WEBVTT - Cook Hearing Ends With No Judge Ruling; Live from US Open Day 2 0:00:02.520 --> 0:00:10.520 Bloomberg Audio Studios, Podcasts, Radio News. This is Bloomberg business 0:00:10.520 --> 0:00:14.400 Week Daily reporting from the magazine that helps global leaders 0:00:14.440 --> 0:00:18.360 stay ahead with insight on the people, companies, and trends 0:00:18.400 --> 0:00:23.400 shaping today's complex economy. Plus global business finance and tech 0:00:23.480 --> 0:00:27.360 news as it happens. The Bloomberg Business Week Daily Podcast 0:00:27.680 --> 0:00:31.760 with Carol Masser and Tim Stenebeck on Bloomberg Radio. 0:00:32.520 --> 0:00:35.199 That's Molly Smith. She's Bloomberg News Economics Editor. She's in 0:00:35.240 --> 0:00:37.400 for Carol mass Re live from the US Open. I'm 0:00:37.440 --> 0:00:40.680 Tim Stenebek. It is Bloomberg Business Week Daily. We start 0:00:40.680 --> 0:00:43.880 with the latest from our nation's capital and the emergency 0:00:43.920 --> 0:00:47.239 hearing about Lisa Cook. This is Friday's hearing on Federieser 0:00:47.240 --> 0:00:50.400 of Governor Lisa Cook's motion for a temporary restraining order 0:00:50.440 --> 0:00:53.400 blocking her firing by President Trump. I want to bring 0:00:53.440 --> 0:00:57.560 in Michael McKee. He's Bloomberg News Economics and Policy correspondent. 0:00:57.880 --> 0:01:00.640 He joins us in the Bloomberg Interactive at Brokers Studio. 0:01:01.160 --> 0:01:04.000 Mike Judge Cobb grilled both sides, but ended the hearing 0:01:04.000 --> 0:01:07.600 without a ruling on Cook's request for an emergency ruling. 0:01:07.640 --> 0:01:08.640 What's the latest. 0:01:09.240 --> 0:01:12.160 Well, we're probably not going to hear anything until Tuesday 0:01:12.240 --> 0:01:16.960 at the earliest. What happened was the cook people basically 0:01:17.040 --> 0:01:19.880 applied for a temporary restraining order to keep her in 0:01:20.040 --> 0:01:25.360 her job until the matter could be heard as far 0:01:25.440 --> 0:01:26.240 as whether she. 0:01:26.160 --> 0:01:27.679 Should keep her job or not. 0:01:28.120 --> 0:01:32.240 The next step would be an injunction to keep her 0:01:32.319 --> 0:01:34.400 in her job if that were the case, and the 0:01:34.480 --> 0:01:37.920 judge sort of collapsed those two ideas with the ascent 0:01:38.000 --> 0:01:40.760 of both sides, So there was a longer hearing than 0:01:40.800 --> 0:01:44.679 we expected as she questioned both sides on what's going 0:01:44.720 --> 0:01:47.640 to happen, but then gave the lawyers until Tuesday to 0:01:47.720 --> 0:01:49.280 file their next motions. 0:01:49.440 --> 0:01:52.080 So it was a signal we're not going to get 0:01:52.080 --> 0:01:53.040 anything over the weekend. 0:01:55.520 --> 0:01:58.000 Okay, so maybe we can enjoy the holiday weekend or 0:01:58.120 --> 0:01:59.760 perhaps try to at least. 0:02:00.560 --> 0:02:02.320 Especially people who are at the US. 0:02:02.280 --> 0:02:05.120 Time will oh. 0:02:05.160 --> 0:02:07.640 Well, I mean, we have it's nice here, but we're 0:02:07.640 --> 0:02:10.200 also very focused on what's going on back in Manhattan. 0:02:10.800 --> 0:02:13.760 And so tell us, Mike, this was with a district 0:02:13.800 --> 0:02:16.720 court judge. Everyone's talking about how this is going to 0:02:16.760 --> 0:02:19.280 be a Supreme Court matter. What are the steps between 0:02:19.320 --> 0:02:21.359 now and getting to the Supreme Court. 0:02:21.960 --> 0:02:23.520 Well, this judge is going to have to rule on 0:02:23.600 --> 0:02:26.600 whether or not to put a temporary hold on the 0:02:26.639 --> 0:02:30.639 president's firing of Lisa Cook at some point, whether it's 0:02:30.680 --> 0:02:35.160 Tuesday or later next week. And then if she says 0:02:35.280 --> 0:02:38.960 that the president can fire her, that changes the narration 0:02:39.200 --> 0:02:42.600 because then the president would probably move to replace her 0:02:42.639 --> 0:02:45.400 fairly quickly, and you create a whole new set of 0:02:45.480 --> 0:02:50.000 legal problems there because the ultimate case has not been decided. 