Speaker 1: This is Bloomberg Business. Wait inside from the reporters and
Speaker 1: editors who bring you America's most trusted business magazine, plus
Speaker 1: global business finance and tech news. The Bloomberg Business Week
Speaker 1: Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.
Speaker 2: Jam in a little pop pana talk Man, I love
Speaker 2: that song. Kind of takes me back.
Speaker 3: You are listening and watching Bloomberg Business Week and talking
Speaker 3: about hitting.
Speaker 2: With your best shot.
Speaker 3: I feel like, man, the jobs report this morning just
Speaker 3: kind of firing on all cylinders.
Speaker 4: Would you call it a Goldilocks report?
Speaker 2: Well, exactly like.
Speaker 3: I feel like it kind of checked all the boxes
Speaker 3: that the Fed needed to do. And so let's just
Speaker 3: get right to it. Because our own Molly Smith, she's
Speaker 3: Bloomberg News Economics editor. She's a fan of tennis, and
Speaker 3: we're going to talk about that in just a moment.
Speaker 4: We think she's actually off today, Are you off?
Speaker 5: No, I've worked. I actually went on the Bloomberg Markets
Speaker 5: Show this morning and they said that for every time
Speaker 5: someone mentioned it was a Goldilocks report, that added to
Speaker 5: the shot counts. So in case anybody is keeping track.
Speaker 4: It's like it's a sip of honey for you, I.
Speaker 5: Will take that.
Speaker 3: It's like the AI shot game and then the Goldilocks
Speaker 3: economy shot game. Let's talk though the jobs report and
Speaker 3: we say goldilocks because it kind of right.
Speaker 2: It's not falling apart, but it's easing. So walk us
Speaker 2: through it. What was important?
Speaker 5: No, I think that's exactly the way that we've been
Speaker 5: describing it to just like this. Actually, my editor came
Speaker 5: up with us when I really like this a controlled
Speaker 5: cooling of the job market. Yeah, so we've got a
Speaker 5: moderation in hiring, which has been the continuing trend. And
Speaker 5: I wouldn't be surprised to see if the print that
Speaker 5: came in today was revised lower a month later, because
Speaker 5: that seems to be happening just about every month that
Speaker 5: we get a jobs report. We also saw slowly wage
Speaker 5: gains and higher unemployment rate, but for what we would
Speaker 5: call a quote good reason, because it reflected more people
Speaker 5: coming into the labor force, so greater participation is.
Speaker 4: You know, I heard Mike McKee, International Economics and Policy
Speaker 4: correspondent on Surveillance talking about this this morning. The bankruptcy
Speaker 4: of the Yellow Trucking Company thirty thousand jobs not included
Speaker 4: in this month's report as a result of what we
Speaker 4: saw there, how should we read into those one off scenarios,
Speaker 4: because when we learned of Yellows bankruptcy, we also knew
Speaker 4: that thanks to the economic data, there are a lot
Speaker 4: of trucking jobs out there, or these uneployed truckers to
Speaker 4: go get they.
Speaker 5: Very well could have been scooped up already. And you know,
Speaker 5: speaking of one officer, I mean it's hard to tell.
Speaker 5: But how however long the Hollywood strikes are going to continue.
Speaker 5: That also subtracted from payrolls quite a bit, so that
Speaker 5: one eighty seven thousand number for the added jobs in
Speaker 5: the month would have been even stronger if not for
Speaker 5: the effect of those two events. Yeah, I mean, it's
Speaker 5: it's we saw really a pretty broadcase, broad based gain,
Speaker 5: especially though in the service producing industries, in healthcare and
Speaker 5: you know some of these industries where we've had a
Speaker 5: lot a lot of those labor shortages. So still continuing
Speaker 5: to climb back, which is a good sign.
Speaker 3: What I thought was really wild and cool and interesting
Speaker 3: is people coming back to the workforce, right the labor
Speaker 3: participation rate and also what they talked about, was it
Speaker 3: the participation rate for prime age workers in terms of
Speaker 3: it rebounding, That to me is significant. The people on
Speaker 3: the sidelines who were like, I'm out are all a
Speaker 3: sudden back in.
Speaker 5: Yeah, it took them some time. I don't know what
Speaker 5: these people have been doing, and we've all obviously been working,
Speaker 5: but they're back now, and a lot of them are
Speaker 5: back so and that's really helping to ease the wage
Speaker 5: pressure picture a lot so more of the when we
Speaker 5: hear supply and demand of labor coming back into balance,
Speaker 5: that's where you see it happening.
Speaker 4: So if you're a Federal Reserve Chair J. Powell and
Speaker 4: you're sitting there at your Bloomberg terminal at eight twenty
Speaker 4: nine fifty nine this morning, waiting for those prayers, saying
Speaker 4: your prayers, waiting for those numbers to come.
Speaker 2: Across A thirty twenty nine, he is like, I'm out
Speaker 2: to the beach.
Speaker 5: I'm good here today.
Speaker 4: These numbers hit. What are you thinking?
Speaker 5: I think it's just I don't know what more you
Speaker 5: could really ask for. You know, this is like showing
Speaker 5: exactly the soft landing case that he's been preaching would
Speaker 5: be possible and would have has been his base case
Speaker 5: all along. So I mean I'm obviously, you know, you
Speaker 5: can't take too much of a victory lab and they're
Speaker 5: going to be careful not to. But we'll hear from
Speaker 5: more FED speakers next week and then predictably, the call
Speaker 5: right now is that the September decision is going to
Speaker 5: be to leave rates unchanged.
Speaker 3: Help me, though, because I'm looking at a two year
Speaker 3: note that definitely popped up right. There's my charts all
Speaker 3: along the Yelk curve, the five and the two and
Speaker 3: the two year wented a yield to four point eighty six.
Speaker 3: I've got a ten yere at four one sixty seven,
Speaker 3: and we definitely did see a bit of a pop
Speaker 3: in the equities and they pulled off the higher rate moves, though,
Speaker 3: is telling.
Speaker 5: Us what I mean? I think that you still have
Speaker 5: November on the table. That's you can't be ruled out. Jamie.
Speaker 5: That very clear at Jackson Hole last week that they
Speaker 5: have to keep their options open. And I think most
Speaker 5: economists right now would tell you that November is very
Speaker 5: much a live meeting, even though September more or less
Speaker 5: seems locked in to hold steady and.
Speaker 3: In terms of the market pricing and rate cuts for
Speaker 3: next year, still happening.
Speaker 5: Maybe be a bit less so, but yeah, I mean
Speaker 5: the moves today just very much showing September being unchanged
Speaker 5: pretty solid before you, Maerica.
Speaker 4: One more, okay, hire for longer? How long? How long
Speaker 4: does that mean?
Speaker 5: Don't we all want to know? Tim? If I need
Speaker 5: answer to that, I wouldn't be sitting here.
Speaker 2: No, actually.
Speaker 3: She would be here, she wouldn't be talking to She
Speaker 3: would actually be like a box.
Speaker 6: Right.
Speaker 4: The President's the President's suite.
Speaker 5: That sounds nice.
Speaker 3: One more just to attack on to Tim, what's the
Speaker 3: next focal point in terms of economic data points?
Speaker 5: Oh goodness, not a whole lot going on next week.
Speaker 5: It's really more in the FED speaker front, so hearing
Speaker 5: from a few of them next week, and then they're
Speaker 5: in blackout before the September fo MC meeting. So it
Speaker 5: would be interesting to see just you know, we've seen
Speaker 5: some of these factions coming about in the committee of
Speaker 5: like where the doves are, where the hawks are, how
Speaker 5: people are interpreting the data. So we'll give it a
Speaker 5: nice clear picture next week of like where everyone stands.
Speaker 4: Oh okay, well, Molly, I mean fifty weeks a year,
Speaker 4: you know, I see you around the office, and we're
Speaker 4: just basically we're just doing a countdown to these two weeks. Yes,
Speaker 4: you told me before the show, this has been like
Speaker 4: the best week of your life running around the US Open.
Speaker 4: What have you seen? What are you excited to see tonight?
Speaker 4: Who's on your who's on your list of winners?
Speaker 5: I really have had the best week. Nothing can take
Speaker 5: away from this. Have been absolutely glowing.
Speaker 2: So do you love the sport?
Speaker 5: I do. I've played forever. I used to teach I watch.
Speaker 5: I mean, the reason why I got into journalism. I
Speaker 5: was hoping to be a tennis commentator more so than
Speaker 5: an economy one. But I've got a nice.
Speaker 4: Come all right, we'll be right now. We got about
Speaker 4: seven minutes where you can be a tennis commentator.
Speaker 5: Right now, we'll waste it, Okay. I just came from
Speaker 5: before I came over here was watching the top men's
Speaker 5: doubles team in the world. I think they're doing well
Speaker 5: up in the third set right now. This is Neil
Speaker 5: Scubsky and cool and Woolcough. Those are the two names
Speaker 5: sometimes I get tripped up on. But they're playing a
Speaker 5: Colombian team and it is fiery in there. Some of
Speaker 5: the South American crowds. You know it is a Seahart
Speaker 5: producer right now, he's pomped. It is crazy. I think
Speaker 5: the best match I've probably ever seen in my twenty
Speaker 5: something years of coming to the US Open might have
Speaker 5: been yesterday when I watched a Brazilian woman play an
Speaker 5: American woman in the singles on Court seventeen, which is
Speaker 5: one of the smaller stadium courts. But the atmosphere is
Speaker 5: electric and you better believe the Brazilians were there in force.
Speaker 5: Obviously the Americans were as well. It was fire. This
Speaker 5: was Taylor Townsend and Beatrice Hadadmia.
Speaker 3: Fire meaning what the strength, the force, the power, what
Speaker 3: I mean, the sheer game of course, the shop making
Speaker 3: also really rare to see two lefties going at it,
Speaker 3: so that was a lot of fun and just you know,
Speaker 3: I think it also for a lot of people who
Speaker 3: come here and maybe you're not really familiar with tennis,
Speaker 3: you don't watch it the rest of the fifty weeks
Speaker 3: of the year, like I do, you think of it
Speaker 3: as maybe a more quote gentlemanly sport.
Speaker 5: You know, it's quiet, the little golf clap. This was
Speaker 5: like a soccer match or football, but you know it was.
Speaker 5: It was insane in there, like the people were out
Speaker 5: on their up, on their feet after every point.
