence 135 00:07:44,360 --> 00:07:50,040 Speaker 6: that they don't necessarily see this kind of volatility is 136 00:07:50,080 --> 00:07:53,080 Speaker 6: going to hurt a business. That's a good sign, not 137 00:07:53,200 --> 00:07:58,040 Speaker 6: to mention that immediately provides a flaw for their share prices. 138 00:07:58,520 --> 00:08:01,400 Speaker 2: So buybacks they can be good for shareholders, good for 139 00:08:01,520 --> 00:08:04,520 Speaker 2: executives and their stock options, good for the markets, and 140 00:08:04,680 --> 00:08:07,600 Speaker 2: good for companies trying to lock in a better stock price. 141 00:08:08,360 --> 00:08:12,120 Speaker 2: But these buybacks are not cheap, and critics argue that 142 00:08:12,280 --> 00:08:15,400 Speaker 2: all the money companies are spending on their own shares 143 00:08:15,840 --> 00:08:19,320 Speaker 2: could be used on other things instead, innovation within their 144 00:08:19,360 --> 00:08:23,760 Speaker 2: own business, expanding their operations, giving raises to their workers. 145 00:08:24,240 --> 00:08:26,640 Speaker 6: That's the tradeoff a lot of companies need to make. 146 00:08:26,840 --> 00:08:31,160 Speaker 6: Do you help boost the shareholder values via buybacks, or 147 00:08:31,200 --> 00:08:35,800 Speaker 6: do you invest longer term by investing in plants, increasing 148 00:08:36,520 --> 00:08:41,160 Speaker 6: workers wage on benefits that arguably would benefit the host 149 00:08:41,240 --> 00:08:43,640 Speaker 6: society and the economy over the line run. 150 00:08:44,920 --> 00:08:48,520 Speaker 2: It's quite a trade off short term returns for shareholders 151 00:08:48,880 --> 00:08:52,240 Speaker 2: or long term benefits for the economy at large. When 152 00:08:52,240 --> 00:08:55,360 Speaker 2: we come back the push to tax buybacks at a 153 00:08:55,440 --> 00:08:58,760 Speaker 2: higher rate and whether efforts to rain them in will 154 00:08:58,760 --> 00:09:07,240 Speaker 2: make a dent at all. Companies flush with cash are 155 00:09:07,320 --> 00:09:10,800 Speaker 2: using stock buybacks to increase value for shareholders and boost 156 00:09:10,880 --> 00:09:15,400 Speaker 2: their stock prices. Since deregulation made buybacks like these possible, 157 00:09:15,559 --> 00:09:20,040 Speaker 2: they've become an increasingly popular financial tool, but also a 158 00:09:20,040 --> 00:09:24,320 Speaker 2: controversial one. So I asked Bloomberg's lou Wing about more 159 00:09:24,360 --> 00:09:29,840 Speaker 2: of the downsides. Who exactly does a stock buyback hurt? 160 00:09:29,920 --> 00:09:33,280 Speaker 2: Who's losing when companies buy back their shares. 161 00:09:33,559 --> 00:09:38,040 Speaker 6: If companies don't invest for the long run, the whole society, 162 00:09:38,120 --> 00:09:42,760 Speaker 6: the economy suffers because there is no prospect of growth. 163 00:09:43,000 --> 00:09:46,800 Speaker 6: The other argument against the buybacks, it's on this concept 164 00:09:46,840 --> 00:09:53,080 Speaker 6: of wealth gap. When you provide buybacks to the wealthy people, 165 00:09:53,160 --> 00:09:56,640 Speaker 6: they benefit a lot, but it's actually left behind a 166 00:09:56,679 --> 00:09:59,480 Speaker 6: lot of the poor people. Just to put this in, 167 00:09:59,520 --> 00:10:03,880 Speaker 6: the in the bottom half of American house hosts have 168 00:10:04,480 --> 00:10:09,600 Speaker 6: roughly zero point four trillion dollars invested in equities, and 169 00:10:09,679 --> 00:10:13,240 Speaker 6: that's a tiny fraction of the twenty trillion dollars owned 170 00:10:13,320 --> 00:10:16,240 Speaker 6: by just the top one percent. So there is a 171 00:10:16,280 --> 00:10:18,600 Speaker 6: big gap between the rich and pool. 172 00:10:18,800 --> 00:10:22,160 Speaker 2: And so these stock buybacks could help these wealthier shareholders 173 00:10:22,200 --> 00:10:25,280 Speaker 2: who are super invested in the stock market, but it 174 00:10:25,400 --> 00:10:28,120 Speaker 2: might not help the long term business growth which could 175 00:10:28,960 --> 00:10:30,960 Speaker 2: impact more Americans. 