0:02:50.520 --> 0:02:54.000 But if she does allow Cook to stay on. 0:02:53.960 --> 0:02:56.640 The job, then what we would see is the administration 0:02:56.760 --> 0:02:59.440 go to the Court of Appeals. The Court of Appeals, 0:03:00.000 --> 0:03:02.400 this is what's happened in previous attempts by Trump to 0:03:02.400 --> 0:03:05.680 fire people, has basically let the president proceed. Now we 0:03:05.800 --> 0:03:07.440 know that this is a little bit of a different 0:03:07.480 --> 0:03:12.960 situation because the Supreme Court carved out an exemption for 0:03:13.040 --> 0:03:16.800 the FED saying that somebody has to be fired for cause, 0:03:17.480 --> 0:03:20.440 and so that would that decision would turn on what 0:03:20.600 --> 0:03:22.680 is the definition of for cause, which is what they 0:03:22.720 --> 0:03:26.119 spend an awful lot of time on today. And then 0:03:26.440 --> 0:03:30.720 if both sides, whichever side loses, that the appeals Court 0:03:30.760 --> 0:03:32.920 takes it to the Supreme Court. I think that would 0:03:32.919 --> 0:03:35.920 be the basic question. What does it mean to say 0:03:36.000 --> 0:03:39.720 the president can fire something someone for cause? According to 0:03:40.360 --> 0:03:44.920 the Cook side, the president is using just allegations, nothing proven, 0:03:45.480 --> 0:03:49.400 and that doesn't rise to the level of a cause 0:03:49.480 --> 0:03:53.760 to fire somebody. And the Trump side says, well, Trump 0:03:53.800 --> 0:03:56.400 is the president and basically he can do whatever he wants. 0:03:56.440 --> 0:03:58.960 It's up to him to decide what for cause means. 0:03:59.360 --> 0:04:02.360 So it's a fundamental question that is probably going to 0:04:02.440 --> 0:04:03.920 end up at a Supreme Court. 0:04:05.960 --> 0:04:11.480 Is that the Justice Department attorney Yakov Roth's argument. Essentially 0:04:11.520 --> 0:04:15.360 here it's whether or not to include something that happened 0:04:15.440 --> 0:04:19.040 or could have happened before she became a governor on 0:04:19.080 --> 0:04:21.880 the Federal Reserve. Does the timing of this matter, Does 0:04:21.920 --> 0:04:24.040 the intent of this matter? 0:04:24.800 --> 0:04:25.680 None of that matters. 0:04:25.720 --> 0:04:30.320 According to mister Roth, the president has the absolute right, 0:04:30.440 --> 0:04:35.760 according to the administration, to determine what four cause means. 0:04:35.800 --> 0:04:38.520 Now that opens up a can of worms that the 0:04:38.640 --> 0:04:42.200 Cook people are trying to spread around on this fishing 0:04:42.240 --> 0:04:46.800 expedition by the president. Because if that's the case, then 0:04:46.960 --> 0:04:49.559 the law is somewhat moved. There's no point in saying 0:04:49.560 --> 0:04:53.239 fore cause, because the president could fire somebody whenever he wants, 0:04:53.279 --> 0:04:55.159 because he can make up whatever he wants to be 0:04:55.720 --> 0:04:59.039 for cause, and so that's going to be kind of 0:04:59.040 --> 0:05:03.160 the decision that Judge has to make, that is, does 0:05:03.200 --> 0:05:04.880 this rise to the level of four cause? 0:05:04.960 --> 0:05:07.080 Does the president have that right now? 0:05:07.440 --> 0:05:11.960 It's a tough situation for Judge Cobb, except that she's not. 0:05:12.040 --> 0:05:14.320 Going to be the last word on this by any means. 