Speaker 4: Do you like the first week or the second week better?
Speaker 5: First?
Speaker 4: I do too well, doubtedly, because I mean I think
Speaker 4: the biggest secret of coming to the US Open is
Speaker 4: like stay out of ash, yes, and just go around
Speaker 4: to the courts. The outside courts, you see the best
Speaker 4: tennis players in the world. You can get up close
Speaker 4: to them. Sometimes you walk up to courts people are
Speaker 4: in a third set or a fifth set, You've never
Speaker 4: heard of them, and you literally get to be in
Speaker 4: the front row and see the best tennis you've ever seen.
Speaker 3: Which speaks to what we talked about with the team
Speaker 3: over at ay IBM in terms of what they are
Speaker 3: doing is a lot of the other courts don't get
Speaker 3: a lot of attention, but they're taking now the footage
Speaker 3: and they're creating AI generated commentary and that they're finding
Speaker 3: people want that, they want to know what's going on
Speaker 3: and on some of the other courts around here.
Speaker 5: I think what a lot of casual tennis fans probably
Speaker 5: also don't have a great grasp of is just how
Speaker 5: good you have to be to part of my language,
Speaker 5: but suck at the US Open. Like, if you're a
Speaker 5: singles player and you lose in the first round, you
Speaker 5: still were among the top one hundred and twenty eight
Speaker 5: players in the world. A lot of them had to
Speaker 5: go through several rounds of qualifying to get in there.
Speaker 5: You're still going to see amazing tennis. And it's a
Speaker 5: lot better than, like you said, Tim going into ash
Speaker 5: and seeing a blowout in the first week.
Speaker 3: Can we talk women, yes, because now that all right,
Speaker 3: Venus was here but she's out unfortunately.
Speaker 2: And then Serena we know not here.
Speaker 3: I think I saw her last match last year, but
Speaker 3: we never know right whether or not she could come back.
Speaker 5: Serene Aving, Yeah, I don't know. She's had her second kid.
Speaker 5: A couple of weeks.
Speaker 3: She did just have her second kid. What are we
Speaker 3: looking forward to in terms of the next generation when
Speaker 3: it comes to women, We know that there's already a
Speaker 3: few names out there.
Speaker 5: Yeah, I mean, I think like there's it's really never
Speaker 5: been a better time in recent years to be a
Speaker 5: fan of Americans tennis, and the women are really doing
Speaker 5: so well on the front of the men as well.
Speaker 5: But I'm really excited about Cocoa Goff and Jess Pigula
Speaker 5: like everyone else. I saw them play in doubles together
Speaker 5: the other day. Actually, I think they were the only
Speaker 5: players in the world right now where we are top
Speaker 5: ten in singles and doubles. Each of them really impressive,
Speaker 5: not easy to do. So they are really just like
Speaker 5: riding a ton of momentum from the summer hardcore season
Speaker 5: into the US Open. The other top three seeds are
Speaker 5: also doing incredibly well on the single side, so it's
Speaker 5: not I haven't been too many big upsets yet. I
Speaker 5: think most of the women are really it's it's been
Speaker 5: a I'm just having a.
Speaker 4: Blast watching them, you know, it's pretty amazing. You mentioned
Speaker 4: Jess Pagoula, she's also doing mixed doubles. Like, she's not
Speaker 4: playing mixed doubles today. She like, wait, wasn't she just
Speaker 4: playing last night? And ash, why is she out here today?
Speaker 4: And then I saw it was mixed doubles. She's doing everything.
Speaker 5: Yeah, and you know some players do that. It's I think,
Speaker 5: you know, I've listened to what some of the commentators
Speaker 5: have to say about it. A lot of them will
Speaker 5: tell you, you know, like great to play doubles, you know,
Speaker 5: really helps your singles game gets you at the net
Speaker 5: a lot more your reaction time, just getting more reps
Speaker 5: in in general, but the mixed being maybe that's a
Speaker 5: little too much, especially if you're a serious contender in
Speaker 5: the second week of the singles draw.
Speaker 4: But the problem is here in New York, some of
Speaker 4: these matches don't end until one or two in the morning, right,
Speaker 4: and then you're you're the problem for the player, and
Speaker 4: it's right for the tame and some of those players
Speaker 4: if they have a doubles or a mixed doubles match
Speaker 4: the next two day.
Speaker 5: Ben Sholton today too, doing a doubleheader.
Speaker 2: It's pretty incredible. How old are these guys are? They're young?
Speaker 5: Oh yeah, Ben's twenty, so you.
Speaker 2: Can do that.
Speaker 5: Remember doing all nighters getting out the same thing is twenty,
Speaker 5: Jess is twenty seven, Cocos nineteen, we bet it.
Speaker 3: Serena having her second baby. There is this trend and
Speaker 3: you write about it too. Have these women who've had
Speaker 3: babies and they're coming back.
Speaker 5: I think it's great. Hopefully you know we're seeing that.
Speaker 5: Also to tie in the economy angle, my boss would
Speaker 5: love that in the women's participation rate, that more women
Speaker 5: coming back to work as well, so obviously this kind
Speaker 5: of work being much more demanding after you've gone through labor.
Speaker 5: But it's it's amazing to see Carolyn Woziaki, he's playing tonight.
Speaker 5: Alina Spidelina is still alive. It's it's amazing.
Speaker 4: Yeah. Wassniyaki's match earlier this week was amazing.
Speaker 5: Yeah, to see her beat Patrick kavittov A, you know,
Speaker 5: a top ten or so player in straight sets. I
Speaker 5: mean she's back. That was incredible to see.
Speaker 4: Yeah, incredible journey. I mean not just having a couple
Speaker 4: of kids, but also her battle with her health issues
Speaker 4: that she's been battling over the last few years. I mean,
Speaker 4: the game she played the other night was incredible. Looking
Speaker 4: forward to seeing her to night as well.
Speaker 2: Speaking of battles, just thirty seconds left here. The pay issues.
Speaker 3: I know, the USTA has done a lot in terms
Speaker 3: of the Open, but there's still some work.
Speaker 2: To be done.
Speaker 5: The thing that people have to keep in mind is
Speaker 5: that it's the WTA. The Women's store and the men's
Speaker 5: Tour are two separate bodies. They have their own prize
Speaker 5: pools they dictate or yeah, their prize money, they dictate
Speaker 5: that separately. So optically, yeah, it doesn't look great when
Speaker 5: you're at a tournament that they award, let you know,
Speaker 5: a different amount to each player. But it's not as
Speaker 5: if one governing body is deciding that the women are
Speaker 5: earning less than the men.
Speaker 2: All right, we're gonta leave it there.
Speaker 3: Oh wait, it's the Tennis channel calling. Oh wait, it's
Speaker 3: ESPN calling. Wait it's CBS Sports calling.
Speaker 2: You were really good. That was really fun.
Speaker 5: Let's stay here all day.
Speaker 4: ESPN's just right over there. Just walk on over, and.
Speaker 3: The economics editors, sports commentator a little bit of that.
Speaker 2: She does it all. Mollie Smith, Thanks so much. Enjoy
Speaker 2: the rest of it. You can tell you're having a ball.
Speaker 3: Molly Smith here Bloomberg News Economics editor on site with
Speaker 3: us at the Open.
Speaker 2: We're just getting started on this. It's Friday. Can you
Speaker 2: tell stick around? Everybody's coming back. This is Bloomberg.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
Speaker 1: live weekday afternoons from three to six Eastern Listen on
Speaker 1: Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App,
Speaker 1: or watch us live on YouTube.
Speaker 3: Carol Masser along with Tim Stenoviek live at the US
Speaker 3: open here in Flushing Meadows, New York, of course, just.
Speaker 2: Outside Arthur Ash.
Speaker 3: We're going to get back to tennis in just a moment.
Speaker 3: Although I feel like Molly, what one incredible job of
Speaker 3: kind of melding the job market the economy and then
Speaker 3: of course talking tennis here.
Speaker 2: Right now that we need to do a little bit
Speaker 2: more on the job market.
Speaker 4: Yeah, let's talk about it. It was a deployment report
Speaker 4: that we got today that showed the US hiring picked
Speaker 4: up in August, wage growth slowed. It offered a mixed
Speaker 4: picture of both resilience and moderation when comes to the
Speaker 4: labor market. Pretty much what Jay Powell wants to see.
Speaker 2: Yeah, he's got to be pretty happy and feeling pretty confident.
Speaker 4: Well with us, and to give us an idea of
Speaker 4: what she's seeing when it comes to jobs here in
Speaker 4: the US. We are very pleased to go back with us.
Speaker 4: Amy Glazer, senior vice president at the staffing and Recruiting
Speaker 4: agency at DECO. She joins us on Zoom from Florida
Speaker 4: this afternoon. Amy, how are.
Speaker 7: You hey, Good morning, Good afternoons. Then I'm great.
Speaker 4: Yeah, we're doing pretty well here in six It's good
Speaker 4: to have you with us this afternoon. So what were
Speaker 4: your big takeaways from the employment report versus what you're
Speaker 4: seeing on at a deco.
Speaker 8: Yeah, so I think what we're still seeing it's definitely
Speaker 8: a talent driven market. Although you did the unemployment tick
Speaker 8: up thirty basis points. You know, that being offset by
Speaker 8: the labor of participation rate really just continues to send
Speaker 8: mixed messages.
Speaker 7: But those sectors that showed us.
Speaker 8: Growing or what we're seeing, hospitality still growing in demand.
Speaker 8: Healthcare is hot hot right now, another you know, some
Speaker 8: of the other industries pulling a little bit, but really
Speaker 8: looking to surge ahead again in September as holiday hiring
Speaker 8: gets hot and heavy.
Speaker 4: You know, I'm really interested in what you said about
Speaker 4: this being a talent driven economy. Is carently I've talked
Speaker 4: about over the last few months. It really seems like,
Speaker 4: I don't know, Carol the uh. There's been a shift
Speaker 4: with when companies demanding workers come back to the office.
Speaker 4: It's one that you and I predicted that the work
Speaker 4: from home thing wouldn't last forever, and as soon as
Speaker 4: there was this imbalance between supply and demand, as soon
Speaker 4: as that eased, we would start to see companies wanting
Speaker 4: their employees back in the office, Amy, what makes you
Speaker 4: say that it's still a talent driven.
