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Speaker 1: Bloomberg Audio Studios, podcasts, radio news a single best idea

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Speaker 1: and we will keep it short today. I'm sure euro

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Speaker 1: is overwhelmed by the news flow as I am. Basically,

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Speaker 1: the team has been working since one am this morning,

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Speaker 1: particularly on the horrific fires in Los Angeles, but on

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Speaker 1: many mother stories as well. I've learned more about Greenland

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Speaker 1: in the last eighteen hours than I knew in my

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Speaker 1: entire life. If you took Greenland, and you know with

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Speaker 1: the Mercader maps, it's distorted massively being up so far

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Speaker 1: in latitude, Greenland is if you were at the border

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Speaker 1: of North Dakota, Minnesota and Canada, way up north, it

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Speaker 1: would stretch down just past Monterey, Mexico. That's how long

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Speaker 1: it is. It's like eighteen hundred miles long. So there's

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Speaker 1: a lot of Greenland. I'm learning things like that. All

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Speaker 1: of that pushed aside yesterday by Craig Moffat, hugely esteemed

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Speaker 1: at Sanford Bernstein and with Moffatt Nathanson, they're just iconic

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Speaker 1: and media coverage tipped to rich Greenfield on that as well.

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Speaker 1: But Craig Moffatt coming out with all of his sort

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Speaker 1: of interior work on companies and putting a sell on Apple. Here,

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Speaker 1: Craig Moffatt of Moffatt Nathanson.

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Speaker 2: There was this narrative over the past couple of months,

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Speaker 2: particularly into the last couple of weeks of last year

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Speaker 2: in twenty four where everyone was talking about the fact

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Speaker 2: that Apple was quote unquote melting up in the face

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Speaker 2: of no news. In fact, there was actually quite a

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Speaker 2: bit of news, and it was bad or at least

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Speaker 2: sobering and concerning news. Obviously the risk of retaliatory tariffs,

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Speaker 2: but more saliently, over the last couple of months, you've

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Speaker 2: had the judge in the Google and a Trust case

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Speaker 2: say at the payments that Google makes to Apple for search,

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Speaker 2: which remember that's twenty five percent of Apple's operating income,

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Speaker 2: are patently illegal. Now we don't know how those will change,

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Speaker 2: but there's obviously a risk that they do that ought

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Speaker 2: to be reflected in the multiple. And then there's real

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Speaker 2: deterioration in China and some obvious concerns that with China.

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Speaker 2: The Chinese government is obviously not going to allow Western

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Speaker 2: large language models to answer questions in China. One more thing,

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Speaker 2: there are real concerns about whether AI is going to

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Speaker 2: drive the kind of upgrade cycle that seems to be

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Speaker 2: discounted in the stock. Pretty skeptical, but Apple's not broken.

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Speaker 2: It's the valuation that's broken.

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Speaker 1: Craig Moffatt Mafitat, Nathan's in there, and of course there's

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Speaker 1: people that go the other way. That's what we like,

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Speaker 1: the opinion Bloomberg surveillance on a given stock or on

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Speaker 1: the market. There's also opinion on the Federal Reserve, and

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Speaker 1: it helps some time to go to lead academics and

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Speaker 1: particularly those with a tenure of duty at the FED.

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Speaker 1: Richard Clarida is the former vice Chairman of the Federal

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Speaker 1: Reserve System and far more writing heard at Columbia University

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Speaker 1: and their Department of Economics. We went granular on the

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Speaker 1: edge of Paul Krugman. Krugman with his Friday, I should

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Speaker 1: say on the show, but we went granular on the dynamics,

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Speaker 1: the price theory, the microeconomics of tariffs. Here Richard Clarida

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Speaker 1: on the economics of tariffs.

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Speaker 3: The revenue that the government raises is more than offset

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Speaker 3: by the losses to consumers and producers relative to their

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Speaker 3: ability to either consume goods or produce goods. And so

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Speaker 3: that's the deadweight loss.

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Speaker 1: It's my destinition. It's a lose game.

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Speaker 3: Well, but the important proviso that almost any tax that

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Speaker 3: raises revenue generates some sort of a loss, whether or

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Speaker 3: not it's the consumption tax or investment tax. Again, it

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Speaker 3: depends on how long they stay on. You know. One

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Speaker 3: view is that you put tariffs on countries basically then

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Speaker 3: come to the negotiating table and then they come off.

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Speaker 3: And so it's very importantly going to depend upon the

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Speaker 3: detail of the tariffs, whether or not there's retaliation, and

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Speaker 3: whether or not there is an endgame. And really without

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Speaker 3: answering that, it's really hard to make an informed assessment.

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Speaker 1: A clinic with Richard Clarit. He went on to talk

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Speaker 1: about lesser tariffs, lighter tariffs versus the magnitude of a

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Speaker 1: larger tariff, and he put a X axis on it.

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Speaker 1: He said it also matters the time length of the

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Speaker 1: tariffs as well. Just brilliant. We hope to see him

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Speaker 1: maybe the end of January. With the FED decides, we're

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Speaker 1: deciding to say thank you to Rob Carolyn. We have

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Speaker 1: a treasured meteorologist, Rob Carolyn. He's been with us for

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Speaker 1: decades and I can't say enough about his coverage of

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Speaker 1: the horrific fires in Los Angeles. Will continue that coverage

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Speaker 1: in the coming hours and days across the nation. And

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Speaker 1: your Mute on Apple CarPlay, Android Auto. Good Morning on

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Speaker 1: Serious XM Channel one twenty one and in Washington, New York,

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Speaker 1: and Boston as well. We're on YouTube. Subscribe to Bloomberg

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