0:05:17.040 --> 0:05:19.040 Well, this is what I wanted to actually come back 0:05:19.040 --> 0:05:22.479 to you on Mike, because I can see a situation 0:05:22.640 --> 0:05:26.000 in which a ruling comes out it's not to Trump's liking, 0:05:26.360 --> 0:05:29.760 and Gia Cobb was appointed by Biden, and I wonder 0:05:29.839 --> 0:05:33.080 how much more this gets politicized potentially than if the 0:05:33.160 --> 0:05:34.599 ruling does not go his way. 0:05:34.680 --> 0:05:36.880 Is that something that's coming up in your reporting at all? 0:05:37.600 --> 0:05:39.919 Well, the question, kind of Molly, is could it be 0:05:40.560 --> 0:05:43.640 any more politicized? They spent quite a bit of time 0:05:43.680 --> 0:05:47.719 today talking about how many tweets that Bill Poulti the 0:05:48.000 --> 0:05:52.880 Federal Housing Administration, a Federal Housing Agency administrator, has put 0:05:52.920 --> 0:05:56.880 out on this something over thirty tweets accusing Cook of 0:05:56.960 --> 0:06:00.240 doing something illegal without offering any proof. So it has 0:06:00.279 --> 0:06:04.719 become quite politicized already. I think that the biggest question 0:06:04.960 --> 0:06:09.440 is going to be whether the President is able to 0:06:09.440 --> 0:06:12.200 get rid of her, and that would raise questions on 0:06:12.279 --> 0:06:15.800 Wall Street of politicization that haven't quite hit the markets yet, 0:06:15.839 --> 0:06:18.719 because I think the traders are basically thinking that the 0:06:18.760 --> 0:06:21.760 president will lose if he wins. That's going to raise 0:06:21.800 --> 0:06:24.520 an awful lot of questions about how policy is going 0:06:24.560 --> 0:06:25.799 to be made going forward. 0:06:28.200 --> 0:06:30.080 I do want to talk a little bit about the 0:06:30.120 --> 0:06:32.680 economic data that we got earlier today. Before we do that, 0:06:32.720 --> 0:06:35.279 I just want to bring everybody some flavor and color 0:06:35.320 --> 0:06:37.280 about where we are at the US Open right now. 0:06:37.320 --> 0:06:38.120 You might hear a. 0:06:38.120 --> 0:06:40.080 Little bit of a Ruckustan see behind us a lot 0:06:40.120 --> 0:06:43.159 of fans. It's because Carlos Alcoraz, who just won in 0:06:43.279 --> 0:06:47.000 straight sets, is sitting just a couple of feet from. 0:06:46.839 --> 0:06:48.719 Us doing interviews with the media here. 0:06:48.800 --> 0:06:51.680 So you have a ton of people right behind us 0:06:51.960 --> 0:06:55.840 trying to make Carlos Carlo's attention, and you. 0:06:55.760 --> 0:06:57.520 Know, we just want to talk about economic data. That's 0:06:57.560 --> 0:06:58.440 what we're trying to do. 0:06:58.440 --> 0:07:00.360 Do you think Carlos wants to come on to talk 0:07:00.400 --> 0:07:01.839 about the PC reports. 0:07:01.520 --> 0:07:02.240 That I think he was. 0:07:02.279 --> 0:07:03.840 I don't think he was paying any attention to the 0:07:03.839 --> 0:07:05.120 PC report before his match. 0:07:05.160 --> 0:07:06.120 Molly, you don't think so. 0:07:06.160 --> 0:07:08.440 No, you were, though, So let's get. 0:07:08.240 --> 0:07:09.560 Well, that's what I would want to know. 0:07:09.880 --> 0:07:12.640 I want to know exactly what happened to inflation of 0:07:12.680 --> 0:07:15.240 the month of July before I take to Arthur ash Stadium. 0:07:15.280 --> 0:07:17.080 Okay, well, let's bring in much McKee on that. In 0:07:17.080 --> 0:07:18.960 the last few minutes that we have, Mike, the data 0:07:18.960 --> 0:07:21.480 that we got bang in line with expectations today. 0:07:21.480 --> 0:07:22.560 Any surprises in there. 0:07:23.520 --> 0:07:26.640 The surprises came on the income and spending side, on 0:07:26.640 --> 0:07:30.600 on the price side. It's not really any any kind 0:07:30.600 --> 0:07:33.240 of surprise anymore for the PCE, because the data come 0:07:33.240 --> 0:07:36.400 in and other releases and economists can pull them out 0:07:36.400 --> 0:07:38.520 and put them together before we even get the numbers. 