Speaker 8: You know, I think as long as you've got one
Speaker 8: and a half openings for every single job seeker, they
Speaker 8: still have lots of opportunity and are willing to kind
Speaker 8: of add for what they're looking for. And those employers
Speaker 8: that are offering flexibility and being agile right now are
Speaker 8: the ones that are really winning. We are seeing the
Speaker 8: return to the office, but we're also surprisingly seeing a
Speaker 8: stronger appetite from a lot of job seekers to return
Speaker 8: to the office, especially if that's in that kind of
Speaker 8: hybrid type of environment.
Speaker 3: Hey, so, Amy, give us a reminder for our audience
Speaker 3: about the type of you do staff and you do recruiting.
Speaker 2: What kind of jobs typically? Is it white collar, is
Speaker 2: it office?
Speaker 3: What kind of jobs particularly are you working or does
Speaker 3: it cross a lot of different worlds.
Speaker 8: So I'm part of our general staffing sector, so it
Speaker 8: crosses a little bit of everything from blue collar to
Speaker 8: white collar, professional services, healthcare, creative and marketing. So we
Speaker 8: pretty much run the gamut of temporary to full time
Speaker 8: permanent placement.
Speaker 7: So we do have.
Speaker 8: The opportunity to see a really large spectrum of items
Speaker 8: going on in the market out.
Speaker 3: There, all right, So where would you see would you
Speaker 3: say in particular, because it sounds like you are pretty
Speaker 3: optimistic and that the worker is still kind of in
Speaker 3: the driver's seat, or those job seekers are still in
Speaker 3: the driver's seat.
Speaker 2: Where in particular are you seeing strength?
Speaker 3: And I'm also curious about older workers because I feel
Speaker 3: like that labor participation rate was also the result of
Speaker 3: maybe some workers maybe older, maybe they had some savings
Speaker 3: or maybe.
Speaker 2: What have you.
Speaker 3: And we're like, I didn't need to come back in
Speaker 3: now I'm coming back in and we'll find out more,
Speaker 3: I'm sure as the time goes on, But tell us
Speaker 3: about what you're seeing in that front.
Speaker 7: Yeah, I think we're still seeing strength in healthcare. And
Speaker 7: it's funny.
Speaker 8: I was talking to my mother last night, who retired
Speaker 8: as a nurse and actually returned to the workforce. So
Speaker 8: I think she's one out of every six of those
Speaker 8: retirees that have been considering returning.
Speaker 7: To the workforce. And it's for a couple of different reasons.
Speaker 8: Number one, inflation looking for ways to supplement income. But
Speaker 8: number two, a lot of folks that retired during the
Speaker 8: pandemic have really started missing that sense of purpose that
Speaker 8: you feel when you go to work every day, and
Speaker 8: that sense of community and camaraderie. So it's offering the
Speaker 8: opportunity for the retirees.
Speaker 7: To return to the workforce.
Speaker 8: What we are seeing is a trend for retirees is
Speaker 8: more of a part time return to the workforce. They're
Speaker 8: coming back, They're not giving up their days on the
Speaker 8: golf course. They're coming back and working a couple of
Speaker 8: days at a time or a mixed shift.
Speaker 4: So the narrative that emerged in the last couple of
Speaker 4: years of people during the pandemic permanently removing themselves from
Speaker 4: the workforce, is that still the case or is everything
Speaker 4: that you mentioned sort of making that So it's been
Speaker 4: turned on its head.
Speaker 8: I think it's been turned on its head a little bit.
Speaker 8: And I think, you know, inflation certainly has been driving
Speaker 8: as folks are concerned about how they're going to keep
Speaker 8: up with their overall costs. So I think, you know,
Speaker 8: we're continuing to see a lot of creativity we were
Speaker 8: I was talking to one of my customers the other
Speaker 8: day who had found a set of school bus drivers
Speaker 8: that were willing to pick up this odd shift from
Speaker 8: midnight to five in the morning and then go drive
Speaker 8: their bus route to supplement their income.
Speaker 7: But it was a huge.
Speaker 8: Benefit to the employer who genuinely usually had a hard
Speaker 8: time attracting that third shift workforce. So creativity, flexibility are
Speaker 8: really the name of the game and who's going to
Speaker 8: win this moving forward?
Speaker 2: What about wages?
Speaker 7: Yeah, so we.
Speaker 8: Are seeing definitely a slowdown in terms of the huge,
Speaker 8: big sign on bonuses, retention bonuses, perks that were being offered.
Speaker 8: We're seeing employers continue to put it kind of in
Speaker 8: more of that base wage rate and supplement it by
Speaker 8: non monetary perks, whether it be flexible schedules, the ability
Speaker 8: to work from home, enhanced benefits, enhance mental and well being,
Speaker 8: financial offerings. So we're seeing quite a bit of things
Speaker 8: in that nature. We are expecting as seasonal hiring starts,
Speaker 8: there's still going to be acceleration within wages in that
Speaker 8: blue collar hourly workforce sector, especially in.
Speaker 7: Quarter four this year.
Speaker 4: Is it still a good time for as to ask
Speaker 4: for a raise.
Speaker 8: It's always a good time to ask for a raise
Speaker 8: if you've got a solid reason behind it.
Speaker 7: I think, you know, recruiting has been.
Speaker 8: The name of the game for a long time, and
Speaker 8: employe have really settled in on retention and keeping their
Speaker 8: top talent as being a priority. So my recommendation is,
Speaker 8: if you've got the data and stats to support your request,
Speaker 8: that employer, the ROI on you is often worth a
Speaker 8: lot more of a vacancy and having to replace that
Speaker 8: cost of turnover.
Speaker 3: Just going to say our crew, everybody's ears perked up
Speaker 3: when it's like, is this the time to ask for you?
Speaker 6: Said?
Speaker 4: Yes, always you got to have you.
Speaker 3: But but having said that, it's interesting because I feel like,
Speaker 3: you know, we know employers, you know, amy want to
Speaker 3: hold on to workers and they tend to what do
Speaker 3: we call that hoarding labor hoarding, you know, holding onto
Speaker 3: workers not wanting to letting them go because the cost
Speaker 3: of finding a worker is pretty expensive. But I do
Speaker 3: also hear about this quiet quitting or you know, quietly firing,
Speaker 3: quiet firing like stuff going on so that people employers
Speaker 3: do reduce their workforces.
Speaker 2: What are you seeing on that front?
Speaker 8: Yeah, I think it's it just varies by employer, by sector,
Speaker 8: different portions and pockets along the along the US, those
Speaker 8: were some really big buzzwords.
Speaker 7: We heard for the last twelve to eighteen months.
Speaker 8: And there's not been a lot of noise, so kind
Speaker 8: of quiet on that front as well.
Speaker 4: Okay, So I guess my last question is because I
Speaker 4: oftentimes go to that Jolts number when I'm talking about
Speaker 4: the labor force, and I always get pushback from people
Speaker 4: that say, Okay, why do you say there's one point
Speaker 4: five jobs for every you know, person out there who's
Speaker 4: looking when you know nobody's going to move from Toledo,
Speaker 4: Ohio to Florida in order to take a restaurant job, right.
Speaker 7: I think that's where the mismatch occurs to him.
Speaker 8: And when you look at it, there is one point
Speaker 8: five jobs, But is it in your skill set? Is
Speaker 8: it in your market? You know, we have this conversation
Speaker 8: about skill or will. Do you have the skill to
Speaker 8: do the job? Is it in your location or do
Speaker 8: you have the will and desire to move towards it
Speaker 8: or to maybe take a step down or learn a
Speaker 8: new skill. So I think that's where we still continue
Speaker 8: to find the disparity in those numbers. And as you know,
Speaker 8: the population continues to move, it's still forcing employers to
Speaker 8: be quite flexible.
Speaker 2: All right, We're going to leave it on that note. Listen.
Speaker 2: So good to catch up with you.
Speaker 3: Have a great holiday weekend, so appreciate getting some time
Speaker 3: with you. Amy Glazer's senior vice president of the staffing
Speaker 3: and Recruiting Agency at Deco, joining us on zoom from Florida, So,
Speaker 3: you know, a continued strength, you know, a little.
Speaker 4: Later in our program, we're going to be talking with
Speaker 4: the person who oversees all dining here. I'm going to
Speaker 4: ask a lot about staffing and if they've been able
Speaker 4: to get sufficient staffing here.
Speaker 3: That's a really good point, right, I mean, because you
Speaker 3: need a lot of people to make all this stuff happen.
Speaker 4: It's expensive here too.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
Speaker 1: live weekday afternoons from three to six Eastern on Bloomberg Radio,
Speaker 1: the Bloomberg Business app and YouTube. You can also listen
Speaker 1: live on Amazon Alexa from our flagship New York station
Speaker 1: Just Say Alexa playing Bloomberg eleven thirty.
Speaker 2: We are under an incredible blue guys right now.
Speaker 4: Love to I know, I know, I know, such a loss, I.
Speaker 3: Know, I know, but great music that we get to
Speaker 3: share with I know I share with my younger daughter.
Speaker 2: You're gonna share with your kids.
Speaker 4: I bet we already are sharing Tom Patty and a
Speaker 4: lot of music from back in the day with our kids.
Speaker 4: Don't we've got a record player.
Speaker 3: Don't play Oh my god, don't play Barney, guys, I mean,
Speaker 3: we don't.
Speaker 2: There's much better music to raise your kids on.
Speaker 4: Sorry, Barney, Barney, Barney's not offended.
Speaker 2: Hi, everyone, Welcome back to Bloomberg Business.
Speaker 3: We Carol Master lawer Tim Stanovic on YouTube of course,
Speaker 3: streaming on Bloomberg Originals and of course on Bloomberg Radio.
Speaker 3: Here at the US Open, we want to talk about cryotherapy,
Speaker 3: a mixed reality tennis game, Espresso, martiniz NFTs. They're all
Speaker 3: here at the US Open courtesy of American Express, and
Speaker 3: we've got Shisuzuki with US VP of Global Brand, Sponsorships
Speaker 3: and Experiential Marketing at American Express, sitting right next to us.
Speaker 2: Welcome, Welcome, thank you, thank you for having me, Thank
Speaker 2: you for having us at your party.
Speaker 5: It's a great place to be in this week.
Speaker 2: Well, you know, it really is.
Speaker 3: And Tim and I talk about this as we walk around.