176 00:10:31,080 --> 00:10:32,480 Speaker 6: Exactly, exactly. 177 00:10:32,960 --> 00:10:36,160 Speaker 2: So, are there any companies that are famous or infamous 178 00:10:36,200 --> 00:10:39,240 Speaker 2: for using buybacks as a business strategy. 179 00:10:39,640 --> 00:10:43,160 Speaker 6: Well, I wouldn't say as a key business strategy, but 180 00:10:43,240 --> 00:10:48,000 Speaker 6: we do see a lot of technology megacaps. They have 181 00:10:48,120 --> 00:10:51,680 Speaker 6: tons of catching the balance sheets, so they do give 182 00:10:51,720 --> 00:10:55,360 Speaker 6: out a big portion of the money to shareholders. Apple 183 00:10:55,800 --> 00:11:01,079 Speaker 6: earlier this year announced one hundred and ten billion dollar buybacks. 184 00:11:01,360 --> 00:11:03,679 Speaker 5: What was happening that made them do that. 185 00:11:03,559 --> 00:11:05,679 Speaker 6: Well, they just have tons of cash there and they 186 00:11:05,679 --> 00:11:09,840 Speaker 6: don't necessarily see the benefit of investing, you know, or 187 00:11:09,840 --> 00:11:14,920 Speaker 6: buying up another company. So whatever research R and D requirement, 188 00:11:14,960 --> 00:11:18,520 Speaker 6: there is enough to be funded, and they're under pressure 189 00:11:18,600 --> 00:11:22,160 Speaker 6: by shareholders to boost their value to appease those kind 190 00:11:22,160 --> 00:11:23,120 Speaker 6: of investors. 191 00:11:23,559 --> 00:11:27,120 Speaker 2: There are plenty of economic conditions where buybacks wouldn't be 192 00:11:27,160 --> 00:11:29,800 Speaker 2: such a savvy move. Though. What does it say about 193 00:11:29,800 --> 00:11:32,960 Speaker 2: the economy when there's a slowdown in stock buybacks? 194 00:11:33,280 --> 00:11:38,280 Speaker 6: Very good question. So when the company decides to suspend buybacks, 195 00:11:38,360 --> 00:11:41,880 Speaker 6: usually it's when they see some troubles that had either 196 00:11:42,080 --> 00:11:44,520 Speaker 6: a researching is looming or slow down or they have 197 00:11:44,600 --> 00:11:48,880 Speaker 6: some business troubles, they would suspend buybacks in order to 198 00:11:48,960 --> 00:11:53,040 Speaker 6: preserve cash, and that's not a good sign. For instance, 199 00:11:53,120 --> 00:11:58,000 Speaker 6: during the pandemic, many companies affected by the lockdowns, for 200 00:11:58,120 --> 00:12:02,000 Speaker 6: instance airlines, they suspend it buybacks in order to preserve 201 00:12:02,040 --> 00:12:05,400 Speaker 6: their cash. Remember, some of the companies do buybacks on 202 00:12:05,400 --> 00:12:10,960 Speaker 6: the autopilot basis, So sometimes they announced the buybacks for instance, 203 00:12:11,000 --> 00:12:14,200 Speaker 6: you know, as example, they plan to do this over 204 00:12:14,240 --> 00:12:17,160 Speaker 6: the next couple of years, and they say, Okay, we're 205 00:12:17,160 --> 00:12:20,640 Speaker 6: going to suspend buying our own shares, either on the 206 00:12:20,720 --> 00:12:23,479 Speaker 6: quarterly or on their monthly basis. 207 00:12:23,559 --> 00:12:26,720 Speaker 2: So a company could have said in twenty nineteen, we're 208 00:12:26,760 --> 00:12:28,600 Speaker 2: going to be doing buybacks for a couple of years. 209 00:12:28,600 --> 00:12:32,440 Speaker 5: Then the pandemic hits, they might have to cool it. Yes, 210 00:12:32,520 --> 00:12:33,520 Speaker 5: on the Bible exactly. 