0:07:38.840 --> 0:07:40.320 A bit of us increase in. 0:07:40.280 --> 0:07:42.640 The core number on a year over year basis to 0:07:42.640 --> 0:07:45.880 two point nine percent, But whether that leads the Fed 0:07:45.920 --> 0:07:47.920 to do one thing or another kind of depends on 0:07:47.960 --> 0:07:50.400 whether you already think the Fed should be cutting rates 0:07:50.480 --> 0:07:54.160 or on hold. It's certainly not near two percent, but 0:07:54.360 --> 0:07:57.560 the month over month number went down a tenth, and 0:07:57.640 --> 0:08:01.040 so if you're thinking you can cutying, well, maybe we're 0:08:01.320 --> 0:08:04.920 seeing a little bit of restraint in inflation. The income 0:08:05.040 --> 0:08:10.000 numbers came in strong though. In terms of wages and salaries, 0:08:10.080 --> 0:08:12.200 they were up six tenths of a percent after a 0:08:12.320 --> 0:08:15.920 one tenth rise in June, so Americans had more money 0:08:15.960 --> 0:08:17.200 and they did spend. 0:08:17.640 --> 0:08:18.360 You can also. 0:08:18.400 --> 0:08:20.840 Parse that by saying a lot of that was on automobiles, 0:08:20.880 --> 0:08:24.240 as people try to buy cars ahead of the price increases. 0:08:24.280 --> 0:08:27.160 The automakers have promised for the new models coming out soon, 0:08:27.760 --> 0:08:32.160 so it doesn't really lead us anywhere. I haven't looked 0:08:32.240 --> 0:08:35.880 deep enough into the PCE inflation numbers though to see 0:08:35.920 --> 0:08:38.760 what the price of haircuts did. 0:08:39.720 --> 0:08:41.439 Maybe you can ask Carlos stat. 0:08:43.520 --> 0:08:44.679 I was gonna say that. 0:08:45.400 --> 0:08:46.880 I always brings it home. 0:08:47.360 --> 0:08:51.160 Mike McKee, Lieberg News International Economics and Policy correspondent. He 0:08:51.280 --> 0:08:53.439 is on top of it all, whether it's everything from 0:08:53.440 --> 0:08:55.280 the FED or what they are talking about here at 0:08:55.320 --> 0:08:59.360 the US Open, which yes, does include Carlos Alcaraz's new haircut, 0:08:59.360 --> 0:09:01.439 which way we learned earlier this week it was. 0:09:01.360 --> 0:09:02.160 Sort of a mistake. 0:09:02.640 --> 0:09:04.840 Yeah, I need to still like read up fully on this. 0:09:04.920 --> 0:09:07.240 It was something that like did his brother end up? 0:09:07.400 --> 0:09:09.480 I don't know who did it, but you know, he said, 0:09:09.480 --> 0:09:11.120 sometimes you just have to start fresh, and that's what 0:09:11.160 --> 0:09:13.240 he did here and Tiofo. 0:09:12.880 --> 0:09:14.520 Gave him a pretty hard Yeah. 0:09:14.600 --> 0:09:16.640 All good friends there. I mean the hilarious part. 0:09:16.640 --> 0:09:19.280 If you've seen anything in Carlos's matches, he kind of 0:09:19.280 --> 0:09:21.000 puts his hand through said it's like, oh wait, I 0:09:21.000 --> 0:09:22.920 don't know, it's kind of funny. 0:09:23.720 --> 0:09:24.520 Stay with us. 0:09:24.559 --> 0:09:27.559 More from Bloomberg Business Week Daily coming up after this. 0:09:31.480 --> 0:09:35.320 You're listening to the Bloomberg Business Week Daily Podcast. Catch 0:09:35.400 --> 0:09:38.080 us live weekday afternoons from two to five ees during 0:09:38.080 --> 0:09:41.520 this listen on Applecarplay and Android Otto with the Bloomberg 0:09:41.559 --> 0:09:45.959 Business app, or watch us live on YouTube on. 0:09:46.000 --> 0:09:50.520 This last trading day of September? Can you believe August August? 0:09:50.600 --> 0:09:51.080 Excuse me? 0:09:51.240 --> 0:09:54.520 Right, yeah, it feels like September with the decline that 0:09:54.559 --> 0:09:55.200 we're seeing today. 0:09:55.240 --> 0:09:55.760 Oh my god. 0:09:55.840 --> 0:09:57.720 Yeah. Rough, I mean we were just we just had 0:09:57.760 --> 0:10:00.560 a record yesterday. Fibes today not as good. 0:10:00.880 --> 0:10:02.719 Yeah, yeah, really getting hit. 0:10:03.559 --> 0:10:05.120 I mean you think it was the PC data? 0:10:05.320 --> 0:10:05.719 No, I don't. 0:10:06.200 --> 0:10:07.880 I mean, because it wasn't that. Yeah, it was in 0:10:08.000 --> 0:10:09.760 line with expectations. Just I don't know. 0:10:09.760 --> 0:10:12.439 Maybe I had to give up some gains after yesterday's rally. 