Speaker 3: You know, it really is an experience. It is absolutely
Speaker 3: first and foremost about the folks, the incredible athletes, the matches,
Speaker 3: but what you guys do at.
Speaker 2: American Express really makes it a cool experience. How do
Speaker 2: you think about the event every year now?
Speaker 9: So it's so amazing, right And to your point, certainly
Speaker 9: this is around world class athletes and the tennis, but
Speaker 9: it is there's so much more to it than that
Speaker 9: as well.
Speaker 5: Right, it's a.
Speaker 9: Music it's you know, they've got music, they've got food
Speaker 9: and wine festival, they've got all sorts of things. And frankly,
Speaker 9: for us at American Express, it is about that experience.
Speaker 9: It's about making the experience here even better for our
Speaker 9: card members and prospective card members, and so it's always
Speaker 9: about that like holistic experience, I mean, you know, and
Speaker 9: if we had to kind of summarize it up, we
Speaker 9: start with access to the actual tickets themselves back.
Speaker 2: In May and June, which I understand.
Speaker 5: So that really quick, so very quickly.
Speaker 9: It's a great early indicator how things are going to go,
Speaker 9: and we offer that for card members. We come on
Speaker 9: site and we do some really great things experientially. Irl.
Speaker 9: We have a twenty thousand square foot fan experience over
Speaker 9: by the East Gate, and then we've got some other
Speaker 9: fun things as well. Whether that be in terms of
Speaker 9: you know, great offers or you know other things. So yeah,
Speaker 9: it's a holistic experience.
Speaker 4: So she's I mean, no question, American Express, this is
Speaker 4: an important event to American Express. It's thirty years at
Speaker 4: the US Open. Obviously everybody knows American Express spends a
Speaker 4: lot of money on this event. But draw the line
Speaker 4: from spending money here to getting more people signing up
Speaker 4: for platinum cards.
Speaker 5: Yeah.
Speaker 9: I mean, at the end of the day, right, why
Speaker 9: does any brand invest in sponsorships or partnerships at all?
Speaker 9: I think at the very basic level, right, it's really
Speaker 9: about building relationships. It's building relationships with your customer base
Speaker 9: of today customer and the customer base of tomorrow, so
Speaker 9: your prospective customers as well. And so for us, the
Speaker 9: investments that we make in a partnership, certainly like the
Speaker 9: USTA and the US Open or any other sport, music,
Speaker 9: you know, the things that we invest in it is
Speaker 9: about that. It is about being where our card members are,
Speaker 9: where we think our prospective card members will be, and
Speaker 9: then bringing those benefits and really unique experiences to life,
Speaker 9: because at the end of the day, we want people
Speaker 9: to walk away saying gosh, like It was a great experience,
Speaker 9: but it was made even better because of right American
Speaker 9: Express in that moment or that thing or other.
Speaker 2: Well, full transparency.
Speaker 3: You get two AMEX members, Right, that's me than over
Speaker 3: thirty years.
Speaker 2: I got it, like I think my last year senior
Speaker 2: year in college. I don't know when you got yours.
Speaker 4: I got it in college.
Speaker 3: And you know what's interesting is I think about the
Speaker 3: benefits and there's a lot of reasons why. I know
Speaker 3: it works for certainly our family, But I think about
Speaker 3: the pandemic, right, certainly impacted what you guys offered in
Speaker 3: terms of services because nobody was traveling, nobody was doing things.
Speaker 3: How do you think about coming off the pandemic, but
Speaker 3: here we are again experiencing things. How do you continue
Speaker 3: to involve services that maybe you offer here, but it
Speaker 3: becomes a much bigger, broader thing a part of what
Speaker 3: you guys.
Speaker 9: Do, and I mean for us, right, we have so
Speaker 9: many types of benefits, certainly even from a sponsorship's perspective
Speaker 9: of what I work on. We have incredible events all
Speaker 9: around the globe. In fact, July, we just came back
Speaker 9: from Wimbledon, right, so we're at that Grand Slam as well,
Speaker 9: we're in all sorts of music festivals, Coachella, American Express Presents, BSD,
Speaker 9: Hyde Park too, you know, all sorts of things, and
Speaker 9: so every single one of those we I mean, we
Speaker 9: look at what is the fan base, what's the true
Speaker 9: authentic way to show up in a way to make
Speaker 9: that fans experience better.
Speaker 5: That's that's the key.
Speaker 9: It can't just be from an amateur point of view,
Speaker 9: has to be from that fan centric view. And then
Speaker 9: bringing those things to life.
Speaker 3: What do you guys do though with like I think
Speaker 3: like a Taylor Swift concert which we tried to get
Speaker 3: tickets like, or so like a concert that's so popular
Speaker 3: and you know, you see it early access love using it,
Speaker 3: but sometimes it's just over like.
Speaker 4: Yeah, it's you.
Speaker 3: Is that enough?
Speaker 2: And I'm sure you. Yeah, They're coming up and saying
Speaker 2: I've been with you for this many years, like how
Speaker 2: do you? How do you deal with that stuff?
Speaker 9: I mean, listen, So, I when we think about our
Speaker 9: investments with music, it's really i'll call it a three
Speaker 9: sixty approach. So an artist like Ed Sheeran somebody who
Speaker 9: we've also worked with, right, so we've done certainly like
Speaker 9: the pre sell ticket access but then it's about things
Speaker 9: like pop up experiences in various cities. I don't know
Speaker 9: if you remember, at the very start of his tour
Speaker 9: earlier this summer, there were a couple of cities where
Speaker 9: we had these pop up experiences and guess what he
Speaker 9: actually popped.
Speaker 5: Up with them.
Speaker 9: He did, like a pop up concert here in New York.
Speaker 9: For the New York one, he did a pop up
Speaker 9: concert acoustic guitar in the middle of Soho, totally unplanned
Speaker 9: by the way, we shut down the street. It was incredible,
Speaker 9: it was all over social went viral, and guess what
Speaker 9: he personally loved it so much. He did in Dallas,
Speaker 9: La went on and on, and then if you think
Speaker 9: about the length of the tour and other things, guess what.
Speaker 9: It's the things that he's passionate about. We co create
Speaker 9: things with the artist, maybe fan centricity in mind, and
Speaker 9: that's it, right, That authenticity I think carries through for fans.
Speaker 4: There's also this balance though, when it comes to these experiences.
Speaker 4: You want people to be able to access them, yes,
Speaker 4: but you don't want too many people there, and you
Speaker 4: mean the exclusivity parton exclusivity part, and we're seeing this
Speaker 4: play out and I know this is not your purview
Speaker 4: at annex where we're seeing this play out in airports
Speaker 4: all over the country. Absolutely, with the changing rules around
Speaker 4: airport lounges because they're just overrun with people post pandemic.
Speaker 4: Given our demand to get out there, given our demand
Speaker 4: to travel, how do you balance it?
Speaker 9: Yeah, I mean well, I think this event is a
Speaker 9: really great example of that we've got something for everyone, right,
Speaker 9: We've got experiences like at the Fan Experience, the first
Speaker 9: floor is completely dedicated to all fans, right, so the
Speaker 9: glow tennis, the cryo fac you don't have to be
Speaker 9: it's incredible, right Like, listen, like you think that that.
Speaker 9: Listen like elite athletes, right, Like they use that for
Speaker 9: their recovery. Well, guess what we are elite athletes. The
Speaker 9: duration of the US Open tennis as well. And by
Speaker 9: the way, I get the question like can I do
Speaker 9: it over my makeup?
Speaker 5: Yes?
Speaker 9: Yes, it won't mess up your.
Speaker 2: Now I'm like, so, just so can anybody walk in?
Speaker 9: Anybody can walk in?
Speaker 5: Now?
Speaker 9: The second floor you ask about kind of like the
Speaker 9: benefits right at different levels. You know, the upstairs is
Speaker 9: for any card member, and then you get exclusives access
Speaker 9: to things like the Lavazza espresso martini or the frozen
Speaker 9: honey doo.
Speaker 5: Right, so there's different.
Speaker 9: And then if you think about Platinum or Centurion card members,
Speaker 9: we have the Centurion Lounge and so that's a separate
Speaker 9: area right again like.
Speaker 4: Platinum, but you're definitely not sent do you know, just
Speaker 4: so you know, because you wouldn't be sitting here with me.
Speaker 4: You're a Centerian.
Speaker 5: We can hook you up.
Speaker 2: How do we get you in there? I know people,
Speaker 2: I know people, No, but it's really cool.
Speaker 3: Like I was thinking about the list we've said mixed
Speaker 3: reality tennis GAMEE.
Speaker 2: We talked about NFTs. Are you guys really selling NFTs?
Speaker 9: Well, we're not selling them at all.
Speaker 5: No.
Speaker 9: Again, so actually the first floor the fan experience, and
Speaker 9: so it comes in the form of like a digital collectible. Okay,
Speaker 9: but like so there's one there, there's another somewhere else
Speaker 9: here on the grounds. The more you collect, the more
Speaker 9: offers and benefits it unlocks. And so you could be
Speaker 9: a non card member and still collect them. If you're
Speaker 9: a card member, it actually unlocks more benefits for you.
Speaker 9: So there's some discounts and you know what.
Speaker 4: You have, what card you have I've heard that before.
Speaker 4: Are people you know, we talked though, you know at
Speaker 4: the you know, with the with the crypto winter and
Speaker 4: with the prices of cryptocurrencies coming down from all time
Speaker 4: highs over the last couple of years, the interest in
Speaker 4: NFTs is not what it was two years ago. Are
Speaker 4: you still seeing adoption of this?
Speaker 9: I think that those I think there is interest right,
Speaker 9: and so I think there's you know, the creative behind
Speaker 9: the actual collectible as well. There's a story to be
Speaker 9: told there, there's a connection that we have. There's that,
Speaker 9: and then there's a mural that all fans can also
Speaker 9: participate in curating. So there's some connective dissue there. So
Speaker 9: a lot of people love the art part of it.
Speaker 9: But for us, I think there's something interesting, right because
Speaker 9: as we think about again giving benefits and others to
Speaker 9: card members, that connective tie back to So it's not
Speaker 9: just about the collectible. If you're a card member, it
Speaker 9: unlocks something for you more benefits.
Speaker 3: Is it more competitive than ever when it comes to
Speaker 3: having a card? I just think about the growth of cards.
Speaker 4: The I mean it's competitive here. You have a competitor
Speaker 4: here that's a sponsor with their own lounge Yeah.