211 00:12:35,520 --> 00:12:38,440 Speaker 2: Stock buybacks are here to stay, but there's been an 212 00:12:38,480 --> 00:12:40,959 Speaker 2: effort to reign in the frenzy at the federal level. 213 00:12:41,480 --> 00:12:44,880 Speaker 2: President Joe Biden and Senators Elizabeth Warren and Chuck Schumer 214 00:12:45,000 --> 00:12:48,480 Speaker 2: have been vocal critics of buybacks. So has President elect 215 00:12:48,600 --> 00:12:51,760 Speaker 2: Donald Trump, who in twenty eighteen called out companies for 216 00:12:51,920 --> 00:12:54,240 Speaker 2: using some of the cash they saved from his tax 217 00:12:54,280 --> 00:12:56,040 Speaker 2: cuts to fund buybacks. 218 00:12:56,360 --> 00:12:59,760 Speaker 6: So Democrats and Republicans have different opinions on a lot 219 00:12:59,760 --> 00:13:03,080 Speaker 6: of but when it comes to buybacks, they seem to 220 00:13:03,080 --> 00:13:05,720 Speaker 6: be on the same page, which is, buyback is not 221 00:13:05,880 --> 00:13:09,760 Speaker 6: good for the long term prospect of the economy and 222 00:13:10,240 --> 00:13:15,080 Speaker 6: companies should use profits to create new jobs. So in 223 00:13:15,120 --> 00:13:20,600 Speaker 6: twenty twenty two, Congress voted to impose a one percent 224 00:13:20,720 --> 00:13:22,319 Speaker 6: tax on buybacks. 225 00:13:22,400 --> 00:13:24,680 Speaker 5: And what did that tax do well? 226 00:13:24,800 --> 00:13:28,320 Speaker 6: The goal of that tax is to discourage buybacks, but 227 00:13:28,520 --> 00:13:31,280 Speaker 6: that has done little. It's too little to make a 228 00:13:31,480 --> 00:13:32,480 Speaker 6: minifold difference. 229 00:13:33,360 --> 00:13:36,720 Speaker 2: Biden had wanted even higher taxes on buybacks. In his 230 00:13:36,760 --> 00:13:39,360 Speaker 2: twenty twenty three State of the Union address, he called 231 00:13:39,440 --> 00:13:42,760 Speaker 2: for a quadrupling of the rate to four percent. But 232 00:13:42,840 --> 00:13:45,760 Speaker 2: he's leaving office with a one percent tax in place, 233 00:13:46,760 --> 00:13:49,680 Speaker 2: and with the Fed leaning towards cutting interest rates more 234 00:13:49,920 --> 00:13:55,160 Speaker 2: and Trump proposing more corporate tax cuts, experts project another 235 00:13:55,400 --> 00:13:58,040 Speaker 2: banner year for the buyback well. 236 00:13:58,360 --> 00:14:02,280 Speaker 6: Goldman Sax has a very optimistic forecast on buybacks. They're 237 00:14:02,320 --> 00:14:06,800 Speaker 6: projecting fifteen percent of increase from this year, which we 238 00:14:06,880 --> 00:14:08,480 Speaker 6: know is heading for another record. 239 00:14:13,320 --> 00:14:16,280 Speaker 2: Thanks for listening to the Big Take podcast from Bloomberg News. 240 00:14:16,440 --> 00:14:17,640 Speaker 2: I'm Sarah Holder. 241 00:14:17,480 --> 00:14:20,160 Speaker 4: And I'm David Gera. This episode is produced by Julia 242 00:14:20,160 --> 00:14:21,560 Speaker 4: Press and Alex Sekura. 243 00:14:21,240 --> 00:14:24,360 Speaker 1: Who also mixed it. It was fact checked by Adriana Tapia. 244 00:14:24,600 --> 00:14:28,240 Speaker 2: It was edited by Stacy Vanixsmith, Aaron Edwards, and Sid Verma. 245 00:14:28,360 --> 00:14:31,680 Speaker 2: Naomi Shaban is our senior producer. Nicole Bimsterbor is our 246 00:14:31,680 --> 00:14:35,320 Speaker 2: executive producer. Sage Bauman is Bloomberg's head of podcasts. 247 00:14:35,640 --> 00:14:37,880 Speaker 4: Please follow and review The Big Take wherever you listen 248 00:14:37,920 --> 00:14:38,680 Speaker 4: to podcasts. 249 00:14:38,800 --> 00:14:40,280 Speaker 1: It helps new listeners find the show. 250 00:14:40,680 --> 00:14:41,960 Speaker 5: We'll be back tomorrow.