0:10:12.440 --> 0:10:13.920 But I mean, our next guy's going to tell us 0:10:13.920 --> 0:10:15.560 all about is. We're going to bring her in right now. 0:10:16.080 --> 0:10:18.160 We have Jillian Wolf coming in to join us. She's 0:10:18.200 --> 0:10:22.680 global equity strategist with Bloomberg Intelligence in the Interactive broker studio. 0:10:22.720 --> 0:10:24.439 Hey, Jillian, thanks for joining us today. 0:10:24.600 --> 0:10:26.720 Thank you. I hope you guys are enjoying the time 0:10:26.720 --> 0:10:28.880 at the US Open today. I'm a bit jealous. 0:10:31.480 --> 0:10:33.160 Oh, we are having a lot of fun, but we 0:10:33.200 --> 0:10:34.920 had to come back to talk to you because we 0:10:34.960 --> 0:10:37.280 have the clothes coming up. Tell us about what the 0:10:37.320 --> 0:10:40.080 trade of all today and what we're looking into going 0:10:40.120 --> 0:10:40.880 into four o'clock. 0:10:41.600 --> 0:10:43.880 Sure, I mean we're officially at the end of the 0:10:43.880 --> 0:10:47.120 two Q earning season right now, with Nvidia having reported. 0:10:47.360 --> 0:10:49.800 I think what was a lot of providing a lot 0:10:49.800 --> 0:10:53.520 of fuel for this rally was that earnings expectations going 0:10:53.559 --> 0:10:56.120 into the second quarter were actually quite low, and it 0:10:56.160 --> 0:11:01.120 provided a really easy environment for companies to be because 0:11:01.160 --> 0:11:03.640 the brunt of the tariff impact was expected to start 0:11:03.760 --> 0:11:06.000 hitting now. But in reality, what we saw was that 0:11:06.120 --> 0:11:08.760 tariffs were not actually that influential on these two Q 0:11:08.840 --> 0:11:13.040 earnings reports. So what we saw were massive beats which 0:11:13.040 --> 0:11:15.480 really helped drive the equity rally. But I think now 0:11:15.520 --> 0:11:18.960 investors are starting to look forward to how tariffs might 0:11:19.000 --> 0:11:22.240 start to hurt those three Q and four Q earnings 0:11:22.280 --> 0:11:24.160 and we might not get as much fuel from those 0:11:24.200 --> 0:11:27.200 easy beats that we've been getting over the past few weeks. 0:11:27.240 --> 0:11:29.720 So a little bit of lowering momentum on that side. 0:11:29.920 --> 0:11:31.880 We've also just seen a lot of profit taking in 0:11:31.880 --> 0:11:34.280 the megacap stocks, like you said in video, down still 0:11:34.360 --> 0:11:37.760 quite a bit today. Tech broadly still looks strong for US. 0:11:37.840 --> 0:11:40.200 We posted a note last week that on median tech 0:11:40.320 --> 0:11:44.000 was holding up. But because the indices are so heavily 0:11:44.080 --> 0:11:47.280 concentrated in these large names, it distorts the picture a 0:11:47.320 --> 0:11:49.280 little bit. If you have a few names going down, 0:11:49.600 --> 0:11:51.640 particularly in Vidia being one of them, you're going to 0:11:51.720 --> 0:11:55.000 start to think, oh, tech must be collapsing everywhere because 0:11:55.040 --> 0:11:57.640 it's driving all of these indices so heavily. 0:12:00.080 --> 0:12:02.920 On the tariff side of things, Why is it taking, 0:12:03.080 --> 0:12:07.240 in your view, relatively and what I would consider a 0:12:07.240 --> 0:12:10.120 long time to hit earnings or to at least hit 0:12:10.160 --> 0:12:13.080 the stock prices of these companies. I thought the market 0:12:13.160 --> 0:12:17.160 looked forward and you know, there's nothing clear in ahead 0:12:17.200 --> 0:12:19.080 of us than having to pay tariffs. 0:12:20.160 --> 0:12:22.840 It's a great question, and I have a twofold answer. 