Speaker 9: They have their own lounge. I mean, listen, for us,
Speaker 9: it's three sixty. I don't think you can walk very far.
Speaker 2: Right.
Speaker 9: Even the shopping bags have Amex on it. Every point
Speaker 9: of sale has Amex on We have this Amex shop right.
Speaker 2: Over here there. Exclusive merchandise we do.
Speaker 9: We have exclusive merchandise both in the Amex shop as
Speaker 9: well as in that car member lounge. We have a
Speaker 9: partnership with Ralph Lauren and so you can get exclusive
Speaker 9: customized merchandise from there that you can do right there,
Speaker 9: purchase it.
Speaker 2: I've seen it. I've been like it, you've done it before.
Speaker 3: We have, and it's really cool and it's like you
Speaker 3: see people just going in and doing it. I want
Speaker 3: to go back to something Tim said, and I think
Speaker 3: it asked or was thinking about, is just you do
Speaker 3: this And obviously you guys choose sponsorships because in some
Speaker 3: ways it's got to move the needle right or you
Speaker 3: bring in new card members. Yes, what do you see
Speaker 3: as a jump or boost? And I realized you can't
Speaker 3: probably share everything, but what kind of gains do you
Speaker 3: get games of card members?
Speaker 5: Now?
Speaker 9: Absolutely, I think just again going back to that high
Speaker 9: level of building relationships right, building those connections. We do
Speaker 9: see that for card members when they come out to
Speaker 9: one of our experiences, they are more likely they're more
Speaker 9: loyal and they're more engaged with our brand, which is great.
Speaker 9: And then for prospects or people who are not car
Speaker 9: members today, when they come out to experience us, they
Speaker 9: are more likely to sign up for us with us
Speaker 9: right as a card member. And at the end of
Speaker 9: the day, it's that, right, you want better loyalty and
Speaker 9: more right, more love from the customer base you have today,
Speaker 9: and then you want your prospective customers to be, you know,
Speaker 9: more willing to sign up with you. I mean, that's it.
Speaker 3: But you're not going to give us a number, I know,
Speaker 3: but you sign up a ton of people we do.
Speaker 3: You know what how people who are like, how would
Speaker 3: you quantify?
Speaker 2: Yeah, if you can't give us a well, you know what,
Speaker 2: how about this?
Speaker 9: How about a trend?
Speaker 6: Right?
Speaker 9: We're talking about NFTs and other and or right like
Speaker 9: the like the types of like even music relationships, right,
Speaker 9: like when I talk about like a Ed Sheeran or
Speaker 9: a Jack Harlow or actually we just announced to pop
Speaker 9: up next week with Olivia Rodrigue. I mean that starts
Speaker 9: to point to a certain demographic, right, and so I
Speaker 9: would say that our millennial and gen Z customer base
Speaker 9: that is the fastest growing like segment for us in
Speaker 9: terms of consumer cards acquired, and that was I think
Speaker 9: we just publicly announced that in Q two as well.
Speaker 9: And so when you think about that, right, staying ahead
Speaker 9: of those again, staying ahead of your trends, right, getting
Speaker 9: in there early, you know, from a brand level, just
Speaker 9: making sure that people, Yeah.
Speaker 4: Go ahead on that. You want to talk about Jack Carlow,
Speaker 4: But my.
Speaker 2: Daughter who's twenty, I mean her first.
Speaker 4: Card wasn't just loved to hear Jack Carlow is too, Pah,
Speaker 4: She's let's say, you know, it's getting to the end
Speaker 4: of the year, you're sitting down with your manager. How
Speaker 4: do you prove that this was a successful event?
Speaker 9: Yeah, I mean at the end of the day, there's
Speaker 9: it's I mean, we do. We have a lot of data,
Speaker 9: and so in terms of everything from right the number
Speaker 9: number of people that have come by to engage with us,
Speaker 9: it's some of those data points that I mentioned about
Speaker 9: existing card members and prospective card members. In what that
Speaker 9: starts to look like, we do a big comparison against right,
Speaker 9: This is certainly an incredible, huge event that we invest in,
Speaker 9: but we're everywhere else do right US Open Golf, NBA,
Speaker 9: w NBA, all the music and festivals at things that
Speaker 9: we've talked about. So yeah, it's about looking at that
Speaker 9: have we surpassed last year's goals? Have we hit the
Speaker 9: goals that we thought we were going to hit?
Speaker 5: She says.
Speaker 3: You know what thing I do think about because you
Speaker 3: do have you know, the Green card, you have the
Speaker 3: Gold card, you have the platinum, and then you go,
Speaker 3: you know the card that I don't have, according to Tim,
Speaker 3: and I don't.
Speaker 2: Know what what do you stuff?
Speaker 5: All right?
Speaker 3: What I'm wondering is do you think about different events
Speaker 3: events to kind of grow a specific card or is
Speaker 3: it just you think about the whole business.
Speaker 9: So for us, we are actually within the global brand organization,
Speaker 9: So I think about the AMEX the brand globally and
Speaker 9: so that's why I mentioned like Wimbledon and some of
Speaker 9: the other events as well that we have around the world.
Speaker 9: And then we have other product marketing teams that do
Speaker 9: target and so if you think about things like we
Speaker 9: have like by imitation only and some other like really
Speaker 9: you know targeted, I would call it experiences that are
Speaker 9: out there, and so yeah, it just depends on you know,
Speaker 9: what that marketing plan might be across the board.
Speaker 2: But like going after call it like my first card
Speaker 2: was a green card. I don't know what your first.
Speaker 3: Yeah, like I was, you know, as a college senior,
Speaker 3: and you guys run campuses and stuff, so interesting, so
Speaker 3: I'm just curious about like how you target it that way.
Speaker 4: So the card member experience is certainly part of it,
Speaker 4: but your presence here is also for clients, and there's
Speaker 4: an entirely different side to American Express. Talk to me
Speaker 4: about what happens behind the scenes in the box at
Speaker 4: night and who you're entertaining and what goes on there.
Speaker 2: Yeah, I mean.
Speaker 9: It's pretty much simply like B to B hosting is
Speaker 9: what I would call it in the most traditional sense.
Speaker 9: But yeah, we do have a couple suites here. It's
Speaker 9: incredible hosting, right and so you know, whether that be
Speaker 9: for the day or the night session or other, it
Speaker 9: gives you such a really incredible opportunity to just to
Speaker 9: have time with your partners or perspective partners. And so
Speaker 9: you know, everything that I've said on the consumer side
Speaker 9: that still applies for the business side as well.
Speaker 2: Can we And I'd love to wrap up with if
Speaker 2: we can break.
Speaker 3: The love Oh can you talk about this because I
Speaker 3: think this is about access in anyway it is.
Speaker 9: I mean, you know, the factoid there is that since
Speaker 9: twenty twenty in the US tennis players have actually increased
Speaker 9: by thirty three percent. And so when we started to
Speaker 9: look at.
Speaker 3: Those blows my mind a little bit, right, because everybody
Speaker 3: was worried. I feel like, you know, oh my god,
Speaker 3: where's the next generation?
Speaker 9: And then also like if you think about at one point,
Speaker 9: right they were like, oh, is it a COVID thing?
Speaker 9: But actually no, it keeps growing. It's for three years
Speaker 9: in a row. And then if you kind of stuck
Speaker 9: on top of that, if you're in New York a right,
Speaker 9: like sometimes it's harder to find a place to go
Speaker 9: where you don't know where to go other and so
Speaker 9: break the Law incredible platform. And it's also you know,
Speaker 9: we would call it us We would consider a small
Speaker 9: business diverse female owned, which is really incredible to support.
Speaker 9: And they have a collective of all sorts of tennis
Speaker 9: reservations that you can make like in all in many
Speaker 9: demographics for US, we focused on New York again because
Speaker 9: the US Open is here, But we have ten thousand
Speaker 9: reservations on hold for card members for free. So for
Speaker 9: a set month, we've got that available for all of
Speaker 9: our card members. This our second year in a row.
Speaker 9: Last year it was just, you know, it was like, hey,
Speaker 9: we've got spots reserved for you. And what we learned
Speaker 9: through that is people didn't want just the spots. They
Speaker 9: wanted to take classes. They wanted to like take part
Speaker 9: in things to make their tennis game better. So this
Speaker 9: year we brought that on and so everything from like
Speaker 9: a Wilson tennis racket fitting to like having classes and others.
Speaker 9: So or if you just want to come play tennis,
Speaker 9: we want you there as well.
Speaker 4: So okay, five seconds. Yeah, your favorite event that you
Speaker 4: do year round? Oh gosh, you can have favorite kids.
Speaker 9: I mean thirty years. There's a reason why we're here.
Speaker 9: This is like homecoming for MX.
Speaker 2: I think, oh, that's a nice way I'm saying it. Hey, listen,
Speaker 2: do you play tennis?
Speaker 3: I don't, okay, and I don't play, but I love
Speaker 3: the game.
Speaker 2: I love the game.
Speaker 4: I'm out here when the US Open is not going
Speaker 4: on to play here.
Speaker 2: She's thank you so much, be well, good luck with everything.
Speaker 2: She's a Zuki.
Speaker 3: She's VP of Global Brand Sponsorships and Experiential Marketing in
Speaker 3: America's press.
Speaker 2: Right here at the US.
Speaker 1: Open, you're listening to the Bloomberg Business Week podcast. Catch
Speaker 1: us Live weekday afternoons from three to six Eastern Listen
Speaker 1: on Bloomberg dot com, the iHeartRadio app and the Bloomberg
Speaker 1: Business app, or want us Live on YouTube.
Speaker 3: You know, it's interesting is so much of what we
Speaker 3: see on the courts here at the US Open often
Speaker 3: look yeah, full of strength and athleticism, at many times
Speaker 3: so effortless and graceful. But you know, you have seen
Speaker 3: players who definitely get hurt, and we've definitely seen that, tim.
Speaker 4: Yeah, we have. We actually even saw several players retire
Speaker 4: early this year as a result of injuries that they
Speaker 4: experienced during huge matches.
Speaker 3: There's some extreme stresses and strains, and so someone who
Speaker 3: has been working with athletes, many many others in general,
Speaker 3: including me when it comes to our feet, is doctor
Speaker 3: Rock Positano. He has been on the staff at the
Speaker 3: Hospital for Special Surgery for more than thirty years. He's
Speaker 3: director of the Joe DiMaggio Non surgical foot service excuse
Speaker 3: me at the Hospital for Special Surgery. He's also an author.
Speaker 3: We've talked about his book before here on Bloomberg Radio Rock.
Speaker 3: It's great to have you here and you know him,
Speaker 3: I do all you do. Thanks for being with us.
Speaker 3: I think you and I feel like we had a cot. Well,
Speaker 3: it's so great to have you and I feel like
Speaker 3: we had a conversation. I always like to pick your
Speaker 3: brain about, you know, footage reason you know, you do
Speaker 3: work with athletes. When we think about the athletes that
Speaker 3: play here, it does look so graceful at times, but
Speaker 3: it is. They're athletes, and they a lot of stress
Speaker 3: on their certainly on their feet, on their ankles. Talk
Speaker 3: to us a little bit about what they are seeing
Speaker 3: and what they are dealing with.
Speaker 2: Sometimes.
Speaker 10: Well, first of all, the pro tennis players are probably
Speaker 10: the best trained, best conditioned of most of the athletes.
Speaker 10: If you consider that some of these matches could go
Speaker 10: four or five hours, it gives you some idea about
Speaker 10: the stamina that they must have forget about breathing and
Speaker 10: you know, and doing things like sweating profusely, I mean
Speaker 10: muscular skeletally. It's a tremendous amount of stress and strained
Speaker 10: on the bodies of these these superior athletes.
Speaker 4: Why, you know, I made a comment to Carol Doctor
Speaker 4: earlier this week. I was out here Tuesday night, and
Speaker 4: this is you know, I barely even spend any time
Speaker 4: in ash. I was out on the outer course. I
Speaker 4: did see I should say, I did see VNS play
Speaker 4: on Tuesday night. But one thing that we noticed over
Speaker 4: and over again was almost every single player had taped
Speaker 4: somewhere on their body, whether it was their ankles, whether
Speaker 4: it was their wrists.
Speaker 10: Why is that, Well, you know, Tim, that's a very
Speaker 10: very good question. I mean, taping provides stability, It helps
Speaker 10: to keep swelling down, a dema reduction we call it.
Speaker 10: It gives them a better in the case of an
Speaker 10: ankle strapping or footstrapping, better footing where they actually have
Speaker 10: a better propulsion when they're trying to make a point. So,
Speaker 10: in that respect, you know, taping is still one of
Speaker 10: the most important parts of the sports medicine orthopedic practice. Okay,
Speaker 10: and yet it looks very simple. But as we both know,
Speaker 10: for three of us, I should say, no, you know,
Speaker 10: there's nothing simple about taping. It's not just haphazardly placed
Speaker 10: it's placed in areas where stress and strain could be reproduced,
Speaker 10: areas where the muscles tendons in the leg it's insert,
Speaker 10: or where the bones are going. So taping has become
Speaker 10: really a very important part of any type of organized sports,
Speaker 10: whether it be amateur sports or professional sports. So of
Speaker 10: course taping has the same indications in other parts of
Speaker 10: the body as well, in the hand, the shoulder, so
Speaker 10: it just won is all over the place. Yeah, taping
Speaker 10: is a.
Speaker 9: Part of it.
Speaker 4: So doctor, it's not necessarily indicative that there's been some
Speaker 4: sort of injury there or there is some sort of
Speaker 4: recovery taking place, you're saying. In some instances it actually
Speaker 4: provides an advantage.
Speaker 10: Yes, because it allows propulsion, which means you're able to
Speaker 10: move on the book all a lot quicker. You're able
Speaker 10: to go lateral on the court, or go back or forth.
Speaker 10: So it gives you that little extra you know, jump,
Speaker 10: so to speak. It's sort of like a full crumb,
Speaker 10: you know. And I think in that respect they're able
Speaker 10: to get a much better jump, and of course their
Speaker 10: footing is better and then they are less likely to
Speaker 10: invert their ankle or throw their heels out or whatever
Speaker 10: may be so.
Speaker 11: Yes.
Speaker 10: So the answer to tech question is that it's also
Speaker 10: used for again it's a benign form of performance enhancement.
Speaker 3: So when you think about the intensity of the play,
Speaker 3: you know, it's interesting, doctor Positano, that we talked with
Speaker 3: the folks at IBM, and they use a lot of
Speaker 3: data to give stats on the players and how they play,
Speaker 3: but they also you know, are tracking how fast the
Speaker 3: ball is moving. And it's just interesting how it just
Speaker 3: feels like things get you know, more ramped up.
Speaker 2: And whether it's.
Speaker 3: Tennis, whether it's football, whether a lot of sports, it
Speaker 3: does feel like the intensity of the play has just
Speaker 3: been increasing over time. And it also feels like the
Speaker 3: amount of injuries, or the intenseness of the injuries has
Speaker 3: also been ramped up. Talk to us a little bit
Speaker 3: about that just in professional sports more broadly.
Speaker 10: Well, look, again, conditioning is everything. I mean, I had
Speaker 10: the pleasure of knowing some very very world class athletes
Speaker 10: that played back in the forties and fifties, and they
Speaker 10: would say the same thing that they certainly did not
Speaker 10: have the analytics so to speak, or the technology available
Speaker 10: to them to stay in shape throughout the offseason or
Speaker 10: throughout the season. Itself, and I think that's a big
Speaker 10: part of why professional sports has changed, is because these
Speaker 10: are ways of making these players be able to be
Speaker 10: more effective in their play, but be provide a safer environment.
Speaker 10: They learn about certain types of things, certain types of
Speaker 10: athletic wear, whether it be a brace or in our case,
Speaker 10: a prescription foot orthosis that helps us stabilize the ankle.
Speaker 10: And I think that's a big part of what's happened
Speaker 10: with professional sports is that there is this technology which
Speaker 10: many times does help again performance enhancement as well as
Speaker 10: injury prevention.
Speaker 4: What can we learn as mere mortals from what the
Speaker 4: professionals do. Doctor, you see people each and every day
Speaker 4: who aren't necessarily professional athletes, who have recurring injuries of
Speaker 4: their feet. Do you give us.
Speaker 10: Well again? You know, having had the privilege of taking
Speaker 10: care of professional and elite athletes in all areas professional football,
Speaker 10: professional baseball, at the US Open, uh, I think the
Speaker 10: most important thing is not to overdo something, which means
Speaker 10: everyone gets inspired around Wimbledon or the US Open to
Speaker 10: go out and play a lot of tennis. And of
Speaker 10: course it makes people feel good because they watch these
Speaker 10: tennis players on the court or the baseball players on
Speaker 10: the field, and they think that they can go out
Speaker 10: there and just start to be full force. Well, it's
Speaker 10: not a good idea, I know that are sent to
Speaker 10: hear at HSS, we find that many of these injuries
Speaker 10: involving the foot and the ankle are really because these
Speaker 10: people are not conditioned, and particularly the areas of heal
Speaker 10: pain and achilles pain. And actually I had a conversation
Speaker 10: with someone recently about, you know, pickleball has become a
Speaker 10: very interesting, you know, type of a sport. You know,
Speaker 10: you know, I always kid around. I say that HSS
Speaker 10: is probably the mecca of pickle ball injuries of the
Speaker 10: Tri State air area, and you know, it's a form
Speaker 10: of racket sports. But again, you know, and I say
Speaker 10: this with all respect, I say, right now, we're in
Speaker 10: the middle of a pickle ball pandemic because we're seeing
Speaker 10: all of these people coming in, particularly in our area,
Speaker 10: with heel pain, achilles pain, I mean stress fractures. I
Speaker 10: have my colleagues in the Spine Service telling me the
Speaker 10: same thing that these these weekend warriors, whatever you want
Speaker 10: to call them, they're coming in out with backs brains
Speaker 10: because they have to make these quick dips so I
Speaker 10: think pickle ball has certainly established itself right now as
Speaker 10: being you know, a very popular sport. It's a lot
Speaker 10: of fun. But again it's one of those sports where
Speaker 10: you know, you know, it may be a smaller court,
Speaker 10: but with that smaller court unfortunately becomes bigger orthopedic problems.
Speaker 10: And we're seeing more and more of that, and I
Speaker 10: think the conditioning aspect him is what we're talking about here.
Speaker 2: Forgive me, I didn't mean to interrupt. Katrina Adams.
Speaker 3: You were talking with yesterday, former head of the USTA
Speaker 3: and of course professional tennis player, doubles player, and we
Speaker 3: kind of joked about pickleball and kind of made it
Speaker 3: sound like it was so easy, and she's like, it
Speaker 3: isn't easy.
Speaker 4: It's intense, and you know, yeah, but you don't see
Speaker 4: her out there playing pickle ball.
Speaker 5: No.
Speaker 12: But it's because well it speaks exactly well you know
Speaker 12: what people, you know, Carolyn tim With people don't realize
Speaker 12: is that even though it's a smaller court, Okay, it's
Speaker 12: a much faster game.
Speaker 10: There's more focus on the foot, the ankle. There's quicker pivots.
Speaker 10: You need quicker footwork too, And I think again you're
Speaker 10: more likely to rupture your achilles or tear your plant
Speaker 10: to faster or blow your knee out because you're not conditioned,
Speaker 10: and because your reaction time has to be significantly faster
Speaker 10: than when you're playing a nice game of civilized tennis,
Speaker 10: which is what you're seeing right now, when these players
Speaker 10: are hitting the ball one hundred and thirty miles an hour.
Speaker 10: So again, you know, pickleball is a great sport. But
Speaker 10: going back timp to your question about conditioning, that's a
Speaker 10: big mistake that people make. You just cannot go back
Speaker 10: on any sport, whether basketball, you know, tennis, you know football, whatever,
Speaker 10: and just think you're gonna go out there and play
Speaker 10: your heart out because again you're not conditioned to do that,
Speaker 10: which means your muscles tend look at at some bones
Speaker 10: are not accustomed to this type of a quick escalation,
Speaker 10: so to speak.
Speaker 3: All right, we're gonna have to leave it on there,
Speaker 3: Doctor Positano. Thank you so much for jumping in and
Speaker 3: talking with us. We so appreciate it. Doctor Rock Positano.
Speaker 3: He's director of the Joe DiMaggio Nonsurgical Foods Foot Service
Speaker 3: at the Hospital for Special Service Surgery.