0:12:22.840 --> 0:12:25.360 The first is that a lot of companies did stock 0:12:25.480 --> 0:12:29.400 up on inventories bracing for these tariffs, So there is 0:12:29.400 --> 0:12:31.480 a little bit of a stockpile now where they're not 0:12:31.520 --> 0:12:33.960 necessarily going to have to pay tariffs on imports that 0:12:34.000 --> 0:12:36.319 are going to hit. We did have this ninety day 0:12:36.360 --> 0:12:38.240 pause on what the worst of the tariffs were going 0:12:38.320 --> 0:12:40.560 to be. I think what we're seeing in the market 0:12:40.640 --> 0:12:43.480 is a little bit of relief that what was supposed 0:12:43.480 --> 0:12:45.640 to play out on a liberation Day doesn't appear to 0:12:45.679 --> 0:12:49.040 be happening. Even though the tariff situation were worse off 0:12:49.120 --> 0:12:51.600 right now than we were, let's say, in September, because 0:12:51.720 --> 0:12:55.400 we aren't as bad as analysts had it originally expected 0:12:55.440 --> 0:12:58.840 in April. They're ultimately seeing this as good news and 0:12:58.920 --> 0:13:02.080 positive upside the fact that company margins didn't just collapse 0:13:02.160 --> 0:13:04.559 in two Q, which is what some of the concerns 0:13:04.559 --> 0:13:06.800 going into this quarter were. But we definitely have to 0:13:06.880 --> 0:13:08.440 keep an eye out on three Q and four Q. 0:13:08.600 --> 0:13:11.360 There's definitely notes coming out on earnings calls, and companies 0:13:11.400 --> 0:13:14.079 are still not entirely sure. I just think we avoided 0:13:14.120 --> 0:13:17.080 the worst case scenario, so markets are breathing a little 0:13:17.080 --> 0:13:19.960 bit of a sigh of relief, but definitely on trepidacious 0:13:20.040 --> 0:13:20.760 terms right now. 0:13:23.240 --> 0:13:25.760 So, Julian, you're saying here, the tariffs haven't been that 0:13:25.880 --> 0:13:29.439 impactful to earning so far. Ninety nine percent of the 0:13:29.520 --> 0:13:31.880 year I write about the US economy, one percent I 0:13:31.960 --> 0:13:34.439 write about Tennis. But when we're trying about the economy, 0:13:34.880 --> 0:13:37.719 it hasn't really impacted inflation that much either. We got 0:13:37.720 --> 0:13:41.080 the PCEE data for July this morning. Goods prices were 0:13:41.120 --> 0:13:44.120 actually down in the month and services, kind of mirroring 0:13:44.120 --> 0:13:47.160 what we saw on the CPI earlier in August. That's 0:13:47.200 --> 0:13:50.280 where it seems like inflation is really pecking back up again. 0:13:50.360 --> 0:13:52.960 And if I were a stock investor, I feel like 0:13:53.040 --> 0:13:53.920 that has got to be. 0:13:54.440 --> 0:13:56.040 A much scarier omen for me. 0:13:56.120 --> 0:13:58.520 You know, this isn't the tariff driven goods inflation that 0:13:58.559 --> 0:14:01.480 we had the luxury of thinking that might look through. 0:14:01.960 --> 0:14:04.400 This is something that is perhaps more persistent. 0:14:05.120 --> 0:14:08.120 It's persistent, and it's supply side. We published a note 0:14:08.120 --> 0:14:11.160 and I had mentioned it last week that we were 0:14:11.160 --> 0:14:15.200 already seeing producer prices accelerate faster than consumer prices, and 0:14:15.240 --> 0:14:17.960 that's really a red flag for us because it means 0:14:18.000 --> 0:14:21.720 that companies are struggling to push these costs onto the consumer, 0:14:22.120 --> 0:14:24.240 and it also begs the question of how much rate 0:14:24.320 --> 0:14:27.240 cuts could actually help at this point. If the inflation 0:14:27.400 --> 0:14:30.320 is coming from the supply side of things, rate cuts 0:14:30.400 --> 0:14:33.800 can't really do as much. They can help release the 0:14:33.840 --> 0:14:37.680 burden on consumers, but if things just become more expensive 0:14:37.720 --> 0:14:40.680 for companies themselves to purchase, they're going to have to 0:14:40.720 --> 0:14:43.400 pass that on to the consumer ultimately. And they make 0:14:43.440 --> 0:14:45.520 it some relief from those cuts. They may pay less 0:14:45.520 --> 0:14:47.880 interest on their car payments or their credit card payments, 0:14:48.120 --> 0:14:50.680 which could allow them to pay more for goods. But 0:14:50.720 --> 0:14:53.000 the idea that we're not going to see inflation flow 0:14:53.040 --> 0:14:55.640 