Speaker 2: Excuse me.
Speaker 3: He's also the author of Dinner with Demaggio, which we
Speaker 3: talked about with him a few years ago.
Speaker 1: If you're listening to the Bloomberg Business Week podcast, catch
Speaker 1: us Live weekday afternoons from three to six Eastern Listen
Speaker 1: on Bloomberg dot com, the iHeartRadio app and the Bloomberg
Speaker 1: Business app, or wants us Live on YouTube.
Speaker 3: You remember that in June of twenty twenty one, the
Speaker 3: Supreme Court cleared the way for college athletes to benefit
Speaker 3: from the use of their name image and.
Speaker 2: Like, this is nil. We've talked about this before.
Speaker 3: Since then, twenty year olds have earned six, sometimes seven
Speaker 3: figures on such deals to shout out brands on Instagram,
Speaker 3: sign autographs, or hop on Zoom with a few fans.
Speaker 3: I mean, they're finally being able to make money off
Speaker 3: of their success at the college level.
Speaker 4: Here's the thing, though, Carol. Even though pro tennis players
Speaker 4: are some of the top earning athletes of all time,
Speaker 4: college tennis players are not the ones raking it in now.
Speaker 4: That's pretty much reserved for college football and basketball players.
Speaker 4: That's according to data from open Doors. It's a LinkedIn,
Speaker 4: Nebraska based marketing platform for athletes.
Speaker 3: All right, So let's get to it because Richard kat
Speaker 3: knows all about this. He's legal counsel and marketing consultant
Speaker 3: at Sanal student athlete name, image and likeness on the
Speaker 3: growth of what we are seeing in this in college
Speaker 3: sports specifically, he joins us on Zoom in Connecticut. He's
Speaker 3: also the author of tennis books, including feder and Nadal
Speaker 3: Inside the US Open and Roger Federer Are Back on Top.
Speaker 3: Needless to say, he loves the game of tennis, and
Speaker 3: I think.
Speaker 2: Yesterday you might have caught him behind us waving hello.
Speaker 3: We're sorry we didn't get to talk with you Richard
Speaker 3: in person, but so glad we could get to you here.
Speaker 11: How are you great? How are you guys?
Speaker 2: We're doing well. We're doing well.
Speaker 3: I mean it's another, you know, record year for the
Speaker 3: US Open in terms of participation. Tell us about your
Speaker 3: world though, and how things have continued to evolve since
Speaker 3: that Supreme Court ruling.
Speaker 13: Oh my goodness, Carol, it is the wild, wild West,
Speaker 13: and I emphasized the wordwild.
Speaker 11: The landscape changes every day.
Speaker 13: In the conference realignment that we saw this morning, you know,
Speaker 13: with Stanford and with cal and with.
Speaker 11: SMU joining the ACC.
Speaker 13: This is all derivative of what went on when the
Speaker 13: US Supreme Court decided that Austin case nine zero. Think
Speaker 13: about it, this factionalized Supreme Court decided a case nine
Speaker 13: to zero.
Speaker 4: Wow, okay, let's get back to the idea that tennis
Speaker 4: players are, you know, not the ones cashing in on this.
Speaker 4: As I said earlier, it's all football and basketball in
Speaker 4: college Why is that?
Speaker 5: You know?
Speaker 13: That's they're the revenue sports. Our methodology is indicated about
Speaker 13: seventy percent college football, twenty percent, men's basketball in ten
Speaker 13: percent the rest with lacrosse, soccer in women's basketball. So
Speaker 13: I can't even tell you if tennis is one percent
Speaker 13: of this paradigm.
Speaker 4: That's incredible given that here we are at the US
Speaker 4: Open Carol as John Worthim's going to remind us in
Speaker 4: just about an hour, maybe even less than an hour. Actually, yeah,
Speaker 4: this is the most attended sports event in the United States.
Speaker 4: Five of the top one hundred highest paid athletes of
Speaker 4: all time are tennis players.
Speaker 2: Right, So then why Roger.
Speaker 4: Fetter is a billionaire? He's earned a billion dollars, I
Speaker 4: should say not. I don't know if he's a billionaire,
Speaker 4: But why doesn't that translate to the to college and
Speaker 4: to the interesting college.
Speaker 13: Well, when we say the most attended sports event, the
Speaker 13: US Open is also an event which overshadows the fact
Speaker 13: that it's a tennis event.
Speaker 11: People go there to be seen.
Speaker 13: People go there to go to the restaurants, to go
Speaker 13: to the stores there as much as they go to
Speaker 13: see the good tennis. So I don't think you're going
Speaker 13: to be saying that about the events in let's say
Speaker 13: Atlanta or Washington, d C. Where the attendance is down.
Speaker 13: So that's just my comment about the US Open. It
Speaker 13: is a tremendous event foreshadowing a tremendous tennis tournament. But
Speaker 13: in terms of college tennis, yes, it's big in the SEC.
Speaker 13: Yes it's big in the ACC at some of the schools,
Speaker 13: but it's simply not a revenue sport. And to the
Speaker 13: extent that it is gaining nil money, you are. The
Speaker 13: good news is, and I think there's a player at
Speaker 13: Ohio State that this pertains to. You may be keeping
Speaker 13: kids in school a little bit longer than joining the
Speaker 13: actual pro tour because if they can make some nil money,
Speaker 13: they may stay in school another year, another year of college.
Speaker 11: Because college tennis is pretty rigorous at the highest level.
Speaker 3: Does Richard, does NIL money change depending on the school
Speaker 3: that you're at and that you play even with tennis?
Speaker 3: Does it matter the school that you're coming from.
Speaker 13: Carol, Let's make one thing clear. NIL money comes from
Speaker 13: the boosters. It does not come from the university.
Speaker 11: Yet.
Speaker 13: If we do this call in three years, the universities
Speaker 13: will be involved, they will be inculcated and Title nine
Speaker 13: might become an issue. Right now though, it's the booster money.
Speaker 13: So you're looking at the schools with the biggest boosters,
Speaker 13: the Michigans, the Alabamas, you know, maybe Kansas and Basketball
Speaker 13: that have most of the major NIL money flowing to
Speaker 13: the student athletes through a third party conduit.
Speaker 4: Hold on, you said, yet not yet from colleges the university.
Speaker 2: It's gonna happen.
Speaker 4: Yeah, what's going to happen.
Speaker 13: Two or three years down the road? Revenue you sharing,
Speaker 13: We're going to see a piece of the TV contract.
Speaker 13: Let's take the Big Ten. I'm a Wrecktgers person. Rutgers
Speaker 13: gets on one hundred million dollars from the Big Ten.
Speaker 13: Most of that is TV revenue. You're going to see
Speaker 13: between five and ten, five and twelve percent let's say
Speaker 13: of that going to the student athletes.
Speaker 11: And you're also going to.
Speaker 13: See the conclusion of a lawsuit that's pending in the
Speaker 13: federal system in the third circuit, in which student athletes
Speaker 13: are suing to become employees of the university. In other words,
Speaker 13: I work thirty hours a week on the football field
Speaker 13: for you, mister university, and my counterpart, who works thirty
Speaker 13: hours in the library for your university, mister university, gets paid.
Speaker 11: So why shouldn't I get paid?
Speaker 13: Why shouldn't I have workers comp And that's gonna that's
Speaker 13: going to be decided in a year or so.
Speaker 11: Every one of these decisis.
Speaker 4: Maybe the university would say you're getting a free education.
Speaker 11: Absolutely, but that's just one part of it.
Speaker 13: You're getting the free and that was the argument by
Speaker 13: the NC double A lawyer and Justice Kavan law Skeward
Speaker 13: absolutely skewered that.
Speaker 11: Lawyer saying, yeah, you're getting a free education.
Speaker 13: And Nick Saban is making twelve million dollars at the time,
Speaker 13: Mike Krushevski, who was coaching at Duke, was making nine million,
Speaker 13: and Mark Emrit, the NC double A president, was making
Speaker 13: three point five million. So yeah, that's nice that you're
Speaker 13: getting a free education. But you're also paying these coaches
Speaker 13: loads of money, and loads of money's going into the
Speaker 13: university coffers.
Speaker 2: You know, Richard, I wish you had more time.
Speaker 3: This is really a big topic, and as you said,
Speaker 3: it's going to continue to evolve.
Speaker 2: And hopefully it gets certainly more fair.
Speaker 3: If you will, to the actually athletes, the college athletes
Speaker 3: that are that are doing all.
Speaker 4: Our po still winning on my Division III tennis checks
Speaker 4: from Colby College for the three years I played there. Yeah,
Speaker 4: we didn't really attract many fans, Carol, I'll be honest, Richard.
Speaker 2: We got to run. Hopefully next time it'll be in person.
Speaker 2: Richard can't.
Speaker 3: He's a little counsel in marketing consultant. H as we said,
Speaker 3: covers the name, image and likeness world when it comes
Speaker 3: to college sports. Will be giving us some great insight.
Speaker 3: Joining us on zoom from Connecticut, Carol Masser along with
Speaker 3: Tim stand Victim.
Speaker 4: Still waiting for this check, waiting for the checks. I'll
Speaker 4: be waiting for a long time.
Speaker 2: I heard him.
Speaker 11: Maybe I'm brother Marco.
Speaker 4: Journal.
Speaker 12: How about you let me drive?
Speaker 10: Oh no, no, no, no, honey, please, I'll do the riding gravel.
Speaker 10: Let's mate, I want to try it.
Speaker 9: It's the question.
Speaker 1: This is the drive to the globe?
Speaker 11: Done well by around?
Speaker 2: Should it?
Speaker 1: On Bloomberg Radio?
Speaker 3: All right, everybody, we've got just about eighteen minutes left
Speaker 3: in today's trading session, getting ready to wrap up this
Speaker 3: job's Friday, if you will, first trading day though in
Speaker 3: the month of September, but also wrapping up the week overall.
Speaker 4: And yeah, so far, up three tenths of one percent
Speaker 4: on the Dow Jones, the S and B five hundred
Speaker 4: up about one tenth of one percent. We got the
Speaker 4: Nasdaq in the red. Go Carol down one tenth of
Speaker 4: one percent.
Speaker 2: All right, so let's get to it. We've got David
Speaker 2: Dits with us.
Speaker 3: He is a tennis fan back with us, senior portfolio
Speaker 3: strategist at Peapack Private Wealth Management, a friend of the show.