through eventually, I think is a little bit misguided. We're 0:14:55.720 --> 0:14:58.560 just starting to see companies start to pay more for 0:14:58.640 --> 0:15:01.120 these inputs, and it is going to take some time 0:15:01.160 --> 0:15:04.000 to gradually flow through. Remember, we were on a ninety 0:15:04.120 --> 0:15:07.360 day tear off pause that technically did restart just this month, 0:15:07.440 --> 0:15:09.120 so we're only going to start to see this data 0:15:09.200 --> 0:15:12.320 really hit the economy in the coming weeks and months. Now. 0:15:15.200 --> 0:15:16.800 Hey, Jillian, before we let you go, you and the 0:15:16.800 --> 0:15:20.240 team out with a note overnight about value having a 0:15:20.240 --> 0:15:23.440 banner year in Europe. What's the outlook in your view 0:15:23.720 --> 0:15:26.400 on value stocks over in Europe. 0:15:26.680 --> 0:15:30.080 It's interesting because we haven't seen that same thesis play 0:15:30.120 --> 0:15:33.000 out in the US. Value stocks in Europe are really 0:15:33.040 --> 0:15:35.280 beat up, but they've been beat up for a long time, 0:15:35.400 --> 0:15:37.800 and a lot of this is now just people buying 0:15:38.120 --> 0:15:40.680 what they think could be a solid deal because it's 0:15:40.760 --> 0:15:44.040 just so cheap in the US. Even the cheapest stocks 0:15:44.120 --> 0:15:46.920 aren't that cheap by comparison. They're may be cheaper compared 0:15:46.960 --> 0:15:49.680 to some of the highest mag seven stocks, but cheap 0:15:49.720 --> 0:15:52.320 in the US doesn't actually need cheap relative to the globe. 0:15:52.360 --> 0:15:54.920 So we're definitely seeing investors maybe moving a little bit 0:15:54.960 --> 0:15:57.440 more towards safety, trying to pick up on some of 0:15:57.480 --> 0:15:59.800 these beat up stocks in Europe, and we're seeing value 0:15:59.800 --> 0:16:02.520 do quite well as a result. 0:16:03.640 --> 0:16:08.520 Gillian Wolf on the Bloomberg Intelligence ATM Equity Strategist over there, 0:16:08.800 --> 0:16:11.360 have a great weekend, Have a great long weekend. Appreciate 0:16:11.360 --> 0:16:14.320 you joining us from the Bloomberg Interactive Brokers Studio. 0:16:15.520 --> 0:16:19.680 This is the Bloomberg Business Week Daily Podcast. Listen live 0:16:19.760 --> 0:16:22.960 each weekday starting at two pm Eastern on Applecarplay and 0:16:22.960 --> 0:16:26.000 Android Auto with the Bloomberg business app. You can also 0:16:26.120 --> 0:16:29.800 listen live on Amazon Alexa from our flagship New York station. 0:16:30.320 --> 0:16:32.280 Just say Alexa play Bloomberg. 0:16:32.280 --> 0:16:33.000 Eleven thirty. 0:16:34.120 --> 0:16:36.480 We are at the US Open just outside of Arthur 0:16:36.480 --> 0:16:39.680 Ash Stadium in Flushing, New York. We're surrounded by about 0:16:39.680 --> 0:16:42.880 seventy thousand of our closest friends and also by somebody 0:16:42.880 --> 0:16:45.160 who joins us on site every year during our US 0:16:45.200 --> 0:16:48.120 Open broadcast. Kirsten Coreo is back with us. She's Chief 0:16:48.160 --> 0:16:51.880 Commercial Officer of the USTA, the owner and operator of 0:16:52.080 --> 0:16:54.520 the US Open. What does she do well, If it 0:16:54.520 --> 0:16:56.560 has to do with money and bringing it in, that's 0:16:56.600 --> 0:17:02.120 what she does. Think of course, ticket sales, hospital global metiaites, sponsorships, 0:17:02.120 --> 0:17:07.320 digital strategy, business intelligence and more. Kirsten, how are you 0:17:07.400 --> 0:17:09.239 good to see you? It's once a year we get 0:17:09.280 --> 0:17:09.639 to see you. 0:17:10.040 --> 0:17:10.920 It's great to see you. 0:17:11.000 --> 0:17:12.600 It's the busiest time of the year for you. 0:17:12.840 --> 0:17:14.440 It's the most wonderful time of the year. 0:17:14.520 --> 0:17:16.600 Well, it's the time truly where you guys all live 0:17:16.640 --> 0:17:19.199 in a hotel do right near here because you are 0:17:19.200 --> 0:17:21.800 here twenty four to seven actually not watching any tennis 0:17:21.840 --> 0:17:22.960 because you're working the whole time. 0:17:23.359 --> 0:17:23.840 That's right. 0:17:24.040 --> 0:17:25.879 So let's talk a little bit about how. 0:17:25.760 --> 0:17:27.959 The revenue generation is looking for the year. I mean, 0:17:28.000 --> 0:17:30.320 three years in a row of record breaking attendance. What 0:17:30.359 --> 0:17:32.640 can you tell us about just the business this year 0:17:32.760 --> 0:17:33.720 going into the US. 0:17:33.600 --> 0:17:35.760 Open, Well, I can tell you said, three years in 0:17:35.840 --> 0:17:38.639 a row of record breaking attendance, this should be a 0:17:38.640 --> 0:17:42.000 fourth year in a row of record breaking not just attendance, 0:17:42.080 --> 0:17:46.359 but over lots of different areas that we measure. So attendance, yes, 0:17:46.920 --> 0:17:49.800 viewership across through the first round, we're up thirty six 0:17:49.840 --> 0:17:53.320 percent on our domestic ESPN, ABC, ESPN two coverage, which 0:17:53.320 --> 0:17:58.520 is amazing. We actually had the second highest viewership and 0:17:58.560 --> 0:18:03.920 it's in Italy's of tennis through the first round, amazing, 0:18:03.960 --> 0:18:07.160 a lot of great Italian players. Merchandise is up double 0:18:07.200 --> 0:18:11.040 digit percentages, ticket sales up double digit percentages. And with 0:18:11.119 --> 0:18:13.480 the opening Sunday start to the men's and women's main 0:18:13.560 --> 0:18:17.160 draw singles play and men's and women's doubles main draw play, 0:18:18.359 --> 0:18:20.560 we're up double digit percentages and going to like break 0:18:20.600 --> 0:18:24.800 records and ticket sales and all the per caps related 0:18:24.840 --> 0:18:25.480 to that as well. 0:18:25.560 --> 0:18:27.680 So it sounds like things are obviously moving in the 0:18:27.760 --> 0:18:31.320 right direction on the attendance side of things. I'm curious 0:18:31.320 --> 0:18:35.560 about the balance between the criticisms last year about there 0:18:35.560 --> 0:18:38.560 were too many people here because everybody wanted to be here. 0:18:38.840 --> 0:18:41.080 How did you balance that this year with a different 0:18:41.080 --> 0:18:43.719 strategy when it came to ticket sales in terms of 0:18:43.760 --> 0:18:46.560 like tapping certain ticket sales at different times to make 0:18:46.600 --> 0:18:48.680 it so people could actually get around here. 0:18:48.960 --> 0:18:49.840 Yeah, it's interesting. 0:18:49.840 --> 0:18:51.880 I mean, we never want to restrict people that want 0:18:51.920 --> 0:18:53.480 to come from being able to come, But at the 0:18:53.480 --> 0:18:55.360 same time, we want to ensure that the people who 0:18:55.440 --> 0:18:58.240 are here on site and have you know, bought their 0:18:58.240 --> 0:19:00.280 tickets and paid good money and looked forward to planning 0:19:00.320 --> 0:19:02.520 to being here on site have a phenomenal fan experience. 0:19:02.600 --> 0:19:04.879 So we did make the hard decision to reduce the 0:19:04.880 --> 0:19:07.320 amount of tickets that we would sell over this very 0:19:07.359 --> 0:19:10.800 busy Labor Day weekend. So yesterday was the first day 0:19:10.840 --> 0:19:14.840 of that implementation. We did start to implement some changes 0:19:14.880 --> 0:19:20.720 to better manage crowds through the thoroughfares, better manage how 0:19:20.760 --> 0:19:23.760 we're spreading out competition and content across the different courts, 0:19:23.800 --> 0:19:26.840 practice courts and competition courts, so that people have more 0:19:26.920 --> 0:19:29.639 options around the site to experience the different content and 0:19:29.720 --> 0:19:32.080 enjoy it in a more free flowing way and not 0:19:32.160 --> 0:19:35.160 in a crushed way alongside seventy thousand of their friends. 0:19:35.320 --> 0:19:37.760