Speaker 3: Ten point seven billion in assets under management with us
Speaker 3: at the US Open.
Speaker 2: Nice to see you back here.
Speaker 4: Pleasure to be with you guys in person.
Speaker 2: Well, thank you. Yeah, it is nice to do stuff
Speaker 2: right face to face. Talk to us.
Speaker 3: Let's go about the market environment and the jobs market.
Speaker 3: How does it significantly, if at all, change your thinking
Speaker 3: about what goes on in financial markets right now?
Speaker 4: Well, certainly. I think we've got a Goldilocks support this morning.
Speaker 2: Oh you know what that means? We all have to
Speaker 2: drink a shot.
Speaker 4: There we go, it's Friday afternoon. It's actually true.
Speaker 2: Everybody keeps it. It's a goldilocks report, you know.
Speaker 4: And so we had job creation.
Speaker 6: But on the other hand, the unemployment number went up
Speaker 6: to three five to three eight, which means people are
Speaker 6: coming back into the labor force.
Speaker 4: Why is that good.
Speaker 6: It's gonna you know, keep wage growth down if more
Speaker 6: people get off the sidelines. Also, of course, there was
Speaker 6: one hundred and ten thousand jobs revived down off of
Speaker 6: the two ap.
Speaker 2: Process revisions are actually really important, I think.
Speaker 6: Yeah, absolutely, When you factor those into into what we
Speaker 6: had seen was the dip from July to August in
Speaker 6: terms of jobs created, we are definitely seeing a cooling.
Speaker 6: And I think it's enough for the FED definitely to
Speaker 6: be on the sidelines in September. It's not enough for
Speaker 6: them to say, hey, it's victory, We're done.
Speaker 4: It's just one metric, okay, So what are the metrics
Speaker 4: that will make the FED say, okay, victory, we're done.
Speaker 6: Well, you know, we're going to have the CPI later
Speaker 6: this month. That, of course, is the exact metrics that
Speaker 6: they're looking for. They want that inflation rate to come
Speaker 6: back down to two percent. It's moving in the right direction,
Speaker 6: but at any time, of course, we could get a
Speaker 6: bad print. We've seen a sprint of consumer spending. People
Speaker 6: wanted to go see or Swift and some of the
Speaker 6: other goodies as best. Um, so we've seen some great spending.
Speaker 6: On the other hand, we do know that the kiddies
Speaker 6: that the consumer had built up during the pandemic, they're
Speaker 6: starting to dwindle down. Wage growth is starting to slow,
Speaker 6: so we're probably going to see some slowing and consumer spending,
Speaker 6: and I think that's going to give the FED confidence
Speaker 6: to not be as aggressive.
Speaker 3: David, what do you think we spend too much time
Speaker 3: talking about? And what do you think we should be
Speaker 3: spending a lot of time talking about when it comes
Speaker 3: to the markets right now?
Speaker 6: Yeah, absolutely, Well, you know, I think that number one,
Speaker 6: of course is inflation, because inflation depresses profit margins to
Speaker 6: inflation makes it tough for consumer to spend.
Speaker 4: So what are we spending too much time talking about?
Speaker 6: Probably what happened in the last month in terms of
Speaker 6: the market. I think you do need to take a
Speaker 6: longer term point of view. And of course what I
Speaker 6: really don't like is all the talk on the AI,
Speaker 6: because you know, I've been around the block before here
Speaker 6: and AI is going to make us so productive, it's
Speaker 6: going to be in take decades, you know.
Speaker 4: And a lot of this has already been priced in
Speaker 4: the two hundred percent run up in video this year.
Speaker 4: Two hundred plus percent run up, I should say, warranted
Speaker 4: or not warranted, you know.
Speaker 6: I think it's gonna be very tough to make money
Speaker 6: from these levels. Sure, and Vidia is going to do
Speaker 6: wonders with their chip design for AI, but everyone in
Speaker 6: the world is going to be trying to match.
Speaker 4: Them with those same types of chips.
Speaker 6: We saw a lot of this in the Cisco run
Speaker 6: up in the late nineties, where the second.
Speaker 4: Person just in the last couple of days Carol to
Speaker 4: talk about the late NW. I know, here's what I said,
Speaker 4: Here's what I said yesterday. But so is this is
Speaker 4: this pets dot Com all over again?
Speaker 6: No, they haven't genuine business. Pest dot Com had you know,
Speaker 6: no revenues, no earning, but.
Speaker 2: They did have a sockarpet.
Speaker 6: Yeah, exactly, excuse exactly, So no sis go to real business,
Speaker 6: and Vidia has a real business. The problem is the
Speaker 6: competition is going to come in and I think at
Speaker 6: this point, you know, you talk about twenty five times
Speaker 6: not earning sales.
Speaker 4: That's expensive.
Speaker 3: Except if AI does pan out to be akin to
Speaker 3: something like the growth of the Internet. And to be fair,
Speaker 3: AI not a new thing. It's been around. This is
Speaker 3: just taking it to another level. We've done segments on
Speaker 3: quantum computing and like it all plays in. Like I
Speaker 3: think about how much the Internet is a part of
Speaker 3: our world now right we just take it for granted.
Speaker 3: In the early days, I think we were still trying
Speaker 3: to figure it out. There is the possibility that this
Speaker 3: is something that really does, right exponentially impact productivity growth,
Speaker 3: maybe new avenues. I just right, like we have to
Speaker 3: be kind of smarter at about it.
Speaker 6: But there's investors. The question is how do I make
Speaker 6: money from it? And often it is some of the
Speaker 6: ancellar businesses that can most use AI. For example, why
Speaker 6: are we seeing that strike in the film industry because
Speaker 6: those actors and actresses think that they may be out
Speaker 6: of work because of AI. So maybe some of the
Speaker 6: media companies which have been beaten down look disneys at
Speaker 6: what a multi decade low or something like that may
Speaker 6: be able to take advantage of AI. So maybe you
Speaker 6: should look at the people who make the picks and
Speaker 6: shovels and not the actual gold miners.
Speaker 2: Can we talk stocks because we only have about a couple
Speaker 2: of minutes left here? Because you do like.
Speaker 3: Some names that are very familiar to our audience. Pfizer,
Speaker 3: it's down about their twenty percent so far this year.
Speaker 3: I'm thinking about the Medicare price negotiations impact. Some of
Speaker 3: Pfizer's drugs are part of that. Also, they had a
Speaker 3: plant damaged by a tornado that's maybe going to be
Speaker 3: back up and running in.
Speaker 2: The fourth quarter. Why do you like this one? Is
Speaker 2: it a valuation call?
Speaker 6: Well, I mean Pfiser is one of the top blue
Speaker 6: ship pharmaceutical companies, and of course they'd have a strong
Speaker 6: R and D pipeline. But what makes them even better
Speaker 6: is that their marketing efforts not just in this country, worldwide.
Speaker 4: They had the best sales for us.
Speaker 6: That's why buying TAC who had that vaccine came to
Speaker 6: Pfizers so they could get off the ground. So right
Speaker 6: now Five's is being treated as like a one trick
Speaker 6: COVID pony. But we know there's so much more. But
Speaker 6: valuation is strong. Eleven times earnings when the market's knocking on,
Speaker 6: twenty four and a half percent dividend when the market
Speaker 6: one and a half. Yeah, and so you know, I
Speaker 6: think that since with the COVID proceeds, they bought about
Speaker 6: eight different companies, including Cgen, which is not closed. So
Speaker 6: I think they're going to have some things that really
Speaker 6: surprise us. In terms of the medicare negotiations, lists and
Speaker 6: so forth. That's not a positive to the industry, But
Speaker 6: in terms of the one drug that they thought was
Speaker 6: going to be part of the negotiations was not.
Speaker 4: I can hardly pronounce this.
Speaker 6: I'm not going to try to you right now, but the
Speaker 6: point is that I think a lot of that is priced.
Speaker 6: Of course, all eyes are in next year's elections. We'll
Speaker 6: see how it works out. But there's a lot of
Speaker 6: the industry and people who are against that in negotiations
Speaker 6: and effective price controls.
Speaker 4: Okay, before we let you go, one more stock citizens
Speaker 4: financial down twenty seven year, twenty seven percent year to day,
Speaker 4: Why are you bullish?
Speaker 6: Yeah, so a lot of babies have been thrown out
Speaker 6: with the regional bank, smaller bank, Bathwater Citizens Financials. That's
Speaker 6: been around since eighteen twenty eight, the Civil War, the
Speaker 6: Great Depression. It has been through trials and tribulations before. Meanwhile,
Speaker 6: of course it's got eleven states, five million customers, and
Speaker 6: some of those relationships cannot be duplicated. You got a
Speaker 6: six and a half percent dividend. I think if they
Speaker 6: just get up to one times book value, you go
Speaker 6: from the upper twenties into the mid thirties and have
Speaker 6: a nice.
Speaker 3: Retre So even the warnings that are seemed to be
Speaker 3: coming from officials, we did a Bloomberg exclusive story talking
Speaker 3: about the fetishing a sluugh of private warnings and that
Speaker 3: included citizens financially, you're not worried about some repercussions from that.
Speaker 6: We're worried about everything, but we think that their high
Speaker 6: quality underwriters and that their lum book is going to
Speaker 6: hold up really well.
Speaker 2: So you're not worried that much.
Speaker 4: Have we worried about everything? But it's fist in twenty seven.
Speaker 2: All right, listen, enjoy the open. You know your daughters
Speaker 2: here as well, so have fun with her.
Speaker 4: Thank you so much.
Speaker 2: You enjoy the match. Any calls you want to make.
Speaker 2: Who are you watching?
Speaker 6: You know? I have to tell you as it walked
Speaker 6: in fifty years of equal pay in women's tennis, that
Speaker 6: made us feel so good. As with my daughter, I said,
Speaker 6: it wasn't always this way. These things are different and
Speaker 6: they're better.
Speaker 2: I love that. David Dan, thank you so much. Be
Speaker 2: back Private Wealth Management.
Speaker 1: This is the Bloomberg Business Week podcast of a Little Apple, Spotify,
Speaker 1: and anywhere else you can get your podcast. Listen live
Speaker 1: weekday afternoons from three to six Eastern on Bloomberg dot com,
Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business App.
Speaker 1: You can also watch us live every weekday on YouTube
Speaker 1: and always on the Bloomberg terminal alone